Full Of Beans

Key Takeaways

James Warburton joined Tinybeans’ board after career turnarounds at Seven West Media, APN Outdoor, and Supercars.
Tinybeans is shifting to a subscription-focused business model with 91% renewals and cost reductions.
Strategic growth initiatives include partnerships with BabyList, photobook operators, and HR programs for parental leave perks.
Leadership philosophy emphasises simplicity, accountability, and strong staff relationships.
Tinybeans aims to reach 10 million monthly active users, targeting first-time parents globally.

Tinybeans’ Executive Overview

The office of the chief executive at Seven West Media’s South Eveleigh headquarters in Sydney boasts sweeping views across heritage-listed locomotive and railway workshops to the Anzac Bridge and Darling Harbour.

In April last year, it played host to a surprise meeting of departing Seven CEO James Warburton with Melbourne billionaire Alex Waislitz and the small-cap investment advisers, Hugh Robertson senior and junior.

“Hugh senior gave me lots of examples of the types of people that he'd worked with before and how they had affected change,” Warburton recalls of being presented with the opportunity to join the board of the listed private social network firm Tinybeans.

“He felt pretty confident that me working with the team and the rest of directors at Tinybeans, we could make a winner.”

Board Appointment and Leadership Transition

After a couple of additional meetings over lunch with Waislitz - one of Tinybeans’ largest single shareholders - followed by chats with other investors and then the CEO Zsofi Paterson, Warburton agreed to join the board after finishing up at Seven on June 30.

On January 1st this year, he took over as Chair from Chantale Millard.

He says Waislitz highlighted one thing above all else in their discussions: to believe in the product.

“I've always been a believer in that. Often it comes down to the way in which people execute around products, or strategies around products. If the core proposition is right and you can affect the right strategy around it and bring the right change management to it, that is pretty much what I've done my entire career,” Warburton says.

Career Philosophy and Past Turnarounds

“Seven wasn't a great place in 2019 and we dramatically improved the business and gave it a future. It was the same at APN Outdoor and then at Supercars when I went in under private equity. So I've always been much more attracted to a performance and accountability-based culture and driving measurable change, as opposed to taking roles where it was harder to determine what success looked like.”

Tinybeans Business Model

Tinybeans is a private social network for families, co-founded by New York-based Australian entrepreneur Eddie Geller, along with Sarah-Jane Kurtini and Stephen O'Young.

Users sign up to the platform, upload pictures via a web or smartphone app, and share those pictures privately with friends and family. They can also access a user’s Tinybeans journal, where photos are collated via email, website, or the app. 

Since joining Tinybeans as CEO in August 2023, Zsofi Paterson has led a strategic shift to focus on growing the subscription business versus pursuing a publisher-based advertising model.

Despite putting through sharp price rises, the firm is getting 91% renewals from paid subscribers. She has also been reducing headcount in the firm’s core American market and cutting operating expenditure to reduce cash burn, which helped deliver a 40% increase in EBITDA for the six months to December 31.

Growth Strategy and Partnerships

Continuing to manage the cost base to reach break-even while growing subscribers remains a priority.

Warburton says his playbook for a successful turnaround follows several non-negotiable rules-of-thumb:

Simplify everything so everyone understands the business from board to staff.
Foster relationships with people through direct engagement rather than remote communication.
Back gut instincts while leveraging experienced guidance at the board level.

Tinybeans’ growth initiatives include strategic relationships with BabyList in America, partnerships with photobook operators, digital photo frame producers, and parental leave HR programs for companies in Australia.

Leadership Philosophy and Culture

Warburton emphasises the importance of a performance and accountability-based culture.

“Our aspiration is to get to 10 million monthly active users and reach 1 in 4 first-time parents,” he says. “The sweet spot is for expecting or very new parents as they organise and start sharing moments.”

The focus is on a trusted, private environment for families, with an emphasis on security - a critical factor in the U.S. market with roughly 3.7 million births annually, plus additional births in Australia, the UK, Canada, and New Zealand.

Warburton’s Personal Perspective

Warburton, alongside his wife Nikki, has two sons and reflects on how being a parent helps him appreciate Tinybeans’ potential:

“Because you understand the emotional connection of what it brings. I would love to have all of my photos from the last 21 years procured into Tinybeans, especially catalogued milestones.”

He continues to explore corporate opportunities, including investing in Boost Media International and chairing XT Ventures.

About the Company

Tinybeans Group Limited operates a private communication application in the U.S. and Australia, providing a secure space for families to capture memories, access content, and find family-focused recommendations. Founded in 2012, it is based in Sydney, Australia.

Board & Management

Mr James Warburton, Chair & Non-Executive Director
Ms Zsofi Paterson, Managing Director & CEO
Mr Andrew Silverberg, Non-Executive Director
Mr Michael Rothman, Non-Executive Director
Mr Adam Gallagher, Company Secretary

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FAQs

What is Tinybeans?

Tinybeans is a private social network and app that allows families to securely capture, share, and organise photos and milestones with trusted friends and relatives.

Who are the founders of Tinybeans?

Tinybeans was co-founded by Australian entrepreneur Eddie Geller, along with Sarah-Jane Kurtini and Stephen O’Young.

How does Tinybeans make money?

Tinybeans primarily generates revenue through subscriptions to its premium service, which provides additional features and enhanced privacy options for families.

Can Tinybeans be used internationally?

Yes, Tinybeans is available in multiple countries, including the United States, Australia, the UK, Canada, and New Zealand.

Is Tinybeans suitable for new parents?

Absolutely. Tinybeans is designed to help expecting and new parents organise, share, and store memories from pregnancy through a child’s early years in a secure environment.