Robust Gross Profit Increase 13% YoY & Organic Growth Continues Globally
TORONTO, ON / ACCESSWIRE / May 15, 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 March 31, 2024.
Omri Brill, Adcore Founder and CEO, commented "We are pleased to report a strong performance in the first quarter of 2024, where our focus on operational efficiency and strategic growth has clearly borne fruit. Notably, our gross profit surged by 13% to CAD$3.1 million, and our gross margin improved significantly from 40% to 45%, reflecting our commitment to enhancing profitability and delivering value. Furthermore, our Adjusted EBITDA saw an exceptional increase of 196%, demonstrating our ability to translate operational gains into substantial financial outcomes. These achievements are testament to the hard work of our team and our continued dedication to excellence in serving our customers across all markets." Mr. Brill continued "We see the first quarter as a leading indicator for the remainder of the year, we expect continued strength in our global expansion and further enhancements in operating efficiencies."
Mr. Brill continued "In addition, we are pleased to announce that we have increased our sales staff globally since the start of the year. Our enhanced operational efficiency and health of our balance sheet has put us in a strong position to rapidly grow the business internally."
First Quarter Highlights
CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host a conference call and webcast to discuss these results on May 15th at 10 AM ET.
To register for the conference call/webcast please click here or visit: https://click.adcore.com/q1-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 March 31, 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 | ||||||||
March 31, 2024 $ | March 31, 2023 $ | |||||||
Operating profit | (168 | ) | (245 | ) | ||||
Depreciation and amortization | 344 | 229 | ||||||
Share-based payments | 25 | 84 | ||||||
Other non-recurring items | - | - | ||||||
Total Adjustments | 369 | 313 | ||||||
Adjusted EBITDA | 201 | 68 |
ADCORE INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in CAD thousands)
Three months ended | ||||||||
March 31, 2024 $ | March 31, 2023 $ | |||||||
Revenues | 6,866 | 6,822 | ||||||
Cost of revenues | 3,760 | 4,079 | ||||||
Gross profit | 3,106 | 2,743 | ||||||
Research and development expenses | 612 | 419 | ||||||
Selling, general and administrative expenses | 2,662 | 2,569 | ||||||
Operating profit (loss) | (168 | ) | (245 | ) | ||||
Finance expenses | 230 | 375 | ||||||
Finance income | (30 | ) | (25 | ) | ||||
Loss before taxes on income | (368 | ) | (595 | ) | ||||
Tax Expenses | 31 | 14 | ||||||
Net Profit (Loss) | (399 | ) | (609 | ) | ||||
Basic profit per share attributable to shareholders | (0.005 | ) | (0.009 | ) | ||||
Diluted profit per share attributable to shareholders | (0.005 | ) | (0.009 | ) |
ADCORE INC.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Expressed in CAD thousands)
March 31, 2024 | December 31, 2023 | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 8,009 | 8,061 | ||||||
Trade accounts receivable, net | 4,464 | 6,094 | ||||||
Other accounts receivable | 560 | 548 | ||||||
Total current assets | 13,033 | 14,703 | ||||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 253 | 264 | ||||||
Intangible assets, net | 4,113 | 4,081 | ||||||
Total non-current assets | 4,366 | 4,345 | ||||||
Total assets | 17,399 | 19,048 | ||||||
CURRENT LIABILITIES: | ||||||||
Trade accounts payable | 4,137 | 4,980 | ||||||
Other accounts payable | 1,403 | 2,152 | ||||||
Lease liability | - | - | ||||||
Total current liabilities | 5,540 | 7,132 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Accrued severance pay, net | 11 | 11 | ||||||
Deferred tax liability, net | 226 | 190 | ||||||
Derivative liability - warrants | - | - | ||||||
Total non-current liabilities | 237 | 201 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 11,058 | 10,782 | ||||||
Additional paid in capital | 3,732 | 3,615 | ||||||
Treasury stocks | (967 | ) | (925 | ) | ||||
Actuarial reserve | (97 | ) | (95 | ) | ||||
Retained earnings | (2,104 | ) | (1,662 | ) | ||||
Total Equity | 11,622 | 11,715 | ||||||
TOTAL LIABILITIES AND EQUITY | 17,399 | 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.
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