Rhea-AI Impact
Rhea-AI Sentiment
Rhea-AI Summary
Agora Inc. (API) reported Q3 2024 financial results with total revenues of $31.6 million, down 9.8% year-over-year. The company posted a net loss of $24.2 million, including $11.4 million in equity award cancellation expenses and $4.8 million in severance expenses. Agora segment revenue increased 2.6% to $15.7 million, while Shengwang segment decreased 20% to $15.9 million. The company maintains strong liquidity with $362.6 million in cash and equivalents. For Q4 2024, Agora projects revenues between $34-36 million and expects significant improvement in net income/loss.
Agora Inc. (API) ha riportato i risultati finanziari del terzo trimestre del 2024, con ricavi totali di 31,6 milioni di dollari, in calo del 9,8% rispetto all’anno precedente. L’azienda ha registrato una perdita netta di 24,2 milioni di dollari, comprensiva di 11,4 milioni di dollari in spese per cancellazione di premi azionari e 4,8 milioni di dollari in spese di licenziamento. I ricavi del segmento Agora sono aumentati del 2,6% a 15,7 milioni di dollari, mentre il segmento Shengwang è diminuito del 20% a 15,9 milioni di dollari. L’azienda mantiene una forte liquidità con 362,6 milioni di dollari in cassa e equivalenti. Per il quarto trimestre del 2024, Agora prevede ricavi compresi tra 34 e 36 milioni di dollari e si aspetta un miglioramento significativo nel reddito/perdita netta.
Agora Inc. (API) informó sobre los resultados financieros del tercer trimestre de 2024, con ingresos totales de 31,6 millones de dólares, una caída del 9,8% en comparación con el año anterior. La compañía reportó una pérdida neta de 24,2 millones de dólares, incluyendo 11,4 millones de dólares en gastos por cancelación de premios en acciones y 4,8 millones de dólares en gastos por despidos. Los ingresos del segmento Agora aumentaron un 2,6% a 15,7 millones de dólares, mientras que el segmento Shengwang disminuyó un 20% a 15,9 millones de dólares. La empresa mantiene una sólida liquidez con 362,6 millones de dólares en efectivo y equivalentes. Para el cuarto trimestre de 2024, Agora proyecta ingresos entre 34 y 36 millones de dólares y espera una mejora significativa en su ingreso/pérdida neta.
아고라 주식회사 (API)는 2024년 3분기 재무 결과를 보고했으며, 총 수익은 3,160만 달러로 전년 대비 9.8% 감소했습니다. 회사는 2,420만 달러의 순손실을 기록했으며, 여기에는 1,140만 달러의 주식 보상 취소 비용과 480만 달러의 퇴직 비용이 포함됩니다. 아고라 부문의 수익은 2.6% 증가해 1,570만 달러에 달했으나, 셩왕 부문은 20% 감소해 1,590만 달러에 그쳤습니다. 회사는 3억 6,260만 달러의 현금 및 현금 등가물로 강력한 유동성을 유지하고 있습니다. 2024년 4분기에는 3,400만 달러에서 3,600만 달러의 수익을 예상하고 있으며, 순이익/손실이 크게 개선될 것으로 기대하고 있습니다.
Agora Inc. (API) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus totaux de 31,6 millions de dollars, en baisse de 9,8 % par rapport à l’année précédente. L’entreprise a enregistré une perte nette de 24,2 millions de dollars, incluant 11,4 millions de dollars de dépenses liées à l’annulation de récompenses en actions et 4,8 millions de dollars de frais de licenciement. Les revenus du segment Agora ont augmenté de 2,6 % pour atteindre 15,7 millions de dollars, tandis que le segment Shengwang a diminué de 20 % à 15,9 millions de dollars. L’entreprise maintient une forte liquidité avec 362,6 millions de dollars en liquidités et équivalents. Pour le quatrième trimestre 2024, Agora prévoit des revenus compris entre 34 et 36 millions de dollars et s’attend à une amélioration significative du revenu/perte net.
