Slide 1: Adcore's Q3 Earnings Call
TSX: A DCO | OTCQX: A DCOF Adcore’s Q3 Earnings Call November 15, 2022
Slide 2: Hosts
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F Hosts Yatir Sadot Omri Brill Gabriala Ashkenazy CFO CEO MARKETING 2
Slide 3: Agenda
Adcore’s Q3 Earnings Call | November 2022 Agenda • Forward Looking Statements • CEO Opening Remarks • CFO Financial Highlights • Q&A 3
Slide 4: Forward Looking Statements
Adcore’s Q3 Earnings Call | November 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 o
Slide 5: CEO Opening Remarks
Adcore’s Q3 Earnings Call | November 2022 CEO Opening Remarks
Slide 6: Quarterly Revenue
7.5 Adcore’s Q3 Earnings Call | November 2022 Quarterly 4.7 5.2 Revenue CAD in million 3.4 2.1 Revenue (↑45% QoQ) 2 Gross profit (↑62% QoQ) Q1 2022 Q2 2022 Q3 2022 6
Slide 7: Quality Growth KPIs
YoY ↑100% 46% 46% 43% 40% Adcore’s Q3 Earnings Call | November 2022 33% Quality 23% 23% Growth KPIs Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 YoY CAD in thousands ↑183% 2,005 Gross margin 1,440 North America revenue 961 706 788 665 392 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3
Slide 8: Working Capital
15 Adcore’s Q3 Earnings Call | November 2022 Working 12 400k Capital 10.6 10.2 9 CAD in million 6 Working capital growth Q2 2022 3 Q3 2022 - (↑400k QoQ) • Total buyback - 133K • Investment in Amphy - 529K 0 Jun 22 Mar 22 8
Slide 9: Q3 New Development Marketing Cloud: Alerter
Adcore’s Q3 Earnings Call | November 2022 Q3 New Development Marketing Cloud: Alerter Monitor all your digital assets with 100% confidence Enable 24/7 monitoring of your website, data feeds, ad accounts, and other digital assets. Get instant email and app notifications. The Alerter app monitors your
Slide 10: Improved KPIs
Adcore’s Q3 Earnings Call | November 2022 Improved Q1-3 | 2021 Q1-3 | 2022 % change KPIs Paying users Paying users ratio 440 9% 505 17% 15% 86% Avg LTV paying users $36 $49 35% Breakeven paying user $6.90 $9.29 35% Breakeven signup $0.92 $1.71 86% 10
Slide 11: Comparable Companies
Comparable COMPANY NAME TICKER MARK CAP ENTERPRISE VALUE (EV) EV / GROSS PROFIT EV / EBITDA (ADJ) Companies AcuityAds Holdings Inc Tucows Inc AT CA TC CA 119 508 37 393 0.6 4.6 7.7 17.0 QuinStreet Inc QNST US 1,007 900 14.1 77.8 Significant share price upside PubMatic Inc PUBM US 1,134 928 3.8 7.
Slide 12: Q3 Adcore Share Purchases by Company (NCIB)
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F Q3 Adcore Share Purchases by Company (NCIB) Quantity Share Price Value (CAD) Company NCIB 471,000 0.28 $133,584 TOTAL 471,000 $133,584 12
Slide 13: Forth Quarter Guidance
T SX: A D CO | OTCQX: A D CO F Adcore’s Q3 Earnings Call | November 2022 Forth Due to the expected high Quarter volume this holiday season, Guidance the Company will post fourth quarter guidance after the end of Black Friday and Cyber Monday. 13
Slide 14: CFO Financial Highlights
Adcore’s Q3 Earnings Call | November 2022 CFO Financial Highlights
Slide 15: Comprehensive Income
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F Comprehensive Income Three months ended Three months ended CAD in million September 30, 2022 September 30, 2021 YoY Record third Revenues 7.5 10.4 -28% quarter 3.4M and 45% Cost of revenues 4.1 8 -49% increase in Gross profit 3
Slide 16: Quarterly revenue growth
8 7.5 Adcore’s Q3 Earnings Call | November 2022 45% Quarterly 6 10% 5.2 4.7 revenue growth 4 2 CAD in million 0 Q1 2022 Q2 2022 Q3 2022 16
Slide 17: Revenue breakdown
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F Revenue breakdown CAD in thousands Q3-2022 Q3-2021 diff % Increase in revenues APAC 2,246 8,163 (5,917) -72% in North america by EMEA 3,247 1,542 1,705 111% $1,299 and 183% YoY North America 2,005 706 1,299 183% Increase in rev
Slide 18: QoQ Revenues by regions
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F QoQ Revenues by regions 3,500 87% CAD in 3,000 3,247 thousands 2,500 12% 6% 39% 2,000 2,246 -6% 2,001 2,005 1,888 1,844 50% 1,500 1,736 1,439 1,000 961 500 0 Q1 2022 Q2 2022 Q3 2022 Q1 2022 Q2 2022 Q3 2022 Q1 2022 Q2 2022 Q3 20
Slide 19: Financial Position - Assets
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F Financial Position - Assets CAD in million 30.09.2022 31.12.2021 CURRENT ASSETS Cash and cash equivalents 8.2 14.1 Trade accounts receivable, net 6.6 3.7 Other accounts receivable 0.9 0.8 Total current assets 15.7 18.6 NON-CURR
Slide 20: Financial Position - Liabilities
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F Financial Position - Liabilities CAD in million 30.09.2022 31.12.2021 Zero Debt CURRENT LIABILITIES Trade accounts payable 2.8 4.5 Other accounts payable 2.0 0.9 Lease liability 0.3 0.3 Total current liabilities 5.1 5.7 NON-CUR
Slide 21: Quarterly working capital
12 11 10.6 10.2 10 Adcore’s Q3 Earnings Call | November 2022 4% 9 400K Quarterly 8 7 working 6 capital 5 4 3 CAD in million 2 1 0 Q2 2022 Q3 2022 21
Slide 22: Adjusted EBITDA
Adcore’s Q3 Earnings Call | November 2022 T SX: A D CO | OTCQX: A D CO F Adjusted EBITDA Three months ended Three months ended CAD in thousands September 30, 2022 September 30, 2021 Operating (loss) profit 428 27 Depreciation and amortization 230 217 Share-based payments 76 318 Offering, listing & g
Slide 23: Q&A
Adcore’s Q3 Earnings Call | November 2022 Q&A 23
Slide 24: Thank You.
TSX: A DCO | OTCQX: A DCOF Thank You. For more information visit adcore.com/investors