Company maintains robust financial health and achieves profitability in Q4, laying a foundation for continued strong performance in 2024
TORONTO, ON / ACCESSWIRE / March 20, 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 and twelve months ended December 31, 2023.
"In 2023, Adcore saw continued strong growth, marking a year where our strategic initiatives translated into tangible success. I'm thrilled to report a significant revenue increase during the year, demonstrating our competitive edge and resilience in the dynamic digital marketing landscape," stated Omri Brill, CEO of Adcore. "Throughout 2023, we witnessed consistent enhancements in key financial metrics including revenue, gross profit, net income, and an improvement of cash flow from operating activities. This was a result of our relentless focus on optimizing ad spend efficiency for our growing customer base while simultaneously streamlining our financial expenditures to bolster our bottom line."
Mr. Brill added, "Our efforts have not only expanded Adcore's customer footprint but have also fostered strategic partnerships that amplify our market presence and introduce cutting-edge solutions. Our commitment to maintaining gross margins within our forecasted range has been crucial in achieving successive gross profit improvements. With a positive net income of CAD$74K in the fourth quarter, we're poised to maintain this upward trajectory into 2024, advancing towards our goal of becoming a leading force in the global digital marketing arena."
"Furthermore, our robust cash position, exceeding CAD$8 million, empowers us to further scale our operations and enrich our client engagements. This financial stability, coupled with our geographic market expansions, sets a solid foundation for sustained growth. The momentum built in the latter half of 2023 is a beacon for what's to come. We anticipate this positive trend to enhance shareholder value, reflecting our ongoing financial improvements and solidifying confidence in our strategic direction. As we look to 2024, I am optimistic about setting new records and achieving unprecedented success. This journey, fueled by the passion and dedication of our team, reinforces our path to becoming a global e-commerce powerhouse," concluded Mr. Brill.
Full-Year Highlights:
- Total revenue for the year ended December 31, 2023, was CAD$31.2 million compared to CAD$26.6 million in 2022, a 17% increase.
- Gross margin for the year ended December 31, 2023, was 41% compared to 43% gross margins for the year ended December 31, 2022, a 5% decrease.
- Adjusted EBITDA for the year ended December 31, 2023, was CAD$907 thousand, compared to CAD$1.4 million in 2022, a 35% decrease.
- Cash flows from operating activities for the year ended December 31, 2023, were CAD$1.1 million, compared to cash flows used for operating activities in the amount of CAD$3.2 million for the year ended December 31, 2022.
- As of December 31, 2023, total working capital was CAD$7.6 million, compared to CAD$9.2 million on December 31, 2022, an 18% decrease.
- As of December 31, 2023, the Company's cash and cash equivalents were CAD$8 million, compared to CAD$8.8 million for the year ended December 31, 2022.
Fourth Quarter Highlights:
- Revenue for the three months ended December 31, 2023, was CAD$9 million compared to CAD$8.8 million for the three months ended December 31, 2023, a 3% increase.
- Gross profit for the three months ended December 31, 2023, was CAD$3.7 million compared to CAD$3.8 million for the three months ended December 31, 2022, a 3% decrease.
- Gross margin for the three months ended December 31, 2023, was 41% compared to 43% for the three months ended December 31, 2022.
- Adjusted EBITDA for the three months ended December 31, 2023, was CAD$483 compared to CAD$605, for the three months ended December 31, 2022
- North America revenue for the three months ended December 31, 2023, was CAD$2.1 million compared to CAD$1.9 million for the three months ended December 31, 2022, an 11% increase.
- EMEA revenue for the three months ended December 31, 2023, was CAD$3.4 million compared to CAD$3.3 million for the three months ended December 31, 2022, a 1% increase.
- APAC revenue for the three months ended December 31, 2023, was CAD$3.5 million compared to CAD$3.5 million for the three months ended December 31, 2022.
- Total accumulated NCIB purchases the company made until 31/01/2024 was 1,874,500 shares.
*Additional information concerning Adcore's audited consolidated financial statements and related management's discussion and analysis for the three and twelve months ended December 31, 2023, can be found below and on the Company's profile at www.sedar.com.
CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host a conference call and webcast to discuss these results on March 20th at 10AM ET.
