Agora, Inc. Reports First Quarter 2024 Financial Results SANTA CLARA, Calif., May 22, 2024 (GLOBE NEWSWIRE) – Agora, Inc. (NASDAQ: API) (the "Company"), a pioneer and leader in real-time engagement technology, today announced its unaudited financial results for the first quarter ended March 31, 2024. "Despite a challenging operating environment, we continued to focus on enhancing the fundamental performance of our products, for example, launching our new Adaptive Video Optimization technology and improving ...

Agora, Inc. (NASDAQ:API) Q1 2024 Results Conference Call May 22, 2024 9:00 PM ET Company Participants Tony Zhao - Founder, Chairman and CEO Jingbo Wang - CFO Conference Call Participants Yang Liu - Morgan Stanley Daley Li - Bank of America Securities Operator Good day and thank you for standing by. Welcome to Agora, Inc.'s First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. The company's earnings results, press release, e ...

VIE Structure and Regulatory Risks - In 2021, 2022, and 2023, revenues generated by the VIEs accounted for 68.2%, 53.3%, and 56.7% of total revenues, respectively[17]. - The contractual arrangements with the VIE have not been tested in court in China, posing risks to the enforceability of these agreements[17]. - The company has controlling financial interest over Zhaoyan through a series of contractual arrangements, allowing it to direct Zhaoyan's activities and receive economic benefits[20]. - The company does not hold any equity interests in Zhaoyan, which is owned by nominee shareholders, increasing risks related to enforcement of contractual rights[21]. - The company has maintained a VIE structure to comply with Chinese regulations on foreign investment in telecommunications[15]. - The legal counsel has indicated that the ownership structures do not violate current PRC laws, but uncertainties remain regarding future interpretations[30]. - The company faces significant uncertainty regarding potential future actions by the Chinese government that could affect the legality of its corporate structure[17]. - The company may face administrative penalties if it fails to obtain or maintain necessary licenses and approvals from PRC regulators[36]. - The M&A Rules create substantial uncertainty regarding the need for CSRC approval for offshore special purpose vehicles, which could impact the company's operations[34]. - PRC subsidiaries are required to set aside at least 10% of after-tax profits for statutory reserves, potentially limiting dividend payments to Agora, Inc.[66]. - The ability to pay dividends is contingent on the distributable profits of PRC subsidiaries, which may not be sufficient in the near future[66]. - The PCAOB's ability to conduct inspections of auditors in China is uncertain, which could affect the trading of Agora's ADSs in the U.S.[70]. - If the PCAOB cannot inspect auditors for two consecutive years, Agora's ADSs may be prohibited from trading on U.S. exchanges[69]. - The company faces potential penalties if its contractual arrangements do not comply with PRC regulatory restrictions on foreign investment[213]. Financial Performance and Position - As of December 31, 2023, Agora, Inc. had made cumulative capital contributions of US$259.0 million to its PRC subsidiary[39]. - The VIEs transferred US$48.6 million, US$24.4 million, and US$38.6 million to the PRC subsidiaries as payment of service fees in 2023, 2022, and 2021 respectively[41]. - The aggregated payment of service fees from the VIEs to the PRC subsidiaries amounted to US$217.9 million as of December 31, 2023, up from US$169.3 million in 2022[40]. - The outstanding balance of service fees owed by the VIEs to the PRC subsidiaries decreased from US$41.8 million in 2022 to US$26.1 million in 2023[40]. - The company has not declared or paid any cash dividends and intends to retain most of its available funds for business operations and expansion[42]. - The company has not made any loans to the VIEs in 2021, 2022, and 2023, with the VIEs funding their operations primarily through cash generated from activities[37]. - Total third-party revenues for the year ended December 31, 2022, were $160.67 million, an increase from $141.54 million in 2021, representing a growth of approximately 13.5%[49][50]. - The net loss for the year ended December 31, 2022, was $120.38 million, compared to a net loss of $87.22 million in 2021, indicating a decline of approximately 37.9%[49][50]. - Total current assets as of December 31, 2023, amounted to $261.43 million, with cash and cash equivalents at $36.89 million[54]. - The company reported a loss before income tax expenses of $119.72 million for the year ended December 31, 2022, compared to a loss of $86.80 million in 2021, reflecting an increase of approximately 37.9%[49][50]. - Total