Overview of Tinybeans Group's cost base reset

Tinybeans Group Limited (ASX:TNY) has announced a material cost base reset, aiming to remove over US$2 million (A$3 million) of annualized costs from its business. The restructure aligns with the company's core focus on growing its paid subscription business and reducing reliance on advertising revenue.

CEO Zsofi Paterson's perspective on the restructure

In September we undertook a material restructure of the Company to strengthen the Company's long-term outlook and provide us with more time to execute our strategy. By removing over US$2 million in annualized costs, reducing the size of the team, and partnering with Propel Ventures, we are in a better go-forward position. We are confident in the opportunity in front of us to grow the market share of our much loved private family photo-sharing app and scale our paid subscriber base. Continuing to reduce our reliance on publisher-led advertising revenue in the short-term will enable us to meaningfully consider opportunities to grow commercial revenue based on our core asset and 1st party data. I'm grateful for the team's dedication over past years, and in particular, their professionalism at this time as we undertake a material reset and smooth transition.

Summary of Tinybeans Group's cost base reset and outlook

Tinybeans Group (ASX:TNY) has initiated a material cost base reset to remove over US$2 million (A$3 million) of annualized costs from its business, aligning with its focus on growing the paid subscription business and reducing reliance on advertising revenue. The restructure includes transitioning product and software development to a leading service provider in Australia to reduce costs and increase flexibility. The company aims to continue reducing its reliance on advertising revenue as a percentage of overall revenue while focusing on paid subscriber and Monthly Active User (MAU) growth in key markets. CEO Zsofi Paterson expressed confidence in the opportunity to grow the market share of the private family photo-sharing app and scale the paid subscriber base. The company remains committed to delivering commercial revenue and serving brand partners with quality brand advertising campaigns and account management, anticipating new commercial opportunities with the focused go-forward strategy.