Hello, everybody. Thank you for being here for this opening presentation here at Planet Microcap Showcase . I'd like to introduce our first presenter here, Nick Campbell from Adcore.
Thank you, Robert, and thank you all for joining me today. Appreciate you waking up early to attend this presentation. As Robert mentioned, I'm Nick Campbell, head of IR here at Adcore. Truly excited to be here once again to present and provide you all an update on the company. At Adcore, we're driven by a simple idea. It's to make marketing effortless. We build technology that empowers our clients to maximize their digital marketing potential with our innovative marketing cloud. By combining technology and industry expertise, we are driving real results powered by AI. Through this presentation, I'll walk you through who we are, the market opportunity we're capturing, and how our technology is shaping the future of performance marketing. Just before we begin, please bear in mind there will be forward-looking statements today. Adcore, as I mentioned to you, is a leading AI-powered marketing technology company.
We were originally founded in 2006 in Tel Aviv, Israel, really as an agency working directly with advertisers. Through that venture, we saw a huge opportunity where technology could be created to address some pain points within the digital marketing journey. Today, we offer both a service and SaaS solution under our management. In 2019, we went public on the TSX Venture, and we've since been upgraded to the big board, and we maintain a very global reach with offices in Australia, China, the United States, Canada, and of course, Tel Aviv, where we originated. S o as I mentioned to you, Adcore's vision is quite a simple one. We believe marketing should be effortless. We're focused on removing the complexities to help our advertisers unlock better performance with our advanced technology.
Looking at the company from the capital markets perspective, coming off one of the better quarters in our history being Q4, the reason for that being is we've seen a number of initiatives really take hold, the first being one of our apps, Media Blast, which is very popular in the Asia-Pacific region, and a lot of success on the service side with our Australian office. In addition, we're focused on efficient operations. So, in Q2, we saw our gross margins up to 47%. This is an improvement from 30% back in 2021. We continue to see the fundamentals improve, and we expect this to continue as technology plays a bigger role in the company's revenue stream. To continue on the efficient operations team, we are profitable year over year on an adjusted EBITDA basis.
Much of our cash flow, if not all, is being reinvested into R&D and technology, where we can see scalable growth. And most importantly, here at Adcore, we're entrepreneurs. So, all the technology you see today, it's all organic, developed in-house here. We're creating the next generation of tools to enable marketers to unlock better performance. Looking at the industry in which we operate, it's massive, and it's growing at a strong pace, from roughly $900 billion in 2023 to $1.1 trillion in 2026. This is enormous growth, and it's a huge opportunity for companies like Adcore who help advertisers operate efficiently in an increasingly complex ecosystem. So, the challenge today in digital marketing, it's really not a lack of opportunities. In fact, it's quite the opposite. There's almost an overwhelming amount of different platforms and ways to approach these.
What this means is there's a lot of fragmentation within the market. There's more channels than ever. Each channel has their own nuance on how to approach it, whether it's search, social, CTV. There's an overwhelming amount of access and knowledge the average marketer or advertiser needs to hit their desired KPIs. And for large enterprises like your Nikes of the world, of course, they can employ a huge marketing department to really specialize and niche down into these specialties. However, for your SMBs or your smaller groups who may be out ahead of marketing or an account manager, that's really where we come into play and can really benefit them. We're able to really work and hold their hands and help them capitalize on a lot of opportunity costs out there. And again, that's really where we see the opportunity.
So, Adcore, we sit directly between the advertisers and the ad networks. So, whether you're doing simple admin tasks such as just creating accounts, doing your research and planning, optimizing your feeds, or managing the campaigns, followed by performance attribution, and finally managing your budgets, all those activities can be achieved in one hub, being the Adcore Marketing Cloud. So, we basically do everything from start to finish, giving advertisers a truly unified workflow. Adcore is in somewhat of a unique position in that we work on the front lines of the digital marketing world as an agency. And from that, we can really take those agency insights and turn those into our strategic advantage for technology creation and R&D. This is really the genesis and the origin of all our technology we discuss today.
It started from real-life pain points that we realized through working with our clients, and we've turned those into solutions and to take another step back and kind of go over the origins, again, originally, as a performance-based agency, we were really focused on campaign creation, creating tools that could allow our clients to get the best return on ad spend and hit their metrics. However, we understood that even before you get to those steps, there's a number of areas that technology could be created for and after that step, started somewhere in the middle of the marketing journey with our technology creation, and then went more to the beginning with the account creation, media research, and planning, and then created technology after for your performance attribution and your finance management. Now we have a full ecosystem that does everything from start to finish.
