Agora, Inc. Reports Second Quarter 2024 Financial Results
Agora, a leader in real-time engagement technology, reported second-quarter 2024 financial results. Total revenue was $34.2 million, up 0.5% from the same period last year. Agora's revenue grew 2% to $15.6 million, while Shengwang's revenue slightly increased by 0.3% to RMB131.9 million ($18.6 million). Active customers for Agora rose by 7.2% to 1,672, but Shengwang saw a decrease of 5.5% to 3,774. The net loss reduced significantly to $9.2 million from $45.3 million in Q2 2023. Operating expenses dropped by 14.4% to $32.6 million. Agora repurchased 3.9 million class A ordinary shares for $2.4 million. For Q3 2024, the company expects revenues between $31.5 million and $33.5 million due to the discontinuation of certain low-margin products.
Agora, un leader nella tecnologia di coinvolgimento in tempo reale, ha riportato i risultati finanziari del secondo trimestre 2024. Il fatturato totale è stato di 34,2 milioni di dollari, in aumento dello 0,5% rispetto allo stesso periodo dell'anno scorso. Le entrate di Agora sono cresciute del 2% fino a raggiungere i 15,6 milioni di dollari, mentre quelle di Shengwang sono aumentate leggermente dello 0,3% a RMB131,9 milioni (18,6 milioni di dollari). I clienti attivi di Agora sono aumentati del 7,2% per arrivare a 1.672, ma Shengwang ha registrato una diminuzione del 5,5% a 3.774. La perdita netta si è ridotta significativamente a 9,2 milioni di dollari dai 45,3 milioni di dollari del Q2 2023. Le spese operative sono diminuite del 14,4% a 32,6 milioni di dollari. Agora ha riacquistato 3,9 milioni di azioni ordinarie di classe A per 2,4 milioni di dollari. Per il Q3 2024, l'azienda prevede entrate comprese tra 31,5 milioni e 33,5 milioni di dollari a causa della discontinuità di alcuni prodotti a basso margine.
Agora, un líder en tecnología de participación en tiempo real, informó sobre los resultados financieros del segundo trimestre de 2024. Los ingresos totales fueron de 34,2 millones de dólares, un aumento del 0,5% en comparación con el mismo período del año pasado. Los ingresos de Agora crecieron un 2% hasta 15,6 millones de dólares, mientras que los ingresos de Shengwang aumentaron ligeramente un 0,3% a RMB131,9 millones (18,6 millones de dólares). Los clientes activos de Agora aumentaron un 7,2% hasta 1.672, pero Shengwang vio una disminución del 5,5% a 3.774. La pérdida neta se redujo significativamente a 9,2 millones de dólares desde 45,3 millones de dólares en el Q2 de 2023. Los gastos operativos cayeron un 14,4% a 32,6 millones de dólares. Agora recompró 3,9 millones de acciones ordinarias Clase A por 2,4 millones de dólares. Para el Q3 de 2024, la empresa espera ingresos entre 31,5 millones y 33,5 millones de dólares debido a la descontinuación de ciertos productos de bajo margen.
실시간 참여 기술의 선두주자인 Agora가 2024년 2분기 재무 결과를 발표했습니다. 총 수익은 3420만 달러로, 지난해 같은 기간보다 0.5% 증가했습니다. Agora의 매출은 2% 증가하여 1560만 달러에 도달했으며, Shengwang의 매출은 약간 증가하여 0.3% 증가한 1억 3190만 위안(1860만 달러)이었습니다. Agora의 활성 고객은 7.2% 증가하여 1,672명이 되었지만, Shengwang은 5.5% 감소하여 3,774명이 되었습니다. 순손실은 2023년 2분기의 4530만 달러에서 920만 달러로 크게 줄어들었습니다. 운영 비용은 14.4% 감소하여 3260만 달러가 되었습니다. Agora는 390만 주의 A 클래스 보통주를 240만 달러에 재매입했습니다. 2024년 3분기에는 특정 저수익 제품의 단종으로 인해 수익이 3150만 달러에서 3350만 달러 사이에 있을 것으로 예상하고 있습니다.
