Agora, Inc. Reports Financial Results for Second Quarter 2024
Agora, Inc. (NASDAQ: API), a leader in real-time engagement technology, has announced its unaudited financial results for the second quarter, which concluded on June 30, 2024.
“It’s encouraging to see that both Agora and Shengwang experienced year-on-year revenue growth, even amidst challenging macroeconomic conditions this quarter. Our ongoing innovation has played a key role in enabling new applications and improving the quality and value of our existing services,” stated Tony Zhao, the founder, chairman, and CEO of Agora, Inc.
“Recently, we have supported our clients in launching conversational AI applications across various sectors such as AI companions, productivity tools, language education, and customer support. These initiatives have shown strong user adoption and engagement trends. I believe that the integration of real-time engagement with conversational AI will be a major growth driver for our business in the future.”
Highlights from Q2 2024
- Total revenues: $34.2 million, reflecting a 0.5% increase from $34.0 million in Q2 2023.
- Agora revenues: $15.6 million for the quarter, representing a 2.0% growth from $15.3 million in the same quarter last year.
- Shengwang revenues: RMB131.9 million ($18.6 million), showing a slight increase of 0.3% from RMB131.5 million ($18.7 million) in Q2 2023.
- Active Customers: Agora’s active customer count rose to 1,672, a 7.2% increase from 1,560 year-over-year, while Shengwang's active customers decreased to 3,774, down by 5.5% from last year's 3,992.
- Dollar-Based Net Retention Rates: Agora reported a rate of 92%, while Shengwang's rate stood 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 improvement from a net loss of $45.3 million in Q2 2023. Excluding share-based compensation and other adjustments, the 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 was $7.9 million, worsening from the negative $5.6 million reported the previous year.
- Total cash and equivalents: $371.0 million as of June 30, 2024.
Revenue Breakdown for Q2 2024
In the second quarter of 2024, Agora reported total revenues of $34.2 million, reflecting a modest increase of 0.5% compared to the previous year. Agora’s revenue was $15.6 million, driven by business expansion and growth in sectors like live shopping. The Shengwang division generated revenues of RMB131.9 million (approximately $18.6 million), primarily supported by advancements in its Internet of Things sector.
Cost of Revenues and Profit Margins
The company’s cost of revenues rose to $13.0 million this quarter, marking a 3.8% increase compared to $12.5 million year-over-year. Consequently, the gross profit stood at $21.2 million, with a gross margin of 62.0%, slightly down from 63.3% in the same quarter last year.
Operating Expenses
Operating expenses decreased to $32.6 million, down 14.4% from $38.1 million during the same period last 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 as a result of reduced personnel expenses.
- General and Administrative: Expenses also declined by 10.8%, totaling $8.2 million.
Investment and Future Outlook
Looking forward, Agora expects total revenues to be between $31.5 million and $33.5 million for the third quarter of 2024. This forecast accounts for the planned discontinuation of certain low-profit products that previously contributed around $2.4 million to revenues this time last year.
Additionally, the company will host a conference call at 6 p.m. Pacific Time / 9 p.m. Eastern Time on the day of the results announcement. Participants are encouraged to log in early to ensure they receive all relevant information shared during the call.
About Agora, Inc.
Based in Santa Clara, California, Agora, Inc. is a pioneer and global leader in Real-Time Engagement Platform-as-a-Service (PaaS). The company empowers developers with robust APIs that facilitate the seamless integration of voice, video, interactive live-streaming, and other AI capabilities into their applications.
Contact Information
For more information about 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, reflecting 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 last year.
3. What was Agora's net loss for Q2 2024?
In Q2 2024, Agora reported a net loss of $9.2 million, a significant improvement 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.
