Core Viewpoint - Agora, Inc. is set to release its financial results for Q4 and the fiscal year 2024 on February 24, 2025, after U.S. market close, followed by a conference call to discuss the results [1][2]. Company Overview - Agora, Inc. is a pioneer and leader in Real-Time Engagement Platform-as-a-Service (PaaS), providing developers with APIs for real-time voice, video, interactive live-streaming, chat, whiteboard, and AI capabilities [3]. - The company operates two independent businesses: Agora and Shengwang, with Agora headquartered in Santa Clara, California, and Shengwang based in Shanghai, China [3][4].

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse before exiting a trade [1][2]. - A stock's recent price strength can be assessed through a unique short-term trading strategy that identifies stocks with strong fundamentals and bullish indicators [3]. Group 2: Company Spotlight - Agora, Inc. (API) - Agora, Inc. has shown a solid price increase of 86.5% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 38.9% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, API is trading at 82.8% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - API holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988 [7]. Group 4: Investment Strategy - In addition to API, there are other stocks that meet the criteria of the "Recent Price Strength" screen, which can help investors identify potential winning stocks [8]. - The effectiveness of stock-picking strategies can be backtested using tools like the Zacks Research Wizard, which offers insights into successful strategies [9].

Group 1: Company Overview - Agora, Inc. Sponsored ADR (API) is part of the Business Services group, which consists of 292 companies and ranks 8 in the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions, with Agora currently holding a Zacks Rank of 2 (Buy) [3] Group 2: Performance Metrics - The Zacks Consensus Estimate for API's full-year earnings has increased by 600% in the past quarter, indicating improved analyst sentiment [4] - Year-to-date, API has returned 25.7%, outperforming the average gain of 25.6% for the Business Services group [4] - In the Technology Services industry, which includes 156 stocks, API has slightly underperformed with year-to-date returns compared to the industry average gain of 62.4% [6] Group 3: Comparative Analysis - Another stock in the Business Services sector, Arbe Robotics Ltd. (ARBE), has outperformed with a year-to-date return of 44.1% and a Zacks Rank of 2 (Buy) [5] - Both Agora, Inc. and Arbe Robotics are expected to maintain solid performance moving forward [7]

Company Overview - The company, Agora, is a leading real-time audio and video communication technology provider founded in 2014 and headquartered in Shanghai, China [3] - Agora specializes in offering high-quality, low-latency real-time audio and video communication solutions for developers, widely used in online education, social entertainment, enterprise collaboration, live streaming, and gaming [3] - The core product is the real-time audio and video API, supporting cross-platform (iOS, Android, Web) functionalities such as audio and video calls, interactive live streaming, and real-time messaging [3] - Agora's cloud-based technology provides global coverage, low latency, and high stability, making it ideal for scenarios requiring high real-time performance [3] Financial and Market Data - The stock price of Agora is $5.06 as of December 3, 2024 [3] - The market capitalization stands at $466 million [3] - The company has 92.075 million shares outstanding [3] - The 52-week high and low prices are $6.49 and $1.654, respectively [3] Strategic Collaboration - Agora has partnered with OpenAI to integrate OpenAI's AI technology with Agora's real-time audio and video communication solutions [4] - The collaboration aims to enhance voice and video communication experiences, improve service quality, and explore new application scenarios [4] - A conversational AI SDK has been launched, allowing developers to incorporate AI-driven voice editing experiences into any application [4] - Both Agora and OpenAI will charge developers based on usage [4] Management Commitment - The company's management team, including CEO Zhao Bin, CTO Zhong Sheng, CFO Wang Jingbo, and COO Liu Bin, has voluntarily entered a lock-up period starting December 2, 2024, and ending December 31, 2025 [5] - This move demonstrates the management's confidence in the company's future development [5]

