Sabio Holdings (SBIO) Q4 2024 earnings summary

Executive summary

• Achieved record full-year consolidated revenues of $49.6M in 2024, up 38% year-over-year, with a gross margin of 62% and adjusted EBITDA of $3.8M, reversing a prior year loss.

• Q4 2024 revenues reached $18.3M, up 44% from Q4 2023, with adjusted EBITDA of $2.8M.

• Ad-supported streaming sales grew 60% to $38.6M, now 78% of sales mix, with strong customer retention and 90% recurring revenue rates.

• Expanded internationally, with new hires in the UK and Turkey, and a profitable international unit contributing $1.4M in its first full year.

• Launched new products including Creator TV and programmatic offerings, enhancing differentiation and future growth potential.

Financial highlights

• Q4 2024 sales reached $18.3M, up 44% year-over-year; full-year sales were $49.6M, up 38%.

• Adjusted EBITDA margin improved to 8%, with $3.8M in adjusted EBITDA for 2024, compared to a $1.8M loss in 2023.

• Gross margins increased to 62% from 61% year-over-year.

• Net income for 2024 was $1.2M, compared to a net loss of $4.8M in 2023.

• Paid down $1.9M in debt, ending the year with $5.2M outstanding and $3.3M in cash.

Outlook and guidance

• Predictable sales model and high recurring revenue expected to drive sustainable double-digit growth in 2025, with strong Q1 visibility.

• New offerings like programmatic and Creator TV are modeled to contribute single-digit percentages to top line in 2025, with greater impact expected in 2026.

• International sales expected to more than double in 2025, building on 3% of 2024 sales.

• Continued expansion into international markets, with early traction in the UK and plans for India.

• Cautious on Q3/Q4 2025 due to potential tariff impacts, but confident in strategy and diversified revenue streams.