Agora, un leader dans la technologie d'engagement en temps réel, a publié les résultats financiers du deuxième trimestre 2024. Le chiffre d'affaires total s'est établi à 34,2 millions de dollars, en hausse de 0,5 % par rapport à la même période de l'année dernière. Les revenus d'Agora ont augmenté de 2 % pour atteindre 15,6 millions de dollars, tandis que les revenus de Shengwang ont légèrement augmenté de 0,3 % pour atteindre 131,9 millions de RMB (18,6 millions de dollars). Le nombre de clients actifs d'Agora a augmenté de 7,2 % pour atteindre 1 672, mais Shengwang a enregistré une baisse de 5,5 % à 3 774. La perte nette a considérablement diminué, passant à 9,2 millions de dollars contre 45,3 millions de dollars au T2 2023. Les dépenses d'exploitation ont chuté de 14,4 % pour atteindre 32,6 millions de dollars. Agora a racheté 3,9 millions d'actions ordinaires de classe A pour 2,4 millions de dollars. Pour le T3 2024, l'entreprise prévoit des revenus compris entre 31,5 millions et 33,5 millions de dollars en raison de l'arrêt de certains produits à faible marge.
Agora, ein führendes Unternehmen im Bereich der Echtzeit-Engagement-Technologie, hat die Finanzergebnisse des zweiten Quartals 2024 veröffentlicht. Der Gesamtumsatz betrug 34,2 Millionen Dollar, was einem Anstieg von 0,5% gegenüber dem gleichen Zeitraum des Vorjahres entspricht. Der Umsatz von Agora wuchs um 2% auf 15,6 Millionen Dollar, während der Umsatz von Shengwang leicht um 0,3% auf 131,9 Millionen RMB (18,6 Millionen Dollar) anstieg. Die aktiven Kunden von Agora stiegen um 7,2% auf 1.672, während Shengwang einen Rückgang von 5,5% auf 3.774 verzeichnete. Der Nettoverlust verringerte sich erheblich auf 9,2 Millionen Dollar von 45,3 Millionen Dollar im Q2 2023. Die Betriebsausgaben sanken um 14,4% auf 32,6 Millionen Dollar. Agora hat 3,9 Millionen Stammaktien der Klasse A für 2,4 Millionen Dollar zurückgekauft. Für das Q3 2024 erwartet das Unternehmen Einnahmen zwischen 31,5 Millionen und 33,5 Millionen Dollar aufgrund der Einstellung bestimmter Produkte mit niedrigen Gewinnmargen.
- Total revenue increased by 0.5% to $34.2 million.
- Net loss reduced significantly to $9.2 million from $45.3 million year-over-year.
- Operating expenses decreased by 14.4% to $32.6 million.
- Repurchased 3.9 million shares for $2.4 million under its share repurchase program.
- Shengwang's active customers decreased by 5.5% to 3,774.
- Net cash used in operating activities increased to $7.6 million from $5.3 million.
- Free cash flow was negative $7.9 million, compared to negative $5.6 million.
- Gross profit decreased by 1.4% to $21.2 million.
- Gross margin decreased to 62.0% from 63.3%.
Insights
Agora's Q2 2024 results show modest growth amidst challenging conditions. Total revenues increased by
Key metrics reveal mixed performance:
- Agora's active customers grew
7.2% to 1,672 - Shengwang's active customers decreased
5.5% to 3,774 - Dollar-based net retention rates were
92% for Agora and79% for Shengwang
Looking ahead, Q3 2024 revenue guidance of
Agora's focus on real-time engagement technology and its intersection with conversational AI is a strategic move in the evolving tech landscape. The company's ability to facilitate AI applications in various use cases, such as AI companions and productivity assistants, demonstrates adaptability to emerging trends.
However, the modest revenue growth of
The planned discontinuation of certain unprofitable products, accounting for about
Agora's performance reflects broader trends in the tech sector, particularly in real-time engagement and AI integration. The company's pivot towards AI-driven applications aligns with market demand, but execution and monetization remain crucial.
The divergence in active customer trends between Agora (
The company's share repurchase program, having bought back
SANTA CLARA, Calif., Aug. 19, 2024 (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 second quarter ended June 30, 2024.