Core Viewpoint - Agora, Inc. has announced that its senior management team has voluntarily entered a lock-up period until December 31, 2025, to express confidence in the company's long-term value [1][2]. Company Overview - Agora, Inc. is a Cayman Islands holding company with two independent divisions operating under the Agora and Shengwang brands, respectively [3]. - The company is headquartered in Santa Clara, California, and is recognized as a pioneer and global leader in Real-Time Engagement Platform-as-a-Service (PaaS), offering developers APIs for real-time voice, video, interactive live-streaming, chat, whiteboard, and AI capabilities [4]. - Shengwang, headquartered in Shanghai, China, is a leading Real-Time Engagement PaaS provider in the Chinese market [4]. Management Lock-Up Details - The lock-up period involves all executive officers of the company, including the founder and CEO, chairman, CTO, CFO, and vice president, who will not sell any shares until the end of the lock-up period, except for Mr. Zhong, who plans to sell up to 0.4 million ADSs (equivalent to 1.6 million class A ordinary shares) for personal financial reasons, expected to be completed by December 31, 2024 [2].

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 were $31.6 million, a decrease of 7.7% quarter-over-quarter and 9.8% year-over-year. Excluding low-margin products, revenues increased 2.3% quarter-over-quarter and decreased 3.1% year-over-year [18][21] - Agora's revenues were $15.7 million, up 0.4% quarter-over-quarter and 2.6% year-over-year, driven by business expansion in certain verticals like live shopping [19] - Shengwang revenues were RMB 112.9 million, down 14.5% quarter-over-quarter and 20% year-over-year. Excluding low-margin products, revenues increased 4.2% quarter-over-quarter and decreased 8.7% year-over-year [20] Business Line Data and Key Metrics Changes - The increase in Agora's revenues was primarily due to growth in live shopping and other verticals [19] - Shengwang's revenue decline was attributed to slowing demand in social and entertainment verticals due to regulatory and economic conditions [21] Market Data and Key Metrics Changes - Demand in the U.S. and international markets, particularly in live shopping and social spaces, contributed to revenue growth expectations for Q4 [42] - In China, improvements were noted in IoT and digital transformation, with market share expansion despite challenging economic conditions [43] Company Strategy and Development Direction - The company is focusing on becoming a key infrastructure provider for real-time conversational AI, with structural changes to leverage opportunities in this area [15] - The launch of the conversational AI SDK in collaboration with OpenAI aims to enhance user experiences across various applications [6][7] Management Comments on Operating Environment and Future Outlook - Management expects operating expenses to decrease by approximately $4 million in Q4 and $7 million in Q1 2025 due to recent restructuring [35] - The company targets GAAP breakeven for full year 2025 under conservative revenue assumptions, aiming for moderate revenue growth and readiness for demand from conversational AI use cases [48] Other Important Information - The gross margin for Q3 was 66.7%, an increase from the previous year, primarily due to the end of low-margin products [24] - The company repurchased approximately 6.8 million Class A ordinary shares for $3.9 million, completing 57% of its share repurchase program [30] Q&A Session Summary Question: Impact of recent organization changes on earnings and update on collaboration with OpenAI - Management expects operating expenses to be about $4 million lower in Q4 and $7 million lower in Q1, with minimal impact on revenues [35] - Collaboration with OpenAI has generated interest, with ongoing POC stages and improvements in technology and infrastructure being pursued [36][37] Question: Key drivers for better revenue in Q4 and demand in different markets - Q4 revenue guidance is $34 million to $36 million, driven by demand in both U.S. and international markets, as well as improvements in China [42][43] Question: Outlook for next year regarding revenue and cash flow - The company targets GAAP breakeven for full year 2025 under conservative revenue assumptions, with a focus on moderate revenue growth and operational readiness [48]

