Adcore Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Adcore Inc. (TSX:ADCO, OTCQX:ADCOF) reported its Q2 2024 financial results, showing a 4% decrease in revenue to CAD$6.6 million compared to Q2 2023. Despite this, the company maintained robust gross margins of 44%, up from 43% in the previous year. Notably, North America revenue grew by 22% to CAD$2 million, while EMEA revenue declined by 27%. The company's Media Blast app, launched 12 months ago, has already achieved an ARR of CAD$1 million. Adcore's CEO, Omri Brill, emphasized the company's strong financial position to execute its long-term growth strategy and develop its digital marketing technology. The adjusted EBITDA for Q2 2024 was negative CAD$173,000, compared to positive CAD$112,000 in Q2 2023.

Positive

• Gross margin increased to 44% from 43% year-over-year
• North America revenue grew by 22% to CAD$2 million
• Media Blast app achieved CAD$1 million ARR within first year
• APAC revenue increased by 3% to CAD$2.7 million

Negative

• Overall revenue decreased by 4% to CAD$6.6 million
• EMEA revenue declined by 27% to CAD$1.9 million
• Adjusted EBITDA turned negative at CAD$173,000
• Net loss increased to CAD$691,000 from CAD$524,000 in Q2 2023

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

TORONTO, ON / ACCESSWIRE / August 14, 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 invest@adcore.com.

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.

ADCORE INC.
ADJUSTED EBITDA
(Expressed in CAD thousands)

		Three Months Ended
		June 30, 2024 $				June 30, 2023 $
Operating profit			(779	)			(406	)
Depreciation and amortization			380				201
Share-based payments			16				126
Other non-recurring items			210				191
Total Adjustments			606				518
Adjusted EBITDA			(173	)			112

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

		Three Months Ended
		June 30 2024				June 20 2023
Revenues			6,592				6,864
Cost of revenues			3,679				3,918
Gross profit			2,913				2,946
Research and development expenses			579				326
Selling, general and administrative expenses			3,113				3,026
Operating profit (loss)			(779	)			(406	)
Finance expenses			169				132
Finance income			(31	)			(19	)
Profit (loss) before taxes on income			(917)				(519	)
Tax Expenses (income)			(226	)			5
Net Profit (Loss)			(691	)			(524	)
Basic profit per share attributable to shareholders			(0.011	)			(0.009	)
Diluted profit per share attributable to shareholders			(0.011	)			(0.009	)

ADCORE INC.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Expressed in CAD thousands)

		June 30, 2024				December 31, 2023
		CAD$ in thousands
CURRENT ASSETS:
Cash and cash equivalents			7,317				8,061
Trade accounts receivable, net			4,272				6,094
Other accounts receivable			410				548
Total current assets			11,999				14,703
NON-CURRENT ASSETS:
Property, plant and equipment, net			1,352				264
Intangible assets, net			4,082				4,081
							-
Total non-current assets			5,434				4,345
Total assets			17,433				19,048
CURRENT LIABILITIES:
Trade accounts payable			4,126				4,980
Other accounts payable			1,353				2,152
Lease liability			174				-
Total current liabilities			5,653				7,132
NON-CURRENT LIABILITIES:
Accrued severance pay, net			10				11
Deferred tax liability, net			-				190
Lease liability			718				-
Total non-current liabilities			728				201
SHAREHOLDERS' EQUITY:
Share capital			11,176				10,782
Additional paid in capital			3,786				3,615
Treasury stocks			(991	)			(925	)
Actuarial reserve			(99	)			(95	)
Retained earnings (losses)			(2,820	)			(1,662	)
Total Equity			11,052				11,715
TOTAL LIABILITIES AND EQUITY			17,433				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		Martijn van den Bemd		Investor Relations Europe
Investor Relations		Chief Partnerships Officer		Dr. Eva Reuter
				Dr. Reuter Investor Relations
Telephone: 905-630-0148		Telephone: 647-497-5337		Telephone: +49 (0) 69 1532 5857
Email: nickc@adcore.com		Email: martijn@adcore.com		Email: e.reuter@dr-reuter.eu

SOURCE: Adcore Inc.

View the original press release on accesswire.com

FAQ

What was Adcore's revenue in Q2 2024?

Adcore's revenue for Q2 2024 was CAD$6.6 million, a 4% decrease compared to CAD$6.9 million in Q2 2023.

How did Adcore's North America revenue perform in Q2 2024?

Adcore's North America revenue grew by 22% in Q2 2024, reaching CAD$2 million compared to CAD$1.7 million in Q2 2023.

What was Adcore's (ADCOF) gross margin in Q2 2024?

Adcore's gross margin for Q2 2024 was 44%, slightly up from 43% in Q2 2023.

How much ARR did Adcore's Media Blast app generate in its first year?

Adcore's Media Blast app, launched 12 months ago, achieved an ARR of CAD$1,000,000 within its first year.