Adcore Reports Record Third Quarter 2020 Results Revenue More Than Doubles Since Last Quarter
12 November 2020
Generated $4.1 Million in Revenue, $925,000 in Adjusted EBITDA, and increased working capital by $1.5 million
TORONTO, ONTARIO – November 12, 2020 – Adcore Inc. (the “Company” or “Adcore”) (TSXV:ADCO) (FSE:ADQ), a leading provider of machine-learning (“ML” and “AI”) powered advertising technologies used by digital agencies and advertisers to leverage digital marketing in an effortless and accessible way (“Effortless Advertising”), announced today its financial results for the three and nine months ended September 30, 2020.
Third Quarter 2020 Highlights (Unaudited)
- Total revenue was $4.1 million compared to $4 million for the same period in 2019, an increase of 3%, and a 105% increase since the last quarter.
- Revenue less media costs (gross margin) was 60% compared to 64% for the same period in 2019, a decrease of 4%
- Adjusted EBITDA (see “Use of Non-IFRS Measures”) was $925,000 compared to $1.46 million for the same period in 2019, a decrease of 37%
- As of September 30, 2020, total working capital was $7 million compared to $5.5 million for the year ended Dec 31, 2019, an increase of $1.5 million or 27%
- As of September 30, 2020, the Company’s cash and cash equivalents were $6.1 million, compared to $4.9 million for the year ended Dec 31, 2019, an increase of $1.2 million
- Continued to invest in its global sales and marketing team and industry-leading technology, including developing an AI products re-cataloging feature for FEEDITOR
Omri Brill, Chief Executive Officer, commented on the results, “Following a challenging second quarter due to the COVID-19 pandemic, we’ve experienced a dramatic rebound and couldn’t be prouder to share a record third quarter with our valued investors. During the third quarter, Adcore saw growth across the board from all clients in all regions. We are pleased to deliver strong results on both the top and bottom lines. The Company’s profitability coupled with an increase in cash, is proof again of the robustness and versatility of our business model.”
Mr. Brill continued, “We’re only beginning to see the first fruits of our labor from the Company’s strategic decision to focus on e-commerce and technology. During the third quarter, we saw a dramatic increase in e-commerce related activity coming from all regions. As our product roadmap progresses, we expect to release exciting updates and new features in the coming months, making our technology offering even stronger.”
Mr. Brill concluded, “As more and more businesses across the globe undergo a major digital transformation, Adcore is well-positioned to monetize this tectonic change. The Company believes this trend will accelerate in the fourth quarter and well into 2021.”
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, 2020
Three months ended September 30, 2019
CAD$ in thousands (Unaudited)
Operating profit
717
1,081
Depreciation and Amortization
213
112
Share-Based Payments
(5)
141
Global Expansion & Relocation Expenses
–
128
Total Adjustments
208
381
Adjusted EBITDA
925
1,463
Adcore’s third-quarter 2020 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 and nine months ended September 30, 2020, 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, 2020 and 2019, 0.73, and 0.76 respectively.
ABOUT ADCORE
Adcore is a leading provider of machine-learning powered advertising technologies used by digital agencies and advertisers to leverage digital marketing in an effortless and accessible way (“Effortless Advertising”) with the goal of scaling activity and maximizing ROI.
By combining extensive industry knowledge and experience with its proprietary artificial intelligence engine, Adcore offers a unique digital marketing solution. In addition to being named numerous times on Deloitte’s Fast 50 Technology list, Adcore is a certified Google Premier Partner, Microsoft Partner, Facebook Marketing Partner, and TikTok Partner.
Established in 2006 and majority-owned by its founder and CEO, Mr. Omri Brill, the Corporation and its subsidiaries employs over thirty people in its headquarters in Tel Aviv, Israel and satellite offices in Melbourne, Australia, Toronto, Ontario and Winnipeg, Manitoba.
For more information about Adcore, please visit Adcore’s Investor Relations website
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including statements about the Corporation. 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 Corporation 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 Corporation 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.
Website: www.adcore.com/investors/
Omri Brill, CEO
Telephone: 647-497-5337
Email: info@adcore.com
Martijn van den Bemd, GM North America
Telephone: 647-497-5337
Email:martijn@adcore.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.