Advanced AI agents from Agora and WIZ.AI can power call centers with multilingual support and contextual understanding Agora's conversational AI solutions are built to make AI feel less like a robotic tool and more like a trusted, knowledgeable helper. Agora's Conversational AI Engine enables developers to build lifelike, real-time voice agents using any LLM. Powered by Agora's powerful real-time communication (RTC) infrastructure, these agents can converse more naturally with ultra-low latency responses, a ...

Financial Data and Key Metrics Changes - Total revenue for Q1 reached $33.3 million, up 12% year over year, excluding revenues from certain low-margin products, indicating a recovery in business momentum [3][11] - GAAP net profit for the quarter was $400,000, representing a 1.2% net income margin, a significant turnaround from a net loss margin of 28.7% in Q1 last year [16][17] - Operating cash flow was $17.6 million in Q1 compared to negative $6.5 million last year, reflecting improved financial health [17] Business Line Data and Key Metrics Changes - Core revenues reached $18.6 million in Q1, growing 17.7% year over year, driven by market expansion in high-potential verticals like live shopping and entertainment [12] - Shunlong revenues were RMB 105.5 million in Q1, with a year-over-year growth of 6.7%, although it declined 13.7% sequentially due to seasonal factors [12][13] - The net retention rate improved to 96% for Agora and 85% for Shunlong, indicating better customer retention [13] Market Data and Key Metrics Changes - The growth rate in the U.S. and global markets is around 18% to 20%, with increasing adoption of live video-based shopping and entertainment apps, particularly in North America and Europe [28][30] - Demand recovery is noted in Asian markets, including India, for both education and entertainment use cases [30] Company Strategy and Development Direction - The company is focusing on conversational AI, particularly in education, IoT, and customer service sectors, which are seen as key growth drivers [25][26] - The strategy includes maximizing penetration in live commerce and improving video quality for better customer experiences [35] - The company aims to maintain profitability while investing in future growth opportunities, including share repurchase programs [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining GAAP profitability for the remainder of the year, supported by current business momentum [4][17] - The competitive landscape in China is consolidating, with fewer players remaining, which may enhance the company's market position [46][48] Other Important Information - The company launched a Conversational AI Device Kit, enabling manufacturers to integrate conversational AI into IoT devices, which could reduce R&D costs and time to market [7] - The open-source project for building real-time conversational AI agents is gaining traction, with significant support from leading cloud providers [8] Q&A Session Summary Question: What are the key areas for AI application? - Management highlighted education, IoT, and customer service as the most active use cases for AI applications [25][26] Question: What is the demand trend for China and overseas business? - Management noted a solid demand recovery in the U.S. and global markets, with stable pricing trends in developed markets [28][30] Question: What is the strategy for overseas e-commerce platforms? - The company is focusing on maximizing penetration in live commerce and improving video quality for better user experiences [35] Question: What is the timing for massive adoption of conversational AI? - Management indicated that the tipping point for adoption will depend on the maturity of product-market fit across various verticals [40][42] Question: How is the competitive landscape in China affecting pricing trends? - The competitive landscape is consolidating, with fewer players, and the company is focusing on higher value use cases to maintain margins [46][49]

Financial Data and Key Metrics Changes - Total revenue in Q1 2025 reached $33.3 million, up 12% year over year, excluding revenues from certain low-margin products [3][11] - GAAP net profit for the quarter more than doubled from the previous quarter, marking the second consecutive quarter of GAAP profitability [4][15] - Operating cash flow was $17.6 million in Q1, compared to negative $6.5 million last year [16] - Gross margin for Q1 was 68%, with an increase of 0.6% year over year and 1.4% quarter over quarter [13] Business Line Data and Key Metrics Changes - Core revenues reached $18.6 million in Q1, growing 17.7% year over year [12] - Shunlong revenues were RMB 105.5 million in Q1, with a year-over-year growth of 6.7% [12] - The base net retention rate improved to 96% for Agora and 85% for Shunlong [12] Market Data and Key Metrics Changes - Growth rate in the US and global markets is around 18% to 20%, with increasing adoption of live video-based shopping and entertainment apps, particularly in North America and Europe [26][28] - Demand recovery is observed in Asian markets, including India, for both education and entertainment use cases [28] Company Strategy and Development Direction - The company is focusing on conversational AI, particularly in education, IoT, and customer service sectors [24][25] - The launch of the Conversational AI Device Kit aims to enable device manufacturers to integrate conversational AI into various IoT devices [7] - The company is committed to maintaining profitability while investing in future growth opportunities through share repurchase programs [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining GAAP profitability throughout 2025, supported by current business momentum [4][16] - The company anticipates a revenue range of $33 million to $35 million for Q2 2025, reflecting a year-over-year growth rate of 6.8% to 13.3% [18] Other Important Information - The conversational AI engine launched in March is expected to unlock innovation across multiple verticals, particularly in education [6] - The company has seen record-high product registrations and inquiries following recent product launches [9] Q&A Session Summary Question: AI demand and future growth drivers - Management highlighted key use cases for AI applications, including education, IoT, and customer service [24][25] Question: Breakdown of China and overseas business demand trends - Management noted a growth rate of about 18% in the US and global markets, with demand recovery in Asian markets [26][28] Question: Overseas e-commerce business strategy - Management discussed ongoing efforts to penetrate the live commerce space and improve video quality for better customer experience [33] Question: Shifts in downstream demand for AI-powered interaction capabilities - Management emphasized the importance of product market fit for various verticals to achieve growth [40][41] Question: Timing for massive adoption of conversational AI - Management indicated that the tipping point for adoption will depend on the maturity of product market fit across different use cases [40][41] Question: Competitive landscape in China and pricing trends - Management acknowledged the competitive nature of the Chinese market but noted a trend towards consolidation among major players [44][46]

