Spacetalk Limited (ASX:SPA) has launched its Family App, a mobile first family safety and tracking technology which significantly increases the company’s addressable market.
The Ap provides parents with a way to seamlessly progress older children from a Spacetalk smartwatch to their first mobile phone.
The app delivers many of the features and benefits offered by Spacetalk’s best-selling smartwatches.
CEO and Managing Director, Simon Crowther, said Spacetalk is already the recognised leader in the premium kids’ smartwatches category, both from a volume and value perspective. Since the launch of the company’s kid’s wearables products, it has acquired more than 60,000 active companion app subscribers.
He said the launch of the Family App gives Spacetalk the product to retain these companion app subscribers as they approach teenage years and take possession of their first mobile phones. This will result in improved customer retention.
Importantly, the app also gives Spacetalk access to a whole new group of potential customers. Parents who were previously not Spacetalk product users will be attracted by the app’s ability to add safety and security features to the first mobile phones they are giving their older tween/young teenager children.
This addressable market is considerable. According to cyber protection provider Malwarebytes, around 80% of parents monitor their kids’ electronic behaviours and their location, and about 50% of these parents use more than one form of monitoring.
Mr Crowther said the Family App is expected to quickly gain traction in the key target market of digitally native families. Spacetalk estimates that the app will triple its total addressable market to around 5.3 million persons (from 1.6 million previously). New Spacetalk subscribers together with improved customer retention generated by the Family App will promptly feed through into an increased recurring revenue base. It also creates cross sell opportunities.
The launch of the Spacetalk Family App represents a key milestone in the delivery of the strategic plan we communicated to the market back in mid calendar 2023,” Mr Crowther said.
“Thanks to this new product, we are now able to bridge the transition that kids have between a Spacetalk Watch and the receipt of their first smartphone. Parents can be assured that all the same great features and benefits of family safety and security incorporated in the Spacetalk Watch are carried across and accessed via our new dedicated mobile Spacetalk Family App.
“Importantly, the Family App will not just improve our existing customer retention, it gives us the means to gain new customers from a significantly larger addressable market, which now also encompasses the late tweens and teen segments. Looking ahead, we expect to announce further new product releases over coming months that demonstrate Spacetalk’s commitment to helping customers provide safety and security at every stage of their family’s life style.”
