Sabio Holdings (OTCPK:SABO.F) 2025 Conference Transcript

Summary of Sabio Holdings Conference Call Company Overview - Company: Sabio Holdings (OTCPK:SABO.F) - Market Cap: $17.49 million as of the conference date [2] - Employees: 124 globally, with a significant presence in North America [2] - Revenue Growth: From $13.2 million at IPO in 2021 to $49.6 million last year, representing a 33% increase [4][5] - Debt: Total debt of $8.16 million, with $6 million as part of an accounts receivable credit facility [3] Financial Performance - Adjusted EBITDA: Profitable for the last five years, with a notable EBITDA swing from a loss of $1.3 million in 2023 to a gain of nearly $4 million last year [4][27] - Recurring Revenue: 92% of revenue is recurring, with over 70% of clients increasing their spending year-over-year [10][28] - CAGR: 39% compound annual growth rate since going public [5] Business Model and Strategy - Core Business: Focuses on ad-supported streaming, working with major brands like General Motors, Ford, and McDonald's [3][10] - Creator Television: Launched in January, it is one of the fastest-growing creator-led channels in the FAST (Free Ad-Supported Streaming Television) space [9][15] - Data Utilization: Utilizes an 80 million Household Graph for targeted advertising, significantly larger than Nielsen's 40,000 panel [12] - Programmatic Advertising: 95% of ad dollars in ad-supported streaming are transacted programmatically, enhancing operational efficiency [21] Market Opportunities - Creator Economy: Targeting a $250 billion opportunity in the creator economy, leveraging partnerships with content creators to diversify revenue streams [6][9] - International Expansion: Significant growth in Europe, with expectations for UK revenue to triple, having already quadrupled in the first half of the year [21][28] - Election Year Dynamics: Anticipated growth in 2024 due to the election cycle, with historical performance showing 66% growth in election years [20][22] Challenges and Outlook - Market Conditions: Acknowledgment of challenges in Q3 due to tariffs and overall market unease, but optimism for recovery in Q4 and beyond [39][40] - Valuation: Currently trading at a steep discount compared to U.S. peers, presenting a potential investment opportunity [29] - Future Projections: 2025 is viewed as an investment year, with expectations for significant payoffs in 2026 [20][30] Key Takeaways - Strong Client Relationships: Partnerships with top brands ensure a stable revenue stream and growth potential [10] - Innovative Advertising Solutions: Combining ad-serving capabilities with analytics to provide unique insights and targeted advertising [14] - Commitment to Growth: The leadership expresses confidence in the company's trajectory and commitment to long-term growth despite short-term challenges [38][39]