Agora, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Agora Inc. (API) reported Q4 2024 financial results, achieving GAAP profitability with net income of $0.2 million, compared to a net loss of $2.6 million in Q4 2023. Total revenues were $34.5 million, down 4.4% year-over-year.
The company's Agora segment saw revenues increase 13.7% to $17.4 million, while Shengwang segment revenues decreased 17.6% to $17.1 million. Gross margin improved to 66.6%, up from 62.9% in Q4 2023.
For full-year 2024, total revenues decreased 5.9% to $133.3 million, with a net loss of $42.7 million, improved from $87.2 million loss in 2023. The company launched a new Conversational AI Engine and expects Q1 2025 revenues between $31-33 million.
Agora Inc. (API) ha riportato i risultati finanziari del quarto trimestre 2024, raggiungendo la redditività GAAP con un utile netto di 0,2 milioni di dollari, rispetto a una perdita netta di 2,6 milioni di dollari nel quarto trimestre 2023. I ricavi totali sono stati di 34,5 milioni di dollari, in calo del 4,4% rispetto all'anno precedente.
Il segmento Agora ha visto un aumento dei ricavi del 13,7%, raggiungendo 17,4 milioni di dollari, mentre i ricavi del segmento Shengwang sono diminuiti del 17,6%, scendendo a 17,1 milioni di dollari. Il margine lordo è migliorato al 66,6%, rispetto al 62,9% del quarto trimestre 2023.
Per l'intero anno 2024, i ricavi totali sono diminuiti del 5,9%, raggiungendo 133,3 milioni di dollari, con una perdita netta di 42,7 milioni di dollari, migliorata rispetto a una perdita di 87,2 milioni di dollari nel 2023. L'azienda ha lanciato un nuovo motore di intelligenza artificiale conversazionale e prevede ricavi per il primo trimestre 2025 compresi tra 31 e 33 milioni di dollari.
Agora Inc. (API) informó los resultados financieros del cuarto trimestre de 2024, logrando rentabilidad GAAP con una ganancia neta de 0,2 millones de dólares, en comparación con una pérdida neta de 2,6 millones de dólares en el cuarto trimestre de 2023. Los ingresos totales fueron de 34,5 millones de dólares, una disminución del 4,4% interanual.
El segmento Agora vio un aumento en los ingresos del 13,7%, alcanzando 17,4 millones de dólares, mientras que los ingresos del segmento Shengwang disminuyeron un 17,6%, bajando a 17,1 millones de dólares. El margen bruto mejoró al 66,6%, frente al 62,9% en el cuarto trimestre de 2023.
Para el año completo de 2024, los ingresos totales disminuyeron un 5,9% a 133,3 millones de dólares, con una pérdida neta de 42,7 millones de dólares, mejorando respecto a una pérdida de 87,2 millones de dólares en 2023. La compañía lanzó un nuevo motor de IA conversacional y espera ingresos entre 31 y 33 millones de dólares para el primer trimestre de 2025.
Agora Inc. (API)는 2024년 4분기 재무 결과를 보고하며, GAAP 기준으로 20만 달러의 순이익을 달성하였고, 2023년 4분기에는 260만 달러의 순손실을 기록했습니다. 총 수익은 3,450만 달러로, 전년 대비 4.4% 감소했습니다.
아고라 부문의 수익은 13.7% 증가하여 1,740만 달러에 이르렀고, 셴왕 부문의 수익은 17.6% 감소하여 1,710만 달러로 줄어들었습니다. 총 마진은 66.6%로 개선되어, 2023년 4분기의 62.9%에서 상승했습니다.
2024년 전체 연간 수익은 5.9% 감소하여 1억 3,330만 달러에 이르렀고, 4,270만 달러의 순손실을 기록하였으며, 이는 2023년의 8,720만 달러 손실에서 개선된 수치입니다. 회사는 새로운 대화형 AI 엔진을 출시하였으며, 2025년 1분기 수익은 3,100만에서 3,300만 달러 사이로 예상하고 있습니다.
