We are pleased to announce that Sabio Holdings Inc. (TSXV: SBIO)(OTCQX: SABOF), one of the leading providers of over-the-top ("OTT") and connected TV advertising platforms that is validated by performance, has announced its unaudited financial results for the third quarter ended September 30, 2023. All amounts are expressed in US dollars unless otherwise indicated.
"Despite the challenging comparables to last year, which were boosted by the 2022 U.S. Elections,. Our CTV/OTT business continues to remain strong during this mid-term election cycle where Sabio's topline growth clearly outpaced our key peer group," said Aziz Rahimtoola, Chief Executive Officer of Sabio..  The CTV/OTT revenues for Q3/2023 were up 29% compared to Q3/2022, as we continued to see strength across several verticals, such as CPG, finance, and quick-service restaurants, as well as non-political and advocacy spending.".  At the end of the year, Sabio's geographic, seller, and customer concentrations are more diversified than they were at the beginning of the year.  Our Company expects a sequential step-up in its fourth quarter revenues as a result of a newly optimized cost structure and a diversified CTV/OTT business in our Company's history.. In addition, the return of political and advocacy spending in 2024 is expected to lead to material growth and, coupled with the optimized cost structure, will result in meaningful gains in operating leverage as a result of the return of political and advocacy spending
In addition, the return of political and advocacy spending in 2024 is expected to lead to material growth and, coupled with the optimized cost structure, will result in meaningful gains in operating leverage as a result of the return of political and advocacy spending
"We are pleased to have delivered positive Adjusted EBITDA1 despite pronounced declines in political advocacy spending over the quarter and category-specific events, such as the auto-workers strike, in the quarter," commented Sajid Premji, Chief Financial Officer of Aviva..  "We look forward to implementing our cost and operational initiatives, as outlined in our press release dated October 30, 2023, which we estimate to yield close to US$4 billion over the next few years.It resulted in annualized savings of $0 million, which had an immediate positive impact on the economy. It is a testament to our ability to rapidly adjust our operating infrastructure in response to changes in market dynamics that we have been able to quickly capitalize on the benefits associated with these initiatives.  As a result of the initiatives, Q3/2023 operating expenses were reduced by 12% when normalized for sales commissions compared to the previous year's period, and by 18% when normalized for Q2/2023 operating expenses.  Over the course of 2022, Sabio has already secured over US$10 million of non-political, upfront, endeavor-to-spend commitments, representing close to 25% of the annual revenue for 2024..  It might be interesting to note that the company had not secured any upfront commitments by the end of 2021, ahead of the 2022 US election cycle, and went on to see record revenues in 2022, driven in large part by the US midterm elections of 2022.. During the lead up to next year's presidential election, political and advocacy spending is once again on the rise. With the upcoming presidential election cycle, we are well-positioned for material Adjusted EBITDA gains in 2024, as we are benefiting from greater diversity in our sales mix, strong gross margins, and a lower break-even point as well as a stronger operating leverage.
With the upcoming presidential election cycle, we are well-positioned for material Adjusted EBITDA gains in 2024, as we are benefiting from greater diversity in our sales mix, strong gross margins, and a lower break-even point as well as a stronger operating leverage.
Highlights of the third quarter of 2023 in terms of financial performance
See the section below titled "Use of Non-IFRS Measures" for more information
Business Highlights for the Third Quarter of 2023
Following September 30, 2023, the following events will take place:
1 Refer to the section below titled "Use of Non-IFRS Measures" for more information 
The following changes will be made to Issuer's foreign private issuer status in the near future:
It has been determined by Sabio that at the end of June 30, 2023, it no longer qualifies as a foreign private issuer ("FPI") under U.S.. Due to the amount of Sabio's securities held by United States residents, the company's securities are subject to securities laws. In order to regain FPI status by June 30, 2024, management has enacted an action plan with the intention of regaining the status by the next testing date..  Sabio is not expected to become a reporting issuer with the Securities and Exchange Commission as a result of the loss of FPI status at this time, however, if the Company is unable to regain FPI status in the future, such loss may make it more difficult for the company to issue securities in the future.. Despite the fact that the Management believes that the Company will be able to regain FPI status as of June 30, 2024, there can be no assurance that the Company will succeed in its endeavors.
Despite the fact that the Management believes that the Company will be able to regain FPI status as of June 30, 2024, there can be no assurance that the Company will succeed in its endeavors.
Under Sabio's profile on SEDAR+ at www.sedarplus.ca, you can find Sabio's interim consolidated financial statements, including the notes to these financial statements, as well as management's discussion and analysis ("MD&A") for the three months and nine months ended September 30, 2023, and September 30, 2022. 