“I am glad to see both Agora and Shengwang delivered year-on-year revenue growth against a very challenging macro environment in this quarter, which was made possible through our relentless innovation to enable new use cases and to push the bar of quality and value for existing use cases,” said Tony Zhao, founder, chairman and CEO of Agora, Inc. “Recently, we facilitated our customers to launch conversational AI applications in various use cases such as AI companions, productivity assistants, language tutors and customer service, with promising user adoption and engagement trends. I believe the intersection of real-time engagement and conversational AI will be a key driver of our business going forward.”
Second Quarter 2024 Highlights
- Total revenues for the quarter were
$34.2 million , an increase of0.5% from$34.0 million in the second quarter of 2023.- Agora:
$15.6 million for the quarter, an increase of2.0% from$15.3 million in the second quarter of 2023. - Shengwang: RMB131.9 million (
$18.6 million ) for the quarter, an increase of0.3% from RMB131.5 million ($18.7 million ) in the second quarter of 2023.
- Agora:
- Active Customers
- Agora: 1,672 as of June 30, 2024, an increase of
7.2% from 1,560 as of June 30, 2023. - Shengwang: 3,774 as of June 30, 2024, a decrease of
5.5% from 3,992 as of June 30, 2023.
- Agora: 1,672 as of June 30, 2024, an increase of
- Dollar-Based Net Retention Rate
- Agora:
92% for the trailing 12-month period ended June 30, 2024. - Shengwang:
79% for the trailing 12-month period ended June 30, 2024.
- Agora:
- Net loss for the quarter was
$9.2 million , compared to net loss of$45.3 million in the second quarter of 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 for the quarter was$6.0 million , compared to the non-GAAP net loss of$6.6 million in the second quarter of 2023. - Adjusted EBITDA for the quarter was negative
$6.0 million , compared to negative$6.6 million in the second quarter of 2023. - Total cash, cash equivalents, bank deposits and financial products issued by banks as of June 30, 2024 was
$371.0 million . - Net cash used in operating activities for the quarter was
$7.6 million , compared to$5.3 million in the second quarter of 2023. Free cash flow for the quarter was negative$7.9 million , compared to negative$5.6 million in the second quarter of 2023.
Second 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
$18.1 million in the second quarter of 2024, a decrease of10.6% from$20.3 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$3.4 million in the second quarter of 2023 to$2.1 million in the second quarter of 2024. - Sales and marketing expenses were
$6.3 million in the second quarter of 2024, a decrease of27.4% from$8.6 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 second quarter of 2023 to$0.3 million in the second quarter of 2024. - General and administrative expenses were
$8.2 million in the second quarter of 2024, a decrease of10.8% from$9.2 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$2.1 million in the second quarter of 2023 to$0.7 million in the second quarter of 2024.
Loss from Operations
Loss from operations was
Interest Income
Interest income was
Investment Loss
Investment loss was
Net Loss
Net loss was
Net Loss per American Depositary Share attributable to ordinary shareholders
Net loss per American Depositary Share (“ADS”)1 attributable to ordinary shareholders was
______________
1 One ADS represents four Class A ordinary shares.
Share Repurchase Program
During the three months ended June 30, 2024, the Company repurchased approximately 3.9 million of its class A ordinary shares (equivalent to approximately 1.0 million ADSs) for approximately US
As of June 30, 2024, the Company had repurchased approximately 122.5 million of its class A ordinary shares (equivalent to approximately 30.6 million ADSs) for approximately US
As of June 30, 2024, the Company had 367.9 million ordinary shares (equivalent to approximately 92.0 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 current share repurchase program will expire at the end of February 2025.
Financial Outlook
Based on the currently available information, the Company expects total revenues for the third quarter of 2024 to be between
Earnings Call
The Company will host a conference call to discuss the financial results at 6 p.m. Pacific Time / 9 p.m. Eastern Time on August 19, 2024. Details for the conference call are as follows:
Event title: Agora, Inc. 2Q 2024 Financial Results
The call will be available at https://edge.media-server.com/mmc/p/nr2i6si8
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/BI8f5ae80f0c244071a802cba97cbac9e6
Please visit the Company’s investor relations website at https://investor.agora.io on August 19, 2024 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.
