Group 1 - The article discusses the allure of underdog stories in investing, highlighting the excitement and romanticism associated with them [1] - It raises skepticism about the viability of investing in underdog companies, questioning whether they can truly deliver on their potential [1] Group 2 - The article does not provide specific financial data or performance metrics related to any companies or industries [2]

Core Insights - Agora partners with WIZ.AI to deliver enterprise-grade AI agent solutions that provide multilingual support and contextual understanding for call centers [1][2] - The collaboration combines WIZ.AI's expertise in enterprise AI agents with Agora's real-time infrastructure and multimodal conversational AI capabilities [2][4] Company Overview - Agora is a leader in real-time engagement and conversational AI technology, providing APIs for voice, video, and interactive live streaming [5] - WIZ.AI specializes in Voice AI, focusing on automating and personalizing customer engagement across various sectors [6] Partnership Details - The partnership aims to create intelligent, scalable, and multilingual AI agent solutions that enhance customer service experiences [4] - Agora's ultra-low latency infrastructure complements WIZ.AI's advanced AI agents, enabling natural conversations and enterprise-level service [4] Product Features - The AI agents will support inbound customer service, outbound campaigns, real-time QA and analytics, and AI training and e-learning [8] - Agora's Conversational AI Engine allows developers to create lifelike voice agents that can operate effectively even in challenging network conditions [4][3]

Core Viewpoint - Agora Inc. is experiencing a potential recovery driven by new demand for real-time engagement technology, particularly in the education sector with AI-powered tools [2][5][7]. Financial Performance - The company reported a net profit of $400,000 for the quarter, marking only the second profitable quarter since 2021 [3][17]. - Revenue grew modestly by 0.8% year-on-year to $33.3 million, indicating a turnaround after four years of decline [3][11]. - Gross margin improved to 68.0%, up from 61.2% a year earlier, following the exit from lower-margin businesses [4][16]. Market Dynamics - The education sector, previously a source of decline due to regulatory crackdowns, is now contributing to Agora's recovery through AI-driven virtual tutoring solutions [5][7]. - The company's service for the rest of the world, known as Agora, saw an 18% year-on-year revenue increase to $18.6 million, while Shengwang, its China-based service, contracted by 14% to $14.7 million [13][14]. Customer Metrics - Shengwang reported a 5.2% increase in active customers, reversing previous declines, with a customer retention rate of 85% [15]. - The Agora service maintains a higher customer loyalty with retention rates above 90% [15]. Future Outlook - The company forecasts second-quarter revenue between $33 million and $35 million, potentially extending its growth streak [12]. - Agora's stock has nearly doubled since last September, reflecting a broader rally in U.S. and Hong Kong-listed Chinese stocks [10].

