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• Sabio reported Q1/25 financial results that beat our estimates on revenue and were in line on profitability.
• Revenue was $9.1M (+43% YoY), compared to our estimate of $7.0M. This was driven by 40% growth from the ad-supported streaming segment and 58% growth from the mobile segment.
• Adjusted EBITDA came in at ($1.6M), in line with our model.
• Sabio guided for another quarter of double-digit growth in Q2.
Yesterday after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported strong Q1 financial results, posting 43% revenue growth and its fourth consecutive quarter of double-digit growth. We remind readers that Q1 is seasonally the weakest quarter for SBIO and the bulk of its revenue and EBITDA are generated in H2. We remain highly bullish on Sabio as it hits major catalysts over the next two years. We are maintaining our BUY rating and C$1.00/share target price on Sabio Holdings.
Q1/25 Highlights
• Revenue came in at $9.1M (+43% YoY), beating our estimate of $7.0M. This was comprised of $6.8M in ad-supported streaming revenue (+40% YoY), $2.0M in mobile display revenue (+58% YoY), and $0.3M in other revenue (+18% YoY).
• This was the fifth consecutive quarter of double-digit growth for the ad-supported segment. The growth came from a diversified group of industries, with no vertical representing more than 19% of sales (lowest in history).
• 91% of revenue came from repeat customers (excluding political and advocacy revenue), up from 85% in Q1/24. Management has also seen increased sales pipeline visibility with $15M in upfront commitments (vs. $12M in 2024).
• Gross margin was 61%, slightly above our estimate of 60% and 59% in Q1/24.
• Adjusted EBITDA was ($1.6M), which was in line with our forecast of ($1.6M). This represented an (18%) EBITDA margin compared to (21%) in Q1/24.
• Net income of ($2.3M) vs. our estimate of ($2.3M). Notably, SG&A expenses increased only 30% YoY while research and technology expenses increased 91% YoY; demonstrating continued investments in growth, such as one-time investments in cloud computing and strategic sales force hiring.
• Sabio ended the quarter with $3.8M in cash vs. $3.3M in Q4 after generating $1.0M in OCF. Total debt was $6.6M compared to $6.9M in Q4.
SBIO: Impressive Q1 Financials & Bullish Outlook
What you need to know:• Sabio reported Q1/25 financial results that beat our estimates on revenue and were in line on profitability.
• Revenue was $9.1M (+43% YoY), compared to our estimate of $7.0M. This was driven by 40% growth from the ad-supported streaming segment and 58% growth from the mobile segment.
• Adjusted EBITDA came in at ($1.6M), in line with our model.
• Sabio guided for another quarter of double-digit growth in Q2.
Yesterday after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported strong Q1 financial results, posting 43% revenue growth and its fourth consecutive quarter of double-digit growth. We remind readers that Q1 is seasonally the weakest quarter for SBIO and the bulk of its revenue and EBITDA are generated in H2. We remain highly bullish on Sabio as it hits major catalysts over the next two years. We are maintaining our BUY rating and C$1.00/share target price on Sabio Holdings.
Q1/25 Highlights
• Revenue came in at $9.1M (+43% YoY), beating our estimate of $7.0M. This was comprised of $6.8M in ad-supported streaming revenue (+40% YoY), $2.0M in mobile display revenue (+58% YoY), and $0.3M in other revenue (+18% YoY).
• This was the fifth consecutive quarter of double-digit growth for the ad-supported segment. The growth came from a diversified group of industries, with no vertical representing more than 19% of sales (lowest in history).
• 91% of revenue came from repeat customers (excluding political and advocacy revenue), up from 85% in Q1/24. Management has also seen increased sales pipeline visibility with $15M in upfront commitments (vs. $12M in 2024).
• Gross margin was 61%, slightly above our estimate of 60% and 59% in Q1/24.
• Adjusted EBITDA was ($1.6M), which was in line with our forecast of ($1.6M). This represented an (18%) EBITDA margin compared to (21%) in Q1/24.
• Net income of ($2.3M) vs. our estimate of ($2.3M). Notably, SG&A expenses increased only 30% YoY while research and technology expenses increased 91% YoY; demonstrating continued investments in growth, such as one-time investments in cloud computing and strategic sales force hiring.
• Sabio ended the quarter with $3.8M in cash vs. $3.3M in Q4 after generating $1.0M in OCF. Total debt was $6.6M compared to $6.9M in Q4.
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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