• Agora: 1,723 as of December 31, 2024, an increase of 2.4% from 1,683 as of December 31, 2023. • Shengwang: 1,979 as of December 31, 2024, excluding those for Easemob, an increase of 7.8% from 1,835 as of December 31, 2023. • Dollar-Based Net Retention Rate • Agora: 95% for the trailing 12-month period ended December 31, 2024. • Shengwang: 79% for the trailing 12-month period ended December 31, 2024. Fiscal Year 2024 Highlights Fourth Quarter 2024 Financial Results Agora, Inc. Reports Fourth Quarter and Fi ...

实现GAAP口径盈利的难度相较Non-GAAP口径更高。 本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，声网母公司Agora, Inc. (NASDAQ: API) 于北京时间2月25日公布了2024年Q4 及全年财报。 财报显示，第四季度 Agora, Inc. 实现总营收3445万美元，同比增长（不含已终止的低毛利业务） 3.6%。 2025年Q1收入指引同比增速 （ 不含已终止的低毛利业务] ） 4.4-11.1%，较2024年Q4 收入增速加快 。 在美国通用会计准则（GAAP）下， Agora, Inc. 第四季度净利润为16万美元，同比扭亏为盈。对 此，Agora, Inc. 创始人兼CEO赵斌表示，"我们很高兴地宣布，得益于新应用场景带来的收入增长 以及有效的成本管控，2024年第四季度公司在美国通用会计准则（GAAP）口径下实现盈利。展望 2025年，我们将继续聚焦于提升运营效率，推动可持续且盈利的业务增长。" 生成式人工智能正在带来变革性机遇，尤其是在人类与 AI 模型实时语音交互领域。本季度，声网发 布对话式 AI 引擎 Bet ...

Core Insights - Agora, Inc. achieved GAAP profitability in Q4 2024, driven by revenue growth and disciplined cost management, with a focus on enhancing operational efficiency for sustainable growth [2][5][12] - The company launched a Conversational AI Engine aimed at improving real-time voice interactions, which is expected to accelerate the adoption of conversational AI across various industries [2] Fourth Quarter 2024 Highlights - Total revenues for Q4 2024 were $34.5 million, a decrease of 4.4% from $36.0 million in Q4 2023 [5][6] - Agora's revenue was $17.4 million, an increase of 13.7% from $15.3 million in Q4 2023, attributed to business expansion in sectors like live shopping [5][6] - Shengwang's revenue was RMB122.2 million ($17.1 million), a decrease of 17.6% from RMB148.3 million ($20.7 million) in Q4 2023 [5][6] - Active customers for Agora increased by 2.4% to 1,723 as of December 31, 2024 [5] - Dollar-Based Net Retention Rate for Agora was 95% for the trailing 12-month period [5] Fiscal Year 2024 Highlights - Total revenues for 2024 were $133.3 million, a decrease of 5.9% from $141.5 million in 2023 [5][14] - Agora's revenue increased by 5.7% to $64.5 million in 2024, while Shengwang's revenue decreased by 13.7% to RMB489.6 million ($68.8 million) [5][14] - Net loss for 2024 was $42.7 million, significantly improved from a loss of $87.2 million in 2023 [5][24] - Free cash flow for 2024 was negative $16.7 million, compared to negative $14.5 million in 2023 [5] Financial Metrics - Gross profit for Q4 2024 was $22.9 million, an increase of 1.2% from $22.7 million in Q4 2023, with a gross margin of 66.6% [8][12] - Operating expenses in Q4 2024 were $28.5 million, a decrease of 8.8% from $31.2 million in Q4 2023 [9][12] - Net cash provided by operating activities for Q4 2024 was $4.5 million, compared to $3.7 million in Q4 2023 [5][12] Share Repurchase Program - The company repurchased approximately 1.3 million Class A ordinary shares for about $1.4 million in Q4 2024, representing 0.7% of its $200 million share repurchase program [27][28] - As of December 31, 2024, the company had repurchased approximately 130.6 million Class A ordinary shares for about $115.2 million, representing 57.6% of its share repurchase program [28][29] Financial Outlook - The company expects total revenues for Q1 2025 to be between $31 million and $33 million, compared to $29.7 million in Q1 2024, excluding revenues from certain end-of-sale low-margin products [30]

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]