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Sabio Announces First Quarter 2024 Financial Results; Revenues of US$6.4 million led by 29% Connected TV/OTT Growth

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4 months ago

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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 the second quarter of 2024, with the Company’s current facility with Avidbank continuing through the transition period. On April 24, 2024, the current Avidbank credit facility was extended for a 90-day period until August 21, 2024, based on certain conditions, and provides for an Accounts Receivable Line of Credit, with $6,500,000 maximum loans outstanding, during the extended period.On April 24, 2024, the Company announced annual commitments and orders exceeding $27 million for the 2024, representing close to 75% of 2023’s consolidated revenues. The Company anticipates record top-line and bottom-line numbers in 2024, underpinned by strong second-half revenue pipeline visibility and fiscal discipline.On April 22, 2024, Sabio’s App Science™ subsidiary announced a multi-year renewal with Pivot Marketing Group to support their clients including Toyota Motor North America. App Science’s cross-platform measurement solutions will empower Pivot to reach, engage, and validate their audiences and their behaviors at a deeper level, and will leverage the platform’s AI capabilities.

1 See “Use of Non-IFRS Measures” below 

Leadership Update

In connection with the Company’s continuing efforts to reallocate resources to higher growth opportunities, such as AI and programmatic offerings, the Company also announces that Tim Russell, Sabio’s chief revenue officer, will be leaving the Company effective May 31, 2024.  “We thank Tim for his many contributions to Sabio and wish him success in his future endeavors,” said Aziz Rahimtoola, Founder and CEO of Sabio.

Outlook

As Connected TV/OTT streaming continues to be one of the fastest growing categories in advertising, Sabio’s 29% revenue growth in this category during the first quarter of 2024 demonstrates we are gaining market share, and our growth in this space continues to outpace growth in the market.

Building on the material improvements in operating leverage that drove over $2 million in Adjusted EBITDA and an expansion of Adjusted EBITDA margins in fourth quarter 2023, the inherent cost efficiencies in transitioning to this growing Connected TV/OTT streaming sales model away from one more dependent on mobile display has resulted in continued gains in operating leverage in the first quarter of 2024.  As our operating infrastructure continues to become more efficient, our sales model continues to become more predictable.

This creates great opportunity for our continued growth as we are armed with:

High rates of reoccurring revenue as 85% of consolidated first quarter 2024 revenues were from repeat customers (up from 79% in the same quarter in 2023);The continued addition of top name plates as new logos made up ~20% of first quarter 2024 spend;Material upfront commitments including $15+ million in signed political & advocacy insertion orders for campaigns to run during the last three quarters of 2024; andThe most diversified vertical mix in Sabio’s history.

Management continues to expect a return to double digit consolidated revenue growth in 2024 over both 2023 and our record 2022 mid-term election year.  Complemented by a reduced operating infrastructure, Sabio expects improvements in operating leverage with a return to Adjusted EBITDA profitability for the year. Management also expects to allocate material improvements in cash flows to bolster its working capital, through both debt repayment and improved cash reserves, which in combination with the continuation of our credit line, will provide greater balance sheet flexibility as we drive towards continued growth on both the top and bottom lines.

1 See “Use of Non-IFRS Measures” below 

Selected Financials

The tables below set out selected financial information relating to Sabio and should be read in conjunction with the Company’s audited condensed interim consolidated financial statements, including the notes thereto, and MD&A for the three months ended March 31, 2024, and March 31, 2023, copies of which can be found under the Company’s profile on SEDAR+ at http://www.sedarplus.ca/.

For the three months ended

 March 31, 2024

March 31, 2023

$

$

Revenue

6,351,533

6,481,572

Gross profit

3,762,004

4,011,050

Gross margin

59 %

62 %

Adjusted EBITDA(1)

(1,308,784)

(2,221,004)

Net increase in cash and cash equivalents during the period

(292,116)

(706,971)

Cash and cash equivalents – end of the period

2,319,996

3,292,431

For the three months ended

 March 31, 2024

March 31, 2023

$

$

Income (Loss) for the period

(2,012,107)

(2,779,648)

Finance Costs

314,346

170,481

Interest earned

(8,092)

–

Amortization of intangible Assets

51,147

37,140

Stock-based compensation

46,177

145,888

Amortization of lease

179,552

120,845

Income taxes

11,949

7,303

Foreign exchange differences

2,043

–

State and local taxes

19,868

32,001

Severance expenses

86,333

44,986

Adjusted EBITDA

(1,308,784)

(2,221,004)

 

1 See “Use of Non-IFRS Measures” below.

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. Readers are cautioned that this release is for information purposes only and may not be appropriate for other purposes.

