Financial Performance - The company recorded an impairment of goodwill amounting to US$11.9 million, reclassified from non-operating to operating expenses [583]. - The company received net proceeds of approximately US$483.6 million from its initial public offering, after incurring total expenses of US$28.9 million related to the issuance and distribution of ADSs [750]. - Approximately 20% of the net proceeds from the initial public offering and concurrent private placement were allocated for research and development, marketing, branding, technology infrastructure, working capital, and other general corporate purposes [751]. - The company intends to utilize the remainder of the net proceeds from the initial public offering as disclosed in the registration statements on Form F-1 [751]. Currency and Foreign Exchange Risk - The company does not hedge against foreign currency risk, with a substantial majority of revenue-generating transactions denominated in Renminbi [728]. - The company has experienced over a 10% appreciation of the Renminbi against the U.S. dollar since June 2010, impacting its foreign exchange risk exposure [729]. - As of December 31, 2022, the company held Renminbi-denominated cash and cash equivalents of RMB65.5 million, with a potential impact of US$0.9 million on cash equivalents from a 10% depreciation of Renminbi against the U.S. dollar [730]. Asset Management and Impairment - The company performs annual impairment tests for goodwill, with qualitative assessments determining if further quantitative tests are necessary [581]. - The company assesses expected credit losses based on historical collection trends and current economic conditions, indicating a proactive approach to managing accounts receivable [580]. - The company’s cash and short-term investments are primarily held in bank and time deposits, which are not significantly affected by interest rate fluctuations [731]. Financial Estimates and Compliance - The company’s financial estimates are based on historical experience and reasonable assumptions, with ongoing evaluations to ensure accuracy [578]. - The company has not made any payments to directors or officers from the net proceeds of the initial public offering, ensuring compliance with regulatory standards [750].

Agora, Inc. Reports Fourth Quarter and Fiscal Year 2022 Financial Results SANTA CLARA, Calif., February 27, 2023 (Globe Newswire) – Agora, Inc. (NASDAQ: API) ("Agora"), a pioneer and leading platform for real-time engagement APIs, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2022. "We made significant adjustments to our organization and strategy to overcome the many challenges in 2022, including regulatory changes in certain market and a turbu ...

Financial Data and Key Metrics Changes - Revenue for Q4 2022 was $40.1 million, a decrease of 0.7% year-over-year and a decrease of 2.1% quarter-over-quarter [15][16] - Full year revenue for 2022 was $160.7 million, representing a 4.4% decrease from 2021, primarily due to a $37.8 million drop in revenue from the K12 academic tutoring sector in China [9][16] - Non-GAAP gross margin for Q4 was 61.2%, which was 1.4% higher than the previous quarter but 2.8% lower than Q4 2021 [18] - Non-GAAP operating loss was $10.7 million, translating to a 26.7% non-GAAP operating loss margin for Q4, an improvement from 38.2% in Q4 2021 [19] Business Line Data and Key Metrics Changes - The number of active customers increased to 3,066, adding close to 400 compared to the previous year [5] - Revenue from the K12 academic tutoring sector in China decreased significantly from $40 million to $3 million [9] - New use cases such as live video shopping are expanding rapidly, contributing to revenue growth in other sectors [8] Market Data and Key Metrics Changes - The trailing 12-month constant currency dollar-based net expansion rate was 81%, with 118% for U.S. and international business and approximately 100% for China business [17] - Pricing pressure was noted in the U.S. and international markets, particularly affecting startup companies due to high inflation and interest rate hikes [30] Company Strategy and Development Direction - The company plans to focus on customer value, enhance competitive advantage, and gain market share in 2023 [12][13] - A reorganization of the global R&D team and workforce reduction was implemented to improve efficiency and focus on strategic priorities [10] - The sale of Easemob's Customer Engagement Cloud business was completed to concentrate resources on core products and markets [11] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macro environment but sees new opportunities in the global RTE market [12] - The company expects total revenues for 2023 to be in the range of $155 million to $157 million, reflecting a flat outlook compared to 2022 [22] Other Important Information - The company ended Q4 with $428 million in cash and short-term investments, down from $483 million at the end of Q3 [21] - A share repurchase program was extended to February 28, 2024, reflecting the Board's confidence in the company's fundamentals [21] Q&A Session Summary Question: When could we see the inflection point in the domestic and overseas markets? - Management noted that the recent slowdown in revenue growth is due to macroeconomic challenges and does not reflect a fundamental change in demand for real-time engagement technology [25] Question: Is the target of breakeven by Q4 2023 still valid? - Management indicated that while they expect revenue to increase quarter-by-quarter, they do not have a fixed revenue and operating expense target at this point [26] Question: Can management provide insights on client numbers and ASP trends? - Management confirmed a steady increase in the number of customers but noted pricing pressure in the U.S. and international markets due to economic conditions [30] Question: What applications or industry verticals might accelerate or slow down in 2023? - Management highlighted emerging use cases like speech-to-text and live shopping, with potential growth in digital transformation in China and other regions [34] Question: What is the revenue breakdown by key categories in 2022? - In the U.S. and international markets, social is the largest vertical, followed by education and live video shopping, while in China, social dominates with growing contributions from digital transformation and IoT [42]

