Slide 1: Adcore's Q2 Earnings Call August 2023
TSX: A DCO | OTCQX: A DCOF Adcore's Q2 Earnings call August, 2023
Slide 2: Hosts
Adcore's Q2 Earnings Call | August 2023 T SX: A D CO | OTCQX: A D CO F Hosts Yatir Sadot Omri Brill Kovi Fine CFO CEO GENERAL MANAGER 2
Slide 3: Agenda
Adcore's Q2 Earnings Call | August 2023 Agenda • Forward Looking Statements • CEO Opening Remarks • CFO Financial Highlights • Q&A 3
Slide 4: Forward Looking Statements
Adcore's Q2 Earnings Call | August 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 out
Slide 5: CEO Opening Remarks
Adcore's Q2 Earnings Call | August 2023 CEO Opening Remarks
Slide 6: Q2 2023 Performance
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F Q2 2023 Performance: Q2 2023 was a very strong quarter for us, marked by significant achievements and positive growth. Before We Dive Deeper: • I want to take the opportunity to discuss more high-level strategic opportunities
Slide 7: Industry Changes
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F 1 Industry Changes 7
Slide 8: Tectonic Industry Changes
Adcore’s Investors Presentation | August 2023 TSX: A DCO | OTCQX: A DCO F Tectonic Industry Changes Google and Meta's ad dominance fades Share of U.S. digital ad spend, by channel type Annual; 2008–2024 (projected). Source: axios 8
Slide 9: Tectonic Industry Changes
Adcore’s Investors Presentation | August 2023 TSX: A DCO | OTCQX: A DCO F Tectonic Industry Changes Raise of emerging markets and platforms Distribution of internet advertising spending worldwide from 2000 to 2024, by region. Source: statista 9
Slide 10: Adcore's Strategic Opportunities
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F Adcore’s Strategic Opportunities 2007 Client Acting as a gateway to multi-regional and multi-channel reach 2023 Client 10
Slide 11: Adcore is Accelerating
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F 2 Adcore is Accelerating 11
Slide 12: Geographical Expansion
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F Geographical Expansion It took us a decade to expand from one office to two. However, ever since we went public just four years ago, we have accelerated our growth, expanding from two offices to six! 12
Slide 13: Adcore's Strategic Opportunities
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F Adcore’s Strategic Opportunities Complete oversight of the entire media journey Account Feed Campaign Monitoring, Creation & Creation & Creation & Reporting & Financing Submitting Optimization Analyzing 13
Slide 14: Vertical Integration
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F Vertical Integration The vertical integration strategy brings together various elements of the marketing ecosystem. This approach opens doors for multiple upselling and cross-selling opportunities. 14
Slide 15: Adcore's Investors Presentation August 2023
Adcore’s Investors Presentation | August 2023 TSX: A DCO | OTCQX: A DCO F 15
Slide 16: Gateway to multi-regional and multi-channel accessibility
Adcore’s Investors Presentation | August 2023 TSX: A DCO | OTCQX: A DCO F Serving as a gateway to enable multi-regional and multi-channel accessibility, connecting businesses and customers effortlessly. 16
Slide 17: Q2 2023 Report Highlights
Adcore’s Investors Presentation | August 2023 T SX: A DCO | OTCQX: A DCO F 3 Q2 2023 Report Highlights CEO Remarks 17
Slide 18: Quarterly Revenue
8.8 Adcore's Q2 Earnings Call | August 2023 7.5 6.8 6.9 Quarterly Revenue 5.2 CAD in million 3.8 3.4 Revenue (↑33% YoY) 3 2.7 Gross profit (↑41% YoY) 2.1 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 18
Slide 19: Quality Growth KPIs
YoY 43% Gross Profit 46% ↑41% 3.8M 43% 3.4M 40% 3M Adcore's Q2 Earnings Call | August 2023 40% 2.7M Quality 2.1M Growth KPIs Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 CAD in millions YoY ↑16% 2M 1.9M 1.67 M 1.55 M Gross margin 1.4M North America revenue Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 19
