What you need to know: • Sabio reported excellent Q4 and 2024 financial results that beat our original expectations prior to being revised upward on the pre-release. • Revenue came in at $18.3M (+44% YoY) compared to our original estimate of $16.4M and revised estimate of $18.0M. Adjusted EBITDA came in at $2.8M (+38% YoY) vs. our estimate of $2.7M. • Sabio guided for continued solid growth and margins into 2025 and 2026. • We recently published an interview with management, watch it here. Yesterday after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported stellar Q4 and 2024 financial results, exhibiting 44% revenue growth and 38% EBITDA growth in the quarter. Q4 was driven by continued rapid growth in the ad-supported streaming segment while the mobile segment returned to positive growth for a 2nd consecutive quarter. We recently published a management interview with CEO Aziz Rahimtoola and CFO Sajid Premji, watch it here. We are maintaining our BUY rating and increasing our target price to C$1.00/share (previously C$0.90/share) on Sabio Holdings. Q4/24 Highlights • Revenue of $18.3M (+44% YoY), beating our revised estimate of $18.0M (originally $16.4M) and slightly exceeding management’s guidance of between $18.0-18.2M. The strong growth was led by ad-supported streaming segment which grew 57% YoY and represented 79% of sales. Normalizing for political revenue, the ad-supported streaming revenue grew 32% in the quarter. The mobile segment grew 16% YoY, its 2nd consecutive quarter of growth. • Gross margin of 62% beating our revised estimates of 60% (originally 62%) and management’s guidance of 59% to 61%. • Adjusted EBITDA of $2.8M (16% margin, +38% YoY growth) beating our estimate of $2.7M and hitting the top end of management’s guidance of between $2.6M and $2.8M. This was led by SBIO’s improved cost structure. • Net income of $1.2M vs. our estimates of $2.0M. The miss was attributable to a $0.9M loss on loan forgiveness. • Sabio ended the quarter with $3.3M in cash vs. $2.9M in Q3/24 and $6.8M in total debt compared to $7.2M in Q3/24.