ALPS Medical Breakthroughs ETF Price & Performance (SBIO)

Also note that all figures discussed today are in U. S. Dollars unless stated otherwise. With that, I turn it over to Aziz. Thank you, Martin, and good morning, everyone. Welcome to the Q4 and full year 2024 financial call.

We are excited to report that our Rev, Reach, Engage, and Validate full tech stack approach to ad supported streaming has delivered record top line and bottom line growth. In fact, q four marks the third straight quarter of double digit top line growth translating to above 40% over the last three quarters of twenty twenty four collectively. Our teams flawlessly executed on our key 2024 objectives, which included core growth core business growth, record political revenue, growth in international markets, along with balance sheet improvement, new product launches, including our Creator TV, performance, programmatic offerings, solidifying further solidifying our app science household graph and growing that to 80,000,000 homes, and then strong all while doing delivering strong margins of 60%. And increasing operating leverage. Since the founding of the company more than ten years ago, we never veered from our belief that data rich and privacy compliant in app experiences could benefit advertisers from a targeting and insights perspective. In the decade that has gone by, the app ecosystem has expanded from not only being on your phone to being integrated into every aspect of your life. We'd like to say, you are what you are. Including on your TV, the form of ad supported streaming apps.

Sabio and its wholly owned data and analytics subsidiary, AppScience, have continued to benefit from proliferation of streaming app usage and the need insights in a highly competitive and fragmented media market. Our stickiness has demonstrated by a 9% reoccurring business model with 70% of our top customers increasing share of voice. Overall, we are extremely pleased with our execution. And how this is all coming about is really driven by our propriety household graph. And you basically well, how that comes how that comes into play, 280,000,000 mobile devices every month are in our system. Cross reference to a 10 CTV households TVs that then give us 80,000,000 validated homes. That is our household graph. And that household graph is unique in propriety. In in comparison, 80,000,000 homes relative to 30,000 Nielsen panel makes a key difference for brands such as Toyota, McDonald's, and many others. On that note, I will hand it over to Sajid to talk about our numbers a little bit. Sajid?

Thanks, Aziz. Sabio completed the fourth quarter of twenty twenty four with the best quarterly and annual financial results in its history, achieving record consolidated revenues and profitability. Our shift to a streaming sales model from a mobile display dependent model had delivered a robust 39% compound annual growth rate since 2020 increased customer retention and substantial cost efficiencies. We closed 2024 with US49.6 million dollars consolidated sales or close to CAD70 million on average exchange rates up 38% from the year before. Meanwhile, adjusted EBITDA margins expanded to close to 8% committing in $3,800,000 in adjusted EBITDA for the year close to 5,000,000 Canadian, it's our CAGR and profit margins combined surpassed 40%. The fourth quarter was the strongest financial quarter in Sabio history.

For the three months ended 12/31/2024, we generated US18.3 million in sales, up 44% from the prior year. The increase in sales was primarily driven by robust growth our asset supported streaming business and strong 90% reoccurring revenue rates. Sabio's unique capabilities to reach engage, and validate target audiences continues to benefit our political offering and our overall business at large. Normalized for US2.4 million dollars fourth quarter revenues from political campaigns Consolidated revenues grew by a robust 25% during the fourth quarter compared to the prior year's quarter as Sabio's branded business continues to fire on all cylinders. By segment, ad supported streaming sales grew 57% to 14,500,000.0 US compared to US9.2 dollars in the same period last year. Or 32% normalized for political campaigns. For the fourth straight quarter, asset quoting streaming sales once again outpaced the 16.2% growth rate for The U. S. Asset ported streaming industry at large if we continue to take market share. Ad supported streaming continues to be our dominant sales category accounting for 79% of our overall sales mix up from 73% in the fourth quarter of twenty twenty three. 5% of Sabio's fourth quarter asset supported streaming revenues came from our new international business Sabio Unlimited, which continues to pick up steam.

Generating over US1.4 million in revenues its first full year of operations. Sabio's asset supported streaming sales feature lower OpEx and predictable and sustained growth through high customer retention rates. 90% of our sales in 2024 excluding clinical campaigns and those from our new international business, came from repeat customers compared to 76% in the prior year's period. 70% of our top branded customers increased their spend with Sabio for the prior year's period, and meanwhile, 41% the brands we spent with Sabio during the year were new logos, presenting new opportunities to expand our revenue base in the quarters to come. The strength in our fourth quarter sales also extended to mobile display which grew 16% to US3.6 million dollars for US3.1 million dollars in the fourth quarter of twenty twenty three. On a trailing twelve month basis, ad supported stripping business now represents a record 78% of our sales mix we continue to capitalize on one of the fastest growing categories advertising. Within a span of four short years, we have completely transformed ourselves from a company that generated just 8% trailing twelve month sales from asset streaming four years ago. The business continues to accelerate and impressively Sabio generated more asset quality streaming sales in $20.24 38,600,000.0 US, that consolidated sales across all revenue categories in 2023.

