Agora(US:API) Dongxing Securities·2024-03-06 16:00Investment Rating - The report maintains a "Recommendation" rating for Agora (API.NASDAQ) [1] Core Views - The company achieved a revenue of 36 million USD in Q4 2023, a year-on-year decrease of 10.2% but a quarter-on-quarter increase of 2.9% [2] - The net loss for the quarter was 2.61 million USD, while the Non-GAAP net profit was 1.4 million USD [2] - The overall revenue decline in Q4 2023 is expected to be offset by accelerated growth in the second half of 2024 due to domestic digital business and overseas live e-commerce development [2] - Cost reduction and efficiency improvement measures have shown significant results, with expectations of achieving breakeven in 2024 [2] - The overseas market has become the main growth driver for the company, with competitors like Twilio exiting the cloud video communication segment, allowing Agora to expand its market share [2][3] Financial Summary - In Q4 2023, Agora's overseas revenue was 15.3 million USD, a decrease of 3.16% year-on-year, primarily due to a slowdown in emerging markets and reduced global venture capital [2] - The company's domestic revenue was 20.7 million USD, reflecting a stable decline of 10.39% year-on-year [2] - The gross margin for Q4 2023 was 62.9%, with a decrease of 1.1 percentage points from the previous quarter [2] - Research and development expenses were 16.31 million USD, accounting for 45.3% of revenue, a decrease of 7.7 percentage points year-on-year [2] - Sales and management expenses also saw reductions, contributing to an overall decrease in the expense ratio [2] Revenue Forecast - The company forecasts revenues of 146.8 million USD in 2024, with a growth rate of 3.7%, followed by 172.0 million USD in 2025 and 205.5 million USD in 2026, with respective growth rates of 17.2% and 19.4% [3][4] - The projected net losses for the next three years are -11.0 million USD in 2024, -2.5 million USD in 2025, and -2.2 million USD in 2026 [3][4]