Slide 1: Adcore's Q1 Earnings Call
TSX: A DCO | OTCQX: A DCOF Adcore’s Q1 Earnings Call May 11, 2022
Slide 2: Hosts
Adcore’s Q1 Earnings Call | May 2022 T SX: A D CO | OTCQX: A D CO F Hosts Yatir Sadot Omri Brill Ilana Avtsin CFO CEO MARKETING MANAGER 2
Slide 3: Agenda
Adcore’s Q1 Earnings Call | May 2022 Agenda • Forward Looking Statements • CEO Opening Remarks • CFO Financial Highlights • Q&A 3
Slide 4: Forward Looking Statements
Adcore’s Q1 Earnings Call | May 2022 This conference call contains certain forward-looking statements, Forward including statements about the Company. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “pot
Slide 5: CEO Opening Remarks
Adcore’s Q1 Earnings Call | May 2022 CEO Opening Remarks
Slide 6: Quarterly revenue
Q4 2021 Q1 2022 15 15 13.4 Adcore’s Q1 Earnings Call | May 2022 12 12 Quarterly 9.7 9 9 8.6 revenue 6 6 4.7 CAD in million 3 3 3 3.2 1.9 2 0 0 Q4 2020 Q4 2021 Q1 2021 Q1 2022 Cost of Revenues (-38%↓) Cost of Revenues (-60%↓) Gross profit (7%↑) Gross profit (5%↑) 6
Slide 7: Quarterly gross profit & gross margin
Gross profit Gross margin 3 50% Adcore’s Q1 Earnings Call | May 2022 43% 40% Quarterly 2 1.9 2.0 gross profit & 30% 23% gross margin 1 20% 10% CAD in million 0 0 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 YoY - 2% (0.1) Q1 YoY - 87% (20%) 7
Slide 8: Quality growth KPIs
2,282 Indirect revenue North America revenue Adcore’s Q1 Earnings Call | May 2022 163%↑ 1,380 1,085 Quality 666 growth KPIs 524 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 CAD in thousands 89%↑ 788 706 740 665 392 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 8
Slide 9: Working capital
15 Working capital growth Adcore’s Q1 Earnings Call | May 2022 13 11.9 Q1 YoY - (-8%) (-1.1) 12 Working capital 9 6 CAD in million 3 0 Dec 2021 Mar 22 9
Slide 10: Quarterly results
Adcore’s Q1 Earnings Call | May 2022 Q1 2021 Q1 2022 Quarterly 457 631 New classes 38%↑ results Visitors 16,165 38,212 136%↑ Sign ups 556 1,459 158%↑ Transactions 966 1,710 77%↑ 10
Slide 11: Q1 2022 Summary & what to expect in 2022
Strong quarter in terms of client acquisition Adcore’s Q1 Earnings Call | May 2022 • 14 new clients across all regions Q1 2022 • 2 big brand names - Best & Less and Candlefox • Tourism budgets are back Summary Quality over quantity • Higher gross margins & what to • Increase in indirect revenue stre
Slide 12: Intention to commence normal course issuer bid
T SX: A D CO | OTCQX: A D CO F Adcore’s Q1 Earnings Call | May 2022 Intention to $0.36 5% commence Share price Issued and normal course May 9, 2022 outstanding Shares issuer bid (Subject to the TSX approval) 3.2M 12 Mo. Max. shares NCIB plan period CAD in thousands 12
Slide 13: CFO Financial Highlights
Adcore’s Q1 Earnings Call | May 2022 CFO Financial Highlights
Slide 14: Comprehensive Income
Adcore’s Q1 Earnings Call | May 2022 T SX: A D CO | OTCQX: A D CO F Comprehensive Income Three months ended Three months ended CAD in million March 31, 2022 March 31, 2021 YoY Q1 Gross Revenues 4.7 8.6 -45% margin is 43% Cost of revenues 2.7 6.7 -60% compared to Gross profit 2.0 1.9 5% 23% YoY Resea
Slide 15: Financial Position - Assets
Adcore’s Q1 Earnings Call | May 2022 T SX: A D CO | OTCQX: A D CO F Financial Position - Assets CAD in million 31.03.2022 31.12.2021 CURRENT ASSETS Cash and cash equivalents 11.1 14.1 Trade accounts receivable, net 2.8 3.7 Other accounts receivable 0.8 0.8 Total current assets 14.7 18.6 NON-CURRENT
Slide 16: Financial Position - Liabilities
Adcore’s Q1 Earnings Call | May 2022 T SX: A D CO | OTCQX: A D CO F Financial Position - Liabilities CAD in million 31.03.2022 31.12.2021 Zero Debt CURRENT LIABILITIES Trade accounts payable 1.6 4.5 Other accounts payable 0.9 0.9 Deferred Revenues 0 0 Lease liability 0.3 0.3 Total current liabilitie
Slide 17: Revenue Breakdown
Adcore’s Q1 Earnings Call | May 2022 T SX: A D CO | OTCQX: A D CO F Revenue Breakdown CAD in thousands Q1 2022 Q1 2021 diff % An increase in Direct APAC 1,193 7,103 (5,910) -83% indirect revenues EMEA 1,736 1,094 642 59% in North America as a continuation North America 384 72 312 432% of the trend f
Slide 18: Adjusted comprehensive income
Adcore’s Q1 Earnings Call | May 2022 T SX: A D CO | OTCQX: A D CO F Adjusted comprehensive income Total Amphy Adcore Adcore Three months ended - March 31, 2022 Adcore Edtech Martech Q1 2022 Martech Q1 2021 % CAD in Revenues 4.70 0.01 4.69 8.60 -45% million Cost of revenues 2.70 - 2.70 6.70 -60% Gros
Slide 19: EBITDA
Adcore’s Q1 Earnings Call | May 2022 T SX: A D CO | OTCQX: A D CO F EBITDA MarTech only MarTech only Three months ended Three months ended Three months ended Three months ended YoY CAD in thousands March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 MarTech EBITDA Operating (loss) profit (44
Slide 20: Q&A
Adcore’s Q1 Earnings Call | May 2022 Q&A 20
Slide 21: Thank You.
TSX: A DCO | OTCQX: A DCOF Thank You. For more information visit adcore.com/investors