Adcore Inc. (ADCO) Earnings Call Transcript & Summary

[Audio Gap] is to give Bristol's audience a better understanding of the business through a presentation and then questions with management. The discussion is going to be led by CEO, Omri Brill, who is also joined by Martijn van den Bemd, Chief Partnership Officer. You should see the presentation in the webcast. If you would like to receive a copy of this deck and don't have one simply e-mail me [email protected]. I'll be happy to send you a copy. We're going to break for questions at the end of the formal presentation. When we do break, we encourage those questions. And as a reminder, we're only taking questions using this web portal. Remember, you could submit a question using the question text box within the portal [indiscernible]. I'll ask the questions on the air for everyone to hear and then Omri or Martijn will answer. I'm not going to reference any names, but simply read the questions asked. As we have a fairly large audience today, if I can't get to your question online in time and has not yet been addressed during the call in Canby, I'll come back to you by e-mail. I'm not going to read the forward-looking statements, but I do state that they apply, and I reference them on Page 2 of this PowerPoint. With that said, thank you again for joining us. Remember, this is fairly informal, and we do encourage questions to help you better understand the business and its growth path. And now I'll turn the call over to Omri to start his part of the discussion and presentation.

Great. Thank you very much, Glen, and welcome, everyone. It's our pleasure to present the Adcore story today. And by the end of today presentation, you're going to like it at least as much as we like our company. So with no further ado, let me start by sharing my presentation. Just one second. Great. Okay. So as Glen mentioned, we do have a forward-looking statement. So everybody can obviously read the forward-looking statement within the presentation. But in the sake of progress, we're going to keep it through now. And let's talk about Adcore. So Adcore is a leading AI-powered marketing technology company. We are listed on the Toronto Stock Exchange probably listed on the Toronto Stock Exchange, but the company is a global company by nature or by source. We are headquarters are in Tel Aviv, Israel. We have offices in Toronto, Canada, Winnipeg, Canada, offices in the States, offices in Melbourne, Australia and 2 offices in the Greater China region, 1 in Hong Kong and 1 in Shanghai. So quite a global team and the company's focus in marketing technology, whether it's technology and solution on top of the technology, that's basically what we do and we do it quite successfully. The company vision is effortless marketing in the sense we woke up very early every day and work very hard in order to make our client life as easy as possible in online marketing. So we are strive to develop the best apps, the best tool for them in order to help them achieve more for every advertising dollar they spend and basically make the marketing effortless. Some high level investment thesis about Adcore and why we believe it's such a great interesting investment opportunity. So it's a fast-growing company in the first 9 months of the year 2023. Revenue grew by almost 30% year-on-year. So it's quite an impressive top line growth. If you look in about midline growth, then yet again, strong numbers as well in the first 9 months of 2023. Gross margins were 41% compared to 43% in 2022. So still a good margin that we maintain. Profitability in the 9 months of 2023. Total adjusted EBITDA was $1 million. And if you look at the core activity, the total adjusted EBITDA was $2.6 million. And last but not least, the company has its own propriety technology, however suite of marketing apps that Martijn will cover later on this presentation. But basically, they have considered source and a lot of the success and the scale that we see in recent years come due to the technology that we have. If you look at the company potential market -- addressable market, it's massive. Even today, 2023, we are reaching almost $1 trillion. So to be accurate $900 billion. And equally important, the addressable market size for us is projected to grow by 30% by 2026, so it's going to be $1.16 trillion by 2026. So this means it's not only a massive market of online advertising, but this market is also growing or continue to grow. Actually, this slide is one of my favorite slides because it's covers the tectonic industry changes that we see in online advertising. And if you look at the left slide, basically, we can see that this is like the percentage of the market share at every ad network obtained. And the blue part of this graph is actually Google and Meta combined. And we can clearly see that starting 2016, 2017, Google and Meta basically are fading away losing dominance that is more and more other channels that come into the party in a sense. So obviously, new companies like TikTok, Snapchat, maybe it's Amazon advertising, maybe it's even [indiscernible] advertising. But basically, it wasn't being very much dominated by 2 massive giants like Google and Meta become much more diversified right now. On the right side, we can see the exact same story but on geolocation. So again, the U.S. part of, let's say, market share within the online advertising pie is also reducing. And we see the rise of emerging market and other geolocations as well. And basically, both of these parts telling the same story and the stories that the market condition are becoming much more diversified and much more complex. So if, let's say, 10 years ago, it was pretty easy. You can open an account on Google and on a Meta and maybe target the U.S. Now your life as online advertisers are far more difficult. And these challenges actually are good news to a company like Adcore. And we can clearly see this demonstration, let's say, 2007, maybe clients can open just a Google account even focus on the U.S. and still going to have a very good coverage of the time or advertising pie. Having said that, in 2023, it's much more complex. You need to be on multiple channels or multiple geolocations. And basically, it would ideally mean a company like Adcore to sit in the middle with the right technology and basically have access to all the different ad network and basically the ability to operate in all the different geo location as well. And when we talk about the company, let's say, marketing and sales strategy, the company has 2 main strategies. The first one is to spread globally. So if in 2006, the company was funded in Tel Aviv, Israel, and it took us 10 years to open the first branch upside of Israel, which were -- was Melbourne, Australia. Fast forward since we went public in 2019, we opened 4 -- in 4 years, we opened 4 new branches. So Canada in 2019 and then Hong Kong in 2020, Shanghai, China in 2021 and in 2022, we opened a U.S. branch as well. So we can expand much more globally, and this is also giving us an edge, again, remember the graph that we say that the war today become much more complex. And in order to get a good coverage, you need to be everywhere. And Adcore is literally to date, almost everywhere across the globe. And the same concept that we want to spread Geo-wise, we also want to spread in the solutions that we can provide. And we took the exact same approach but for solutions. So if historically Adcore was very good around content creation and optimization, we took a decision, basically, we don't want to stop there. And if you look at the media journeys that the client -- typical client is taking [indiscernible] start way before the content creation and optimization part, but it's also aimed after the content creation optimization. So maybe it start with the content creation and intermediary session planning and then feed creation optimization obviously content creation and then obviously reporting and data analysts and then financing budget management and everything around it as well. And basically, what Adcore decided to do is that we want to have a specific solution or a specific task around each of these, let's say, milestone with regard to the media buying journey. And this bring us to, let's say, to the Adcore suite of technologies that we have to date, which we call the Adcore Marketing Cloud. And maybe, Martijn, you want to share some insight and maybe give us a quick to maybe in 1 of 2 apps that the audience will have some type of understanding about what the Adcore technology can really bring to our clients.

