Adcore Reports Record Third Quarter 2021 - Revenue Increases 153% YoY to CAD$10.4 million

Rhea-AI Summary

Adcore reported a significant financial performance for Q3 2021, with total revenue skyrocketing 153% year-over-year to CAD$10.4 million, up from CAD$4.1 million in Q3 2020. For the nine-month period, revenue surged 180% to CAD$26.0 million compared to CAD$9.3 million in 2020. Adjusted EBITDA for Q3 was CAD$585,000, a decrease from CAD$925,000 in Q3 2020, while it increased 23% year-to-date. The company launched the Adcore Marketing Cloud and continues to grow its Amphy.com platform. Cash reserves increased to CAD$15.5 million, highlighting robust working capital growth.

Positive

• Revenue increased 153% YoY in Q3 2021 to CAD$10.4 million.
• Nine-month revenue rose 180% YoY to CAD$26.0 million.
• Total working capital improved to CAD$13.2 million from CAD$7.8 million.
• Cash and cash equivalents grew to CAD$15.5 million from CAD$11.7 million.
• Launch of the Adcore Marketing Cloud consolidates technology solutions.
• Rapid growth of Amphy.com with 300+ teachers and 1,200 classes.

Negative

• Adjusted EBITDA decreased to CAD$585,000 from CAD$925,000 YoY in Q3.

TORONTO, ON / ACCESSWIRE / November 10, 2021 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ)(TSX:ADCO-WT), 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 and nine months ended September 30, 2021.

Third Quarter and Year-to-Date Highlights

• Total revenue for the third quarter of 2021 increased 153% to CAD$10.4 million compared to CAD$4.1 million in the third quarter of 2020. Total revenue for the nine months ended September 30, 2021, increased 180% to CAD$26.0 million compared to CAD$9.3 million in the same period in 2020.
• Adjusted EBITDA for the third quarter of 2021 was CAD$585,000 compared to CAD$925,000 for the same quarter in 2020. Adjusted EBITDA for the first nine months of 2021 was CAD$2.7 million, compared to CAD$2.2 million for the same period in 2020, an increase of 23%.
• As of September 30, 2021, total working capital was CAD$13.2 million compared to CAD$7.8 million at December 31, 2020, an increase of CAD$5.4 million.
• As of September 30, 2021, the Company's cash and cash equivalents were CAD$15.5 million, compared to CAD$11.7 million for the year ended December 31, 2020, an increase of CAD$3.8 million.
• Launched the Adcore Marketing Cloud, which brings together the Company's four applications under one scalable cloud-based platform.
• Continued growth of the Amphy.com platform, the world's most diverse 24/7 live learning marketplace. Adcore formally launched Amphy in July 2021 and has screened and onboarded 300+ teachers and is actively offering 1,200 classes across 80 categories to thousands of students to date.

* See consolidated statements of financial position and comprehensive income below and on the Company's SEDAR profile

"Our third quarter results reflect the continued tremendous momentum the Company has been experiencing since the fourth quarter of 2020. This is our fourth consecutive quarter achieving triple digit YoY growth, generating CAD$39.3 million TTM revenue and 189% YoY growth, establishing Adcore as one of the fastest growing public Ad-tech companies," commented Omri Brill, Chief Executive Officer of Adcore. "Ecommerce activity continues to grow exponentially, driving momentum and interest in our portfolio of technologies and services, as online retailers seek efficient and targeted advertising technology solutions to drive consumers to their products and demand measurement metrics to evaluate the success of each campaign. We are focused on continuing to capture the attention and business of the core online retail audience by surpassing their marketing technology needs."

Mr. Brill continued, "We had several milestone achievements during third quarter 2021, including the launch of the Adcore Marketing Cloud which brings together our four leading applications under one scalable cloud-based platform. By consolidating our solutions in one place, we have made it even easier for our customers and partners to take their digital marketing to the next level. The Adcore Marketing Cloud provides us with a more scalable platform and allows us to lay the foundation for potential third-party application integration and a much wider marketing solution vision."

