Tinybeans Group (ASX: TNY) has continued its positive business momentum reporting record growth for the June quarter 2019 and anticipates it will transition to positive cashflow before the end of the year.
For the period, Tinybeans achieved operational revenue of $1.25 million – up 26% on the March quarter.
Meanwhile, the company’s monthly active users also hit a new record, reaching 1.23 million in the June quarter, which was an 8% increase on the March period.
On a full year basis, Tinybeans’ revenue rose 120% on FY2018 to total $3.9 million, with advertising revenue up 169% to $2.9 million for the same period.
“We’re thrilled to deliver record growth in FY2019 of 120%,” Tinybeans chief executive officer Eddie Geller said.
“This incredible result is a direct outcome of the platform growing with a super engaged audience seeing the value in a private and trusted experience for them and their families as it relates to their children.”
Advancing to positive cashflow
In addition to boosting revenue, Tinybeans reported a reduction in costs for the June quarter, which came in at $480,000 – down on the same period in 2018.
As FY2020 advances, Tinybeans expects its cash burn will lessen further becoming cashflow positive in the December quarter.
Core revenue is forecast to continue coming from advertising, premium subscriptions and printing. However, the company’s new growth investments including its content platform, insights for brands product and the launch of commerce offerings are also expected to begin generating revenue.
“As we sunset FY2019 and begin our journey in FY2020, we see the core business in relation to the photos and sharing platform continuing to grow, while we double down in new growth areas that support our vision, which includes content, commerce and related services,” Mr Geller said.
Tinybeans launched an updated web-based content platform in April this year after continuing to secure advertisers such as Lego Systems, The Walt Disney Company, Huggies, and Burt’s Bees Baby.
By midday, shares in Tinybeans were up 7.76% to $1.18.