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

• 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 million² 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 EBITDA¹ 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 EBITDA¹, 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^™, 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

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 release of Q4-2024 and FY2024 results and consolidated revenue and Adjusted EBITDA expectations; that Sabio will deliver record fourth-quarter and full-year revenues and Adjusted EBITDA;  expected Q4-2024 and FY 2024 revenues, gross margin and Adjusted EBITDA; that the fourth quarter adjusted EBITDA will be the Company's highest fourth-quarter adjusted EBITDA in its history; and expected record adjusted EBITDA profitability for the 2024 fiscal year and greater balance sheet strength going into 2025. 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 filing statement 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: [phone]; Sam Wang, Investor Relations, [email protected]

SOURCE Sabio Inc.