Agora(US:API)2024-02-27 04:32Financial 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]