Agora(US:API) Dongxing Securities·2024-05-30 06:01Investment Rating - The report maintains a "Buy" rating for Agora (API.NASDAQ) [1] Core Insights - In Q1 2024, Agora reported revenue of $33 million, a year-over-year decrease of 9.4% and a quarter-over-quarter decrease of 8.4%. The net loss was $9.46 million, with a Non-GAAP net loss of $4.8 million [1][2] - The decline in overall revenue is attributed to a decrease in domestic usage during the Spring Festival and regulatory pressures in the live streaming industry, while overseas revenue showed growth due to emerging market dynamics [2] - The company is focusing on expanding its real-time audio and video solutions, including adaptive video optimization technology and new applications in sports and AI [3] Financial Summary - Revenue projections for 2024-2026 are $142.5 million (0.7% growth), $162.5 million (14.0% growth), and $185.8 million (14.3% growth) respectively. Expected net losses are projected at $34.1 million, $33.5 million, and $31.3 million for the same periods [6][7] - Gross margin for Q1 2024 was 61.2%, down 1.4 percentage points year-over-year, primarily due to reduced customer usage [2] - The company has effectively managed costs, with R&D expenses at $18.14 million (54.9% of revenue), sales expenses at $6.81 million (20.6%), and management expenses at $8.38 million (25.4%) [2] Market Position and Future Outlook - Agora's overseas business is expected to grow rapidly in 2024, driven by new applications in live streaming e-commerce and AI [2] - The company has launched several solutions targeting real-time audio and video applications, enhancing user engagement and experience [3] - The report anticipates a recovery in growth trends from 2024 to 2026, supported by the expansion of real-time audio and video scenarios and global market strategies [3]