Earnings call transcript: Adcore Q2 2025 reports revenue dip, margin gains

Adcore Inc. (ADCO) reported its Q2 2025 financial results, showcasing a mixed performance with a slight decline in revenue but improved profitability metrics. The company’s revenue for the quarter was $6.5 million, a 1% decrease from the previous year. Despite this, Adcore managed to reduce its net loss significantly and posted a positive adjusted EBITDA. The stock remained stable at $0.19, with no change in the price following the earnings release. According to InvestingPro analysis, the company is currently trading below its Fair Value, with strong free cash flow yield metrics. InvestingPro subscribers can access 8 additional key insights about ADCO’s financial health and market position.

Key Takeaways

• Revenue decreased by 1% year-over-year to $6.5 million.
• Gross margin improved to 47% from 44% the previous year.
• Net loss was halved to $425,000 from $700,000.
• Positive adjusted EBITDA of $156,000 compared to a loss last year.

Company Performance

Adcore’s Q2 results reflect the company’s strategic focus on enhancing profitability despite a slight revenue decline. The firm has successfully improved its gross margin and reduced its net loss, signaling operational efficiency. The company’s performance is buoyed by growth in the Asia-Pacific region, offsetting declines in North America and EMEA.

Financial Highlights

• Revenue: $6.5 million, down 1% year-over-year.
• Gross Profit: $3.1 million, a 6% increase year-over-year.
• Gross Margin: 47%, up from 44% last year.
• Net Loss: $425,000, reduced by almost 50% from $700,000.
• Adjusted EBITDA: $156,000, compared to a loss of $173,000 last year.
• Cash Position: $9 million, a 23% increase year-over-year.

Outlook & Guidance

Adcore aims to reach $40 million in annual revenue and achieve six consecutive quarters of positive adjusted EBITDA. The company remains focused on AI-driven innovation and expects strong performance in the second half of the year. Future projections for FY2025 and FY2026 indicate steady revenue growth, with forecasts of $24.18 million and $24.66 million, respectively.

Executive Commentary

CEO Omri emphasized the role of AI in Adcore’s strategy, stating, "AI is not a slogan. It’s a way of life." He also highlighted the company’s commitment to innovation, remarking, "We are working very hard every day to make Edco the best and most innovative company out there."

Risks and Challenges

• Market Saturation: Potential challenges in expanding market share in mature regions.
• Economic Conditions: Global economic uncertainty could impact client budgets.
• Competitive Landscape: Intense competition in the AI technology sector.
• Regional Performance: Declines in North America and EMEA may persist.

Q&A

During the earnings call, analysts inquired about Adcore’s growth strategy in the Asia-Pacific region, which was confirmed to be driven by new client acquisition. The company also discussed its remote hiring strategy in cost-effective regions and the progress of the Proposny app’s beta testing.

Full transcript - Adcore Inc (ADCO) Q2 2025:

Nick Campbell, Head of Investor Relations, Adcor: Alright. Let’s get started.

Once again, good morning, and thank you for joining us. Earlier today, you might have caught our q two results in the press release issued this morning. We’ll be walking you through those numbers today, but that’s not all. We also have some exciting updates behind the scenes to share that we think you’re really gonna enjoy. Join on the call today, you have myself, Nick Campbell.

I’m head of IR here at Adcor. You’ll hear from Omri, Adcor’s CEO and founder, and Amit Conforti, Adcor’s CFO. The agenda for today before we begin, we’ll go over some forward looking statements, followed by the CEO opening remarks, then the CFO financial highlights, and finally, q and a. If you do have a question during this call, I encourage you to use the submit a question feature in Zoom, and that will be addressed at the end. Before we begin, just please be aware during this call, we might make some forward looking statements.

These statements are uncertain in nature, so please take that into account. I’ll give everyone about thirty seconds to review this before we move on.

Omri, CEO and Founder, Adcor: Nick, maybe you wanna share your screen?

Nick Campbell, Head of Investor Relations, Adcor: That would be a good idea. Thank you, I thought it was sharing.

Omri, CEO and Founder, Adcor: That’s why I’m the CEO. You know?