The inherent cost efficiencies in transitioning to an ad supported streaming sales model from one more dependent on mobile display continues to drive gains in our operating leverage. For the fourth quarter ending 12/31/2024, Sabio delivered a quarterly record $2,800,000 in adjusted EBITDA while continuing to invest in our key growth pillars. Including our growing international business, and the commercial launches of new programmatic ad supported streaming, performance marketing, [indiscernible] product offerings. All of these segments are expected to contribute to revenues in 2025 and beyond. Meanwhile, our end to end technology stack powered by our proprietary app size cross screen graph and featuring several direct supply integrations continue to support strong gross margins with both fourth quarter and year end gross margins improving to 62% from 61% in the prior year's comparable periods. All of this resulted in the highest annual adjusted EBITDA gain adjusted EBITDA margins in the public company with a 2024 adjusted EBITDA profit of $3,800,000 compared to a US1.8 million dollars loss in the previous year. Representing an 8% adjusted EBITDA margin. The company used its improved cash flow during the year to pay down its debt by 1,900,000.0 ending the year with $5,200,000 outstanding under a three year $10,000,000 credit facility compared to $7,100,000 in the previous year.

Sabio also ended the year with $3,300,000 in cash on hand, up from 2,600,000.0 in the previous year. Armed with a stronger balance sheet, a more predictable sales model, increased trend product channels in geographical reach, Sabio expects continued sustainable growth in 2025. With first quarter visibility indicating double digit growth. At quarter end, we had 50,500,000.0 shares outstanding 3,000,000 options in RSCs outstanding, and convertible debt convertible into 1,740,000.00 shares at an exercise price of one dollar Canadian. Insiders continue to own 55% of the company with high alignment between our management team and the interest of our stockholders. As part of our insider ownership group, our founder and CEO, Azizra Hemtula, holds 46% of the company. As detailed in the MD and A, during the company's building years of 2019 to 2021, be voluntarily elected to receive reduced and sometimes irregular compensation. In recognition of this, the company forgave a $936,000 loan to mister Rahimtula amount that is less than the difference in compensation he was entitled to receive during that period. This forgiveness also reflects his early stage financial support of the company and his leadership his transition into a public entity. Management continues to believe the current market valuation of our stock does not reflect the fundamental strength and growth potential of our business.

And during the fourth quarter, commenced modest share repurchases under our normal course issuer bid program, prices between 42 and fifty cents Canadian. While reinvesting within the business remains our bias capital deployment, We believe such opportunistic repurchases will provide attractive return to our shareholders demonstrated by these purchases being significantly below current market prices. Back to you, Aziz.

Thank you, Sajid. Before we move into the q and a portion of call, I wanna take a moment to reflect on the tremendous progress we've made Twenty twenty four was a record breaking year for Sabio. With the strongest quarterly and annual financial results in our history. We delivered 38% year over year revenue growth, achieving 49,600,000.0 consolidated sales, and expanded our EBITDA adjusted EBITDA to 3,800,000.0 demonstrating both top line momentum and improved profitability. Our ad supported streaming business continues to accelerate, now representing 78% of our total sales mix, and we're seeing strong customer retention. This success is a testament to the strength of our strategy, the value of our proprietary data and technology, and the execution of our incredible teams. With a stronger balance sheet, expanding product offerings, and geographic locations, continued market share gains, we are well positioned for sustainable growth in 2025 and beyond. With that, let's open up the floor to questions. Back to you.

Thank you very much, And speakers, I I believe you are turning on your videos now.

That's right.

Thank you very much. The first question we have one sec here, is from Daniel Rosenberg of Paradigm Capital, and, you should be available to speak now.

Thanks. Good morning, Aziz and Sajid. Congrats on a strong year end.

My first question was around the international expansion. I know you made a few, some minor hiring in The UK market. So I'm just wondering about what degree of investment you plan on doing there, when you think about international expansion, or is it more broad based on that?

Good morning, Daniel. Thank you for your question. At this point, what we're doing is, we are we've not only hired only in The UK, but we also hired in Turkey. And our view is that we are still in the early stages of the process. We're dipping our toes into the international market. We're seeing a lot of great momentum overall. And, but at the same time, we have a huge opportunity here in The US, the biggest ad market in the world. And so, you know, it it really is, as always, a balancing act. While we wanna see while we see the opportunity, acceleration opportunity, in international markets, we see a lot of opportunity here. So yes, we are gonna continue adding, but it's gonna be very targeted and precise in terms of measured in terms of our, resource usage. Anything you wanna add to that for international markets?

