Sabio Holdings (SBIO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of $8.9M, up 11% year-over-year, with double-digit revenue growth and the lowest Q2 adjusted EBITDA loss since going public.

• 91% of first-half sales came from repeat customers, reflecting core business strength and high recurring revenue.

• Connected TV/OTT ad-supported streaming sales rose 39% to $6.9M, now 77% of sales mix, up from 62% a year ago, reflecting a strategic shift from mobile display.

• Management anticipates continued double-digit revenue growth, driven by upfront commitments, high customer retention, and expected acceleration in political and advocacy spend in H2.

Financial highlights

• Q2 2024 sales reached $8.9M, up 11% from $8M in Q2 2023, with gross profit of $5.4M and gross margin improving to 61% from 60% in Q2 2023.

• Adjusted EBITDA loss narrowed to $0.3M from $1.7M in Q2 2023.

• Net loss for Q2 2024 was $1.04M, compared to $2.38M in Q2 2023.

• Operating expenses decreased 13% year-over-year, normalized for commissions and bonuses.

• Cash at June 30, 2024 was $1.64M, with $5.6M outstanding under the previous credit facility.

Outlook and guidance

• Management expects accelerating revenues and a return to meaningful adjusted EBITDA profitability for the year, with benefits from political ad spending and market share gains in Connected TV/OTT.

• Record upfront commitments and robust political spend anticipated in H2.

• New programmatic and performance products to launch in Q3/Q4, expected to add to top line without impacting bottom line efficiencies.

• Plans to allocate improved cash flows to debt repayment and increased cash reserves.

• Positive momentum in automotive and quick service restaurant sectors, with optimism for 2025 growth.