Adcore Delivers Record-Breaking Q4 and Year-End 2024 Financial Results

Rhea-AI Summary

Adcore (ADCOF) reported exceptional Q4 2024 financial results, marking significant growth across key metrics. The company achieved its highest-ever quarterly gross profit of $3.9 million and robust quarterly cash flow from operating activities of $3.8 million.

Q4 2024 highlights include:

• Revenue increased 24% YoY to CAD$11.2 million
• Adjusted EBITDA grew 164% to $1.3 million
• Net income surged 601% to $521 thousand
• APAC revenue up 58% to CAD$5.5 million
• EMEA revenue increased 14% to CAD$3.8 million

Full-year 2024 performance showed:

• Total revenue of CAD$32.5 million, up 4% YoY
• Gross margin improved to 42%
• Adjusted EBITDA increased 75% to CAD$1.6 million
• Cash and equivalents reached CAD$10.8 million

Positive

• Record quarterly gross profit of CAD$3.9 million in Q4
• Q4 revenue increased 24% YoY to CAD$11.2 million
• Net income grew 601% YoY to $521 thousand in Q4
• Strong cash position of CAD$10.8 million
• APAC revenue surged 58% to CAD$5.5 million
• Operating cash flow tripled to CAD$3.8 million in Q4
• Adjusted EBITDA increased 164% to CAD$1.3 million in Q4
• Improved gross margins to 42% for full-year 2024

Negative

• North America revenue declined 14% to CAD$1.8 million in Q4
• Modest 4% full-year revenue growth

Highest-Ever Quarterly Gross Profit of $3.9 Million, Robust Quarterly Cash Flow From Operating Activities of $3.8 Million, and Accelerated Growth Momentum Set the Stage for a Breakout 2025

(All figures in CAD unless otherwise stated)

TORONTO, ON / ACCESS Newswire / March 26, 2025 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ), a global leader in marketing technology empowering businesses to maximize their digital marketing potential with its innovative AI-powered platform ("Marketing Cloud"), today announced its financial results for the three and twelve months ended December 31, 2024.

"Q4 was nothing short of a milestone moment for Adcore," said Omri Brill, Founder and CEO of Adcore. "We increased our revenue by 24% YoY, achieved our highest-ever quarterly gross profit of $3.9 million, achieved a 164% increase in Adjusted EBITDA to $1.3 million, and tripled our Cash Flow from operating activities year-over-year to $3.8 million. These outstanding results are a testament to our team's relentless focus on performance, technology innovation, and global expansion."

Adcore also reported continued gains in operational efficiency, with gross margins climbing to 42% for the year and net income reaching $521 thousand in Q4, a significant 601% leap from just $74 thousand a year earlier.

"With $10.8 million in cash on hand, Adcore is entering 2025 from a position of strength," added Mr. Brill. "This strong financial footing enables us to double down on strategic growth initiatives, expand our international footprint, and continue enhancing our suite of marketing apps that are revolutionizing the way businesses advertise online."

Driven by growing demand for its solutions and a strong finish to 2024, Adcore is poised for a breakout year in 2025.

"The momentum we've built is undeniable. We are laser-focused on scaling our platform, delivering exceptional value to our clients, and creating long-term shareholder value," concluded Mr. Brill. "We believe Adcore's best days are ahead."

Full-Year Highlights:

• Total revenue for the year ended December 31, 2024, was CAD$32.5 million compared to CAD$31.2 million in 2023, a 4% increase.

• Gross margin for the year ended December 31, 2024, was 42% compared to 41% gross margins for the year ended December 31, 2023, a 3% increase.

• Adjusted EBITDA for the year ended December 31, 2024, was CAD$1.6 million, compared to CAD$907 thousand in 2023, a 75% increase.

• Cash flows generated by operating activities for the year ended December 31, 2024, were CAD$3.3 million, compared to CAD$1.1 million for the year ended December 31, 2023.

• As of December 31, 2023, the Company's cash and cash equivalents were CAD$10.8 million, compared to CAD$8 million for the year ended December 31, 2023.

Fourth Quarter Highlights:

• Revenue for the three months ended December 31, 2024, was CAD$11.2 million compared to CAD$9 million for the three months ended December 31, 2023, a 24% increase.

• Gross profit for the three months ended December 31, 2024, was CAD$3.9 million compared to CAD$3.7 million for the three months ended December 31, 2023, a 6% increase.

• Adjusted EBITDA for the three months ended December 31, 2024, was CAD$1,275 thousands compared to CAD$483 thousands, for the three months ended December 31, 2023.

• APAC revenue for the three months ended September 30, 2024, was CAD$5.5 million compared to CAD$3.5 million for the three months ended December 31, 2023, a 58% increase.

• EMEA revenue for the three months ended December 31, 2024, was CAD$3.8 million compared to CAD$3.4 million for the three months ended December 31, 2023, a 14% increase.

