Ann: Acquisition of Red Tricycle through Successful Capital Raise, page-19

Take a look at the December quarterly, and you'll see something interesting:

Subscription revenue growth 42%
Advertising revenue growth 11%

Currently advertising revenue is 3x that of subscriptions... but if you play this out, some day subscription will overtake.

Tinybeans has a massive long-term competitive advantage over publishers like Red Tricycle because they are an app, with oodles of data about their users. This, for advertisers, is golden. Website cookies of visitors cannot compete with app data, period.

Red Tricycle are lacking an app, and the millions of dollars required to invest, build, and support one, so it makes sense why they were happy to be acquired by Tinybeans.

Yes, Tinybeans could have probably, some day, built their web traffic and social audiences to a similar size, but this is a quicker path that will help them scale and grow faster. I'm all in on this deal!