Agora, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

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$36.0 million in Q4 2023 [5][6] - Agora's revenue was $17.4 million, an increase of 13.7$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$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$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$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$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$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$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$31 million and $33 million, compared to$29.7 million in Q1 2024, excluding revenues from certain end-of-sale low-margin products [30]