Adcore Inc.

Good morning, everyone, and welcome to Adcore's Investor Update Conference Call. All attendees are in a listen-only mode for the duration of this conference. On the call today, the company's CEO, Omri Brill, will provide a management declaration. This will be followed by an introduction from Adcore's Director of Finance, Amit Konforti, and subsequently, Adcore's CFO, Yatesa Dot, will present a financial overview of the company's Q3 2023 financial statements. We will then address present questions and time permitting, take questions from participants in the chat below. Before we proceed any further, I want to ensure your attention to the safe harbor statement applicable to our discussion today. It's important that you take a few minutes to read this statement carefully. The statement will also be viewable on our website once the call is finished. As mentioned, the statement will be viewable on our website afterwards, but I will now be turning the call over to Adcore CEO Omri Brill.

Thank you very much, Danny. And welcome everyone. Let me share my screen. Okay.

So again, welcome everyone. And it's my pleasure to discuss at CoWay Q3 2023 financial results with you and give you some context and highlights. But actually, before we can start to get started talking about Q3 results, I would like all of us to take a moment to talk about the overall results terror attacks that Hamas did on Israel on October 7, almost a bit more than one month ago. I would like to obviously say that the hearts of everyone here in Edco goes to the families that lost a loved one during this horrible attack. And obviously we pray with the rest of you for the quick return of all the kidnaps. So it's not an easy time for us now in Israel, but I can say that it's also a very encouraging time for us in Israel. There's a lot of people that are stepping up, whether as individuals, as companies, taking some action, supporting the communities. And basically, I'm always proud to be Israeli, but in times like that, I'm even more proud than ever to be Israeli. And I would like to discuss with you a few very important initiatives that Edco took as a company in order to support the communities. So I don't know if everyone is aware, but due to the war, more than 200,000 children and their families from border towns around Israel, mainly in the south and north of Israel, have to be evacuated. So these communities evacuate to kibbutzes, evacuate to hotels in the center of the country, And basically, there's a lot of needs to support these evacuated communities, and EdCorp took a few initiatives regarding that. The first initiative I would like to cover is what we call IC3. So basically, we open an ice cream booth and go to each community, and we visited more than 10 communities around Israel. with the ice cream booth. So the Icy Treat is one initiative and you can see some familiar faces from Edco taking part of this amazing initiative, obviously including myself and other within the management and the rest of the team here in Tel Aviv. And I want to cover another initiative that we took, which is, I would say, currently the main focus of the company as an initiative and what we call the Keep on Riding project. So under the initiative of the Keep on Riding, we decided that we would like to contribute new or used bikes to children from these evacuated communities. So it started as a need to come from specific communities that we knew that were evacuated, and we decided we can expand it and reach more kids and more communities. And obviously, with your help, we can reach even more. So I would like to share another video from this effort, and then we can discuss this effort a bit further. So, So this specific project is very dear to our heart. Collectively, between what Edco contributed to this project, what management and individuals contributed to this project, we already collected more than 100,000 checkers to this project. And we hope that with your help and the help of others, we can collect even more and reach even more children in need. and so basically we're going to share this presentation but you can donate clicking on this button donate now or you can simply visit our the company website at core.com and find more details about this important project and how can you help and take part of it so i encourage everybody to take involved usually you say that when you give something you get more in returns at what you're actually given and i can tell you that that's that's actually true and helping these communities and helping these kids is is the most important thing we can do right now as individuals and obviously as company it's important and we need your help continue supporting this uh important project And so after we discussed some initiative, obviously following the 7th of October attack, I want to go deeper into the Q3 2023 report and provide some highlights and context to the numbers. And so all in all, yet another strong quarter for the company and this strong quarter go back to back with And not like first strong first quarter results, strong second quarter result, and now a strong third quarter result. So definitely a very positive start of the year. We already collected more than 80 or 86%, if I'm not mistaken, revenue this year than what we did in the entire year of 2022. And bear in mind that Q4 historically is the