I think that would that was well said, Azade. I would just like to add that the international unit is is already profitable. You know, there isn't a lot of overhead required. The good thing about our business is that we're able to leverage our North American and then tech stack to facilitate these UK campaigns. And so we're able to leverage technology that already exists to fulfill these campaign requirements.

And, Daniel, you know, as we've talked about in past calls, Creator Television, which we just launched, is now available globally. Our channel, our exclusive channel, and that is also gonna be an entry point not only as it relates to the European market, specifically, we've had a fully owned subsidiary in India since 2016. And that subsidiary is positioned well for us to spend we have engineering, data science, and operations out there in India. So we're already you know, preset to go out and start expanding in the largest market in the world, which is one point in India, which is 1,300,000,000 people. So we're excited about that opportunity as well, and it's just a matter of you know, leveraging Creator TV and some of the other assets we have to start expanding out there.

Appreciate that color. I guess turning more domestically or US ly. Know, I heard in the ecosystem a bit of uncertainty, obviously, with tariffs and trade wars, etcetera. And I think about so many, you know, key advertising verticals like automotive you know, what are you guys seeing on the frontline when it comes to budgeting? And how you're thinking about your outlook?

Well, thus far, Canada is not the fifty first state, and, you know, there's a lot of noise being made, in Washington. Unfortunately, our advertisers are not you know, at this point, being affected by it. We have, diversified our verticals. Automotive, at one point, was our top vertical. That was back in, 2023. Now we've diversified to where telco has become one of our largest verticals followed by advocacy and political. And and, you know, and then you have quick service restaurants and automotive, playing additional elements there. And so that is to tell you that we've diversified a lot. No one is immune to the issues that are happening, know, the questionable communication and strategy that's happening out of Washington. [indiscernible] we are positioned well. And as it relates to being positioned for next year's midterm election cycles, we're positioned incredibly well. So not only are we gonna benefit from con from a diversification this year, an acceleration, but we're gonna benefit next year. Because the turmoil that's in DC right now means a lot of money is going to be flowing into the political midterm election cycles, which we are positioned well in. So, you know, while, we haven't seen anything yet, we do think there will be some effects in q three, q four, if this tariff situation is not dealt with properly as Washington should be doing. [indiscernible] anything That that was well said, Aziz.

I think that, you know, what's, the differentiate ourselves this year going into 2025 is that we have a more predictable sales model We have an a a 90% reoccurring customer rate. Right? So, you know, we're able to be more proactive than reactive. And so, if there are any headwinds coming, I'm sure we'll be able to adjust accordingly. And big picture, we are outpacing the market and taking market share. If there is an economic downturn, we still don't we still feel that we're we're very well positioned to keep doing so. K. Good to hear. And terms of that predictability, can we dive down a bit deeper Could you help us understand just how much visibility you have? Like, what gives you the confidence you know, to look more deeply in the year? Like, are these locked in contracts today? Is it the number of leads you have? Could you just help us understand how you see the pipeline?

Yeah. So I think that I can I can start off? But I think that, you know, looking at our pipeline for q one, for example, we're we're already seeing double digit growth. We exited 2024 if you exclude election campaigns with a 25% growth in our business, and we're seeing similar trends take hold in the quarter. We're seeing strong traction in Q2 already. I think that know, there is obviously, someone else with this current tariff situation that could change the calculus. But right now, seeing a lot of positive signs. Taking a step back, we also have some upfront media commitments as well. We've been able been able to grow our commitments over 2024. There'll be more information coming out shortly on what that number is, we're seeing growth in that category as well. So all of that plus a 90% reoccurring customer retention rate, you know, bodes very well for our predictability.

And what we're also finding, Daniel, is our secret sauce, and I probably should have been a little bit more clear in my presentation earlier, that ad science graph is the key differentiation here. Is the fact that, you know, when we we have a 80,000,000 household reach in terms of insights and understanding. And as the market continues to become more fragmented, and diverse, which 48, 49% of The US population is now diverse for sorry. 12 to 24 year olds, and we have a deeper understanding there. It allows us to have a unique position and and we're filling a need. And that's what advertisers have told us, and that's why to Sajid's point. Now that's not to say we're immune to, you know, the tariffs and, you know, the things that are potentially gonna happen. And we think that if they are gonna manifest, they will manifest themselves further out in q three, q four. But thus far, as it relates to q '1 and q '2, we're not seeing any any effects of that yet. Not to say we won't.

Understood. Understood. My last question was just around the profitability of the company. So you guys hit kinda record numbers as a public company. But obviously, you're you're confident in the core business. The differentiated positioning that you have. So just wondering from an investment perspective, like, this a good baseline to think of the company from a profitability point of view? Are there incremental investments, or do you see yourself increasing the margin profile? Just how are you thinking about balancing the growth versus investment?

