- Revenues of US$10.6 million in
Q4-2021 compared to US$5.4 million in
Q4-2020, an increase of 96% driven by a 664% growth in Connected TV
("CTV").
- Gross Profit of US$6.25
million in Q4-2021 compared to US$3.1
million in Q4-2020, an increase of 102%.
- Positive Adjusted EBITDA (see "Use of Non-IFRS Measures"
below) of US$1.7 million for Q4-2021
compared to US$1.6 million in
Q4-2020.
- Robust sales momentum has continued into 2022 with a strong
sales pipeline and increased interest from major brands and
agencies for annual and multi-year deals.
NOT FOR DISTRIBUTION TO UNITED
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CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY
ANY SECURITIES IN THE UNITED
STATES. ANY SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S.
SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE
OFFERED OR SOLD WITHIN THE UNITED
STATES OR TO U.S. PERSONS UNLESS REGISTERED UNDER THE U.S.
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION
FROM SUCH REGISTRATION IS AVAILABLE.
TORONTO, April 20,
2022 /CNW/ -- Sabio Holdings Inc. (TSXV: SBIO) (the
"Company" or "Sabio"), a leading provider of CTV/OTT
advertising platforms validated by performance, is pleased to
announce its audited consolidated annual results and results for
the fiscal fourth quarter ended December
31, 2021. Unless otherwise indicated, all amounts
are expressed in U.S. dollars.
Aziz Rahimtoola, Founder &
CEO of the Company, stated, "our outstanding fourth quarter results
demonstrate the strong product/market fit of our CTV powered by
Mobile Data solutions with major Fortune 100 customers.
The strong revenue growth is being driven by our success with
major brands across multiple verticals. We are seeing this
strength across key business metrics: average deal size grew 70%
year-over-year, from approximately US$59K in 2020 to US$100K in 2021; over 80% of CTV brands who had
over US$100K in spend with the
company in 2020 renewed in 2021, as did 100% of the brands who
spent over US$1 million with Sabio in
the prior year. Moreover, we are starting to sign annual and
multi-year deals with some of the world's biggest brands".
Jon Stimmel, Chief Growth Officer
of the Company, commented, "the market opportunity being created by
the shift from traditional TV to CTV/OTT is in the early stages and
we believe it is poised for major expansion over the coming
years. We recognized this potential pending shift early and
made strategic investments in technology. We believe that
these investments, coupled with our recent acquisition of Vidillion
and our strengthening relationships with Fortune 100 brands, puts
us in a strong position to take advantage of this expanding
market. We are seeing the strong sales momentum of the second
half of 2021 continue into 2022, with increasing deal sizes and a
greater number of opportunities turning into annual or multi-year
deals. This is a testament to the hard work and resilience of
our team".
Fiscal 2021 Annual Financial Highlights:
- Sabio delivered record revenues of US$24.2 million in fiscal 2021 up 84% over fiscal
2020, led by a 10x growth in CTV revenues
- CTV generated revenues of US$10.2
million in fiscal 2021 compared to US$1.1 million in fiscal 2020
- Record gross profit of US$14.6
million, up 84% over fiscal 2020 with gross margin of 60% in
2021, same as 2020
- Positive Adjusted EBITDA1 of US$1.85 million up from US$1.75 million in 2020
1 See "Use of Non-IFRS Measures" below
Fourth Quarter 2021 Financial Highlights:
- Fourth quarter 2021 revenues were US$10.6 million, up 96% from US$5.4 million in Q4-2020
- CTV revenues of US$5.2 million in
Q4-2021, up 664% from US$0.68 million
in Q4-2020
- Mobile revenues of US$5.3 million
in Q4-2021, up 13% from US$4.7
million in Q4-2020
- Gross Profit of US$6.25 million
in Q4-2021, an increase of 102% from US$3.1
million in Q4-2020
- Fourth quarter 2021 gross margin of 59% compared to 58% in
Q4-2020
- Positive Adjusted EBITDA1 of US$1.7 million for Q4-2021 compared to
$1.6 million in Q4-2020
1 See "Use of Non-IFRS Measures" below
Fourth Quarter 2021 Business Highlights:
- On October 15, 2021, Sabio
announced the closing of the previously announced private placement
of subscription receipts for aggregate gross proceeds of
C$6,559,316 by Sabio Canada Finco, Inc. ("Finco"), an
Ontario corporation and a
wholly-owned subsidiary of Sabio. On October
22, 2021, Finco closed a second tranche of the concurrent
financing for aggregate gross proceeds of C$89,374. Including both tranches, the concurrent
financing was comprised of an aggregate of 3,799,252 subscription
receipts at a price of C$1.75 per
subscription receipt for aggregate gross proceeds of C$6,648,691.