Conference Call:

The Company will release its financial results for the first quarter in a press release prior to the investor conference call.

The webinar details are below:

Webinar Details
Date: Thursday, May 30, 2024
Time: 9:00 a.m. ET (6:00 a.m. PT)
Webinar Registration:
https://bit.ly/3K2m0qu
Or dial:
For higher quality, dial a number based on your current location.

Canada:

+1 647 374 4685 (Toronto local)

+1 778 907 2071 (Vancouver local)

Webinar ID: 840 0807 9906

International numbers available: https://us02web.zoom.us/u/kbmWagiHz6

Please connect five minutes prior to the conference call to ensure time for any software download that may be required.

About Sabio

Sabio Holdings (TSXV: SBIO, OTCQX: SABOF) is a technology and services leader in the fast-growing ad-supported streaming space. Its cloud-based, end-to-end technology stack works with top blue chip, global brands and the agencies that represent them to reach, engage, and validate streaming audiences. Sabio Holdings’ companies consist of Sabio – a demand-side platform (DSP) powered through our proprietary ad-serving technology; App Science™ – a non-cookie based software as a service (SAAS) analytics and insights platform with AI natural language capabilities; and FWD (formerly known as Vidillion) – an ad-supported streaming supply side platform (SSP) that includes server-side ad-insertion (SSAI) technology.

For more information, visit: sabioholding.com.

Use of Non-IFRS Measures

This press release makes reference to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective.

Management uses adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) as a key financial metric to evaluate Sabio’s operating performance as a complement to results provided in accordance with IFRS. 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.  Refer to reconciliation to Adjusted EBITDA in the Company’s MD&A for the three months ended March 31, 2024 and March 31, 2023, copies of which can be found under Sabio Holdings Inc.’s profile on SEDAR Plus at www.sedarplus.ca.

Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Sabio’s main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of Sabio’s operating performance. It is a key measure used by Sabio’s management and board of directors to understand and evaluate Sabio’s operating performance, to prepare annual budgets, and to help develop operating plans.

Forward-Looking Statements

This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as “believes,” “anticipates,” “plans,” “intends,” “will,” “should,” “expects,” “continue,” “estimate,” “forecasts,” or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information, including but not limited to statements in respect of; the Company’s operations, growth, market share, sales expectations, and business plans; results, including sales, expenses, and customer retention, of the Connected TV/OTT sales; streaming viewership and Connected TV/OTT opportunities and growth well beyond the Company’s 2024 revenue cycle; achievement of record sales, positive adjusted EBITDA, and profitability in 2024; entering into definitive agreements in respect of the multi-year asset-based lending credit facility; achievement of greater balance sheet flexibility and stability; reduced operating infrastructure and higher efficiency; sales model predictability; double digit consolidated revenue growth in 2024; improvements in operating leverage; material improvements in cash flows; use of funds; the Company’s outlook for the remainder of fiscal 2024, and balance sheet and cash flow management. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). 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.sedarplus.ca. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise. 

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

For further information: Sajid Premji, Chief Financial Officer, investor@sabio.inc, Phone: 1.844.974.2662; Aideen McDermott, Investor Relations, investor@sabio.inc

SOURCE Sabio Inc.

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Technology

Disparities Narrowing Among Patients Undergoing Blood Stem Cell Transplant, Roswell Park Study Reveals

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17 mins ago

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September 20, 2024

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Historically, some patients with blood cancers have been less likely than others to receive stem cell transplant, also known as bone marrow transplant. Theresa Hahn, PhD, of Roswell Park is lead author of a new study showing that older adults and Black patients are much less likely than people from other groups to receive a blood stem cell transplant.