I think this year, we're we're really not interested in optimizing our EBITDA margins. This year is you know, we do believe there's gonna be some investments. But from a profile perspective, this is where we do believe is a good baseline, and and we can continue to kind of operate from here. We do think that as it relates to next year, that's where you will start seeing additional margin gains. This is the year the way to think about our company is in the off election years, we will perform well.

And as Sajid pointed out, our core business was up 20 plus percent. In the last, you know, few quarters of the of the year. And, and so we will continue in the core business, but we also need to invest and get ready for next year. Because once again, next year is going to be a bloodbath of money again for midterms and political cycle. And so just give you some context, we're an LA based company. The last time there was an LA City marriage race, a hundred and fifth a hundred and $30,000,000 was spent. Just on the LA City marriage race. We have a governor's race of California. We have midterm elections, which is, like, senate seats and house seats. So, you know, our objective has always been and you could see it with our growth rates. We grow 30 plus percent in off years. We grow 60 plus percent in political years. So that means we have to prepare and get ready what we believe is gonna be another incredible year while we're profitable this year, while we execute on our growth priorities this year.

Sajid, anything you wanna add to that?

No. No. That that was well said.

Thanks for taking my questions, and, congrats again on a strong, finish to the year.

Thank you, Danny. Appreciate it.

Thank you very much. And our next question is from [indiscernible] from Atrium Research.

Guys, congrats on a good quarter here. Thank you. Thank you. Just a couple questions here. So maybe if you could tell us a bit more about how your comfort levels with the balance sheet given the convertible notes come due in in August? Are you guys comfortable with the balance sheet and and, you know, the cash flow cadence here?

Yeah. Yeah. It's it's a good question. But I think Thank you for your help, Thank you for your question, Nicholas. Appreciate the and thank you for joining us. And I know, Shadi, will will take that. Sorry, Go ahead.

Perfect. Yeah. No. It's a it's a great question, and I think that, we're we're in a lot better situation entering this year than we were the year before. Not only do we have higher cash reserves, but we have almost $2,000,000 of less debt. So so we feel very comfortable in our ability to to pay back this convertible note quite easily, which is by the way, a denominator, Canadian dollars. And we've seen a favorable move in the FX rates since we issued that note. Back in 2023. So, it it we see no challenges with us being able to pay off that note in full. When when the when the time comes.

Okay. Perfect. And then the other question I had was about the mobile segment, and we've seen two quarters here of of positive growth kind of breaking the the trend we've seen the last couple years. What's driving that? And what should we expect from the segment going forward?

So despite our best efforts, you know, to focus in on just CTV, OTT, Mobile continues to grow, and here's why. Basically, our advertisers enjoy using, mobile from a, lower funnel tactic. Perspective. So we will you know, our focus is CTV OTT is higher funnel, and we have also a new performance product which is going to be using more mobile. So you're gonna see you probably, you know, will see some growth in mobile because of the fact that while we use CTV OTT at a higher funnel, the cross reference capability we have and cross targeting capability we have at that IP level and that you know, goes back to the household graph is rich. And it's effective. And that's why our advertisers continue wanting to use mobile overall. And we do think that you will see some growth in mobile because our performance business as it continues to, to accelerate, it will use more mobile than it did in the past. So we'll we'll be able to grow both segments simultaneously. Is our expectation. We've hit a low in mobile and now, you know, you will start seeing you know, our focus has always been to as Sajid mentioned, we had less than 8% when we you know, in in mobile when we went before we went public during the time we went public.

And now it's 70% plus. And so we can then continue seeing CTV OTT continue growing while the mobile starts taking you know, starts ticking up again.

Perfect. Okay. Understood. And then the last question here is just about Creator TV. What's been the response so far from advertisers, and and when can we of expect a revenue contribution?

Advertisers are beyond excited. They like the opportunity of something unique in the marketplace. It's solving a need they have, and the need is they need to reach these younger audiences. They need to reach diverse audiences. And they need to have a company that understands insights and analytics in helping them reach it. And so, you know, we're really checking all those boxes off. And as it relates to contributions, this year is just about, you it's primarily about scaling the business, scaling the the creator television platform. We have distribution, obviously, as we've discussed with Sling. We we secured distribution with Plex. There's additional announcements we're gonna have. And, really, you know, contributions, I wouldn't expect until, next year in a in a decent way. I mean, this year is really just about scaling the reach of that platform, then the next step is going to be to double down and starting to really push viewership there. So there's still a lot of work in progress, but our advertisers are once again excited about it. And one of the things you should also remember, Nicholas, that this is now we have first party data. Going back into our household graph.

Not only have we had rich data that has flowed through to us, through other publishers and data, you know, alliances we have, But now for the first time in history, we have first party data. That we are now integrating to our household graph. So it's just gonna make our complete offering even, more effective.

