Sabio Holdings (SBIO) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 revenue and profitability, marking the most profitable quarter in company history.

• Core business and international markets drove growth, with strong performance in quick service restaurant and telco categories.

• Sabio Holdings operates as a technology provider in connected TV (CTV) and over-the-top (OTT) streaming, with operations in the US, UK, Canada, and India.

• Successfully executed on strategic priorities: revenue growth, improved Adjusted EBITDA, operating leverage, and balance sheet strength.

• Completed a new $10M senior-secured revolving credit facility with SLR Digital Finance, replacing its previous Avidbank facility.

Financial highlights

• Q3 2024 sales reached $16.1 million, up 82% year-over-year from $8.8 million; nine-month revenue was $31.3 million, up from $23.3 million.

• Net income for Q3 2024 was $1.75 million, compared to a net loss of $0.74 million in Q3 2023.

• Connected TV and OTT ad-supported streaming sales grew 100% to $12.3 million, outpacing industry growth.

• Mobile display sales increased 36% to $3.5 million.

• Gross profit for Q3 2024 was $5.9 million, up from $3.6 million in Q3 2023.

Outlook and guidance

• Management expects continued double-digit sales growth and sustained Adjusted EBITDA profitability in Q4.

• Focus remains on core business, international expansion, and new product launches, including Creator TV and performance products.

• Anticipates strong momentum and benefits carrying into 2025.

• The company continues to focus on CTV/OTT technology and cross-screen solutions, with recent expansion into the UK and Europe.