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Adcore Reports Third Quarter 2022 Operating Results

Highlighted by a Record Third Quarter Gross Profit of CAD$3.4 million, a 45% YoY Growth

TORONTO, ON / ACCESSWIRE / November 14, 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 nine months ended September 30, 2022.

"We reported a very strong third quarter highlighted by improved results across all our key metrics including substantially improved gross profit performance, consistent with our strategy of pursuing a higher margin revenue model," Omri Brill, CEO of Adcore, commented. "Our ability to provide innovative and efficient marketing solutions is a key driver in our success securing valuable advertising contracts, as demonstrated by the six significant contracts we secured in the third quarter. This represents a total potential annual advertising budget of up to CAD$40 million, the largest potential ad spend ever secured by Adcore in a single quarter."

"With our visibility at the close of the second quarter 2022, we felt confident in providing guidance on revenue, gross profit, and gross margin for third quarter 2022. I'm thrilled to report that we exceeded expectations, overdelivering on our projected revenue for the third quarter by 11%, surpassing projected gross profit by 6%, and delivering gross margin slightly higher than anticipated. These results reflect our growing global brand recognition as a leader in digital marketing solutions, and we expect our visibility in the marketplace to further expand as we continue to strategically invest in our growth and secure valuable global advertising contracts. We are energized by our third quarter results and look forward to carrying this momentum through the end of 2022 and beyond."

Third Quarter Highlights and Year-to-Date Highlights

  • Improved operational results across all key metrics including North American revenues, direct advertiser revenues, gross margin, and gross profit.
  • Total revenue for the three months ended September 30, 2022 was CAD$7.5 million compared to CAD$10.4 million for the same period in 2021. Total revenue for the nine months ended September 30, 2022 was CAD$17.4 million compared to CAD$26 million in the same period in 2021.
  • Gross profit for the three months ended September 30, 2022 was CAD$3.4 million, or 46% of revenue compared to CAD$2.4 million, or 23% of revenue for the same period in 2021. Gross profit for the nine months ended September 30, 2022 was CAD$7.5 million, or 43% of revenue compared to CAD$7.6 million, or 29% of revenue in the first nine months of 2021.
  • Operating profit for the three months ended September 30, 2022 was CAD$428 thousand compared to an operating profit of CAD$27 thousand for the same period in 2021. Operating loss for the nine months ended September 30, 2022 was CAD$605 thousand compared to an operating profit of CAD$316 thousand in the same period in 2021.
  • Adjusted EBITDA for the three months ended September 30, 2022 was CAD$734 thousand compared to Adjusted EBITDA of CAD$585 thousand for the same period in 2021. For the nine months ended September 30, 2022, Adjusted EBITDA was CAD$789 thousand compared to CAD$2.7 million for the first nine months of 2021.
  • Working capital as of September 30, 2022 amounted to CAD$10 million compared to CAD$13 million as of September 30, 2021, a decrease of CAD$3 million and 19%. Sequentially working capital increased by 0.4 million or 4% from the second quarter this year.
  • Secured six new contracts for up to CAD$40 million in annual advertising budget representing the largest potential ad spend ever added by the Company in one quarter.
  • Officially launched new Alerter app for easy-to-use 24/7 digital asset monitoring, which assures customers that their digital assets are being monitored, while helping them maximize revenue and minimize unnecessary costs.

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

Fourth Quarter Guidance

Due to the expected high volume this holiday season, the Company will post fourth quarter guidance after the end of Black Friday and Cyber Monday.

Conference Call and Webcast Information

Adcore will host a conference call to discuss its third quarter 2022 financial results at 10:00 a.m. ET on Tuesday, November 15, 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 third quarter, which can be sent in advance to


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 September 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 September 30, 2022 Three months ended September 30, 2021
CAD$ in thousands
Operating profit
428 27
Depreciation and amortization
230 217
Share-based payments
76 318
Offering, listing & global expansion
- 12
Other non operational items
- 11
Total Adjustments
306 558
Adjusted EBITDA
734 585

All amounts are in CAD and are based on Adcore's condensed consolidated interim financial statements for the three months ended September 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 September 30, 2022, and September 30, 2021, 1.3752 and 1.27 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.


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This press release contains certain forward-looking statements, including statements about the Company, the expected term and value of the contracts and the meeting of milestones under the contracts. The yearly ad spend estimation is calculated based on the current average monthly ad spend multiplied by 12 months. Multiple factors may impact the projection including, but not limited to, the company's (in)ability to achieve certain milestones, changes in budget plan and/or budget roadmap of client(s), and the client(s) not renewing the post-pilot contract period or additional contract term. 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

U.S. Investor Relations
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Telephone: 203-972-9200


Three months ended September 30, 2022 Year ended December 31, 2021
CAD$ in thousands
Cash and cash equivalents
8,159 14,088
Trade accounts receivable, net
6,551 3,708
Other accounts receivable
946 789
Total current assets
15,656 18,585
Long term deposit
36 37
Property, plant and equipment, net
345 334
Intangible assets, net
3,365 2,519
Lease asset, net
327 547
Total non-current assets
4,073 3,437
Total assets
19,729 22,022
Trade accounts payable
2,830 4,458
Other accounts payable
1,986 858
Deferred revenues
- -
Lease liability
260 282
Total current liabilities
5,076 5,598
Accrued severance pay, net
22 23
Deferred tax liability, net
353 335
Derivative liability - warrants
3 257
Lease liability
63 271
Long term loan
- -
Total non-current liabilities
441 886
Share capital
11,231 10,239
Additional paid in capital
3,428 2,692
Treasury stocks
(620 ) -
Actuarial reserve
(110 ) (102 )
Retained earnings
2,640 3,098
(Profit) loss for the period
(2,357 ) (389 )
Total shareholders' equity
14,212 15,538
19,729 22,022


Three months ended September 30,
Three months ended September 30,
Nine months ended September 30,
Nine months ended September 30,
CAD $ in thousands
7,498 10,411 17,367 25,999
Cost of revenues
4,077 8,055 9,824 18,412
Gross profit
3,421 2,356 7,543 7,587
Research and development, net
465 346 1,218 1,135
Selling, general and administrative expenses
2,528 1,983 6,930 6,136
Operating profit (loss)
428 27 (605 ) 316
Finance expense
706 236 2,020 917
Finance income
- (304 ) (150 )
Taxes on income
17 114 36 632
Net Profit (Loss)
(295 ) (323 ) (2,357 ) (1,083 )
Basic loss per share attributable to shareholders
(0.005 ) (0.005 ) (0.037 ) (0.018 )
Diluted loss per share attributable to shareholders
(0.005 ) (0.005 ) (0.037 ) (0.018 )

SOURCE: Adcore Inc.

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