So Satya, anything you wanna add to that in terms of timelines for a creator? Television?

No. I think that that's well said. I think that, you know, one thing that, is also kind of an intangible is that having Creator TV and having your own own and operated channel is also enticing to the brands that we that we work with on the, DSP side. I think that, know, having Clear TV has been a a differentiator for us along with AppScience and why we're able to secure more media for commitments in 2025 than we do in 2024.

And also, Nicholas, one other thing I'll add is if you're a politician and you're running for races, you're looking for that younger audience. And as, you know, as proven by the last election cycle, the the old paradigms of media marketing are changing. And the need to get to these influencers is critical. And so, you know, we once again are providing a solution that not only our brand advertisers, are eagerly, interested in participating in, but political and advocacy advertisers as well.

Okay. Makes sense. Those are all my questions. Thanks for the time, guys, and and great presentation today.

Thank you. Appreciate it. We have some questions here from Gabriel Lung of Beacon Security. He was not able to make the call as he was traveling, and I will read these questions out on his behalf. Have there been any notable changes to to direct advertiser demand or ARPU over the past couple of weeks that could persist into coming months?

We, we've done some analysis, and I'll let Sabio jump in here. But done some initial analysis. And thus far, we have not seen any degradation of demand or anything that is now slowing down. Thus far. Sajid, you wanna jump into that a little bit more?

That's correct. Yeah. We're not seeing any change in the velocity Right now, things are are still moving ahead and light ahead nicely. Obviously, there are some uncertainties in the broader economy. But as of now, we're not seeing those signs.

Alright. What sort of contribution do you anticipate your newer offerings like programmatic and Creator TV to add to the top line?

We're taking more of a pragmatic approach these new products in 2025. We're modeling in single digit percentage contributions to our top line, but there is high potential. We've been told by our brands that we're leaving dollars on the table. By not having a programmatic offering. We've already seen how how it having our own own inventory in Clear TV is benefiting our media commitments. Both, mind you, have big potential going into 2026. Most election spending tends to take place programmatically and for the first time, we'll have an offering to capitalize on that. Where we see more of a near term win is international. Around 3% of our 2024 sales came from international. We could have very well more than doubled that in 2025.

And one of the things that I I think, you know, I'd like to add too is if the economy starts slipping, you know, some of the consumer sentiment numbers are starting to look not as rosy as it was last year. Performance is gonna be a bigger aspect of what brands are gonna be looking for. And so we're uniquely positioned now not only as it relates to our brand business, but now our performance business. And so any any, you know, downshift in brand will usually mean an upshift in performance. And we also believe that know, to Satya's point about international growth, that the European economy seems to be really starting to to recover quickly, which is a great diversification for us. Along with Asia and Middle East. So, you know, we have done our best and continue to diversify our business, and we see a lot of opportunity there. But there's a lot of upside huge upside in all of these vectors in in a big way.

K. What sort of qualitative and quantitative feedback have you received from content creators and distributors from Creator TV?

It's still fairly early. You know, we are starting to see know, the numbers are fairly small in terms of viewership, but we are seeing growth in viewership overall. But, you know, this you know, in all intents purposes, we only launched probably a month ago, a month or two ago. And so fairly early. We expect to see some, substantive information, by year's end. But we're super excited about the opportunity it presents. And thus far, once again, albeit small, viewership continues to grow.

Okay. How are you planning for the more difficult difficult year over year comparables notably for q three and to a lesser extent Q4. More directly, given your current pipeline, do you anticipate being able to report year over year revenue growth in the second half of twenty twenty five?

Yes. It's a it's a good question. I think that is a mentioned before, our business in Q4, excluding election spending, grew by 25%, and we're seeing similar trends in q one. So we're feeling quite optimistic about being able to show Q4 growth this year, with that same kind of growth levels, being maintained. Q3, a bit more challenging. Entering into it, though, with a lot more tools in our belt than we did. 2023. We have a more predictable sales model, as I mentioned. 90% reoccurring revenue rate. We can be more proactive than reactive. We have expanded geographical reach. International contributed very little to our q three revenues in 2024, We believe that we believe that that we can at least double that this year. We have a more diversified product model. Programmatic will contribute as well as performance marketing. Are already seeing growth in the media upfront commitments through App Science and Creator TV. Being our differentiators. And our brands are excited to work with us for those reasons. Said, we we are facing somewhat unchartered waters. Some of our lower dollar verticals like government, are being impacted by the tariffs. It's not really noticeable right now, but should it extend to other verticals, it may present some near term headwinds.

But that said, our sales model was more predictable, and we're more diversified than we've ever been. Automotive has historically been around twenty twenty twenty to 25% of our sales mix. Now it's around 15%. And and, again, as I mentioned before, big picture we're outpacing the market. We're taking market share. If there is any sort of downturn, we'll feel we'll feel that we're very well positioned. Continue to be able to to to do so going forward.

