Tinybeans Group Ltd

ASX:TNY

Q3-2022 Earnings Call

[Edward Geller, executive]

Okay. Let's make a start. Hi, everyone. My name is Eddie Geller, CEO of Tinybeans Group. And with me today is Chris Motsay, our CFO, and we're both based in New York. Hoping wherever you are, you're all staying safe and doing well. A special thank you to all of our current shareholders that are here today and all of the interested parties that are also here today. I appreciate all your support and belief in our future.

First of you who don't know, I'm a dad of 4 boys, sometimes teens, sometimes men. And as a peer and I along with the rest of the team, we're going a personal mission to create something truly compelling for parents everywhere. And really, it's about trying to ensure that we offer them enormous value that they not only come and stay for a while, but hopefully for a long period of time.

So today, along with Chris, we're going to share our third quarter results, the quarter we just finished, the March quarter. And we've received some questions that we'll get to at the end. [Operator Instructions]

So let's jump in. Before we jump into the results, I always think it's important just to remind us all on the market where we're in. And really, the market is significantly large. As I've shared in other presentations, the company has enormous opportunity to really serve the needs of parents in many, many ways. And the market, obviously, as you can see here, is enormous in terms of what they spend everywhere. One consumer at a time, one parent at a time, one family member at a time.

Our lives are really transformed when it comes to parenting and the world changes for us right in front of us. It's the most important thing we do, the most -- it's the most challenges we have every day, and it's a really important aspect of all the things around us as soon as, obviously, the children, obviously, enter our household in our stage. People love the brand of Tinybeans. And yesterday, you see the numbers, and we're fairly small, but really, we have enormous opportunity to build something very enormous.

And when I speak to parents all the time, there's a really significant opportunity we have because of the brand we have and because of, I think, what we have into the future with this potential large addressable market. Also as part of the addressable market, the journey of what a parent goes through is extensive, as you can all appreciate from the time in which mom's pregnant, all the way to them having their first child. And yes, typically, Tinybeans has really been strong in this early stage when the child is very young when they just had a baby through this incredible platform around content.

We have -- we've acquired and really built and launched and continue to iterate and invest in, we can now serve the needs of parents through the kids being much older. It's not just about when they're 0 to 5, but really, our goal is to extend them all the way to, frankly, when they get to college. So we can attract them and we're really working hard to find ways to engage them and retain them. Are we there yet? No, we're not. But we definitely feel that there's significant opportunity to really get there.

So with the market we have, with the customers we have and with the parents we talk to all the time, there's really enormous upside there. So we're really confident that this is really a space we're going to really win in. And yes, there's going to be somewhat child jubilation as we get there, but really, we're in a good spot as the company moves forward.

So just jump into some of the financials. So our Q3, in terms of our March quarter, we finished 40% up on the same period last year. So USD 1.85 million. Reminder, all our numbers are in USD, and that's about 40% up on the same period 12 months earlier. So really pleased with the results. Just to remind that everyone, the March quarter, which is clearly our third quarter fiscal is the first quarter in the calendar year, and that's where all the large companies in the U.S. probably or most companies in the U.S. work through a calendar year budget.

So that first quarter is the weakest quarter typically in the advertising quarter. That's where companies only get their budgets to obviously begin to figure what their brands are going to do, and what -- obviously, what they're going through the campaigns are going to run. So I fully expect it to be a quieter quarter relative to other quarters. But importantly, for us, it's up on last year. And you can see the chart on the right, it's about 40% up on last year.

Also, paid subscriptions is double than what it was last year, not surprisingly because last year, at the same time, we didn't have 100% paid subscription, but now we do. And although it's basically still small numbers. It's really starting to grow on our -- also in terms of monthly recurring revenues now about $160,000. Subscription revenues, again, [ 10% ] up on last year and also 27% up on our Q2.