Financial Data and Key Metrics Changes - Total revenue for Q1 reached $33.3 million, up 12% year over year, excluding revenues from certain low-margin products, indicating a recovery in business momentum [3][11] - GAAP net profit for the quarter was $400,000, representing a 1.2% net income margin, a significant turnaround from a net loss margin of 28.7% in Q1 last year [16][17] - Operating cash flow was $17.6 million in Q1 compared to negative $6.5 million last year, reflecting improved financial health [17] Business Line Data and Key Metrics Changes - Core revenues reached $18.6 million in Q1, growing 17.7% year over year, driven by market expansion in high-potential verticals like live shopping and entertainment [12] - Shunlong revenues were RMB 105.5 million in Q1, with a year-over-year growth of 6.7%, although it declined 13.7% sequentially due to seasonal factors [12][13] - The net retention rate improved to 96% for Agora and 85% for Shunlong, indicating better customer retention [13] Market Data and Key Metrics Changes - The growth rate in the U.S. and global markets is around 18% to 20%, with increasing adoption of live video-based shopping and entertainment apps, particularly in North America and Europe [28][30] - Demand recovery is noted in Asian markets, including India, for both education and entertainment use cases [30] Company Strategy and Development Direction - The company is focusing on conversational AI, particularly in education, IoT, and customer service sectors, which are seen as key growth drivers [25][26] - The strategy includes maximizing penetration in live commerce and improving video quality for better customer experiences [35] - The company aims to maintain profitability while investing in future growth opportunities, including share repurchase programs [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining GAAP profitability for the remainder of the year, supported by current business momentum [4][17] - The competitive landscape in China is consolidating, with fewer players remaining, which may enhance the company's market position [46][48] Other Important Information - The company launched a Conversational AI Device Kit, enabling manufacturers to integrate conversational AI into IoT devices, which could reduce R&D costs and time to market [7] - The open-source project for building real-time conversational AI agents is gaining traction, with significant support from leading cloud providers [8] Q&A Session Summary Question: What are the key areas for AI application? - Management highlighted education, IoT, and customer service as the most active use cases for AI applications [25][26] Question: What is the demand trend for China and overseas business? - Management noted a solid demand recovery in the U.S. and global markets, with stable pricing trends in developed markets [28][30] Question: What is the strategy for overseas e-commerce platforms? - The company is focusing on maximizing penetration in live commerce and improving video quality for better user experiences [35] Question: What is the timing for massive adoption of conversational AI? - Management indicated that the tipping point for adoption will depend on the maturity of product-market fit across various verticals [40][42] Question: How is the competitive landscape in China affecting pricing trends? - The competitive landscape is consolidating, with fewer players, and the company is focusing on higher value use cases to maintain margins [46][49]

Financial Data and Key Metrics Changes - Total revenue in Q1 2025 reached $33.3 million, up 12% year over year, excluding revenues from certain low-margin products [3][11] - GAAP net profit for the quarter more than doubled from the previous quarter, marking the second consecutive quarter of GAAP profitability [4][15] - Operating cash flow was $17.6 million in Q1, compared to negative $6.5 million last year [16] - Gross margin for Q1 was 68%, with an increase of 0.6% year over year and 1.4% quarter over quarter [13] Business Line Data and Key Metrics Changes - Core revenues reached $18.6 million in Q1, growing 17.7% year over year [12] - Shunlong revenues were RMB 105.5 million in Q1, with a year-over-year growth of 6.7% [12] - The base net retention rate improved to 96% for Agora and 85% for Shunlong [12] Market Data and Key Metrics Changes - Growth rate in the US and global markets is around 18% to 20%, with increasing adoption of live video-based shopping and entertainment apps, particularly in North America and Europe [26][28] - Demand recovery is observed in Asian markets, including India, for both education and entertainment use cases [28] Company Strategy and Development Direction - The company is focusing on conversational AI, particularly in education, IoT, and customer service sectors [24][25] - The launch of the Conversational AI Device Kit aims to enable device manufacturers to integrate conversational AI into various IoT devices [7] - The company is committed to maintaining profitability while investing in future growth opportunities through share repurchase programs [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining GAAP profitability throughout 2025, supported by current business momentum [4][16] - The company anticipates a revenue range of $33 million to $35 million for Q2 2025, reflecting a year-over-year growth rate of 6.8% to 13.3% [18] Other Important Information - The conversational AI engine launched in March is expected to unlock innovation across multiple verticals, particularly in education [6] - The company has seen record-high product registrations and inquiries following recent product launches [9] Q&A Session Summary Question: AI demand and future growth drivers - Management highlighted key use cases for AI applications, including education, IoT, and customer service [24][25] Question: Breakdown of China and overseas business demand trends - Management noted a growth rate of about 18% in the US and global markets, with demand recovery in Asian markets [26][28] Question: Overseas e-commerce business strategy - Management discussed ongoing efforts to penetrate the live commerce space and improve video quality for better customer experience [33] Question: Shifts in downstream demand for AI-powered interaction capabilities - Management emphasized the importance of product market fit for various verticals to achieve growth [40][41] Question: Timing for massive adoption of conversational AI - Management indicated that the tipping point for adoption will depend on the maturity of product market fit across different use cases [40][41] Question: Competitive landscape in China and pricing trends - Management acknowledged the competitive nature of the Chinese market but noted a trend towards consolidation among major players [44][46]