Agora Inc. (API) a annoncé les résultats financiers du quatrième trimestre 2024, atteignant la rentabilité selon les normes GAAP avec un bénéfice net de 0,2 million de dollars, contre une perte nette de 2,6 millions de dollars au quatrième trimestre 2023. Les revenus totaux se sont élevés à 34,5 millions de dollars, en baisse de 4,4 % par rapport à l'année précédente.
Le segment Agora a enregistré une augmentation des revenus de 13,7 %, atteignant 17,4 millions de dollars, tandis que les revenus du segment Shengwang ont diminué de 17,6 %, tombant à 17,1 millions de dollars. La marge brute s'est améliorée à 66,6 %, contre 62,9 % au quatrième trimestre 2023.
Pour l'année complète 2024, les revenus totaux ont diminué de 5,9 % pour atteindre 133,3 millions de dollars, avec une perte nette de 42,7 millions de dollars, améliorée par rapport à une perte de 87,2 millions de dollars en 2023. L'entreprise a lancé un nouveau moteur d'IA conversationnelle et prévoit des revenus pour le premier trimestre 2025 compris entre 31 et 33 millions de dollars.
Agora Inc. (API) hat die Finanzzahlen für das vierte Quartal 2024 veröffentlicht und dabei GAAP-Rentabilität mit einem Nettogewinn von 0,2 Millionen Dollar erzielt, im Vergleich zu einem Nettverlust von 2,6 Millionen Dollar im vierten Quartal 2023. Die Gesamterlöse betrugen 34,5 Millionen Dollar, was einem Rückgang von 4,4% im Jahresvergleich entspricht.
Der Agora-Segment verzeichnete einen Anstieg der Erlöse um 13,7% auf 17,4 Millionen Dollar, während die Erlöse des Shengwang-Segments um 17,6% auf 17,1 Millionen Dollar zurückgingen. Die Bruttomarge verbesserte sich auf 66,6%, gegenüber 62,9% im vierten Quartal 2023.
Für das Gesamtjahr 2024 sanken die Gesamterlöse um 5,9% auf 133,3 Millionen Dollar, mit einem Nettverlust von 42,7 Millionen Dollar, was eine Verbesserung gegenüber einem Verlust von 87,2 Millionen Dollar im Jahr 2023 darstellt. Das Unternehmen hat eine neue Conversational AI Engine eingeführt und erwartet für das erste Quartal 2025 Erlöse zwischen 31 und 33 Millionen Dollar.
- Achieved GAAP profitability in Q4 2024 with $0.2M net income
- Agora segment revenue grew 13.7% YoY to $17.4M
- Gross margin improved to 66.6% from 62.9% YoY
- Operating loss reduced significantly from $87.3M in 2023 to $53.3M in 2024
- Active customers increased: Agora +2.4%, Shengwang +7.8%
- Total revenue declined 4.4% YoY to $34.5M in Q4 2024
- Full-year revenue decreased 5.9% to $133.3M
- Dollar-Based Net Retention Rate below 100%: Agora 95%, Shengwang 79%
- Negative free cash flow of $16.7M in 2024
- Investment loss of $3.3M in 2024
Insights
Agora's Q4 2024 results mark a pivotal transformation with the achievement of GAAP profitability, driven by a dual strategy of revenue optimization and cost discipline. The 13.7% growth in core Agora segment revenue to
The improvement in gross margin to
The launch of the Conversational AI Engine positions Agora at the forefront of the voice-enabled AI revolution. This strategic move addresses a critical gap in the market, as most large language models lack optimized voice interaction capabilities. The timing is particularly advantageous given the increasing demand for natural voice interfaces across industries.
The company's robust balance sheet, with
The Q1 2025 revenue guidance of
SANTA CLARA, Calif., Feb. 24, 2025 (GLOBE NEWSWIRE) -- Agora, Inc. (NASDAQ: API) (the “Company”), a pioneer and leader in real-time engagement technology, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.