"Additionally, we are experiencing rapid growth with Amphy.com, already the world's most diverse 24/7 live online learning marketplace and we are intent on expanding and enhancing the platform's offerings to attract an even broader worldwide audience. In October 2021, we launched a "social commerce" feature across all classes, allowing users to invite friends and family to share an Amphy class together with a significant discount to the original price. We expect this feature to further enhance the platform's brand recognition and drive increased new users to the site."

"We have also formed a United States subsidiary to establish a strong foothold from which to leverage the increasing demand for digital marketing solutions in the U.S." Mr. Brill continued. "Since becoming a public company, one of our main focuses has been to broaden our reach and expand our global operations. With the addition of our U.S. subsidiary, we now have seven companies across four continents. We are energized by the opportunities represented by the lucrative U.S. market, which is estimated to reach USD$304 billion in digital ad spend by 2025."

Mr. Brill concluded, "This is a very exciting time for Adcore as we strategically scale our business to become a leading provider of digital marketing solutions for ecommerce worldwide. We believe that our innovative technologies and growing geographic presence have uniquely positioned us within a global digital advertising market that is valued in the hundreds of billions of dollars."

Conference Call and Webcast Information

Adcore will host a conference call to discuss its third quarter 2021 financial results at 8:30 a.m. ET on Thursday, November 11, 2021.

To register for the conference call please click here or visit click.adcore.com/q3-conference-call

The conference call will include a brief statement by management and will focus on answering questions about Adcore's results during the third quarter, which can be sent in advance to invest@adcore.com.

USE OF NON-IFRS MEASURES

Adjusted EBITDA

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 and its subsidiary, by excluding certain items that have a disproportionate impact on Adcore's results for a particular period. Management's method of determining non-GAAP financial measures is evaluated periodically and may differ from other companies' methods and therefore may not be comparable to those used by other companies.

The following table presents the Adjusted EBITDA for the periods ended:

	Three months ended September 30, 2021	Three months ended September 30, 2020
	CAD$ in thousands (Unaudited)
Operating profit	27	717
Depreciation and amortization	216	213
Share-based payments	130	(5)
Offering, listing & global expansion	13	-
Other non-recurring items	11	-
Total Adjustments	558	208
Adjusted EBITDA	585	925

Adcore's third quarter 2021 financial statements are available on the Company's SEDAR profile at www.sedar.com. All amounts are in CAD and are based on Adcore's condensed consolidated interim financial statements for the three months ended September 30, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.

Amounts in this press release are in CAD based on the following USD to CAD average exchange rates for each of the relevant periods: For the three months ended September 30, 2021, and September 30, 2020, 0.80 and 0.73 respectively. Amounts in the below Income Statement and Balance Sheet are in CAD based on USD to CAD average exchange rates for each of the relevant periods in accordance with IRFS.

ABOUT ADCORE

Adcore is empowering entrepreneurs, advertisers, and the future of e-commerce through its advertising management and automation platform. By combining extensive industry knowledge and experience with its proprietary artificial intelligence engine, 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. In addition to being named numerous times on Deloitte's Fast 50 Technology list, Adcore is a certified Google Premier Partner, Microsoft Partner, Facebook 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/ or follow us on LinkedIn

ABOUT AMPHY

Founded in 2020 in the midst of the pandemic, Amphy is the world's most diverse 24/7 live online learning marketplace. With Amphy, learners can choose from over 1,200 classes across 80 categories to grow their passions and skills, expand their childrens' learning opportunities, and much more. Instructors on the Amphy platform join a vibrant virtual teacher community that promotes and supports their success through enrichment seminars, marketing and advertising, and a suite of tools that allow them to run their classes hassle-free and focus on their students. Amphy students gain access to high-quality, personalized classes accessible from 24/7, as well as join a growing community of lifelong learners.

For more on Amphy please visit - https://www.amphy.com/ or follow us on LinkedIn, Facebook, Instagram and YouTube.

