Agora(US:API)2022-11-21 16:00Financial Performance - Total revenues for Q3 2022 were $41.0 million, a decrease of 9.0% from $45.0 million in Q3 2021[2] - Net loss for the quarter was $27.7 million, compared to a net loss of $21.1 million in Q3 2021[3] - Non-GAAP net loss for the quarter was $17.6 million, compared to a non-GAAP net loss of $11.4 million in Q3 2021[3] - Adjusted EBITDA for the quarter was negative $16.4 million, compared to negative $9.1 million in Q3 2021[3] - Total revenues for the three months ended September 30, 2022, were $40,988 thousand, a decrease of 9.3% from $45,038 thousand in the same period of 2021[27] - Real-time engagement service revenues decreased to $38,860 thousand, down 8.5% from $42,390 thousand year-over-year[27] - Gross profit for the three months ended September 30, 2022, was $24,349 thousand, representing a gross margin of 59.5% compared to 65.2% in the same period of 2021[27] - Net loss for the three months ended September 30, 2022, was $27,699 thousand, compared to a net loss of $21,095 thousand in the same period of 2021, reflecting a 31.2% increase in losses[27] - GAAP net loss for the three months ended September 30, 2022, was $(27,699) million, compared to $(21,095) million in the same period of 2021, representing a 31.2% increase in losses year-over-year[35] Customer Metrics - Active Customers as of September 30, 2022, were 2,987, an increase of 16.5% from 2,564 as of September 30, 2021[2] Cash and Investments - Total cash, cash equivalents, and short-term investments as of September 30, 2022, was $483.4 million[3] - Cash and cash equivalents decreased to $30,973 thousand as of September 30, 2022, down from $219,405 thousand at the end of the previous year[33] - Total assets decreased to $835,738 thousand as of September 30, 2022, from $944,999 thousand as of December 31, 2021, indicating a decline of 11.5%[25] - The company reported a net cash used in operating activities of $159,340 thousand for the nine months ended September 30, 2022[31] Operating Expenses - Operating expenses were $55.6 million, an increase of 10.4% from $50.4 million in Q3 2021[7] - Operating expenses increased to $55,635 thousand, up 10.4% from $50,398 thousand in the prior year, driven by higher research and development and sales and marketing costs[27] - Research and development expenses were $29.8 million, a slight increase of 0.3% from $29.7 million in Q3 2021[7] - Research and development expenses for the three months ended September 30, 2022, were $29,771 thousand, slightly up from $29,668 thousand in the same period of 2021[27] Future Projections - The company expects total revenues for the fiscal year ending December 31, 2022, to be between $160 million and $162 million[11] Shareholder Actions - The company repurchased approximately 3.5 million Class A ordinary shares for approximately $3.5 million during the quarter[10] Cash Flow Analysis - Net cash used in operating activities for the three months ended September 30, 2022, was $(8,833) million, an improvement from $(13,982) million in the same period of 2021, showing a 36.8% reduction in cash burn[35] - Net cash used in investing activities for the nine months ended September 30, 2022, was $(182,545) million, compared to $(118,898) million in 2021, indicating a 53.4% increase in cash outflow for investments[35] - Net cash provided by financing activities for the three months ended September 30, 2022, was $(2,992) million, a decline from $382 million in the same period of 2021, reflecting a significant shift in financing cash flow[35] Other Financial Metrics - Free Cash Flow for the nine months ended September 30, 2022, was $(51,198) million, compared to $(35,131) million in 2021, marking a 45.7% increase in cash outflow[35] - Non-GAAP net loss for the nine months ended September 30, 2022, was $(55,346) million, significantly higher than $(21,591) million in 2021, indicating a 156.5% increase in losses[35] - Adjusted EBITDA for the three months ended September 30, 2022, was $(16,399) million, worsening from $(9,103) million in the same period of 2021, reflecting a 80.5% increase in negative EBITDA[35] - Share-based compensation expense for the three months ended September 30, 2022, was $7,230 million, down from $8,530 million in 2021, representing a 15.2% decrease[35] - Acquisition-related expenses for the nine months ended September 30, 2022, were $749 million, a substantial decrease from $5,355 million in 2021, indicating a 86.0% reduction in acquisition costs[35] - Interest income for the three months ended September 30, 2022, was $2,490 million, an increase from $2,154 million in the same period of 2021, reflecting a 15.6% growth in interest earnings[35]