liabilities as of December 31, 2023, were $69.85 million, with total shareholders' equity at $604.75 million[54]. - The total assets as of December 31, 2023, were $674.60 million, with non-current assets amounting to $413.17 million[54]. - The company incurred other costs and expenses totaling $268.19 million for the year ended December 31, 2022[49]. - The company experienced a foreign currency translation gain of $94 thousand during the fiscal year[59]. - The company recorded a total of $94,159 thousand in long-term investments, with $39,000 thousand in Agora, Inc. and $46,659 thousand in other subsidiaries[56]. - The total amount of cash paid for services from group companies was $(48,587) thousand, while sales of services amounted to $24,636 thousand[61]. Operational Challenges and Market Conditions - The company faces significant risks in expanding its international operations, including regulatory compliance, currency fluctuations, and political instability[103]. - The RTE-PaaS market is at an early stage, with considerable uncertainty regarding its growth and the adoption of the company's platform[92]. - The company must attract new customers cost-effectively and retain existing customers to increase usage of its products, which is critical for revenue generation[93]. - Competition in the RTE-PaaS market is expected to intensify, with larger vendors potentially entering the market and offering competing products[98]. - The company has encountered a history of operating and net losses, making it difficult to evaluate its current business and future prospects[109]. - The company relies on developers to choose and promote its platform, and failure to maintain their acceptance could harm the business[102]. - The company must continuously adapt its products to evolving technologies and customer needs to remain competitive in the market[112]. - The company generated a substantial portion of its revenues from a limited number of customers, indicating a dependency that could impact future revenue stability[127]. - The company faces significant compliance costs and potential liabilities due to evolving privacy and data protection regulations, including the GDPR and CCPA, which may increase operational expenses[118]. - The introduction of the California Privacy Rights Act (CPRA) in 2023 has expanded consumer rights and may lead to increased compliance costs for the company[118]. - The company must manage its suppliers and contractors effectively to ensure compliance with data protection laws, as failures could result in liability[123]. - The company's operating results may fluctuate significantly due to various factors, including customer retention and market acceptance of its products[125]. - The complexity of sales cycles for larger organizations may lead to higher costs and longer sales processes, impacting revenue generation[132]. - The company relies on strategic relationships with third-party sales partners to drive substantial revenues, and failure to establish these could adversely affect financial results[134]. - The company’s ability to recruit and retain skilled sales personnel is critical for achieving significant revenue growth[133]. - The company’s business reputation and customer support quality are vital for maintaining customer relationships and overall financial health[139]. - The company faces potential risks from deteriorating China-U.S. relations, which could impact its operations and market perception[141]. Investment and Financial Strategy - The company has a tax planning strategy in place to mitigate potential double taxation risks associated with VIE earnings[46]. - The likelihood of incurring double taxation due to stranded cash in the VIE is considered remote by management[46]. - The company may require additional capital for product development and international expansion, which could lead to shareholder dilution if raised through equity financing[197]. - Currency exchange rate fluctuations could adversely affect the company's operating results, particularly as it conducts business in multiple currencies[199]. - Significant fluctuations in the Renminbi against the U.S. dollar could impact the company's financial condition and dividend payments[200]. - The company may pursue acquisitions or investments in businesses, technologies, and products, which could divert management's attention and incur debt or shareholder dilution[152]. - Integration of acquired businesses may face challenges, including retaining key personnel and adapting products to the company's platform, potentially disrupting operations[154]. Legal and Compliance Risks - The company faces various legal and operational risks due to its business operations in multiple jurisdictions, including the U.S. and China[74]. - Changes in PRC government