Tinybeans Reports US$0.80M Subscription Revenue and 40% Cash Burn Reduction

Subscription Growth and Revenue Resilience

Tinybeans Group Limited (ASX: TNY) has delivered a solid performance in the second quarter of fiscal year 2025, with subscription revenue rising 9% year-on-year to US$0.80 million. This growth was underpinned by a robust 92% blended renewal rate among paid subscribers during the key renewal quarter, and a record number of new paid subscribers acquired in December, driven by targeted promotions and the launch of Tinybeans+ gift cards.

Despite a slight 5% decline in total revenue compared to the prior corresponding period, the company’s focus on its core subscription business has resulted in a healthier revenue mix, with monthly recurring revenue (MRR) contributing 62% of total revenue.

Cost Restructuring and Cash Flow Improvement

Tinybeans has made significant strides in reducing its cost base, completing a major restructure announced in September 2024. The transition included outsourcing engineering functions to Propel Ventures in Australia, which is expected to save approximately US$2 million annually, about 20% of operating expenses compared to FY24.

This strategic reset has translated into a 21% reduction in operating expenses year-on-year to US$1.58 million and a 40% reduction in cash burn to US$231,000 for the quarter. The company’s EBITDA loss narrowed by 43% to US$445,000, reflecting improved operational efficiency and tighter cost controls.

New Monetization Channels and Marketing Initiatives

In addition to cost management, Tinybeans is actively expanding its monetization avenues. The introduction of Tinybeans+ gift cards has shown promising early sales and is positioned to support new B2B partnerships, employee benefit programs, and integration with popular US baby registries.

Marketing efforts have intensified with partnerships including Harvey Norman and Melbourne pediatrician Dr Golly in Australia, alongside plans to feature Tinybeans+ in Babylist’s 'Hello Baby' box in the US, reaching over 300,000 expecting mothers in 2025. The company also secured inclusion in Australian Bounty Bags, targeting new mothers shortly after birth.

Leadership and Strategic Outlook

With new Chair James Warburton and a streamlined board, Tinybeans is poised to accelerate its growth trajectory. CEO Zsofi Paterson emphasized the company’s commitment to focusing on subscription growth and brand relevance, highlighting the strong renewal rates and record subscriber acquisition as evidence of the platform’s stickiness and market appeal.

While advertising revenue declined 14% to US$0.40 million due to a right-sized sales team and strategic shift away from publisher-led advertising, Tinybeans continues to deliver quality brand campaigns and leverage its privacy-first positioning to maintain advertiser trust.