Slide 1: Adcore's Q3 Earnings Call, November 2023
TSX: A DCO | OTCQX: A DCOF Adcore's Q3 Earnings call November, 2023
Slide 2: Hosts
Adcore's Q3 Earnings Call | November 2023 T SX: A D CO | OTCQX: A D CO F Hosts Yatir Sadot Omri Brill Amit Konforty CFO CEO Director of Finance 2
Slide 3: Agenda
Adcore's Q3 Earnings Call | November 2023 Agenda • Forward Looking Statements • CEO Opening Remarks • CFO Financial Highlights • Q&A 3
Slide 4: Forward Looking Statements
Adcore's Q3 Earnings Call | November 2023 This conference call contains certain forward-looking information and forward-looking statements (collectively “forward-looking information”), including statements about the Company. Forward-looking information may relate to Forward the Company’s financial o
Slide 5: CEO Opening Remarks
Adcore's Q3 Earnings Call | November 2023 CEO Opening Remarks
Slide 6: Adcore's Q3 Earnings Call | November 2023
Adcore's Q3 Earnings Call | November 2023 7.10
Slide 7: Adcore Step Up
Adcore’s Investors Presentation | November 2023 T SX: A DCO | OTCQX: A DCO F Adcore Step Up 7
Slide 8: Keep on Riding
Adcore’s Investors Presentation | November 2023 T SX: A DCO | OTCQX: A DCO F KEEP ON RIDING D O N ATE N OW https://www.adcore.com/relieve 8
Slide 9: Q3 2023 Report Highlights
Adcore’s Investors Presentation | November 2023 T SX: A DCO | OTCQX: A DCO F Q3 2023 Report Highlights CEO Remarks 9
Slide 10: Q3 2023 Performance
Adcore’s Investors Presentation | November 2023 T SX: A DCO | OTCQX: A DCO F Q3 2023 Performance: Q3 2023 was a very strong quarter for us, marked by significant achievements and positive growth. 10
Slide 11: Quarterly Revenue
8.8 8.2 Adcore's Q3 Earnings Call | November 2023 7.5 6.8 6.9 Quarterly Revenue CAD in million 3.8 3.4 3.3 3 Quarterly Revenue (↑10% YoY) 2.7 9 Months Revenue (↑28% YoY) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 11
Slide 12: Quality Growth KPIs
43% 46% 3.8M 40% 43% 3.4M 3.3M 40% 3M Adcore's Q3 Earnings Call | November 2023 2.7M Quality Growth KPIs Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 CAD in millions 2M 1.9M 1.67 M 1.55 M 1.65 M Gross margin North America revenue Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 12
Slide 13: Highlights: Burn Rate and Blog Visitors
Monthly Average Burn Rate Q3 Adcore's Q3 Earnings Call | November 2023 ↓11% ↓3% ↓6% 120 107 ↓16% 103 97 Highlights ↓19% 81 ↓17% 66 ↓39% 41 USD in thousands 25 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 130,000 Amphy Monthly Average Blog Visitors 115,000 97,000 48,000 25,000 8,00
Slide 14: Report Quarterly Highlights
Adcore's Q3 Earnings Call | November 2023 Report Quarterly Highlights • Revenue grew 10% YoY • EMEA revenue grew 20% YoY • APAC revenue grew 19% YoY • Cash and cash equivalents grew 21% QoQ 14
Slide 15: Comparable Companies
Comparable COMPANY NAME TICKER MARK CAP ENTERPRISE VALUE (EV) EV / GROSS PROFIT EV / EBITDA (ADJ) Companies Fluent Inc FLNT US 62 93 0.8 -0.9 Criteo SA CRTO US 1,821 1,220 1.1 6.9 Evertz Technologies Ltd ET CN 1,319 1,287 3.3 8.0 Inuvo Inc INUV US 34 28 0.4 -1.7 Significant share price upside Kin
Slide 16: Adcore Share Purchases by the Company
Adcore's Q3 Earnings Call | November 2023 T SX: A D CO | OTCQX: A D CO F Adcore Share Purchases by the Company Quantity Share Price Value (CAD) Q3/23 Company NCIB purchase 88,500 0.21 $ 18,665 Quantity Share Price Value (CAD) Total accumulated NCIB purchases Including 10/23 1,782,000 0.27 $ 480,466