Absolutely. Thank you, Omri. I'm going to share my screen so I can show some of our apps. First of all, like Omri mentioned, we built the Adcore Marketing Cloud, which is completely SaaS solution, meaning people can log in anywhere from any device in the world to use our technologies. And we have clients that use multiple apps depending on the needs and the stage of the maturity in digital journey. So there's many different apps, different functionalities. And for today, I'd like to showcase 2 of these apps. One of them is called Atlas Marketing, which we built on top of Shopify. Shopify as you know is a great success story from Canada, a huge number of retailers on the platform. And building a website is one thing, but it's very important that you also build a way to generate traffic. And that is where Atlas Marketing and where Adcore comes in. So we can facilitate technology to start advertising on Google, on Facebook or Microsoft advertising. And we do this through Atlas marketing, which can be installed from the App Store, kind of similar, as you would have on the Apple Store or the Google Play Store on your phone, where you install apps for your phone, similarly, can install apps for Shopify store owners. What I'm going to do is show this video that explains in 1 minute how easy it is to connect multiple platforms to generate traffic through the e-commerce stores. All right. So again, this is a great tool to automatically start advertising on Google, Facebook and Microsoft advertising, get the traffic in, get the revenue in for your e-commerce store and then start building more sophistication in your campaigns. And one of the other apps that we have and is utilized by many of our agency clients and direct advertisers, it's called Sundog. So Sundog also sits within the Adcore Marketing Cloud, so a family of different apps where people can easily switch between the apps. And what Sundog does is automatically analyzing account performance in as little as 30 seconds. And then how it does it pulls 52 different metrics from a Google Ads account or Microsoft advertising account, analyzes the data, benchmark to industry benchmarks, vertical insights and then gives you a score, in this case, a 26% score. And the beauty of it is it can identify waste in an account, it you can identify growth opportunities and give you back meaningful action items that you can leverage on to get a more profitable ad campaign. And this is a great way for us to, a, win new businesses and also to provide value to our agencies that we work with, and they, in turn, use this for their client base. And it's very much around insights and to finalize this demo, if you were to do an analysis like this, it probably takes you 4 hours to 8 hours as an individual to create insights, whereas this technology combined and powered by AI can do it in as little as 30 seconds. So that's the beauty of this technology and why our customers love it so much. There's way more apps too many to cover today. So I'm happy to do that in a separate session. But for now, I'd like to hand it over back to Omri to talk more about the financials.

