Highlighted by a 43% increase in gross margin and over 20 new strategic customers, positioning Adcore for long-term success.

TORONTO, ON / ACCESSWIRE / March 29, 2023 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ)(TSX:ADCO-WT), a leading e-commerce advertising management and automation platform to leverage digital marketing in an effortless and accessible way ("Effortless Marketing"), today announced its financial results for the three and twelve months ended December 31, 2022.

"Adcore's 2022 was a pivotal year for us, as we focused on profitability and operational efficiency and expanding customer concentration," said Omri Brill, CEO of Adcore.

"Despite the post COVID challenges we faced in the first half of 2022, we are proud to report that our company has achieved several significant accomplishments. We saw a 43% increase in gross margin, which demonstrates our focus on maximizing profitability. Additionally, we achieved an increase in strategic regional revenue, with EMEA and North America experiencing a 71% and 125% increase, respectively. We also expanded our team by adding new employees worldwide, demonstrating our commitment to growth and innovation.

"We are thrilled to have added more than 20 new strategic customers to our portfolio in 2022 and to further diversify our customer base. This is a clear testament to the strength of our sales team and the value we provide to our clients. Our sustained effort has resulted in strong momentum in the second half of the year, culminating in impressive financial results. We exceeded our fourth quarter gross profit guidance, with CAD $3.8 million, and achieved revenue at the high end of our guidance, with CAD $8.8 million. We are proud of these achievements and are committed to building on this success in the coming year.

"Furthermore, our cash and cash equivalents were CAD$8.8 million as of December 31, 2022, and our total working capital was CAD$9.3 million, showing our commitment to financial responsibility and prudent management. We are committed to creating long-term value for our stakeholders, and we are confident that we are well-positioned to achieve our goals in the coming year," Mr. Brill concluded.

Full-Year Highlights

• Total revenue for the year ended December 31, 2022, was CAD$26.6 million compared to CAD$35.7 million in 2021, a 25% decrease.
• Gross margin for the year ended December 31, 2022, was 43% compared to 30% for the year ended December 31,2021, a 43% increase.
• Adjusted EBITDA for the year ended December 31, 2022, was CAD$1.4 million, compared to CAD$3.9 million in 2021, a 64% decrease.
• Increase in strategic regional revenue with EMEA increasing from CAD$6.5 million to CAD$11.1 million, an increase of over CAD$4.6 or 71%, while North America increased from CAD$2.6 million to CAD$5.9 million, an increase of over CAD$3.3 million or 125%
• As of December 31, 2022, total working capital was CAD$9.3 million, compared to CAD$13 million on December 31, 2021, a 29% decrease.
• As of December 31, 2022, the Company's cash and cash equivalents were CAD$8.8 million, compared to CAD$14.1 million for the year ended December 31, 2021.
• The company signed more than 20 new customers in 2022.

Fourth Quarter Highlights

• Total revenue for the three months ended December 31, 2022, was CAD$8.8 million compared to CAD$9.7 million for the three months ended in December 2021, a 9% decrease.
• Gross profit for the three months ended December 31, 2022, was CAD$3.8 million, compared to CAD$3.2 million for the three months ended in December 2021, a 19% increase. Gross margin for the three months ended December 31, 2022, was 43% compared to 33% for the same period in 2021, an increase of 30%.
• Operating profit for the three months ended December 31, 2022, was CAD$87 thousand compared to CAD$739 thousand for the three months ended in 2021, a 88% decrease.
• Adjusted EBITDA for the three months ended December 31, 2022, was CAD$0.65 million compared to CAD$1.2 million for the three months ended in 2021, a 47% decrease.

* Additional information concerning Adcore's audited consolidated financial statements and related management's discussion and analysis for the three and twelve months ended December 31, 2022 can be found below and on the Company's profile at www.sedar.com.

First Quarter 2023 Guidance

With the Company's visibility today, Adcore expects revenue in the first quarter 2023 to be in the range of CAD$6 million to CAD$6.5 million, with expected gross profit ranging between CAD$2.25 and CAD$2.6 million and expected gross margin of 38% to 40%.

Conference Call and Webcast Information

The Company will host a conference call and webcast to discuss these results on March 30th at 10AM ET

To register for the conference call/webcast please click here or visit: https://click.adcore.com/q4-conference-call

The conference call will include a brief statement by management and will focus on answering questions about Adcore's results. Questions regarding results can be sent in advance to invest@adcore.com.

Use of Non-IFRS Measures

Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") as a key financial metric to evaluate Adcore's operating performance and for planning and forecasting future business operations. Adjusted EBITDA excludes significant items that are non-operating in nature in order to evaluate Adcore's core operating performance against prior periods. Adjusted EBITDA is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, overall change in cash or liquidity of the business as a whole. Management believes the use of Adjusted EBITDA allows investors and analysts to understand the results of the continuing operations of the Company and its subsidiary, by excluding certain items that have a disproportionate impact on Adcore's results for a particular period. Management's method of determining non-GAAP financial measures is evaluated periodically and may differ from other companies' methods and therefore may not be comparable to those used by other companies.

The following table reconciles the non-IFRS measure to the most comparable IFRS measure for the three and twelve months ended December 31, 2022. This measure does not have any standardized meaning under IFRS and is not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies.

Additional information concerning Adcore's audited consolidated financial statements and related management's discussion and analysis for the three and twelve months ended December 31, 2022 can be found on the Company's profile at www.sedar.com. All amounts are in CAD and are based on Adcore's condensed consolidated financial statements for the year ended December 31, 2022, and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.

Amounts in this press release are in CAD based on the following USD to CAD average exchange rates for each of the relevant periods: For the three months ended December 31, 2022, and December 31, 2021, 0.74 and 0.78 respectively.

ADCORE INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

ADCORE INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

About Adcore

Adcore is empowering entrepreneurs, advertisers, and the future of e-commerce through its advertising management and automation platform. By combining extensive industry knowledge and experience with its proprietary artificial intelligence engine, Adcore offers a unique digital marketing solution that empowers entrepreneurs and advertisers by managing and automating their e-commerce store advertising and monitoring and analyzing the performance of their advertising budget to ensure maximum Return on Investment. In addition to being named numerous times on Deloitte's Fast 50 Technology list, Adcore is a certified Google Premier Partner, Elite Tier Microsoft Partner, Facebook Partner and TikTok Partner.

Established in 2006, the Company employs over fifty people in its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong and Shanghai, China.

For more information about Adcore, please visit https://www.adcore.com/investors/,https://www.adcore.com/blog or follow us onLinkedIn.

Forward Looking Statements

This press release contains certain forward-looking statements, including statements about the Company. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

For further information please contact:

ADCORE INC.

https://www.adcore.com/investors/

SOURCE: Adcore Inc.