The apps that we talked about today are all accessible on the Adcore Marketing Cloud, so a good comparison is Adobe. You can either subscribe to the one or the whole suite, and the rate varies depending, but it's available on the cloud, so you can access it anywhere, anytime. When we went public in 2019, we originally had two apps under our management. Since that time, we've been able to finance, cash flow, and other in seven. This is a preview of the apps today. A few that I'll talk about is Media Blast, which is our newest app. This is quite a simple app, all about account creation and financing, really targeted towards our agency clients. Basically, it allows them to get set up on all the major platforms out there very simply and fund those accounts.
This app, about two years old, in the first year, it did about $1 million in ARR. Fast forward six months later, it hit CAD 2 million. And as of April 2025 this year, it's at about CAD 2.3 million in ARR. We continue to see strong demand for this app, increasing users and the users who are on the app sticking around, increasing their budgets, which makes us very optimistic for the second half of the year, where budgets tend to expand. This app should really benefit significantly. Another I want to talk about today is Proposaly, which is our newest app. This one is still in the beta testing phase, but it's set to go live in the coming months. Proposaly is set to revolutionize sales workflows.
It's all about taking basically a blue-collar industry, and I'll give you an example of roofing, and enabling them to create nice professional proposals, close those deals, and make payment all into one app, so going with the example of a roofer, let's say most of your staff at your smaller roofing company is likely going to be your workforce, your laborers, people doing the actual work required, so you don't really have the capacity or demand to employ another person to handle doing admin work, like creating a nice, beautiful presentation or proposal, so what you can do is we can onboard you to Proposaly, and through there, you can draft a proposal to send to your clients in less than two minutes. How you do that is, as a roofer, you might type in, "I'm a roofer. Please draft a proposal," and it'll give you a template.
From there, you can customize and add your specifications, or you can simply drop your website link in, and then from there, it drafts you a nice, beautiful proposal. From there, you can send it to your client, which they can review, and if they like it, they agree, and from there, an agreement is generated. Once the agreement is generated and signed, the client is then prompted to make payment for the services. So, instead of using PowerPoint, PDF, DocuSign, Stripe, you can do this all through Proposaly, which makes it much more personally enabled for the less inclined and also much more streamlined for your SMBs. As I mentioned to you, the Marketing Cloud, that's where all our apps are hosted. It's one integrated technology that allows our advertisers to create and manage their campaigns across all major platforms.
This is what the interface might look like from the client side. Moving over to the financials and how all these revenue streams nicely roll up into one. For those of you familiar with the digital advertising industry, you'll know it is somewhat seasonally tied. So, you'll see a slower Q1, Q2, and things really ramp up into the second half of the year. You can see that trend continues into this year, and coming into our best quarters, being Q3 and Q4, we're set for a strong finish for the year. When we went public in 2019, you can see revenues were close to CAD 15 million. Fast forward to today, we've more than doubled that. You can also see the revenues are nicely diversified across the board, and as we continue to penetrate some of these regional areas, that continues to diversify.
As I kind of touched upon on the last slide, what's exciting about Adcore right now is really going into the second half of the year, as an investor, you have to look forward to the best quarters in our performance. So, Q3 and Q4 are going to be where all the profit and money is made for the company. Looking at Q1 and Q2, those are typically slower, and we incur small loss. However, this year, we were able to be profitable, so we've set ourselves up for a very strong finish in the second half of the year here. What I find really makes Adcore stand out from its peers in the microcap space is really the financials. Adcore has a CAD 9 million cash balance and zero debt, which means it's well-financed to continue operating and hammer our initiatives without the need of dilution.
Very well-financed to operate in any macro environment out there. Looking at the cap table, the shares are quite tightly held. As I mentioned to you, we went public in 2019 and did a small raise, and we did a secondary in 2021. The shares today are still largely held by management and insiders, 70% in fact, with a free float closer to 30%. In the previous slide, we looked at a nice cash balance of CAD 9 million. The market cap today is close to CAD 16. That means today we trade at an enterprise value of close to CAD 5-CAD 6 million Canadian, which we think is a great opportunity for the right investor. It provides you a very large cushion and risk-adjusted opportunity to get into a growing company at a discount.