Can you make me the last again or maybe Glen.

I think Glen can put on the camera again.

Thank you very much, much appreciated. So a great presentation of the regarding the debt, it's always good to see, I think, like the sum up doing what they're doing and just talking about it is like 2 different things. But let's go back to the presentation. And actually, I would like to start covering the company's financials. So on the right side of the right top side of the graph, you can see the yearly revenue, roughly we can see 2018 was $12 million, 2019, $15 million top line. 2020 was $23 million. 2021, we had a big spike because of Covid-related spend of -- almost $36 million. 2022 was $27 million. And basically, this year, we were already in 9 months did quite well, around $23 million already within the 9 months. And very month because of seasonality, Q4 is supposed to be the strongest quarter for us in the year. On the left side, we can see the yearly -- the quarterly story revenue, and we can see Q1 2023 was 6.8%. Q2 was almost the same, a bit higher and Q3 was already 8.2%. And this is a typical buildup of the year. So typically, the year would start slow for us in the online advertising business. Q1, Q2 is going to pick up a bit. Q3 even more because of summer-related spend and then Q4 going to be the strongest quarter of the year. And the right bottom part of the slide, we can see the revenue mix globally, and we can see EMEA almost 48%, APAC region, 32%; and the North America region represent 20% of the global revenue. This is as of Q3 2023. If you look at people diving into the quarterly numbers than Q3, 2023. Top line revenue were $8.2 million in revenue. That represents 10% year-on-year growth. Remember that the entire 9 months, we had almost 30% year-on-year growth. Gross profit was $3.3 million. Adjusted EBITDA was $0.2 million. And total working capital was almost the same like Q2 2022, it's $7.7 million. If you're looking at the balance sheet, Adcore maintained quite a healthy balance sheet, total assets as of September 2023 are almost $80 million. Cash to cash share equivalent are $7.6 million as of September '23, and the company is debt-free, which is obviously a good thing to have in the current inflation environment. If you look at the countable and we put a disabler publicly listed tech companies, some names that you might know is Aluminum or formally Acuity Ads and other big names like Pragmatic and other. And basically, you can clearly see that basically based on the current share price and the multiples, there is an opportunity going to the Adcore stock. This is at least what the management believes. And this is why we are buying back shares in the market as well. If you look at the [indiscernible] total outstanding shares are $61 million. Total float is $19 million, which we represent around 31% of the shares. And like I say, again, we are buying shares for cancellation for the second year in the row because we believe that the current market cap is not a fair valuation of where the company should be. So we discussed about the company, about the addressable market size, which was -- which is massive. We talk about some Ad revenues investment. We also discussed the technology of the company have to offer and our criticalities to everything that we've been able to achieve [indiscernible] but then showcased some of the asset at currently and basically adjust to some everything that we talk about that basically, a, we see tectonic changes within our market. Our market is becoming much more complex and complexity is a very good thing for a company like Adcore. It sits in the middle between the advertiser and the different ad platform and the different geo markets and basically, the more complex our market is going to be, there's more need for solutions like Adcore has to offer. The company is fast growing in our 2 plant bottom line and midline as well. In the first 3 -- 9-month story of 2023, almost 30% year-on-year growth in revenue and 41% gross margin. We have priority technology -- proprietary technology to date 8 different apps within the Adcore marketing cloud and growing. And this plenty of still continue to grow. The company is still relatively small if you compare it to the markets that we are addressing. I think just like a few words on the leadership team, myself is the founder CEO. I've been in the company from the day we incorporated together with me as the COO is in for. Amit Konforty is the CFO for the company. And we have a team of global leaders, Vadim Malkin is the company's CTO in Winnipeg, Canada. [indiscernible] is the GM of Australia. Martijn van den Bemd is the company CPO, Chief Partnership Officer and GM flows America. In Ilana is the GM of the Greater China region. And last but not least, is [indiscernible] the legal custom of the company. I am contact, whether it's Martijn blends that everybody, I'm sure now the here and if you're in Europe, we have Dr. Ivor as well as MIR contact in Europe. That's it. I guess, we are ready for questions right now.