FORWARD-LOOKING STATEMENTS

This press release contains 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/

Martijn van den Bemd,
GM North America
Telephone: 647-497-5337
Email: martijn@adcore.com

U.S. Investor Relations
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Telephone: 203-972-9200
Email: jnesbett@imsinvestorrelations.com

ADCORE INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

			September 30, 2021	December 31, 2020
			CAD $ in thousands
CURRENT ASSETS:
Cash and cash equivalents			15,510	11,742
Trade accounts receivable, net			3,726	2,378
Other accounts receivable			176	88
Total current assets			19,412	14,208
NON-CURRENT ASSETS:
Long term deposit			36	96
Property, plant and equipment, net			343	525
Intangible assets, net			2,413	2,233
Total non-current assets			2,792	2,854
Total assets			22,204	17,062
CURRENT LIABILITIES:
Trade accounts payable			5,668	3,861
Other accounts payable			522	1,082
Deferred Revenues			-	1,336
Lease liability			66	140
Total current liabilities			6,256	6,419
NON-CURRENT LIABILITIES:
Accrued severance pay, net			65	67
Deferred tax liability, net			284	101
Derivative liability - warrants			1,255	867
Lease liability			-	135
Long term loan			-	250
Total non-current liabilities			1,604	1,420
SHAREHOLDERS' EQUITY:
Share capital			*	*
Additional paid in capital			12,753	6,392
Actuarial reserve			(106)	(111)
Retained earnings			1,697	2,942
Total Equity			14,344	9,223
TOTAL LIABILITIES AND EQUITy			22,204	17,062

ADCORE INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

		Three months ended September 30, 2021	Three months ended September 30, 2020		Nine months ended September 30, 2021	Nine months ended September 30, 2020
		CAD $ in thousands*
Revenues		10,411	4,121		25,999	9,322
Cost of revenues		8,055	1,635		18,412	2,867
Gross profit		2,356	2,486		7,587	6,455
Research and development expenses		346	334		1,135	754
Selling ,general and administrative expenses		1,983	1,435		6,136	3,740
Operating profit		27	717		316	1,961
Finance expenses		236	155		917	288
Finance income		-	(80)		(150)	(86)
Profit (Loss) before taxes on income		(209)	642		(451)	1,759
Tax expenses		114	99		632	254
Total comprehensive Profit (Loss) for the period		(323)	543		(1,083)	1,505
Basic Profit (Loss) per share attributable to shareholders		(0.005)	0.010		(0.018)	0.027
Diluted Profit (Loss) per share attributable to shareholders		(0.005)	0.009		(0.018)	0.025
Weighted average number of ordinary shares		63,193,570	55,929,410	60,357,349			55,708,706
Weighted average number of dilutive ordinary shares		63,193,570	59,717,532	60,357,349			59,496,828

SOURCE: Adcore Inc.

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https://www.accesswire.com/672234/Adcore-Reports-Record-Third-Quarter-2021--Revenue-Increases-153-YoY-to-CAD104-million

FAQ

What were Adcore's total revenues for Q3 2021?

Adcore's total revenue for Q3 2021 was CAD$10.4 million, a 153% increase year-over-year.

How did Adcore perform in the first nine months of 2021?

For the nine months ended September 30, 2021, Adcore reported total revenue of CAD$26.0 million, up 180% from CAD$9.3 million in the same period in 2020.

What is the current cash position of Adcore?

As of September 30, 2021, Adcore had cash and cash equivalents of CAD$15.5 million, compared to CAD$11.7 million at the end of 2020.

What is the significance of the Adcore Marketing Cloud launch?

The launch of the Adcore Marketing Cloud consolidates the company’s four applications into one scalable platform, enhancing customer engagement.

What is Amphy.com and how is it growing?

Amphy.com is a live learning marketplace that has onboarded over 300 teachers and offers 1,200 classes across 80 categories, facilitating significant user engagement.