“We are pleased to announce that we achieved GAAP profitability in the fourth quarter, driven by revenue growth from new use cases and disciplined cost management. As we move into 2025, we remain focused on enhancing operational efficiency to deliver sustainable and profitable growth,” said Tony Zhao, Founder, Chairman, and CEO of Agora, Inc. “Generative AI represents a transformative opportunity for us, particularly in enabling real-time, voice-based interactions between humans and AI models. Many large language models don’t yet offer voice interaction capabilities, and those that do haven’t optimized the experience. To address this gap, we are excited to announce the launch of our Conversational AI Engine, a solution that empowers developers to build interactive voice experiences with any large language model. Our solution is designed to deliver natural conversation dynamics, including intelligent pause and interruption handling, advanced voice processing features such as selective attention and noise suppression, as well as ultra-low latency. We believe this innovation will accelerate the adoption of conversational AI across diverse industries and serve as a key driver of our future growth.”
Fourth Quarter 2024 Highlights
- Total revenues for the quarter were
$34.5 million , a decrease of4.4% from$36.0 million in the fourth quarter of 2023, which included revenue from certain end-of-sale products of$2.7 million .- Agora:
$17.4 million for the quarter, an increase of13.7% from$15.3 million in the fourth quarter of 2023. - Shengwang: RMB122.2 million (
$17.1 million ) for the quarter, a decrease of17.6% from RMB148.3 million ($20.7 million ) in the fourth quarter of 2023, which included revenue from certain end-of-sale products of RMB19.0 million ($2.7 million ).
- Agora:
- Active Customers
- 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.
- Agora: 1,723 as of December 31, 2024, an increase of
- 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.
- Agora:
- Net income for the quarter was
$0.2 million , compared to net loss of$2.6 million in the fourth quarter of 2023. After excluding share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets and income tax related to acquired intangible assets, non-GAAP net income for the quarter was$1.8 million , compared to$1.4 million in the fourth quarter of 2023. - Total cash, cash equivalents, bank deposits and financial products issued by banks as of December 31, 2024 was
$363.8 million . - Net cash provided by operating activities for the quarter was
$4.5 million , compared to$3.7 million in the fourth quarter of 2023. Free cash flow for the quarter was$4.3 million , compared to$3.4 million in the fourth quarter of 2023.
Fiscal Year 2024 Highlights
- Total revenues in 2024 were
$133.3 million , a decrease of5.9% from$141.5 million in 2023. Total revenues in 2024 included$6.6 million from certain end-of-sale products, compared to$10.7 million in 2023.- Agora:
$64.5 million in 2024, an increase of5.7% from$61.0 million in 2023. - Shengwang: RMB489.6 million (
$68.8 million ) in 2024, a decrease of13.7% from RMB567.1 million ($80.5 million ) in 2023. Total revenues for Shengwang in 2024 included RMB47.4 million ($6.6 million ) from certain end-of-sale products, compared to RMB75.3 million ($10.7 million ) in 2023.
- Agora:
- Net loss in 2024 was
$42.7 million , compared to$87.2 million in 2023. After excluding share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill, non-GAAP net loss in 2024 was$19.4 million , compared to$29.9 million in 2023. - Net cash used in operating activities in 2024 was
$14.1 million , compared to$13.6 million in 2023. Free cash flow in 2024 was negative$16.7 million , compared to negative$14.5 million in 2023.
Fourth Quarter 2024 Financial Results
Revenues
Total revenues were
Cost of Revenues
Cost of revenues was
Gross Profit and Gross Margin
Gross profit was
Operating Expenses
Operating expenses were
- Research and development expenses were
$14.8 million in the fourth quarter of 2024, a decrease of9.3% from$16.3 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from$2.0 million in the fourth quarter of 2023 to$1.2 million in the fourth quarter of 2024. - Sales and marketing expenses were
$7.3 million in the fourth quarter of 2024, an increase of3.1% from$7.1 million in the same period last year, primarily due to an increase in annual RTE conference expenses. - General and administrative expenses were
$6.4 million in the fourth quarter of 2024, a decrease of18.4% from$7.9 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from$1.2 million in the fourth quarter of 2023 to$0.4 million in the fourth quarter of 2024.
