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• Sabio reported excellent Q4 and 2024 financial results that beat our original expectations prior to being revised upward on the pre-release.
• Revenue came in at $18.3M (+44% YoY) compared to our original estimate of $16.4M and revised estimate of $18.0M. Adjusted EBITDA came in at $2.8M (+38% YoY) vs. our estimate of $2.7M.
• Sabio guided for continued solid growth and margins into 2025 and 2026.
• We recently published an interview with management, watch it here.
Yesterday after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported stellar Q4 and 2024 financial results, exhibiting 44% revenue growth and 38% EBITDA growth in the quarter. Q4 was driven by continued rapid growth in the ad-supported streaming segment while the mobile segment returned to positive growth for a 2nd consecutive quarter. We recently published a management interview with CEO Aziz Rahimtoola and CFO Sajid Premji, watch it here. We are maintaining our BUY rating and increasing our target price to C$1.00/share (previously C$0.90/share) on Sabio Holdings.
Q4/24 Highlights
• Revenue of $18.3M (+44% YoY), beating our revised estimate of $18.0M (originally $16.4M) and slightly exceeding management’s guidance of between $18.0-18.2M. The strong growth was led by ad-supported streaming segment which grew 57% YoY and represented 79% of sales. Normalizing for political revenue, the ad-supported streaming revenue grew 32% in the quarter. The mobile segment grew 16% YoY, its 2nd consecutive quarter of growth.
• Gross margin of 62% beating our revised estimates of 60% (originally 62%) and management’s guidance of 59% to 61%.
• Adjusted EBITDA of $2.8M (16% margin, +38% YoY growth) beating our estimate of $2.7M and hitting the top end of management’s guidance of between $2.6M and $2.8M. This was led by SBIO’s improved cost structure.
• Net income of $1.2M vs. our estimates of $2.0M. The miss was attributable to a $0.9M loss on loan forgiveness.
• Sabio ended the quarter with $3.3M in cash vs. $2.9M in Q3/24 and $6.8M in total debt compared to $7.2M in Q3/24.
SBIO: Increasing Target Price on Strong Q4 & 2024 Financials
What you need to know:• Sabio reported excellent Q4 and 2024 financial results that beat our original expectations prior to being revised upward on the pre-release.
• Revenue came in at $18.3M (+44% YoY) compared to our original estimate of $16.4M and revised estimate of $18.0M. Adjusted EBITDA came in at $2.8M (+38% YoY) vs. our estimate of $2.7M.
• Sabio guided for continued solid growth and margins into 2025 and 2026.
• We recently published an interview with management, watch it here.
Yesterday after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported stellar Q4 and 2024 financial results, exhibiting 44% revenue growth and 38% EBITDA growth in the quarter. Q4 was driven by continued rapid growth in the ad-supported streaming segment while the mobile segment returned to positive growth for a 2nd consecutive quarter. We recently published a management interview with CEO Aziz Rahimtoola and CFO Sajid Premji, watch it here. We are maintaining our BUY rating and increasing our target price to C$1.00/share (previously C$0.90/share) on Sabio Holdings.
Q4/24 Highlights
• Revenue of $18.3M (+44% YoY), beating our revised estimate of $18.0M (originally $16.4M) and slightly exceeding management’s guidance of between $18.0-18.2M. The strong growth was led by ad-supported streaming segment which grew 57% YoY and represented 79% of sales. Normalizing for political revenue, the ad-supported streaming revenue grew 32% in the quarter. The mobile segment grew 16% YoY, its 2nd consecutive quarter of growth.
• Gross margin of 62% beating our revised estimates of 60% (originally 62%) and management’s guidance of 59% to 61%.
• Adjusted EBITDA of $2.8M (16% margin, +38% YoY growth) beating our estimate of $2.7M and hitting the top end of management’s guidance of between $2.6M and $2.8M. This was led by SBIO’s improved cost structure.
• Net income of $1.2M vs. our estimates of $2.0M. The miss was attributable to a $0.9M loss on loan forgiveness.
• Sabio ended the quarter with $3.3M in cash vs. $2.9M in Q3/24 and $6.8M in total debt compared to $7.2M in Q3/24.
Underlying
Sabio Holdings, Inc. (SBIO)
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Nicholas Cortellucci, CFA
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