Adcore Reports Strong Second Quarter Financial Results
- Revenues increased by 33% compared to Q2 2022.
- Gross profit increased by 41%.
- Gross margin for the quarter was 43%.
- North America experienced a 16% increase in revenue.
- EMEA saw an impressive 50% growth in revenue.
- APAC region saw a notable 29% increase in revenue compared to Q2 2022.
- Adjusted EBITDA improved to CAD$112,000 compared to a loss of CAD$30,000 in Q2 of the prior year.
- Cash flow used for operating activities reduced by 70% compared to Q2 2022.
- The company concluded the quarter with CAD$6.2 million in cash and a total working capital of CAD$7.8 million.
- None.
Revenues have increased by
TORONTO, ON / ACCESSWIRE / August 9, 2023 / 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 ending June 30, 2023.
Adcore CEO, Omri Brill, commented, "I am very proud to report second-quarter results for 2023, a quarter in which our revenues grew to CAD
Our gross margin this past quarter was
Our Adjusted EBITDA continues to improve as we generated CAD
We concluded the quarter with CAD
Yatir Sadot, CFO at Adcore, commented, "The impressive Q2 performance marks a remarkable first half of 2023, highlighted by consistent and accelerated revenue growth. This quarter, not only did we achieve robust revenue growth, but our Adjusted EBITDA also surpassed expectations. Furthermore, as our revenues expanded in the first half of 2023, we shifted towards a more cost-efficient operational model. We anticipate sharing our projections for the third quarter later in this current quarter."
Second Quarter Highlights:
- Revenue for the three months ended June 30, 2023, was CAD
$6.9 million compared to CAD$5.2 million for the three months ended June 30, 2022, a33% increase. - Gross profit for the three months ended June 30, 2023, was CAD
$3 million compared to CAD$2.1 million for the three months ended June 30, 2022, a41% increase. - Gross margin for the three months ended June 30, 2023, was
43% compared to40% for the three months ended June 30, 2022. - Adjusted EBITDA for the three months ended June 30, 2023, was CAD
$112,000 compared to CAD$(30,000) , for the three months ended June 30, 2022. - North America revenue for the three months ended June 30, 2023, was CAD
$1.67 million compared to CAD$1.44 million for the three months ended June 30, 2022, a16% increase. - EMEA revenue for the three months ended June 30, 2023, was CAD
$2.61 million compared to CAD$1.74 million for the three months ended June 30, 2022, a50% increase. - APAC revenue for the three months ended June 30, 2023, was CAD
$2.59 million compared to CAD$2 million for the three months ended June 30, 2022, a29% increase. - A reduction of
70% in cash flow used for operating activities compared to the three months ended June 30, 2022. - Total accumulated NCIB purchases the company made until July 31, 2023, was 1,669,500 shares.
- Working Capital for the six months ended June 30, 2023, was CAD
$7.8 million compared to CAD$9.2 million as of December 31, 2022.
Third Quarter 2023 Guidance
The Company expects to release third quarter 2023 guidance later this month or early September as it gains more visibility on its financial performance for the quarter.
Conference Call and Webcast Information
The Company will host a conference call and webcast to discuss these results on August 10th at 10AM ET.
To register for the conference call/webcast click here or visit: https://click.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 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 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 reconciles the non-IFRS measure to the most comparable IFRS measure for the three months ended June 30, 2023. 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.
Adjusted EBITDA:
Three months ended June 30, 2023 | Three months ended June 30, 2022 | |||||||
Operating profit (loss) | (406 | ) | (587 | ) | ||||
Depreciation and amortization | 201 | 269 | ||||||
Share-based payments | 126 | 123 | ||||||
Other non-recurring items | 191 | 165 | ||||||
Total Adjustments | 518 | 557 | ||||||
Adjusted EBITDA | 112 | (30 | ) |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended June 30, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
CAD $ in thousands | ||||||||||||||||
Revenue | 6,864 | 5,176 | 13,686 | 9,870 | ||||||||||||
Cost of revenues | 3,918 | 3,083 | 7,997 | 5,750 | ||||||||||||
Gross profit | 2,946 | 2,093 | 5,689 | 4,120 | ||||||||||||
Research and development, net | 326 | 363 | 745 | 753 | ||||||||||||
Selling, general and administrative expenses | 3,026 | 2,317 | 5,595 | 4,399 | ||||||||||||
Operating profit (loss) | (406 | ) | (587 | ) | (651 | ) | (1,032 | ) | ||||||||
Finance expense | 132 | 817 | 507 | 1,430 | ||||||||||||
Finance income | (19 | ) | (199 | ) | (44 | ) | (397 | ) | ||||||||
Taxes on income | 5 | 19 | 19 | 19 | ||||||||||||
Net Profit (loss) | (524 | ) | (1,224 | ) | (1,133 | ) | (2,084 | ) | ||||||||
Basic loss per share attributable to shareholders | (0.009 | ) | (0.019 | ) | (0.018 | ) | (0.031 | ) | ||||||||
Diluted loss per share attributable to shareholders | (0.009 | ) | (0.019 | ) | (0.018 | ) | (0.031 | ) |
ADCORE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
June 30, 2023 | December 31, 2022 | |||||||
CAD$ in thousands | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 6,242 | 8,830 | ||||||
Trade accounts receivable, net | 4,988 | 6,264 | ||||||
Other accounts receivable | 478 | 430 | ||||||
Total current assets | 11,708 | 15,524 | ||||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 418 | 592 | ||||||
Intangible assets, net | 3,923 | 3,564 | ||||||
Total non-current assets | 4,341 | 4,156 | ||||||
Total assets | 16,049 | 19,680 | ||||||
CURRENT LIABILITIES: | ||||||||
Trade accounts payable | 2,605 | 4,829 | ||||||
Other accounts payable | 1,231 | 1,195 | ||||||
Lease liability | 118 | 254 | ||||||
Total current liabilities | 3,954 | 6,278 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Accrued severance pay, net | 11 | 11 | ||||||
Deferred tax liability, net | 220 | 217 | ||||||
Derivative liability - warrants | - | - | ||||||
Total non-current liabilities | 231 | 228 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 10,807 | 11,052 | ||||||
Additional paid in capital | 3,599 | 3,466 | ||||||
Treasury stocks | (897 | ) | (821 | ) | ||||
Actuarial reserve | (95 | ) | (97 | ) | ||||
Retained earnings | (1,550 | ) | (426 | ) | ||||
Total Equity | 11,864 | 13,174 | ||||||
TOTAL LIABILITIES AND EQUITY | 16,049 | 19,680 |
ABOUT ADCORE
Adcore is a leading AI-powered marketing and online learning 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 and TikTok Partner.
Adcore also runs Amphy, the world's most diverse 24/7 live online learning marketplace. Learners can choose from thousands of classes across hundreds of categories to grow their passions, skills and expand their children's learning opportunities. 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 that are accessible 24/7, while joining a growing community of lifelong learners.
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. For more information about Amphy please visit https://www.amphy.com/ and https://blog.amphy.com/or follow us on LinkedIn, Facebook, Instagram and YouTube.
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/
Martijn van den Bemd
Chief Partnerships Officer
Telephone: 647-497-5337
Email: martijn@adcore.com
Investor Relations
Glen Akselrod
Bristol Capital
Telephone: 905-326-1888 ext 1
Email: info@bristolir.com
Investor Relations Europe
Dr. Eva Reuter
Dr. Reuter Investor Relations
Telephone: +49 (0) 69 1532 5857
Email: e.reuter@dr-reuter.eu
SOURCE: Adcore Inc.
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