policies could adversely impact the company's operations and the value of its ADSs[82]. - The company is subject to FCC regulations which may impose product design and compliance obligations, potentially affecting its ability to operate and sell products[179]. - The company offers products in over 100 countries, exposing it to various international telecommunications laws and regulations[180]. - International operations may face increased costs and regulatory challenges, particularly in countries where IP communications are restricted or illegal[181]. - The company must comply with U.S. export controls and economic sanctions, which could impact its market competitiveness and result in penalties for non-compliance[183]. - Encryption technology in products may face import and export regulations, potentially harming international sales and revenues[185]. - The company is subject to complex tax regulations across multiple jurisdictions, which could lead to additional tax liabilities and affect financial results[190]. - Negative publicity and regulatory investigations could harm the company's reputation and market share[195]. - The company has not recorded any contingent liabilities related to pending litigation for the years 2021, 2022, and 2023, but future estimates may be inaccurate due to uncertainties[212]. - Legal or administrative proceedings against the company or its management could harm reputation and user base, distracting from daily operations[211]. Internal Controls and Reporting - The company must maintain effective internal control over financial reporting as per the Sarbanes-Oxley Act, with independent testing required to confirm effectiveness[203]. - As of December 31, 2023, the company's internal control over financial reporting was deemed effective by management and an independent registered public accounting firm[203]. - Failure to maintain effective internal controls could lead to material misstatements in financial statements and loss of investor confidence, potentially affecting the market price of the company's ADSs[205]. Cybersecurity and Data Protection - The company faces risks related to cybersecurity breaches that could compromise business operations and result in significant data losses[165]. - Increased prevalence of computer malware and data security breaches poses risks to the company's platform and could harm customer retention[208]. - The company is subject to cybersecurity reviews if it holds personal information of more than one million users and intends to go public in a foreign country[119]. - The company may face penalties and fines for noncompliance with data protection laws, which could adversely affect its business operations[124].

Agora, Inc. Reports Fourth Quarter and Fiscal Year 2023 Financial Results SANTA CLARA, Calif., February 26, 2024 (GLOBE NEWSWIRE) – Agora, Inc. (NASDAQ: API) (the "Company"), a pioneer and leader in real-time engagement technology, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2023. "We ended 2023 with strong financial results in the fourth quarter, as we delivered sequential quarterly revenue growth and a non-GAAP net income of $1.4 million, a ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2023 were $36 million, a 2.9% increase quarter-over-quarter but a 10.2% decrease year-over-year [14] - Agora's revenues were $15.3 million, flat compared to the previous quarter and down 3.2% year-over-year [14] - Shengwang revenues were RMB 148.7 million, a 5% increase quarter-over-quarter but a 9.6% decrease year-over-year [15] - Non-GAAP net income was $1.4 million in Q4, translating to a 3.9% net income margin, a significant improvement from a non-GAAP net loss margin of 39.3% in Q4 last year [18] Business Line Data and Key Metrics Changes - Agora had close to 1,700 active customers, an 18% increase year-over-year, while Shengwang had over 4,100 active customers, a 12% increase [4] - Dollar-based net retention rate was 93% for Agora and 82% for Shengwang, excluding revenues from discontinued business [15] Market Data and Key Metrics Changes - The company noted a challenging macroeconomic environment affecting customer usage in emerging markets, contributing to revenue declines [14] - The competitive landscape in the U.S. and international markets showed strong growth momentum in media and entertainment, telehealth, and IoT sectors [31] Company Strategy and Development Direction - The company aims to focus on creating customer value and enhancing competitive advantage to expand market share globally [13] - The introduction of new products and features, such as the virtual sound card and mini games, is part of the strategy to drive user engagement and monetization [11][10] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the macroeconomic environment and