Agora Inc. (API) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit Gesamteinnahmen von 31,6 Millionen Dollar, was einem Rückgang von 9,8 % im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 24,2 Millionen Dollar, einschließlich 11,4 Millionen Dollar an Stornokosten für Eigenkapitalvergaben und 4,8 Millionen Dollar an Abfindungskosten. Der Umsatz im Agora-Segment stieg um 2,6 % auf 15,7 Millionen Dollar, während das Shengwang-Segment um 20 % auf 15,9 Millionen Dollar zurückging. Das Unternehmen hält eine starke Liquidität mit 362,6 Millionen Dollar in Bargeld und Bargeldäquivalenten. Für das vierte Quartal 2024 prognostiziert Agora Einnahmen zwischen 34 und 36 Millionen Dollar und erwartet eine signifikante Verbesserung bei Nettoergebnis/-verlust.
Positive
- Cash position remains strong at $362.6 million
- Agora segment revenue grew 2.6% YoY to $15.7 million
- Active customers in Agora segment increased 5.9% to 1,762
- Q4 2024 guidance shows sequential revenue growth
Negative
- Total revenue declined 9.8% YoY to $31.6 million
- Net loss increased to $24.2 million from $22.5 million YoY
- Shengwang segment revenue decreased 20% YoY
- Operating expenses increased 24.3% YoY to $45.9 million
- Dollar-Based Net Retention Rate declined to 94% for Agora and 78% for Shengwang
Insights
The Q3 results reveal concerning trends with $31.6M total revenue, down 9.8% YoY. The net loss widened to $24.2M, impacted by $16.2M in restructuring costs. While gross margin improved to 66.7%, operating expenses surged 24.3% YoY due to restructuring.
The company’s pivot toward conversational AI through OpenAI collaboration signals a strategic shift, but current metrics raise red flags: Shengwang’s revenue declined 20% and both segments show weak dollar-based net retention rates (94% and 78%). The $362.6M cash position provides runway, but negative free cash flow of $6.0M is concerning.
The Q4 guidance of $34-36M suggests modest sequential growth but continued YoY pressure. While AI initiatives could drive future growth, near-term financial performance remains challenged by restructuring costs and market headwinds.
The strategic pivot toward conversational AI infrastructure represents a significant transformation for Agora. The launch of their AI SDK with OpenAI’s Realtime API positions them in the rapidly growing AI-enabled communications market. However, execution challenges are evident in the declining customer base for Shengwang (down 9.7% YoY) and modest growth in Agora’s segment.
The organizational restructuring, while costly short-term, aligns with the AI-focused strategy. The departure of the Chief Security Officer amid this transition warrants attention, particularly given the critical nature of security in AI applications. The company needs to demonstrate that this strategic shift can translate into sustainable growth and improved financial performance.
SANTA CLARA, Calif., Nov. 25, 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 third quarter ended September 30, 2024.
“Recently, we launched our Conversational AI SDK in collaboration with OpenAI’s Realtime API to allow developers to bring voice-driven AI experiences to any app. We believe multimodal AI agents that can interact with human through natural voice will gain widespread adoption across many use cases such as customer support, education and wellness, and Agora is well positioned to become a key infrastructure provider for real-time conversational AI,” said Tony Zhao, founder, chairman and CEO of Agora. “To support this vision, we recently made some structural changes, aligning our organization to fully leverage the accelerating conversational AI opportunities, and operate in a faster, leaner, and more responsive fashion. These changes will help us build the next generation real-time engagement technology for the Generative AI era and strengthen our position as the leader in real-time engagement space.”
Third Quarter 2024 Highlights
- Total revenues for the quarter were $31.6 million, a decrease of 9.8% from $35.0 million in the third quarter of 2023, which included decreased revenue from certain end-of-sale products of $2.4 million.
- Agora: $15.7 million for the quarter, an increase of 2.6% from $15.3 million in the third quarter of 2023.
- Shengwang: RMB112.9 million ($15.9 million) for the quarter, a decrease of 20.0% from RMB141.2 million ($19.7 million) in the third quarter of 2023, which included decreased revenue from certain end-of-sale products of RMB17.5 million ($2.4 million).
- Active Customers
- Agora: 1,762 as of September 30, 2024, an increase of 5.9% from 1,664 as of September 30, 2023.
- Shengwang: 3,641 as of September 30, 2024, a decrease of 9.7% from 4,034 as of September 30, 2023.
- Dollar-Based Net Retention Rate
- Agora: 94% for the trailing 12-month period ended September 30, 2024.
- Shengwang: 78% for the trailing 12-month period ended September 30, 2024.