Financial Data and Key Metrics Changes - The company's revenue for Q3 2022 was $41 million, a decrease of 9% year-over-year and flat quarter-over-quarter [5][18] - The trailing 12 months constant currency dollar-based net expansion rate was 84%, with the US and international business above 130% and approximately 70% for the China business [19] - Non-GAAP gross margin for Q3 was 59.8%, down 5.7% from Q3 2021, primarily due to increased revenue from the broadcast streaming product [20] Business Line Data and Key Metrics Changes - The company registered 36,000 new applications on its platform, bringing the total to over 0.5 million [5] - The broadcast streaming product contributed approximately 80% of total revenues in Q3, but at a lower gross margin [20] Market Data and Key Metrics Changes - The company faced challenges in international markets, particularly in Southeast Asia and South Asia, where pricing pressure affected ARPU [30] - The appreciation of the US dollar negatively impacted non-US dollar-denominated revenues [6][18] Company Strategy and Development Direction - The company is focusing on improving operational efficiency and enhancing the user experience of core products [7][8] - New use cases such as live video shopping and professional social networking are being prioritized for growth [11][12] - The company aims to maintain a laser focus on key priorities and improve operational efficiency to gain market share [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to inflation, interest rate hikes, and restrictive regulations in certain markets [6][8] - The company remains optimistic about the long-term potential of its technology despite current macroeconomic challenges [7][17] - Guidance for full-year revenues is projected to be in the range of $160 million to $162 million [24] Other Important Information - The company made a difficult decision to restructure and reduce its global workforce, which is expected to yield approximately $9 million in cash savings in Q4 [20][38] - The next-generation real-time engagement SDK version 4.0 was launched, featuring major upgrades in flexibility, simplicity, and performance [9][10] Q&A Session Summary Question: Customer demand trends for domestic and overseas markets - Management noted that demand is driven by new use cases rather than COVID, with challenges arising from the macroeconomic environment [28][29] Question: ARPU and gross profit margin outlook - Management indicated that ARPU in the US market has been stable, but international markets face pricing pressure affecting ARPU [30][31] Question: Guidance for 2023 outlook - Management targets 20% to 30% growth in US and international markets, with a commitment to breakeven on a non-GAAP basis by the end of 2023 [35] Question: Headcount growth in the next few quarters - Management stated there will be no expansion in workforce in the near term, focusing instead on efficient operations [37][38]

Product and Technology - Agora SDK 4.0 supports up to 4K video at ultra-low latency, offering a more flexible, open, and modular architecture [7] - Mainstream video resolution in real-time engagement is steadily increasing from 480p to 720p, leading to an approximately 15% increase in overall session lengths [14] Business Adoption and Trends - A leading collectibles auction marketplace leverages Agora's platform to hold live auctions through real-time video [9] - A global professional network uses Agora technology to provide live, interactive conversations for creators and influencers [11] - IoT devices are increasingly adopting RTE technologies, with devices featuring RTE capabilities sold at a premium [16] Financial Performance (Q3 2022) - Non-GAAP Research & Development expenses were $25.187 million, representing 61.4% of total revenues [46] - Non-GAAP Sales and Marketing expenses were $13.015 million, accounting for 31.8% of total revenues [48] - Non-GAAP General & Administrative expenses were $7.409 million, which is 18.1% of total revenues [49] - Free cash flow was negative $9.918 million [52] - Adjusted EBITDA was negative $16.399 million, resulting in an Adjusted EBITDA Margin of negative 40.0% [51]

Agora, Inc. (NASDAQ:API) Q2 2022 Earnings Conference Call August 15, 2022 9:00 PM ET Company Participants Fionna Chen - Head, Investor Relations Tony Zhao - Founder, Chairman & Chief Executive Officer Jingbo Wang - Chief Financial Officer Conference Call Participants Yang Liu - Morgan Stanley Bing Duan - Nomura Allen Li - JPMorgan Operator Good day, and thank you for standing by. Welcome to Agora Inc.'s Second Quarter 2022 Financial Results Call. At this time, all participants are in the listen-only mode. A ...

