Revenues of US$6.4 million in Q1/2024 and gross profit margin of 59% Connected TV/OTT sales of US$4.9 million, representing 77% of the Company's sales mix Improved operating leverage resulted in Adjusted EBITDA1 Loss of US$1.3 million compared to a loss of US$2.2 million in Q1/2023 TORONTO, May 29, 2024 /CNW/ -- Sabio Holdings Inc . (TSXV:SBIO) (OTCQX:SABOF) (the "Company" or "Sabio"), a California-based ad-tech company that specializes in delivering highly targeted ads, insights, and services in ad-supported streaming to top Fortune 100 brands, is pleased to announce its unaudited financial results for the first quarter ended March 31, 2024. Unless otherwise indicated, all amounts are expressed in U.S. dollars. "While cord-cutting continues, the bigger story is the aggressive growth of Connected TV/OTT, which we're capitalizing on with our impressive 29% YoY growth in the category — outpacing the broader market and leading to market share capture within the ad-supported streaming space," said Aziz Rahimtoola, CEO of Sabio. He continued, "Our focus on operating efficiency has been aided by this shift. Sabio's Connected TV/OTT sales feature larger deals, lower operating expenses, and higher customer retention. Additionally, longer campaign lifespans in Connected TV/OTT allow us to upsell other high-margin offerings like App Science's campaign measurement AI, powered by their unique, cookie-free household graph. This innovative solution is particularly well-positioned to capitalize on the uncertainty surrounding Google's cookie deprecation. The positive trends associated with streaming viewership and our Connected TV/OTT opportunities are expected to continue throughout and well beyond our 2024 revenue cycle. Complemented with our recently announced record upfront revenue commitments and improved operating leverage, we believe Q1 will provide a springboard to record sales and profitability for Sabio in 2024." "For the second straight quarter, we continued to see material improvements in operating leverage during the first quarter as a 21% decrease in first quarter OPEX, normalized for sales commissions and bonuses, narrowed our Adjusted EBITDA1 loss by close to US$1 million in what is traditionally the slowest quarter of the calendar year," added Sajid Premji, CFO of Sabio. "Complemented by high rates of reoccurring revenue, the continued addition of top nameplates, over US$10 million in remaining upfront media commitments, and over US$15 million in political & advocacy sales orders from Q2-onwards during the 2024 U.S. election cycle, we continue to believe that Sabio will generate record sales and positive Adjusted EBITDA1 in 2024. After quarter-end, Sabio leveraged its improved operating model to execute a term sheet on a multi-year asset-based lending credit facility with a new lender to replace its existing facility with Avidbank. Subject to final credit approval and the finalization of loan documentation, the material terms of the new facility are comparable to the Company's existing one and is expected to provide greater balance sheet flexibility and stability as we drive towards continued growth on both the top and bottom lines. 1 See "Use of Non-IFRS Measures" below.  First Quarter 2024 Financial Highlights Sabio delivered revenues of US$6.4 million in Q1/2024, in line with US$6.5 million in Q1/2023. Connected TV/OTT sales as a category increased by 29% to US$4.9 million, compared to US$3.8 million in the prior year's quarter, continuing the trend of Sabio's dominant sales category, representing 77% of the Company's sales mix. Mobile generated revenues of US$1.3 million in Q1/2024, down 50% from US$2.5 million in Q1/2023. More mobile campaigns continue to shift from mobile display to mobile streaming, which is recognized under the Company's Connected TV/OTT revenue category. Gross profit of US$3.8 million in Q1/2024, compared to US$4 million in Q1/2023. Gross margin was 59% compared to 62% in Q1/2023. This decline was primarily due to marginal rate concessions to secure larger upfront deals. Adjusted EBITDA1 loss of US$1.3 million in Q1/2024 compared to a loss of US$2.2 million in Q1/2023. The quarter-over-quarter decrease in loss was primarily driven by several cost and operational efficiency initiatives implemented during the second and third quarters of 2023. As of March 31, 2024, the Company had cash of US$2.3 million, as compared to US$3.3 million on March 31, 2023. Management believes it is well funded, with sufficient cash on hand to meet its growth objectives. As of March 31, 2024, the Company had US$4.8 million outstanding under its credit facility with Avidbank.1 See "Use of Non-IFRS Measures" below First Quarter 2024 Business Highlights On March 26, 2024, the TSX Venture Exchange accepted a notice filed by the Company to implement a Normal Course Issuer Bid, whereupon the Company may, during the 12-month period commencing April 2, 2024 and ending April 1, 2025, purchase up to 852,184 shares in total, being 5% of the total number of 17,043,687 shares outstanding as at March 19, 2024. On February 29, 2024, the Company announced a strategic collaboration with McDonald's USA, through a partnership with Publicis Groupe. McDonald's will leverage Sabio's Connected TV/OTT inventory, customized audience segments, and App Science's proprietary 55 million household graph data to effectively connect with and reach the growing U.S. multicultural audience. On February 6, 2024, the Company appointed President of GroupM Multicultural, Gonzalo Del Fa as an independent member of the Board of Directors. As President of GroupM Multicultural, Del Fa plays a key role in all aspects of multicultural marketing, diverse media, and inclusive investment efforts across GroupM, WPP's media investment group. In addition to his role at GroupM, he is the past-chairman of the Hispanic Marketing Council. Prior to joining GroupM, Del Fa worked at American Express Argentina, BBVA, Hachette Filipacchi, and Editorial Televisa. Events Subsequent to March 31, 2024: On May 17, 2024, the Company signed a term sheet on a new, multi-year asset-based lending credit facility with an alternative lender to replace its existing credit facility with Avidbank. The material terms wherein, including the total credit available, are comparable to the Company's existing facility. The facility, pending final credit approval and loan documentation, is expected to close during ...