Sabio's Impressive 43% YoY Revenue Surge in Q1 2025 Marks Continued Success

Sabio Reports Strong 43% YoY Revenue Growth in Q1 2025

Toronto, May 27, 2025 - Sabio Holdings Inc., a leading ad-tech company based in Los Angeles, proudly announced its financial results for the first quarter of the fiscal year ending March 31, 2025. The company recorded an impressive year-over-year revenue growth of 43%, escalating its revenues from $6.4 million in Q1 2024 to $9.1 million. This marks the fourth consecutive quarter of double-digit growth, in alignment with a robust 39% compound annual growth rate (CAGR) witnessed since 2020.

Revenue Streams and Business Performance

A significant portion of this growth is attributed to Sabio's ad-supported streaming revenue, which rose by 40% to $6.8 million compared to $4.9 million in the previous year. This surge outstrips the 13% forecasted expansion for the broader US Connected TV market, exemplifying Sabio's strategic positioning to capture market share. As noted by CEO Aziz Rahimtoola, 91% of their Q1 2025 revenue came from repeat customers, underscoring the effectiveness of their business model across various verticals and geographic areas.

Despite these strong revenue gains, the company's Adjusted EBITDA loss amounted to $1.6 million for the quarter, although this was an improvement from the $1.3 million loss recorded in Q1 2024. This loss was driven by recent expansions in their Sales Force and one-time IT investments aimed at enhancing operational efficiencies going forward. The fiscal strength is further highlighted by an increase in cash reserves to $3.8 million, illustrating improved financial health moving into the second quarter.

Strategic Investments and Market Expansion

Sabio's growth strategy has focused heavily on enhancing its operational framework and diversifying its product offerings. This quarter, the company launched its new Creator TV channel aimed at targeting younger audiences like Gen Z and millennials, illustrating its commitment to innovate and reach evolving consumer demographics. Partnerships with global streaming media companies, such as the distribution collaboration with Plex, significantly amplify their content's reach on an international scale.

Management believes that the continued transition towards ad-supported streaming is central to the advertising strategies of brands and marketers as they move away from linear TV advertising. This shift has contributed to strong advertiser demand and a broader client base across key verticals including telecom, travel, automotive, and technology, which are now reflected in Sabio's revenue stream.

Future Outlook and Business Strategy

Looking ahead, Sabio anticipates surpassing its record-setting sales performance from 2024, with predictions for further double-digit revenue growth into the second quarter of 2025. The focus remains on expanding its customer base both domestically and internationally while also continuing to innovate their technology stack. The robust addition of top-tier clients and securing substantial upfront media commitments highlights a promising sales pipeline.

Moreover, Sabio's tailored approach to market needs—evidenced by the impressive growth of repeat customers—ensures that their sales trajectory is becoming more predictable and resilient against market fluctuations. As global brand engagement evolves, Sabio is committed to leveraging its App Science platform to fine-tune audience targeting while ensuring compliance with changing regulatory standards.

Conclusion

In summary, Sabio's remarkable financial performance in Q1 2025, along with new product launches and ongoing strategic expansions reflect a solid framework for future growth. As the company embraces the changing landscape of digital advertising, stakeholders can anticipate continued innovation and profitability in the ad-supported streaming market.

For further inquiries, join the upcoming conference call scheduled for May 28, 2025, at 10 a.m. ET. Here, company executives will delve deeper into the financial results and future strategies.

For more information about Sabio Holdings and its offerings, visit their official website.