A look ahead
In spite of the fact that comparatives with the U.S. in 2022 are challenging. While there was a material decline in political and advocacy CTV/OTT expenditure from the prior year's period during the election cycle, the Company continued its expansion into the Connected TV/OTT market by delivering 23% revenue growth in this category for the nine months ended September 30, 2023.. Our core, non-political/advocacy CTV/OTT business continued to gain market share during off-election cycles, increasing 59% for the nine-month period compared to the prior year despite the decline across several verticals, such as CPG, finance, and quick-service restaurant. This has offset the decline in some ways..  The majority of Sabio's CTV impressions delivered are acquired directly through Vidillion's acquisition, making Sabio one of the most direct supply options among OpenWeb platforms in the CTV/OTT space, and supporting strong gross margins on Sabio's CTV/OTT campaigns as well.
  The majority of Sabio's CTV impressions delivered are acquired directly through Vidillion's acquisition, making Sabio one of the most direct supply options among OpenWeb platforms in the CTV/OTT space, and supporting strong gross margins on Sabio's CTV/OTT campaigns as well.
The company also reported that approximately 78% of its consolidated revenues were generated from repeat customers during the nine months ended September 30, 2023, as Sabio retained 90% of its top 20 customers, thereby stabilizing its revenue model and gaining cost efficiencies, as well as improving customer satisfaction.. Moreover, we continue to see our customer mix become more predictable and less transitory as time goes on. Approximately 22% of the revenues generated by Sabio in the nine months ended September 30, 2023 were derived from top logos that had not previously spent with us, which further diversified our sales mix.
Approximately 22% of the revenues generated by Sabio in the nine months ended September 30, 2023 were derived from top logos that had not previously spent with us, which further diversified our sales mix.
Even though the macro headwinds impacting the overall advertising spend were noted in the third quarter, Sabio was able to generate Adjusted EBITDA1 profitability for the three-month period as a result of cost and operational initiatives that were implemented to optimize our operating infrastructure.. As we enter not only the strongest quarter of the year, but also the most significant year of the year, the 2024 United States Election, management remains optimistic..  The election cycle is just around the corner.  Following the quarter-end, a number of category-specific events, including the auto workers strike, which negatively impacted performance in the third quarter, were resolved in a positive manner.  Prior to 2024, Sabio has already secured commitments worth more than $10 million in non-political, upfront undertakings to spend, representing close to 25% of Sabio's estimated revenues for 2022.. In comparison, during the fourth quarter of 2021, the Company had not yet secured any upfront commitment for 2022 - a year in which the Company's revenues eventually reached a record high, propelled by the push of the U.S. economy. Elections for the midterms are taking place.   During the lead up to the U.S. presidential election, political and advocacy budgets are once again on the rise. Due to a more diversified sales mix, strong gross margins, and a reduction in the break-even point in 2024 due to the Presidential election and down-ticket ballot races, Sabio is well positioned for significant Adjusted EBITDA1 gains in 2024.  There was an 18% drop in OPEX spend in the third quarter of 2023, when normalized for sales commissions, compared to the second quarter of 2023, with further efficiency gains anticipated in the quarters ahead as the full impact of our reductions starts to be realized.
  There was an 18% drop in OPEX spend in the third quarter of 2023, when normalized for sales commissions, compared to the second quarter of 2023, with further efficiency gains anticipated in the quarters ahead as the full impact of our reductions starts to be realized.
See the section below on "The use of non-IFRS measures" for more information 
The financial disclosures in this news release are subject to a number of cautionary statements, assumptions, contingencies, and risks as set forth in this news release. The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the "Forward-Looking Statements" cautionary statement below. We would like to remind readers that the information contained in this release is intended only for informational purposes, and may not be appropriate for other purposes.
We will be holding a conference call at the following time:
During the third quarter ended September 30, 2023, the Company will host an investor conference call at 9:00 a.m. ET (6:00 a.m. PT) on November 21, 2023. The details of this conference call can be found below:
The date of the event is Tuesday, November 21, 2023
The time of the event is 9:00 a.m. ET (6:00 a.m. PT)
Registration for the webinar is as follows:
https://us02web.zoom.us/webinar/register/WN_clsUwNAHT1iisc6f2Wa2SQ
We ask that you connect five minutes before the conference call so that you have time to download any software that may be required prior to the call.
Here are some things you need to know about Sabio
Holdings of Sabio, Inc.. The company (TSXV: SBIO) (OTCQX: SABOF) is one of the fastest-growing providers of CTV/OTT technology and services in the high-growth ad-supported video-on-demand (AVOD) and fast-channel space. As a cloud-based CTV/OTT technology provider, it offers publishers distribution, monetization, and analytics services as well as ROI validation for brands and agencies.. In addition to Sabio, the Sabio Holdings portfolio consists of three companies: Sabio, the trusted and transparent content monetization DSP; App ScienceTM, the cutting-edge, non-panel based, real-time measurement and attribution SaaS platform; Vidillion, the cloud-based platform that allows you to insert ads, distribute content, and manage it.
