Q2 2024 Adcore Inc Earnings Call Transcript
Key Points
- Adcore Inc (ADCOF) reported a gross margin improvement from 43% in Q2 2023 to 44% in Q2 2024, indicating better profitability.
- North American market showed significant growth with a 22% increase in revenue year-over-year, highlighting successful market penetration.
- APAC region revenue grew by 6% year-on-year, showing recovery and growth in previously challenging markets.
- The company achieved an annual recurring revenue (ARR) of CAD1 million for its new media blast app within the first 12 months, demonstrating strong product-market fit.
- Adcore Inc (ADCOF) improved its operating cash flow, reducing cash use from $1.5 million in 2023 to $250,000 in 2024, indicating better financial management.
- Revenue for Q2 2024 decreased by 4% compared to the same period in 2023, reflecting a challenging quarter.
- EMEA region experienced a 27% decline in revenue year-over-year, attributed to reduced advertising budgets and stopped activities.
- Operating loss increased by 92% to $0.8 million in Q2 2024, primarily due to higher R&D amortization expenses.
- Adjusted EBITDA was negative $173,000, a significant decrease from the previous year, indicating challenges in achieving profitability.
- Client diversification dropped from 57% in 2023 to 42% in 2024, suggesting potential over-reliance on fewer clients.
Thank you, everyone, for your patience, as mentioned. Today, we'll be going over the Q2 results. Today, hosting you out myself, Nick Campbell, I'm Head of Investor Relations here at Adcore. You'll have Omri Brill, CEO and Founder; and Amit Konforty, CFO.
The agenda for today. Before we begin, I'll go over some forward-looking statements you should be aware of when listening to this call, followed by the CEO opening remarks, followed by the CFO financial highlights. And finally, we'll have a Q&A session at the end. If you do have a question during this call, please use the submit a question feature in Zoom, and we will address those at the end.
Now just before we begin, I'll go over some forward-looking statements, and you can have some time to review these, but these are statements about the business's future projections that are somewhat uncertain in nature. So, I'll give you a moment to review this, and then we'll move on to the CEO opening remarks.
Okay. And with that, we'll move over to Omri Brill, CEO, for his
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