Financial Data and Key Metrics Changes - Total revenue in Q2 reached $34.3 million, up 11% year over year, with GAAP net profit of $1.5 million, more than triple the previous quarter, resulting in a GAAP net margin of 4.3% [2][16] - Core revenues reached $18.2 million in Q2, representing 16.7% year over year growth, while Shenglong revenues grew 6.7% year over year [13][14] - Gross margin for Q2 was 66.8%, with a slight decrease of 1.2% year over year and sequentially [14] Business Line Data and Key Metrics Changes - The conversational AI engine has seen rapid iteration and upgrades, with new features aimed at enhancing user interaction [3][4] - The company reported a dollar-based net retention rate of 97% for Agora and 87% for Shenglong, marking improvements for both businesses [14] Market Data and Key Metrics Changes - The company has observed significant growth in active customers, with approximately 1,900 for Agora and 2,000 for Shenglong, representing a 121% increase year over year [2] - The conversational AI solution is gaining traction in various industries, with successful deployments in call centers, education, and companionship toys [24] Company Strategy and Development Direction - The company is focused on enhancing its conversational AI capabilities, with a strategic emphasis on high-growth verticals such as live shopping and entertainment [13] - The pricing for the conversational AI solution is expected to be significantly higher than standard RTC audio products, unlocking substantial revenue potential [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to improve GAAP profitability through the remainder of the year, citing strong business momentum and visibility [2][16] - The company anticipates total revenues for Q3 2025 to be between $34 million and $36 million, reflecting a year-over-year growth rate of 7.6% to 13.9% [18] Other Important Information - The company announced the resignation of its CTO due to personal reasons, with operational responsibilities being taken over by the CEO [9] - The company has repurchased $127.2 million worth of shares since the approval of the share repurchase program in February 2025 [17] Q&A Session Summary Question: What application areas will see fast adoption and revenue contribution? - Management highlighted three advanced use cases for conversational AI: call centers, education, and companionship toys, expecting further adoption driven by customer success [24] Question: What are the trends for gross profit margin and net operating margin? - Management indicated that gross margins for the RTC business have been stable, with expectations for continued stability, while new conversational AI products may initially have lower margins but are expected to improve over time [25][26] Question: What is the market reception of the newly launched features? - Management noted positive early adoption trends and client feedback for the advanced attention locking and avatar features, emphasizing their importance in noisy environments and engaging interactions [30]

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]