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Adcore Reports Second Quarter 2022 Operating Results

Wednesday, 10 August 2022 05:20 PM

Adcore Inc.


TORONTO, ON / ACCESSWIRE / August 10, 2022 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ)(TSX:ADCO-WT), 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 six months ended June 30, 2022.

"During the second quarter we saw continued progress implementing our strategy to pursue higher margin indirect revenue, with our North America division showing particular success shifting to this revenue model," Omri Brill, CEO of Adcore commented. "Our global brand recognition as a leader in digital marketing solutions continues to expand, and we are seeing a great deal of interest for our technology across the regions we serve. Notably during the quarter, we announced a contract with Australian-based education marketing firm Candlefox for an annual advertising budget of up to CAD$12 million, and we're excited about opportunities we're seeing in the U.S. market.

"As we move through the balance of 2022, our outlook for the Company's second half of the year is optimistic, and our confidence is reflected in our purchase of 2.45 million common shares for cancelation from a former executive officer and via the Company's Normal Course Issuer Bid, and an additional 375,000 shares purchased by several of our officers and directors during the quarter. We're energized to capitalize on the opportunities we're seeing, and believe we have a strong foundation from which to drive improved results in the back half of 2022 and beyond."

Second Quarter Highlights and Year-to-Date Highlights

  • Total revenue for the three months ended June 30, 2022 was CAD$5.2 million compared to CAD$7.0 million for the same period in 2021. Total revenue for the six months ended June 30, 2022 was CAD$9.9 million compared to CAD$15.6 million in the same period in 2021.
  • Gross profit for the three months ended June 30, 2022, was CAD$2.1 million, or 40% of revenue compared to CAD$ 3.2 million, or 46% of revenue for the same period in 2021. Gross profit for the six months ended June 30, 2022 was CAD$4.1 million, or 42% of revenue compared to CAD$5.2 million or 34% of revenue in the first six months of 2021.
  • Operating loss for the three months ended June 30, 2022, was CAD$587 thousand compared to an operating profit of CAD$254 thousand for the same period in 2021. Operating loss for the six months ended June 30, 2022 was CAD$1.0 million compared to an operating profit of CAD$288 thousand in the same period in 2021.
  • Adjusted EBITDA for the three months ended June 30, 2022 was a loss of CAD$30 thousand compared to Adjusted EBITDA of CAD$1.5 million for the same period in 2021. For the six months ended June 30, 2022 Adjusted EBITDA was CAD$54 thousand compared to CAD$2.1 million for the first six months of 2021.
  • The Company was awarded a contract with Candlefox, an Australia-based educational marketing firm, with an annual advertising budget of up to CAD$12 million a year.
  • Adcore purchased 2.45 million shares of common stock for cancellation representing over 3% of the issued and outstanding common shares.

* Additional information concerning Adcore's consolidated financial statements and related management's discussion and analysis for the three and six months ended June 30, 2022 can be found below and on the Company's profile at

Third Quarter Guidance

With the Company's visibility today, Adcore expects revenue in third quarter 2022 to be in the range of CAD$6.1 million to CAD$6.74 million, with expected gross profit ranging between CAD$2.89 and CAD$3.21 million, and expected gross margin exceeding 45%.

Corporate Updates

Subsequent to the close of the quarter, Martijn van den Bemd was promoted to the position of Chief Partnerships Officer. Additionally, Mr. van den Bemd will be assuming the interim role of corporate secretary following the departure of Barak Frank on August 24, 2022, until the Company finds a permanent replacement for Mr. Frank. Mr. van den Bemd will continue to lead the North American territory.

Mr. Brill concluded, "Martijn has done an extraordinary job spearheading our growth in the North American market, and we look forward to working with him in his expanded role building customer and industry partnerships for Adcore around the globe. I would also like to thank Barak for his long term contribution to the company and wish him all the best as he moves on to pursue other interests."

Conference Call and Webcast Information

Adcore will host a conference call to discuss its second quarter 2022 financial results at 10:00 a.m. ET on Thursday, August 11, 2022.

To register for the conference call, please click here or visit:

The conference call will include a brief statement by management and will focus on answering questions about Adcore's results during the second quarter, which can be sent in advance to [email protected].


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 months ended June 30, 2022 and 2021. 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.

