You can begin now. On the call this morning, the company's CEO, Omri Brill, will provide an update on the company's operations and strategy, followed by a financial review by Adcore's CFO, Yatir Sadot, of the company's Q1 2023 financial statements. After which we will answer pre-sent questions and take questions from participants. I would like to take a moment to remind participants of the Safe Harbor statement. This conference call contains certain forward-looking information and forward-looking statements, collectively forward-looking information, including statements about the company. I will now give you a few moments to take a look at the forward-looking information as reflected on the screen. At this time, I'll be turning the call over to Omri Brill, Adcore's CEO, to update you on the operations and strategy of the business.
Okay. Thank you very much, Gabe. Good morning, everyone. Thank you for joining us today for the company Q1 2023 earnings call. For us in the, in the advertising space, Q1 is traditionally the slowest quarter in the week, in the month, in the year, sorry. Basically, the year started slowly, then it slowly pick up Q2, Q3, and Q4. Actually, when we look at the company quarterly results, and we can see exactly the trend in 2023. That's a very good example. Q1 2022 was CAD 4.7 million in top line revenue. Q2 was CAD 5.2 million and then CAD 7.5 million, and Q4 2022 was CAD 8.8 million.
Basically, being able to demonstrate such a strong earning report for Q1 2023 give us a lot of confidence regarding what the company will be able to achieve in the entire year. It's definitely a very strong start of the year, and we are very happy and pleased with the report that we're gonna demonstrate today or showcase today. Let's dive into the numbers a bit. Okay. Q1 2023 top line revenue of CAD 6.8 million, compared to CAD 4.7 million in Q1 2022. That's a massive increase of 45% year-over-year. Gross profits were up by 35% year-over-year to CAD 2.7 million, compared to CAD 2 million in the previous year.
When we look at quality growth KPIs, the company, historically, the annual report to KPIs, gross profit and gross margin, also revenue coming from North America region for us. Obviously Adcore have many more important KPIs, but this is some KPIs we like to call quality KPIs. Here again, we see a very strong numbers for Q1 2023. Like I said before, CAD 2.7 million in gross profit compared to CAD 2 million in the previous year. Gross profit up 35% and gross margin were 40%, which is actually in the higher range of our original guidance was, which was 30%-40%. We are very happy with the bottom line results, obviously. Again, when we're looking about.
When we look at revenues coming up from North America, we see a massive 61% year-over-year growth to more than CAD 1.5 million in Q1 2023, compared to less than CAD 1 million in the previous year. Again, two very important KPIs, and both of them are actually moving in the right direction. I wanna touch base about Amphy numbers a bit, there's so many interesting graphs which I would like to share with you today. Actually the first graph is the Amphy monthly average burn rate. We started this graph in Q1 2022, and the average burn rate over that time was CAD 120,000. As you see by the way, year-over-year, sorry, monthly average. It went down quarter-over-quarter.
We can see that, let's say for example, Q4 2022 was a bit less than CAD 100,000 and Q1 2023 was around CAD 80,000. That's 33% decrease compared to the peak that we had in Q1 2022. The company is taking a lot of aggressive measure in order to make sure that the burn rate gonna be reduced, to CAD 16,000 average in Q2, and then around CAD 40,000 in Q3, and CAD 33,000 we estimated in Q4 2023. That's like if we need to compare to CAD 120,000 that's a 75% reduction.
The way we've been able to do so is because a lot of the heavy lifting that was associated with building up a new platform, onboarding a lot of new teachers, for example, a lot of tech investment and content creation investment, all of these major heavy lifting we've been done with. That's actually good news. We've been able now to reduce, for example, the R&D team from six people in the peak to three people now. Content team was reduced from three to four people in the peak to, say, less than one person now working full time on the Amphy content. Basically, there's a lot of, let's say, saving we can do, and obviously, we expect revenue to increase as well.
In the end of the year, we plan that Amphy burn rate gonna be insignificant to the company, orderly, for business, which is, I think, is a good news for us, a good news for our investors as well. On the upside, although like, I mean, there is also an upside, but if you look at the bottom report, the blue report, we can see the monthly average growth visitors that we have to Austria. Like I said, the company invested a lot creating relevant content for Amphy, and we can see already the very impressive increase in growth visitors over the course of the past quarter.
This is monthly average growth visitors, if Q1 2022 was less than 3,000 visitors a month, then Q1 2023 was already around 50,000 visitors a month, then we expect the Q2 2023 to be at more than 100,000 visitors, and this is based already on visibility that we have with April and almost half of May as well. Basically, very nice growth trend in terms of interest, visitors and stuff like that. Again, that's something that was important for us to share with our shareholders. Just to recap some of the highlights of the Q1 2023 report. Revenue grew by 45%. That's an impressive number. Gross profit grew by 35%. A very nice growth. EMEA revenue grew by more than 80%.