Core Viewpoint - Agora, Inc. reported its second consecutive quarter of GAAP profitability in Q1 2025, driven by disciplined cost management and double-digit revenue growth year-over-year, excluding certain end-of-sale products [2][4]. Financial Performance - Total revenues for Q1 2025 were $33.3 million, a 0.8% increase from $33.0 million in Q1 2024 [4]. - Agora's revenues were $18.6 million, up 17.7% from $15.8 million in the same period last year, attributed to business expansion and growth in sectors like live shopping [4]. - Shengwang's revenues were RMB105.5 million ($14.7 million), down 13.9% from RMB122.6 million ($17.2 million) in Q1 2024, mainly due to a decline in revenues from certain end-of-sale products [4]. Cost Management - Cost of revenues decreased to $10.6 million, down 16.9% from $12.8 million in Q1 2024, primarily due to the end-of-sale of certain products [5]. - Gross profit increased to $22.6 million, an 11.9% rise from $20.2 million in the same period last year, with a gross margin of 68.0%, up 6.8% from 61.2% [6]. Operating Expenses - Operating expenses were $26.5 million, a decrease of 20.5% from $33.3 million in Q1 2024 [7]. - Research and development expenses were $14.0 million, down 22.7% from $18.1 million in the same period last year [17]. - Sales and marketing expenses decreased to $6.2 million, an 8.5% reduction from $6.8 million [17]. - General and administrative expenses were $6.2 million, down 25.6% from $8.4 million [17]. Profitability Metrics - Net income for Q1 2025 was $0.4 million, compared to a net loss of $9.5 million in Q1 2024 [11]. - Loss from operations was $3.7 million, improved from a loss of $12.6 million in the same period last year [9]. Cash Flow and Financial Position - Total cash, cash equivalents, and financial products as of March 31, 2025, amounted to $388.0 million [4]. - Net cash provided by operating activities was $17.6 million, compared to a net cash used of $6.5 million in Q1 2024 [4]. Share Repurchase Program - The company repurchased approximately 1.2 million Class A ordinary shares for about $1.2 million during Q1 2025, representing 0.6% of its $200 million share repurchase program [13]. - As of March 31, 2025, the company had repurchased approximately 131.8 million Class A ordinary shares for about $116.4 million, representing 58.2% of its share repurchase program [14]. Future Outlook - The company expects total revenues for Q2 2025 to be between $33 million and $35 million, compared to $30.9 million in Q2 2024, excluding revenues from certain end-of-sale low-margin products [16].

Financial Data and Key Metrics Changes - The company achieved GAAP profitability for the first time in several years, marking a significant milestone [6][27] - Total revenue for Q4 2024 was $34.5 million, up 4% year over year, excluding revenues from certain low-margin products [7][20] - Core revenues were $17.4 million in Q4, reflecting a 10.8% quarter-over-quarter increase and a 13.7% year-over-year increase [20] - Gross margin for Q4 was 66.6%, with a slight decrease of 0.1% quarter over quarter and 0.8% year over year when excluding certain products [23] - Net income was $0.2 million in Q4, translating to a 0.5% net income margin, compared to a net loss margin of 7.2% in Q4 last year [26] Business Line Data and Key Metrics Changes - Xiong Wang revenues were RMB 122.2 million in Q4, increasing 8.2% quarter over quarter but decreasing 5.4% year over year [21] - The increase in Xiong Wang revenues was primarily due to digital transformation customers, while the year-over-year decrease was attributed to slowing demand in social and entertainment sectors [21][22] Market Data and Key Metrics Changes - The company reported over 1,700 active customers for Agora and close to 2,000 for Xiong Wang, representing increases of 2% and 8% respectively compared to the previous year [7] - The demand in the China market is primarily driven by IoT and digital transformation, while the global market sees growth from live commerce and retail [36] Company Strategy and Development Direction - The company is focused on driving operational efficiency and sustainable profitable growth, with a commitment to innovation and financial discipline [27][31] - The launch of the conversational AI engine is expected to accelerate the adoption of conversational AI across various industries, becoming a key driver of future growth [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the generative AI revolution presents extraordinary opportunities for the company, particularly in enabling seamless voice-based interactions [9][10] - The company expects to maintain sustained profitability throughout 2025, driven by strategic initiatives and emerging market opportunities in generative AI [30][31] Other Important Information - Operating cash flow was $4.5 million in Q4, compared to $3.7 million last year, and free cash flow was $4.3 million compared to $3.4 million last year [28] - The company ended Q4 with $363.8 million in cash and equivalents, with a share repurchase program extended through February 2026 [29] Q&A Session Summary Question: Trends in overseas and China markets and key sectors driving growth in 2025 - Management noted demand in China is primarily on IoT and digital transformation, while globally, live commerce and retail are driving growth [36] Question: Increase in AI-related demand and application scenarios - There is growing interest in AI-related technologies, particularly in voice AI applications for companionship and education [38][39] Question: Gross profit margin and GAAP profit targets for 2025 - The company expects gross margin to maintain around 67% and aims for stronger growth on the bottom line compared to the top line [42][44] Question: Strong recovery of Agora's growth rate in Q4 and future momentum - The growth rate was driven by new usage in live commerce and other novel use cases, with optimism for continued growth in 2025 [49][51] Question: Demand for voice and multimodal interaction in the next two years - Management sees significant potential in voice AI applications, particularly in customer service and IoT devices, with expectations for growth in these areas [53][59]