- Net loss for the quarter was $24.2 million, which included expenses of $11.4 million in relation to the cancellation of certain employees’ equity awards, severance expenses of $4.8 million, and losses from equity in affiliates of $4.2 million, compared to net loss of $22.5 million in the third quarter of 2023. After excluding share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets and income tax related to acquired intangible assets, non-GAAP net loss for the quarter was $10.4 million, compared to the non-GAAP net loss of $15.6 million in the third quarter of 2023.
- Total cash, cash equivalents, bank deposits and financial products issued by banks as of September 30, 2024 was $362.6 million.
- Net cash used in operating activities for the quarter was $4.6 million, compared to $3.0 million in the third quarter of 2023. Free cash flow for the quarter was negative $6.0 million, compared to negative $3.2 million in the third quarter of 2023.
Third Quarter 2024 Financial Results
Revenues
Total revenues were $31.6 million in the third quarter of 2024, a decrease of 9.8% from $35.0 million in the same period last year. Revenues of Agora were $15.7 million in the third quarter of 2024, an increase of 2.6% from $15.3 million in the same period last year, primarily due to our business expansion and usage growth in sectors such as live shopping. Revenues of Shengwang were RMB112.9 million ($15.9 million) in the third quarter of 2024, a decrease of 20.0% from RMB141.2 million ($19.7 million) in the same period last year, primarily due to a decrease in revenues of RMB 17.5 million ($2.4 million) due to the end-of-sale of certain products and reduced usage from customers in certain sectors such as social and entertainment as a result of challenging macroeconomic and regulatory environment.
Cost of Revenues
Cost of revenues was $10.5 million in the third quarter of 2024, a decrease of 16.4% from $12.6 million in the same period last year, primarily due to the end-of-sale of certain products and the decrease in bandwidth usage and costs, which was offset partially by severance expenses for customer support teams of $0.3 million.
Gross Profit and Gross Margin
Gross profit was $21.0 million in the third quarter of 2024, a decrease of 6.1% from $22.4 million in the same period last year. Gross margin was 66.7% in the third quarter of 2024, an increase of 2.7% from 64.0% in the same period last year, mainly due to the end-of-sale of certain low-margin products, which was offset partially by higher severance expenses in the third quarter of 2024.
Operating Expenses
Operating expenses were $45.9 million in the third quarter of 2024, an increase of 24.3% from $36.9 million in the same period last year, primarily due to the increase in restructuring and severance expenses in the third quarter of 2024, which included share-based compensation of $11.4 million as a result of the cancellation of certain employees’ equity awards and immediate recognition of relevant remaining unrecognized compensation expenses, as well as severance expenses of $4.4 million.
- Research and development expenses were $29.3 million in the third quarter of 2024, an increase of 46.1% from $20.0 million in the same period last year, primarily due to restructuring and severance expenses in the third quarter of 2024, including share-based compensation of $9.0 million due to equity award cancellation and severance expenses of $3.6 million.
- Sales and marketing expenses were $6.9 million in the third quarter of 2024, a decrease of 11.9% from $7.8 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce, which was offset partially by severance expenses of $0.7 million in the third quarter of 2024.
- General and administrative expenses were $9.7 million in the third quarter of 2024, an increase of 7.4% from $9.1 million in the same period last year, primarily due to restructuring and severance expenses in the third quarter of 2024, including share-based compensation of $2.4 million as a result of the equity award cancellation, which was offset partially by a decrease in personnel costs as the Company optimized its global workforce.
Loss from Operations
Loss from operations was $24.7 million in the third quarter of 2024, compared to $13.9 million in the same period last year.
Interest Income
Interest income was $3.9 million in the third quarter of 2024, compared to $4.9 million in the same period last year, primarily due to the decrease in the average balance of cash, cash equivalents, bank deposits and financial products issued by banks and the decrease in average interest rate realized.
Losses from equity in affiliates
Losses from equity in affiliates were $4.2 million in the third quarter of 2024, primarily due to an impairment loss on an investment in certain private company of $4.1 million.
Net Loss
Net loss was $24.2 million in the third quarter of 2024, compared to $22.5 million in the same period last year.
Net Loss per American Depositary Share attributable to ordinary shareholders
Net loss per American Depositary Share (“ADS”)1 attributable to ordinary shareholders was $0.26 in the third quarter of 2024, compared to $0.23 in the same period last year.