To register for the conference call/webcast please click here or visit: https://click.adcore.com/q4-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 [email protected].
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 and twelve months ended December 31, 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.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three months ended December 31, 2023 | Three months ended December 31, 2022 | Twelve months ended December 31, 2023 | Twelve months ended December 31, 2022 | |||||||||||||
Operating profit (loss) | 106 | 87 | (560 | ) | (590 | ) | ||||||||||
Depreciation and amortization | 387 | 234 | 1,034 | 1,065 | ||||||||||||
Share-based payments | (10 | ) | 93 | 239 | 505 | |||||||||||
Other non-recurring items | - | 191 | 194 | 404 | ||||||||||||
Total Adjustments | 377 | 518 | 1,467 | 1,974 | ||||||||||||
Adjusted EBITDA | 483 | 605 | 907 | 1,384 | ||||||||||||
| Three months ended December 31, | Three months ended December 31, | year ended December 31, | year ended December 31, | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| CAD $ in thousands | ||||||||||||||||
Revenue | 8,989 | 8,766 | 31,218 | 26,649 | ||||||||||||
Cost of revenues | 5,333 | 5,027 | 18,485 | 15,158 | ||||||||||||
Gross profit | 3,656 | 3,739 | 12,733 | 11,491 | ||||||||||||
Research and development, net | 585 | 429 | 1,660 | 1,688 | ||||||||||||
Selling, general and administrative expenses | 2,965 | 3,223 | 11,633 | 10,393 | ||||||||||||
Operating profit (loss) | 106 | 87 | (560 | ) | (590 | ) | ||||||||||
Finance expense | 223 | 671 | 911 | 2,771 | ||||||||||||
Finance income | (136 | ) | (80 | ) | (186 | ) | (390 | ) | ||||||||
Taxes on income | (55 | ) | 16 | (11 | ) | 55 | ||||||||||
Net Profit (loss) | 74 | (520 | ) | (1,274 | ) | (3,026 | ) | |||||||||
Basic loss per share attributable to shareholders | 0.001 | (0.008 | ) | (0.016 | ) | (0.036 | ) | |||||||||
Diluted loss per share attributable to shareholders | 0.001 | (0.008 | ) | (0.016 | ) | (0.036 | ) | |||||||||
ADCORE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| December 31, 2023 | December 31, 2022 | |||||||
| CAD$ in thousands | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 8,061 | 8,830 | ||||||
Trade accounts receivable, net | 6,094 | 6,264 | ||||||
Other accounts receivable | 548 | 430 | ||||||
Total current assets | 14,703 | 15,524 | ||||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 264 | 592 | ||||||
Intangible assets, net | 4,081 | 3,564 | ||||||
Total non-current assets | 4,345 | 4,156 | ||||||
Total assets | 19,048 | 19,680 | ||||||
CURRENT LIABILITIES: | ||||||||
Trade accounts payable | 4,980 | 4,829 | ||||||
Other accounts payable | 2,152 | 1,195 | ||||||
Lease liability | - | 254 | ||||||
Total current liabilities | 7,132 | 6,278 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Accrued severance pay, net | 11 | 11 | ||||||
Deferred tax liability, net | 190 | 217 | ||||||
Derivative liability - warrants | - | - | ||||||
Total non-current liabilities | 201 | 228 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 10,782 | 11,052 | ||||||
Additional paid in capital | 3,615 | 3,466 | ||||||
Treasury stocks | (925 | ) | (821 | ) | ||||
Actuarial reserve | (95 | ) | (97 | ) | ||||
Retained earnings | (1,662 | ) | (426 | ) | ||||
Total Equity | 11,715 | 13,174 | ||||||
TOTAL LIABILITIES AND EQUITY | 19,048 | 19,680 | ||||||
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/
Martijn van den Bemd | Investor Relations | Investor Relations Europe | ||
Chief Partnerships Officer | Glen Akselrod | Dr. Eva Reuter | ||
Bristol Capital | Dr. Reuter Investor Relations | |||
Telephone: 647-497-5337 | Telephone: 905-326-1888 ext 1 | Telephone: +49 (0) 69 1532 5857 | ||
| Email: [email protected] | Email: [email protected] | Email: [email protected] |
SOURCE: Adcore Inc.