Slide 17: 2023 Targets
Adcore's Q3 Earnings Call | November 2023 1 2 Maintain a strong balance Keep the gross 2023 Targets sheet with a focus on increasing cash reserves. margin within the 40% to 50% range 3 4 Achieve double-digit Expand our global growth in revenue, gross footprint in North profit and operating profit. A
Slide 18: Introduction to our new CFO
Adcore’s Investors Presentation | November 2023 T SX: A DCO | OTCQX: A DCO F Introduction to our new CFO • Current role and transition • Professional experience • Continuity and Growth • Starting date: November 11th 18
Slide 19: CFO Financial Highlights
Adcore's Q3 Earnings Call | November 2023 CFO Financial Highlights
Slide 20: Comprehensive Income
Adcore's Q3 Earnings Call | November 2023 T SX: A D CO | OTCQX: A D CO F Comprehensive Income Three months ended Three months ended CAD in million September 30, 2023 September 30, 2022 YoY 10% growth in Revenues 8.2 7.5 +10% Q3-23 vs. Q3-22 Revenues Cost of revenues 4.9 4.1 Gross profit 3.3 3.4 -5%
Slide 21: Total Revenues
Adcore's Q3 Earnings Call | November 2023 Total Revenues 35.7 CAD in millions 26.7 ↑+28% YoY 22.8 22.2 24.9 17.4 15.2 13.6 13.1 ↑+10% YoY 9.8 8.8 8.2 7.5 6.9 6.8 COR 5.2 4.1 5 4.9 Gross 4.1 3.9 10.8 3.1 11.5 9.2 9.1 profit 7.6 3.4 3.8 2.7 3 3.3 2.1 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 202
Slide 22: Revenue breakdown
Adcore's Q3 Earnings Call | November 2023 T SX: A D CO | OTCQX: A D CO F Revenue breakdown North America -18% YoY 20% of total APAC +19% YoY EMEA +20% YoY 32% of total 48% of total 22
Slide 23: Net cash from (used in) operation activities
3,000 Adcore's Q3 Earnings Call | November 2023 2,000 1,581 Net cash from (used in) 1,000 operation activities 0 -1,000 CAD in thousands -2,000 (1,711) Q3 2023 Q3 2022 23
Slide 24: Net cash from (used in) operation activities
3,000 Adcore's Q3 Earnings Call | November 2023 2,000 1,581 Net cash from (used in) 1,000 operation activities 0 (429) -1,000 CAD in thousands (1,051) -2,000 Q3 2023 Q2 2023 Q1 2023 24
Slide 25: Financial Position - Assets
Adcore's Q3 Earnings Call | November 2023 T SX: A D CO | OTCQX: A D CO F Financial Position - Assets CAD in million 30.09.2023 31.12.2022 Adtech total CURRENT ASSETS capitalization Cash and cash equivalents 7.6 8.8 in the 3 months ended September Trade accounts receivable, net 5.1 6.3 30,2023 was 0.
Slide 26: Financial Position - Liabilities
Adcore's Q3 Earnings Call | November 2023 T SX: A D CO | OTCQX: A D CO F Financial Position - Liabilities CAD in million 30.09.2023 31.12.2022 Debt free CURRENT LIABILITIES Trade accounts payable 4.2 4.8 Other accounts payable 1.2 1.2 Lease liability 0.1 0.3 Total current liabilities 5.5 6.3 NON-CUR
Slide 27: Adjusted EBITDA
Adcore's Q3 Earnings Call | November 2023 T SX: A D CO | OTCQX: A D CO F Adjusted EBITDA Three months ended Three months ended CAD in thousands September 30, 2023 September 30, 2022 Operating profit (loss) - 428 Depreciation and amortization 208 230 Share-based payments 32 76 Total Adjustments 240 3
Slide 28: Q&A
Adcore's Q3 2023 Earnings call | November 2023 Q&A 28
Slide 29: Thank You.
TSX: A DCO | OTCQX: A DCOF Thank You. For more information visit adcore.com/investors