regulatory changes but expressed optimism about achieving profitability and revenue growth in 2024 [23] - The company expects Q1 2024 revenues to be between $32 million and $34 million, reflecting seasonal impacts and a lower usage period due to the Lunar New Year [20] Other Important Information - The company ended Q4 with $371.8 million in cash and equivalents, with a share repurchase program returning approximately $104.3 million to shareholders [19] - The board has authorized a 12-month extension of a $200 million share repurchase program, indicating confidence in the company's financial strength [19] Q&A Session Summary Question: What is the management outlook for 2024 profitability? - Management indicated that while Q1 may see a revenue decline, they expect to achieve year-on-year revenue growth starting from Q2 and aim for double-digit growth by Q4 [22][23] Question: Can Agora benefit from domestic Internet companies going abroad? - Management believes they are well-positioned to assist Chinese Internet companies in expanding globally, leveraging their existing customer base and market knowledge [24] Question: What will be the revenue model for the partnership with Vision Pro? - The revenue model will be API-based, tied to consumer usage, with potential for diverse pricing models as new use cases emerge [26] Question: What is the demand outlook and competitive landscape? - Management noted strong growth in developed markets, particularly in media and entertainment, while facing price pressures in emerging markets [31][32] Question: What is the impact of Twilio's exit on Agora? - Management sees Twilio's exit as an opportunity to gain market share, with ongoing efforts to convert Twilio's customer base to Agora's services [35][38]

Agora, Inc. 2023 Q4 Earnings Disclaimer Information in this presentation contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this presentation a ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2023 were $35 million, an increase of 2.9% quarter-over-quarter but a decrease of 14.6% year-over-year [14] - Agora revenues were $15.3 million, flat compared to the previous quarter and down 8.9% year-over-year, primarily due to reduced usage and increased pricing sensitivity in emerging markets [14][15] - Adjusted gross margin for Q3 was 66.9%, up 3.3% from Q3 2022, attributed to changes in product mix and infrastructure optimization [16] - Adjusted EBITDA was negative $4.4 million, translating to a 12.7% adjusted EBITDA loss margin [18] - Non-GAAP net loss, excluding investment loss, was $2.2 million, resulting in a 6.3% net loss margin for the quarter [19] Business Line Data and Key Metrics Changes - Shengwang's revenue increased by 7.4% quarter-over-quarter, but decreased by 9.2% year-over-year, excluding revenues from the disposed CIC business [15] - The digital transformation business for Shengwang grew more than 50% this year, indicating strong demand from large enterprises [26] - Dollar-based net retention rate was 98% for Agora and 89% for Shengwang, excluding revenues from discontinued business [15] Market Data and Key Metrics Changes - The U.S. live shopping market is projected to be worth $35 billion by 2024, with live shopping potentially accounting for 20% of e-commerce sales by 2026 [5] - The company noted stable demand from Internet customers in China, with some bright spots in online karaoke and premium broadcasting streaming products [27] Company Strategy and Development Direction - The company aims to stabilize existing business and expand into new regions and use cases, particularly in the digital transformation sector [26] - The focus remains on driving revenues and improving efficiency, with an emphasis on emerging AIGC use cases [21] - The company is positioned to become critical infrastructure for interactions between human users and AI models through video and audio [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about mid- to long-term demand despite current macroeconomic challenges [24] - The pandemic has shifted consumer behavior towards more real-time engagement activities, which is expected to drive growth [24] - Pricing pressure exists in emerging markets, but pricing remains stable in developed markets [27] Other Important Information - A change in the Board of Directors was announced, with Mr. Tuck Lye Koh resigning and Mr. Shawn Zhong appointed as a director [12][13] - The company has returned approximately $94.3 million to shareholders through share repurchase, reflecting confidence in long-term prospects [20] Q&A Session Summary Question: 2024 outlook and breakdown between Agora and Shengwang business - Management is optimistic about demand in the mid- to long-term, with growth in both Agora and Shengwang expected, particularly in digital transformation [24][26] Question: Competitive landscape in China and overseas - The macro environment is challenging, but some small competitors are facing financial difficulties, indicating potential opportunities for the company [25] Question: AI applications and revenue contribution - Management sees potential in various AI use cases, but emphasizes that development is ongoing and significant revenue contributions may take time [30]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Agora achieved sequential revenue growth in Q3 2023, significantly reducing adjusted EBITDA loss and operating cash outflow through disciplined cost control, and is strategically integrating generative AI - The company delivered **sequential revenue growth** and reduced **adjusted EBITDA loss** and **operating cash outflow** to the **lowest levels in over two years** due to **cost discipline**[2](index=2&type=chunk) - Agora is **strategically positioning itself** to enable interactions between human users and **AI models** through **video and audio**, targeting use cases like AI companions, social games, and AI tutors[2](index=2&type=chunk) Q3 2023 Key Metrics vs. Q3 2022 | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $35.0M | $41.0M | -14.6% | | **Agora Active Customers** | 1,664 | 1,319 | +26.2% | | **Shengwang Active Customers** | 4,034 | 3,796 | +6.3% | | **Agora Dollar-Based Net Retention** | 98% | N/A | N/A | | **Shengwang Dollar-Based Net Retention** | 89% | N/A | N/A | Q3 2023 Profitability and Cash Flow vs. Q3 2022 | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | **Net Loss** | $22.5M | $27.7M | | **Non-GAAP Net Loss** | $15.6M | $17.6M | | **Adjusted EBITDA** | -$4.4M | -$16.4M | | **Net Cash Used in Operating Activities** | $3.0M | $8.8M | | **Free Cash Flow** | -$3.2M | -$9.9M | [Detailed Financial Results](index=2&type=section&id=Third%20quarter%202023%20Financial%20Results) Total revenues declined 14.6% YoY to $35.0 million in Q3 2023, yet gross margin improved and operating expenses significantly decreased, narrowing the loss from operations despite an investment loss [Revenues](index=2&type=section&id=Revenues) Total revenues decreased 14.6% to $35.0 million in Q3 2023, with both Agora and Shengwang segments experiencing declines due to market pressures and business disposal Q3 2023 Revenue Breakdown (YoY) | Segment | Q3 2023 Revenue | Q3 2022 Revenue | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Total** | $35.0M | $41.0M | -14.6% | - | | **Agora** | $15.3M | $16.8M | -8.9% | Decrease in usage and pricing in emerging markets | | **Shengwang** | $19.7M (RMB141.2M) | $24.2M (RMB165.3M) | -14.6% | Macroeconomic slowdown, regulations, and disposal of CEC business | [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross margin improved to 64.0% in Q3 2023, and operating expenses significantly decreased, narrowing the loss from operations despite a substantial investment loss contributing to a $22.5 million net loss Q3 2023 Gross Profit and Margin (YoY) | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | **Gross Profit** | $22.4M | $24.3M | -7.9% | | **Gross Margin** | 64.0% | 59.4% | +4.6% | Q3 2023 Operating Expenses (YoY) | Expense Category | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Operating Expenses** | $36.9M | $55.6M | -33.7% | | Research and development | $20.0M | $29.8M | -32.7% | | Sales and marketing | $7.8M | $14.6M | -46.7% | | General and administrative | $9.1M | $11.3M | -19.4% | Q3 2023 Loss Summary (YoY) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | **Loss from Operations** | $13.9M | $28.9M | | **Investment Loss** | $13.4M | $0.0M (not material) | | **Net Loss** | $22.5M | $27.7M | | **Net Loss per ADS** | $0.23 | $0.25 | [Corporate Developments](index=4&type=section&id=Corporate%20Developments) Agora actively repurchased shares, utilizing 47% of its $200 million program, and announced a board change with Mr. Sheng (Shawn) Zhong replacing Mr. Tuck Lye Koh [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) Agora repurchased 17.0 million shares for $12.3 million in Q3 2023, bringing total repurchases to 99.7 million shares for $94.3 million, utilizing 47% of the $200 million program Share Repurchase Program Status as of Sep 30, 2023 | Metric | Value | | :--- | :--- | | **Shares Repurchased in Q3 2023** | 17.0M (4.3M ADSs) | | **Cost of Q3 2023 Repurchases** | $12.3M | | **Total Shares Repurchased to Date** | 99.7M (24.9M ADSs) | | **Total Cost to Date** | $94.3M | | **Program Utilization** | 47% of $200M | | **Program Expiration** | End of February 2024 | [Change to Board of Directors](index=4&type=section&id=Change%20to%20Board%20of%20Directors) Mr. Tuck Lye Koh resigned from the Board of Directors and was replaced by Mr. Sheng (Shawn) Zhong, the company's Chief Technology Officer