Agora, Inc. Reports First Quarter 2024 Financial Results

Core Viewpoint - Agora, Inc. reported its first quarter 2024 financial results, highlighting a focus on product performance improvements despite a challenging operating environment. The company anticipates that advancements in real-time engagement technology will align with the growing use of generative AI models in voice and video interactions [1]. Financial Performance - Total revenues for Q1 2024 were $33.0 million, a decrease of 9.4% from $36.4 million in Q1 2023 [2][3]. - Agora's revenue was $15.8 million, an increase of 4.6% from $15.1 million in Q1 2023, driven by business expansion and growth in sectors like live shopping [2][3]. - Shengwang's revenue was RMB122.6 million ($17.2 million), a decrease of 16.0% from RMB145.9 million ($21.3 million) in Q1 2023, attributed to a challenging macroeconomic and regulatory environment [2][3]. Customer Metrics - Active customers for Agora increased to 1,720 as of March 31, 2024, up 16.1% from 1,481 a year earlier [2]. - Shengwang had 3,833 active customers, a decrease of 2.2% from 3,919 as of March 31, 2023 [2]. Profitability and Loss - The net loss for Q1 2024 was $9.5 million, compared to a net loss of $16.8 million in Q1 2023 [2][10]. - Non-GAAP net loss for the quarter was $4.8 million, compared to a non-GAAP net loss of $9.1 million in Q1 2023 [2][10]. - Adjusted EBITDA for the quarter was negative $6.1 million, an improvement from negative $6.4 million in Q1 2023 [2][10]. Cash Flow and Liquidity - Total cash, cash equivalents, and financial products as of March 31, 2024, amounted to $380.8 million [2]. - Net cash used in operating activities for the quarter was $6.5 million, down from $8.9 million in Q1 2023 [2]. - Free cash flow for the quarter was negative $7.1 million, an improvement from negative $9.1 million in Q1 2023 [2]. Share Repurchase Program - During Q1 2024, the company repurchased approximately 4.8 million Class A ordinary shares for about $3.2 million, representing 1.6% of its $200 million share repurchase program [11]. - As of March 31, 2024, the company had repurchased approximately 118.6 million Class A ordinary shares for about $107.5 million, representing 54% of its share repurchase program [11]. Financial Outlook - The company expects total revenues for Q2 2024 to be between $34 million and $36 million, reflecting current market and operational conditions [12].