_____________
1 One ADS represents four Class A ordinary shares.
Share Repurchase Program
During the three months ended September 30, 2024, the Company repurchased approximately 6.8 million of its Class A ordinary shares (equivalent to approximately 1.7 million ADSs) for approximately US$3.9 million under its share repurchase program, representing 1.9% of its US$200 million share repurchase program.
As of September 30, 2024, the Company had repurchased approximately 129.4 million of its Class A ordinary shares (equivalent to approximately 32.3 million ADSs) for approximately US$113.7 million under its share repurchase program, representing 57% of its US$200 million share repurchase program.
As of September 30, 2024, the Company had 368.3 million ordinary shares (equivalent to approximately 92.1 million ADSs) outstanding, compared to 449.8 million ordinary shares (equivalent to approximately 112.5 million ADSs) outstanding as of January 31, 2022 before the share repurchase program commenced.
The current share repurchase program will expire at the end of February 2025.
Executive Leadership Update
Today the Company announced that Chief Security Officer Roger Hale will be leaving the Company, effective immediately. Mr. Hale has served in this role for the past 2.5 years, during which he made significant contributions to enhancing the Company’s security, compliance, and data protection protocols.
Mr. Hale will work closely with senior leadership to ensure a smooth transition of his responsibilities. Moving forward, Patrick Ferriter and Robbin Liu will assume responsibility for security and compliance, reflecting the Company’s commitment to maintaining a strong and effective security framework. Mr. Hale will continue to provide strategic advice as an advisor to the Company.
“We are grateful for Roger’s dedication and expertise over the past two and a half years. His leadership has been invaluable in strengthening our security & compliance foundation,” said Tony Zhao, founder, chairman and CEO of Agora. “Security and compliance remain top priorities for Agora, and we will continue to uphold the highest standards to protect our customers and stakeholders.”
Financial Outlook
Based on currently available information, the Company expects total revenues for the fourth quarter of 2024 to be between $34 million and $36 million, compared to $31.6 million in the third quarter of 2024, and $33.3 million in the fourth quarter of 2023 if revenues from certain end-of-sale low-margin products were excluded. The Company also expects significant improvement in net income / (loss) in the fourth quarter. This outlook reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.
Earnings Call
The Company will host a conference call to discuss the financial results at 5 p.m. Pacific Time / 8 p.m. Eastern Time on November 25, 2024. Details for the conference call are as follows:
Event title: Agora, Inc. 3Q 2024 Financial Results
The call will be available at https://edge.media-server.com/mmc/p/wie28zvr
Investors who want to hear the call should log on at least 15 minutes prior to the broadcast. Participants may register for the call with the link below.
https://register.vevent.com/register/BIf58a0b6f500c4362b1a8c64f9fa4cea8
Please visit the Company’s investor relations website at https://investor.agora.io on November 25, 2024 to view the earnings release and accompanying slides prior to the conference call.
Use of Non-GAAP Financial Measures
The Company has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company uses these non-GAAP financial measures internally in analyzing its financial results and believe that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing its financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Besides free cash flow (as defined below), each of these non-GAAP financial measures represents the corresponding GAAP financial measure before share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill. The Company believes that such non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effects of such share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill that it includes in its cost of revenues, total operating expenses and net income (loss). The Company believes that all such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of its historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the tables captioned “Reconciliation of GAAP to Non-GAAP Measures” included at the end of this press release, and investors are encouraged to review the reconciliation.
Definitions of the Company’s non-GAAP financial measures included in this press release are presented below.
Non-GAAP Net Income (Loss)
Non-GAAP net income (loss) is defined as net income (loss) adjusted to exclude share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill.
Free Cash Flow
Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment (excluding the acquisition of land use right and the payment for the headquarters project). The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.
Operating Metrics
The Company also uses other operating metrics included in this press release and defined below to assess the performance of its business.
Active Customers
An active customer at the end of any period is defined as an organization or individual developer from which the Company generated more than $100 of revenue during the preceding 12 months. Customers are counted based on unique customer account identifiers. Generally, one software application uses the same customer account identifier throughout its life cycle while one account may be used for multiple applications.