Revenue Performance - Total revenues for Q3 2024 were $31.6 million, a decrease of 9.8% from $35.0 million in Q3 2023[4] - Agora's revenue was $15.7 million, an increase of 2.6% from $15.3 million in Q3 2023, driven by business expansion in sectors like live shopping[6] - Shengwang's revenue was RMB112.9 million ($15.9 million), a decrease of 20.0% from RMB141.2 million ($19.7 million) in Q3 2023, primarily due to end-of-sale products[4] - Total revenues for the three months ended September 30, 2024, were $31,573 thousand, a decrease of 9.2% compared to $35,016 thousand for the same period in 2023[36] Customer Metrics - Active customers for Agora increased to 1,762, up 5.9% from 1,664 in Q3 2023, while Shengwang's active customers decreased to 3,641, down 9.7% from 4,034[4] Net Loss and Financial Performance - Net loss for Q3 2024 was $24.2 million, compared to a net loss of $22.5 million in Q3 2023[12] - Non-GAAP net loss for Q3 2024 was $10.4 million, an improvement from a non-GAAP net loss of $15.6 million in Q3 2023[5] - The net loss for the three months ended September 30, 2024, was $24,180 thousand, compared to a net loss of $22,513 thousand in the same period of 2023, indicating a worsening of 7.4%[36] - Net loss for Q3 2024 was $24,180 thousand, compared to a loss of $22,513 thousand in Q3 2023, reflecting an increase of 7.4% year-over-year[37] Cash Flow and Liquidity - Cash and cash equivalents decreased to $32,118 thousand as of September 30, 2024, from $36,894 thousand as of December 31, 2023, a decline of 13%[34] - Cash balance at the end of Q3 2024 was $32,348 thousand, compared to $28,577 thousand at the end of Q3 2023, showing an increase of 12.2%[38] - Net cash used in operating activities for Q3 2024 was $(4,622) thousand, up from $(3,033) thousand in Q3 2023, an increase of 52.5%[39] - Free cash flow for the nine months ended September 30, 2024, was $(20,961) thousand, compared to $(17,947) thousand for the same period in 2023, indicating a decline of 16.3%[39] - Net cash provided by financing activities in Q3 2024 was $7,385 thousand, a significant recovery from $(12,388) thousand in Q3 2023[39] Expenses and Investments - Research and development expenses increased by 46.1% to $29.3 million in Q3 2024, primarily due to restructuring and severance expenses[10] - Research and development expenses increased to $29,271 thousand for the three months ended September 30, 2024, compared to $20,040 thousand in 2023, marking an increase of 46%[36] - Share-based compensation expenses increased to $13,647 thousand in Q3 2024 from $6,643 thousand in Q3 2023, representing a growth of 105.2%[37] - The total cash used in investing activities for Q3 2024 was $(9,101) thousand, compared to a positive cash flow of $5,677 thousand in Q3 2023[39] Structural Changes and Future Outlook - The company expects Q4 2024 total revenues to be between $34 million and $36 million, compared to $31.6 million in Q3 2024[20] - The company made structural changes to leverage opportunities in conversational AI, aligning its organization for faster and more responsive operations[3] Assets and Liabilities - As of September 30, 2024, total assets increased to $691,496 thousand from $674,595 thousand as of December 31, 2023, reflecting a growth of approximately 2.7%[34] - Total current liabilities increased to $59,109 thousand as of September 30, 2024, from $56,894 thousand as of December 31, 2023, reflecting a rise of 3.8%[34] - Long-term borrowings for the headquarters project rose to $33,762 thousand as of September 30, 2024, from $11,027 thousand as of December 31, 2023, an increase of 206%[34] Impairments and Losses - The company reported an impairment of goodwill of $31,928 thousand in the nine months ended September 30, 2023, which was not present in the current year[39] - The company reported a loss from equity in affiliates of $4,211 thousand in Q3 2024, compared to a minimal loss of $6 thousand in Q3 2023[37] - The company reported a total comprehensive loss attributable to ordinary shareholders of $20,983 thousand for the three months ended September 30, 2024, compared to $21,349 thousand in 2023, a decrease of 1.7%[36]