Another big announcement that we are keen to share today and what was in the quarterly, we just posted is that the company is adjusting its strategy to be focused on getting to cash flow positive. So we expect to maintain a positive cash balance. We expect to do that without raising further capital. And given we did this a few years ago, the company is very confident in getting there again this time around.

Chris later on will talk about the specifics about how those numbers shake up, but it's really a key headline here. So overall, the company delivered a solid quarter. The advertising business was the lion's share of the revenue stream, both from existing brands, about 20% and 30% from use of a really healthy balance. And as I said, it continues to set us up for a solid performance in terms of what this quarter looks like and obviously, what FY '23 will look like, too.

In terms of advertising revenue, just to begin a little bit more about those. It's $1.31 million for the quarter, 37% up on last year. We continue to make strides in winning big brands and increasing spend with existing brands. Microsoft is a great case study. We won them for the first time last year and they keep coming back for more and that account keeps on growing. So again, all the accounts you see in front of you are great brands that have just won with us or basically continue to come back for more.

CooperVision is another one that came back to the second year in a row. And although these aren't, I guess, officially recurring revenues, clearly after 3 years for some brands, 4 years for other brands, they're very close to be recurring revenue. So really a great quarter in terms of the advertising business. We also closed -- we're up to 50 now over $100,000 contracts. Again, last financial year, the whole year, we did 21 -- sorry, 13 to give you a sense as to where we're at and you can see other 8 over $200,000 contracts.

One other thing that is worth highlighting is that as we continue to make strides in our subscription product, there's definitely some adjustments to be had in the advertising experience. So programmatic revenue has been a revenue stream in the advertising business that has been growing extensively in recent years. But over the last year, we basically made some adjustments to increase the value of the subscription product to take some of the placements around programmatic revenue and programmatic away.

So it increases the value of the subscription offering that clearly has an impact to the advertising business. So given the advertising business grew 40% or 37% actually grew higher because we took out some of the placements and took out some of the banners and as I said, the placements of where it was asked inside the subscription experience.

In terms of the ad platform, it's always a great reminder I find that the ad platform is extensive. It's not just about the website. Often people will say, well, if you're down in MAU, it's going to affect the revenue stream, which I'll talk about in a minute. It's actually not the advertising experience. The platform is extensive. It has lots of different elements and lots of different channels from the website channel to the app, e-mail and social channels.

All those channels make up elements of what we do in campaigns, we work with brands all the time. So it's not just about one thing or the other. It's really about trying to understand what the brands want, what their goals are and then integrating a whole campaign for them across all those channels, someone more social, someone more e-mail, some will work better on content inside an e-mail as opposed to content on the website, and we'll obviously optimize that. We have a dedicated campaign management team, they can clearly do this and optimize it on a daily basis.

So it's really important to note that the ad platform is extensive, and we're always evaluating ways in which we're going to extend it, grow it and add more ways in which we can put placements for brands and offer more value to our advertisers.

Marriott is a great case study. So Marriott is a great example of a brand that we've been working with for the last 3 or 4 years, that really doubled down this year and basically because travel is back, the last few years hasn't been much travel at all, as everyone knows. But it's now back with a vengeance. And it's been -- I'm really great in terms of partnership here. And the campaign, we're still in the thick of it, but it's basically performed very successfully.

And when we say successfully, a lot of investors ask me like what define success, what are the returns for brands. It's obviously very linked to that brand goal. So it's all about engaging how that brand sees success and how do we drive engagement with that brand and then obviously return to that brand. There might be transactions, there might be traffic, there might be interactions in all sorts of different ways. But we're really outperforming benchmarks when it comes to brand and advertising campaign engagements. So he is a great case study we thought we'd share to continue to show off, I guess, the types of work we're doing with brands over time.

And what's particularly exciting about this is that travel is back. So the last couple of years, when we're talking about our numbers, it's been clearly without travel. As we know, there hasn't been much travel in the last few years for obvious reasons. But it's back, and we're starting to see much more excitement and anticipation with brands, and also content that we're creating across travel is also eaten up by families as they want to get out there and get back to travel everywhere.

