Sabio Announces Audited 2024 Results, Achieves Record Revenues and Adjusted EBITDA Profitability

Canada NewsWire

TORONTO, March 17, 2025

   -- Strong revenue growth, leaner cost structure and strengthened balance 
      sheet are enabling investments to drive 2025 growth 
 
   -- Achieved record full-year consolidated revenues of US$49.6 million in 
      FY2024, an increase of 38% from the prior year, with a gross margin of 
      62%. 
 
   -- Generated full-year Adjusted EBITDA1 of US$3.8 million in FY2024 
      (achieving an Adjusted EBITDA margin of 8%) compared to an Adjusted 
      EBITDA loss of US$1.8 million in the prior year. 
 
   -- Ended year with cash balance of US$3.3 million. 
 
   -- Conference call to be hosted on Tuesday, March 18, 2025 at 10:00 a.m. 
      $(ET)$. 

TORONTO, March 17, 2025 /CNW/ -- 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$(TM)$ 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 EBITDA(1) 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 rate(3) ), 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 EBITDA(1) profit (US$3.8 million) and Adjusted EBITDA(1) 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:

   -- High rates of reoccurring revenue, with 90%3 of 2024 consolidated 
      revenues, excluding political ad sales, coming from repeat customers 
      (compared to 76% in 2023), driven by the App Science(TM) platform's 
      growing capabilities and richer data set; 
 
   -- An increased customer-spend capture, with 70% of Sabio's existing top 
      brands increasing their spend in 2024 compared to 2023; 
 
   -- The ongoing addition of top-tier clients -- 41% of the brands spending in 
      2024 were new to Sabio; and 
 
   -- The most diversified vertical revenue mix in Sabio's history. 

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:

   -- On February 6, 2024, the Company appointed President of GroupM 
      Multicultural, Gonzalo Del Fa, as an independent member of the Board of 
      Directors. As President of GroupM Multicultural, Del Fa plays a key role 
      in all aspects of multicultural marketing, diverse media, and inclusive 
      investment efforts across GroupM, WPP's media investment group. In 
      addition to his role at GroupM, he is the Past-Chairman of the Hispanic 
      Marketing Council. Prior to joining GroupM, Del Fa worked at American 
      Express Argentina, BBVA, Hachette Filipacchi, and Editorial Televisa. 
 
   -- February 29, 2024, the Company announced a strategic collaboration with 
      McDonald's USA through a partnership with Publicis Groupe (the world's 
      second largest communications group). McDonald's will leverage Sabio's 
      access to ad slots, customized audience segments and AppScience, Inc.'s 
      proprietary 80 million household graph to connect with the growing 
      multicultural audience in the U.S. 
 
   -- On March 26, 2024, the TSX Venture Exchange accepted a notice filed by 
      the Company to implement a Normal Course Issuer Bid, whereupon the 
      Company may, during the 12-month period commencing April 2, 2024, and 
      ending April 1, 2025, purchase up to 852,184 shares in total, being 5% of 
      the total number of 17,043,687 shares outstanding as at March 19, 2024. 
      During 2024, the Company repurchased a total of 39,500 shares at a total 
      cost of CAD $18,895 (US$13,560). 
 
   -- On April 22, 2024, Sabio's AppScience, Inc. subsidiary announced a 
      multi-year renewal with Pivot Marketing Group. AppScience, Inc. will 
      support Pivot's clients, including Toyota Motor North America, by 
      leveraging the platform's AI and data analytics capabilities to reach, 
      engage, and validate audiences and their behaviors at a deeper level than 
      previously possible. 
 
   -- On June 4, 2024, the Company granted 210,000 stock options under the 
      Company's Omnibus Equity Incentive Plan to certain directors and officers 
      of the Company to acquire an aggregate of 210,000 common shares in the 
      capital of the Company. The Company does not currently pay cash to its 
      independent directors. 
 
   -- On July 31, 2024, the Company closed on a new credit facility under the 
      terms of a credit agreement between its U.S. operating 
      subsidiaries--Sabio, Inc., AppScience, Inc. and FWD Tech Inc.--and SLR 
      Digital Finance. This facility replaces the Company's existing credit 
      facility with Avidbank and provides a $10 million senior-secured 
      revolving credit facility at an interest rate of the greater of: (i) 
      Prime rate plus 2.15%, or (ii) 8.5%. The facility has a three-year term 
      and is secured against all of the Company's assets. 
 
   -- On September 16, 2024, the Company appointed Matt Hull, Chief Data 
      Analytics Officer at Chamberlain Group, a Blackstone portfolio company, 
      as an independent member of the Board of Directors, replacing former 
      Board member, Jennifer Cabalquinto. Hull possesses deep knowledge and 
      experience in AI and data analytics. Prior to joining Chamberlain Group, 
      Hull served as Senior Vice President of AI and Advanced Analytics at 
      Comcast. 
 
   -- On October 18, 2024 ("Grant Date"), the Company granted 270,585 
      restricted share units ("RSUs") to certain independent directors to 
      acquire an aggregate of 270,585 common shares in the capital of the 
      Company, under the Company's Omnibus Equity Incentive Plan. The RSUs vest 
      on the first anniversary of the Grant Date. These grants represent 
      compensation to the independent directors for their service to the 
      Company in 2024. The Company does not currently pay cash to its 
      independent directors. 
 
   -- In December 2024, the Company forgave non-interest-bearing advances, 
      receivable on demand, made to Aziz Rahimtoola, Sabio's CEO, totaling 
      $935,567 ($787,107 as of December 31, 2023) (the "2024 Loan 
      Forgiveness"). This forgiveness was meant to acknowledge the three years 
      in the 2019 -2021 period when Rahimtoola received irregular/reduced 
      compensation from the Company. It also recognizes his funding of the 
      Company in its early stages and his stewardship of Sabio since going 
      public. This forgiveness was approved by the Board of Directors. 

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