Agora, Inc. Reports Third Quarter 2024 Financial Results

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].