And and I'll, you know and and, you know, once again, to clarify, we had total of 5,000,000 in q three of political spend. So it wasn't significant It was decent enough, but it wasn't significant. And you know, in preparation for this q three year to year comp? We did do some hiring at the end of last year. Added additional not only did we add new products, we added new sellers. And so our expectation is that we will be able to meet, you know, those q three challenges. Now having said that, this is in a unique backdrop with, obviously, tariffs and a lot of uncertainty coming out of Washington. So that's the only thing. We've as relates to our strategy, we've been planning this for a while, and and and, you know, execution is is gonna be proven as it relates to q one and q two. It relates to q three, you know, that remains to be seen. If the tariffs start having a really big effect on spending, after spending. That's the only thing that we're unsure about at this point, but we're confident about our strategy to to beat those numbers.

Thank you.

That completes the questions from the analysts, and I will now begin, reading out questions from that are typed in through the Q and A from the audience. Great. I believe this coming question was largely covered. And you can add as needed to it. Can you provide some more color on how you will keep momentum and growth in a non US election year?

Well, I think Sajid alluded to it We're doing it. And I think, you know, once we finalize our q one numbers, proof's in the pudding. And so what it is is we have a you know, our our objective was twofold. First of which is add new sellers, add more sellers, which we did in q three, starting q three of last year. That allows us to get out to the marketplace. We don't have an issue with our product. We have an issue with getting out and evangelizing your product. And as Sajid talked about, have a 9% recurring revenue model. So the minute we lock a deal in, we keep it. And we grow it.

The second aspect the second strategy of our of of our strategy here was, was product launches. Providing our sellers and and, you know, our brands with new opportunities to increase their share of voice, wallet. Sorry. And we did do that. We as Sabio mentioned, we launched our performance product. We've launched a programmatic product. We also have the creative television, opportunity. And so, that's really it. Our objective was we have been planning on '25 since early twenty four. We knew '24 was gonna be a great year. We said that to the market at the end of twenty three. We're gonna execute in a big way in '24. That gave us the opportunity and and the means by which to start preparing for '25. And so, as we will demonstrate in q one, and Sajid talked about double digit growth, at the minimum, you know, that is really that's the double digit growth we're already seeing. We're gonna see that, we believe, in q two. As it relates to q three, q four, that remains to be seen if the tariffs are gonna have any type of, corrosive effect. But we're feeling good about our strategy, and our strategy is exactly that.

Products, more products, more sellers, and, retaining our key customers.

Thank you.

The ad supported streaming market is becoming increasingly competitive with major players like Amazon and Google expanding their presence. How does Sabio plan to maintain and increase its market share and customer loyalty in the face of this competition? And what are the key differentiators that will allow Sabio to compete effectively.

Great question. We're frenemies with them. Other words, they are not pure competitors. They're actually allies. They are gonna be know, we're having conversations with all these platforms about creator television. We're having conversations about all these platforms about, using our data and analytics capabilities, and at the same time, we compete with them for some of those ad dollars. So it's a pretty big it's a $48,000,000,000 industry. Overall, projected to be $48,000,000,000 in a matter of two years. There's a lot of money going around. And so, you know, we're fortunate in our going back to the differentiation. That App Science household graph, which I keep talking about, we've been building it since 2016. It is really a differentiated product enough so where a brand like Toyota, for example, uses us for analytics and insights, not just helping them reach audiences. It tells you the effectiveness of that, app science graph. And, you know, we're we're super excited about as I mentioned in my, comments earlier, we've further solidified our graph. We went from 55,000,000 homes to 80,000,000 homes. And the richness of that graph continues to grow. And that's a key differentiator. Especially when you have Nielsen that has a 30,000 survey panel.

You know, brands and agencies are looking to us to be leaders in this space, not Amazon. For insights and understanding. But to Sabio and AppScience. So that's that's really how we continue to be looking at our differentiation.

Thank you. How is Sabio planning to increase its EBITDA margin? Percentage?

We, at this point sorry. I'll let you get in here, Sajid. We're not looking to optimize our EBITDA margin this year. Have a lot of growth. As I mentioned, $4,849,000,000,000 dollars of opportunity. And next year, we also have a huge political cycle. So our focus is not initially optimizing growth this year, Our EBITDA margins naturally move up in election years. As the revenue moves up, more falls to the bottom line, and and Sabio will get into the details of that. That's where the efficiencies and EBITDA margins will continue growing is as we scale this company up, as we've said it, since I started the company, when you start hitting that 50,000,000 inflection point, more drops it to the bottom line, and that will continue being the the process where our EBITDA margin continue increasing. Sajid?

