Sabio Announces Audited 2024 Results, Achieves Record Revenues and Adjusted EBITDA Profitability
Sabio Announces Audited 2024 Results, Achieves Record Revenues and Adjusted EBITDA Profitability |
[17-March-2025] |
TORONTO, March 17, 2025 /PRNewswire/ -- Sabio Holdings Inc. (TSXV: SBIO) (OTCQB: SABOF) (the "Company" or "Sabio"), a Los Angeles-based ad-tech company that helps top 100 brands reach, engage and validate (R.E.V.) ad-supported streaming audiences, is pleased to announce audited consolidated financial results for the fiscal fourth quarter and year ended December 31, 2024. Unless otherwise indicated, all amounts are expressed in U.S. dollars. "Strong revenue growth, a leaner cost structure, and a strengthened balance sheet are enabling us to make growth-driving investments," commented Aziz Rahimtoola, Sabio's CEO. "Our recently launched performance marketing solutions enable brands to track direct impact on consumer behavior, capitalizing on the App Science™ platform's unique AI-capabilities and rich combination of mobile device and ad-supported TV streaming data. In addition, our new App Science-powered programmatic offerings provide clients with greater control while making efficient use of our team. Combined with early traction in our international business and Creator TV's focus on the valuable Gen Z demographic, Sabio believes it is well positioned to continue exceeding industry growth rates while tightening Adjusted EBITDA1 margins. As ad-supported streaming continues its rapid uptake, we're looking forward to producing extraordinary results for a growing number of the world's top brands." Business Outlook Sabio achieved record revenues and profits in the fourth quarter and full-year 2024. Normalized for political advertising sales, the Company's ad-supported streaming business grew by 29% during the year, underscoring Sabio's ability to increase its market share by outpacing the 16% growth in the ad-supported streaming market.2 The shift to a streaming sales model from a mobile display-dependent model has delivered multiple benefits, including a robust 39% compound annual growth rate (CAGR) since 2020, increased customer retention (a 90% reoccurring revenue rate3), as well as substantial cost efficiencies. These efficiencies, including economies of scale, are driving continuing gains in operating leverage, culminating in Sabio's highest Adjusted EBITDA1 profit (US$3.8 million) and Adjusted EBITDA1 margins (8%) as a public company. As the Company's operating infrastructure becomes more efficient, its sales model is becoming increasingly predictable. This predictability helps Sabio derisk its revenue model, as supported by:
The Company is beginning to apply its sales model to geographies outside the United States, including the United Kingdom, which is already demonstrating significant potential with first full-year revenues of $1.4 million in 2024. Sabio's early traction in international markets positions the Company for greater sales growth over time. Additionally, Sabio continues to expand on its global product offerings to complement its existing customer base and revenue channels. The Company's recent announcement launching Creator Television is an example of how Sabio can monetize its owned & operated media ecosystem, from ad-supported streaming, audience analytics and segments (reaching over 70% of U.S streaming households), to content placement, while fostering a creator-led streaming platform. This level of diversity and control enables Sabio's Fortune 100 brands to connect directly with a highly engaged streaming audience that's simply not offered by Sabio's traditional competitors. Finally, the Company has been focused on capturing operational efficiencies to provide a more sustainable and profitable growth platform. Today, Sabio is armed with a stronger balance sheet that reflects a healthier cash reserve and a materially reduced debt load. Complemented by a more predictable sales model, increased product channels, and greater geographical reach, Sabio expects continued sustainable growth in 2025, with first-quarter visibility indicating double-digit growth in revenues, based on current sales pipeline trends. 2024 Business Highlights The following covers significant developments during the twelve months ended December 31, 2024, and to the date of this release:
Q4-2024 Financial Highlights
Full-Year Financial Highlights
Notice of Conference Call Sabio will hold a conference call on Tuesday, March 18, 2025 at 10:00 a.m. (ET) to discuss its financial results and other corporate developments.
Selected Financials The tables below set out selected financial information relating to Sabio and should be read in conjunction with Sabio's audited consolidated financial statements, including the notes thereto, and MD&A for the three and twelve months ended December 31, 2024, and December 31, 2023, copies of which can be found under Sabio's profile on SEDAR+ at www.sedarplus.ca.
The financial disclosures in this news release are subject to a number of cautionary statements, assumptions, contingencies and risks as set forth in this news release. The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the "Forward-Looking Statements" cautionary statement below. Readers are cautioned that this release if for information purposes only and may not be appropriate for other purposes. About Sabio Sabio Holdings (TSXV: SBIO, OTCQB: SABOF) is a technology and services leader in the fast-growing ad-supported streaming space. Its cloud-based, end-to-end technology stack works with top blue chip, global brands and the agencies that represent them to reach, engage, and validate (R.E.V.) streaming audiences. Sabio consists of a proprietary ad-serving technology platform that partners with the top ad-supported streaming platforms and apps in the world and App Science™, a non-cookie-based software as a service (SAAS) analytics and insights platform with AI natural language capabilities. For more information, visit: sabio.inc Use of Non-IFRS Measures This press release makes reference to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective. Management uses adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") as a key financial metric to evaluate Sabio's operating performance as a complement to results provided in accordance with IFRS. The term "Adjusted EBITDA", as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs. Refer to reconciliation to Adjusted EBITDA under the "Selected Financials" section of this release and in the Company's MD&A for the three and twelve months ended December 31, 2024 and December 31, 2023, copies of which can be found under Sabio Holdings Inc.'s profile on SEDAR Plus at www.sedarplus.ca Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Sabio's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of Sabio's operating performance. It is a key measure used by Sabio's management and board of directors to understand and evaluate Sabio's operating performance, to prepare annual budgets, and to help develop operating plans. MI 61-101 Disclosure The 2024 Loan Forgiveness extended by the Company to Aziz Rahimtoola, the CEO of the Company, constitutes a "related party transaction" as such term is defined in TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the related party participation in the 2024 Loan Forgiveness as neither the fair market value (as determined under MI 61- 101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it will involve interested parties, is expected to exceed 25% of the Company's market capitalization (as determined under MI 61-101). Forward-Looking Statements This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as "believes," "anticipates," "plans," "intends," "will," "should," "expects," "continue," "estimate," "forecasts," or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information, including but not limited to statements in respect of: the success of new product offerings; results, including sales, expenses, and customer retention, of the ad-supported streaming sales; balance sheet and cash flow management; the Company's outlook for 2025, including expected revenue gains; expected double-digit growth in Q1 2025 and continued sustainable growth in 2025 and greater balance sheet strength going into 2025; and expansion into international markets. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the effect of the macro-economic environment adversely impacting the Company's business more than anticipated, unexpected funding and cash flow management difficulties, discrepancies in the Company's preliminary assessment of its financial results, and the other risk factors disclosed in the Company's annual information form and management's discussion and analysis (MD&A), which are publicly available on SEDAR Plus at www.sedarplus.ca. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For further information: Sajid Premji, Chief Financial Officer, investor@sabio.inc, Phone: 1.844.974.2662; Sam Wang, Investor Relations, investor@sabio.inc
SOURCE Sabio Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: OTC-QX:SABOF, TorontoVE:SBIO, OTC-BB:SABOF, OTC-PINK:SABOF, OTCQB:SABOF, OtherOTC:SABOF |