Loss from Operations
Loss from operations was
Interest Income
Interest income was
Net Income (Loss)
Net income was
Net Income (Loss) per American Depositary Share attributable to Ordinary Shareholders
Basic and diluted net income per American Depositary Share (“ADS”)1 attributable to ordinary shareholders was
Fiscal Year 2024 Financial Results
Revenues
Total revenues in 2024 were
Cost of Revenues
Cost of revenues in 2024 was
Gross Profit and Gross Margin
Gross profit in 2024 was
Operating Expenses
Operating expenses in 2024 were
- Research and development expenses in 2024 were
$80.3 million , an increase of3.4% from$77.7 million in 2023, primarily due to restructuring and severance expenses in the third quarter of 2024, including share-based compensation of$9.0 million due to equity award cancellation and severance expenses of$3.6 million . - Sales and marketing expenses in 2024 were
$27.2 million , a decrease of19.8% from$34.0 million in 2023, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from$4.1 million in 2023 to$0.8 million in 2024. - General and administrative expenses in 2024 were
$32.8 million , a decrease of6.3% from$35.0 million in 2023, primarily due to a decrease in personnel costs as the Company optimized its global workforce, which was offset partially by restructuring and severance expenses in the third quarter of 2024, including share-based compensation of$2.4 million as a result of the equity award cancellation.
Loss from Operations
Loss from operations in 2024 was
Interest Income
Interest income in 2024 was
Investment Loss
Investment loss in 2024 was
Other income
Other income in 2024 was
Losses from equity in affiliates
Losses from equity in affiliates in 2024 were
Net Loss
Net loss in 2024 was
Net Loss per ADS attributable to ordinary shareholders
Net loss per ADS attributable to ordinary shareholders in 2024 was
Share Repurchase Program
During the three months ended December 31, 2024, the Company repurchased approximately 1.3 million of its Class A ordinary shares (equivalent to approximately 0.3 million ADSs) for approximately US
As of December 31, 2024, the Company had repurchased approximately 130.6 million of its Class A ordinary shares (equivalent to approximately 32.7 million ADSs) for approximately US
As of December 31, 2024, the Company had 373.3 million ordinary shares (equivalent to approximately 93.3 million ADSs) outstanding, compared to 449.8 million ordinary shares (equivalent to approximately 112.5 million ADSs) outstanding as of January 31, 2022 before the share repurchase program commenced.
The board of directors has authorized an extension of the existing share repurchase program through February 28, 2026, with all other terms remaining unchanged.
Financial Outlook
Based on currently available information, the Company expects total revenues for the first quarter of 2025 to be between
Earnings Call
The Company will host a conference call to discuss the financial results at 5 p.m. Pacific Time / 8 p.m. Eastern Time on February 24, 2025. Details for the conference call are as follows:
Event title: Agora, Inc. 4Q 2024 Financial Results
The call will be available at https://edge.media-server.com/mmc/p/ca3ihsn6
Investors who want to hear the call should log on at least 15 minutes prior to the broadcast. Participants may register for the call with the link below.
https://register.vevent.com/register/BIaffae7deb01345b39b477ccdbc209daa
Please visit the Company’s investor relations website at https://investor.agora.io on February 24, 2025 to view the earnings release and accompanying slides prior to the conference call.
Use of Non-GAAP Financial Measures
The Company has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company uses these non-GAAP financial measures internally in analyzing its financial results and believe that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing its financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Besides free cash flow (as defined below), each of these non-GAAP financial measures represents the corresponding GAAP financial measure before share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill. The Company believes that such non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effects of such share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill that it includes in its cost of revenues, total operating expenses and net income (loss). The Company believes that all such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of its historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the tables captioned “Reconciliation of GAAP to Non-GAAP Measures” included at the end of this press release, and investors are encouraged to review the reconciliation.
Definitions of the Company’s non-GAAP financial measures included in this press release are presented below.
Non-GAAP Net Income (Loss)
Non-GAAP net income (loss) is defined as net income (loss) adjusted to exclude share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill.
Free Cash Flow
Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment (excluding the acquisition of land use right and the payment for the headquarters project). The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.
Operating Metrics
The Company also uses other operating metrics included in this press release and defined below to assess the performance of its business.
