The global market for advertising and marketing hit an estimated $322.5 billion in 2020, and could reach $640.2 billion over the next six years, says Reportlinker. That growth could be substantial for companies such as Adcore Inc. (TSX:ADCO)(OTC:ADCOF), Shopify Inc. (NYSE:SHOP), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Facebook Inc. (NASDAQ:FB). In addition, according to analysts at Statista, “Thanks to rising internet penetration rates and the ever-expanding popularity of digital platforms around the world, digital advertising has grown to become one of the most important forms of advertising. Nearly 356 billion U.S. dollars were spent on digital advertising in 2020. This figure is forecast to increase at a rapid pace in the upcoming years.”
Look at Adcore Inc. (TSX:ADCO)(OTC:ADCOF) for example
Adcore Inc.(TSX:ADCO)(OTC:ADCOF), a leading e-commerce advertising management and automation platform to leverage digital marketing in an effortless and accessible way announced its financial results for the three months and full year ended December 31, 2020.
Fourth Quarter and Full Year 2020 Highlights
- Total revenue increased 219% to $13.3 million compared to $4.2 million in the fourth quarter of 2019 and grew 224% sequentially compared to third quarter 2020 revenue. Full year revenue increased 52% to $22.8 million compared to $15 million for full year 2019.
- Adjusted EBITDA (see “Use of Non-IFRS Measures”) for the fourth quarter was $996,000 compared to $1.7 million for the same period in 2019. Adjusted EBITDA for the full year 2020 was $3.3 million compared to $5.6 million for full year 2019.
- As of December 31, 2020, total working capital was $7.8 million compared to $5.5 million at December 31, 2019, an increase of $2.3 million or 42%.
- As of December 31, 2020, the Company’s cash and cash equivalents were $11.7 million, compared to $4.9 million at December 31, 2019, an increase of $6.8 million or 138%.
Strong growth in direct channel revenue driven by e-commerce and international expansion
“We closed out 2020 achieving record revenues of $22.8 million for the full year and $13.3 for the fourth quarter, reflecting a dramatic increase in our direct clients’ e-commerce activities across all regions,” stated Omri Brill, Chief Executive Officer. “Our company rebounded tremendously from a challenging first half of 2020 to an astonishing all-time high in revenues. As the pandemic accelerated digital transformation worldwide and gave rise to the stay-at-home economy, we saw a tremendous increase in demand for our technologies as our clients looked for the most effective ways to leverage digital advertising. The Company remains very bullish for 2021 as it is witnessing this consumer behavior pattern continuing in the first quarter of this year.”
Mr. Brill continued, “Our growth strategy remains straightforward: ensuring advertisers and brands leverage our effortless marketing solutions to maximize their digital marketing performance, while continuing to supplement our solutions with state-of-the-art technological innovations. As we look towards the future, our direct channel revenue stream presents a growing market opportunity, fueled by growth in e-commerce as well as our international expansion, including our recent expansion into the Chinese market. Now more than ever, we are focused on growing our core value offering and strengthening our customer base.”
“Subsequent to the quarter, we announced our graduation to the Toronto Stock Exchange (TSX), an exciting milestone that reflects our success driving the organic growth that qualified Adcore to meet the rigorous TSX listing requirements. We’re excited to elevate our Company to this well-regarded exchange and we believe this platform will broaden our audience of international investors.” added Mr. Brill.
“We entered 2021 in a solid position and we are energized by the interest and opportunities we’re seeing across all of the regions in which Adcore operates. This is a pivotal time for our Company as global businesses accelerate their digital transformation and Adcore, a leader in e-commerce advertising technologies, stands ready to help online businesses increase their presence and brand recognition in the digital marketplace.” concluded Mr. Brill.
Conference Call and Webcast Information
Adcore will host a conference call to discuss its fourth quarter and full year 2020 financial results at 8:30 a.m. ET, today, Wednesday, March 31, 2021.
To register for the conference call please click here or visit http://bit.ly/AdcoreQ4
The conference call will include a brief statement by management and will focus on answering questions about Adcore’s results during the quarter and full year, which can be sent in advance to [email protected].
Other related developments from around the markets include:
Shopify Inc., a leading global commerce company, announced strong financial results for the fourth quarter and full year ended December 31, 2020. “The spirit of entrepreneurship was strong in 2020, as our merchants’ resilience and ability to adapt helped many of them thrive in a difficult year,” said Harley Finkelstein, Shopify’s President. “Shopify is at the heart of our merchants’ businesses with entrepreneurs around the world trusting us with their livelihoods. This year, we are doubling down on creating a frictionless path to successful entrepreneurship, as we continue to build a future-proof commerce solution to serve generations to come.”
Alphabet Inc. announced financial results for the quarter and fiscal year ended December 31, 2020. Sundar Pichai, CEO of Google and Alphabet, said: “Our strong results this quarter reflect the helpfulness of our products and services to people and businesses, as well as the accelerating transition to online services and the cloud. Google succeeds when we help our customers and partners succeed, and we see significant opportunities to forge meaningful partnerships as businesses increasingly look to a digital future.”
Microsoft Corporation announced it has helped over 30 million people in 249 countries and territories gain access to digital skills, topping its initial goal of 25 million last June, and is extending the company’s commitment to help 250,000 companies make a skills-based hire in 2021. From laid-off factory workers to retail associates and truck drivers, millions of people turned to online learning courses from GitHub, LinkedIn and Microsoft during the pandemic to help prepare for and secure the most in-demand roles, including customer service, project management and data analysis. The announcement, detailed on the Official Microsoft Blog, builds on the company’s efforts to help people by extending through 2021 free LinkedIn Learning and Microsoft Learn courses and low-cost certifications that align to 10 of the most in-demand jobs. The next stage of the initiative sets a new foundation for a skills-based economy through a suite of new tools and platforms designed to connect skilled job seekers with employers.
Facebook Inc. reported financial results for the quarter and full year ended December 31, 2020. "We had a strong end to the year as people and businesses continued to use our services during these challenging times," said Mark Zuckerberg, Facebook founder and CEO. "I'm excited about our product roadmap for 2021 as we build new and meaningful ways to create economic opportunity, build community and help people just have fun."
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Adcore Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Adcore Inc. Please click here for full disclaimer.
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