BUFFALO, N.Y., Sept. 20, 2024 /PRNewswire-PRWeb/ —

Study led by Dr. Theresa Hahn published in JAMA Network OpenNumber of transplants for blood cancers rose from 2009 to 2018Research team analyzed trends in transplant utilization for that period

Every year, more than 22,000 patients in the U.S. undergo a potentially lifesaving blood stem cell transplant — often called a “bone marrow transplant” — for the treatment of hematologic diseases. But historically, some patients with blood cancers have been less likely than others to receive the treatment. Theresa Hahn, PhD, of Roswell Park Comprehensive Cancer Center is lead author of a new study in the journal JAMA Network Open showing that while progress has been made in reducing those disparities, older adults and Black patients are much less likely than people from other groups to receive a blood stem cell transplant.

“This study shows that while progress has been made to reduce disparities among racial and ethnic groups, there’s a need to improve hematopoietic cell transplant utilization rates in older adults and in Black patients of all ages.” — Theresa Hahn, PhD, Roswell Park Comprehensive Cancer Center

The research team analyzed data provided by the Center for International Blood and Marrow Transplant Research (CIBMTR) for 136,280 patients who underwent hematopoietic cell transplant (HCT) in the U.S. between 2009 and 1018, comparing those numbers with the incidence of six blood cancers (acute myeloid and lymphoblastic leukemia, multiple myeloma, Hodgkin and non-Hodgkin lymphoma and myelodysplastic syndrome) in various age, race and ethnic groups the U.S. as reported by the National Cancer Institute’s Surveillance Epidemiology and End Results (SEER) Program.

The team found that during that period, the use of HCT increased for the treatment of most blood cancers — and rose among all age, race and ethnic groups.

The researchers also discovered that in the most recent years analyzed, from 2017-2018:

The rate of HCT utilization for blood cancers rose among Hispanic and younger patients to equal the rate of non-Hispanic white patients.Non-Hispanic Black patients had a lower rate of HCT for all six diseases studied.Pediatric, adolescent and young adult patients had a higher rate than adult patients of allogeneic HCT, which involves receiving cells from a healthy donor.

“This study shows that while progress has been made to reduce disparities among racial and ethnic groups, there’s a need to improve hematopoietic cell transplant utilization rates in older adults and in Black patients of all ages,” says Dr. Hahn, Professor of Oncology in the Department of Cancer Prevention and Control at Roswell Park and the study’s first author.

The research team also include Dr. Hahn’s Roswell Park colleague Megan Herr, PhD, and collaborators from the Medical College of Wisconsin, Milwaukee; the CIBMTR; and the Mayo Clinic.

From the world’s first chemotherapy research to the PSA prostate cancer biomarker, Roswell Park Comprehensive Cancer Center generates innovations that shape how cancer is detected, treated and prevented worldwide. Driven to eliminate cancer’s grip on humanity, the Roswell Park team of 4,000 makes compassionate, patient-centered cancer care and services accessible across New York State and beyond. Founded in 1898, Roswell Park was among the first three cancer centers nationwide to become a National Cancer Institute-designated comprehensive cancer center and is the only one to hold this designation in Upstate New York. To learn more about Roswell Park Comprehensive Cancer Center and the Roswell Park Care Network, visit http://www.roswellpark.org, call 1-800-ROSWELL (1-800-767-9355) or email ASKRoswell@RoswellPark.org.

Media Contact

Julia Telford, Roswell Park Comprehensive Cancer Center, 716-845-4919, julia.telford@roswellpark.org, roswellpark.org

View original content to download multimedia:https://www.prweb.com/releases/disparities-narrowing-among-patients-undergoing-blood-stem-cell-transplant-roswell-park-study-reveals-302254312.html

SOURCE Roswell Park Comprehensive Cancer Center

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Technology

IFIC Monthly Investment Fund Statistics – August 2024

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17 mins ago

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September 20, 2024

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Mutual fund and exchange-traded fund (ETF) assets and sales

TORONTO, Sept. 20, 2024 /CNW/ – The Investment Funds Institute of Canada (IFIC) today announced investment fund net sales and net assets for August 2024.

Mutual fund assets totalled $2.145 trillion at the end of August, up by $7.7 billion or 0.4 per cent since July. Mutual fund net sales were $2.4 billion in August.

ETF assets totalled $464.0 billion at the end of August, up by $5.9 billion or 1.3 per cent since July. ETF net sales were $4.3 billion in August.

August insights

Mutual fund net sales were positive for the second consecutive month.Year to date, mutual funds experienced inflows of $3.6 billion, compared to outflows of $23.2 billion over the same period last year.Money market funds experienced the largest single month of outflows since November 2021, largely the result of outflows from high-interest saving account funds.Year to date, ETFs experienced inflows of $41.6 billion, which is 82 per cent higher than inflows over the same period last year.