Active Customers
An active customer at the end of any period is defined as an organization or individual developer from which the Company generated more than
Dollar-Based Net Retention Rate
Dollar-Based Net Retention Rate is calculated for a trailing 12-month period by first identifying all customers in the prior 12-month period, and then calculating the quotient from dividing the revenue generated from such customers in the trailing 12-month period by the revenue generated from the same group of customers in the prior 12-month period. As the vast majority of revenue generated from Agora’s customers is denominated in U.S. dollars, while the vast majority of revenue generated from Shengwang’s customers is denominated in Renminbi, Dollar-Based Net Retention Rate is calculated in U.S. dollars for Agora and in Renminbi for Shengwang, which has substantially removed the impact of foreign currency translations. Shengwang excluded the revenues from certain end-of-sale products, Easemob’s CEC business and K12 academic tutoring sector. The Company believes Dollar-Based Net Retention Rate facilitates operating performance comparisons on a period-to-period basis.
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 the Company’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. Among other things, the Financial Outlook in this announcement contain forward-looking statements. These forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties. The Company’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; the Company’s ability to manage its growth and expand its operations; the continued impact of COVID-19 on global markets and the Company’s business, operations and customers; the Company’s ability to attract new developers and convert them into customers; the Company’s ability to retain existing customers and expand their usage of its platform and products; the Company’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; the Company’s fluctuating operating results; competition; the effect of broader technological and market trends on the Company’s business and prospects; general economic conditions and their impact on customer and end-user demand; and other risks and uncertainties included elsewhere in the Company’s filings with the Securities and Exchange Commission (“SEC”), 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 the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
About Agora, Inc.
Agora, Inc. is the Cayman Islands holding company of two independent divisions, under Agora brand and Shengwang brand, respectively, whose businesses are conducted through separate entities.
Headquartered in Santa Clara, California, Agora is a pioneer and global leader in Real-Time Engagement Platform-as-a-Service (PaaS), providing developers with simple, flexible, and powerful application programming interfaces, or APIs, to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications.
Headquartered in Shanghai, China, Shengwang is a pioneer and leading Real-Time Engagement PaaS provider in the China market.
For more information on Agora, please visit: www.agora.io
For more information on Shengwang, please visit: www.shengwang.cn
Agora, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in US$ thousands)
| As of | As of | |||
| December 31, | December 31, | |||
| 2024 | 2023 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | 27,083 | 36,894 | ||
| Short-term bank deposits | 168,327 | 86,924 | ||
| Short-term financial products issued by banks | 71,464 | 84,853 | ||
| Short-term investments | 2,787 | 7,983 | ||
| Restricted cash | 3,745 | 280 | ||
| Accounts receivable, net | 30,952 | 34,668 | ||
| Prepayments and other current assets | 22,593 | 8,779 | ||
| Contract assets | 1,099 | 1,048 | ||
| Total current assets | 328,050 | 261,429 | ||
| Property and equipment, net | 4,680 | 5,365 | ||
| Construction in progress for the headquarters project | 44,486 | 17,343 | ||