Dollar-Based Net Retention Rate
Dollar-Based Net Retention Rate is calculated for a trailing 12-month period by first identifying all customers in the prior 12-month period, and then calculating the quotient from dividing the revenue generated from such customers in the trailing 12-month period by the revenue generated from the same group of customers in the prior 12-month period. As the vast majority of revenue generated from Agora’s customers is denominated in U.S. dollars, while the vast majority of revenue generated from Shengwang’s customers is denominated in Renminbi, Dollar-Based Net Retention Rate is calculated in U.S. dollars for Agora and in Renminbi for Shengwang, which has substantially removed the impact of foreign currency translations. Shengwang excluded the revenues from certain end-of-sale products, Easemob’s CEC business and K12 academic tutoring sector. The Company believes Dollar-Based Net Retention Rate facilitates operating performance comparisons on a period-to-period basis.
Safe Harbor Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the Company’s financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. Among other things, the Financial Outlook in this announcement contain forward-looking statements. These forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the growth of the RTE-PaaS market; the Company’s ability to manage its growth and expand its operations; the continued impact of COVID-19 on global markets and the Company’s business, operations and customers; the Company’s ability to attract new developers and convert them into customers; the Company’s ability to retain existing customers and expand their usage of its platform and products; the Company’s ability to drive popularity of existing use cases and enable new use cases, including through quality enhancements and introduction of new products, features and functionalities; the Company’s fluctuating operating results; competition; the effect of broader technological and market trends on the Company’s business and prospects; general economic conditions and their impact on customer and end-user demand; and other risks and uncertainties included elsewhere in the Company’s filings with the Securities and Exchange Commission (“SEC”), including, without limitation, the final prospectus related to the IPO filed with the SEC on June 26, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
About Agora, Inc.
Agora, Inc. is the Cayman Islands holding company of two independent divisions, under Agora brand and Shengwang brand, respectively, whose businesses are conducted through separate entities.
Headquartered in Santa Clara, California, Agora is a pioneer and global leader in Real-Time Engagement Platform-as-a-Service (PaaS), providing developers with simple, flexible, and powerful application programming interfaces, or APIs, to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications.
Headquartered in Shanghai, China, Shengwang is a pioneer and leading Real-Time Engagement PaaS provider in the China market.
For more information on Agora, please visit: www.agora.io
For more information on Shengwang, please visit: www.shengwang.cn
Agora, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in US$ thousands)
| As of | As of | |||
| September 30, | December 31, | |||
| 2024 | 2023 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | 32,118 | 36,894 | ||
| Short-term bank deposits | 161,906 | 86,924 | ||
| Short-term financial products issued by banks | 106,638 | 84,853 | ||
| Short-term investments | 3,066 | 7,983 | ||
| Accounts receivable, net | 37,381 | 34,668 | ||
| Prepayments and other current assets | 21,087 | 9,059 | ||
| Contract assets | 1,127 | 1,048 | ||
| Total current assets | 363,323 | 261,429 | ||
| Property and equipment, net | 4,238 | 5,365 | ||
| Construction in progress for the headquarters project | 35,429 | 17,343 | ||
| Operating lease right-of-use assets | 4,476 | 4,011 | ||
| Intangible assets | 741 | 1,274 | ||