Perfect. Thanks, Omri. And again, to our audience, if you have a question, please use the question-and-answer feature within the webinar portal to ask a question. We have a number of questions in the queue already. So I'll just get going as other questions populate. So a, how do you compare to larger competitors in this space? And what are some of the reasons that a business might pick you over your competitors?

Yes. I think there's few things that make Adcore unique in this landscape, I would say, just to list a few of them or the most common ones. A, Adcore is a public traded company. There's not a lot of public traded tech companies, and Adcore is quite unique in this asset. So to give us more credibility, better, let's say, organizational structure and basically, you can trust more company like Adcore. So this is number 1. Number 2, by its nature, Adcore is a very global company. We have offices in 6 different countries and cities around the world. And if somebody is looking, which is probably what the large advertisers are doing today to target international markets there, team up with a company like Adcore make a lot of sense because our perfect global presence. And last but not least, I would say technology, the fact that we have our own proprietary technology gives us an edge on nontechnology competitors.

Next question. In which of your regions do you expect most of your growth to come from over the next couple of years? And then are you planning any further regional expansion to markets that you're not currently active in?

That's a fair question. I would say the following: A, we are lacking 2023 to see a good growth coming from all 3 regions from the EMEA region, APAC and North America as well. I would say that North America, in particular, is a focus market for us, and we see it as a more strategic market. So the fact that this market will continue to grow and grow even more if you need to compare it to other markets for us, it's going to be a very good signal. But again, it doesn't -- shouldn't come on the expense of the growth we can generate from APAC and EMEA. But I will say, as the region, we believe North America is a bit more strategic for us. And what was the second part of the question, sorry?

If you see yourself expanding into regions where you're not currently active.

Yes. I think like our global inspection days, I wouldn't say are behind us, but I would say they are mainly behind us. If any, we might have another output there in Europe. But I think like for now, we are pretty happy with the current global presence that we have.

Next question is, you currently have a share buyback program. Can you comment on what your strategy is around the number of shares you're planning on buying back? And what kind of time frame you're thinking about?

Yes. So the current plan, correct me if I'm wrong, Martijn, is good until May 2024. And basically, we have some limitation by the TSX on how many shares we can buy every day, but the strategy is very simple for us. We buy as many as we can.

Next question. There are concerns of your business operating in a very crowded space with many competitors. Do you see this as in a positive way in terms of winning contracts or in a highly fragmented market? And maybe some comments on that topic.