In terms of the subscription business. So we recently hired a new Chief Growth Officer, Teresa Lopez. She literally has been onboard for the last 1.5 weeks, so fairly new. We did have someone last year running the subscription business, had some changes since then. And for us, about finding a right person. We just brought on board teresa to lead that business and she's in charge for not only growing the consumer revenue stream, but also focused on our audience, which I'll talk about in a few minutes, too.

But overarchingly, the revenue for the quarter was about USD 460,000. You can see it's double on what it was last year, about $160,000 in recurring revenues. From a headline perspective, we have about 48,000 paying subscribers. That's not a big jump from what it was last quarter. And the reason for it is because we've really been focusing on getting the product ready to really start to spend some money on paid advertising, really started that towards the end of the quarter. And when I say getting the product ready, installing integration around attribution, determining the right agency and the right partner to start with performance marketing and really have the right team to do that.

So it's about a readiness thing that the product didn't quite have because, as most of you know, we've not spent money in the past on paid acquisition. Now that we're going to do that, the product has to be ready to determine obviously what the success of that was going to be. So that's now in market. We started with the App Store recently. And then we're also moving to other channels like paid search and paid social.

So from a headline perspective, we have about 48,000 paying subscribers. Our trial to paid conversion is still very high at 87%. So I guess, for us, it's about continuing to drive more people into the funnel who start, obviously, the trial and then will look to move to a paid subscription. So definitely still a lot more work to do. Our work is not done here at all, but we're definitely still optimistic we are going to drive growth in this channel.

One other area that we called out last quarter that we'll look to also optimize for search engine optimization. That's really where organic traffic comes to play a role, where if you go to a search engine, type in a certain piece of, I guess, question or intent or something you're looking to find out more about. For us, it's about trying to ensure that Tinybeans is high up on that list. And we did some work with a paid partner around that over the last couple of months, and we're going to see the effects of that this quarter, which I'll talk about now.

So audience perspective, MAU was $2.6 million. So that's down on what it was 12 months prior. One thing that I figure -- get questions about and really relates to, I guess, the business is at MAU, just make sure everyone is clear on MAU. MAU makes up not only audience that's on our app and in our app using it for the memories, but also incorporates people on the website. And as you can see, there's no real correlation between MAU and revenues. We could have -- in this case, we've had a decline in MAUs since last quarter and this quarter, but still growth in revenues overall, and you can see the trailing numbers across the revenue stream.

So it's important to point out that MAU, yes, is an important metric, but it's not a, I guess, an indicator necessarily of revenue directly. So if it goes up, doesn't mean revenues will go up. If it goes down, doesn't mean revenue doesn't go down or up either. So it's just an important point to note. It's not a chart we've shown before, but I think it's important for everyone to understand the fact that the business can do very, very well based on revenue, not only in advertising, but also in consumer revenue without having to rely on MAU having to go up.

Having said that, we clearly wanted to grow, and we clearly are investing in and around all sorts of different tactics like searches and optimization and other partners like the Apple partnership we have. But at the same time, it's not a vital lever in growth. So it's an important point to point out there. And as you think about it, there's also still an audience that are engaged on the product, on the memories product, that are free and not at the moment using the paid products. So they're still active on the platform. They still use the product.

Just to remind everyone, the definition of a paid subscription is basically once you pay, you get the ability to upload memories. So we do have many families that still use the app product and all the memories product, but they're using the free experience, which means they can't add any new memories. And they're still engaged in our platform, looking at all memories and still get access to the content and the advertising extent that we're monetizing to.

So I'm hoping that makes sense. Happy to answer questions if you have questions about this also as we go through this. So with that, I'm going to hand over to Chris to dive into the financials a little bit. Over to you, Chris.