So, what I think is important to take away from this presentation. Adcore has a suite of proprietary technology. We're continuing to build on strength, and the company is well-financed to continue doing this and growing as quickly as possible. There's plenty of headroom in a trillion-dollar industry. Secondarily, we're going through a point in the advertising industry of tectonic changes. This is exactly where Adcore thrives and companies of its ilk. We believe we're perfectly positioned to really capitalize on this opportunity, and at this time, I'd really like to pass it over to the floor to see if there are any questions and do a Q&A. Yes, sir?
Can you talk about competition and what triggers that?
Of course, yeah. So, with our suite of apps being as robust as they are, we talked about how they can do everything from start to finish.
There's probably a comp for each app, I'd say. So, for example, our Feeditor app, which is all about enriching your product feeds and exporting those out to ad networks. That one, I know there's a comp locally or in, I believe, the North American region called Feedonomics. But what really makes Adcore stand out from its peers is really the robustness, being that we do all those activities into one hub, whereas a lot of our competitors would specialize in one or two of these applications. So, there is definitely a performance attribution and a lot of the different tools, I'd say. There's competition, but I think what makes us stand out is having it all unified into one hub and not needing to have multiple subscriptions.
Take that one step further. If I were a roofing company, what's the value proposition? I think you mentioned proposal. What's the full value proposition of a roofing company in time?
Yeah. So, for a company in the service space like a roofer, a lot of those applications might not be as crucial. They're, I'd say, more geared towards e-commerce clients, a lot of them. So, I'd say with the suite of apps, again, you can buy one or the whole suite. As a roofing company, it would probably make sense to just buy the Proposaly one. But with that one, again, where the really value add is we're saving the roofing company from having to hire another individual just to do this activity, and it's much more efficient. Someone drafting a proposal might take hours, maybe half an hour if you're very quick, whereas in Proposaly, you can do it in a couple of minutes.
Just on that, why would that be different from putting ChatGPT and how it's now working?
Yeah, I haven't seen a solution like that one exactly, but ChatGPT, it's very, let's say, creative-based initially and content-based. It won't have the capabilities to do the signing feature. I'm sure you can generate one and then export it and send it out and then make payment. ChatGPT doesn't have those capabilities currently. So, there's obviously pieces of that activity that can be addressed with ChatGPT, but again, unifying it into one hub is not in ChatGPT's capabilities at this point.
Just a question on the revenue mix. I believe that you guys have seen traction in APAC, but North America has gone backwards. Why are you seeing such dynamic changes in some of these geos?
Yeah. I mean, microeconomic supports play a big factor. What's really working in one region might not be true in others, but for example, North America, we're a bit younger, so we're kind of really reinvesting into the team and the office, I'd say, in the last couple of years, whereas APAC, we've had some time to establish that brand. Where we see the most opportunity is, of course, in North America, where the biggest budgets are, but I'd say we're a bit earlier in our growth infancy in really establishing the brand. And, of course, with clients, there's natural churn. So, I think in the coming years, we expect North America, obviously, to be our strongest, but it just takes some time to really build out the brand in that jurisdiction. Yes.
What do you do with your cash?
Right now, naturally, as a company that was bootstrapped, we like having a large cushion of safety. So, right now, again, we like to operate in a position where we're not beholden to the market. So, we like having a large cash balance. But in the short term, as I mentioned, with the R&D getting Proposaly to market, there's going to be money invested in that. In addition, again, building out the team like in North America, the team's growing, so we're increasing our human capital as well. Very good, guys. If there's no other questions, again, I'm Nick Campbell. Thank you very much for attending. Oh, sorry.
I saw that a lot of sales from different cities. Right. And small details about what kind of clients. And the people that apply to each industry, what's the potential to...
Yeah. Yeah. So, Asia-Pacific is really, again, dominated by, first of all, the Australian side on the service-based revenue stream, in addition to the technology side, Media Blast.
So, I'll start with Media Blast, which is really an agency tool. So, we're an agency in how we operate with our clients, but there's other agencies in the APAC region that need a service like Media Blast to keep their ads online and get established on the major ad networks. So, the clients there are really in Southeast Asia for Media Blast. In Australia, a lot of the clients are going to be your e-commerce kind of SMBs, not enterprise level, but pretty large clients that are looking to improve their performance marketing online and sell more products online. All right. Well, very good, guys. Thank you all for attending. And again, I'm Nick. Hope you guys have a nice rest of the conference.