and Chief Scientist - Mr. Tuck Lye Koh **resigned** from the board of directors[13](index=13&type=chunk) - Mr. Sheng (Shawn) Zhong, the company's Chief Technology Officer and Chief Scientist, was **appointed as a new director**[13](index=13&type=chunk)[14](index=14&type=chunk) [Business Outlook](index=5&type=section&id=Financial%20Outlook) Agora projects Q4 2023 total revenues to be between $35.5 million and $37.5 million, based on current market and operational conditions Q4 2023 Revenue Guidance | Metric | Range | | :--- | :--- | | **Total Revenues** | $35.5M - $37.5M | [Financial Statements](index=10&type=section&id=Financial%20Statements) Unaudited financial statements for Q3 2023 show decreased total assets to $666.7 million, a narrowed net loss of $22.5 million, and improved net cash used in operating activities to $3.0 million [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets decreased to $666.7 million, primarily due to lower cash, while total liabilities also decreased to $58.2 million, resulting in $608.5 million in shareholders' equity Key Balance Sheet Items (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Cash, cash equivalents, bank deposits & financial products** | $373,444 | $401,256 | | **Total Assets** | $666,674 | $800,715 | | **Total Liabilities** | $58,173 | $72,455 | | **Total Shareholders' Equity** | $608,501 | $728,260 | [Condensed Consolidated Statements of Comprehensive Loss](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Q3 2023 total revenues were $35.0 million with a net loss of $22.5 million, or $0.23 per ADS, an improvement from the prior year due to reduced operating expenses Q3 Income Statement Summary (in thousands, except per ADS data) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | **Total Revenues** | $35,016 | $40,988 | | **Gross Profit** | $22,422 | $24,349 | | **Loss from Operations** | $(13,857) | $(28,921) | | **Net Loss** | $(22,513) | $(27,699) | | **Net Loss per ADS** | $(0.23) | $(0.25) | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q3 2023 saw improved net cash used in operating activities to $3.0 million, net cash provided by investing activities of $5.7 million, and increased net cash used in financing activities to $12.4 million Q3 Cash Flow Summary (in thousands) | Cash Flow Activity | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(3,033) | $(8,833) | | **Net cash provided by (used in) investing activities** | $5,677 | $(105,377) | | **Net cash used in financing activities** | $(12,388) | $(2,992) | | **Net decrease in cash** | $(9,691) | $(120,031) | [Non-GAAP Financial Measures & Metrics](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Metrics) Agora uses non-GAAP measures to assess operational performance, showing improved Q3 2023 Non-GAAP net loss of $15.6 million, Adjusted EBITDA of negative $4.4 million, and free cash flow outflow of $3.2 million [Reconciliation of GAAP to Non-GAAP Measures](index=15&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP reconciliation shows significant improvement in Q3 2023, with non-GAAP net loss narrowing to $15.6 million, Adjusted EBITDA loss reduced to $4.4 million, and free cash flow outflow decreasing to $3.2 million Q3 Non-GAAP Reconciliation Summary (in thousands) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | **GAAP Net Loss** | $(22,513) | $(27,699) | | **Non-GAAP Net Loss** | $(15,565) | $(17,595) | | **Adjusted EBITDA** | $(4,448) | $(16,399) | | **Free Cash Flow** | $(3,239) | $(9,918) | [Operating Metrics Definitions](index=7&type=section&id=Operating%20Metrics%20Definitions) Key operating metrics are defined, including 'Active Customer' as an entity generating over $100 in 12 months, and 'Dollar-Based Net Retention Rate' measuring cohort revenue changes over two 12-month periods - An **Active Customer** is defined as an organization or individual from whom the company generated more than **$100 of revenue** during the **preceding 12 months**[24](index=24&type=chunk) - **Dollar-Based Net Retention Rate** is calculated for a **trailing 12-month period** by dividing revenue from a **customer cohort** in the current period by the revenue from the same cohort in the prior period[25](index=25&type=chunk)

Agora, Inc. 2023 Q2 Earnings Disclaimer Information in this presentation contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this presentation a ...

Agora, Inc. (NASDAQ:API) Q2 2023 Results Conference Call August 21, 2023 9:00 PM ET Company Participants Tony Zhao - Co-Founder, Chief Executive Officer & Chairman Jingbo Wang - Chief Financial Officer Conference Call Participants Harry Zhuang - Bank of America Securities Operator Good day, and thank you for standing by. Welcome to Agora Inc. Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. The company's earnings resu ...