[Chris Motsay, executive]

Thanks so much, Eddie, and good evening and good morning to everyone participating on today's call. So as we go to the next slide and we look at the P&L summary for us, in general, we're really pleased with this quarter. We performed very much in line with the internal expectations of the company. As Eddie had mentioned, revenue was up 40% versus prior year. It's a really good result for us, but it was driven by both the combination of ad sales and subscriber growth. In terms of gross margin, it is something that we look at carefully as a company. The gross margin is up to 94%. It's in line with last year. It's up 4 points sequentially from last quarter as ad sales cost of goods sold actually declined as we've become a little bit more efficient and diligent about the cost that we need to fulfill client obligations.

Operating expenses are up in line with revenue that continues to be an investment-based P&L. It was headcount spend in the quarter to support product and operational investments. And we actually started a very small targeted paid media campaign in March that will go through June to see how efficient we are and whether we can grow subscribers through some very targeted marketing spend.

In terms of general and administrative costs, the company has really hit a point of stability for us. That was going up as the fiscal year was progressing throughout fiscal '22 for us in terms of things like audit fees, legal fees, compliance costs as we continue to grow our U.S. operations and think about our future plans. I'm happy to report that those costs have essentially stabilized and we expect them to continue to stabilize throughout fiscal '23. In terms of cap software development costs, so again, we put those below adjusted EBITDA, and those are now amortized for those that qualify in accordance with AASB 15.

There were no cap software development costs in the quarter nor was there in the same period last year. However, we do have projects and initiatives that are ongoing. And as we continue to evaluate them, especially as we head towards the year-end for June 30, we'll continue to look at the fixed criteria to see if it meets them, and we will capitalize some of those costs as necessary. As we communicated last quarter, as you look at adjusted EBITDA for us, it's relatively in line. It's -- the loss has expanded as revenue has expanded, but the margin is relatively in line with last year.

And that is a direct result of the seasonality of our ad business and this being the lowest of the 4 quarters for ad revenue. As we have mentioned on the previous call, the adjusted EBITDA in the second half will be a larger loss than the first half, which is in line with our expectations, and we expect the full year's adjusted EBITDA margins to be roughly in line with last year's full year adjusted EBITDA margins, which were negative 22%.

So as we go to the next slide and think about cash, this is an operating cash flow waterfall for us and also a net cash flow waterfall. We had an operating cash burn of $1 million of a loss this quarter. We had communicated in the last earnings call that we thought our operating cash burn would be negative $1.2 million this quarter. So slightly better just from ad sales collections, working capital management. This is versus the cash burn of $800,000 in the same quarter last year.

Cash receipts were nearly double in the quarter, which is a really healthy sign off of a really strong revenue quarter last year for ad sales and it speaks to us having very predictable working capital, both on the ad sales and the subscription revenue front. This quarter also included tranche 2 of our capital raise from last year, which netted to a little bit over $700,000 of proceeds.

When you look at the trailing 12 months of operating free cash flow, this is something that we basically could ask about. As you think about our cash burn, which we'll talk a little bit more about it in a minute, the trailing 12 months operating cash flow was a burn of $2.9 million. The expectation for the fourth quarter is that we're going to have a negative operating cash flow of about $900,000. If we do hit that forecast, the full year operating cash burn for fiscal '22 will be negative $3.4 million.

That said, that was a very investment-based year. And as Eddie had alluded to earlier in the call, the company is really focused on narrowing our cash flow losses both through a combination of cost management while moderately growing revenues in fiscal '23. And so as we go to the next slide, what that really means for us is that we do have a full intention of getting to cash flow positive.

And so what specifically does that mean? What that means for us is that we have every intention of operating our business, maintaining a positive cash balance without raising any further capital unless we want to. And unless we see that the growth and the opportunity is there to do that in a way that serves you all as shareholders. In terms of thinking about the company, the company's operating expenses are relatively stable.

There's a little bit of up and down just based on a little bit of accounting here and there. There may be a little bit of an up and down as it relates to marketing expenses or one-offs in a quarter, but we really run at about $3.4 million to $3.8 million of OpEx. As you think about revenues, we have really 4 revenue streams. We have our ad business, and then we have what we consider to be our consumer business, which is a combination of paid subscriptions, e-commerce and printing and photo products.

