Currency Risk Management - The company does not hedge against currency risk, which may lead to fluctuations in revenue-generating transactions and expenses [653]. - A 10% depreciation of Renminbi against the U.S. dollar would result in a change of the company's holding U.S. dollar equivalents of US$1.6 million for cash and cash equivalents [656]. - The company has not engaged in any foreign currency transactions that would require it to obtain the most favorable exchange rates, which may lead to potential losses [665]. Cash and Cash Equivalents - The company had Renminbi-denominated cash and cash equivalents of RMB123.0 million as of December 31, 2024 [656]. - The company does not expect significant changes in the fair value of cash and short-term investments due to interest rate fluctuations [657]. Accounts Receivable Management - The company regularly updates its allowance estimates for accounts receivable based on various factors, including historical collection trends and current economic conditions [486]. - Changes in estimates and assumptions regarding accounts receivable could materially affect the financial statements [486]. - The company assesses expected credit losses based on various factors, including the age of accounts receivable balances and customer risk characteristics [484]. - The company has not deemed certain accounting estimates as critical, although they could still have a material impact on financial results [483]. ADS Program Costs - The company received reimbursement of US$0.8 million from the depositary for costs and expenses related to the establishment and maintenance of the ADS program for the year ended December 31, 2024 [666].

New partnerships with Beken and Robopoet showcase the future of interactive toys and connected devices SANTA CLARA, Calif., March 10, 2025 /PRNewswire/ -- Agora, Inc. (NASDAQ: API), a global leader in real-time engagement solutions, is expanding into AI-powered robotics and interactive toys with its new ConvoAI Device Kit. This breakthrough solution—developed in partnership with chip-maker Beken—delivers an all-in-one toolkit that empowers developers and manufacturers to create intelligent, voice-driven int ...

The new solution allows developers to use any AI model to create voice agents optimized forultra-low latency and natural conversation flow SANTA CLARA, Calif., March 5, 2025 /PRNewswire/ -- Agora, Inc. (NASDAQ: API), a leading platform for real-time engagement APIs, today announced the launch of its Conversational AI Engine, an advanced solution enabling developers to create interactive voice experiences with any AI model. Built for seamless real-time engagement, the engine ensures ultra-low latency respons ...

Financial Data and Key Metrics Changes - Total revenue in Q4 2024 was $34.5 million, up 4% year over year, excluding revenues from certain end-of-sale low-margin products [7][20] - Core revenues were $17.4 million in Q4, an increase of 10.8% quarter over quarter and 13.7% year over year [20] - Gross margin for Q4 was 66.6%, slightly decreased by 0.1% quarter over quarter and 0.8% year over year [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][27] - Operating cash flow was $4.5 million in Q4, compared to $3.7 million last year [28] 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 base net retention rate was 95% for Agora and 79% for Xiong Wang, excluding revenues from certain end-of-sale products [22] Market Data and Key Metrics Changes - Demand in the China market is primarily driven by IoT and digital transformation, while the global market sees growth from live commerce and retail economy [36] - The company noted significant interest in AI-related technologies, particularly in applications for companionship and education [38][54] Company Strategy and Development Direction - The company aims to maintain operational efficiency and deliver sustainable profitable growth, with a focus on emerging market opportunities in generative AI [6][30] - The launch of the conversational AI engine is expected to drive growth by enabling developers to create interactive voice experiences [13][17] Management Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced over the past few years, including the pandemic and regulatory changes, but emphasized a return to profitability [6][27] - The company expects total revenues for Q1 2025 to be between $31 million and $33 million, reflecting a year-on-year growth rate of 7.7% [30] Other Important Information - The board has authorized a 12-month extension of the share repurchase program through February 28, 2026, reflecting confidence in the company's long-term growth potential [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 focused on IoT and digital transformation, while globally, live commerce and retail economy are key growth drivers [36] Question: Increase in AI-related demand and application scenarios - There is growing interest in AI technologies, particularly for voice AI applications in companionship and education [38][54] 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 the creator economy, with optimism for continued growth in 2025 [49][51] Question: Impact of DeepSeq on demand for voice and multimodal interaction - Management sees significant potential in voice AI applications and plans to focus on practical use cases in the next two years [56][59]

• Agora: 1,723 as of December 31, 2024, an increase of 2.4% from 1,683 as of December 31, 2023. • Shengwang: 1,979 as of December 31, 2024, excluding those for Easemob, an increase of 7.8% from 1,835 as of December 31, 2023. • Dollar-Based Net Retention Rate • Agora: 95% for the trailing 12-month period ended December 31, 2024. • Shengwang: 79% for the trailing 12-month period ended December 31, 2024. Fiscal Year 2024 Highlights Fourth Quarter 2024 Financial Results Agora, Inc. Reports Fourth Quarter and Fi ...

