1. Sabio reported record fourth quarter and annual revenues for 2024. 2. The ad-supported streaming business grew by 29%, outperforming market growth. 3. A lean cost structure and stronger balance sheet support future investments. 4. International expansion and new marketing solutions show early positive traction. 5. Sabio forecasts double-digit revenue growth in Q1 2025.
Sabio's strong growth metrics and positive outlook suggest substantial market confidence. Historical performance during similar growth phases often led to increased investor interest and stock price appreciation.
The financial results and future outlook can significantly influence investor perception and market position. A strong importance score reflects the positive growth trajectory and operational success that could attract more investment.
The continual expansion into international markets and new product lines can foster sustained revenue growth. Historical trends show companies leveraging international and product diversification see long-term benefits.
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."
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 following covers significant developments during the twelve months ended December 31, 2024, and to the date of this release:
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.
1 See "Use of Non-IFRS Measures" below.
2 MNTN Research, "US CTV Ad Spend Projected to Grow 16.2% in 2024", https://research.mountain.com/trends/us-ctv-ad-spend-projected-to-grow-16-2-in-2024/
3 Based on US customer reoccurring revenue rates. Excludes Sabio's new international business, Sabio London Limited, which generated its first material revenues in 2024.
4 See "MI 61-101 Disclosure" below.
5 Excluding Sabio's new international business, Sabio London Limited, which generated its first material revenues in 2024.
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.
| Description | December 31, 2024 | December 31, 2023 |
|---|---|---|
| Revenue | 18,301,162 | 12,671,038 |
| Gross profit | 11,286,755 | 7,749,748 |
| Adjusted EBITDA(1) | 2,843,977 | 2,060,212 |
| Description | December 31, 2024 | December 31, 2023 |
|---|---|---|
| Revenue | 49,602,885 | 35,954,934 |
| Gross profit | 30,627,389 | 21,780,320 |
| Adjusted EBITDA(1) | 3,832,162 | (1,816,631) |
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.
For more information, visit: sabio.inc.
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.
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").
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.