No. I think that that that was well said. I think that around that you know, that that $50,000,000 mark, you're seeing economies of scale. And that's why you're seeing that EBITDA margin double or more than double from our last profitable year in 2022. To 2024. You know, as far as, you know, the expansion of margins, I think, he's hit it hit hit hit the, hit it right on, I think, in in 2025. We're investing in programmatic. We're investing in performance. We're investing in Creator TV. We're investing in international. We're balancing that with while being profitable this year. Maintaining our our our current levels of margin. But I think in next year, a great opportunity for us to expand that margin, with those with that added revenue coming in.

And and just give you some context, we're right in the middle of the stack of our US and and Canadian peers as it relates to EBITDA margins and overall margin. And we do see an opportunity. I mean, you have the trade desk that is at 24% margin profile. That's a, you know, $5,000,000,000 huge company, right, scaled up. We believe we will as we continue scaling up, we can move to that. To that goal is you know, to that that, that objective there of getting to the top line of that margin number. But it's gonna simply mean just increasing our overall revenue. That's it. As our increase our overall revenue more falls in, but we are from where we are today relative to even those scaled companies, ahead of where they were.

From a margin profile. Because we're a public company. They weren't public at the stage where we're at. And so know, we're excited. We see the opportunity ahead. We wanna be profitable. We wanna grow this company. In a profitable, you know, profitable high growth opportunity way. That's that's how we see it.

Thank you. For international markets, how is the market and the competition? And how are the margins in international markets?

Without, you know, giving too much detail because, you know, we have competitors who also look at it it's been very positive. In general. You know, profiles international markets the margin profiles are not as great as The US margin profile, but that's simply because we haven't built our household graph there yet. Our AppScience household graph will probably start being worked on. Is already being worked on for the international markets. As we what we've seen is our efficiencies are not simply in serving out ads. Our efficiencies are when we can provide data and insights backing up how we're reaching those consumers and unique offering in those markets. And so we do expect that margin profile to increase in the coming years as we put more resources into international markets. But we're seeing you know, tremendous opportunity, and it's still early Streaming TV while being used a subscription basis in international markets, ad supported streaming has not been used.

In a big way. And so we feel like we're getting ahead of the curve. In a big know, in a huge opportunity.

Thank you. Can you speak about the benefits of being listed in Canada versus a US listing? And are you considering any share structure options such as a revert a reverse split in order to raise your share price?

Roger, you wanna take that? I think that, you know, there there are many many benefits to being on a Canadian market, as opposed to a US market, especially at our size. So number one, the overhead for being on a Canadian exchange is a lot lower than it would be on a US exchange. So we'd rather use that money to funnel back into investing in our business, investing in our products rather than some on some compliance costs. So I think it's a it it's a lot better bang for the buck in that respect. So number two, have a very knowledgeable investor base here in Canada. And the there's one that's is well in The United States, but you see in The US is that we'll be up overshadowed by a lot of the the bigger players. And then sometimes it's better to be a bit of a bigger fish in a smaller pond. As far as, you know, going on a US exchange, there may be a time for it in the future. But as long as we're getting good traction in Canada, as long as we're, you know, seeing that our results are being recognized, we're happy.

Right? It's a it's it's it's a it's a strong market. It's, we we we are we are now getting getting the recognition our results. And so as far as doing a reverse split, no. We were to go on a US exchange sometime in the future, maybe that might be reason for doing so, but as as of now, that's not on the agenda. Thank you.

With such a strong balance sheet, what is the capital allocation strategy for both the short term and going out three to five years? For example, how will balance sheet reduction with acquisitions and growth prospects?

So our our view on acquisitions are, well, you know, we haven't seen any that's out there that we're super excited about, but you know, there certainly could be an opportunity out there where we really see the opportunity for a balance sheet improvement is to have more, to really focus on operating leverage. And what I mean by that is when you have a stronger balance sheet, you can negotiate better upfront commitments for some of the supply costs we have. And the expansion as it relates to, you know, expansion of creator television. As creator television expands, our efficiencies increase. And so, you know, our real focus is and then, of course, we have ever increasing storage cost because all the data infrastructure gonna have to be looked at. And how do we streamline that a little bit more? So with the balance sheet, we really look at it as an opportunity to to really focus in on operating leverage. How do we get more efficiencies in our organization versus, you know, we really believe in looking internally before externally. We need to really optimize our company even more. And get even more efficiencies before we think about acquisitions to bring something in.

Because we see a lot of opportunity. We've done this all organically. Our growth rates our growth has all been organic. And, we really enjoy the organic approach here, and we think that with the additional investments, it's gonna allow us to really accelerate our approach and our mission even more so. Sajid, anything you wanna add to that?

