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TORONTO, May 30, 2022 -- Sabio Holdings Inc. (TSXV: SBIO) (the "Company" or "Sabio"), a leading provider of CTV/OTT advertising platforms validated by performance, is pleased to announce its unaudited financial results for the first quarter ended March 31, 2022. Unless otherwise indicated, all amounts are expressed in U.S. dollars.
"We are pleased with our results for the first quarter of 2022. Sabio continues to execute and take advantage of the significant industry shift towards ad-supported CTV/Streaming," stated Aziz Rahimtoola, CEO and founder of the Company. "Despite the seasonal nature of our industry along with supply shortages and other macro environment issues, we continued our streak of double-digit organic growth, putting us in the strongest financial position in the Company's history."
Sajid Premji, Sabio's Chief Financial Officer, added "on the heels of record 2021 results, the first quarter of 2022 was the strongest first quarter in the Company's history, and we ended the quarter with ample cash reserves. We have further strengthened our cash position subsequent to the quarter-end with a potential US$3 million increase to our credit line with Avidbank. Our sales pipeline for the rest of the 2022 is the strongest in the Company's history and we expect to continue to deliver strong revenue growth, improve our cash flows in the remaining quarters, and deliver positive Adjusted EBITDA1 for the full year. We believe the Company is well-funded to navigate through any potential foreseeable short-term challenges that the current macro environment may present."
1 See "Use of Non-IFRS Measures" below
First Quarter 2022 Financial Highlights
1 See "Use of Non-IFRS Measures" below
First Quarter 2022 Business Highlights:
Events Subsequent to March 31, 2022:
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 March 31, 2022, and March 31, 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 Company's annual and quarterly reports and other public filings available under Sabio's profile on SEDAR at www.sedar.com
Sabio delivered strong results in 2021, growing revenues by 84% compared to 2020, and generating positive Adjusted EBITDA1, as the Company's early investments in technology positioned the Company well to take advantage of the rapidly expanding CTV market. Management believes the market opportunity being created by the shift from traditional TV to CTV is in the early stages, and is poised for expansion over the coming years. Management believes the outlook for the Company remains positive for the year, and expects Sabio to continue to deliver robust organic revenue growth in 2022. The investments in the Company's sales force made late last year, coupled with the integration of the recent Acquisition, is believed to have further strengthened the Company's position in the burgeoning CTV/OTT streaming advertising market. Moreover, the upcoming mid-term elections in the U.S. is anticipated to present a substantial revenue opportunity in the second half of 2022. The Company's current sales pipeline is at the highest level in the Company's history, with the vast majority of mid term election-related opportunities yet to come to market.
Overall, despite the current challenging macroeconomic environment, Sabio believes it is well positioned to continue to deliver strong revenue growth and improving cash flows throughout the remainder of the year. Sabio continues to prioritize delivering positive Adjusted EBITDA1 for the full year and is therefore closely monitoring all discretionary expenditures.
The financial disclosures in this news release are subject to a number of cautionary statements, assumptions, contingencies and risks as set forth in 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.
1 See "Use of Non-IFRS Measures" below
The Company will host an investor conference call for the three months-ending March 31, 2022, at 9:00 a.m. ET on Monday, May 30, 2022. The webinar details are below:
Date: May 30, 2022
Time: 9:00 a.m. ET (6:00 a.m. PT)
Webinar Registration: https://bit.ly/SBIO_FY22_Q1Results
For higher quality, dial a number based on your current location.
+1 778 907 2071 (Vancouver local)
+1 647 374 4685 (Toronto local)
844 8586 1628
Please connect 5 minutes prior to the conference call to ensure time for any software download that may be required.
Sabio Holdings Inc. is a technology provider in the high-growth advertising areas of connected TV ("CTV") and over-the-top ("OTT") streaming, where viewership in 2022 is expected to rise to over 221 million users in the United States CTV market alone. Sabio's full CTV/OTT technology stack and services enable global distribution and monetizes and provides analytics for content creator CTV/OTT apps and the brands and agencies that want to partner with them. Sabio's wholly owned subsidiary, Vidillion Corp. ("Vidillion"), is a CTV/OTT technology pioneer (whose business was acquired subsequent to year-end 2021) that creates and distributes ad-supported CTV/OTT apps on platforms such as Roku, Vizio, Amazon Fire, Disney + and others. In addition, the Company's wholly owned Sabio, Inc. subsidiary works with major brands and agencies, through its propriety Demand Side Platform (DSP) and ad server, to provide targeted campaign solutions to top agencies and the brands they represent by filling the ad slots in Vidillion and other non-Vidillion CTV/OTT apps. Lastly, its wholly owned AppScience, Inc. ("App Science") subsidiary, powered by its App Science™ Data Management Platform ("DMP"), has pioneered a privacy compliant, non-cookie cross screen household graph of 55 million validated homes that connects insights between mobile apps, CTV/OTT apps and podcast data, along with other data points designed to better understand consumer behaviors at scale.
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 impact of the Contract on the Company's business, the Company's outlook for 2022 and its expectations with respect to revenue growth in 2022 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 - firstname.lastname@example.org, Phone: 1.844.974.2662