Financial Performance - Total revenues for Q2 2022 were $41.0 million, a decrease of 3.2% from $42.3 million in Q2 2021[2] - Net loss for Q2 2022 was $30.7 million, compared to a net loss of $15.4 million in Q2 2021[9] - Adjusted EBITDA for Q2 2022 was negative $15.3 million, compared to negative $7.3 million in Q2 2021[2] - Total revenues for Q2 2022 were $40.979 million, a decrease of 3.2% from $42.333 million in Q2 2021[26] - Real-time engagement service revenues for Q2 2022 were $39.203 million, down 2.9% from $40.357 million in Q2 2021[26] - Gross profit for Q2 2022 was $26.609 million, an increase of 2.9% compared to $25.859 million in Q2 2021[26] - Net loss for Q2 2022 was $30.678 million, compared to a net loss of $15.394 million in Q2 2021, representing a 99.0% increase in losses[26] Customer Metrics - Active customers as of June 30, 2022, were 2,877, an increase of 17.5% from 2,449 as of June 30, 2021[2] - Constant Currency Dollar-Based Net Expansion Rate (DBNER) was 95% for the trailing 12-month period, with rates above 130% for the US and International business[2] Expenses - Operating expenses increased by 20.4% to $54.5 million in Q2 2022 from $45.3 million in Q2 2021[6] - Research and development expenses were $32.4 million, an increase of 20.1% from $27.0 million in the same period last year[7] - Operating expenses for Q2 2022 totaled $54.511 million, up 20.3% from $45.283 million in Q2 2021[26] - Research and development expenses for Q2 2022 were $32.442 million, an increase of 20.5% from $27.003 million in Q2 2021[26] Cash and Investments - Total cash, cash equivalents, and short-term investments as of June 30, 2022, were $641.2 million[2] - Cash and cash equivalents as of June 30, 2022, were $150.849 million, down 47.3% from $285.668 million as of December 31, 2021[24] - Total assets decreased to $877.720 million as of June 30, 2022, from $944.999 million as of December 31, 2021, a decline of 7.1%[24] - Total shareholders' equity decreased to $801.791 million as of June 30, 2022, from $866.261 million as of December 31, 2021, a decline of 7.4%[24] Cash Flow - Cash used in operating activities for Q2 2022 was $23.797 million, compared to $8.326 million in Q2 2021, indicating a significant increase in cash outflow[28] - Net cash used in operating activities for the six months ended June 30, 2022, was $(39,658) million, significantly higher than $(11,068) million in 2021, marking a 258% increase[31] - Free Cash Flow for the three months ended June 30, 2022, was $(24,247) million, compared to $(11,535) million in 2021, representing a 110% increase in cash outflow[31] - Net cash used in investing activities for the six months ended June 30, 2022, was $(77,168) million, compared to $(191,093) million in 2021, showing a decrease of 60%[31] - Net cash provided by financing activities for the three months ended June 30, 2022, was $(12,518) million, compared to $368 million in 2021, indicating a significant shift in cash flow[31] Shareholder Actions - Approximately 6.3 million class A ordinary shares were repurchased for approximately $11.7 million during the quarter[10] Depreciation and Expenses - Depreciation of property and equipment for the six months ended June 30, 2022, was $4,897 million, compared to $3,983 million in 2021, representing a 23% increase[31] - Share-based compensation expense for the three months ended June 30, 2022, was $9,033 million, up from $8,524 million in 2021, indicating a 6% increase[31] - Acquisition-related expenses for the six months ended June 30, 2022, were $513 million, down from $4,699 million in 2021, reflecting an 89% decrease[31]

Agora, Inc. (NASDAQ:API) Q1 2022 Earnings Conference Call May 23, 2022 9:00 PM ET Company Participants Fionna Chen - Director, IR Tony Zhao - Founder, Chairman and CEO Jingbo Wang - CFO Conference Call Participants Yang Liu - Morgan Stanley Bing Duan - Nomura Operator Good day, everyone, thank you for standing by. Welcome to Agora, Inc’s. First Quarter 2022 Financial Results Conference Call. At this time, all participants are in the listen-only mode. After the speakers' presentation, there will be a questio ...