Sabio Holdings (SBIO) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $16.1 million, up 82% year-over-year, marking the most profitable quarter in company history.

• Adjusted EBITDA reached a record $2.6 million (16% margin), a 37x increase from Q3 2023, with net income of $1.75 million.

• Core business and international markets drove growth, with strong performance in quick service restaurant, telco, and mobile display categories.

• Core branded advertising (excluding political/advocacy) grew 28% year-over-year, with 90% recurring revenue and 36% new client logos in the nine-month period.

• Successfully executed on strategic priorities: revenue growth, improved Adjusted EBITDA, operating leverage, and balance sheet strength.

Financial highlights

• Q3 2024 sales reached $16.1 million, up 82% year-over-year from $8.8 million.

• Connected TV/OTT ad-supported streaming sales grew 100% to $12.3 million, representing 77% of sales mix and outpacing industry growth.

• Mobile display sales increased 36% to $3.5 million.

• Gross margin improved to 63% from 59% in Q3 2023, with gross profit at $10.1 million.

• Political campaign revenue contributed $5 million in Q3, mainly in CTV, providing significant diversification.

Outlook and guidance

• Management expects continued double-digit sales and Adjusted EBITDA growth in Q4 and into 2025, driven by core business and Connected TV/OTT momentum.

• Focus remains on core business, international expansion, and new product launches, including Creator TV and performance products.

• 90% recurring revenue rate and increased predictability in sales model de-risk future growth.

• Anticipates strong momentum and benefits carrying into 2025.