Tinybeans secures a $200k advertising-contract from a US-based life insurer

The Surry Hills, Australia-based Tinybeans Group Ltd (ASX:TNY), established in 2012, is engaged in developing mobile and web-based technology platform that enables parents to record and share digital data in a trusted and secured online space in the United States and Australia. Its flagship product is the Tinybeans, which is a modern family album app that provides parents with a safe web environment to capture and upload their children’s life stories and precious moments.

On February 08, 2019, Tinybeans announced to have signed a one-year advertising contract, with a New York, US-based life insurer, valued at over $200,000. The payment will be received in instalments in every subsequent quarter. It is the biggest single marketing campaign contract secured by the company. The company claims to have been selected on account of its unique ability to engage parents at a phase when they begin to plan around life insurance plans for their family.Â

The news follows the successful outcome of the pilot campaigns run by the concerned client throughout 2018. They want to leverage on Tinybeans’ smart analytics tools to target and share the advantages of life insurance with millions of parents who would find value in it through a trusted source.

The Group offers a diverse services range such as premium subscriptions, data and insights, advertising and marketing and printed products. The Premium Subscription service, known as the Family Premium can be shared across an entire family and offers functionality, including exclusive printing and special offers, and the feature to search for moments. The Advertising and Marketing product offers solutions developed by advertising partners. Besides these, the Data and Insights service enables uploading the data to manage and allow for micro-targeted marketing as well as anonymous data analysis with third parties. Lastly, the printed product range includes photo printing services for the moments captured by the users.

On 21 January 2019, the company released its financial report for the December quarter (Q2) FY2019, exhibiting various milestones achieved. The period witnessed overall revenue growth of $ 1.09 million, up 135% on Q2 FY2018, with sizeable contributions from all the business lines.

The revenue from advertising grew to $736,000, up 201% on Q2 FY2018, boosted by the seasonal holiday campaigns, increased number of clients and rising investments by existing advertisers. Direct Brand Partnerships and Programmatic Advertising recorded revenues at $349,000 and $386,000, exhibiting significant growth of 357% and 130% on Q2 FY2018, respectively.

The Premium Subscription revenue also increased to $ 179,000, up by 37% on Q2 FY2018. The total contract value for premium subscriptions stood at $ 998,000 for the period.

Besides, the registered user count was at 3 million while the monthly active users (MAU) rose to 1.1 million, up by 34% on the previous quarter. Lastly, the cash flow receipts amounted to a record high of $889,000. Meanwhile, Tinybeans foresees a further push to its positive cash flow targets following the recent contract.

The company is also listed on the ASX with a market capitalisation of AUD 12.03 million. With the last trading session on February 8th, the stock price closed at AUD 0.385, up by 5.479% indicating an intra-day gain of 0.020 points.

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