• North America revenue for the three months ended December 31, 2024, was CAD$1.8 million compared to CAD$2.1 million for the three months ended December 31, 2023, a 14% decrease.

• Net cash flow generated by operation activities for the three months ended December 31, 2024, amounted to CAD$3,816 thousands, compared to CAD$1,056 thousands for the three months ended December 31, 2023.

CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host a conference call and webcast to discuss these results on March 26th at 10AM ET.

To register for the conference call/webcast please click here or visit: https://investors.adcore.com/YE2024

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 invest@adcore.com.

USE OF NON-IFRS MEASURES
Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") as a key financial metric to evaluate Adcore's operating performance and for planning and forecasting future business operations. Adjusted EBITDA excludes significant items that are non-operating in nature in order to evaluate Adcore's core operating performance against prior periods. Adjusted EBITDA is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, overall change in cash or liquidity of the business as a whole. Management believes the use of Adjusted EBITDA allows investors and analysts to understand the results of the continuing operations of the Company.

ADCORE INC.
ADJUSTED EBITDA
(Express in CAD Thousands)

		Three Months Ended								Twelve Months Ended
		December 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023
Operating (loss) profit			410				106				(659	)			(560	)
Depreciation and amortization			441				387				1,555				1,034
Share-based payments			17				(10	)			71				239
Other non-recurring items			407				-				618				194
Total Adjustments			865				377				2,244				1,467
Adjusted EBITDA			1,275				483				1,585				907

ADCORE INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Express in CAD Thousands)

		Three Months Ended								Twelve Months Ended
		December 31 2024				December 31 2023				December 31 2024				December 31 2023
Revenue			11,168				8,989				32,470				31,218
Cost of revenues			7,310				5,333				18,937				18,485
Gross profit			3,858				3,656				13,535				12,733
Research and development, net			642				585				2,378				1,660
Selling, general and administrative expenses			2,807				2,965				11,814				11,633
Operating profit (loss)			410				106				(659	)			(560	)
Finance expense			96				223				577				911
Finance income			(207	)			(136	)			(297	)			(186	)
Taxes on income			0				(55	)			(198	)			(11	)
Net Profit (loss)			521				74				(741	)			(1,274	)
Basic profit (loss) per share attributable to shareholders			0.008				0.001				(0.012	)			(0.016	)
Diluted profit (loss) per share attributable to shareholders			0.008				0.001				(0.012	)			(0.016	)

ADCORE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed In CAD Thousands)

		December 31, 2024				December 31, 2023
CURRENT ASSETS:
Cash and cash equivalents			10,803				8,061
Trade accounts receivable, net			6,561				6,094
Other accounts receivable			624				548
Total current assets			17,988				14,703
NON-CURRENT ASSETS:
Property, plant and equipment, net			1,306				264
Intangible assets, net			4,137				4,081
Total non-current assets			5,443				4,345
Total assets			23,431				19,048
CURRENT LIABILITIES:
Trade accounts payable			8,156				4,980
Other accounts payable			2,355				2,152
Lease liability			200				-
Total current liabilities			10,711				7,132
NON-CURRENT LIABILITIES:
Accrued severance pay, net			10				11
Deferred tax liability, net			-				190
Lease liability			670				-
Total non-current liabilities			680				201
SHAREHOLDERS' EQUITY:
Share capital			11,760				10,782
Additional paid in capital			4,018				3,615
Treasury stocks			-1,043				-925
Actuarial reserve			-102				-95
Retained earnings			-2,593				-1,662
Total Equity			12,040				11,715
TOTAL LIABILITIES AND EQUITY			23,431				19,048

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/

Nick Campbell, CFA
Investor Relations
Telephone: 905-630-0148
Email: nickc@adcore.com

Martijn van den Bemd
Chief Partnerships Officer
Telephone: 647-497-5337
Email: martijn@adcore.com

SOURCE: Adcore Inc.

View the original press release on ACCESS Newswire

FAQ

What was Adcore's (ADCOF) revenue growth in Q4 2024?

Adcore's Q4 2024 revenue grew 24% year-over-year to CAD$11.2 million.

How much cash does Adcore (ADCOF) have on hand entering 2025?

Adcore has CAD$10.8 million in cash and cash equivalents as of December 31, 2024.

What was Adcore's (ADCOF) gross profit in Q4 2024?

Adcore achieved its highest-ever quarterly gross profit of CAD$3.9 million in Q4 2024.

How did Adcore's (ADCOF) regional performance vary in Q4 2024?

APAC revenue grew 58% to CAD$5.5M, EMEA increased 14% to CAD$3.8M, while North America decreased 14% to CAD$1.8M.

What was Adcore's (ADCOF) net income improvement in Q4 2024?

Net income increased 601% to $521 thousand, up from $74 thousand in Q4 2023.