Yes. Like I would like -- I would love to see an industry that is not -- it's not crowded, that it's not a lot of competitors. So I think like Adcore is not the competitors more than, I don't know, oil industry or any other industry to this theory cars. This competition everywhere. But if you are good, if you've been around, if you know what you're doing, if you can give good value and good customer support, and I think people will stick with you and would like to join you, and this is exactly what Adcore been doing successfully over the years.

Okay. You have a subsidiary or a division called Amphy. Can you give the audience a little bit better understanding of what that is and talk about what your plan is for that business?

Yes. So with Amphy it's, I would say, an education tech website that we started, there are many live education but not only live. We invested a lot in Amphy the last, I would say, 2 years, what we are planning now is obviously, we would like to reduce the invest to basically reduce the current ban rate to the bare minimum and start to see some income coming from it. So as long as we can keep it under control, see almost 0 ban rate and start to see some revenue coming from Amphy, and we're going to be happy with the current results.

Can you elaborate on the recent partnership that you announced a few months back and the impact that $10 million contract will have on your business?

Yes, I don't think it's a partnership. It's a new client acquisition deal, right?

I'm assuming that's what the reference is, yes.

Yes. Okay. So I would say in this type of client acquisition, not go into too much of a detail specific. But I would say on average a solution like this is like a type of client that we give solution on top of technology and an average take from these type of clients are around 10%. So you can do the math how much a day like this can theoretically be as to the company. But again, this is just like [indiscernible] specific to this specific deal.

You've had several press releases this year announcing that you're managing ad spend for different customers. Can you walk through how this managed ad spend translates into recognized revenue and gross margin. For example, does $10 million in managed ad spend translate into $10 million in recognized revenues.

No. That's like if Adcore act as an agent, that means we are not principle, so we don't take credit risk ourselves. We don't -- like basically, we manage the media for the clients using the clients pay for the media. So the spend don't reflect in the company books only their fee. And like I said, for this type of clients, the average fee is around 10%. So a $10 million Ad spent contract will be around $1 million in the book. And the gross margin over there going to be pretty good. So I would say maybe 90% gross margin from this book, 85% maybe.

I have a few questions on this topic, so I'll consolidate it all into one. Your margins and fundamentals are improving on a quarter-to-quarter basis. When do you anticipate breakeven or positive income for the company? Not sure, I don't believe you give guidance, but I'll let you answer that. And then the last quarter was very close to breakeven. Do you see 2024 as a potentially positive net income year.

It's a good question. I would split my answer into 2. Like for us, seasonality is critical in all our advertising. So we can theoretically in fact, lose money in the first 2 quarters of the year, but still, we need everything back plus some in the second part of the year, especially in the fourth quarter. So if Q3 was almost breakeven, that mean on paper, Q4 can be profitable for us and that can change the entire year as well. So ideally, in a good year, we will see, let's say, breakeven, maybe a small loss in the first 2 quarters and then like a big win in the second 2 quarters of like Q3 and Q4. And with regard to 2024, we're still bullish regarding what we can achieve in 2024 and 2024, sorry. And we believe the same trend that we showed in 2023 can carry well into 2024 as well. And again, the company is trying to focus on operational efficiency. So that means that if you're going to do more revenue and maintain operational efficiency, 2024, should be profitable for us.

Question around M&A, both as potentially being acquired or an acquirer. Can you just talk about I guess, the M&A opportunity that you see in the marketplace for your business? And I guess, what value do you place on your competitors in building through acquisition?

Okay. Third question, I would say, on theory, obviously, there's a lot of M&A opportunities in a market like we operate in, especially in times like that. But in fact, I would say, 2 things. A, Adcore won't consider itself to be a target to be acquired because simply because numbers are not right now, the company evaluation is far, far too low, and that's not something that will be in relevant for us to start discussing right now. So we don't consider as id the current market cap as a target. And if somebody is going to have to watch, we're simply going to say thank you, but no thank you. And with regard to acquire other businesses, and that's definitely for us for the long run, a strategy we would like to take. For now, we try to be a bit more conservative, preserve the cash position that we have and focus on the business efficiency. If you see, for example, that the market conditions are becoming better, the market, we can go to the market and raise more money and do some interesting M&A, then that definitely can be interesting for us 2024 when moving forward as well.