Core Viewpoint - Agora, Inc. is actively expanding into high-potential areas such as conversational AI, demonstrating significant revenue growth and profitability in its recent financial results [2][3]. Financial Performance - In Q1 2025, Agora, Inc. reported total revenue of $33.27 million, representing a year-over-year increase of 12.1%, with a notable acceleration from the previous quarter's growth of 3.6% [2]. - The company achieved a net profit of $410,000 under GAAP, marking its second consecutive quarter of profitability after returning to profit in Q4 2024 [2]. Cash Reserves - As of March 31, 2025, Agora, Inc. had cash and cash equivalents totaling $388 million, which supports its strategic investments in high-potential fields, particularly conversational AI [2]. Customer Base - As of March 31, 2025, Agora had 1,994 active customers, reflecting a year-over-year growth of 5.2% [4]. Product Innovation - Agora launched its conversational AI engine and development kit, enabling developers to create real-time voice interaction experiences with minimal coding requirements [6]. - The conversational AI engine can upgrade any text-based large model into a conversational multimodal model with just two lines of code and within 15 minutes, significantly lowering the development barrier [6]. User Experience - The conversational AI engine boasts a median voice interaction latency of just 650 ms, with an intelligent interruption feature that allows for natural conversation flow [8]. - It includes a "selective attention lock" feature that can filter out 95% of background noise, ensuring clear voice recognition [9]. Application Scenarios - The conversational AI capabilities are being applied across various sectors, including smart assistants, virtual companionship, language practice, and customer service [13]. - Specific use cases include educational tools that enhance real-time interaction for students and AI companions that provide emotional support [15][17]. Development Support - Agora has made its conversational AI development kit fully open-source, providing developers with comprehensive resources to integrate AI capabilities into their hardware [11]. - The development process is streamlined, allowing developers to create prototypes quickly and efficiently [11].

Business Highlights - Agora launched a Conversational AI Engine, an enterprise-grade solution for human-AI voice experiences[5] - The company offers a ConvoAI Device Kit, a turnkey solution for adding voice AI to any device, combining software, cloud services, and chips from Beken[8, 10] - TEN (a voice activities detection) continues gaining traction and adds VAD and Turn Detection, outperforming existing open-source alternatives[11, 14] - Agora's Conversational AI Extension is available on the Dify Marketplace[15] Customer Base & Revenue - Agora had 3,800 active customers in March 2025, including 1,994 Agora customers and 1,806 Shengwang customers[35] - Total revenues for Q1 2025 were $33.3 million, with a year-over-year growth of 12.1%[39] - Agora revenues in Q1 2025 were $18.6 million[42] - Shengwang revenues in Q1 2025 were ¥105.5 million, equivalent to $14.7 million[43] Financial Performance - The dollar-based net retention rate for Agora was 96% and for Shengwang was 85% in March 2025[46] - Gross profit for Q1 2025 was $22.6 million, resulting in a gross margin of 68.0%[50] - Loss from operations in Q1 2025 was $3.7 million, representing a loss from operations margin of (11.1%) [57] Share Repurchase Program - As of March 31, 2025, Agora repurchased 33.0 million ADSs for approximately $116.4 million, representing 58% of the $200 million share repurchase program[63]

