Adcore Inc (TSX:ADCO) has reported the largest revenue increase in its history for fiscal 2021, driven by new product offerings, international expansion and continued overall growth in e-commerce activity.
The Toronto-based company said total revenue for the year ended December 31, 2021, increased by 57% to C$35.7 million, while adjusted underlying earnings (EBITDA) rose 17% to C$3.9 million. Total working capital amounted to C$13 million at the end of its financial year, an increase of 67%, and it had cash and cash equivalents of C$14.1 million, compared to C$11.7 million a year earlier.
“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,” Adcore CEO Omri Brill said in a statement. “As we drive growth going forward, our goal is to continue to build on high margin revenue streams."
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For the three months ended December 31, 2021, Adcore reported total revenue of C$9.7 million compared to C$13.4 million for the same period in 2020. Gross profit amounted to C$3.2 million, up from C$3 million, while operating profit surged to C$736,000 from C$161,000 in 4Q 2020.
Highlights for the year include:
- Launched the Amphy.com platform, the world's most diverse 24/7 live learning marketplace - since it formally launched Amphy in July 2021, Adcore 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 US 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
"While this was a record year and fourth quarter for the company from an operational perspective, highlighted by 57% annual revenue growth and 356% year-over-year 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 the United States, raising C$4.1 million, and launching Amphy and the Adcore Marketing Cloud,” Brill concluded.
Adcore offers digital marketing solutions that empower 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
Established in 2006, the company employs over 50 people at its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong, and Shanghai, China.
Contact the author at stephen.gunnion@proactiveinvestors.com