Can you discuss the company's geographical strategy? And I know I asked a similar question earlier, but I think this is a good follow-up. So discuss the company's geographical strategy and how the team has looked to recently expand your footprint in North America.

Yes. So we all the time like when we say it, we will need, then we do it. So if we say that North America is a strategic market for us, and obviously, we are trying to grow the team over there, focus when we grow the team in the first people that we would like to bring on board are more sales type of employees because we need to acquire the best way to grow the book over there is to acquire new clients. So we are growing the sales force in North America, and it's something we already did in 2023 and looking to continue to do in 2024 and basically put more and more resources. Basically, the other sources is more, let's say, delivery type of teams as well. But we start with acquisition and then delivery. We have a lot of stake in North America as well as R&D that we do in North America. So it's definitely an important market for us.

What percentage of your current revenue is generated from principal transactions?

Yes. I don't want to be like -- I would need to ask the CFO for the exact numbers. But I would say, any -- for sure, more than 50% of principal transaction and let's say, top line. If you look at the middle line then basically maybe it's 50-50 split.

Okay. Here's a good question. Can you put a number or a percentage on a range of cost savings for a business using Adcore Suite to collaborate all into one platform to manage digital advertising. What could this be for your ideal size customer?

It's an interesting question. I don't think I have like a number to give you having said that. I can give you the following and I can give you the concept behind the Adcore Marketing Cloud Suite. So if you think about Adobe, a very successful software company for sure that everybody knows, that basically Adobe a few years ago come up with Adobe Creative Cloud. That took a lot of very successful yet independent apps that they've developed or acquired over the years and put all of them under one roof, which they call their Adobe Creative cloud. And the idea over there that if I'm a designer and I would like to use one of the apps, then I can get access to the entire cloud and basically start using all the apps. So a specific designer is usually not going to use the 19 apps that are available and described, but maybe you're going to use 3 apps, 5 apps, but it's very easy once you have an access to this cloud to you don't need to start shopping around and looking for other solutions as well. And the same concept exactly Adcore like to do for online marketing. So whether if you need a feed solution tool and we started to work with only one half that Adcore build which is Feeditor, for example, yes, once you have an access to the Adcore marketing cloud, you can start look for edition solution edition labs and basically find everything under one roof. So the concept is basically more the ease of doing everything doing business in one place and nothing to go now to shop in different stores with different vendors and different software suppliers.

Can you comment on your current spending on R&D? How much investment are you, I guess, putting into new technology? Are there new applications that you're thinking of developing to add to your current suite?

Yes. The short answer is a lot. We're putting a lot of emphasis on technology and especially now with AI, we have like its technology or steroids, right? There's much more we can do in a much more interesting stuff as well. And I think like technology for us is critical. And a lot of the technologies we are developing, it's for, I would say, some of it at we start for internal use, stuff that we are already doing and we know we're going to have demand we are in demand. And basically, this is why we build the apps. And then we add it to the cloud and make it available for everyone. But I think like for us, technology is critical. If I need now to decide whether I put more R&D resources or put more effort in to develop a technology solution or to human-based solutions. And obviously, I would vote for technology in every given day because it will allow me to scale. And for the longer run, it's going to be far better and more effective. And that's the way the company operates. This is already proven. Like a lot of the great results they receive, for example, in 2023 are due to a shift in this decision to put more and more effort into technology.

Okay. And I guess as a follow-up to this point, can you talk or would you have visibility into how many more apps you could see being introduced next year and beyond?

Yes, it's a fair question. I would say the following. If you look at, let's say, 2023, we estimate to finish 2023 with a record number of 3 to 4 new apps, which is a lot, if you need to compare it to previous years. So that means, again, let's emphasize how much more effort we put into technology, how better the team has become and what we can achieve. Having said that, it's just -- it's not just a number game. It's not just like adding more up, it's also the quality of the existing app and the quality of features within the app. So there's no planned numbers of the amount of apps that we would like to have as long as we think that in demand they're going to bring the value to our customers. But I would say, if you look at 2023, then the right now is 3 to 4 apps in 1 year.