Mutual fund net sales/net redemptions ($ millions)*

Asset class

Aug 2024

Jul 2024

Aug 2023

YTD 2024

YTD 2023

Long-term funds

     Balanced

(1,383)

(1,025)

(4,750)

(21,271)

(31,002)

     Equity

1,093

2,088

(2,152)

1,212

(13,584)

     Bond

2,538

3,307

(427)

16,339

8,591

 Specialty

547

800

366

5,157

2,642

Total long-term funds

2,795

5,169

(6,963)

1,436

(33,353)

Total money market funds

(420)

31

1,302

2,194

10,142

Total

2,375

5,200

(5,661)

3,630

(23,211)

 

Mutual fund net assets ($ billions)* 

Asset class

Aug 2024

Jul 2024

Aug 2023

Dec 2023

Long-term funds

     Balanced

964.3

962.9

893.6

904.3

     Equity

823.5

821.3

701.3

714.4

     Bond

268.7

264.7

234.5

242.3

     Specialty

34.1

33.7

25.8

27.0

Total long-term funds

2,090.6

2,082.6

1,855.2

1,888.0

Total money market funds

54.4

54.8

45.7

50.7

Total

2,145.0

2,137.4

1,900.9

1,938.7

 

*

See below for important information about this data.

ETF net sales/net redemptions ($ millions)*

Asset class

Aug 2024

Jul 2024

Aug 2023

YTD 2024

YTD 2023

Long-term funds

     Balanced

464

558

140

3,305

1,103

     Equity

1,748

2,380

330

22,822

6,776

     Bond

1,176

1,463

641

13,359

7,085

 Specialty

991

254

(280)

1,288

1,047

Total long-term funds

4,378

4,655

832

40,775

16,011

Total money market funds

(94)

310

1,051

863

6,864

Total

4,285

4,965

1,883

41,638

22,875

ETF net assets ($ billions)* 

Asset class

Aug 2024

Jul 2024

Aug 2023

Dec 2023

Long-term funds

     Balanced

20.2

19.6

13.9

15.1

     Equity

290.5

286.6

219.7

232.5

     Bond

109.2

107.7

86.3

94.6

     Specialty

17.8

17.7

11.7

14.4

Total long-term funds

437.8

431.7

331.6

356.7

Total money market funds

26.3

26.4

23.1

25.3

Total

464.0

458.1

354.7

382.0

 

*

See below for important information about data.

IFIC direct survey data (which accounts for approximately 87 per cent of total mutual fund industry assets and approximately 80 per cent of total ETF industry assets) is complemented by estimated data to provide comprehensive industry totals.

IFIC makes every effort to verify the accuracy, currency, and completeness of the information, however, IFIC does not guarantee, warrant, represent or undertake that the information provided is correct, accurate or current.

© The Investment Funds Institute of Canada. No reproduction or republication in whole or in part is permitted without permission.

* Important information about investment fund data

Mutual fund data is adjusted to remove double counting arising from mutual funds that invest in other mutual funds.Starting with January 2022 data, ETF data is adjusted to remove double counting arising from Canadian-listed ETFs that invest in units of other Canadian-listed ETFs. Any references to IFIC ETF assets and sales figures prior to 2022 data should indicate that the data has not been adjusted for ETF of ETF double counting.The balanced funds category includes funds that invest directly in a mix of stocks and bonds or obtain exposure through investing in other funds.Mutual fund data reflects the investment activity of Canadian retail investors.ETF data reflects the investment activity of Canadian retail and institutional investors.

About IFIC

The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. Learn more about IFIC

SOURCE The Investment Funds Institute of Canada

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Technology

VINFAST REPORTS UNAUDITED SECOND QUARTER 2024 FINANCIAL RESULTS

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17 mins ago

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September 20, 2024

By

SINGAPORE, Sept. 20, 2024 /PRNewswire/ — VinFast Auto Ltd. (“VinFast” or the “Company”) (Nasdaq: VFS), a subsidiary of Vingroup JSC, and Vietnam’s only pure-play electric vehicle manufacturer, today announced its unaudited financial results for the second quarter ended June 30, 2024.

