Slide 1: Adcore's Q2 Earnings Call
TSX: A DCO | OTCQX: A DCOF Adcore’s Q2 Earnings Call August 11, 2022
Slide 2: Hosts
Adcore’s Q2 Earnings Call | August 2022 T SX: A D CO | OTCQX: A D CO F Hosts Yatir Sadot Omri Brill Barak Frank CFO CEO CORPORATE SECRETARY 2
Slide 3: Agenda
Adcore’s Q2 Earnings Call | August 2022 Agenda • Forward Looking Statements • CEO Opening Remarks • CFO Financial Highlights • Q&A 3
Slide 4: Forward Looking Statements
Adcore’s Q2 Earnings Call | August 2022 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 out
Slide 5: CEO Opening Remarks
Adcore’s Q2 Earnings Call | August 2022 CEO Opening Remarks
Slide 6: Quarterly Revenue
Adcore’s Q2 Earnings Call | August 2022 5.2 Quarterly 4.7 Revenue CAD in million Revenue ↑11% 2.1 Gross profit (5%↑) 2 Q1 2022 Q2 2022 6
Slide 7: Quality Growth KPIs
2,282 YoY 183%↑ 1,884 Adcore’s Q2 Earnings Call | August 2022 1,380 1,085 Quality 666 Growth KPIs 524 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 YoY CAD in thousands 116%↑ 1,440 Indirect revenue 961 788 North America revenue 665 706 392 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 7
Slide 8: Working Capital
15 Adcore’s Q2 Earnings Call | August 2022 Working 12 11.9 Capital 9 10.2 CAD in million 6 Working capital growth Q1 2022 3 Q2 2022 - QoQ (-14%) (-1.7) • Total buyback - 0.5M • Investment in Amphy - 0.5M 0 Mar 22 Jun 22 8
Slide 9: Q2 Adcore Share Purchases by Insiders and the Company
Adcore’s Q2 Earnings Call | August 2022 T SX: A D CO | OTCQX: A D CO F Q2 Adcore Share Purchases by Insiders and the Compnay Quantity Share Price Value (CAD) Company from former Officer 2,171,400 0.20 $434,280 Company by NCIB 274,500 0.23 $62,409 CEO 200,000 0.20 $40,000 Lead Director 150,000 0.20 $
Slide 10: New Website
Adcore’s Q2 Earnings Call | August 2022 Amphy's 3 Hubs Sleek Design and UX • Classes: New Live learning for every skill. Website • Trailers: Exciting teasers to give users a taste of the live experience. • Kids: Interactive education and activities for • Story View: Fullscreen, mobile-first children
Slide 11: Positive Outlook for the Second Year
T SX: A D CO | OTCQX: A D CO F Adcore’s Q2 Earnings Call | August 2022 Positive Tailwind Lower Expenses Outlook for *Travel *Seasonality *High level salaries the Second *Essentials Part of the Year Quality New Activities Growth Starting to bear fruit 11
Slide 12: Third Quarter Guidance
T SX: A D CO | OTCQX: A D CO F Adcore’s Q2 Earnings Call | August 2022 Revenue range: Third $6.1M - $6.75M Quarter Guidance Gross Profit range: $2.9M - $3.2M CAD in million Gross Margin: exceeding 45% 12
Slide 13: CFO Financial Highlights
Adcore’s Q2 Earnings Call | August 2022 CFO Financial Highlights
Slide 14: Comprehensive Income
Adcore’s Q2 Earnings Call | August 2022 T SX: A D CO | OTCQX: A D CO F Comprehensive Income Three months ended Three months ended CAD in million June 30, 2022 June 30, 2021 YoY Q2 Gross Revenues 5.2 7.0 -26% margin is 40% Cost of revenues 3.1 3.7 -16% compared to Gross profit 2.1 3.2 -34% 46% YoY Re
Slide 15: Financial Position - Assets
Adcore’s Q2 Earnings Call | August 2022 T SX: A D CO | OTCQX: A D CO F Financial Position - Assets CAD in million 30.06.2022 31.12.2021 MarTech total CURRENT ASSETS capitalization Cash and cash equivalents 9.0 14.1 in the last 6 Trade accounts receivable, net 3.9 3.7 months ended Other accounts rece
Slide 16: Financial Position - Liabilities
Adcore’s Q2 Earnings Call | August 2022 T SX: A D CO | OTCQX: A D CO F Financial Position - Liabilities CAD in million 30.06.2022 31.12.2021 Zero Debt CURRENT LIABILITIES Trade accounts payable 1.9 4.5 Other accounts payable 1.1 0.9 Lease liability 0.3 0.3 Total current liabilities 3.3 5.7 NON-CURRE
Slide 17: Revenue Breakdown
Adcore’s Q2 Earnings Call | August 2022 T SX: A D CO | OTCQX: A D CO F Revenue Breakdown CAD in thousands Q2 2022 Q2 2021 diff % An increase in Direct APAC 1,272 3,715 (2,443) indirect revenues EMEA 1,661 1,298 363 in North America as a continuation North America 361 1,706 (1,345) of the trend Direc
Slide 18: Revenue Mix Strategy
T SX: A D CO | OTCQX: A D CO F Adcore’s Q2 Earnings Call | August 2022 Revenue Q4 2021 Q1 2022 Q2 2022 Mix Strategy- 24% 29% 36% From 76% 71% 64% Quantity to Quality Indirect Direct Agency & Aggregator Advertiser clients 18
Slide 19: EBITDA
Adcore’s Q2 Earnings Call | August 2022 T SX: A D CO | OTCQX: A D CO F EBITDA Three months Three months MarTech Three MarTech Three ended June ended June months ended June months ended June CAD in thousands 30, 2022 30, 2021 30, 2022 30, 2021 Operating (loss) profit (587) 254 (315) 696 Depreciation
Slide 20: Q&A
Adcore’s Q2 Earnings Call | August 2022 Q&A 20
Slide 21: Thank You
TSX: A DCO | OTCQX: A DCOF Thank You. For more information visit adcore.com/investors