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) before exchange gain (loss), interest income, investment income (loss), other income, equity in income of affiliates, income taxes, depreciation of property and equipment, amortization of land use right, and adjusted to exclude the effects of share-based compensation expenses, acquisition related expenses, amortization expenses of 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 construction in progress 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 particular 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 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 | ||||
| June 30, | December 31, | ||||
| 2024 | 2023 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 37,587 | 36,894 | |||
| Short-term bank deposits | 198,906 | 86,924 | |||
| Short-term financial products issued by banks | 115,118 | 84,853 | |||
| Short-term investments | 2,893 | 7,983 | |||
| Accounts receivable, net | 37,456 | 34,668 | |||
| Prepayments and other current assets | 21,431 | 9,059 | |||
| Contract assets | 1,070 | 1,048 | |||
| Total current assets | 414,461 | 261,429 | |||
| Property and equipment, net | 4,283 | 5,365 | |||
| Construction in progress for the headquarters project | 20,434 | 17,343 | |||
| Operating lease right-of-use assets | 3,238 | 4,011 | |||
| Intangible assets | 872 | 1,274 | |||
| Long-term bank deposits | 10,000 | 143,127 | |||
| Long-term financial products issued by banks | 9,400 | 20,000 | |||
| Long-term investments | 44,560 | 43,893 | |||
| Land use right, net | 164,501 | 167,246 | |||
| Other non-current assets | 7,577 | 10,907 | |||
| Total assets | 679,326 | 674,595 | |||
| Liabilities and shareholders’ equity | |||||
| Current liabilities: | |||||
| Accounts payable | 17,513 | 12,996 | |||
| Advances from customers | 8,082 | 7,765 | |||
| Taxes payable | 1,553 | 906 | |||
| Current operating lease liabilities | 2,306 | 2,447 | |||
| Accrued expenses and other current liabilities | 20,571 | 32,780 | |||
| Total current liabilities | 50,025 | 56,894 | |||
| Long-term operating lease liabilities | 799 | 1,726 | |||
| Deferred tax liabilities | 133 | 196 | |||
| Long-term borrowings | 22,089 | 11,027 | |||
| Other non-current liabilities | 19,217 | 3 | |||
| Total liabilities | 92,263 | 69,846 | |||
| Shareholders’ equity: | |||||
| Class A ordinary shares | 39 | 39 | |||
| Class B ordinary shares | 8 | 8 | |||
| Additional paid-in-capital | 1,139,695 | 1,138,346 | |||
| Treasury shares, at cost | (78,969 | ) | (79,716 | ) | |
| Accumulated other comprehensive loss | (11,104 | ) | (10,027 | ) | |
| Accumulated deficit | (462,606 | ) | (443,901 | ) | |
| Total shareholders’ equity | 587,063 | 604,749 | |||
| Total liabilities and shareholders’ equity | 679,326 | 674,595 | |||
| Agora, Inc. Condensed Consolidated Statements of Comprehensive Loss (Unaudited, in US$ thousands, except share and per ADS amounts) | |||||||||||
| Three Month Ended | Six Month Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Real-time engagement service revenues | 33,138 | 32,979 | 65,360 | 68,080 | |||||||
| Real-time engagement on-premise solution and other revenues | 1,071 | 1,059 | 1,870 | 2,401 | |||||||
| Total revenues | 34,209 | 34,038 | 67,230 | 70,481 | |||||||
| Cost of revenues | 12,983 | 12,502 | 25,780 | 26,099 | |||||||
| Gross profit | 21,226 | 21,536 | 41,450 | 44,382 | |||||||
| Operating expenses: | |||||||||||
| Research and development | 18,141 | 20,285 | 36,280 | 41,316 | |||||||
