Sabio Holdings Inc., a Los Angeles-based ad-tech company specializing in Connected TV (CTV) advertising, reported robust unaudited financial results for Q1 2025. With a strong 43% year-over-year revenue growth and significant developments in both technology and global market reach, the company is reinforcing its position as a major player in the ad-supported streaming space.
Highlights and Developments
1. Strong Financial Performance
- Achieved 43% YoY revenue growth, reaching $9.1 million in Q1 2025.
- Gross profit margin rose to 61%, up from 59% in Q1 2024.
- 91% of Q1 revenue came from repeat customers, demonstrating strong client retention.
- Cash balance increased to $3.8 million from $3.3 million in Q4 2024.
- Debt reduced by $0.2 million through repayments tied to receivable collections.
2. Growth Drivers
- Expansion across verticals like telecom, travel, QSR, tech, and finance.
- International revenue, notably in the UK, compounding at triple-digit rates.
- 25% of Q1 spending came from new clients, further diversifying revenue streams.
- 39% CAGR since 2020 underscores long-term growth momentum.
3. Strategic Investments and Technological Advancements
- Invested in scaling Sales Force and migrating to AWS cloud for better scalability.
- AWS migration supports enhanced data security and AI-driven efficiencies.
- Cloud costs increased temporarily but are expected to normalize moving forward.
4. Business Outlook and Sales Visibility
- Secured $15 million in upfront media commitments for 2025, up from $12 million in 2024.
- Sales forecast shows continued double-digit growth into Q2 2025.
- Seasonal revenue trends indicate stronger H2 performance.
Product and Platform Expansion
5. Launch of Creator TV
- Debuted in January 2025 as a Free Ad-Supported TV (FAST) channel targeting Gen Z and millennials.
- Distributed via global platforms including Plex and Sling Freestream.
- Reaches over 20 million viewers internationally and in the U.S.
6. App Science Platform Expansion
- Household graph now spans 80 million households (70% of U.S. streaming homes).
- Enables privacy-compliant, granular audience targeting across CTV and mobile.
7. Partnerships and Distribution
- Partnered with Sling TV to broaden Creator TV’s U.S. distribution.
- Strengthens Sabio’s positioning in both domestic and international ad markets.
8. Tax Credit Recovery and Share Buyback
- Received $583,069 from IRS under ERTC for 2021 (not included in Q1 cash balance).
- TSXV approved buyback of up to 883,550 shares, effective May 24, 2025.
Sabio Holdings Inc. is leveraging strategic investments, product innovation, and global expansion to outperform the broader Connected TV market. With a solid start in Q1 2025 and clear visibility into future revenue streams, the company is well-positioned for sustained growth through the rest of the fiscal year. Its blend of repeat customer loyalty, diversified revenue, and cutting-edge tech infrastructure sets the stage for a record-breaking 2025.
