Adcore Reports Second Quarter 2024 Financial Results

Robust Gross Margins and Strong Revenue Growth in North America, Foundation Set to Execute Long Term Growth Plan

TORONTO, ONTARIO – August 14th, 2024 – Adcore Inc. (the “Company” or “Adcore”) (TSX:ADCO) (OTCQX:ADCOF) (FSE:ADQ), a leading e-commerce advertising management and automation platform to leverage digital marketing in an effortless and accessible way (“Effortless Marketing”), today announced its financial results for the three months ended June 30, 2024.

Omri Brill, Adcore Founder and CEO, commented “ In Q2 we saw strong 22% year over year growth in revenue from the North America region while maintaining robust gross margins. Despite the slowdown in the EMEA market, we successfully overcame these challenges and achieved continued improvements in operating efficiency, resulting in gross margins of 44%, consistent with our strategic revenue initiative.”

Mr. Brill continued “Adcore is in an optimal financial position to continue executing our long term growth strategy and developing our leading digital marketing technology.” Mr. Brill added, “We are particularly encouraged by the remarkable growth of our Media Blast app, launched just 12 months ago, which has already achieved an ARR of CAD$1,000,000. This impressive performance within its first year is a testament to our innovative approach and the dedication of our team.”

Second Quarter Highlights

● Revenue for the three months ended June 30, 2024, was CAD$6.6 million compared to CAD$6.9 million for the three months ended June 30, 2023, a 4% decrease.

● Gross profit for the three months ended June 30, 2024, was CAD$2.9 million compared to CAD$3 million for the three months ended June 30, 2023, a 1% decrease.

● Gross margin for the three months ended June 30, 2024, was 44% compared to 43% for the three months ended June 30, 2023,

● Adjusted EBITDA for the three months ended June 30, 2024, was negative CAD$173,000 compared to CAD$112,000, for the three months ended June 30, 2023

● North America revenue for the three months ended June 30, 2024, was CAD$2 million compared to CAD$1.7 million for the three months ended June 30, 2023, a 22% increase.

● EMEA revenue for the three months ended June 30, 2024, was CAD$1.9 million compared to CAD$2.6 million for the three months ended June 30, 2023, a 27% decrease.

● APAC revenue for the three months ended June 30, 2024, was CAD$2.7 million compared to CAD$2.6 million for the three months ended June 30, 2023, a 3% increase.

● Net cash flow used in operating activities for the three months ended June 30, 2024, amounted to CAD$247 thousands, compared to CAD$406 thousands for the three months ended June 30, 2023.

● Total accumulated NCIB purchases the company made until 30/06/2024 was 1,940,000 shares.

● Working Capital for the three months ended June 30, 2024, was CAD$6.4 million compared to CAD$7.6 million as of December 31, 2023.

CONFERENCE CALL AND WEBCAST INFORMATION

The Company will host a conference call and webcast to discuss these results on August 14th at 10AM ET.

To register for the conference call/webcast please click here or visit: https://investors.adcore.com/q2- conference-call

The conference call will include a brief statement by management and will focus on answering questions about Adcore’s results. Questions regarding results can be sent in advance to [email protected].

USE OF NON-IFRS MEASURES

The following table reconciles the non-IFRS measure to the most comparable IFRS measure for the three months ended June 30, 2024. This measure does not have any standardized meaning under IFRS and is not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies.

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ADJUSTED EBITDA

(Expressed in CAD thousands)

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UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in CAD thousands)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Expressed in CAD thousands)

ABOUT ADCORE 

Adcore is a leading AI-powered marketing technology company.

By combining extensive industry knowledge and experience with its proprietary artificial intelligence (AI) powered technology, Adcore offers a unique digital marketing solution that empowers entrepreneurs and advertisers by managing and automating their e-commerce store advertising and monitoring and analyzing the performance of their advertising budget to ensure maximum Return on Investment. Adcore is a certified Google Premier Partner, Elite Tier Microsoft Partner, Facebook Partner, Verified Amazon Partner, and TikTok Partner.  

Established in 2006, the Company employs over fifty people in its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong and Shanghai, China. 

 For more information about Adcore, please visit https://www.adcore.com/investors/, https://www.adcore.com/blog or follow us on LinkedIn.

FORWARD-LOOKING STATEMENTS

This press release contains or may contain certain forward-looking statements, including statements about the Company. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

For further information please contact: 

ADCORE INC. 

https://www.adcore.com/investors/