Sabio Holdings (SBIO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of $8.9M, up 11% year-over-year, with double-digit revenue growth and the lowest Q2 adjusted EBITDA loss since going public.

• 91% of first-half sales came from repeat customers, highlighting core business strength and high recurring revenue.

• Connected TV/OTT ad-supported streaming now represents 77% of revenue mix, up from 62% a year ago, reflecting a strategic shift from mobile display.

• Political and advocacy spend expected to accelerate in H2, with early Q3 political spend already surpassing Q2 and 2022 levels.

• Management anticipates continued double-digit revenue growth, driven by upfront commitments and high customer retention.

Financial highlights

• Q2 2024 sales reached $8.9 million, up 11% year-over-year from $8 million.

• Connected TV/OTT ad-supported streaming sales grew 39% year-over-year to $6.9 million.

• Mobile display sales declined 36% year-over-year to $1.9 million as customers shifted to streaming.

• Gross margin improved to 61% from 60% in Q2 2023.

• Adjusted EBITDA loss narrowed to $0.3M from $1.7M in Q2 2023.

Outlook and guidance

• Management expects accelerating revenues and a return to meaningful adjusted EBITDA profitability for the year.

• Double-digit top-line growth anticipated in Q3 and Q4, driven by core business and political/advocacy spend.

• Anticipates benefiting from political ad spending and continued market share gains in Connected TV/OTT.

• Plans to allocate improved cash flows to debt repayment and increased cash reserves.

• New programmatic and performance products launching in H2 2024, expected to add incremental, non-cannibalizing revenue.