Highest-Ever Quarterly Gross Profit of $3.9 Million, Robust Quarterly Cash Flow From Operating Activities of $3.8 Million, and Accelerated Growth Momentum Set the Stage for a Breakout 2025
(All figures in CAD unless otherwise stated)
TORONTO, ON / ACCESS Newswire / March 26, 2025 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ), a global leader in marketing technology empowering businesses to maximize their digital marketing potential with its innovative AI-powered platform ("Marketing Cloud"), today announced its financial results for the three and twelve months ended December 31, 2024.
"Q4 was nothing short of a milestone moment for Adcore," said Omri Brill, Founder and CEO of Adcore. "We increased our revenue by 24% YoY, achieved our highest-ever quarterly gross profit of $3.9 million, achieved a 164% increase in Adjusted EBITDA to $1.3 million, and tripled our Cash Flow from operating activities year-over-year to $3.8 million. These outstanding results are a testament to our team's relentless focus on performance, technology innovation, and global expansion."
Adcore also reported continued gains in operational efficiency, with gross margins climbing to 42% for the year and net income reaching $521 thousand in Q4, a significant 601% leap from just $74 thousand a year earlier.
"With $10.8 million in cash on hand, Adcore is entering 2025 from a position of strength," added Mr. Brill. "This strong financial footing enables us to double down on strategic growth initiatives, expand our international footprint, and continue enhancing our suite of marketing apps that are revolutionizing the way businesses advertise online."
Driven by growing demand for its solutions and a strong finish to 2024, Adcore is poised for a breakout year in 2025.
"The momentum we've built is undeniable. We are laser-focused on scaling our platform, delivering exceptional value to our clients, and creating long-term shareholder value," concluded Mr. Brill. "We believe Adcore's best days are ahead."
Full-Year Highlights:
Total revenue for the year ended December 31, 2024, was CAD$32.5 million compared to CAD$31.2 million in 2023, a 4% increase.
Gross margin for the year ended December 31, 2024, was 42% compared to 41% gross margins for the year ended December 31, 2023, a 3% increase.
Adjusted EBITDA for the year ended December 31, 2024, was CAD$1.6 million, compared to CAD$907 thousand in 2023, a 75% increase.
Cash flows generated by operating activities for the year ended December 31, 2024, were CAD$3.3 million, compared to CAD$1.1 million for the year ended December 31, 2023.
As of December 31, 2023, the Company's cash and cash equivalents were CAD$10.8 million, compared to CAD$8 million for the year ended December 31, 2023.
Fourth Quarter Highlights:
Revenue for the three months ended December 31, 2024, was CAD$11.2 million compared to CAD$9 million for the three months ended December 31, 2023, a 24% increase.
Gross profit for the three months ended December 31, 2024, was CAD$3.9 million compared to CAD$3.7 million for the three months ended December 31, 2023, a 6% increase.
Adjusted EBITDA for the three months ended December 31, 2024, was CAD$1,275 thousands compared to CAD$483 thousands, for the three months ended December 31, 2023.
APAC revenue for the three months ended September 30, 2024, was CAD$5.5 million compared to CAD$3.5 million for the three months ended December 31, 2023, a 58% increase.
EMEA revenue for the three months ended December 31, 2024, was CAD$3.8 million compared to CAD$3.4 million for the three months ended December 31, 2023, a 14% increase.
North America revenue for the three months ended December 31, 2024, was CAD$1.8 million compared to CAD$2.1 million for the three months ended December 31, 2023, a 14% decrease.
Net cash flow generated by operation activities for the three months ended December 31, 2024, amounted to CAD$3,816 thousands, compared to CAD$1,056 thousands for the three months ended December 31, 2023.
CONFERENCE CALL AND WEBCAST INFORMATION The Company will host a conference call and webcast to discuss these results on March 26th at 10AM ET.
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 invest@adcore.com.
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.
ADCORE INC. ADJUSTED EBITDA (Express in CAD Thousands)
Three Months Ended
Twelve Months Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Operating (loss) profit
410
106
(659
)
(560
)
Depreciation and amortization
441
387
1,555
1,034
Share-based payments
17
(10
)
71
239
Other non-recurring items
407
-
618
194
Total Adjustments
865
377
2,244
1,467
Adjusted EBITDA
1,275
483
1,585
907
ADCORE INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Express in CAD Thousands)
Three Months Ended
Twelve Months Ended
December 31 2024
December 31 2023
December 31 2024
December 31 2023
Revenue
11,168
8,989
32,470
31,218
Cost of revenues
7,310
5,333
18,937
18,485
Gross profit
3,858
3,656
13,535
12,733
Research and development, net
642
585
2,378
1,660
Selling, general and administrative expenses
2,807
2,965
11,814
11,633
Operating profit (loss)
410
106
(659
)
(560
)
Finance expense
96
223
577
911
Finance income
(207
)
(136
)
(297
)
(186
)
Taxes on income
0
(55
)
(198
)
(11
)
Net Profit (loss)
521
74
(741
)
(1,274
)
Basic profit (loss) per share attributable to shareholders
0.008
0.001
(0.012
)
(0.016
)
Diluted profit (loss) per share attributable to shareholders
0.008
0.001
(0.012
)
(0.016
)
ADCORE INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed In CAD Thousands)
December 31, 2024
December 31, 2023
CURRENT ASSETS:
Cash and cash equivalents
10,803
8,061
Trade accounts receivable, net
6,561
6,094
Other accounts receivable
624
548
Total current assets
17,988
14,703
NON-CURRENT ASSETS:
Property, plant and equipment, net
1,306
264
Intangible assets, net
4,137
4,081
Total non-current assets
5,443
4,345
Total assets
23,431
19,048
CURRENT LIABILITIES:
Trade accounts payable
8,156
4,980
Other accounts payable
2,355
2,152
Lease liability
200
-
Total current liabilities
10,711
7,132
NON-CURRENT LIABILITIES:
Accrued severance pay, net
10
11
Deferred tax liability, net
-
190
Lease liability
670
-
Total non-current liabilities
680
201
SHAREHOLDERS' EQUITY:
Share capital
11,760
10,782
Additional paid in capital
4,018
3,615
Treasury stocks
-1,043
-925
Actuarial reserve
-102
-95
Retained earnings
-2,593
-1,662
Total Equity
12,040
11,715
TOTAL LIABILITIES AND EQUITY
23,431
19,048
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.
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.
