TORONTO, ON / ACCESSWIRE / March 14, 2022 / 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, 2021.

Full Year Highlights

• Total revenue for the year ended December 31, 2021, increased 57% to CAD$35.7 million compared to CAD$22.8 million in 2020.
• Adjusted EBITDA for the year ended December 31, 2021, was CAD$3.9 million, compared to CAD$3.3 million in 2020, an increase of 17%.
• As of December 31, 2021, total working capital was CAD$13.0 million compared to CAD$7.8 million on December 31, 2020, an increase of 67% or CAD$5.2 million.
• As of December 31, 2021, the Company's cash and cash equivalents were CAD$14.1 million, compared to CAD$11.7 million for the year ended December 31, 2020, an increase of CAD$2.4 million.
• Launched the Amphy.com platform, the world's most diverse 24/7 live learning marketplace. Adcore formally launched Amphy in July 2021 and has screened and onboarded 300+ teachers and is actively offering 1,800 classes across 80 categories to thousands of students to date.
• Established a United States subsidiary to target the increasing demand for digital marketing solutions in the U.S. market.
• Launched the Adcore Marketing Cloud, which brings together the Company's four applications under one scalable cloud-based platform, continues to unlock new verticals and expand market opportunities.
• Grew the Adcore team with the addition of 17 new employees worldwide.

Fourth Quarter Highlights

• Total revenue for the three months ended December 31, 2021, was CAD$9.7 million compared to CAD$13.4 million for the same period in 2020.
• Gross profit for the three months ended December 31, 2021, was CAD$3.2 million, compared to CAD$3.0 million for the same period in 2020, an increase of 5%. Gross margin for the three months ended December 31, 2021, was 33% compared to 23% for the same period in 2020, an increase of 46%.
• Operating profit for the three months ended December 31, 2021, was CAD$736 thousand compared to CAD$161 thousand for the same period in 2020, an increase of 356%.
• Adjusted EBITDA for the three months ended December 31, 2021, was CAD$1.2 million compared to CAD$1.0 million for the same period in 2020, an increase of 17%.

* 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, 2021 can be found below and on the Company's profile at www.sedar.com.

"2021 full year results saw the largest revenue increase we have achieved in the Company's history, driven by new product offerings, international expansion and continued overall growth in e-commerce activity," commented Omri Brill, Chief Executive Officer of Adcore. "Also, throughout the year we strategically focused on growing our higher margin indirect sales reflected in the considerably higher margins we achieved in the fourth quarter. As we drive growth going forward, our goal is to continue to build on high margin revenue streams."

Mr. Brill continued, "While this was a record year and fourth quarter for the Company from an operational perspective, highlighted by 57% annual revenue growth and 356% YoY growth in quarterly operating profit, at the same time we took many strategic initiatives laying the foundation for future sustainable growth: graduating to the TSX, opening subsidiaries in China and the United States, commencing trading on the OTCQX in United States, raising CAD $4.1 million, and launching Amphy and the Adcore Marketing Cloud."

Mr. Brill concluded, "On the heels of a record 2021, we head into 2022 with a strengthened, diversified, and higher margin platform. We continue to hire the best talent in the industry to fulfill the growing demand by existing and new customers, and we have never been more optimistic about Adcore's future."

Conference Call and Webcast Information

Adcore will host a conference call to discuss its fourth quarter and year end 2021 financial results at 10:00 a.m. ET on Tuesday, March 15, 2021.

To register for the conference call please click here or visit 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 during the third quarter, which 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, 2021. 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, 2021 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 interim financial statements for the three months ended December 31, 2021, 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, 2021, and December 31, 2020, 0.78 and 0.79 respectively.

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/ or follow us on LinkedIn

ABOUT AMPHY

Founded in 2020 in the midst of the pandemic, Amphy is the world's most diverse 24/7 live online learning marketplace. With Amphy, learners can choose from over 1,200 classes across 80 categories to grow their passions and skills, expand their children's learning opportunities, and much more. Instructors on the Amphy platform join a vibrant virtual teacher community that promotes and supports their success through enrichment seminars, marketing and advertising, and a suite of tools that allow them to run their classes hassle-free and focus on their students. Amphy students gain access to high-quality, personalized classes accessible from 24/7, as well as join a growing community of lifelong learners.

For more on Amphy please visit - https://www.amphy.com/ or follow us on LinkedIn, Facebook, Instagram and YouTube.

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/

ADCORE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

ADCORE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

SOURCE: Adcore Inc.