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TORONTO, ON / ACCESSWIRE / May 17, 2021 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO)(FSE:ADQ), a leading e-commerce advertising management and automation platform to leverage digital marketing in an effortless and accessible way ("Effortless Advertising"), today announced its financial results for the three months ended March 31, 2021.
First Quarter 2021 Highlights
Total revenue increased 161% to $8.6 million compared to $3.3 million in the first quarter of 2020.
Adjusted EBITDA was $584,000 compared to $843,000 in the first quarter of 2020. Profitability in the quarter reflects the Company's continuing strategic focus on top-line and market share growth, by acquiring new customers and expanding existing customers' same store growth.
As of March 31, 2021, total working capital was $8.8 million compared to $7.8 million at December 31, 2020, an increase of $1 million or 13%.
The Company is setting the foundation for Adcore NG (New Generation), a completely new version of its four Apps and the base for the Adcore Marketing Cloud (hereinafter, "AMC") and launching a "One-click" smart campaign creation feature for Adcore Views.
Strong growth in the Company's direct channel revenue stream driven by a high level of e-commerce activity and international expansion.
"Our record first quarter results are a direct continuation of the momentum we saw throughout the second half of 2020, with e-commerce activity exploding. The company is optimistic that the convenience of shopping from home will continue to favorably impact demand for our technological solutions." commented Omri Brill, Chief Executive Officer. "We continue to support businesses from around the globe with their digital transformation and the 161% increase in our quarterly revenue is a strong validation of our business model."
Mr. Brill continued, "We are experiencing an increased demand for our solutions. We recently announced the renewal of our contract to manage online advertising on behalf of the Israeli Government Advertising Agency, which is in the fourth year of a five-year contract. We're optimistic that as vaccines rollout globally, Israel may be one of the first to reopen its borders to tourists, building urgency into their digital advertising efforts. Additionally, last week we announced a new contract to provide our digital marketing technologies and services to MySale, a leading online retailer in Australia and New Zealand.
As we move through 2021, we are focused on relentlessly pursuing and winning advertisers and brands who can effectively adopt our Effortless Marketing solutions to maximize their digital marketing performance. We believe the worldwide growth of e-commerce and the increasing market recognition of our technologies present a significant market opportunity and we're poised to capitalize on the interest we're seeing in our core business offering." Mr. Brill concluded.
Conference Call and Webcast Information
Adcore will host a conference call to discuss its first quarter 2021 financial results at 8:30 a.m. ET, tomorrow, Tuesday, May 18, 2021.
The conference call will include a brief statement by management and will focus on answering questions about Adcore's results during the first quarter, which can be sent in advance to firstname.lastname@example.org.
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 presents the Adjusted EBITDA for the periods ended:
Three months ended March 31, 2021
Three months ended March 31, 2020
CAD$ in thousands (Unaudited)
Depreciation and Amortization
Global Expansion & Relocation Expenses
Other Non recurring items
Adcore's first quarter 2021 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 months ended March 31, 2021 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 March 31, 2021 and March 31, 2020, 0.790, and 0.705 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, 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.
This press release contains 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, including the fulfillment of the contract by the parties and the reopening of the Israeli border in light of the COVID-19 pandemic, 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
Canada Investor Relations
Virtus Advisory Group
SOURCE: Adcore Inc.
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