Adcore Inc (TSX:ADCO) reported a triple-digit increase in its third-quarter revenue as it continued to benefit from strong growth in its direct channel revenue stream, driven by a high level of e-commerce, digital transformation and international expansion.
For the quarter ended September 30, 2021, the company said total revenue increased 153% year-over-year to C$10.4 million, taking total revenue for the first nine months of its 2021 financial year 180% higher to C$26 million.
"Our third-quarter results reflect the continued tremendous momentum the company has been experiencing since the fourth quarter of 2020,” Adcore CEO Omri Brill said in a statement.
“This is our fourth consecutive quarter achieving triple-digit YoY (year-on-year) growth, generating C$39.3 million TTM (trailing 12-month) revenue and 189% YoY growth, establishing Adcore as one of the fastest-growing public Ad-tech companies,” he added.
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The company also reported adjusted underlying earnings (EBITDA) for the quarter of C$585,000 compared to C$925,000 for the same quarter in 2020. For the first nine months, adjusted EBITDA rose 23% from a year earlier to C$2.7 million.
As of September 30, 2021, Adcore said its total working capital was C$13.2 million compared to C$7.8 million as of December 31, 2020. It added that its cash and cash equivalents were C$15.5 million, versus C$11.7 million as of December 31, 2020, an increase of C$3.8 million.
Adcore said e-commerce activity continues to grow exponentially, driving momentum and interest in its portfolio of technologies and services, as online retailers seek efficient and targeted advertising technology solutions to drive consumers to their products and demand measurement metrics to evaluate the success of each campaign.
“We are focused on continuing to capture the attention and business of the core online retail audience by surpassing their marketing technology needs,” Brill said.
"We had several milestone achievements during third quarter 2021, including the launch of the Adcore Marketing Cloud which brings together our four leading applications under one scalable cloud-based platform.”
By consolidating its solutions in one place, Adcore said it has made it even easier for its customers and partners to take their digital marketing to the next level.
The Adcore Marketing Cloud provides it with a more scalable platform and allows it to lay the foundation for potential third-party application integration and a much wider marketing solution vision, the company added.
Also during the quarter, Adcore said it experienced rapid growth with Amphy.com, already the world's most diverse 24/7 live online learning marketplace, and said it was intent on expanding and enhancing the platform's offerings to attract an even broader worldwide audience.
In October 2021, it launched a "social commerce" feature across all classes, allowing users to invite friends and family to share an Amphy class with a significant discount to the original price.
“We expect this feature to further enhance the platform's brand recognition and drive increased new users to the site,” said Brill.
Finally, it said it formed a US subsidiary to establish a strong foothold from which to leverage the increasing demand for digital marketing solutions in the US.
"Since becoming a public company, one of our main focuses has been to broaden our reach and expand our global operations,” Brill concluded.
"With the addition of our US subsidiary, we now have seven companies across four continents. We are energized by the opportunities represented by the lucrative US market, which is estimated to reach US$304 billion in digital ad spend by 2025."
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, Microsoft Partner, Facebook Partner and TikTok Partner.
Contact the author at stephen.gunnion@proactiveinvestors.com