| Operating lease right-of-use assets | 3,866 | 4,011 | ||
| Intangible assets | 611 | 1,274 | ||
| Long-term bank deposits | 35,500 | 143,127 | ||
| Long-term financial products issued by banks | 61,400 | 20,000 | ||
| Long-term investments | 40,710 | 43,893 | ||
| Land use right, net | 161,395 | 167,246 | ||
| Other non-current assets | 18,956 | 10,907 | ||
| Total assets | 699,654 | 674,595 | ||
| Liabilities and shareholders’ equity | ||||
| Current liabilities: | ||||
| Accounts payable | 12,965 | 12,996 | ||
| Advances from customers | 8,738 | 7,765 | ||
| Taxes payable | 2,210 | 906 | ||
| Current operating lease liabilities | 1,749 | 2,447 | ||
| Accrued expenses and other current liabilities | 32,673 | 32,780 | ||
| Total current liabilities | 58,335 | 56,894 | ||
| Long-term operating lease liabilities | 1,922 | 1,726 | ||
| Deferred tax liabilities | 92 | 196 | ||
| Long-term borrowings for the headquarters project | 46,469 | 11,027 | ||
| Advance in relation to the headquarters project | 20,174 | - | ||
| Other non-current liabilities | 1 | 3 | ||
| Total liabilities | 126,993 | 69,846 | ||
| Shareholders’ equity: | ||||
| Class A ordinary shares | 39 | 39 | ||
| Class B ordinary shares | 8 | 8 | ||
| Additional paid-in-capital | 1,144,238 | 1,138,346 | ||
| Treasury shares, at cost | (72,739 | ) | (79,716 | ) |
| Accumulated other comprehensive loss | (12,257 | ) | (10,027 | ) |
| Accumulated deficit | (486,628 | ) | (443,901 | ) |
| Total shareholders’ equity | 572,661 | 604,749 | ||
| Total liabilities and shareholders’ equity | 699,654 | 674,595 | ||
Agora, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited, in US$ thousands, except share and per ADS amounts)
| Three Month Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| Real-time engagement service revenues | 31,908 | 32,300 | 127,624 | 133,098 | |||||
| Real-time engagement on-premise solution and other revenues | 2,545 | 3,741 | 5,632 | 8,440 | |||||
| Total revenues | 34,453 | 36,041 | 133,256 | 141,538 | |||||
| Cost of revenues | 11,505 | 13,370 | 47,809 | 52,063 | |||||
| Gross profit | 22,948 | 22,671 | 85,447 | 89,475 | |||||
| Operating expenses: | |||||||||
| Research and development | 14,793 | 16,310 | 80,344 | 77,666 | |||||
| Sales and marketing | 7,276 | 7,055 | 27,220 | 33,958 | |||||
| General and administrative | 6,423 | 7,876 | 32,772 | 34,976 | |||||
| Total operating expenses | 28,492 | 31,241 | 140,336 | 146,600 | |||||
| Other operating income | 664 | 214 | 1,578 | 1,729 | |||||
| Impairment of goodwill | - | - | - | (31,928 | ) | ||||
| Loss from operations | (4,880 | ) | (8,356 | ) | (53,311 | ) | (87,324 | ) | |
| Exchange gain (loss) | 60 | 40 | 168 | (151 | ) | ||||
| Interest income | 3,697 | 4,830 | 16,941 | 18,836 | |||||
| Interest expense | (2 | ) | (20 | ) | (253 | ) | (20 | ) | |
| Investment income (loss) | 705 | (29 | ) | (3,328 | ) | (18,526 | ) | ||
| Losses from extinguishment of convertible note | - | - | - | (1,230 | ) | ||||
| Other income | 793 | 1,099 | 793 | 1,649 | |||||
| Income (loss) before income taxes | 373 | (2,436 | ) | (38,990 | ) | (86,766 | ) | ||
| Income taxes | (109 | ) | (99 | ) | (258 | ) | (422 | ) | |
| Losses from equity in affiliates | (106 | ) | (76 | ) | (3,479 | ) | (31 | ) | |
| Net income (loss) | 158 | (2,611 | ) | (42,727 | ) | (87,219 | ) | ||
| Net income (loss) attributable to ordinary shareholders | 158 | (2,611 | ) | (42,727 | ) | (87,219 | ) | ||
| Other comprehensive income (loss): | |||||||||
| Foreign currency translation adjustments | (4,350 | ) | 2,678 | (2,231 | ) | (3,418 | ) | ||
| Gain on available-for-sale debt securities | - | - | - | 1,385 | |||||
| Total comprehensive (loss) income attributable to ordinary shareholders | (4,192 | ) | 67 | (44,958 | ) | (89,252 | ) | ||
| Net income (loss) per ADS attributable to ordinary shareholders, basic and diluted | 0.002 | (0.03 | ) | (0.46 | ) | (0.88 | ) | ||