Nick Campbell, Head of Investor Relations, Adcor: So now I’ll give you guys thirty seconds to review the forward looking statements. Thanks,

Omri, CEO and Founder, Adcor: Yeah. You’re welcome.

Nick Campbell, Head of Investor Relations, Adcor: Alright. Very good. And with that, I’m going to pass the mic to Omri, Atkore’s CEO and founder. Omri, the floor is yours.

Omri, CEO and Founder, Adcor: Great. Thank you very much, Nick, for the for introducing this earning call, and let me share my screen. Just one second. Great. So, again, good morning, everyone.

With pleasure, we’re gonna present today the company results for q two twenty twenty five, discuss, you know, obviously, the result. I’m gonna give the management highlights for today for the quarterly results, and Amit gonna discuss the results in more details. And but equally important, that’s not something we do in any every quarter. We would like to share with you some of the amazing level of innovation that we’ve been undergoing during this last quarter. And a lot of it in that if not, almost all of it is related to AI.

So I’m sure that you’re gonna love what what we’re about to present to you today, whether it’s obviously the quarterly results, but also the innovations that we’ve been able to achieve this quarter. So Edco delivered a very strong Q2 twenty twenty five, higher gross profit, improved margins, positive adjusted EBITDA, 35% surge in APAC revenue. So in a sense, all the important metrics during this quarter move in the right direction, especially if we compare it compare them to previous quarter last year. A lot of the growth that we’ve been able to achieve and the improvement in gross margin, gross profit as well is due to the to the adoption that we see with our media blast apps that come with high emerging SaaS revenue and and and continued client growth, you know, throughout the throughout the region, mainly in the APAC and EMEA region as well. So let’s dive a bit to the to the numbers.

You know, top line revenue were $6,500,000 this quarter compared to 6,600,000.0 in the previous year quarter, so mainly more or less remained flat. Gross profit, however, improved 6% quarter year on year from 2.9 in q two twenty twenty four to 3,100,000.0 in q two twenty twenty five. And if you look at the quality gross KPI, then we can see definitely gross margin improved to 47% in the in Q2 twenty twenty five compared to 44% in Q2 twenty twenty four. So big improvement over there. And also, if we look at cash position, it grew by 23% year on year to $9,000,000 compared to $7,300,000 in the previous quarter last year.

So again, cash position, stronger, better gross margin, better gross profit, a lot of better adjusted EBITDA, of course. So a lot of, let’s say, improvement during the last quarter. If I need to sum everything up, you know, these things that we love to or like to see during the last quarter, then gross margin improved to 47% compared to 44% in the previous year. Cash and cash equivalent grew by 23% to 9,000,000 in q two twenty twenty five, reduced net loss by only up, but we cut it the net loss by almost half. So it was 425,000 Canadian dollar in q two twenty twenty five compared to almost $700,000 in q two twenty twenty four.

So a big reduction in in the company net loss. Positive adjusted EBITDA. Actually, adjusted EBITDA improved by almost 300 k. So from a loss of 173,000 Canadian dollar in q two twenty twenty four, we actually achieved a positive adjusted EBITDA of 156,000 Canadian dollar in q two twenty twenty five. Gross profit grew by 6% year on year.

APAC revenue grew by 35%. So, again, a lot of positive growth and momentum, especially, I would say, what what we call, let’s say, quality KPIs. You know? KPI like gross profit, gross margin, adjusted EBITDA, cash position. All of them move in the right direction in q two twenty twenty five.

And if you remember in the beginning of the year, we we discussed, you know, some of the company targets or what we aim to achieve in 2025, and I wanna run a quick check to see where we stand with this target. So we discussed that ideally would like to see a scaling revenue to 40,000,000 this year. So I know h one was more or less flat if we look year on year, but bear in mind that q three and q four are the strongest quarter for us in here, and we still have enough time to recover. So it’s not an ideal start of the year in terms of top line revenue, but we do see we do see momentum building up already. Let’s say, it’s a bit early in the quarter, but in q in q three.

And we strongly believe that we still having, like, positive q three and positive q four. We can still be at least near to the targets that we discussed. And striking profitability, we said that we wanna achieve a six straight quarter of positive adjusted EBITDA. So yet yet again, over a big check, we we did another positive quarter, which is great. AI driven innovation.