| Sales and marketing | 6,270 | 8,638 | 13,084 | 19,114 | |||||||
| General and administrative | 8,228 | 9,221 | 16,608 | 18,030 | |||||||
| Total operating expenses | 32,639 | 38,144 | 65,972 | 78,460 | |||||||
| Other operating income | 304 | 399 | 780 | 895 | |||||||
| Impairment of goodwill | - | (31,928 | ) | - | (31,928 | ) | |||||
| Loss from operations | (11,109 | ) | (48,137 | ) | (23,742 | ) | (65,111 | ) | |||
| Exchange gain (loss) | 110 | (328 | ) | 65 | (211 | ) | |||||
| Interest income | 4,586 | 4,750 | 9,320 | 9,156 | |||||||
| Interest expense | (105 | ) | - | (165 | ) | - | |||||
| Investment loss | (2,837 | ) | (1,943 | ) | (4,872 | ) | (5,141 | ) | |||
| Losses from extinguishment of convertible note | - | - | - | (1,230 | ) | ||||||
| Other income | - | 550 | - | 550 | |||||||
| Loss before income taxes | (9,355 | ) | (45,108 | ) | (19,394 | ) | (61,987 | ) | |||
| Income taxes | (9 | ) | (169 | ) | (149 | ) | (159 | ) | |||
| Equity in income (loss) of affiliates | 122 | (16 | ) | 838 | 51 | ||||||
| Net loss | (9,242 | ) | (45,293 | ) | (18,705 | ) | (62,095 | ) | |||
| Net loss attributable to ordinary shareholders | (9,242 | ) | (45,293 | ) | (18,705 | ) | (62,095 | ) | |||
| Other comprehensive loss: | |||||||||||
| Foreign currency translation adjustments | (738 | ) | (9,430 | ) | (1,078 | ) | (7,261 | ) | |||
| Gain on available-for-sale debt securities | - | - | - | 1,385 | |||||||
| Total comprehensive loss attributable to ordinary shareholders | (9,980 | ) | (54,723 | ) | (19,783 | ) | (67,971 | ) | |||
| Net loss per ADS attributable to ordinary shareholders, basic and diluted | (0.10 | ) | (0.45 | ) | (0.20 | ) | (0.60 | ) | |||
| Weighted-average shares used in computing net loss per ADS attributable to ordinary shareholders, basic and diluted | 373,103,149 | 402,116,231 | 372,644,910 | 413,004,785 | |||||||
| Share-based compensation expenses included in: | |||||||||||
| Cost of revenues | 52 | 230 | 153 | 447 | |||||||
| Research and development expenses | 2,065 | 3,356 | 5,110 | 6,899 | |||||||
| Sales and marketing expenses | 294 | 1,172 | 597 | 2,905 | |||||||
| General and administrative expenses | 748 | 2,077 | 1,733 | 4,008 | |||||||
| Agora, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited, in US$ thousands) | |||||||||||
| Three Month Ended | Six Month Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | (9,242 | ) | (45,293 | ) | (18,705 | ) | (62,095 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Share-based compensation expenses | 3,159 | 6,835 | 7,593 | 14,259 | |||||||
| Allowance for current expected credit losses | 2,557 | 1,947 | 4,848 | 3,501 | |||||||
| Depreciation of property and equipment | 930 | 1,908 | 1,938 | 4,122 | |||||||
| Amortization of intangible assets | 129 | 345 | 402 | 691 | |||||||
| Amortization of land use right | 858 | 869 | 1,716 | 1,462 | |||||||
| Deferred tax benefit | (20 | ) | (53 | ) | (62 | ) | (106 | ) | |||
| Amortization of right-of-use asset and interest on lease liabilities | 688 | 704 | 1,348 | 1,514 | |||||||
| Investment loss | 2,837 | 1,943 | 4,872 | 5,141 | |||||||
| Losses from extinguishment of convertible note | - | - | - | 1,230 | |||||||
| Interest income on debt securities and investments | - | - | - | (105 | ) | ||||||
| Equity in (income) loss of affiliates | (122 | ) | 16 | (838 | ) | (51 | ) | ||||
| Loss (gain) on disposal of property and equipment | 17 | (2 | ) | 15 | (44 | ) | |||||
| Interest expense | 105 | - | 165 | - | |||||||