In addition to Sabio, the Sabio Holdings portfolio consists of three companies: Sabio, the trusted and transparent content monetization DSP; App ScienceTM, the cutting-edge, non-panel based, real-time measurement and attribution SaaS platform; Vidillion, the cloud-based platform that allows you to insert ads, distribute content, and manage it.
Visit the following website for more information: sabioholding.com    
Measures that are not in accordance with IFRS are used
Several non-IFRS (International Financial Reporting Standards) measures are mentioned in this press release, including, but not limited to, Adjusted EBITDA, which is not included in the IFRS..  Due to the fact that IFRS does not prescribe a standard meaning for these measures, they may not be comparable to similarly titled measures presented by other companies. As such, the measures should neither be considered in isolation nor used as a substitute for analyzing financial information reported under IFRS..  These non-IFRS measures are rather provided as additional information in order to complement the IFRS measures in order to provide a deeper understanding of the operations from the viewpoint of management
  These non-IFRS measures are rather provided as additional information in order to complement the IFRS measures in order to provide a deeper understanding of the operations from the viewpoint of management
In addition to the financial results reported in accordance with IFRS, Sabio's management uses adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") as a key financial metric when evaluating its operating performance.. It should be noted that 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.  There is a reconciliation to Adjusted EBITDA at the end of the "Selected Financials" section of this release and in the MD&A filed by the Company for the three and nine months ended September 30, 2023 and September 30, 2022, copies of which can be found under Sabio Holdings Inc..'s profile on SEDAR Plus can be found at www.sedarplus.com.The SedarPlus platform.It is a 
It is a 
The management of Sabio believes that the items excluded from Adjusted EBITDA are not directly related to the company's operating performance and do not represent it in any way. In addition to providing useful supplemental information, management believes Adjusted EBITDA can also be regarded as an important indicator of the results generated by Sabio's main business activities prior to taking into account the financing and taxation of these activities, as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss.. As a result, management believes that this measure may also be helpful to investors as a way to gain a deeper understanding of Sabio's operating performance in the future. In order to understand and evaluate Sabio's operating performance, to prepare annual budgets and to develop operating plans, it is a key measure that is used by Sabio's management and board of directors
In order to understand and evaluate Sabio's operating performance, to prepare annual budgets and to develop operating plans, it is a key measure that is used by Sabio's management and board of directors
Statements that are forward-looking
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, the Company's outlook for the fourth quarter of 2023 and full-year fiscal 2024, foreign private issuer status, and cash flow management, 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. It is important for readers to keep in mind that forward-looking information should not be relied upon unduly. As a result of these statements, actual results and developments may differ materially from those contemplated by these statements. If third parties make analyses, expectations, or statements regarding the Company, its securities, or its financial or operating results (as applicable), the Company does not undertake any obligation to comment on such analyses, expectations, or statements.. 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 effect of the macro-economic environment adversely impacting the Company's business more than anticipated, unexpected funding and cash flow management difficulties, and the other risk factors disclosed in the Company's filing statement and management's discussion and analysis (MD&A), which are  publicly available on SEDAR Plus at  www.The SEDAPlus website.It is a. As a result of the material factors referred to in this section, the Company has assumed that these forward-looking statements and information will not materially differ from actual results or events in the future.. As a result, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors in the future. There is a cautionary statement included with this press release that expressly qualifies the forward-looking information contained herein as of the date of this release.. Except as required by law, the Company expressly disclaims any intention and disclaims any responsibility to update or revise any forward-looking information, whether in response to new information, future events, or for any other reason.
Except as required by law, the Company expressly disclaims any intention and disclaims any responsibility to update or revise any forward-looking information, whether in response to new information, future events, or for any other reason.
Any offer to sell or solicitation of an offer to buy any securities in any jurisdiction is not intended to constitute an offer to sell or a solicitation of an offer to buy any securities.
There is no responsibility for the adequacy or accuracy of this release on the part of the TSX Venture Exchange or its Regulation Service Provider (as such term is defined in the policies of the TSX Venture Exchange). 
The source of this information is Sabio Holdings Inc.
Please contact Sajid Premji, Chief Financial Officer, at [email protected], phone: 1.844.974.2662; Sam Wang, Investor Relations, at [email protected]; Hollis Guerra, Daddi Brand Communications, at [email protected] for further information. 
The source of this information is Sabio Holdings Inc.
Sabio Holdings Inc. (TSXV: SBIO; OTCQX: SABOF) (the "Company" or simply "Sabio") is a leading provider of Connected TV ("CTV") and Over-the-Top ("OTT") services...
It is exciting to announce that Sabio Holdings Inc. (TSXV: SBIO; OTCQX: SABOF) (the "Company" or "Sabio") is a leading provider of connected television ("CTV")/over-the-top ("OTT") services....
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