VinFast delivered 13,172 EVs in Q2, up by 44% QoQ and 43% YoY, bringing its delivery total for the first half of 2024 to 22,348 vehicles, a 101% increase compared to the same period last year.The Company recorded $357 million in revenue for Q2, up by 33% QoQ and 9% YoY.Vietnam, where momentum is accelerating, will play a key role in driving VinFast’s revenue in the remainder of 2024.

Madam Thuy Le, Chairwoman of VinFast, said: “We remain focused on our mission to contribute to a sustainable future for everyone. Our strategy is unchanged with regards to being a vertically-integrated green mobility solutions company providing high quality and good-value electric vehicles. With the delivery of VF 3 starting in Q3, we have completed the development of all 7 e-SUV models.”

Ms. Lan Anh Nguyen, Chief Financial Officer of VinFast, added: “Q2 of 2024 aligned with our forecasts, driven in large part by the increasing demand for VinFast’s EVs in Vietnam. This growth in our home market has been crucial in advancing our mission to promote EV adoption and green mobility. The momentum we’ve built in Vietnam has laid a solid foundation for our strong position in this key market to continue thriving.”

VinFast EV Deliveries Rose 44% QoQ and Revenue Grew 33% QoQ

During the quarter, VinFast delivered 13,172 vehicles, a 44% increase compared to the previous quarter and a 43% increase year-over-year. This brings total deliveries for the first half of 2024 to 22,348 vehicles, representing a 101% increase compared to the same period last year. 

One of the key drivers behind this growth was the increasing adoption of electric vehicles in the Vietnamese market, where VinFast recorded a 108% year-over-year increase in B2C deliveries in Q2.

VinFast reported $357 million in revenue in Q2, up by 9% year-over-year and by 33% quarter-over-quarter. 

The Company’s gross loss for Q2 was ($224) million, equivalent to a gross margin of (62.7%). This was primarily due to an impairment charge on Net Residual Value (NRV) of $104 million, compared to $5 million in Q1.

Expanding Global Footprint to Drive Sales

VinFast’s strategic expansion through dealership network has shown progress.

As of August 31, VinFast had 155 showrooms across all markets, of which around 70% were dealerships.

Strengthening Presence in Key Markets

Vietnam

VinFast achieved its highest year-over-year growth for Vietnam in the first half of 2024. The VF 5 model has been instrumental in driving the Company’s strong sales performance, securing the VF 5’s position as a domestic leader in its segment. Additionally, the Company began delivering its highly anticipated VF 3, VinFast’s mini electric SUV, in the third quarter of 2024.

North America

In the second quarter of 2024, VinFast continued to build its foundation in the U.S. by introducing its products and strategies to key dealerships. To bolster brand awareness, VinFast expanded customer outreach through its dealer network and established a Dealer Advisory Council to gain valuable insights. As of the second quarter, VinFast now operates in eight states, California, Connecticut, Florida, Kansas, Kentucky, North Carolina, New York, and Texas, with a combined network of dealer stores and VinFast-owned showrooms.

In Canada, VinFast recorded 15% quarter-over-quarter growth in the second quarter and is seeing this momentum continue in the third quarter, with July and August seeing its highest delivery levels for North America in the past year.

Southeast Asia

VinFast entered the Indonesian market less than six months ago and has since established 15 showrooms across major cities, including Jakarta and Surabaya. VinFast began delivering its first batch of VF e34 electric vehicle during the third quarter of 2024, making Indonesian customers the first globally to receive right-hand drive VinFast EVs. VinFast also broke ground its completely knocked down (CKD) facility in Indonesia.

VinFast’s innovative battery subscription offer has been a key driver of sales in Indonesia, accounting for nearly 100% of its total sales and orders. This program has also garnered positive feedback in the Philippines, further validating its commitment to making electric vehicles more accessible.

Building on the positive response from dealers in the Philippines, VinFast is eager to introduce additional models to the market in the coming months, further expanding its footprint and product offerings in the region.

Outlook for the Remainder of 2024

VinFast reaffirms its target to deliver approximately 80,000 units in 2024.

Vietnam is expected to play a key role in driving revenue for the remainder of 2024. The growing success of the VF 5 model, along with VinFast’s extensive charging infrastructure, flexible battery subscription program, and strong after-sales services, are expected to reinforce its leadership position in the Vietnamese electric vehicle market.

While international markets continue to face near-term challenges, they remain integral to VinFast’s longer-term growth strategy as the company expands its global brand and distribution network.