So it’s not a slogan for us. It’s something we do now on a daily basis. And, actually, most of the innovation I’m about to reveal on today, any call is AI related. So there’s a lot going on to ask me, And I’m sure that you’re gonna love what we’re about to to to show you with regards to AI. And last but not least, growing SaaS recurrent revenue.

Again, we see that media plus has continued to grow. We had some challenges this quarter with regards to module Microsoft advertising account linking. We have overcome these challenges. And even with these challenges, still, Plus average MRR grew by almost 10% quarter on quarter. So I think that we still see MetaBlast contribute a lot of, you know, new value to the company and improving the different metrics as well.

So now I would like to take a pause from discussing the quarterly result and quarterly numbers and talk about the future of Edcore. You know? And the future is Edcore is very much integrated into AI. So a lot of what we’re doing, a lot of what we’re building nowadays is built on the foundation of AI. And I would like to present two new features that we’re very proud that we recently released into Proposny.

And trust me, it wasn’t an easy task to select which feature we would like to disclose today because there’s so much innovation going on on Proposny on literally daily basis that we need to pick, you know, like, which which functionality, which feature we would like to disclose. But, eventually, we we pick tools that we think gonna contribute even more value to proposals and what the app already has to offer. The first one is the ability to easily generate proposal using a simple AI prompt. So instead of manually now going and start bidding the proposal, bidding the presentation of the proposal, and make sure that everything is ready, we can literally do it with AI in less than two minutes. So, basically, when you click create the proposal now with with Proposny, you have an option to create it with AI.

You’re gonna need to enter your company website so we can scan the website and get all the information. Also, get the design and look and feel of your website and copy to the presentation using AI, but equally important, creating all the content and everything that is related. And let’s see a short demonstration of this new functionality in a proposal.

Nick Campbell, Head of Investor Relations, Adcor: I need this proposal sent to the client in the next ten minutes. No problem. In your inbox, two minutes early.

Omri, CEO and Founder, Adcor: Great. So that that was just like a sneak preview, but trust me, it’s a game changer. Because, like, again, if now I’m a salesperson and all I need to do is to give a simple AI prompt to Proposal me, The system already gonna be able to generate the proposal for me, so my life become much easier. I can create like, we get proposal with no hassle, and, basically, the entire the entire sales process become much more efficient. And that’s, let’s say, basically, a big, big differentiator, you know, from from other application out there.

Another cool feature that we would like to disclose today is the ability to send one off payment request via Proposny. So if you remember, Proposny was built. Proposny vision and mission was to streamline the entire sales workflow, make it more efficient, increase sales and revenue to x, and basically take a very complex, I would say, process, what we call traditional sales flow, and make it as simple and easy and accessible as possible. So in the traditional sales walk walk a flow, I would say it start probably with the presentation, and then I would send the client the price quote. Maybe I would need to do some adjustment to this price quote.

If he’s happy with the quote, I need to send him an agreement to sign, and then I need to make payment, and then I need to update him on the project. Like, everything I just discussed now in a typical company is requires few apps, you know, few platform. It’s disconnected. It’s not friendly, and proposal resolve all of that. We send the one link to the client.

You have the client portal, and everything is there on his portal. The presentation, the price quote, the add ons, the ability to sign the agreement, to make the payment, to get the project update, everything in one friendly place and looking like a million dollar. And then so this was, let’s say, supposedly, you know, like a a mission. And then we say, okay. But what if the client just wanna send an agreement?

You know, I don’t wanna send the entire proposal. We We create a new document type under proposal, quality and agreement, and it’s only gonna contain, let’s say, the presentation, the agreement, the ability to interact, you know, within the client portal. So that’s an agreement document type. And then we say, but what if it’s not even agreement?

I just wanna send presentation because also presentation look like a million dollar in proposing. We say, you know what? Let’s create a new doc type. We call it presentation. And now we say, but what if I just wanna get the one off payment for my clients?

So I don’t need a fancy pro proposal. I don’t need it to sign a fancy agreement or anything like that. Not even a presentation. Just, like, send a payment request. Maybe if the ability to add some add ons, you know, some maybe, like, ask for a tip, for example, as an option, and that’s it.

