The Tinybeans Group Limited (ASX: TNY) share price is soaring today following the release of a positive trading update. At the time of writing, the mobile and web-based social media platform's shares are up 22.94% to 67 cents.
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What's driving Tinybeans shares higher?
Investors are scrambling to get a parcel of Tinybeans shares after the company updated the market with a forecasted Q2 record performance.
According to the release, Tinybeans advised that it saw strong trading conditions in October and November, with December remaining favourable.
Sales for the end of the second quarter are projected to be about US$3.5 million. This represents a 53% increase on the prior corresponding period.
In addition, advertising revenue is on track to reach over US$3 million, up 57% compared against Q2 FY21. The company noted that this is being driven by the new single integrated brand proposition. In particular, the growing tier brand partners and larger average campaign sizes with YouTube Kids as the exclusive relaunch sponsor.
Monthly recurring revenues from subscriptions are projected to double to over US$140,000, compared to US$72,000 in September 2021.
Total paid subscribers stand at 42,000 with more people engaging with the company's platform. Trial to paid conversion came to more than 80%, 8 times higher than the industry standard.
What did the CEO say?
Tinybeans CEO, Eddie Geller was excited to deliver the strong results, saying:
After a successful first quarter of FY22, we are absolutely thrilled to have such a strong follow up by delivering another record revenue quarter. The current quarter has had significant change including a new website launch, and the introduction of the Beanstalk subscription product. The value proposition for parents remains high and significant effort continues to refine and optimize the newly released products to ensure they are delivering successfully for all our customers.
The Company is forging ahead in executing its strategy to build an award-winning platform where parents go to raise amazing kids, driving multiple complementary revenue streams. This is a testament to the team and the value proposition to parents and brands. This significant revenue growth and early indications of conversion to our paid subscriber model has set us up for an exciting 2022, especially given the exciting product roadmap ahead.
About the Tinybeans share price
Over the past 12 months, the Tinybeans share price has plummeted in value, representing a 55% loss for shareholders. Throughout the year, the company's shares have continued on a downwards trajectory.
It's worth noting that the Tinybeans share price is currently a whisker away from its multi-year low of 50.5 cents.
Based on today's price, Tinybeans commands a market capitalisation of roughly $38.7 million, with approximately 57.86 million shares outstanding.
