Agora, Inc. Announces US$200 Million Share Repurchase Program

Rhea-AI Summary

Agora, Inc. (NASDAQ: API) announced a new share repurchase program, allowing the company to buy back up to US$200 million of its Class A ordinary shares over the next 12 months. This initiative highlights the Board's confidence in Agora's fundamentals and long-term growth strategy. The program is expected to enhance shareholder value while still permitting investment in the company's technology and business expansion. Repurchases will occur in the open market and may be adjusted or suspended based on market conditions.

Positive

• Authorization of a share repurchase program totaling US$200 million demonstrates confidence in the company's fundamentals.
• Shareholder value expected to increase through buybacks.
• Strong cash position allows for continued investment in technology and business expansion.

Negative

• None.

SANTA CLARA, Calif., Feb. 22, 2022 (GLOBE NEWSWIRE) -- Agora, Inc. (NASDAQ: API) (“Agora”), a pioneer and leading platform for real-time engagement APIs, today announced that its board of directors (the “Board”) has authorized a share repurchase program under which Agora may repurchase up to US$200 million of its Class A ordinary shares in the form of American depositary shares over the next 12 months, subject to relevant rules under the Securities Exchange Act of 1934, as amended, and Agora’s insider trading policy.

“The share repurchase program demonstrates the Board’s confidence in the fundamentals, strategies and long-term growth potential of Agora,” commented Tony Zhao, founder, chairman, and CEO of Agora. “It reflects our commitment to enhancing shareholder value, and our strong cash position will enable us to continue to invest in our technology and business expansion at the same time.”

The share repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Board will review the share repurchase program periodically and may authorize adjustment of its terms and size or suspend or discontinue the program. Agora expects to fund repurchases made under this program from its existing cash balance.

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 Agora’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. These forward-looking statements are based on Agora’s current expectations and involve risks and uncertainties. Agora’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; Agora’s ability to manage its growth and expand its operations; the continued impact of the COVID-19 pandemic on global markets and Agora’s business, operations and customers; Agora’s ability to attract new developers and convert them into customers; Agora’s ability to retain existing customers and expand their usage of Agora’s platform and products; Agora’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; Agora’s fluctuating operating results; competition; the effect of broader technological and market trends on Agora’s business and prospects; general economic conditions and their impact on customer and end-user demand; and other risks and uncertainties included elsewhere in our filings with the Securities and Exchange Commission, 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 Agora undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

About Agora

Agora’s mission is to make real-time engagement ubiquitous, allowing everyone to interact with anyone, in any app, anytime and anywhere. Agora’s cloud platform provides developers simple, flexible and powerful application programming interfaces, or APIs, to embed real-time video, voice and chat experiences into their applications. Agora maintains dual headquarters in Shanghai, China and Santa Clara, California.

For more information, please visit: www.agora.io.

FAQ

What is the purpose of Agora's share repurchase program?

The share repurchase program aims to enhance shareholder value and reflects the Board's confidence in the company's long-term growth potential.

How much is Agora planning to repurchase under the program?

Agora plans to repurchase up to US$200 million of its Class A ordinary shares.

When will Agora's share repurchase program take place?

The program will occur over the next 12 months, subject to market conditions and applicable regulations.

How will Agora fund the share repurchases?

Agora expects to fund the repurchases using its existing cash balance.

What impact might the share repurchase have on Agora's stock price?

The share repurchase could potentially increase Agora's stock price by reducing the number of shares in circulation and indicating strong company fundamentals.