Core Insights - Agora, Inc. achieved GAAP profitability in Q4 2024, driven by revenue growth and disciplined cost management, with a focus on enhancing operational efficiency for sustainable growth [2][5][12] - The company launched a Conversational AI Engine aimed at improving real-time voice interactions, which is expected to accelerate the adoption of conversational AI across various industries [2] Fourth Quarter 2024 Highlights - Total revenues for Q4 2024 were $34.5 million, a decrease of 4.4% from $36.0 million in Q4 2023 [5][6] - Agora's revenue was $17.4 million, an increase of 13.7% from $15.3 million in Q4 2023, attributed to business expansion in sectors like live shopping [5][6] - Shengwang's revenue was RMB122.2 million ($17.1 million), a decrease of 17.6% from RMB148.3 million ($20.7 million) in Q4 2023 [5][6] - Active customers for Agora increased by 2.4% to 1,723 as of December 31, 2024 [5] - Dollar-Based Net Retention Rate for Agora was 95% for the trailing 12-month period [5] Fiscal Year 2024 Highlights - Total revenues for 2024 were $133.3 million, a decrease of 5.9% from $141.5 million in 2023 [5][14] - Agora's revenue increased by 5.7% to $64.5 million in 2024, while Shengwang's revenue decreased by 13.7% to RMB489.6 million ($68.8 million) [5][14] - Net loss for 2024 was $42.7 million, significantly improved from a loss of $87.2 million in 2023 [5][24] - Free cash flow for 2024 was negative $16.7 million, compared to negative $14.5 million in 2023 [5] Financial Metrics - Gross profit for Q4 2024 was $22.9 million, an increase of 1.2% from $22.7 million in Q4 2023, with a gross margin of 66.6% [8][12] - Operating expenses in Q4 2024 were $28.5 million, a decrease of 8.8% from $31.2 million in Q4 2023 [9][12] - Net cash provided by operating activities for Q4 2024 was $4.5 million, compared to $3.7 million in Q4 2023 [5][12] Share Repurchase Program - The company repurchased approximately 1.3 million Class A ordinary shares for about $1.4 million in Q4 2024, representing 0.7% of its $200 million share repurchase program [27][28] - As of December 31, 2024, the company had repurchased approximately 130.6 million Class A ordinary shares for about $115.2 million, representing 57.6% of its share repurchase program [28][29] Financial Outlook - The company expects total revenues for Q1 2025 to be between $31 million and $33 million, compared to $29.7 million in Q1 2024, excluding revenues from certain end-of-sale low-margin products [30]

Core Viewpoint - Agora, Inc. is set to release its financial results for Q4 and the fiscal year 2024 on February 24, 2025, after U.S. market close, followed by a conference call to discuss the results [1][2]. Company Overview - Agora, Inc. is a pioneer and leader in Real-Time Engagement Platform-as-a-Service (PaaS), providing developers with APIs for real-time voice, video, interactive live-streaming, chat, whiteboard, and AI capabilities [3]. - The company operates two independent businesses: Agora and Shengwang, with Agora headquartered in Santa Clara, California, and Shengwang based in Shanghai, China [3][4].

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse before exiting a trade [1][2]. - A stock's recent price strength can be assessed through a unique short-term trading strategy that identifies stocks with strong fundamentals and bullish indicators [3]. Group 2: Company Spotlight - Agora, Inc. (API) - Agora, Inc. has shown a solid price increase of 86.5% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 38.9% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, API is trading at 82.8% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - API holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988 [7]. Group 4: Investment Strategy - In addition to API, there are other stocks that meet the criteria of the "Recent Price Strength" screen, which can help investors identify potential winning stocks [8]. - The effectiveness of stock-picking strategies can be backtested using tools like the Zacks Research Wizard, which offers insights into successful strategies [9].

Group 1: Company Overview - Agora, Inc. Sponsored ADR (API) is part of the Business Services group, which consists of 292 companies and ranks 8 in the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions, with Agora currently holding a Zacks Rank of 2 (Buy) [3] Group 2: Performance Metrics - The Zacks Consensus Estimate for API's full-year earnings has increased by 600% in the past quarter, indicating improved analyst sentiment [4] - Year-to-date, API has returned 25.7%, outperforming the average gain of 25.6% for the Business Services group [4] - In the Technology Services industry, which includes 156 stocks, API has slightly underperformed with year-to-date returns compared to the industry average gain of 62.4% [6] Group 3: Comparative Analysis - Another stock in the Business Services sector, Arbe Robotics Ltd. (ARBE), has outperformed with a year-to-date return of 44.1% and a Zacks Rank of 2 (Buy) [5] - Both Agora, Inc. and Arbe Robotics are expected to maintain solid performance moving forward [7]

Company Overview - The company, Agora, is a leading real-time audio and video communication technology provider founded in 2014 and headquartered in Shanghai, China [3] - Agora specializes in offering high-quality, low-latency real-time audio and video communication solutions for developers, widely used in online education, social entertainment, enterprise collaboration, live streaming, and gaming [3] - The core product is the real-time audio and video API, supporting cross-platform (iOS, Android, Web) functionalities such as audio and video calls, interactive live streaming, and real-time messaging [3] - Agora's cloud-based technology provides global coverage, low latency, and high stability, making it ideal for scenarios requiring high real-time performance [3] Financial and Market Data - The stock price of Agora is $5.06 as of December 3, 2024 [3] - The market capitalization stands at $466 million [3] - The company has 92.075 million shares outstanding [3] - The 52-week high and low prices are $6.49 and $1.654, respectively [3] Strategic Collaboration - Agora has partnered with OpenAI to integrate OpenAI's AI technology with Agora's real-time audio and video communication solutions [4] - The collaboration aims to enhance voice and video communication experiences, improve service quality, and explore new application scenarios [4] - A conversational AI SDK has been launched, allowing developers to incorporate AI-driven voice editing experiences into any application [4] - Both Agora and OpenAI will charge developers based on usage [4] Management Commitment - The company's management team, including CEO Zhao Bin, CTO Zhong Sheng, CFO Wang Jingbo, and COO Liu Bin, has voluntarily entered a lock-up period starting December 2, 2024, and ending December 31, 2025 [5] - This move demonstrates the management's confidence in the company's future development [5]