The Tinybeans Group Ltd (ASX: TNY) share price was on the move today following a new product update.
At the open, shares in the baby-parent-centric social media platform jumped 5.1%. Although, the move lost momentum throughout the day. The Tinybeans share price settled the day with a 0.3% gain to $1.47 per share.
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Fur babies welcome
Previously, Tinybeans has been focused on providing a private social network for parents to share their baby's moments with loved ones. However, today marks the entrance of 'Pets', which will be a complementary addition.
The company has built a business model around a "freemium" offering. That means free users of the platform receive advertisements tailored to the infant/child's age. With such targeted placements, advertisers pay Tinybeans for the viewership.
In the announcement, the company noted an overwhelming demand from both Tinybeans' families and brand partners. The demand lifted by a surge in pet adoptions, with 11 million United States households adopting since the pandemic.
Tinybeans expects the new product to result in deeper engagement from existing families — as well as new 'pet-only' families.
Following a successful beta test earlier in the year, the company expects to launch the new pet features in early May.
More revenue jolts Tinybeans share price
The initial jump in Tinybeans' share price this morning was likely in relation to the additional revenue from the new product.
According to the release, Tinybeans has secured a new US$500,000 agreement over an initial 6-month period. The deal is with Hill's Pet Nutrition Inc, which is a subsidiary of Colgate-Palmolive.
Revenue from Hill's sponsorship is expected to be recognised mostly during Q4 FY21 to Q1 FY22.
Adding to the news, CEO Eddie Geller commented:
We're excited to broaden our platform to include the pets of our existing families and to welcome new pet-only families. This new feature not only services our existing users with a richer experience that caters to their entire family, but also broadens the user acquisition funnel to millions of pet parents who treat their pets like children.
The company's market capitalisation is now $67.7 million after today's move in the Tinybeans share price
