TORONTO, May 27, 2025 /PRNewswire/ — Sabio Holdings Inc. (TSXV: SBIO) (OTCQB: SABOF) (the “Company” or “Sabio”), a Los Angeles-based ad-tech company specializing in helping top global brands reach, engage, and validate (R.E.V.) streaming TV audiences, announced its unaudited financial results for the fiscal first quarter ended March 31, 2025. Unless otherwise indicated, all amounts are expressed in U.S. dollars.
“Our team delivered a strong start to 2025, demonstrating ongoing momentum in our business with a 43% increase in year-over-year revenue and increased predictability in our sales model, with 91% of revenues coming from repeat customers,” commented Aziz Rahimtoola, Sabio’s CEO. “Notably, this performance was achieved across multiple verticals and geographies, including our rapidly growing international business – reflecting our ability to grow much faster than the forecasted growth of the US Connected TV market at-large. Moreover, while strengthening our balance sheet with cash generated from operations, we made sizable growth-driving investments. These included strategic Sales Force hiring and the migration of legacy systems to our scalable AWS platform, the latter enabling us to further benefit from AI-driven efficiencies. As these investments begin to deliver returns, we’re currently on track to continue our double-digit growth into the second quarter and deliver another record fiscal year.”
Business Outlook
In the first quarter, Sabio achieved 43% YoY revenue growth. This success was driven by strong advertiser demand, broader client adoption in key verticals, and expansion into new geographies in combination with product offerings introduced in 2024 and previous investments made. The Company’s ad-supported streaming business surged 40% during the quarter, highlighting Sabio’s ability to capture market share -significantly outpacing the 13% growth rate in the US Connected TV market at-large. Management believes that, with brands and marketers increasingly moving away from linear TV and traditional marketing, ad-supported streaming is becoming more central to their advertising strategies.
As the Company enhances its operating infrastructure, management believes its sales trajectory is becoming increasingly predictable, helping mitigate risks in Sabio’s revenue model, as illustrated by:
The Company has begun applying its sales model to geographies outside the U.S., including the United Kingdom, whose revenues continues to compound at triple-digit growth, while expanding its global product offerings. Sabio plans to continually assess new product channels and verticals, as well as other potential opportunities that will add value or complement its market position and product mix within the ad-supported streaming space.
Looking ahead, Sabio is currently on track to surpass its record-setting 2024 sales performance. Due to the seasonal nature of the Company’s business, revenue generation in the first half of the fiscal year is expected to be lower than in the second half (in 2024, consolidated revenues for the third and fourth quarters were 125% higher than those of the first and second quarters). Similar to the strong 2024 reported financial results, Management anticipates that the investments made to support year-over-year growth may marginally offset incremental revenues in the first half of the year, with a turn to Adjusted EBITDA profitability in the latter half. In spite of this cost cyclicality, Sabio’s double-digit growth in Q1 2025 indicates strong momentum as it moves toward the second half of the fiscal year. With an expanded Sales Force and improved IT infrastructure in place, Sabio expects double-digit consolidated revenue gains to continue into Q2 2025.
Business Highlights
Financial Highlights
Sabio revenue growth in Q1 2025 was triple the growth rate for the ad-supported streaming TV industry as a whole, as described in Interactive Advertising Bureau (IAB), “US CTV advertising forecast to grow 13% to $26.6B in 2025”, https://www.streamtvinsider.com/advertising/us-ctv-advertising-forecast-grow-13-266b-2025.
See “Use of Non-IFRS Measures” below.
Selected Financials
The tables below set out selected financial information relating to Sabio and should be read in conjunction with Sabio’s unaudited consolidated financial statements, including the notes thereto, and MD&A for the three ended March 31, 2025, and March 31, 2024, copies of which can be found under Sabio’s profile on SEDAR+ at 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.
Notice of Conference Call
Sabio will hold a conference call on Wednesday, May 28, 2025 at 10:00 a.m. (ET) to discuss its financial results and other corporate developments.
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 and consolidated revenues (excluding political and advocacy ad sales). 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 months ended March 31, 2025 and March 31, 2024, copies of which can be found under Sabio Holdings Inc.’s profile on SEDAR Plus at 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.
Revenues excluding political and advocacy ad sales is a supplementary financial measure that represents the Company’s total consolidated revenue as reported in its financial statements, excluding revenues derived from political and advocacy advertising campaigns. Revenues by vertical is a supplementary financial measure that represents the proportion of the Company’s total consolidated revenue as reported in its financial statements contributed through brands operating within a referenced industry vertical.
Ad-supported streaming sales and mobile display sales are supplementary financial measures that represent the proportion of the Company’s consolidated revenue as reported in its financial statements contributed by the Company’s ad-supported and mobile display product offerings, as is also presented in the Company’s MD&A for the three ended March 31, 2025, and March 31, 2024, copies of which can be found under Sabio’s profile on SEDAR+ at sedarplus.ca.
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, App Science™, a non-cookie-based software as a service (SAAS) analytics and insights platform with AI natural language capabilities, and Creator Television®(Creator TV), the first creator-led streaming network and content studio dedicated to bringing the authenticity and energy of social media storytelling to TV.
For more information, visit: sabio.inc
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; the Company’s outlook for 2025, including expected revenue gains; expected double-digit growth in Q2 2025 and expansion into international markets; the anticipated normalization of cloud computing costs; the expected return to profitability in the latter half of 2025; the impact of recent investments (including Sales Force expansion and IT infrastructure migration) on future performance; and sales trajectory becoming increasingly predictable. 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). Material assumptions used to develop the forward-looking information in this press release include, but are not limited to: continued customer demand in core markets, successful execution of new product rollouts, stabilization of input costs including cloud infrastructure, retention of key personnel, no material changes in applicable regulatory frameworks, and general economic conditions remaining consistent with management expectations. 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 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, [email protected], Phone: 1.844.974.2662; Sam Wang, Investor Relations, [email protected]
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