likely move them to EBITDA positive (or move them further depending on results from last quarter)
give direct access to 2 Million unique parents in the US they can cross-sell into
give access to great content to add more value to the existing tinybeans users
provide a new source of brands that are currently paying for branded content on Red Tricycle that they can monetise through Tinybeans and for existing tinybeans advertisers potentially greater reach to offer through Red Tricycle.
And all for ~AUD$12M or 10-15% of company valuation. At face value this is an awesome deal and we're yet to see last quarter results on top of that.
1. Why would people would use Tinybeans over a new market entrant? The answer in one word: Trust.
Tinybeans has, from day 1, been built on core principles of privacy and trust. The tech is most certainly replicable but the trust (mostly as a result of social proof from other trusted sites on the internet/users etc) is their moat ATM.
2. Early acquisitions as a sign of slow organic growth
Not sure I agree with this. Why can't inorganic growth through acquisition (especially with great deals like this appears to be) sit alongside organic growth? And even if growth is predominantly inorganic from now on, why is that an issue if the economics are good? Rollups are hardly a new strategy and with Tinybeans essentially a media company ATM (that may change with the e-commerce offerings they spoke about in their innovation session at last year's AGM) customer base matters.
In my opinion this is exciting news. Let's see how it all plays out in terms of share price over the coming months.
TNY Price at posting:
$2.13 Sentiment: Buy Disclosure: Held
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