| Impairments of goodwill | - | 31,928 | - | 31,928 | |||||||
| Changes in assets and liabilities, net of effect of acquisition: | |||||||||||
| Accounts receivable | (3,284 | ) | (970 | ) | (7,791 | ) | (3,353 | ) | |||
| Contract assets | - | (104 | ) | (29 | ) | (856 | ) | ||||
| Prepayments and other current assets | (2,118 | ) | (817 | ) | (12,476 | ) | (349 | ) | |||
| Other non-current assets | (106 | ) | (2,208 | ) | 7,140 | (3,056 | ) | ||||
| Accounts payable | 2,125 | (393 | ) | 4,573 | 986 | ||||||
| Advances from customers | (144 | ) | (364 | ) | 357 | (659 | ) | ||||
| Taxes payable | 213 | 322 | 654 | (833 | ) | ||||||
| Operating lease liabilities | (759 | ) | (692 | ) | (1,642 | ) | (1,545 | ) | |||
| Deferred income | 63 | (160 | ) | (194 | ) | (160 | ) | ||||
| Accrued expenses and other liabilities | (5,441 | ) | (1,091 | ) | (7,926 | ) | (5,880 | ) | |||
| Net cash used in operating activities | (7,555 | ) | (5,330 | ) | (14,042 | ) | (14,258 | ) | |||
| Cash flows from investing activities: | |||||||||||
| Purchase of short-term bank deposits | (12,000 | ) | - | (43,100 | ) | (129,521 | ) | ||||
| Purchase of short-term financial products issued by banks | (20,091 | ) | (369 | ) | (20,091 | ) | (10,374 | ) | |||
| Proceeds from maturity of short-term bank deposits | 51,098 | 43,521 | 74,241 | 348,058 | |||||||
| Proceeds from maturity of short-term financial products issued by banks | - | - | 10,029 | 8,310 | |||||||
| Purchase of long-term bank deposits | (10,000 | ) | (30,521 | ) | (10,000 | ) | (143,127 | ) | |||
| Purchase of long-term financial products issued by banks | (3,400 | ) | - | (9,400 | ) | (20,000 | ) | ||||
| Purchase of long-term investments | - | - | - | (15 | ) | ||||||
| Purchase of property and equipment | (377 | ) | (265 | ) | (964 | ) | (450 | ) | |||
| Purchase of land use right | - | - | - | (5,133 | ) | ||||||
| Purchase of construction in progress for the headquarters project | (4,199 | ) | (440 | ) | (10,977 | ) | (2,487 | ) | |||
| Cash received for business disposal | - | 2,707 | - | 5,769 | |||||||
| Disposal of property and equipment | 49 | 8 | 56 | 51 | |||||||
| Cash paid for a business combination | - | - | - | (3,680 | ) | ||||||
| Cash received from disposal of long-term investments | 127 | - | 127 | - | |||||||
| Net cash provided by (used in) investing activities | 1,207 | 14,641 | (10,079 | ) | 47,401 | ||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from long-term borrowings | 4,310 | - | 11,054 | - | |||||||
| Deposits returned for business disposal | - | - | - | (1,000 | ) | ||||||
| Proceeds from exercise of employees’ share options | 167 | 492 | 375 | 516 | |||||||
| Deposit received in relation to headquarters project | - | - | 19,280 | - | |||||||
| Repurchase of Class A ordinary shares | (2,346 | ) | (20,964 | ) | (5,754 | ) | (40,367 | ) | |||
| Net cash provided by (used in) financing activities | 2,131 | (20,472 | ) | 24,955 | (40,851 | ) | |||||
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (98 | ) | (926 | ) | (141 | ) | (1,339 | ) | |||
| Net decrease in cash, cash equivalents and restricted cash | (4,315 | ) | (12,087 | ) | 693 | (9,047 | ) | ||||
| Cash balance recorded in held-for sale assets at beginning of period | - | - | - | 1,488 | |||||||
| Cash, cash equivalents and restricted cash at beginning of period * | 42,182 | 50,355 | 37,174 | 45,827 | |||||||
| Cash, cash equivalents and restricted cash at end of period ** | 37,867 | 38,268 | 37,867 | 38,268 | |||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Income taxes paid | 1 | 10 | 109 | 32 | |||||||