All 4 of those revenue streams are expected to grow in fiscal '23 and beyond. None of those are anything that we consider to be challenged in any way. And so we're maintaining a positive revenue outlook for the fourth quarter and also for all of fiscal '23. But what that does mean, as we look to slow investment spending and get towards breakeven and eventually cash flow positive, is that you may not see the same level of growth. In the last 3 quarters, we've had total revenue growth between 15% to 25%.

And so as we slow cash spend and slow down headcount adds, very targeted marketing, our expansion plans in the U.S. and so on and so forth for growth. You may see more moderate growth come out of the business in terms of total revenue. What that also means is that with slower investment spend, it will take longer to achieve a 50-50 mix between ad and consumer. We had previously indicated that we thought that would be in 2024. That was with significant investment to grow the subscription business, and that will probably take a little bit longer than expected.

In addition to that, we previously had flagged intentions to uplist to NASDAQ. We still do have those intentions, but they -- but we are pausing on them for the time being. And that will significantly reduce our future needs in the near term for compliance spend and spend to get ready in order to be able to be a registered company with the SEC and the PCAOB in the United States. We still do intend to eventually uplist on NASDAQ, but the timing for now is delayed.

And with that, Eddie, I will turn it back over to you.

[Edward Geller, executive]

Thanks, Chris. So just to -- while we're, I guess, altogether, I thought it would be worthwhile to share and to, I guess, remind everyone about our strategy moving forward and how we're looking to continue to build out this company. So like we've said in previous, I guess, presentations, we really -- our goal is to be this go-to resource for all things parenting. So yes, today, it's memories and also content, but there are so many other elements of that, that we're looking to build out. So imagine this lifetime value proposition when they're coming back and the parents coming back for more.

So whether it's a celebration of the family, as we call it, is parenting wisdom where they're coming back and understanding how they can be a better parent, how they can engage their kids in so many different ways and then how do we pamper them. The parent clearly is a consumer and a human themselves and they sometimes need to be looked after. And our research suggests that there's not much at there for themselves. It's different to basically as it relates to them as parents. There's a huge amount of content as for parenting. Not much of it in terms of tailoring, which is, again, what I've spoken about earlier, where I think there's enormous value there. But in terms of pampering the parent, definitely is a big opportunity for us. And not just in broadly speaking, but also as it relates to both growing the advertising business and the consumer business as well. And as we go forward into, I guess, e-commerce opportunities, which we're very excited about. And yes, we've not quite got there yet, but we definitely still plan on doing it. It will definitely drive this lifetime value and revenue per user, which I think is a huge upside given the engagement we have and the trust we have with this parent.

So like we've shared earlier, this really lifetime value is still strategically an important pillar of ours. So we have some really solid metrics in terms of CAC and LTV. The CAC is the customer acquisition cost and lifetime value is how much we generate for them over a period of time. We've shared this before, but it's about $3.6 million from what we spent to acquire the customer to what we're able to return. That's going to go through some evolution, especially over the next 3 months, like we've talked today, we're planning to increase our spend in paid advertising. We'll see what those numbers are going have to be.

And clearly, we're investing in the product and experience, so they're staying for longer. And as we turn on more services through the course of the next 12 months and beyond, we'll look to grow that lifetime value so the parent is spending more with us and coming back for more and more. So this definitely presents a huge opportunity for us as we acquire the customer at the earlier stage and then keeping for a longer period of time.

Just like Chris mentioned, the goal originally was around getting to 50-50 between consumer revenue and advertising revenue was -- our goal was 2024. But with this, I guess, updated strategy of having more modest growth 15% to 25% is what we started to talk about, but really, again, continuing to grow in the consumer revenue and the advertising business rather than getting to the 50-50 split in 2024, we think we'll need a few more years to get there.

