Daniel Rosenberg's questions to Sabio Holdings (SABOF) leadership • Q1 2025
Question
Daniel Rosenberg of Paradigm Capital asked about the key differentiators driving Sabio's strong CTV growth, which outpaced peers. He also sought to understand the drivers of triple-digit growth in the U.K., the strategy for international hiring and expansion, the expected flow of working capital throughout the year, and clarification on the double-digit growth outlook amid economic uncertainty.
Answer
Executive Aziz Rahimtoola and CFO Sajid Premji attributed the strong CTV growth to their proprietary App Science technology, which offers superior audience targeting compared to competitors' contextual methods. For the U.K., Rahimtoola described an 'App Science like' strategy using data partnerships, creative services, and contextual targeting. The company's expansion strategy is multipronged, targeting Europe, Asia, and Latin America. Premji explained that working capital usage typically increases mid-year but the company is in a stronger cash position than in prior years, bolstered by a recent employee retention credit. Regarding the outlook, they expressed cautious optimism, noting that while advertiser spending has become more volatile due to tariff uncertainty, the underlying business momentum remains strong.