No. I think that that that's well said. I think that, you know, seeing a lot of strengths in our business through our balance sheet. We're already being able to negotiate better contracts than we had in the past. We're being able to open up our windows to more suppliers. Than we have in our past as well. I think that, you know, it's it's it's it's it's and our debt load is also very manageable. We'll able to reduce our debt load by by close to $2,000,000 over the last year. And, you know, that alone is creating more than enough space for us to pay off that convertible debt later on this year and still have ample room left. And so I think that you are right that our balance sheet has never been in better shape. Aziza's right that you know, m and a, while it's enticing, it's not always a cure all, especially when you have so many opportunities to invest in organic growth as we do.

Thank you.

Since there is huge recurring revenue can you shed some insight about customer concentration?

Yeah. I think that, you know, we never had we we haven't had a this diversified of a of a of a sales mix in our in our in our history. If you look at the the brands that spent with us in 2024, not one brand exceeded 15% of our sales mix. You know, it's it's very well diversified. And I think that between the ad and new logos as well, 41% of the logos that spend with us in 2024 were new logos. So that's sort of new opportunities for us to land and expand. Going forward. And and as I mentioned earlier, we've diversified. We had you know, at one point, our highest, category was automotive. Which is great. But we've diversified outside of automotive So not only are we diversified from an individual brand perspective, but from a category perspective. And then you add to it a geographic perspective. So we are derisking every aspect of our business, we can with this idea of diversification. And then you add to it product mix. So, you know, while we are heavily still today focusing on brand business, we're now getting into performance. We have, you know, the career television opportunity.

So we are really and then of course, there's AppScience, which is also, generating, some opportunities in cash.

So we really are diversifying every aspect of our business overall as we continue to move upstream.

So increase, you know, operating leverage, increase margins, diversify is really our strategy. As we continue getting bigger.

Thank you. And for the final question here, and if there are any other questions, audience, please input them into the q and a. And for the final question for now, are there any key hires you are looking to make in the next coming quarters?

Well, we just disclosed we'd, made a key hire in our EVP of human resource, that just came on board. He was actually chief staff at ABC News, someone who I've worked with, in the past. Outside of that, we feel like we have a really strong team overall. We don't feel the need to make any major key hires. We believe that have the right leadership in place, and now we just need to you know, continue adding resources as it relates to sales apparatus and and you know, sales support. So we don't see a lot of big hires that we need at this point to continue scaling this business up to a you know? We think that you know, we're already a seventy million Canadian company. We didn't get into a hundred million. We have the team it takes to do that. So and and beyond. So we don't feel like there's a need. Areas we're deficient in at this point.

Thank you. Can you quantify in terms of absolute dollars as opposed to margins of the amount of additional SG and A investments you're planning to make in 2025?

Yeah. We so, you know, part of those investments, you know, will be dictated by market developments as well and and how this, you know, the economy reacts to these tariffs and how the business reacts to what our brands are facing. And so I think it it it would to to be you know, pragmatic, I think it's, we're not gonna committing to a firm dollar at this point in time. A lot of it is dictated by the the business and how well it performs and you know, if we're over shooting our our our our our projections in 2025, we may invest more in our sales apparatus. Likewise, if things contract, may adjust that accordingly.

And and sometimes investments don't initially there's an outlay of cash, there's a savings component that goes with it. For example, as we're implementing more AI capabilities within our organization, there's efficiencies that will take place. As it relates to how we sort data and how how much of that data we store. And so while, you know, it's hard to put a number in, sometimes that is offset by the actual savings that will take place. At the same time. So, you know, it's hard to give a specific number or need, but, you know, like Sajid said, that, you know, we're addressing and looking in. We're always keeping an eye off eye on this idea of the EBIT wanna continue being a profitable company. We've been profitable four out of the last five years. And that is you know, we have no interest in changing that. Parameter. We enjoy being a profitable company, and that is really our focus overall.

Yep.

Thank you very much. There are no further questions at this time. I turn the call back over to the presenters.

Okay. Well, thank you. Appreciate the time. And, you know, once again, as we talked about, our investment summary, unique value proposition in strong mode. Our app science capabilities along with now our creator television and our overall text stack is really the key differentiation in a highly competitive market. It's a high growth and profitable business. As we've talked about, it's estimate some estimates have it at 48 to $49,000,000,000 in the next two years for ad support streaming. Streaming will continue growing. Ad supported streaming as linear TV and cable continue to to collapse. And and, you know, lose viewership. And then finally, landscape and opportunity is incredible. And so our long term trajectory is not only just based off of US expansion, as you've heard. It's it's based off of global expansion. And so, you know, we have no limits in the future of where this company can go and and really are enjoying be part of the Canadian marketplace as Sajid talked about and and continue growing. Within that ecosystem. On that note, thank you all for joining us, and thank you, Martin, for hosting this call.

This concludes today's conference call. You may now disconnect.