So we're still very committed to that. Investors have asked me, Eddie, is the subscription business working? Maybe you should double down the advertising business and just focus on that. And yes, it's a great call out and great question. We think there's such significant upside in growth with the consumer experience we have, with the trust we have with parents and what we can offer them into the future. And yes, we could definitely look to grow the advertising business probably a little bit faster.

Overall, it's not going to get to the potential scale that we think a consumer revenue business could be with the audience that we have. So it's definitely a longer-term decision. This is not about trying to optimize the revenue quarterly and over the next 12 months, and that's it. Yes, it is obviously important to grow revenues. And yes, especially as it relates to this goal to cash flow positive, but not at all costs. We still want to build a long-term business and still want to build a value prop that clearly parents keep coming back to and then be able to grow that lifetime value extensively.

So really about the company, you take hopefully a lot out of today. The last 2 years, the company has delivered incredibly well. We're on a tear. I mean, I can't comment enough about just how thrilled we are with the results of 2020 and 2021. But as there's definitely signs in the U.S. economy, that things are slowing down a little bit. There's all sorts of news reports of what will happen next year. The markets, you can't really make up what they're thinking every day kind of changes.

We want to be in control of our own destiny, and we feel with a strategy of more modest growth path we're managing our own cash flows, we can get there and deliver a business and grow our business over the years to come, that's not reliant on obviously invested capital. And as consumer trust really continues to, we think, overhead across many sources of information, timing being just in a great spot to be this very important partner in the family network for parents to rely on and keep coming back on and clearly importantly, raise amazing kids.

So with that, that sort of concludes the presentation part of today. And if everyone is up for it, I'll jump it to some questions. So I've got some questions that have been sent in before that I'll jump into. But feel free to basically add some questions to the Q&A box and if they're there, we'll address them.

[Edward Geller, executive]

So okay, cool. So it's something we've gotten every time and not surprisingly and definitely we appreciate the question. The question is, continued by the falling share price given the good growth and results, what actions are we taking to improve this position?

I guess, very simply, we can't control the share price. Our focus is really executing our strategy, executing our growth and delivering value in the business and growing the business. And in return in the long term, clearly expecting that to deliver returns to shareholders. It's all about trying to grow engagement with members and advertisers and continue to grow the business today.

As you've heard today, the business continues to grow well relative to what it was 12 months sooner, and we'll continue to make appropriate bets and investments to continue that along. So yes, there's definitely some challenges of what the share price is really indicating. But for us, it's all about continuing to grow that. Having said that, we've definitely tried to take actions around Investor Relations, working with investors, both in Australia and the U.S. to continue to remind them of the tremendous upside that Tinybeans has, and we're going to continue to do that. That's obviously going to continue there.

But for us, it's about continuing to focus on the business. And then in time, I guess, expecting more buyers and sellers, of course, and hopefully, accretive share prices accordingly, but process it back continuing to focus on the business.

Next question. Do you see a friction between a growing subscription and consumer business and advertising business at the same time?

So in short, yes, there definitely is. So while we don't see any significant obstacles in this, there are many paid content services and many services that generate revenue in subscriptions and clearly, advertising revenue streams. Having said that, there's definitely a whole range of additional services we're going to evaluate and cooperating. It won't just be about content and through advertising and subscriptions through memories. We're looking to bring things like e-commerce to them both, coupons, discounts, where basically, we have all these incredible relationships with brands.

We can leverage those relationships to offer all sorts of value to our consumers beyond just obviously the content we're delivering them. So there's a range of ways in which we're thinking about that. But we definitely accept the fact that between the two there is friction. Yes, people won't pay for content. I've heard that before, but people do pay for content, we subscribed to many content services.

But I don't think the Tinybeans is at the point where it's content only. So that's for sure. But I think as it relates to a whole range of services, a paid subscription model can really work really powerfully.

We received a question on an e-mail. I'm just going to read it. I'm not clear how we intend to turn around MAU on a downward curve. And how does that -- not to conclude the decline in MAU represents the disappointment of uses.