Very fast growth coming from this region. North America revenue grew by more than 60% year-over-year as well. Even APAC, when we saw a massive decline in this region in 2022, is showing positive growth trend and growing 30%, and we believe we'll be able to demonstrate or show more growth coming from this region in this coming year as well. When we look at the comparable, the company still believes the shares is very deeply undervalued. Current share price is CAD 0.23 as of yesterday closing number. We believe there is a very big upside for the company, and that's why the company is buying shares in the market. We have this NCIB plan going on, and we also bought in-market and off-market.
Total shares that we bought since starting this plan exactly one year ago was accumulated to almost 4 million shares that were bought in capital and almost CAD 1 million that was invested in this process. Actually, the company still believes the stock is undervalued. We plan to resume the NCIB for additional year, and once it's gonna be a GAAP clearance for that share, we can announce it and basically present the company intention. The company is excited to continue to support the stock and the shareholder continue to buy shares, both from the company level and I myself from the personal level as well. Everybody is committed. Everybody understands the intrinsic value that basically is the current stock share price. If you remember in the last earnings call, there was the summary of Q4.
We talked about the company goal and targets for 2023, I wanna go over each of the six goals that we announced in the last earnings call and see if the company been able to meet them or not. First, the first goal that we said that we wanna maintain a strong balance sheet with a focus on increased cash reserve. Honestly, we had some drop in the cash reserve quarter-over-quarter, but again, Q4 compared to Q1, that's something that the company expects. For the long run, the company still believes it can actually increase its cash reserve in 2023. Basically, the company remains very much committed to maintaining a strong balance sheet. I would say half a check for the year.
Second target is keeping the growth margin within the 40%-50% range. Again, 40%, that's what we did, and that's a check. Achievement of double-digit growth in revenue, gross profit and operating profit. That's the full year-over-year. 45% year-over-year growth in revenue, 35% year-over-year growth in gross profit and operating profit improved. What the loss in operating profit improved almost 100%. We want another goal for this, to extend our global footprint in North America. Yes, again, we've demonstrated a very strong 60% year-over-year growth. That's a big check. Number five, strengthen the strategic partnerships to drive mutual growth and market share.
The company recently announced it's been selected as the number one Microsoft advertising partner in the EMEA region. That's a big accomplishment. There's also other exciting news we can't reveal yet regarding this partnership, and we are working very hard in signing new partnerships as well. We're gonna announce some exciting partnerships coming in the next coming months. I think again a big check for this year.
The company is in the right track, and every partnership that we sign increase the network effect that the company, the value proposition and also it's a good signal to other platforms to say, "Yes, this is probably a good company to team up with, to make it a partner, to make it an official reseller." In some case, we're also talking about exclusivity in a specific market. Number six is invest in research and development and driving obviously innovation. Yet again, a big check. The company is working on very exciting, I would say, additions to the company app in the pipeline. Both new features and new apps that we're gonna release this quarter in Q2. There's a lot of exciting news coming our way.
I say, in the end of the day, like, if you need to look at what the company says it's gonna be the company goal for guidance for 2023, I'm happy to report the company been able to meet maybe 90% of the goals and targets it put itself, so I can be very pleased. I think that's also one of the reasons why the company was able to showcase such a strong report in Q1, and we are very bullish and optimistic about what we can still achieve in the next coming year. I know that there is still waiting for guidance for the second quarter, We would like to supply them in the beginning of June, when we have a bit more clarity about this quarter.
Again, we feel what I can say that we see the same trend that we saw in Q1 carrying into Q2 as well, which is obviously a positive signal. That's it from my end for the company remarks, and I'm gonna hand it back to you, Gab, and I guess to CFO as well.
Thank you so much, Omri. And with that, I too, I will, turn this call over to, Yatir Sadot , our CFO, to review the first quarter financials in more detail. Yatir?
Thank you, Leah. Good morning, everyone. I would like to provide a straightforward and comprehensive overview of our first quarter financial results, keeping in mind that we'll discuss both GAAP and non-GAAP measures, all presented in CAD. Despite the challenging business landscape our team has observed in the first quarter, our strategic focus since mid-2021 has been on generating higher-margin revenues and cultivating relationships with scalable and resilient clients. This approach has not only fostered a more sustainable business, but also enhanced our long-term profitability. Now let's dive into details. For the three months ended March 31st, 2023, we delivered revenues of CAD 6.8 million compared to CAD 4.7 million in the same period of 2022. An increase of CAD 2.1 million, or 45%. Yes, an increase of 45% year-over-year.
Gross profit was CAD 2.7 million compared to CAD 2 million, an increase of CAD 700,000 or 35%. Gross margin for the three months ended March 31, 2023, was 40% compared to 43% in the same period last year. We kept the target range of gross profit between 40% and 45%. For operational expenses, R&D expenses for the quarter were CAD 0.4 million or 6% of revenue, compared to CAD 0.4 million or 8.5% of revenues in the prior year. The decrease is mainly due to the reduction of the development team in the Amphy progress. Sales and marketing and general administrative expenses for the quarter were CAD 2.5 million, or 37% of revenues, compared to CAD 2 million or 43% of revenues in the same period in 2022.