Three months ended June 30, 2022 Three months ended June 30, 2021

CAD$ in thousands
Operating profit
(587) 254
Depreciation and amortization
269 211
Share-based payments
123 267
Offering, listing & global expansion
0 780
Other Non recurring items
165 32
Total Adjustments
557 1,290
Adjusted EBITDA
(30) 1,544

All amounts are in CAD and are based on Adcore's condensed consolidated interim financial statements for the three months ended June 30, 2022, 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 June 30, 2022, and June 30, 2021, 0.78 and 0.81 respectively.


Adcore is empowering entrepreneurs, advertisers, and the future of e-commerce through its advertising management and automation platform. By combining extensive industry knowledge and experience with its proprietary artificial intelligence engine, 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. In addition to being named numerous times on Deloitte's Fast 50 Technology list, Adcore is a certified Google Premier Partner, Elite Tier Microsoft Partner, Facebook 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, or follow us on LinkedIn


Founded in 2021 in the midst of the pandemic, Amphy is the world's most diverse 24/7 live online learning marketplace. With Amphy, learners can choose from thousands of classes across hundreds of categories to grow their passions and skills, expand their children's learning opportunities, and much more. Instructors on the Amphy platform join a vibrant virtual teacher community that promotes and supports their success through enrichment seminars, marketing and advertising, and a suite of tools that allow them to run their classes hassle-free and focus on their students. Amphy students gain access to high-quality, personalized classes accessible from 24/7, as well as join a growing community of lifelong learners.

For more on Amphy please visit - and or follow us on LinkedIn, Facebook, Instagram and YouTube.


This press release contains certain forward-looking information and forward-looking statements (collectively "forward-looking information"), including statements about the Company. Forward-looking information may relate to the Company's financial outlook and guidance (including revenue, gross profit, gross margin and Adjusted EBITDA), and anticipated events or results and may include information regarding the Company's financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding the Company's expectations of future results, performance, achievements, prospects or opportunities or the markets in which the Company operates, the achievement of advances in and expansion of the Company's technologies and platforms, expectations regarding the Company's revenue, gross margins and future profitability, the future impact of the COVID-19 pandemic and the Russian invasion of Ukraine and reactions thereto, is forward-looking information. 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 and forward-looking information. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.

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. Such risks include the factors discussed under the "Risk and Uncertainties" section in the Company's quarterly and annual MD&A's. Other factors that could cause actual results or events to differ materially include, but are not limited to, loss of major clients, inability to acquire new clients, significant changes to policies and guidelines of media partners and any significant change to the global business environment and/or in specific territories in which the Company operates. 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:


Martijn van den Bemd,
GM North America
U.S. Investor Relations
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Telephone: 647-497-5337Telephone: 203-972-9200
Email: [email protected]Email:[email protected]


CAD$ in thousands CAD$ in thousands
30.06.2022 31.12.2021
Cash and cash equivalents
8,993 14,088
Trade accounts receivable, net
3,890 3,708
Other accounts receivable
623 789
Total current assets
13,506 18,585

Long term deposit
33 37
Property, plant and equipment, net
748 881
Intangible assets, net
2,964 2,519

Total non-current assets
3,745 3,437

Total assets
17,251 22,022

Trade accounts payable
1,919 4,458
Other accounts payable
1,104 858
Lease liability
274 282
Total current liabilities
3,297 5,598

Accrued severance pay, net
21 23
Deferred tax liability, net
319 335
Derivative liability - warrants
1 257
Lease liability
133 271
Total non-current liabilities
474 886

Share capital
* *
Additional paid in capital
13,650 12,931
Treasury stocks
(450) -
Actuarial reserve
(103) (102)
Retained earnings
383 2,709
Total shareholders' equity
13,480 15,538

17,251 22,022


Three months ended June 30 Three months ended June 30

2022 2021

CAD $ in thousands
5,176 6,977
Cost of revenues
3,083 3,740
Gross profit
2,093 3,237
Research and development, net
363 340
Selling, general and administrative expenses
2,317 2,643
Operating profit (loss)
(587) 254
Finance expense
817 582
Finance income
199 -
Loss before taxes on income
(1,205) (328)
Tax Expenses
19 365
Net Profit (Loss)
(1,224) (693)

Basic loss per share attributable to shareholders
(0.019) (0.011)
Diluted loss per share attributable to shareholders
(0.019) (0.011)

SOURCE: Adcore Inc.

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