Agora, Inc. Financial Results for Second Quarter 2024
Agora, Inc. (NASDAQ: API), a pioneer and leader in real-time engagement technology, has released its unaudited financial results for the second quarter ending June 30, 2024.
“It is encouraging to observe that both Agora and Shengwang achieved year-on-year revenue growth despite the challenging macroeconomic conditions this quarter. This success has been facilitated by our continuous innovation aimed at enabling new applications and enhancing the quality and value of our existing offerings,” commented Tony Zhao, the founder, chairman, and CEO of Agora, Inc.
“Recently, we have assisted our clients in launching conversational AI applications across various fields including AI companions, productivity tools, language teaching, and customer support, all of which have demonstrated strong user adoption and engagement trends. It is my belief that the convergence of real-time engagement and conversational AI will be a significant growth driver for our business moving forward.”
Key Highlights of Q2 2024
- Total revenues: $34.2 million, up by 0.5% from $34.0 million in Q2 2023.
- Agora revenues: $15.6 million for the quarter, reflecting a growth of 2.0% from $15.3 million in the same quarter last year.
- Shengwang revenues: RMB131.9 million ($18.6 million), representing a marginal increase of 0.3% from RMB131.5 million ($18.7 million) in Q2 2023.
- Active Customers: Agora’s active customer count increased to 1,672, a 7.2% rise from 1,560 year-over-year; however, Shengwang saw a decrease to 3,774 active customers, down by 5.5% from last year's 3,992.
- Dollar-Based Net Retention Rates: Agora reports a rate of 92% while Shengwang stands at 79% for the trailing 12-month period ending June 30, 2024.
- Net loss: The company recorded a net loss of $9.2 million, a significant reduction from a net loss of $45.3 million in Q2 2023. Excluding share-based compensation and other adjustments, non-GAAP net loss was $6.0 million compared to $6.6 million in the same quarter last year.
- Free Cash Flow: The negative value stood at $7.9 million, worsening from the previous year's negative $5.6 million.
- Total cash and equivalents: $371.0 million as of June 30, 2024.
Revenue Breakdown for Q2 2024
In the second quarter of 2024, total revenues were reported at $34.2 million, reflecting a minor increase of 0.5% compared to the prior year. Agora’s revenue was $15.6 million, which was fueled by an expanding business and growth in sectors such as live shopping. The Shengwang division generated revenues of RMB131.9 million (approximately $18.6 million), primarily supported by growth in its Internet of Things sector.
Cost of Revenues and Profit Margins
The company’s cost of revenues increased to $13.0 million in this quarter, marking a 3.8% rise compared to $12.5 million year-over-year. Gross profit subsequently stood at $21.2 million, with a gross margin of 62.0%, a slight decrease from 63.3% in the same quarter prior.
Operating Expenses
Operating expenses fell to $32.6 million, a 14.4% decrease from $38.1 million for the same duration the previous year.
- Research and Development: Expenses decreased by 10.6% to $18.1 million due to workforce optimization.
- Sales and Marketing: Costs fell by 27.4% to $6.3 million through reduced personnel expenses.
- General and Administrative: Expenses also dipped by 10.8%, totaling $8.2 million.
Investment and Future Outlook
Looking ahead, Agora anticipates total revenues in the range of $31.5 million to $33.5 million for the third quarter of 2024. This forecast takes into account the planned discontinuation of certain low-profit products which previously contributed approximately $2.4 million to revenues this time last year.
Moreover, the company is set to hold a conference call at 6 p.m. Pacific Time / 9 p.m. Eastern Time, on the day of the results announcement. Interested participants are encouraged to log in early to ensure they do not miss any information shared during the call.
About Agora, Inc.
Agora, Inc. is headquartered in Santa Clara, California. As a pioneer and global leader in Real-Time Engagement Platform-as-a-Service (PaaS), the company empowers developers with robust APIs that enable seamless integration of voice, video, interactive live-streaming, and other AI capabilities into applications.
Contact Information
For more information on Agora's products and services or to stay updated with the latest news, businesses and individuals can visit the official Agora website.
Frequently Asked Questions
1. What were Agora, Inc.'s revenues for Q2 2024?
Agora's total revenues for the second quarter of 2024 were $34.2 million, marking a 0.5% increase compared to the previous year.
2. How did Agora's active customer count change?
As of June 30, 2024, Agora had 1,672 active customers, which is a 7.2% increase from 1,560 in the same quarter the prior year.
3. What was Agora's net loss for Q2 2024?
In Q2 2024, Agora reported a net loss of $9.2 million, significantly down from a net loss of $45.3 million in Q2 2023.
4. What are the expectations for Q3 2024?
For the third quarter of 2024, Agora expects total revenues to range between $31.5 million and $33.5 million, influenced by the planned end of sales for certain low-margin products.
5. When will Agora host its next earnings call?
Agora will hold its next earnings call at 6 p.m. Pacific Time / 9 p.m. Eastern Time on the day the financial results are announced. Participants are advised to log in early to the event.
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