- The Company (previously, Spirit Banner II Capital Corp.
("Spirit")) entered into a business combination agreement
effective October 13, 2021 with
Sabio, among others, to effect the proposed reverse-takeover
transaction of Sabio by the Company. On November 19, 2021, in
connection with the completion of the Qualifying Transaction (as
such term is defined in the policies of the TSX Venture Exchange)
of the Company, Finco and 2872484 Ontario Inc., a wholly owned
subsidiary of Spirit, amalgamated pursuant to the provisions of
the Business Corporations Act (Ontario), and all of the issued and
outstanding shares of Finco were exchanged for securities of the
resulting issuer, being the Company, on a one-for-one basis.
Effective November 19, 2021, Sabio also consolidated its share
capital on the basis of approximately 0.2735 common shares (old)
for 1 common share (new), and Spirit consolidated its share capital
on the basis of approximately 15.9091 common shares (old) for 1
common share (new). The resulting issuer of the transaction was the
Company, and was renamed "Sabio Holdings Inc." (TSXV: SBIO),
and its U.S. operating subsidiary "Sabio Mobile, Inc." changed its
name to "Sabio, Inc.". Trading in the Company's common shares on
the TSXV commenced on November 26,
2021.
- On November 23, 2021, Sabio closed on a new credit
facility pursuant to the terms of a credit agreement between Sabio
and Avidbank. The facility is secured against assets of
the [Company] including, but not limited to, its accounts
receivable and provides for a US$4 million accounts
receivable line of credit at an interest rate of the greater of (i)
the Wall Street Journal prime rate plus 1.00% and (ii) 4.25%.
On November 24, 2021, Sabio drew on the facility to
refinance US$2,685,000 in high-interest promissory notes,
which bore stated interest rates ranging from 10% to 15%. The
refinance is expected to result in significant cost savings to
Sabio.
Events Subsequent to December 31,
2021:
- On February 22, 2022, Sabio announced the signing of
definitive agreement to acquire substantially all of the assets of
Vidillion Inc. ("Vidillion") a U.S based CTV/OTTT supply
side platform in a combined stock and cash transaction.
- On April 1, 2022, Sabio completed
the acquisition of substantially all of the assets of Vidillion
through its wholly-owned subsidiary Vidillion Corp.
Sabio's annual consolidated financial statements, including the
notes thereto, and management's discussion and analysis (MD&A)
for the twelve months ended December 31,
2021 and December 31, 2020, can be found under Sabio's
profile on SEDAR at www.sedar.com.
Outlook
Sabio experienced significant revenue expansion in 2021, driven
by both the addition of new Fortune® 100 brands and deepening
relationships with existing clientele. Sabio expects to continue to
deliver robust organic revenue growth in 2022 as it aims to exploit
its unique value proposition in the burgeoning CTV/OTT streaming
advertisement market. Sabio believes with the Vidillion
acquisition it has one of the most complete technology stacks in
the industry, and is continuing to invest in its sales, operations,
and technology with the aim of ensuring it remains at the forefront
to take advantage of the growth opportunities as the markets and
verticals it serves continue to recover from the Covid-19
pandemic. Sabio continues to earn the trust of some of its
leading customers by delivering compelling return on their
investments in Sabio's products and services. Sabio is seeing
increasing interest in these customers signing annual or multi-year
deals further solidifying its growth prospects.
Conference Call:
The Company will host an investor conference call for the fourth
quarter and year-ended December 31,
2021 at 5:00 p.m. ET on
Wednesday, April 20, 2022. The webinar details are
below:
Date: April 20, 2022
Time: 5:00 p.m. ET (2:00 p.m. PT)
Webinar Registration:
https://bit.ly/SBIOQ4_FisacalYear2021
Or dial:
|
For higher quality,
dial a number based on your current location.
Canada:
+1 778 907 2071 (Vancouver local)
+1 647 374 4685 (Toronto local)
|
Webinar ID:
|
829 5139
0671
|
|
|
Please connect 5 minutes prior to the conference call to ensure
time for any software download that may be required.