| Long-term bank deposits | 20,500 | 143,127 | ||
| Long-term financial products issued by banks | 41,400 | 20,000 | ||
| Long-term investments | 41,012 | 43,893 | ||
| Land use right, net | 166,434 | 167,246 | ||
| Other non-current assets | 13,943 | 10,907 | ||
| Total assets | 691,496 | 674,595 | ||
| Liabilities and shareholders’ equity | ||||
| Current liabilities: | ||||
| Accounts payable | 15,196 | 12,996 | ||
| Advances from customers | 8,155 | 7,765 | ||
| Taxes payable | 1,686 | 906 | ||
| Current operating lease liabilities | 1,924 | 2,447 | ||
| Accrued expenses and other current liabilities | 32,148 | 32,780 | ||
| Total current liabilities | 59,109 | 56,894 | ||
| Long-term operating lease liabilities | 2,429 | 1,726 | ||
| Deferred tax liabilities | 113 | 196 | ||
| Long-term borrowings for the headquarters project | 33,762 | 11,027 | ||
| Other non-current liabilities | 19,543 | 3 | ||
| Total liabilities | 114,956 | 69,846 | ||
| Shareholders’ equity: | ||||
| Class A ordinary shares | 39 | 39 | ||
| Class B ordinary shares | 8 | 8 | ||
| Additional paid-in-capital | 1,148,502 | 1,138,346 | ||
| Treasury shares, at cost | (77,316) | (79,716) | ||
| Accumulated other comprehensive loss | (7,907) | (10,027) | ||
| Accumulated deficit | (486,786) | (443,901) | ||
| Total shareholders’ equity | 576,540 | 604,749 | ||
| Total liabilities and shareholders’ equity | 691,496 | 674,595 | ||
Agora, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited, in US$ thousands, except share and per ADS amounts)
| Three Month Ended | Nine Month Ended | |||||||||
| September 30, | September 30, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||
| Real-time engagement service revenues | 30,356 | 32,718 | 95,716 | 100,798 | ||||||
| Real-time engagement on-premise solution and other revenues | 1,217 | 2,298 | 3,087 | 4,699 | ||||||
| Total revenues | 31,573 | 35,016 | 98,803 | 105,497 | ||||||
| Cost of revenues | 10,524 | 12,594 | 36,304 | 38,693 | ||||||
| Gross profit | 21,049 | 22,422 | 62,499 | 66,804 | ||||||
| Operating expenses: | ||||||||||
| Research and development | 29,271 | 20,040 | 65,551 | 61,356 | ||||||
| Sales and marketing | 6,860 | 7,789 | 19,944 | 26,903 | ||||||
| General and administrative | 9,741 | 9,070 | 26,349 | 27,100 | ||||||
| Total operating expenses | 45,872 | 36,899 | 111,844 | 115,359 | ||||||
| Other operating income | 134 | 620 | 914 | 1,515 | ||||||
| Impairment of goodwill | – | – | – | (31,928 | ) | |||||
| Loss from operations | (24,689 | ) | (13,857 | ) | (48,431 | ) | (78,968 | ) | ||
| Exchange gain (loss) | 43 | 20 | 108 | (191 | ) | |||||
| Interest income | 3,924 | 4,850 | 13,244 | 14,006 | ||||||
| Interest expense | (86 | ) | – | (251 | ) | – | ||||
| Investment income (loss) | 839 | (13,356 | ) | (4,033 | ) | (18,497 | ) | |||
| Losses from extinguishment of convertible note | – | – | – | (1,230 | ) | |||||
| Other income | – | – | – | 550 | ||||||
| Loss before income taxes | (19,969 | ) | (22,343 | ) | (39,363 | ) | (84,330 | ) | ||
| Income taxes | – | (164 | ) | (149 | ) | (323 | ) | |||
| (Losses) income from equity in affiliates | (4,211 | ) | (6 | ) | (3,373 | ) | 45 | |||
| Net loss | (24,180 | ) | (22,513 | ) | (42,885 | ) | (84,608 | ) | ||
| Net loss attributable to ordinary shareholders | (24,180 | ) | (22,513 | ) | (42,885 | ) | (84,608 | ) | ||
| Other comprehensive loss: | ||||||||||
| Foreign currency translation adjustments | 3,197 | 1,164 | 2,119 | (6,097 | ) | |||||
| Gain on available-for-sale debt securities | – | – | – | 1,385 | ||||||
| Total comprehensive loss attributable to ordinary shareholders | (20,983 | ) | (21,349 | ) | (40,766 | ) | (89,320 | ) | ||
| Net loss per ADS attributable to ordinary shareholders, basic and diluted | (0.26 | ) | (0.23 | ) | (0.46 | ) | (0.84 | ) | ||
| Weighted-average shares used in computing net loss per ADS attributable to ordinary shareholders, basic and diluted | 371,733,050 | 389,359,207 | 372,336,342 | 405,036,312 | ||||||