| Weighted-average shares used in computing net income (loss) per ADS attributable to ordinary shareholders: | |||||||||
| Basic | 375,058,357 | 379,033,868 | 373,122,317 | 398,384,385 | |||||
| Diluted | 402,004,818 | 379,033,868 | 373,122,317 | 398,384,385 | |||||
| Share-based compensation expenses included in: | |||||||||
| Cost of revenues | 28 | 46 | 212 | 621 | |||||
| Research and development expenses | 1,176 | 2,027 | 17,062 | 12,696 | |||||
| Sales and marketing expenses | (60 | ) | 440 | 778 | 4,145 | ||||
| General and administrative expenses | 353 | 1,197 | 4,685 | 7,150 | |||||
Agora, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in US$ thousands)
| Three Month Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||||
| Net income (loss) | 158 | (2,611 | ) | (42,727 | ) | (87,219 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
| Share-based compensation expenses | 1,497 | 3,710 | 22,737 | 24,612 | |||||
| Allowance for current expected credit losses | 1,465 | 1,688 | 8,728 | 7,046 | |||||
| Depreciation of property and equipment | 733 | 1,416 | 3,459 | 7,096 | |||||
| Amortization of intangible assets | 130 | 348 | 663 | 1,384 | |||||
| Amortization of land use right | 851 | 853 | 3,423 | 3,165 | |||||
| Deferred tax benefit | (20 | ) | (53 | ) | (102 | ) | (212 | ) | |
| Amortization of right-of-use asset and interest on lease liabilities | 541 | 717 | 2,576 | 2,935 | |||||
| Investment (income) loss | (705 | ) | 29 | 3,328 | 19,756 | ||||
| Losses from extinguishment of convertible note | - | - | - | (105 | ) | ||||
| Losses from equity in affiliates | 106 | 76 | 3,479 | 31 | |||||
| Gain on disposal of property and equipment | (25 | ) | (1 | ) | (9 | ) | (11 | ) | |
| Impairments of goodwill | - | - | - | 31,928 | |||||
| Return on investment from equity affiliates | - | 21 | - | 21 | |||||
| Interest expense | - | 20 | - | 20 | |||||
| Changes in assets and liabilities, net of effect of acquisition: | |||||||||
| Accounts receivable | 4,371 | (1,244 | ) | (5,047 | ) | (9,100 | ) | ||
| Contract assets | - | 420 | (67 | ) | (522 | ) | |||
| Prepayments and other current assets | (1,764 | ) | (793 | ) | (13,893 | ) | (1,801 | ) | |
| Other non-current assets | (813 | ) | (2,118 | ) | 5,855 | (7,278 | ) | ||
| Accounts payable | (2,290 | ) | (393 | ) | (248 | ) | 3,246 | ||
| Advances from customers | 755 | 76 | 1,071 | (483 | ) | ||||
| Taxes payable | 565 | (355 | ) | 1,326 | (1,157 | ) | |||
| Operating lease liabilities | (559 | ) | (780 | ) | (2,878 | ) | (2,649 | ) | |
| Deferred income | - | - | 62 | (160 | ) | ||||
| Accrued expenses and other liabilities | (461 | ) | 2,654 | (5,865 | ) | (4,154 | ) | ||
| Net cash provided by (used in) operating activities | 4,535 | 3,680 | (14,129 | ) | (13,611 | ) | |||
| Cash flows from investing activities: | |||||||||
| Purchase of property and equipment | (249 | ) | (268 | ) | (2,546 | ) | (924 | ) | |
| Purchase of short-term bank deposits | (25,200 | ) | (31,924 | ) | (68,300 | ) | (219,445 | ) | |
| Purchase of short-term financial products issued by banks | - | - | (70,391 | ) | (29,899 | ) | |||
| Purchase of short-term investments | - | (2 | ) | - | (791 | ) | |||
| Proceeds from maturity of short-term bank deposits | 18,779 | 33,000 | 130,020 | 467,058 | |||||
| Proceeds from maturity of short-term financial products issued by banks | 35,884 | 9,212 | 105,395 | 17,522 | |||||
| Proceeds from sales of short-term investments | 235 | - | 235 | - | |||||
| Purchase of long-term bank deposits | (15,000 | ) | - | (35,500 | ) | (143,127 | ) | ||
| Purchase of long-term financial products issued by banks | (20,000 | ) | - | (61,400 | ) | (20,000 | ) | ||
| Purchase of long-term investments | - | - | (562 | ) | (15 | ) | |||
| Purchase of land use right | - | - | - | (5,133 | ) | ||||
| Payment for the headquarters project | (13,353 | ) | (6,466 | ) | (35,248 | ) | (10,792 | ) | |