Very simple. So go to proposal.me, set the amount, set, you know, short description what the payment is about, put the recipient email, click send, and that’s it. So imagine I’m, I don’t know, like a a flower boutique shop in California. I get an order for a special bouquet over the phone. But now instead of me starting to take the client credit card details or anything like that, which is not very secure or user friendly, can easily send him a custom payment request, you know, with add ons, maybe with steep requests and stuff like that, straight to his phone.

And let’s see the next videos that basically show exactly this story.

Nick Campbell, Head of Investor Relations, Adcor: Sure. I’ll send you a special birthday bouquet for your dad. I love you, dad. I love you too, sweetie.

Omri, CEO and Founder, Adcor: So very nice, and it’s come with a big promising. So, basically, nowadays, even, let’s say, small businesses can send, let’s say, Amazon grade checkout, you know, like custom checkout to their clients without any issues. And that’s a big differentiation and a big game changer the way business are done nowadays. And, basically, we bring ecommerce for traditional businesses, but do it on a customized way. So it’s not like we’re not building a website for them.

We’re building a special link for them that is a special, let’s say, payment request, special proposal or whatever that is custom made for this specific client but look like a million dollar, and that’s a big, big value addition to our system. So I wanna share the presentation again. Sorry about that. Now we discussed a bit new functionality that we added to Proposny and trust it. Trust me, there’s much more that’s going on in Proposny on literally on a daily basis.

And now I wanna discuss what AI our AI is is transforming our creative studio. So, basically, before AI creating, let’s say, commercial grade video for us was almost mission impossible. And if it was possible, we need to spend so much money and, you know, do the video production. A lot of people involved very costly, and it’s, like, maybe 50 k, 100 k, you know, just to create one video like that. It was very difficult to do.

But now with AI, our creative studio can create TV commercial grade videos, but basically do it in less than one day. And it’s look like a million dollar. Trust me. We’re gonna show you, like, two videos. One created for our client, GRB, in Australia, which is a kitchen kitchen warehouse, a ecom company.

And another one was created to the Jewish agencies, part of a tenders that we are currently taking in a taking in a Israel. So, basically, two videos and but both of them generated by AI. By the way, the two videos that I showed to Proposny also created with AI, and that took us less than one day to create them. So, basically, again, that’s mind blowing what we can do today with AI, and this is just yet another cool example.

Nick Campbell, Head of Investor Relations, Adcor: There’s a reason I come back here every day, not just to cook, but to create.

Omri, CEO and Founder, Adcor: Cool. So this is one video. Again, you know, like, probably, like I said, like, commercial TV commercial grade type of video. It can be on any national TV. And and, again, was created with AI in less than eight hours.

So it’s a it’s a mind blowing and game changing moment for us. And and the same, you know, same video, different concept, you know, generated with AI for the Jewish agency.

Nick Campbell, Head of Investor Relations, Adcor: Back home, I had to keep it quiet. Now I fly it loud and proud. It’s wild walking down the street, and everyone’s just like me. Back in Sydney, I’d be looking over my shoulder. Here, I’m sweet as.

Omri, CEO and Founder, Adcor: The little ones can just run free here like we used to. Cool. So I think, like, I’m sure that you’ll love what we are what we showed you today, and that’s also a demonstration that in Netco, we don’t just talk AI. We do AI. We integrate AI.

We implement AI, and that’s already transforming the way that we are doing business, whether we are more efficient. You can already see it in the numbers, let’s say. Whether it’s, you know, like, we are getting a new clients because of our AI abilities, whether it’s the level of innovation we can introduce to Proposal, for example. So for us, AI is not just, let’s say, a slogan or a trend. It’s something that is already happening and transforming the way we’re doing business, and that was important for us to share it with the with the audience today.

So last but not least, I’d like to conclude the management management remarks with discussing the share stock price. Currently, it sits on 26¢. We see looking at comparable companies, we see a massive upside of almost 800 percent. If we look at EV to gross profit or even EV to EBITDA, a massive upside of more than 5050%. And, again, management still believe there’s a disconnection where the stock price is currently sitting, where the company through valuation should be.

