Adcore Reports Third Quarter 2024 Financial Results

Rhea-AI Summary

Adcore reported Q3 2024 financial results with mixed performance across regions. Revenue decreased 5% to CAD$7.8 million, while gross profit increased 12% to CAD$3.7 million with improved margins of 47%. North America and APAC regions showed strong growth of 27% and 26% respectively, while EMEA declined 39%. Adjusted EBITDA rose to CAD$282,000 from CAD$240,000 year-over-year. The company reported a net loss of CAD$172,000 and operating cash flow usage of CAD$488,000. Working capital stood at CAD$6.2 million, down from CAD$7.6 million at the end of 2023.

Positive

• Gross profit increased 12% to CAD$3.7 million
• Gross margin improved to 47% from 40% YoY
• North America revenue grew 27% to CAD$2.1 million
• APAC revenue increased 26% to CAD$3.35 million
• Adjusted EBITDA improved to CAD$282,000 from CAD$240,000

Negative

• Overall revenue declined 5% to CAD$7.8 million
• EMEA revenue decreased 39% to CAD$2.4 million
• Net loss of CAD$172,000
• Operating cash flow negative at CAD$488,000
• Working capital decreased to CAD$6.2 million from CAD$7.6 million

Continued Gross Margin Improvement, Double Digit Growth in Both North America & APAC

TORONTO, ON / ACCESSWIRE / November 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 September 30, 2024.

Omri Brill, Adcore Founder and CEO, commented "We are thrilled to report another strong quarter of growth and momentum across Adcore's global markets. Our 27% revenue growth in North America and 26% in APAC underscore the effectiveness of our strategic focus on expanding into key regions. We are particularly proud of the significant improvement in our gross profit, which reached CAD$3.7 million, up 12% from last year and the increase in gross margins to 47%, a clear reflection of our commitment to operational efficiency and sustainable growth."

Mr. Brill continued, "Our adjusted EBITDA also saw a positive increase, rising to CAD$282 thousand for Q3 2024, showcasing our disciplined approach to profitability and financial stability. Looking ahead, we remain committed to our four strategic pillars-leveraging Technology & AI, embracing Low Touch DIY solutions, creating Synergies, and expanding into Enterprise & Aggregators. These focus areas will continue to drive long-term value for our clients, stakeholders, and the broader Adcore community as we work to set new standards in digital advertising."

Third Quarter Highlights

• Revenue for the three months ended September 30, 2024, was CAD$7.8 million compared to CAD$8.2 million for the three months ended September 30, 2023, a 5% decrease.

• Gross profit for the three months ended September 30, 2024, was CAD$3.7 million compared to CAD$3.3 million for the three months ended September 30, 2023, a 12% increase.

• Gross margin for the three months ended September 30, 2024, was 47% compared to 40% for the three months ended September 30, 2023.

• Adjusted EBITDA for the three months ended September 30, 2024, was CAD$282,000 compared to CAD$240,000, for the three months ended September 30, 2023.

• North America revenue for the three months ended September 30, 2024, was CAD$2.1 million compared to $1.65 million for the three months ended September 30, 2023, a 27% increase.

• EMEA revenue for the three months ended September 30, 2024, was CAD$2.4 million compared to CAD$3.91 million for the three months ended September 30, 2023, a 39% decrease.

• APAC revenue for the three months ended September 30, 2024, was CAD$3.35 million compared to $2.66 million for the three months ended September 30, 2023, a 26% increase.

• Net cash flow used in operating activities for the three months ended September 30, 2024, amounted to CAD$488 thousands, compared to cash generated from operating activities in the amount of CAD$90 thousands for the three months ended September 30, 2023.

• Working Capital for the three months ended September 30, 2024, was CAD$6.2 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 November 14th at 10AM ET.

To register for the conference call/webcast please click here or visit: https://investors.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. 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 September 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
		September30, 2024				September 30, 2023
Operating (loss) profit			(122	)			-
Depreciation and amortization			388				208
Share-based payments			14				32
Other non-recurring items			2				-
Total Adjustments			404				240
Adjusted EBITDA			282				240

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

		Three Months Ended
		September30, 2024				September30, 2023
Revenues			7,844				8,229
Cost of revenues			4,189				4,971
Gross profit			3,655				3,258
Research and development expenses			545				313
Selling, general and administrative expenses			3,232				2,945
Operating profit (loss)			(122	)			-
Finance expenses			81				169
Finance income			(29	)			(5	)
Loss before taxes on income			(174	)			(169	)
Tax Expenses (income)			(2	)			26
Net Profit (Loss)			(172	)			(189	)
Basic profit per share attributable to shareholders			(0.003	)			(0.003	)
Diluted profit per share attributable to shareholders			(0.003	)			(0.003	)

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

		September30, 2024				December 31, 2023
		CAD$ in thousands
CURRENT ASSETS:
Cash and cash equivalents			6,713				8,061
Trade accounts receivable, net			5,576				6,094
Other accounts receivable			444				548
Total current assets			12,733				14,703
NON-CURRENT ASSETS:
Property, plant and equipment, net			1,279				264
Intangible assets, net			3,949				4,081
Total non-current assets			5,228				4,345
Total assets			17,961				19,048
CURRENT LIABILITIES:
Trade accounts payable			3,722				4,980
Other accounts payable			2,619				2,152
Lease liability			172				-
Total current liabilities			6,513				7,132
NON-CURRENT LIABILITIES:
Accrued severance pay, net			11				11
Deferred tax liability, net			-				190
Lease liability			677				-
Total non-current liabilities			688				201
SHAREHOLDERS' EQUITY:
Share capital			11,029				10,782
Additional paid in capital			3,751				3,615
Treasury stocks			(978	)			(925	)
Actuarial reserve			(97	)			(95	)
Retained earnings			(2,945	)			(1,662	)
Total Equity			10,760				11,715
TOTAL LIABILITIES AND EQUITY			17,961				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		Chief Partnerships Officer
Telephone: 905-630-0148		Telephone: 647-497-5337
Email: nickc@adcore.com		Email: martijn@adcore.com

SOURCE: Adcore Inc.

View the original press release on accesswire.com

FAQ

What was Adcore's (ADCOF) revenue in Q3 2024?

Adcore reported revenue of CAD$7.8 million in Q3 2024, representing a 5% decrease from CAD$8.2 million in Q3 2023.

How did Adcore's (ADCOF) gross margin perform in Q3 2024?

Adcore's gross margin improved to 47% in Q3 2024, up from 40% in Q3 2023.

What was Adcore's (ADCOF) performance in North America for Q3 2024?

Adcore's North America revenue grew 27% to CAD$2.1 million in Q3 2024 compared to CAD$1.65 million in Q3 2023.

What was Adcore's (ADCOF) adjusted EBITDA in Q3 2024?

Adcore reported adjusted EBITDA of CAD$282,000 in Q3 2024, up from CAD$240,000 in Q3 2023.