Core Viewpoint - Agora, Inc. reported a decrease in total revenues for Q3 2024, while also highlighting growth in its Agora segment and ongoing investments in conversational AI technology [3][4][21]. Financial Performance - Total revenues for Q3 2024 were $31.6 million, down 9.8% from $35.0 million in Q3 2023 [3][4]. - Agora segment revenues increased to $15.7 million, up 2.6% from $15.3 million in Q3 2023, driven by business expansion in sectors like live shopping [3][4]. - Shengwang revenues were RMB112.9 million ($15.9 million), a decrease of 20.0% from RMB141.2 million ($19.7 million) in Q3 2023, primarily due to end-of-sale products and reduced customer usage [3][4]. Customer Metrics - Active customers for Agora increased to 1,762, a rise of 5.9% from 1,664 in Q3 2023 [3]. - Shengwang had 3,641 active customers, down 9.7% from 4,034 in Q3 2023 [3]. Profitability and Losses - Net loss for Q3 2024 was $24.2 million, compared to a net loss of $22.5 million in Q3 2023 [3][13]. - Non-GAAP net loss for the quarter was $10.4 million, an improvement from a non-GAAP net loss of $15.6 million in Q3 2023 [3][42]. Cash Flow and Liquidity - Total cash and cash equivalents as of September 30, 2024, were $362.6 million [3]. - Net cash used in operating activities for Q3 2024 was $4.6 million, compared to $3.0 million in Q3 2023 [3][42]. - Free cash flow for the quarter was negative $6.0 million, worsening from negative $3.2 million in Q3 2023 [3][42]. Operating Expenses - Operating expenses increased to $45.9 million, up 24.3% from $36.9 million in Q3 2023, largely due to restructuring and severance expenses [3][8]. - Research and development expenses rose to $29.3 million, a 46.1% increase from $20.0 million in Q3 2023 [3][9]. Share Repurchase Program - The company repurchased approximately 6.8 million Class A ordinary shares for about $3.9 million during Q3 2024, representing 1.9% of its $200 million share repurchase program [15][16]. Leadership Changes - The company announced the departure of Chief Security Officer Roger Hale, effective immediately, with Patrick Ferriter and Robbin Liu taking over security and compliance responsibilities [19][20]. Future Outlook - The company expects total revenues for Q4 2024 to be between $34 million and $36 million, indicating potential growth compared to Q3 2024 [21].

SANTA CLARA, Calif., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Agora, Inc. (NASDAQ: API), a pioneer and leader in real-time engagement technology, will release its financial results for the third quarter ended September 30, 2024 after the close of U.S. markets on November 25, 2024. Agora, Inc. will host a conference call to discuss the financial results at 5 p.m. Pacific Time / 8 p.m. Eastern Time on the same day. Details for the conference call are as follows: Event title: Agora, Inc. 3Q 2024 Financial Results The ...

Investment Rating - The report maintains a "Recommend" rating for Agora (API NASDAQ) [2][6] Core Viewpoints - Agora has become a partner of OpenAI, providing low-latency capabilities for AI large model voice interaction through its integration with OpenAI's Realtime API [2][3] - The Realtime API enables AI to understand human emotions directly from voice inputs, bypassing the traditional speech-to-text and text-to-speech processes, which often lose emotional context and have higher latency [3] - Agora's Conversational AI SDK integrates OpenAI's Realtime API, offering developers low-latency, high-availability, and high-quality audio transmission services, along with features like echo cancellation and noise reduction [3] - The partnership highlights Agora's strong competitiveness in overseas markets, particularly in addressing network latency and last-mile network quality issues for AI voice interactions [4] Financial Projections - Revenue is projected to be $136 2 million in 2024 (yoy -3 8%), $147 7 million in 2025 (yoy +8 4%), and $165 9 million in 2026 (yoy +12 3%) [6] - Net income is expected to improve from -$32 6 million in 2024 to -$10 4 million in 2026, with Non-GAAP net income turning positive at $4 0 million in 2026 [6] - The price-to-sales (PS) ratio is forecasted to decline from 2 0 in 2024 to 1 6 in 2026, reflecting potential valuation improvements [8] Market Position and Competitive Landscape - Agora is positioned as a professional third-party RTC service provider, leveraging its Software-Defined Real-Time Network (SD-RTN) to offer low-latency, high-coverage, and high-availability services across 200+ countries and regions [4] - Compared to competitors like Twilio and LiveKit, Agora focuses on internet-based real-time audio communication, while Twilio primarily serves AI applications and telecom networks, and LiveKit offers open-source solutions requiring developer customization [4] Pricing and Usage - OpenAI charges $100 per 1 million audio input tokens and $200 per 1 million audio output tokens, translating to approximately $60 per 1,000 minutes for audio input and $240 per 1,000 minutes for audio output [4] - Agora charges $0 99 per 1,000 minutes, with no revenue sharing between Agora and OpenAI [4] - Due to the relatively high cost of Realtime API, its application is expected to be limited to high-value scenarios like customer service, education, and emotional companionship in the short term [4]