VinFast remains committed to its mission of accelerating the global shift to sustainable electric mobility through continuous innovation, product expansion, and market presence./.

Conference Call

The Company’s management will host its second quarter 2024 earnings conference call at 8:00 AM U.S. Eastern Time on September 20, 2024.

Live Webcast: https://edge.media-server.com/mmc/p/urnhoxtg
For additional information, please visit https://vinfastauto.us/investor-relations/
Investor Relations – Email: ir@vinfastauto.com
Media Relations – Email: info@vingroup.com

About VinFast 

VinFast (NASDAQ: VFS), a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates, is a pure-play electric vehicle (“EV”) manufacturer with the mission of making EVs accessible to everyone. VinFast’s product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses. VinFast is currently embarking on its next growth phase through rapid expansion of its distribution and dealership network globally and increasing its manufacturing capacities with a focus on key markets across North America, Europe and Asia. Learn more at www.vinfastauto.us

Forward-Looking Statements

Forward-looking statements in this announcement, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of VinFast, market size and growth opportunities, competitive position and technological and market trends and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the effect of the consummation of the business combination and the public listing of the Company’s securities on its business relationships, performance, financial condition and business generally, (ii) the risk that the Company’s securities may experience a material price decline and volatility in the price of such securities due to a variety of factors, (iii) the adverse impact of any legal proceedings and regulatory inquiries and investigations on the Company’s business, (iv) the Company’s potential inability to maintain the listing of its securities on Nasdaq, (v) the risk associated with the Company’s limited operating history, (vi) the ability of the Company to achieve profitability, positive cash flows from operating activities and a net working capital surplus, (vii) the ability of the Company to fund its capital requirements through additional debt and equity financing under commercially reasonable terms and the risk of shareholding dilution as a result of additional capital raising, if applicable, (viii) risks associated with being a new entrant in the EV industry, (ix) the risks of the Company’s brand, reputation, public credibility and consumer confidence in its business being harmed by negative publicity, (x) the Company’s ability to successfully introduce and market new products and services, (xi) competition in the automotive industry, (xii) the Company’s ability to adequately control the costs associated with its operations, (xiii) the ability of the Company to obtain components and raw materials according to schedule at acceptable prices, quality and volumes acceptable from its suppliers, (xiv) the Company’s ability to maintain relationships with existing suppliers who are critical and necessary to the output and production of its vehicles and to create relationships with new suppliers, (xv) the Company’s ability to establish manufacturing facilities outside of Vietnam and expand capacity in a timely manner and within budget, (xvi) the risk that the Company’s actual vehicle sales and revenue could differ materially from expected levels based on the number of reservations received, (xvii) the demand for, and consumers’ willingness to adopt, EVs, (xiii) the availability and accessibility of EV charging stations or related infrastructure, (xix) the unavailability, reduction or elimination of government and economic incentives or government policies which are favorable for EV manufacturers and buyers, (xx) failure to maintain an effective system of internal control over financial reporting and to accurately and timely report the Company’s financial condition, results of operations or cash flows, (xxi) battery pack failures in the Company or its competitor’s EVs, (xxii) failure of the Company’s business partners to deliver their services, (xxiii) errors, bugs, vulnerabilities, design defects or other issues related to technology used or involved in the Company’s EVs or operations, (xxiv) the risk that the Company’s research and development efforts may not yield expected results, (xxv) risks associated with autonomous driving technologies, (xxvi) product recalls that the Company may be required to make, (xxvii) the ability of the Company’s controlling shareholder to control and exert significant influence on the Company, (xxiii) the Company’s reliance on financial and other support from Vingroup and its affiliates and the close association between the Company and Vingroup and its affiliates, (xxix) conflicts of interests with or any events impacting the reputation of Vingroup affiliates or unfavorable market conditions or adverse business operations of Vingroup and Vingroup affiliates and (xxx) other risks discussed in our reports filed or furnished to the Securities and Exchange Commission.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. You are cautioned not to place undue reliance on any forward-looking statements, which are made only as of the date of this announcement. VinFast does not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If VinFast updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. The inclusion of any statement in this announcement does not constitute an admission by VinFast or any other person that the events or circumstances described in such statement are material. Undue reliance should not be placed upon the forward-looking statements.

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SOURCE VinFast

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