Agora(US:API)2024-11-26 11:03Revenue 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]