And and we are working very hard every day, every week, every month, every quarter to make Edco the best and most innovative company out there. And I think, stock price will catch up, and basically, Ethco will become the success story it deserve to be. So with that, I wanna conclude my today’s remarks and add add it back to Amit, I guess.

Amit Conforti, CFO, Adcor: You, and good morning, everyone. So before beginning the financial overview, I would like to remind you that the following discussion will include GAAP financial measures as well as non GAAP results. All amounts will be presented in Canadian dollars. In the 2025, we saw increases in both gross profitability and gross margins. Our APAC revenue grew by 35%, reflecting strong regional performance, and our cash position rose by 23% compared to 06/30/2024.

Let’s review in more detail. For the three months ended 06/30/2025, we delivered revenue of $6,500,000 compared to $6,600,000 in the same period of 2024, a decrease of $100,000 or 1%. Gross profit for the three months ended 06/30/2025, was $3,100,000 compared to $2,900,000 in the prior year, an increase of $200,000 or 6%. Gross margins for the three months ended 06/30/2025, were 47 percent compared to 44% in the same period last year. As for operational expenses, R and D expenses for the quarter were $500,000 compared to $600,000 in the prior year.

SG and A expenses for the quarter were 3,100,000 compared to $3,100,000 in the prior year. Operating loss for the three months ended 06/30/2025, was 500,000.0 compared to $800,000 in the same period last year, a decrease of 300,000 or 40%, mainly due to improvement in gross profits. Net loss for the three months ended 06/30/2025, was $400,000 compared to $700,000 in the same period last year, a decrease of $300,000 or 38%. Revenues and gross profit. Looking at the quarterly results, revenue saw a slight decrease, while both gross profit and gross margins improved meaningfully.

For the first half of the year, we achieved growth in both revenues and gross profit, which is positioning us well to maintain the positive trend for the year that you see on the right. As for geographical revenue breakdown, revenue in APAC saw a significant 35% year over year increase, which is driven primarily by the acquiring of new clients. Revenue in EMEA decreased by 6% and in North America by 43%, mainly due to stopped or reduced activities. In terms of financial position, we had cash and cash equivalent of $9,000,000 as of 06/30/2025, compared to $10,800,000 at 12/31/2024. Cash and cash equivalents as of 06/30/2024, were $7,300,000 showing an increase of 23% year over year.

Total working capital amounted to $6,300,000 compared to $7,300,000 at 12/31/2024, a decrease of $1,000,000 or 14%. As for the liability side of the financial position, we can see that the company is still debt free. Adjusted EBITDA. The quarterly non GAAP results reflects adjustment for the following items: depreciation and amortization, share based payment and other nonoperational items. For the three months ended 06/30/2025, adjusted EBITDA was 156,000 compared to a negative $173,000 for the same period in 2024.

This increase in profitability is primarily driven by a reduction in operational losses. With that, I will turn the call back to Nick.

Nick Campbell, Head of Investor Relations, Adcor: Thank you very much, Amit. At this time, we will move over to the q and a session where we have a number of submitted questions. And we’ll begin with APAC, which, again, another strong quarter with, around 35% growth. You know, can we expect this to continue, and what’s really working for you in that region?

Omri, CEO and Founder, Adcor: It’s a good question, and we’re definitely happy from the result and the performance that we see in this specific region. I would say, first of what is working for us in this region, I would say it’s a mix of new client acquisition. So we’ve been able to acquire some very nice client in this specific region that obviously contribute to the to the results that we see coming from this quarter as well as, I would say, performance or or increase in SaaS revenue from our media blast app that is directly related, you know, like, or contribute within this specific region. So I think, like, it’s a combination between SaaS revenue that are growing for us and new client acquisition. And, yeah, like, we we expect the positive trend in this specific region to continue throughout 2025.

Nick Campbell, Head of Investor Relations, Adcor: Very good. In q two, gross margins were at 47%. That’s relatively high when looking at previous quarters. Can you elaborate on how you’re able to achieve this and if that’s sustainable?

Omri, CEO and Founder, Adcor: Indeed. Maybe, Amit, you would like to cover this one?

