Sabio Holdings (SBIO) 17th Annual LD Micro Main Event Conference summary

Market trends and business model

• Streaming TV and apps are replacing traditional TV, creating a fragmented media landscape and new opportunities for targeted advertising.

• The company leverages a proprietary analytics platform to help brands reach and validate diverse audiences across 55 million U.S. households.

• Recurring business model with 91% advertiser retention and 120% revenue growth since 2021.

• The U.S. market is increasingly diverse, with half of Gen Z identifying as diverse, driving demand for multicultural targeting.

• The streaming ad market is valued at $45 billion and continues to grow, especially as cord-cutting accelerates.

Financial performance and growth

• Revenue grew by 11% in Q2, with CTV/OTT as the primary growth driver, outpacing industry growth rates.

• 77% of revenue now comes from CTV/OTT, up from 8% three to four years ago, reflecting a major business transformation.

• 70% of top brands increased their spending year-over-year, and 20% of brands onboarded in H1 were new clients.

• Achieved positive EBITDA for three consecutive years until 2023, when cost-saving measures were implemented to offset macroeconomic headwinds.

• Q3 revenue is projected to grow by at least 75%, with positive EBITDA expected to offset earlier losses.

Strategic initiatives and competitive positioning

• Launching Creator TV, a streaming channel leveraging the creator economy, with distribution on platforms like Plex and discussions with Roku, Vizio, Samsung, and LG.

• Plans to eventually launch a proprietary CTV app after building an audience through existing platforms.

• Early focus on multicultural audiences and proprietary data/AI capabilities position the company as a leader in diverse audience targeting.

• Competitors are beginning to enter the multicultural space but lack the same depth of data and experience.

• Board includes experienced leaders from media, analytics, and capital markets, supporting growth and governance.