So thank you for the question. So I mentioned MAU a little bit earlier. So MAU is definitely an area of focus for us. Last year, we had some impact, say, last year an impact around the Google search algorithm where we had traffic that was typically delivered to us by our searches declined. The site wasn't able to, I guess, catch up in time and scores of content that actually, I guess, the page of content and certain scores with Google, they wasn't up to par. We've since, through 2022, made change to the website, made changes to the content.

So as basically Google will review the content and the way in which the content gets delivered on the web page, we're expecting those numbers to improve. So organic traffic should improve, but that's not an overnight thing. And there's definitely a whole range of activities to grow MAU, whether it's engagement within the app, whether it's engagement within the website and content signing up to newsletters, coming back for more. So it's definitely an area of focus. The one thing I do want to stress like a pointed earlier, it's not a direct correlation to revenue.

So just because of what it is today, the $2.6 million doesn't mean revenue is going to decline or otherwise. The last point on this is that it is a focus of ours. So we do want to grow it. We do want to -- and get it right across the app and the web experience, and continue to obviously drive value that to be tens of millions of users. But we definitely don't -- I want to appreciate the fact that the direct correlation was there, there isn't. Thank you for the question.

The other question we received just now is the pets -- the pet sector looks like it might be an easy add-on.

So thank you for the question, and I guess, or the comment rather. So pets, as we've shared before, is definitely part of our strategy. It's something we launched last year. Inside the experience, you can now not only add your children, but also add your pets. It's a partnership we have with Hill's. And it's something we're continuing to invest in through the course of the next 12 months and beyond, whether it's content, whether it's new ways in which you engage with your pet.

But again, it's not a primary experience, right? It's one of those things where it's a secondary experience. The focus is definitely still a new mom rather than a new pet parent. Having said that, pet parents are using the product, they're engaged on the experience because you're also capturing memories and sharing them. But it's limited to a certain amount of features only. But we still have a great partnership with Hill's and continue to build out this year and beyond that it's definitely a secondary part of the experience beyond the kids.

Another question we have is our transition -- Tinybeans' strategic transition from a photo sharing app, parenting website and advertising revenues to subscription, how are things going overall with both strategies?

So we'll continue to invest in the content piece, continue to offer value to our members. One thing we did launch in recent months was this personalization piece called For You. So inside a paid subscription experience, mainly in the U.S. because you don't have a ton of content in other markets at the moment and vary in certain markets. When you go into For You, it's personalized, obviously, for you as the paying subscriber.

So that's something we launched in the last 3 months and something we'll continue to invest in and iterate on. And that's where we're looking to add value to the subscription beyond just the memories and offer much more value than what we've had in the past. So today, it's memories with this added value of this For You content experience. Our intention is to continue to add features to the paid subscription product to add more value to clearly drive more retention and drive more acquisitions through there, whether it's through, as I said, content experiences or other things we're evaluating around e-commerce.

And also we've spoken about community in the past, it's all about adding value to this subscription experience. But the web experience will always be a rich, highly valuable experience you see on the website today. And we're adding a range of features where we'll look to attract more people to sign up and keep coming back for more.

Well, I think that's it in terms of the questions we've received. So I'm going to just wrap up for everyone's -- I guess everyone to get back and well to get at the end of the day here in New York and the start of the day in Australia.

So look, overall, in conclusion, Tinybeans is in a really solid position, an exciting stage of our growth at a real inflection point really as it relates to continuing to invest in subscription experience in clearly doubling down in the content experience we already have. We have a large amount of parents and a very low amount of their lifetime value. So we're going to continue to invest in that experience.

Most importantly, we're a trusted brand. Parents love the brand, love the experience and really it's about continuing to leverage that. So thank you again for being here and for coming today, and look forward to updating everyone in the future with our results and clearly, some other highlights as we continue to deliver on our milestones.

So thank you all and wishing you a wonderful evening and a wonderful day in Australia. Talk to you soon. Bye-bye.