strongest quarters of the month for us. So this is like still more good news hopefully to come. And if you look at about the top line numbers and gross profit, so total revenue in Q3 were 8.2 million Canadian. That's representing 10% year-over-year growth compared to the previous period last year. And if you look at the nine months, we're looking at almost 30% year-on-year growth, which is a very strong indicator of how the entire year of 2023 is going to end for us. Gross profit, again, we saw quarter over quarter increase of more than a 10% to 3.3 million. And all in all, both top line numbers and midline numbers looking positive for us. And if you're looking at quality gross KPIs and gross margin was 40%, which is within the norm of what we're likely to be between 40 to 50%. So again, where we would like it to be in North America was remain a flat what we expect to see a very strong growth in North America actually in Q4 and obviously in 2024 in general. So we are very optimistic about what we can achieve in this specific market. If we talk a bit about Amphi results and a few highlights regarding the results, we discussed that we would like to reduce the burn rate in Amphi for the bare minimum. So if the average burn rate in Q1 2023 monthly burn rate was 81,000 Canadian, we already reduced it by 50% to 41%. a Canadian in Q3 2023, and we expect this trend to continue in Q4 2023 to 25,000 Canadians. So again, the bear rate is now going to be in the bear minimum. And there's something that we are definitely seeing very positively about. And from the flip side, when we look at the number of visitors to Amphiblog.com and Amphiblog, you can see definitely positive trend of increasing numbers of visitors. Q1 was 48,000. Q2 was a bit less than 100K. Q average monthly, Q3 was 115K average monthly visitors, and then we expect Q4 to end up in around 130,000 monthly visitors. So again, the two graphs are act exactly the way we want them to act, cost going down, number of visitors going up, which is obviously positive. And so just to sum up, revenue grew 10% year over year. If you look at nine months, it's almost 30% year over year, which is amazing. IMEA, solid growth of 20% year over year. APAC, solid growth of almost 20% year over year. And cash and cash equivalent grew by 21%. This is actually something that we are, it was a focus for the company. And if you remember in previous earning call, we discussed that the company anticipated to have like a stronger balance sheet towards the second part of the year. And actually it came a bit earlier than what we anticipated. So we are very happy with the result. Both in cash flow and cash position for the company, which were improved. significantly in the third quarter of the year. And Yatir will provide a bit more color to these numbers on his presentation as well. Comparables, so again, when we look about the current share price and the company valuation, obviously there's a big gap between what we think the share price should be and where it is. This gap for us at least represent an opportunity. This is why Edco continued to purchase shares within the market. Obviously, every day we buy the maximum allowed amount of shares that we can do under the NCIB plan. And we continue to do so as long as we think the share price don't really represent the true company valuation. So I think, again, for us, this gap represents an opportunity, but every shareholder is obviously smart enough to do his own calculation. And finally, I would like to discussed regarding 2023, the beginning of the year, and see if the company was enabled to meet them or not. So the first goals that we took on ourselves in Q3 was to maintain a strong balance sheet. So obviously now in Q3, both cash position, cash flow were improved, and we are very optimistic about what we can achieve in Q4 as well. Obviously, traditionally, Q4 should be the strongest quarter of the year. So again, Improve the balance sheet, and we expect the balance sheet to improve even further during the last quarter of the year. range again checked on this one achieved double digits growing revenue and gross profit checked the company grew 10% in the third year on the third quarter and grew almost 30% for the nine months of 2023 compared to the same period last year and expand our global footprint in North America. So again, we saw good results coming from all regions, but the company is very optimistic about the goals we can achieve in North America, specifically from Q4 and beyond. And that's something that we definitely will encourage you to keep a closer look on, because that's a big market for us and it presents a massive opportunity for the company. And striking a strategic partnership, check, you know, Microsoft, 3T or RTB, and I can name a few more names like that, that all of them have a very strong partnership with Adcore, obviously Google, and Facebook, or Meta as well, and invest in R&D. So our continued investment in R&D is responsible to some of the fruits that we see now in the Q3, earning a report. So again, all the goals which you took on OCEF in 2023, I can proudly say that we met all of them and hopefully the same positive trend that we saw in, let's say, in the first three quarters of the year will continue into Q4 as well. So I think with that, I concluded my part and I'm going to end it over back to you, Danny.