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TORONTO, Nov. 29, 2022 -- Sabio Holdings Inc. (TSXV: SBIO)(OTCQX: SABOF) (the "Company" or "Sabio"), a leading provider of Connected TV ("CTV")/over-the-top ("OTT") advertising platforms validated by performance, is pleased to announce its unaudited financial results for the third quarter ended September 30, 2022. Unless otherwise indicated, all amounts are expressed in U.S. dollars.
"Sabio has become one of the fastest growing technology and solutions providers in the rapidly expanding CTV and OTT advertising space as demonstrated by delivering 132% (virtually all organic) year-over-year revenue growth, substantially higher than the market", said Aziz Rahimtoola, Chief Executive Officer. "Our unique App Science® data and analytics approach to reaching CTV/OTT consumers and cord-cutters continues to resonate with advertisers who are looking for solutions that help maximize ROI."
Sajid Premji, Sabio's CFO, added, "Supported by a fifth consecutive quarter of record revenues coupled with increasing operating leverage, are pleased to have delivered a record third quarter Adjusted EBITDA1 of US$1.2 million, an increase of 78% over the prior year's quarter. Underpinned by our strength in CTV and OTT streaming, which has now become Sabio's dominant sales category, we expect strong revenue growth in the fourth quarter on both a sequential and year-over-year basis and to end 2022 with positive Adjusted EBITDA1 for the fiscal year. Moreover, we continue to be well capitalized, having ended the quarter with its highest cash balance in the Company's history, while still having over US$3 million of untapped credit available on our line of credit with Avidbank."
1 See "Use of Non-IFRS Measures" below
Third Quarter 2022 Financial Highlights
1 See "Use of Non-IFRS Measures" below
Events Subsequent to September 30, 2022:
The Company experienced significant revenue expansion in the three and nine months that ended September 30, 2022, and ended September 30, 2022, compared to the prior year's comparable periods. Our revenue growth was driven by adding new, Fortune® 100 brands and deepening relationships with existing clientele. In the fourth quarter of 2022, Sabio expects to generate strong revenue growth and gain market share as it continues to benefit from its strengthened salesforce, investments in our political and advocacy apparatus, highly differentiated product offerings, including the commercialization of our App Science business and the completion of an end-to-end, CTV/OTT ecosystem through our acquisition of Vidillion. As a result, we are uniquely positioned to continue to capitalize on the burgeoning CTV/OTT streaming advertising market, with CTV and OTT streaming emerging as our dominant sales category for the nine months. Management believes the heavy investment period in its current operating infrastructure is mainly complete, as demonstrated by improvements in operating margin in the third quarter. We expect to end 2022 with positive Adjusted EBITDA1 for the full year 2022 and see continued improvements in operating margin in 2023. To the extent we find suitable and attractive acquisition candidates that are complementary to our long-term objectives, the Company may also pursue further inorganic growth through strategic business acquisitions.
Selected Financial Highlights:
The tables below set out selected financial information relating to Sabio Holdings Inc. and should be read in conjunction with Sabio Holdings Inc.'s condensed interim consolidated financial statements, including the notes thereto, and MD&A for the three and nine months ended September 30, 2022, and September 30, 2021, copies of which can be found under Sabio Holdings Inc.'s profile on SEDAR at www.sedar.com.
1 See "Use of Non-IFRS Measures" below
The financial disclosures in this news release are subject to several cautionary statements, assumptions, contingencies, and risks as outlined in set this news release. The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the "Forward-Looking Statements" cautionary statement below. Readers are cautioned that this release if for information purposes only and may not be appropriate for other purposes.
The financial results set forth above have not been audited and are based on a review conducted by the Company's independent auditor, MNP LLP. The Company's auditor has not audited the accompanying interim financial results, accordingly, does not express an opinion with respect thereto. Furthermore, the unaudited financial results have been reviewed by the audit committee of the Company and approved by its board of directors. These unaudited financial results however should not be viewed as a substitute for audited financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and are not necessarily indicative of the Company's results for any future period. In addition, the results highlighted in this release are not a comprehensive statement of the Company's financial results. A more complete description of the Company's financial position is provided in the Sabio's unaudited consolidated financial statements, including the notes thereto, and management's discussion and analysis (MD&A) for the three months ended September 30, 2022, and September 30, 2021, which can be found under Sabio's profile on SEDAR at www.sedar.com.
Please Note: Investors are urged to consider closely the disclosures in the Company's annual and quarterly reports and other public filings available under Sabio's profile on SEDAR at www.sedar.com
The Company will host an investor conference call for the three months ending September 30, 2022, at 9:00 a.m. ET on Tuesday, November 29, 2022. The webinar details are below:
Date: November 29, 2022
Time: 9:00 a.m. ET (6:00 a.m. PT)
Webinar Registration: https://bit.ly/3zZRDfL
For higher quality, dial a number based on your current location.
+1 778 907 2071 (Vancouver local)
+1 647 374 4685 (Toronto local)
825 2778 0161
Please connect 5 minutes before the conference call to ensure time for any software download.
Sabio Holdings Inc. (TSXV: SBIO) (OTCQX: SABOF) is one of the fastest-growing CTV/OTT technology and service providers in the high-growth ad-supported video-on-demand (VOD) and streaming space. Its cloud-based CTV/OTT technologies provide publishers with distribution, monetization, and analytics while delivering ROI validation for brands and agencies. The Sabio Holdings portfolio is comprised of: Sabio — our trusted and transparent content monetization DSP; App Science™ — our cutting edge, non-panel based, real-time measurement and attribution SAAS platform; and Vidillion — our cloud-based ad-insertion, and content distribution and management platform.
For more information, visit: sabioholding.com
Use of Non-IFRS Measures
This press release makes reference to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective. Accordingly, non-IFRS measures should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Management believes that these non-IFRS measures provide useful information to investors in measuring the financial performance of Sabio for the reasons outlined below.
Management uses adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") as a key financial metric to evaluate Sabio's operating performance as a complement to results provided in accordance with IFRS. The term "Adjusted EBITDA", as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs.
Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Sabio's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of Sabio's operating performance. It is a key measure used by Sabio's management and board of directors to understand and evaluate Sabio's operating performance, to prepare annual budgets and to help develop operating plans.
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, including but not limited to the Company's operations, growth and sales expectations and business plans, the Company's outlook for the fourth quarter of 2022 and fiscal year 2023, and its expectations with respect to revenue growth and cash flow management, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the Contract not yielding the revenue anticipated, the effect of the macro-economic environment adversely impacting the Company's business more than anticipated, unexpected funding and cash flow management difficulties, and the other risk factors disclosed in the Company's filing statement and management's discussion and analysis (MD&A), which are publicly available on SEDAR at www.sedar.com. Actual financial results may differ materially from the financial outlook provided in this press release and the financial outlook has not been audited or reviewed. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
™ App Science is a trademark or registered trademark of Sabio Inc. in the United States, Canada, and other countries.
For further information: Sabio Holdings Inc., Joe Camacho, Chief Global Expansion Officer - email@example.com, Phone: 1.844.974.2662; Aideen McDermott, Investor Relations Associate, firstname.lastname@example.org