Q2 2024 Sabio Holdings Inc Earnings Call Transcript
Key Points
- Sabio Holdings Inc (SABOF) reported its best second-quarter results as a public company, with sales increasing by 11% to USD8.9 million.
- The company's Connected TV and OTT ad-supported streaming sales grew by 39%, significantly outpacing the estimated 16% growth rate for the US CTV industry.
- Sabio Holdings Inc (SABOF) achieved a 91% recurring revenue rate, with 70% of top brand customers increasing their spend from the previous year.
- The company has successfully transitioned to a more cost-efficient ad-supported streaming sales model, reducing operating expenses by 13% compared to the previous year.
- Sabio Holdings Inc (SABOF) is launching new programmatic and performance products, expected to drive additional revenue without affecting bottom-line efficiencies.
- Mobile display sales decreased by 36% from the previous year, indicating a shift in customer spending preferences.
- Despite improvements, the company still reported an adjusted EBITDA loss of under USD300,000 for the quarter.
- Political spend in Q2 was cautious due to the unusual 2024 US election cycle, with heavy spend expected later in the year.
- The transition to programmatic offerings may pressure gross margins, although it is expected to improve EBITDA margins.
- There were additional restructuring charges in the quarter, although the company claims most heavy lifting is complete.
Good morning, everyone, and welcome to the Sabio Holdings earnings call for the second quarter of 2024. The financial statements and MD&A have been filed, and they can be accessed through the SEDAR website. My name is Aideen McDermott, Investor Relations Associate at Sabio. And joining us on the call today is Aziz Rahimtoola, Founder and CEO; and Sajid Premji, Chief Financial Officer. We will start today's call with Aziz and Sajid discussing our Q2 results, and we will then follow that up with a Q&A session.
Before we begin today's call, I would like to remind everyone that certain statements made today may contain forward-looking information that are subject to known and unknown risks, uncertainties, and other factors. For a complete description of risks and uncertainties facing the company, please refer to the company's MD&A and other continuous disclosure filings that are also available on the SEDAR website. Please note that all figures discussed today are in US dollars unless stated otherwise.
And with that, I
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