[Operator Instructions] We have a couple more questions in the queue here and then look for additional questions before we end the call. So I guess next question for you, Omri, is can you talk about revenue concentration by clients? A few people ask this. Is there any one customer that accounts for more than 10% of total revenue?

Yes. If you look at the company financials, we do have clients that come from more than 10% of the revenue. I think the total concentration of clients that have more than 10% is around 50% of the total revenue.

And I believe you touched on this during your formal remarks, but I guess we've got some follow-up questions, so maybe just go over it again. Talk about the current insider ownership, the ownership by founders and then maybe a breakdown on the flow between institutional shareholders and individual shareholders and how you sort of think about your current public float?

Okay. So we look at the public float. We estimate the public float to be around 31%, which is 19 million shares. We don't have an up-to-date breakdown between institutional holding and, let's say, retail holding. So it could be anywhere within this range, but still it's a pretty tight like float and we keep it even more and more tighter because we are continue buying shares for cancellations.

Okay. And I guess without any additional questions, one more question, I'll ask you, and then we'll end the presentation. Who do you think would be the best peer comparable known company that, I guess, our audience could refer to as they think about you and reviewing you.

Okay. That's actually a very good question, but the answer is not as straightforward as you might guess because Adcore has many different solutions and basically for every solution that we have, we have, let's say, a different set of competitors in the sales, right? So if for example, we take our feed editing and optimization app, which is naivete, then basically, you can think about a company like Chanel, feed adviser or other companies that have similar maybe tools for feed editing. But these are specific companies have specific solution for one thing that Adcore is doing. But I would say, in general, I can think on a specific public company that is a good competitor to everything that Adcore is doing because Adcore has many different things that we are doing, and we have many different solutions. Again, for E Solution, we have a specific set of competitors. Martijn, is there any companies that came to your mind?

No, I totally agree. It's very fragmented. One thing I want to add is also that per region can differ a lot as well. And also the needs per region are different. So in Greater China region, we have different needs, different clients that use different of our tools than in North America versus EMEA. So there's no one answer, unfortunately, but it is a good question, and we continue to try to give more clarity on an app level and like Omri mentioned, for feed management, there is a couple of betters out there, but different for every airplane. That makes us in a unique spot we feel, especially as a public company. There's not many companies like us out there.

Okay. We do have a couple more questions that came in. So I think there's some good ones. So we'll ask them. Maybe for the benefit of our audience, if you could sort of create a case study or talk about a case study of how you go to sell to a new client, how they choose you or what their process is for choosing you over a competitor? And typically what goes into their decisions.

Yes. It's a good question. I would split my answer it 2. If you're talking about the pure technologies and the process is seamless, so effortless, basically, I would say, a typical plant would go online, look for a solution, let's say, again, feed management tool solution, maybe read in a blog article in the Adcore blog about it, and then you would go to the one of the product pages, let's say, the Finite page. And then what we can do from this Ad page is just to open a trial account and start using finite to test it. And then you're going to have a 21 days free trial to test it, and then if [indiscernible] can choose which plan is suitable to his needs, it depend on the size of the feed that you have, how many assets you would need to do, how many user would need access tool and basically put his credit card details online and start paying for the tool as simple as that. You can go with a monthly subscription or a yearly subscription and it's up to in to decide. So it can be very easy and straightforward. Maybe we didn't speak with anyone from our team. You can do it everything by yourself. Maybe you can push to see the same team and ask some questions and get some guidance as well. But I would say, more or less, it's a very easy and straightforward process. Obviously, if we're talking about a bit more complex client with requirement also solutions on top of the technology and the process is a bit more lengthy and it's more people attached to. So a typical client will approach us, maybe he was referred to us, a lot of clients, refer to us by partners or other clients as well. And then usually, Martijn, maybe you would like to discuss the process, but we would do like an audit and basically like audit whatever is doing now, will showcasing where we can contribute value. And then if we like what we have to offer in then basically, you will sign a contract, usually, it's going to be an early contract and we're going to start working with us. So I think like it's again I would say, in this type of course, I would say it's anywhere between a few weeks, I guess, to 1 or 2 months before we can win him as a client. Martijn, anything you would like to add on that process?