Amit Conforti, CFO, Adcor: Yeah. Sure. So, basically, part of the increase in our gross margin this quarter is due to an increase in our SaaS revenues and also improved efficiency that we presented partially by implementing AI operations. This is the reason.

Nick Campbell, Head of Investor Relations, Adcor: Thank you, Amit. Next question is, is Adcor able to leverage some of the new AI tools coming out? Particularly, you know, there’s Google AI Max, and can we use this to monetize it and gain market share?

Omri, CEO and Founder, Adcor: So it’s a good question. I would I would maybe start by quoting what Google saying in his latest earning call. There was a lot of, let’s say, concern regarding AI impacting Google business model, for example. And Google actually say that it look at it as an as a as a moment of big big expansion. And and we believe we truly believe that’s the case.

You know? This represent a massive opportunity for us. And Atco, being an innovative technology company, basically, is poised, like, to to lead this trend as well and start a trend. That’s a revolution, and we we would like and wanna be part of this AI revolution. And, you know, Google recently held a very big event in APAC, and Edco was presented to be the poster boy, I would say, for implementing Google new AI Max, which is AI based campaign, you know, for sales that Google literally introduced.

We did a big case study, you know, like, presenting the result of this tool in front of our clients, CandleFox. So that show you, you know, how Atco basically is in the front role of this much massive transformation. And I think that being able to be there, it’s also help us to attract new clients, new businesses. People look at that core as an inventor of a company, any company that you would like to be part of, you know, partner with in order to benefit from all this AI boom.

Nick Campbell, Head of Investor Relations, Adcor: Thank you, Omri. And kinda similarly, you know, AI is having a huge impact on many industries. Does that core have a plan on how we are going to use AI to increase our revenue and reduce costs?

Omri, CEO and Founder, Adcor: So I think, like, for Edco, and I believe we already proved it during this, earning call and during the presentation, AI is not a slogan. It’s a way of life. And it’s already deeply integrated with with everything we do more or less, you know, whether it’s our technology, whether it’s our the way we operate and run business, and you can already see it in the results. You know, like I meet rightly mentioned before, some of the improvements that we see in efficiency is because of AI. You know, we can get more work done faster, easier with less people sometimes, and that’s a game changer.

And when we talk about technology and talk about innovation, the sky is the limit. You saw how easily it’s now, let’s say, to create a proposal using AI, for example. Never been able before. Getting a TV, you know, like, great commercial in less than eight hours, so day work time. You know?

Like so I don’t know what’s, you know, all the Hollywood studio gonna do now, but but they need to be careful of the AI studio nowadays. So I think, like, again, AI is here already. It’s already the way which we’re doing business for for better, and it’s gonna have even more positive effect as we move along, you know, next quarter, next year. It’s definitely a big big game changer for better for us.

Nick Campbell, Head of Investor Relations, Adcor: Yeah. Agreed, Omari. It’s quite incredible what, you could do with AI in those videos in less than eight hours. It’s quite amazing. But, moving on to the next question here.

LinkedIn has your employee count at 95 people. That’s about a 25% growth increase over the previous year. Is that accurate figure?

Omri, CEO and Founder, Adcor: Yes and no. I believe they’re more accurate number, and that’s including, you know, both, you know, like, direct employees and nondirect employees is around maybe more accurate is 75, I think, Amit. Correct me if I’m wrong.

Amit Conforti, CFO, Adcor: Yeah. That’s correct.

Omri, CEO and Founder, Adcor: Okay. So so I believe the LinkedIn is probably, you know, some of it related to legacy, maybe employees and and people that will maybe it’s having our time, you know, to disconnect from Medco. But I I’m not sure 95, it’s a bit exaggerated. What is true is that is is growing in the number of employees. You know, if we need to look at the same number last year, probably, the headcount were around 65, 63%.

Having said that, we took a very different strategy in 2025 than we took in the previous year, and most of the growth that we see nowadays coming from specific region of countries that come with relatively low salaries. You know? We’re growing a lot our team in Vietnam. We started to grow our team in a in a a South America, for example, in Argentina. But these people come in, I would say, one third, one quarter of the cost that they basically it’s cost us to get somebody on record deploying, let’s say, in in Australia or in Canada or in Israel.

