Sabio Delivers Record Revenues and Adjusted EBITDA Profitability in Q4 and 2024 Fiscal Year, Based on Preliminary Results

Canada NewsWire

TORONTO, Feb. 18, 2025

   -- Record full-year consolidated revenues of approximately US$49.3 million 
      to US$49.5 million in FY2024, an increase of 37% compared to the prior 
      year, with a gross margin of approximately 60%. 
 
   -- Record full-year Adjusted EBITDA1 of approximately US$3.6 million to 
      US$3.8 million in FY2024 (achieving an Adjusted EBITDA1 margin of 
      approximately 7% to 8%) compared to an Adjusted EBITDA1 loss of US$1.8 
      million in the prior year. 
 
   -- Ended year with cash balance of US$3.3 million. 

TORONTO, Feb. 18, 2025 /CNW/ -- Sabio Holdings Inc. (TSXV: SBIO) (OTCQB: SABOF) (the "Company" or "Sabio"), a California-based ad-tech company that specializes in delivering highly targeted ads, insights, and services in ad-supported streaming to top Fortune 100 brands, is pleased to announce preliminary unaudited financial results for the Company's three-months ended December 31, 2024, ahead of its audited full-year 2024 earnings release. Unless otherwise indicated, all amounts are expressed in U.S. dollars.

"We are pleased to have delivered the best quarterly and annual financial results in Sabio's history, having ended 2024 with nearly CAD$70 million(2) in revenue," commented Sajid Premji, Sabio's CFO. "Normalizing for political ad sales, this increase was driven by ad-supported streaming that continues to grow at a double-digit rate. Our execution and focus to create a leaner cost structure enabled Sabio to achieve its highest Adjusted EBITDA(1) margins as a public company while also making important investments to drive further growth. This includes expansion into fast-growing international markets and a new programmatic offering. Armed with a stronger balance sheet that reflects a healthier cash reserve and a materially reduced debt load, we are focused on strategic momentum. By leveraging our new product channels and expanding our geographical reach, we expect to achieve continued growth, with first quarter visibility indicating a double-digit growth rate."

Preliminary Unaudited Q4 2024 Financial Highlights:

   -- Consolidated revenues for Q4-2024 are expected to be in the range of 
      US$18.0 million to US$18.2 million, an increase of over 42% compared to 
      US$12.7 million in the prior year's fourth quarter, and the highest 
      quarterly sales in Sabio's history; 
 
   -- Political campaigns are expected to have contributed between US$2.4 
      million and US$2.5 million to Q4-2024 consolidated revenues; 
 
   -- Gross Profit Margin for Q4-2024 is expected to be in the range of 59% to 
      61%, compared to 59% in the prior year's fourth quarter; 
 
   -- Adjusted EBITDA1 for Q4-2024 is expected to be in the range of US$2.6 
      million to US$2.8 million, the most profitable quarter in Sabio's history, 
      compared to US$2.1 million in the prior year's fourth quarter. 

Preliminary Unaudited Full-Year 2024 Financial Highlights:

   -- Consolidated revenues for fiscal 2024 are expected to be in the range of 
      US$49.3 million to US$49.5 million, a Company record and increase of 
      approximately 37%, compared to US$35.9 million in the prior year; 
 
   -- Adjusted EBITDA1 for fiscal 2024 is expected to be in the range of US$3.6 
      million to US$3.8 million, compared to an Adjusted EBITDA1 loss of US$1.8 
      million in the prior year; 
 
   -- Sabio is expected to have ended fiscal 2024 with approximately US$3.3 
      million in cash and approximately US$5.2 million in debt outstanding 
      under its revolving credit facility, compared to US$2.6 million in cash 
      and US$7.1 million in debt outstanding under its credit facility at the 
      end of 2023, reflecting a US$1.9 million reduction in debt under our 
      credit facility; 
 
   -- Customer retention rates are expected to exceed 85% for the fiscal year. 

The Company plans to release its fiscal year 2024 fourth quarter and audited full-year financial results before April 30, 2025, and expects to host an investor conference call at that time (details to be provided).

(1) See "Use of Non-IFRS Measures" below.

(2) Results converted from USD to CAD assuming the yearly average currency exchange rate of USD/CAD 1.37:1 for calendar year 2024, published by the Internal Revenue Service $(IRS)$.

Cautionary Note Regarding Preliminary Financial Results

The preliminary results set forth above are based on management's initial review of the Company's operating and financial results for Q4-2024 and FY2024 and are subject to change as these results have not been audited or reviewed. Final reported results could differ from these preliminary results following the completion of quarter-end and year-end accounting procedures, final adjustments, and other developments arising between now and the time that the Company's financial results are finalized, and such changes could be material. The Company's independent auditor, MNP LLP, has not audited, reviewed, or performed any procedures with respect to the accompanying preliminary financial results and other data and, accordingly, does not express an opinion or any other form of assurance with respect thereto. The preliminary results have been prepared by, and are the responsibility of, the Company's management and were approved by management on February 17, 2025. The preliminary results have been reviewed by the audit committee of the Company but have not been approved by the board of directors of the Company. In addition, these preliminary results are not a comprehensive statement of the Company's financial results for Q4-2024 and FY2024. They should not be viewed as a substitute for audited financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and are not necessarily indicative of the Company's results for any future period.

A more complete description of the Company's financial position, including a reconciliation to Adjusted EBITDA(1) , will be provided in the upcoming filing of the Company's financial statements and MD&A, which are anticipated to be filed on SEDAR and made available on the Company's website before April 30, 2025.

These estimates 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. The purpose of this financial outlook is to provide readers with early guidance regarding management's current reasonable expectations as to the anticipated results for the year and quarter ended December 31, 2024. Readers are cautioned that this financial outlook may not be appropriate for other purposes and should not place undue reliance on any of the preliminary results.

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$(TM)$ , 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.

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, prepare annual budgets, and help develop operating plans.

Forward-Looking Statements

(MORE TO FOLLOW) Dow Jones Newswires

February 18, 2025 07:00 ET (12:00 GMT)