About Sabio
Sabio Holdings Inc. is a technology provider in the high-growth
advertising areas of connected TV ("CTV") and over-the-top
("OTT") streaming, where viewership in 2022 is expected to
rise to over 221 million users in the
United States CTV market alone[1]. Sabio's full CTV/OTT
technology stack and services enables global distribution,
monetizes, and provides analytics for content creator CTV/OTT apps
and the brands and agencies that want to partner with them. Sabio's
wholly owned subsidiaries include Vidillion Corp.
("Vidillion"), a CTV/OTT technology pioneer (whose business
was acquired subsequent to year-end) that creates and distributes
ad-supported CTV/OTT apps on platforms such as Roku, Vizio, Amazon
Fire, Disney + and others. In addition, the Company's wholly owned
Sabio, Inc. subsidiary works with major brands and agencies,
through its propriety Demand Side Platform (DSP) and ad server, to
provide targeted campaign solutions to top agencies and the brands
they represent by filling the ad slots in Vidillion and other
non-Vidillion CTV/OTT apps. Lastly, its wholly owned AppScience,
Inc. ("App Science") subsidiary, powered by its App Science™
Data Management Platform ("DMP"), has pioneered a privacy
compliant, non-cookie cross screen household graph of 55 million
validated homes that connects insights between mobile apps, CTV/OTT
apps, podcast data, along with other data points to better
understand consumer behaviors at scale.
For more information, visit: sabioholding.com and/or
AppSci.io.
Use of Non-IFRS Measures
This press release makes reference to certain non-IFRS
(International Financial Reporting Standards) measures including,
but not limited to Adjusted EBITDA. These measures do not
have a standardized meaning prescribed by IFRS and therefore they
may not be comparable to similarly titled measures presented by
other companies and should not be construed as an alternative to
other financial measures determined in accordance with IFRS.
Rather, these non-IFRS measures are provided as additional
information to complement IFRS measures by providing a further
understanding of operations from management's perspective.
Accordingly, non-IFRS measures should not be considered in
isolation nor as a substitute for analysis of financial information
reported under IFRS. Management believes that these non-IFRS
measures provide useful information to investors in measuring the
financial performance of Sabio for the reasons outlined below.
Management uses Adjusted earnings before interest, income taxes,
depreciation, and amortization ("Adjusted EBITDA") as a key
financial metric to evaluate Sabio's operating performance as a
complement to results provided in accordance with IFRS. The term
"Adjusted EBITDA", as defined by management, refers to net income
(loss) before adjusting earnings for finance costs, income taxes,
stock-based compensation, amortization, non-recurring items, and
severance costs.
Management believes that the items excluded from Adjusted EBITDA
are not connected to and do not represent the operating performance
of Sabio. Management believes that Adjusted EBITDA is useful
supplemental information as it provides an indication of the
results generated by Sabio's main business activities prior to
taking into consideration how those activities are financed and
taxed as well as expenses related to stock-based compensation,
depreciation, amortization, restructuring costs, other expense
(income), and foreign exchange (gain) loss. Accordingly, management
believes that this measure may also be useful to investors in
enhancing their understanding of Sabio's operating performance. It
is a key measure used by Sabio's management and board of directors
to understand and evaluate Sabio's operating performance, to
prepare annual budgets and to help develop operating plans.
Forward-Looking Statements
This press release may contain certain forward-looking
information and statements ("forward-looking information")
within the meaning of applicable Canadian securities legislation,
including but not limited to the Company's operations, growth and
sales expectations and business plans, that are not based on
historical fact, including without limitation statements containing
the words "believes", "anticipates", "plans", "intends", "will",
"should", "expects", "continue", "estimate", "forecasts" and
other similar expressions. Readers are cautioned to not place undue
reliance on forward-looking information. Actual results and
developments may differ materially from those contemplated by these
statements. The Company undertakes no obligation to comment on
analyses, expectations or statements made by third-parties in
respect of the Company, its securities, or financial or operating
results (as applicable). Although the Company believes that the
expectations reflected in forward-looking information in this press
release are reasonable, such forward-looking information has
been based on expectations, factors and assumptions concerning
future events that may prove to be inaccurate and are subject to
numerous risks and uncertainties, certain of which are beyond the
Company's control, including the risk factors disclosed in the
Filing Statement which is publicly available on SEDAR
at www.sedar.com. The forward-looking
information contained in this press release is expressly qualified
by this cautionary statement and is made as of the date hereof. The
Company disclaims any intention and has no obligation or
responsibility, except as required by law, to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
This news release shall not constitute an offer to sell or
the solicitation of an offer to buy any securities in any
jurisdiction.
Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
1 eMarketer, September
2021
SOURCE Sabio Holdings Inc.