SG&A expenses increased mainly due to partnership expansion expenses. Operating expenses. Operating loss was CAD 0.2 million compared to an operating loss of CAD 0.4 million. This decrease in loss was mainly driven by the increase in revenues. Net loss was CAD 0.6 million compared to a loss of CAD 0.8 million in the same period last year. Revenue breakdown. As for our geo revenue breakdown, North America and EMEA region showed the most growth year-over-year, as you can see in this slide. Year-over-year revenues by regions. North America and EMEA grew with hyper-growth, as you can see in the chart. EMEA grew by 81% year-over-year from CAD 1.8 million - CAD 3.3 million. North America grew by 61% year-over-year from almost CAD 1 million - CAD 1.5 million.
APAC region grew by 3% year-over-year. Let's discuss net cash used in operating activities. One of our targets to 2023 that we communicate in the last earnings call in fourth quarter 2022, was to preserve more cash flow in 2023 and to be more efficient. The company used CAD 1 million net cash in operating activities in the last quarter that ended March 31, 2023, compared to CAD 2.4 million in the same period last year. This improvement is the result of the team's efforts to be more efficient. In terms of financial position, we ended the first quarter with cash and cash equivalents of CAD 7.3 million as of March 31, 2023, compared to CAD 8.8 million at December 31, 2022. Total working capital of CAD 8.6 million compared to CAD 9.2 million at December 31, 2022, a decrease of CAD 0.6 million or 6.5%.
The decrease in cash is mainly attributable to immediate payments related to the fourth quarter of 2022, purchasing shares through NCIB plan, investment in Amphy, and payments to media partners. We believe we generate more cash and cash equivalents in 2023 compared to last year due to increased demand on the company's products and improved profitability. The company continues to show a debt-free financial position, as you can see. In terms of adjusted EBITDA, our quarterly non-GAAP results reflect adjustment for the foreign items. Depreciation and amortization total CAD 229,000. Share-based payment total CAD 84,000. For the three months ended March 31, 2023, adjusted EBITDA was CAD 68,000 compared to CAD 85,000 for the same period in 2022.
Excluding Amphy's expenses from operating profit, AdTech's operating profit was CAD 30,000 for the three months ended March 31st, 2023, and adjusted EBITDA for the AdTech activity was CAD 343,000 in the same period. With that, I will turn the call back to Gab.
Thank you, Yatir Sadot. At this point, we will turn the call over to questions. You are welcome to put in any questions you have in the Zoom webinar chart. We will start with a few of our pre-set questions. The first being from Kari, who says, congratulations on returning to the growth on the AdTech side. My question relates to the Amphy business. What are your long-term goals for Amphy? As part of your commitment to prudent cash management, what specific steps are you taking to ensure the survival of the business, given Amphy's slow growth?
Okay. Thank you for the question. I believe actually we addressed this issue quite well in the slides that we presented regarding the expected Amphy payment. With the company being able to cut it by 33% year-over-year already, and we have addressed we plan to cut it an additional 33% or even more, so a total of 75% reduction. By the end of, I would say, the second half of 2023, Amphy shouldn't be no longer a burden on the company's cash, or if it's gonna be a burden, it's gonna be very minimal amount. That's from one end. From the other end, we expect to start seeing more the fruit of our investment starting or our investments starting to bear fruit.
We would like to see some more revenues coming from the Amphy project as well. Again, the company is very committed to maintain a very strong balance sheet, and we'll do whatever it takes in order for that to be the case.
Okay, wonderful. We have another question. Given the cash burn rate over the last year and the statements made by the CEO about fiscal responsibility, will management end up seeing a pay cut in order to restore the balance sheet?
Again, the company is committed to maintain a strong balance sheet. We communicated it in the earlier call. We re-expressed that in this call as well. During COVID, for example, management took a significant cut in salaries for almost 20% or more than 20%. Even post-COVID, we just went through the pre-COVID, I would say, salary. I think, like, we do whatever it takes and that means everything. If we believe that's gonna be necessary, we can obviously have a look at it, but currently we believe 2023 is supposed to be a positive year, and the cash of the company should be increasing this year. That's at least the company focus and direction and what we are aiming to see in this year.
Excellent. This is not a question, but a comment that says, first glance on the results, it looks like a continuation of the build-up of the business. Good work, and hope Amphy makes significant progress. That comes from Mike. Would you like to comment on that?
First of all, it's always encouraging to hear a nice comment from a shareholder, somebody we respect a lot, like Michael Elkins. Again, with regards to Amphy, there's a lot of progress being made, both in the reduction of the payment, in the increasing of the amount of visitors and activities within the website. We remain positive regarding the long-term future for Amphy.
Excellent. It doesn't look like there is any more questions coming in, but I'll give everybody just a moment in case there's a last-minute question. If not, with that, we will conclude the Q&A portion of this call. Thank you for joining us today, and have a great day, everyone.
Yeah. Thanks, everyone. I guess, the report speaks for itself. That's why everybody remains quiet this call. Thank you for everyone that joined today's call, hope for me you are happy about this report like we are, and positive about this year like we are. That's a very strong beginning of 2023 as far as the company is concerned.
Thank you.