Slide 20: Highlights
Monthly Average Burn Rate Q2 Adcore's Q2 Earnings Call | August 2023 ↓11% ↓3% ↓6% 120 107 ↓16% 103 97 Highlights ↓19% 81 ↓17% 66 ↓13% 55 48 USD in thousands Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 115,000 Amphy Monthly Average Blog Visitors 97,000 48,000 25,000 8,000 2,800 3,
Slide 21: Report Highlights
Adcore's Q2 Earnings Call | August 2023 Report Quarterly Highlights • Revenue grew 33% YoY • Gross profit grew 41% YoY • EMEA revenue grew 50% YoY • North America revenue grew 16% YoY • APAC revenue grew 29% YoY 21
Slide 22: Comparable Companies
Comparable COMPANY NAME TICKER MARK CAP ENTERPRISE VALUE (EV) EV / GROSS PROFIT EV / EBITDA (ADJ) Companies Illumin Holdings Inc Criteo SA Evertz Technologies Ltd ILLM US CRTO US ET CN 134 2,302 1,347 86 2,139 1,373 3.8 1 2 -33.3 21.4 9.3 Inuvo Inc INUV US 43 42 0.7 -2.8 Significant share price u
Slide 23: Adcore Share Purchases by the Company
Adcore's Q2 Earnings Call | August 2023 T SX: A D CO | OTCQX: A D CO F Adcore Share Purchases by the Company Quantity Share Price Value (CAD) Q2/23 Company NCIB purchase 285,500 0.23 $ 66,649 Quantity Share Price Value (CAD) Total accumulated NCIB purchases Including 7/23 1,669,500 0.27 $ 456,608 Sh
Slide 24: 2023 Targets
Adcore's Q2 Earnings Call | August 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. Ame
Slide 25: CFO Financial Highlights
Adcore's Q2 Earnings Call | August 2023 CFO Financial Highlights
Slide 26: Comprehensive Income
Adcore's Q2 Earnings Call | August 2023 T SX: A D CO | OTCQX: A D CO F Comprehensive Income Three months ended Three months ended CAD in million June 30, 2023 June 30, 2022 YoY 33% growth in Revenues 6.9 5.2 +33% Q2-23 vs. Q2-22 Revenues Cost of revenues 3.9 3.1 Gross profit 3 2.1 +41% 41% growth in
Slide 27: Total Revenues
Adcore's Q2 Earnings Call | August 2023 Total Revenues 35.7 CAD in millions 26.7 22.8 24.9 15.2 ↑+38% YoY 13.6 13.7 ↑+33% YoY 9.9 8.8 7.5 6.9 6.8 8 COR 4.7 5.2 5.8 4.1 5 Gross 4.1 3.9 10.8 3.1 11.5 2.7 9.2 profit 3.8 4.1 5.7 2 2.1 3.4 2.7 3 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2020 2021 2
Slide 28: Revenue breakdown
Adcore's Q2 Earnings Call | August 2023 T SX: A D CO | OTCQX: A D CO F Revenue breakdown North America +16% YoY 24% of total APAC +29% YoY EMEA +50% YoY 38% of total 38% of total 28
Slide 29: Net cash used in operation activities
2,500 Adcore's Q2 Earnings Call | August 2023 2,000 Net cash used in 1,500 1,349 operation activities 1,000 500 406 CAD in thousands 0 Q2 2023 Q2 2022 29
Slide 30: Financial Position - Assets
Adcore's Q2 Earnings Call | August 2023 T SX: A D CO | OTCQX: A D CO F Financial Position - Assets CAD in million 30.06.2023 31.12.2022 Adtech total CURRENT ASSETS capitalization in Cash and cash equivalents 6.2 8.8 the 3 months ended June Trade accounts receivable, net 5.0 6.3 30,2023 was 0.22 Othe
Slide 31: Financial Position - Liabilities
Adcore's Q2 Earnings Call | August 2023 T SX: A D CO | OTCQX: A D CO F Financial Position - Liabilities CAD in million 30.06.2023 31.12.2022 Debt free CURRENT LIABILITIES Trade accounts payable 2.6 4.8 Other accounts payable 1.2 1.2 Lease liability 0.1 0.3 Total current liabilities 3.9 6.3 NON-CURRE
Slide 32: Adjusted EBITDA
Adcore's Q2 Earnings Call | August 2023 T SX: A D CO | OTCQX: A D CO F Adjusted EBITDA Three months ended June Three months ended June CAD in thousands 30, 2023 30, 2022 Operating profit (loss) (406) (587) Depreciation and amortization 201 269 Share-based payments 126 123 Other non-operational items
Slide 33: Q&A
Adcore's Q2 2023 Earnings call | August 2023 Q&A 33
Slide 34: Thank You.
TSX: A DCO | OTCQX: A DCOF Thank You. For more information visit adcore.com/investors