| Share-based compensation expenses included in: | ||||||||||
| Cost of revenues | 31 | 129 | 184 | 576 | ||||||
| Research and development expenses | 10,776 | 3,769 | 15,886 | 10,668 | ||||||
| Sales and marketing expenses | 241 | 800 | 838 | 3,705 | ||||||
| General and administrative expenses | 2,599 | 1,945 | 4,332 | 5,953 | ||||||
Agora, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in US$ thousands)
| Three Month Ended | Nine Month Ended | ||||||||
| September 30, | September 30, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||||
| Net loss | (24,180 | ) | (22,513 | ) | (42,885 | ) | (84,608 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
| Share-based compensation expenses | 13,647 | 6,643 | 21,240 | 20,902 | |||||
| Allowance for current expected credit losses | 2,415 | 1,857 | 7,263 | 5,358 | |||||
| Depreciation of property and equipment | 788 | 1,558 | 2,726 | 5,680 | |||||
| Amortization of intangible assets | 131 | 345 | 533 | 1,036 | |||||
| Amortization of land use right | 856 | 850 | 2,572 | 2,312 | |||||
| Deferred tax benefit | (20 | ) | (53 | ) | (82 | ) | (159 | ) | |
| Amortization of right-of-use asset and interest on lease liabilities | 687 | 704 | 2,035 | 2,218 | |||||
| Investment (income) loss | (839 | ) | 13,356 | 4,033 | 18,497 | ||||
| Losses from extinguishment of convertible note | – | – | – | 1,230 | |||||
| Interest income on debt securities and investments | – | – | – | (105 | ) | ||||
| Losses (income) from equity in affiliates | 4,211 | 6 | 3,373 | (45 | ) | ||||
| Loss (gain) on disposal of property and equipment | 1 | 34 | 16 | (10 | ) | ||||
| Impairments of goodwill | – | – | – | 31,928 | |||||
| Changes in assets and liabilities, net of effect of acquisition: | |||||||||
| Accounts receivable | (1,627 | ) | (4,503 | ) | (9,418 | ) | (7,856 | ) | |
| Contract assets | (38 | ) | (86 | ) | (67 | ) | (942 | ) | |
| Prepayments and other current assets | 347 | (659 | ) | (12,129 | ) | (1,008 | ) | ||
| Other non-current assets | (472 | ) | (2,104 | ) | 6,668 | (5,160 | ) | ||
| Accounts payable | (2,531 | ) | 2,653 | 2,042 | 3,639 | ||||
| Advances from customers | (41 | ) | 100 | 316 | (559 | ) | |||
| Taxes payable | 107 | 31 | 761 | (802 | ) | ||||
| Operating lease liabilities | (677 | ) | (324 | ) | (2,319 | ) | (1,869 | ) | |
| Deferred income | 256 | – | 62 | (160 | ) | ||||
| Accrued expenses and other liabilities | 2,357 | (928 | ) | (5,404 | ) | (6,808 | ) | ||
| Net cash used in operating activities | (4,622 | ) | (3,033 | ) | (18,664 | ) | (17,291 | ) | |
| Cash flows from investing activities: | |||||||||
| Purchase of property and equipment | (1,333 | ) | (206 | ) | (2,297 | ) | (656 | ) | |
| Purchase of short-term bank deposits | – | (58,000 | ) | (43,100 | ) | (187,521 | ) | ||
| Purchase of short-term financial products issued by banks | (50,300 | ) | (19,525 | ) | (70,391 | ) | (29,899 | ) | |
| Purchase of short-term investments | – | (789 | ) | – | (789 | ) | |||
| Proceeds from maturity of short-term bank deposits | 37,000 | 86,000 | 111,241 | 434,058 | |||||
| Proceeds from maturity of short-term financial products issued by banks | 59,482 | – | 69,511 | 8,310 | |||||
| Purchase of long-term bank deposits | (10,500 | ) | – | (20,500 | ) | (143,127 | ) | ||
| Purchase of long-term financial products issued by banks | (32,000 | ) | – | (41,400 | ) | (20,000 | ) | ||
| Purchase of long-term investments | (562 | ) | – | (562 | ) | (15 | ) | ||
| Purchase of land use right | – | – | – | (5,133 | ) | ||||
| Payment for the headquarters project | (10,918 | ) | (1,839 | ) | (21,895 | ) | (4,326 | ) | |
| Cash received for business disposal | – | – | – | 5,769 | |||||
| Cash received from disposal of property and equipment | 2 | 36 | 58 | 87 | |||||
| Cash paid for a business combination | – | – | – | (3,680 | ) | ||||
| Cash received from disposal of long-term investments | 28 | – | 155 | – | |||||