So it’s a big game changer. So we are growing the team, but not not growing actually the salaries expenses. Amit, like like, I like, correct me if I’m wrong, but I don’t believe there’s, like, a big growth in salary expenses like q two this year compared to previous year.

Amit Conforti, CFO, Adcor: Yeah. That’s correct.

Omri, CEO and Founder, Adcor: Okay. So I think and that’s just the, let’s say, the early sign of this transformation that we are undergoing. And trust me, maybe these people come relatively in less cost, but by their no mean, you know, lesser of employees. You know? This is, like, great employees that we can we can get, like, including developers in these specific countries.

And, basically, that’s gonna be transforming the way we can do business and our salary cost moving forward. So the idea is, yeah, to grow the headcount you needed, but growing in countries, they’re not gonna cost us as much, let’s say, as people in Australia, people in US, people in Israel.

Nick Campbell, Head of Investor Relations, Adcor: Very good. Thank you, Omri. And I guess on that note, does Adcor have any plans to open up a new office perhaps in South America?

Omri, CEO and Founder, Adcor: And so I think, like, the short answer, not now, not as I know of at least. Because, to be honest, it’s not needed. You know? Part of our ability to reduce costs is, you know, like, we can we can employ someone in Argentina as a contractor working fully remotely without, you know, like, having an office cost associated to it, and we can still get the work done. So I think, like, currently, we fund with our current offices, you know, branches.

And if you’re gonna employ somebody, so we don’t need that we we need to run and open a new branch in Argentina or Vietnam or anything like that.

Nick Campbell, Head of Investor Relations, Adcor: Thank you, Omri. And in the press release, you discussed some new features on Proposal. I’m interested. Do you have an expect to go live data for the app, and how is the beta testing going?

Omri, CEO and Founder, Adcor: Okay. So, actually, beta testing is live. Right? So so Proposal is working, and we do have, like, an active beta client. And I think, like, yeah, it’s it’s a it’s a transformational moment for the application.

You know? Like, going to to beta or close beta stage is is a very important and critical stage for in the in the app life cycle. You know, it’s help us to better understand, you know, the market fit. If we still have some gaps, you know, between the current functionality that the app can support and the actual needs of, let’s say, our real clients. And and and we we did find out that we have some gap.

We are narrowing them as we as we speak. And, basically, I think, like so there’s, like, a big change. And, also, the shift of focus the focus is shifting. You know? Shifting from pure r and d to, let’s say, more business side of the application, whether it’s client acquisition, whether it’s onboarding teams, whether it’s client success team.

So I think, like, we gradually now shifting focus from just, like, pure product related r and d focus to more business side of the application and the activity. And I think, like, that’s an important step, you know, moving forward. And and and the critical step, you know, that for pro propose it to be the success story. We all working very hard for it to be.

Nick Campbell, Head of Investor Relations, Adcor: Very good. Thank you, Omri. And I believe that concludes all the questions we had for today. So at this time, I will move over to, thank you, Amit and Omri, for your notes today, and thank you for joining the call. I wanna give, Omri the last, the last moment here to end our end off the call.

Omri, CEO and Founder, Adcor: Okay. With pleasure. So, again, thanks for everybody that joined today call. I think it was an interesting call. It wasn’t the usual, typical call.

From one end, you know, we had, like, a strong quarter, a positive quarter with, you know, like, all the quality indicators move in the right direction. But also bear in mind, q two, q one for us are not the most important quarter of the year. So we still have, let’s say, the peak of the year is in front of us, whether it’s q three, q four. It was an interesting earning call because we’ve been able to showcase, you know, our AI’s transformation transforming Atco and what we can achieve, what type of innovation level we can achieve now with AI. And that this like, this is like an eye opening moment for us as a company for shareholders to understand.

This is the future, and the future is already here, and that could be part of this future. And I think this is very promising. And we look at, let’s say, on the next what is the next, let’s say, year? Very optimistic.

Nick Campbell, Head of Investor Relations, Adcor: You, Omri. Very exciting indeed. And as you mentioned, the future’s now, so quite quite exciting. That’s it for today. Thank you all for joining, and have a great rest of your day.

Omri, CEO and Founder, Adcor: Thank you.

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