Core Viewpoint - Agora, Inc. reported its second consecutive quarter of GAAP profitability in Q1 2025, driven by disciplined cost management and double-digit revenue growth year-over-year, excluding certain end-of-sale products [2][4]. Financial Performance - Total revenues for Q1 2025 were $33.3 million, a 0.8% increase from $33.0 million in Q1 2024 [4]. - Agora's revenues were $18.6 million, up 17.7% from $15.8 million in the same period last year, attributed to business expansion and growth in sectors like live shopping [4]. - Shengwang's revenues were RMB105.5 million ($14.7 million), down 13.9% from RMB122.6 million ($17.2 million) in Q1 2024, mainly due to a decline in revenues from certain end-of-sale products [4]. Cost Management - Cost of revenues decreased to $10.6 million, down 16.9% from $12.8 million in Q1 2024, primarily due to the end-of-sale of certain products [5]. - Gross profit increased to $22.6 million, an 11.9% rise from $20.2 million in the same period last year, with a gross margin of 68.0%, up 6.8% from 61.2% [6]. Operating Expenses - Operating expenses were $26.5 million, a decrease of 20.5% from $33.3 million in Q1 2024 [7]. - Research and development expenses were $14.0 million, down 22.7% from $18.1 million in the same period last year [17]. - Sales and marketing expenses decreased to $6.2 million, an 8.5% reduction from $6.8 million [17]. - General and administrative expenses were $6.2 million, down 25.6% from $8.4 million [17]. Profitability Metrics - Net income for Q1 2025 was $0.4 million, compared to a net loss of $9.5 million in Q1 2024 [11]. - Loss from operations was $3.7 million, improved from a loss of $12.6 million in the same period last year [9]. Cash Flow and Financial Position - Total cash, cash equivalents, and financial products as of March 31, 2025, amounted to $388.0 million [4]. - Net cash provided by operating activities was $17.6 million, compared to a net cash used of $6.5 million in Q1 2024 [4]. Share Repurchase Program - The company repurchased approximately 1.2 million Class A ordinary shares for about $1.2 million during Q1 2025, representing 0.6% of its $200 million share repurchase program [13]. - As of March 31, 2025, the company had repurchased approximately 131.8 million Class A ordinary shares for about $116.4 million, representing 58.2% of its share repurchase program [14]. Future Outlook - The company expects total revenues for Q2 2025 to be between $33 million and $35 million, compared to $30.9 million in Q2 2024, excluding revenues from certain end-of-sale low-margin products [16].

Core Viewpoint - Agora, Inc. is set to release its financial results for Q1 2025 on May 27, 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 technology, providing a Platform-as-a-Service (PaaS) that enables developers to integrate real-time conversational AI, video, voice, chat, and interactive streaming into applications [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]. Conference Call Details - The conference call for discussing the financial results will take place at 6 p.m. Pacific Time / 9 p.m. Eastern Time on May 27, 2025 [1]. - Investors are encouraged to log in at least 15 minutes prior to the broadcast and can register for the call through a provided link [1][2].

Currency Risk Management - The company does not hedge against currency risk, which may lead to fluctuations in revenue-generating transactions and expenses [653]. - A 10% depreciation of Renminbi against the U.S. dollar would result in a change of the company's holding U.S. dollar equivalents of US$1.6 million for cash and cash equivalents [656]. - The company has not engaged in any foreign currency transactions that would require it to obtain the most favorable exchange rates, which may lead to potential losses [665]. Cash and Cash Equivalents - The company had Renminbi-denominated cash and cash equivalents of RMB123.0 million as of December 31, 2024 [656]. - The company does not expect significant changes in the fair value of cash and short-term investments due to interest rate fluctuations [657]. Accounts Receivable Management - The company regularly updates its allowance estimates for accounts receivable based on various factors, including historical collection trends and current economic conditions [486]. - Changes in estimates and assumptions regarding accounts receivable could materially affect the financial statements [486]. - The company assesses expected credit losses based on various factors, including the age of accounts receivable balances and customer risk characteristics [484]. - The company has not deemed certain accounting estimates as critical, although they could still have a material impact on financial results [483]. ADS Program Costs - The company received reimbursement of US$0.8 million from the depositary for costs and expenses related to the establishment and maintenance of the ADS program for the year ended December 31, 2024 [666].