| Net cash (used in) provided by investing activities | (9,101 | ) | 5,677 | (19,180 | ) | 53,078 | |||
| Cash flows from financing activities: | |||||||||
| Proceeds from long-term borrowings for headquarters project | 11,123 | – | 22,177 | – | |||||
| Deposits returned for business disposal | – | – | – | (1,000 | ) | ||||
| Proceeds from exercise of employees’ share options | 175 | 74 | 550 | 590 | |||||
| Deposit received in relation to headquarters project | – | – | 19,280 | – | |||||
| Repurchase of Class A ordinary shares | (3,913 | ) | (12,462 | ) | (9,667 | ) | (52,829 | ) | |
| Net cash provided by (used in) financing activities | 7,385 | (12,388 | ) | 32,340 | (53,239 | ) | |||
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 819 | 53 | 678 | (1,286 | ) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (5,519 | ) | (9,691 | ) | (4,826 | ) | (18,738 | ) | |
| Cash balance recorded in held-for sale assets at beginning of period | – | – | – | 1,488 | |||||
| Cash, cash equivalents and restricted cash at beginning of period * | 37,867 | 38,268 | 37,174 | 45,827 | |||||
| Cash, cash equivalents and restricted cash at end of period ** | 32,348 | 28,577 | 32,348 | 28,577 | |||||
| Supplemental disclosure of cash flow information: | |||||||||
| Income taxes paid | 24 | 33 | 133 | 65 | |||||
| Cash payments included in the measurement of operating lease liabilities | 677 | 324 | 2,319 | 1,869 | |||||
| Right-of-use assets obtained in exchange for operating lease obligations | 1,812 | – | 2,325 | 4,088 | |||||
| Non-cash financing and investing activities: | |||||||||
| Proceeds receivable from exercise of employees’ share options | 328 | 25 | 328 | 25 | |||||
| Payables for property and equipment | 33 | 24 | 33 | 24 | |||||
| Payables for construction in progress for the headquarters project | 11,614 | 6,458 | 11,614 | 6,458 | |||||
| Payables for treasury shares, at cost | 24 | 301 | 24 | 301 | |||||
|
* includes restricted cash balance |
280 | 280 | 280 | 154 | |||||
| ** includes restricted cash balance | 230 | 280 | 230 | 280 | |||||
Agora, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited, in US$ thousands, except share and per ADS amounts)
| Three Month Ended | Nine Month Ended | ||||||||
| September 30, | September 30, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| GAAP net loss | (24,180 | ) | (22,513 | ) | (42,885 | ) | (84,608 | ) | |
| Add: | |||||||||
| Share-based compensation expenses | 13,647 | 6,643 | 21,240 | 20,902 | |||||
| Acquisition related expenses | – | 13 | – | (400 | ) | ||||
| Amortization expenses of acquired intangible assets | 129 | 345 | 531 | 1,035 | |||||
| Income tax related to acquired intangible assets | (20 | ) | (53 | ) | (82 | ) | (159 | ) | |
| Impairment of goodwill | – | – | – | 31,928 | |||||
| Non-GAAP net loss | (10,424 | ) | (15,565 | ) | (21,196 | ) | (31,302 | ) | |
| Net cash used in operating activities | (4,622 | ) | (3,033 | ) | (18,664 | ) | (17,291 | ) | |
| Purchase of property and equipment | (1,333 | ) | (206 | ) | (2,297 | ) | (656 | ) | |
| Free Cash Flow | (5,955 | ) | (3,239 | ) | (20,961 | ) | (17,947 | ) | |
| Net cash (used in) provided by investing activities | (9,101 | ) | 5,677 | (19,180 | ) | 53,078 | |||
| Net cash provided by (used in) financing activities | 7,385 | (12,388 | ) | 32,340 | (53,239 | ) | |||
FAQ
What was Agora’s (API) revenue in Q3 2024?
Agora’s total revenue in Q3 2024 was $31.6 million, representing a 9.8% decrease from $35.0 million in Q3 2023.
What is Agora’s (API) Q4 2024 revenue guidance?
Agora expects Q4 2024 total revenues to be between $34 million and $36 million, compared to $31.6 million in Q3 2024.
What was Agora’s (API) net loss in Q3 2024?
Agora reported a net loss of $24.2 million in Q3 2024, compared to a net loss of $22.5 million in Q3 2023.
How much cash does Agora (API) have as of September 30, 2024?
Agora had $362.6 million in total cash, cash equivalents, bank deposits and financial products as of September 30, 2024.