| Cash payments included in the measurement of operating lease liabilities | 759 | 692 | 1,642 | 1,545 | |||||||
| Right-of-use assets obtained in exchange for operating lease obligations | 177 | 394 | 513 | 4,088 | |||||||
| Non-cash financing and investing activities: | |||||||||||
| Proceeds receivable from exercise of employees’ share options | 33 | 52 | 33 | 52 | |||||||
| Payables for property and equipment | 32 | 8 | 32 | 8 | |||||||
| Payables for construction in progress for the headquarters project | 991 | 2,857 | 2,785 | 2,857 | |||||||
| Payables for treasury shares, at cost | 74 | 479 | 74 | 479 | |||||||
| * includes restricted cash balance | 280 | 130 | 280 | 154 | |||||||
| ** includes restricted cash balance | 280 | 280 | 280 | 280 | |||||||
| Agora, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited, in US$ thousands, except share and per ADS amounts) | |||||||||||
| Three Month Ended | Six Month Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| GAAP net loss | (9,242 | ) | (45,293 | ) | (18,705 | ) | (62,095 | ) | |||
| Add: | |||||||||||
| Share-based compensation expenses | 3,159 | 6,835 | 7,593 | 14,259 | |||||||
| Acquisition related expenses | - | (369 | ) | - | (413 | ) | |||||
| Amortization expenses of acquired intangible assets | 129 | 345 | 402 | 690 | |||||||
| Income tax related to acquired intangible assets | (20 | ) | (53 | ) | (62 | ) | (106 | ) | |||
| Impairment of goodwill | - | 31,928 | - | 31,928 | |||||||
| Non-GAAP net loss | (5,974 | ) | (6,607 | ) | (10,772 | ) | (15,737 | ) | |||
| GAAP net loss | (9,242 | ) | (45,293 | ) | (18,705 | ) | (62,095 | ) | |||
| Excluding: | |||||||||||
| Exchange (gain) loss | (110 | ) | 328 | (65 | ) | 211 | |||||
| Interest income | (4,586 | ) | (4,750 | ) | (9,320 | ) | (9,156 | ) | |||
| Interest expense | 105 | - | 165 | - | |||||||
| Investment loss | 2,837 | 1,943 | 4,872 | 5,141 | |||||||
| Losses from extinguishment of convertible note | - | - | - | 1,230 | |||||||
| Equity in (income) loss of affiliates | (122 | ) | 16 | (838 | ) | (51 | ) | ||||
| Other income | - | (550 | ) | - | (550 | ) | |||||
| Income taxes | 9 | 169 | 149 | 159 | |||||||
| Depreciation of property and equipment | 930 | 1,908 | 1,938 | 4,122 | |||||||
| Amortization of land use right | 858 | 869 | 1,716 | 1,462 | |||||||
| Share-based compensation expenses | 3,159 | 6,835 | 7,593 | 14,259 | |||||||
| Acquisition related expenses | - | (369 | ) | - | (413 | ) | |||||
| Amortization expenses of acquired intangible assets | 129 | 345 | 402 | 690 | |||||||
| Impairment of goodwill | - | 31,928 | - | 31,928 | |||||||
| Adjusted EBITDA | (6,033 | ) | (6,621 | ) | (12,093 | ) | (13,063 | ) | |||
| Net cash used in operating activities | (7,555 | ) | (5,330 | ) | (14,042 | ) | (14,258 | ) | |||
| Purchase of property and equipment | (377 | ) | (265 | ) | (964 | ) | (450 | ) | |||
| Free Cash Flow | (7,932 | ) | (5,595 | ) | (15,006 | ) | (14,708 | ) | |||
| Net cash provided by (used in) investing activities | 1,207 | 14,641 | (10,079 | ) | 47,401 | ||||||
| Net cash provided by (used in) financing activities | 2,131 | (20,472 | ) | 24,955 | (40,851 | ) | |||||
FAQ
What was Agora's total revenue for Q2 2024?
How did Agora's net loss change in Q2 2024?
What is Agora's revenue outlook for Q3 2024?
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What was Shengwang's revenue in Q2 2024?
How did Agora's gross profit and gross margin change in Q2 2024?
