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TORONTO, Jan. 25, 2022 -- Sabio Holdings Inc. (TSXV: SBIO) (the "Company" or "Sabio"), a leading provider of CTV/Streaming TV advertising platforms validated by performance, is pleased to announce record preliminary unaudited consolidated financial results for Q4-2021 ended December 31, 2021, and for the financial year ended December 31, 2021. These are preliminary financial results that have not been audited. The Company is currently in the process of having its full fiscal 2021 financial results audited. All amounts are expressed in U.S. dollars.
The Company expects revenues for the full year 2021 to be in the range of US$23.2 million to US$24.0 million compared to US$13.2 million in 2020 led by strong adoption of its CTV advertisement platform by leading Fortune 500 brands. Revenues for Q4-2021 are expected to be in the range of US$9.6 million to US$10.4 million compared to US$5.4 million in Q4-2020. This improved performance stems from strong growth in the CTV/Streaming TV segment, as CTV revenues, for the financial year ended December 31, 2021, are expected to be in the range of US$9.5 million to US$10 million, a 9X increase from the US$1.1 million in 2020.
For the month of December 2021, revenues from CTV are expected to have exceeded mobile sales for the first time in the Company's history. For Q4-2021, revenues from CTV are expected to make up between 45%-50% of the total revenues of the Company. Gross margin for the year is expected to be approximately 60%, consistent with 2020. Additionally, for the second year in a row, Sabio is expected to generate positive Adjusted EBITDA, a non-IFRS measure for 2021.
"Fortune 500 U.S. brands are increasingly relying on Sabio's proprietary streaming TV, and mobile DSP along with its AppScience analytics platforms to effectively and efficiently reach cable cutting consumers in the United States," said Aziz Rahimtoola, Chief Executive Officer of the Company. "Sabio's full year results benefited from the unique positioning of our mobile data powered CTV advertisement platform. We believe growth in our CTV revenues is only in the early innings, and based on industry research*, pacing well ahead of the high growth of the overall CTV market. Our overachievement in the category is a function of early focus and investments in developing our streaming and analytics capabilities, along with 5G bandwidth improvements. In addition, our 2021 increased presence in New York, by adding personnel along with the establishment of a new office, has catapulted the NY region into our fastest growing market. All of the above is leading to increased revenue visibility for both our Sabio and AppScience businesses."
The preliminary results set forth above are based on management's initial review of the Company's operating and financial results for Q4 2021 and FY2021 and are subject to change as these results have not been audited or reviewed. Final reported results could differ from these preliminary results following the completion of quarter-end and year-end accounting procedures, final adjustments, and other developments arising between now and the time that the Company's financial results are finalized, and such changes could be material. The Company's independent auditor, MNP LLP, has not audited, reviewed, or performed any procedures with respect to the accompanying preliminary financial results and other data and, accordingly, does not express an opinion or any other form of assurance with respect thereto. The preliminary results have been prepared by, and are the responsibility of, the Company's management, and were approved by management on January 24, 2022. The preliminary results have been reviewed by the audit committee of the Company but have not been approved by the board of directors of the Company. In addition, these preliminary results are not a comprehensive statement of the Company's financial results for Q4 2021 and FY2021. They 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.
A more complete description of the Company's financial position will be provided in the upcoming filing of the Company's financial statements and MD&A which are anticipated to be filed on SEDAR and made available on the Company's website on or around April 29, 2022.
These estimates 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. The purpose of this financial outlook is to provide readers with early guidance regarding management's current reasonable expectations as to the anticipated results for the calendar year 2021 and Q4-2021. Readers are cautioned that this financial outlook may not be appropriate for other purposes.
Sabio Holdings Inc. (TSXV: SBIO) is a leading provider of CTV/Streaming TV advertising platforms validated by performance. Our media and technology deliver to brands cross screen solutions built on mobile behavior. The Sabio Holdings portfolio is comprised of the trusted and transparent demand-side platform Sabio, and the real-time measurement and attribution platform AppScience®. Together, the companies provide brands and agencies with one of the first end to end advertising suites, powered by its proprietary household graph of more than 300M mobile devices and 55MM CTV households.
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.
We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. We believe 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, we believe 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 release of Q4 2021 and FY 2021 results, 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 risk factors disclosed in the Filing Statement which is publicly available on SEDAR at www.sedar.com. 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.
*eMarketer 2021 research
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