| Cash received for business disposal | - | - | - | 5,769 | |||||
| Cash received from disposal of property and equipment | 35 | 5 | 93 | 92 | |||||
| Cash paid for a business combination | - | - | - | (3,680 | ) | ||||
| Cash received from disposal of long-term investments | - | - | 155 | - | |||||
| Return of investment from equity affiliates | - | 8 | - | 8 | |||||
| Net cash (used in) provided by investing activities | (18,869 | ) | 3,565 | (38,049 | ) | 56,643 | |||
| Cash flows from financing activities: | |||||||||
| Proceeds from long-term borrowings for headquarters project | 13,613 | 10,909 | 35,790 | 10,909 | |||||
| Deposits returned for business disposal | - | - | - | (1,000 | ) | ||||
| Proceeds from exercise of employees’ share options | 303 | 44 | 853 | 634 | |||||
| Deposit received in relation to headquarters project | 1,128 | - | 20,408 | - | |||||
| Repurchase of Class A ordinary shares | (1,390 | ) | (10,082 | ) | (11,057 | ) | (62,911 | ) | |
| Net cash provided by (used in) financing activities | 13,654 | 871 | 45,994 | (52,368 | ) | ||||
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (840 | ) | 481 | (162 | ) | (805 | ) | ||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (1,520 | ) | 8,597 | (6,346 | ) | (10,141 | ) | ||
| Cash balance recorded in held-for sale assets at beginning of period | - | - | - | 1,488 | |||||
| Cash, cash equivalents and restricted cash at beginning of period * | 32,348 | 28,577 | 37,174 | 45,827 | |||||
| Cash, cash equivalents and restricted cash at end of period ** | 30,828 | 37,174 | 30,828 | 37,174 | |||||
| Supplemental disclosure of cash flow information: | |||||||||
| Income taxes paid | 52 | 87 | 185 | 152 | |||||
| Cash payments included in the measurement of operating lease liabilities | 559 | 780 | 2,878 | 2,649 | |||||
| Right-of-use assets obtained in exchange for operating lease obligations | - | 500 | 2,325 | 4,588 | |||||
| Non-cash financing and investing activities: | |||||||||
| Proceeds receivable from exercise of employees’ share options | 275 | 116 | 417 | 116 | |||||
| Payables for property and equipment | 398 | 12 | 398 | 12 | |||||
| Payables for construction in progress for the headquarters project | 8,975 | 7,098 | 12,834 | 7,098 | |||||
| Payables for treasury shares, at cost | 83 | 210 | 83 | 210 | |||||
| Settlement of compensation costs in relation to an acquisition with shares | - | 1,500 | - | 1,830 | |||||
* includes restricted cash balance | 230 | 280 | 280 | 154 | |||||
| ** includes restricted cash balance | 3,745 | 280 | 3,745 | 280 | |||||
Agora, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited, in US$ thousands, except share and per ADS amounts)
| Three Month Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| GAAP net income (loss) | 158 | (2,611 | ) | (42,727 | ) | (87,219 | ) | ||
| Add: | |||||||||
| Share-based compensation expenses | 1,497 | 3,710 | 22,737 | 24,612 | |||||
| Acquisition related expenses | - | 8 | - | (392 | ) | ||||
| Amortization expenses of acquired intangible assets | 129 | 345 | 660 | 1,380 | |||||
| Income tax related to acquired intangible assets | (20 | ) | (53 | ) | (102 | ) | (212 | ) | |
| Impairment of goodwill | - | - | - | 31,928 | |||||
| Non-GAAP net income (loss) | 1,764 | 1,399 | (19,432 | ) | (29,903 | ) | |||
| Net cash provided by (used in) operating activities | 4,535 | 3,680 | (14,129 | ) | (13,611 | ) | |||
| Purchase of property and equipment | (249 | ) | (268 | ) | (2,546 | ) | (924 | ) | |
| Free Cash Flow | 4,286 | 3,412 | (16,675 | ) | (14,535 | ) | |||
| Net cash (used in) provided by investing activities | (18,869 | ) | 3,565 | (38,049 | ) | 56,643 | |||
| Net cash provided by (used in) financing activities | 13,654 | 871 | 45,994 | (52,368 | ) | ||||
____________________________
1 One ADS represents four Class A ordinary shares.
FAQ
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