Yes. No, I totally agree that it's a fair representation of the process and what people really like is when we do this audit as we give meaningful insights on what we think we can improve. And we make it very concrete. Like in the next 3 months, you can expect this growth in revenues or improving the profitability of the ad campaigns. And that's what our customers like, and that's not every agency is comfortable doing our marketing solution provider is comfortable doing. And next to that, our pilot period also gives some opportunity to really test it out, get comfortable with our tools, with our team, get to know each other, and it's a perfect way for us to lock in a long-term deal. And at the end of the day, also as Omri mentioned it all results that count and having the great relationship, and that's how we are able to maintain long-term relationships with our clients.

A couple more questions here. I guess, clearly, Israel is in the middle of a very difficult war and a couple of people would like to find out what impact does that -- has that had on both the business, your employees and your day-to-day operations?

Yes. Again, a fair question. I would say in the beginning, like everybody were beat in a state of shock over here. But obviously, that's not the case anymore. I would say in the beginning, we -- people switch to work remotely, but the world didn't really stop. We have retail clients that we continue to run the business. We have some, let's say, locally in Israel, some travel-related clients, it may be stop activity, but then we got other budget as well that are basically from a government-related budget that we won because we won a very big government tender 5 years ago. So I think all in all, actually, in terms of online budget, they manage from Israel it didn't go down, it go up during the war. And again, Israel is just a small portion of what the company is doing because we are now a global company. So I say Israel is a small portion, but this portion actually grew up. And I think people spirit with everything that's going on is still strong. We resume to work from the office in Tel Aviv and everybody trying to do our best, obviously, to support our people, but also to make sure that the businesses continue to run as usual, and we're going to have a successful Q4 and obviously starting the progression for 2024 as well.

And last question for you gentlemen. I guess a great place to end the call is maybe get your views on both the ad market and how you think you fit into it in 2024? And then as you think about your business, what it says to you the most going forward?

Yes. It's 2 different questions in a sense, but I can see the relation between them. So I would say, if you're looking at the end market, one of the things that I love the most about the end market it is always changing. It's never stay still. And the end market in 2023 or the 2024 going to be different to what it used to be in 2023. And I will guess, but I'm not going to be mistaken as the same story going to repeat in 2025. So companies that understand that know to prepare, know to tap themselves, know to come up with new solutions to the changed market actually going to have and going to end up as winners in this market. And I think Adcore proved time and again that basically, we know how to do it. We know how to adapt. We know how to come up with new solutions that are more relevant and do everything that we need in order to be there for our clients when the market is changing. So this is one thing. And I think with regards to the company, what makes me exciting about the company is that I think like we are already 4 years plus as a publicly listed company. I think we grew a lot, and we understand a lot what needs to be done. The company has much more, I would say, good understanding what should be the company valuable position for the market, a much more solid strategy moving forward. And I think like just like being able to focus on it and execute on the strategy, I think it's bringing resort. And every time that you have strategy, you focus on it and then you can bring results that's exciting, right? Because it gives you more energy and more push in order to continue to execute on your strategy. And I think that's what the company is doing in 2023 and, I would say, double down in 2024 and hopefully double up the result as well.

Super. Thank you very much, Omri. Thank you very much, Martijn, and thank you to our audience. This concludes the presentation. And if you do want to receive a replay of this, we will have a replay available at some point starting hopefully tomorrow. Thanks again, and everybody, have a good day.

Great. Thanks, everyone.

Thanks, everyone.