Sabio Holdings (SBIO) Q2 2024 earnings summary

Executive summary

• Achieved best Q2 results as a public company, with double-digit revenue growth and lowest Q2 adjusted EBITDA loss since going public.

• Core business strength and high recurring revenue rates drove performance, with 91% of first-half sales from repeat customers.

• CTV/OTT ad-supported streaming now represents 77% of revenue mix, up from 62% a year ago.

• Sabio Holdings operates as a technology provider in CTV and OTT streaming, focused on digital advertising and analytics in the US and UK.

• The company reported a net loss of $1.04 million for Q2 2024 and $3.06 million for the six months ended June 30, 2024, compared to net losses of $2.38 million and $5.16 million for the same periods in 2023.

Financial highlights

• Q2 2024 sales reached $8.9 million, up 11% year-over-year from $8 million; six-month revenue was $15.25 million, up from $14.47 million.

• CTV/OTT ad-supported streaming sales grew 39% year-over-year to $6.9 million.

• Gross profit for Q2 2024 was $5.45 million (61.3% margin), compared to $4.82 million (60.4% margin) in Q2 2023.

• Adjusted EBITDA loss narrowed to under $300,000 from $1.7 million in Q2 2023.

• Operating expenses for Q2 2024 totaled $6.17 million, down from $6.96 million in Q2 2023.

Outlook and guidance

• Management expects accelerating revenues and a return to meaningful adjusted EBITDA profitability for the year.

• Double-digit top-line growth anticipated in Q3 and Q4, driven by core business and political/advocacy spend.

• New programmatic and performance products launching in H2 2024, expected to add incremental revenue.

• On July 31, 2024, Sabio closed a new $10 million senior-secured revolving credit facility with SLR Digital Finance, replacing the Avidbank facility, to support future growth and liquidity.

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