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Adcore Reports Strong Second Quarter Financial Results

Wednesday, 09 August 2023 04:45 PM

Adcore Inc.


Revenues have increased by 33% and gross profit by 41% compared to Q2 2022.

TORONTO, ON / ACCESSWIRE / August 9, 2023 / 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 ending June 30, 2023.

Adcore CEO, Omri Brill, commented, "I am very proud to report second-quarter results for 2023, a quarter in which our revenues grew to CAD$6.9 million, a 33% increase compared to the second quarter in 2022, and an improvement from our first quarter revenues. I am very pleased to have once again surpassed our initial revenue guidance for the quarter, and I am very appreciative of my exceptional team who were instrumental in growing revenues by over 33% while our cost of revenues increased by only 27%. With an emphasis on efficiency and productivity, our bottom line continues to improve, and we are expecting a strong second half culminating in profitability.

Our gross margin this past quarter was 43%, in line with our guidance, and we are pleased to see increasing regional revenues across the globe. North America experienced a 16% increase, while EMEA saw an impressive 50% growth in revenue and the APAC region saw a spike in revenues, with a notable 29% increase compared to Q2 2022.

Our Adjusted EBITDA continues to improve as we generated CAD$112,000 for the quarter compared to a loss of CAD$30,000 in Q2 of the prior year and an improvement from the CAD$68,000 in Adjusted EBITDA from the previous quarter. With the uncertainties that exist in the global markets today, the executive team is focused on maintaining cash resources and I am thrilled to report that we have achieved a 70% reduction in cash flow used for operating activities compared to the second quarter of 2022. This improvement in cash flow management puts Adcore in a favorable position to fund our growth initiatives going forward while simultaneously ensuring operational efficiency as we take the next step in our Company development.

We concluded the quarter with CAD$6.2 million in cash and a total working capital of CAD$7.8 million. With growing revenues, improved margins and ever-decreasing net losses, the Company is inching closer towards profitability. Adcore has the cash necessary to fund developments, the staff in place to oversee exceptional growth and we are winning new business from prestigious customers who realize the value Adcore's products provide. As our customers continue to use the technologies and strategies offered by Adcore to grow their businesses, their successes reflect not only their hard work, but the hard work being done behind the scenes at Adcore. As we head into the second half of 2023, we will continue to be diligent with our expenditures, including repurchasing shares through our NCIB. Adcore is well on its way to becoming a leading global digital advertising and marketing technology Company and I have never been more excited about the future of Adcore," concluded Mr. Brill.

Yatir Sadot, CFO at Adcore, commented, "The impressive Q2 performance marks a remarkable first half of 2023, highlighted by consistent and accelerated revenue growth. This quarter, not only did we achieve robust revenue growth, but our Adjusted EBITDA also surpassed expectations. Furthermore, as our revenues expanded in the first half of 2023, we shifted towards a more cost-efficient operational model. We anticipate sharing our projections for the third quarter later in this current quarter."

Second Quarter Highlights:

  • Revenue for the three months ended June 30, 2023, was CAD$6.9 million compared to CAD$5.2 million for the three months ended June 30, 2022, a 33% increase.
  • Gross profit for the three months ended June 30, 2023, was CAD$3 million compared to CAD$2.1 million for the three months ended June 30, 2022, a 41% increase.
  • Gross margin for the three months ended June 30, 2023, was 43% compared to 40% for the three months ended June 30, 2022.
  • Adjusted EBITDA for the three months ended June 30, 2023, was CAD$112,000 compared to CAD$(30,000), for the three months ended June 30, 2022.
  • North America revenue for the three months ended June 30, 2023, was CAD$1.67 million compared to CAD$1.44 million for the three months ended June 30, 2022, a 16% increase.
  • EMEA revenue for the three months ended June 30, 2023, was CAD$2.61 million compared to CAD$1.74 million for the three months ended June 30, 2022, a 50% increase.
  • APAC revenue for the three months ended June 30, 2023, was CAD$2.59 million compared to CAD$2 million for the three months ended June 30, 2022, a 29% increase.
  • A reduction of 70% in cash flow used for operating activities compared to the three months ended June 30, 2022.
  • Total accumulated NCIB purchases the company made until July 31, 2023, was 1,669,500 shares.
  • Working Capital for the six months ended June 30, 2023, was CAD$7.8 million compared to CAD$9.2 million as of December 31, 2022.

Third Quarter 2023 Guidance

The Company expects to release third quarter 2023 guidance later this month or early September as it gains more visibility on its financial performance for the quarter.

Conference Call and Webcast Information

The Company will host a conference call and webcast to discuss these results on August 10th at 10AM ET.

To register for the conference call/webcast click here or visit:

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 months ended June 30, 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.

Adjusted EBITDA:

Three months ended June 30, 2023 Three months ended June 30, 2022
Operating profit (loss)
(406) (587)
Depreciation and amortization
201 269
Share-based payments
126 123
Other non-recurring items
191 165
Total Adjustments
518 557
Adjusted EBITDA
112 (30)


Three months ended June 30, Three months ended June 30, Six months ended June 30, Six months ended June 30,
2023 2022 2023 2022
CAD $ in thousands
6,864 5,176 13,686 9,870
Cost of revenues
3,918 3,083 7,997 5,750
Gross profit
2,946 2,093 5,689 4,120
Research and development, net
326 363 745 753
Selling, general and administrative expenses
3,026 2,317 5,595 4,399
Operating profit (loss)
(406) (587) (651) (1,032)
Finance expense
132 817 507 1,430
Finance income
(19) (199) (44) (397)
Taxes on income
5 19 19 19
Net Profit (loss)
(524) (1,224) (1,133) (2,084)
Basic loss per share attributable to shareholders
(0.009) (0.019) (0.018) (0.031)
Diluted loss per share attributable to shareholders
(0.009) (0.019) (0.018) (0.031)



June 30,
December 31,
CAD$ in thousands
Cash and cash equivalents
6,242 8,830
Trade accounts receivable, net
4,988 6,264
Other accounts receivable
478 430
Total current assets

Property, plant and equipment, net
418 592
Intangible assets, net
3,923 3,564
Total non-current assets

Total assets

Trade accounts payable
2,605 4,829
Other accounts payable
1,231 1,195
Lease liability
118 254
Total current liabilities

Accrued severance pay, net
11 11
Deferred tax liability, net
220 217
Derivative liability - warrants
- -
Total non-current liabilities

Share capital
10,807 11,052
Additional paid in capital
3,599 3,466
Treasury stocks
(897) (821)
Actuarial reserve
(95) (97)
Retained earnings
(1,550) (426)
Total Equity

16,049 19,680


Adcore is a leading AI-powered marketing and online learning 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 and TikTok Partner.

Adcore also runs Amphy, the world's most diverse 24/7 live online learning marketplace. Learners can choose from thousands of classes across hundreds of categories to grow their passions, skills and expand their children's learning opportunities. 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 that are accessible 24/7, while joining a growing community of lifelong learners.

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. For more information about Amphy please visit and follow us on LinkedIn, Facebook, Instagram and YouTube.


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:


Martijn van den Bemd
Chief Partnerships Officer
Telephone: 647-497-5337
Email: [email protected]

Investor Relations
Glen Akselrod
Bristol Capital
Telephone: 905-326-1888 ext 1
Email: [email protected]

Investor Relations Europe
Dr. Eva Reuter
Dr. Reuter Investor Relations
Telephone: +49 (0) 69 1532 5857
Email: [email protected]

SOURCE: Adcore Inc.

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