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 of 0.5% from $34.0
million in the second quarter of 2023.
- Agora: $15.6
million for the quarter, an increase of 2.0% from $15.3 million in
the second quarter of 2023.
- Shengwang:
RMB131.9 million ($18.6 million) for the quarter, an increase of
0.3% from RMB131.5 million ($18.7 million) in the second quarter of
2023.
- 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.
- 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.
- 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
RevenuesTotal revenues were
$34.2 million in the second quarter of 2024, an increase of 0.5%
from $34.0 million in the same period last year. Revenues of Agora
were $15.6 million in the second quarter of 2024, an increase of
2.0% from $15.3 million in the same period last year, primarily due
to our business expansion and usage growth in sectors such as live
shopping. Revenues of Shengwang were RMB131.9 million ($18.6
million) in the second quarter of 2024, an increase of 0.3% from
RMB131.5 million ($18.7 million) in the same period last year,
primarily due to increase in revenues from certain sectors such as
Internet of Things.
Cost of RevenuesCost of
revenues was $13.0 million in the second quarter of 2024, an
increase of 3.8% from $12.5 million in the same period last year,
primarily due to the increase in bandwidth usage and co-location
costs.
Gross Profit and Gross
MarginGross profit was $21.2 million in the second quarter
of 2024, a decrease of 1.4% from $21.5 million in the same period
last year. Gross margin was 62.0% in the second quarter of 2024, a
decrease of 1.3% from 63.3% in the same period last year, mainly
due to product mix change.
Operating ExpensesOperating
expenses were $32.6 million in the second quarter of 2024, a
decrease of 14.4% from $38.1 million in the same period last
year.
- Research and
development expenses were $18.1 million in the second
quarter of 2024, a decrease of 10.6% 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 of 27.4% 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 of 10.8% 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 OperationsLoss from
operations was $11.1 million in the second quarter of 2024,
compared to $48.1 million in the same period last year, primarily
due to the decrease of operating expenses from $38.1 million in the
second quarter of 2023 to $32.6 million in the second quarter of
2024, as well as the decrease of impairment of goodwill from $31.9
million in the second quarter of 2023 to nil in the second quarter
of 2024.
Interest IncomeInterest income
was $4.6 million in the second quarter of 2024, compared to $4.8
million in the same period last year, primarily due to the decrease
in the average balance of cash, cash equivalents, bank deposits and
financial products issued by banks.
Investment LossInvestment loss
was $2.8 million in the second quarter of 2024, compared to $1.9
million in the same period last year, primarily due to the fair
value change in equity investments.
Net LossNet loss was $9.2
million in the second quarter of 2024, compared to $45.3 million in
the same period last year.
Net Loss per American Depositary Share
attributable to ordinary shareholdersNet loss per American
Depositary Share (“ADS”)1 attributable to ordinary shareholders was
$0.10 in the second quarter of 2024, compared to $0.45 in the same
period last year.
______________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$2.4 million under its share repurchase program,
representing 1.2% of its US$200 million share repurchase
program.
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$109.9 million under its share repurchase program, representing
55% of its US$200 million share repurchase program.
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 $31.5 million and $33.5 million. This outlook reflects
the Company’s planned end of sale of certain products with
unsatisfactory profitability. Such products generated approximately
$2.4 million of revenues in the third quarter of 2023 and $3.3
million of revenues in the second quarter of 2024. This outlook
also reflects the Company's current and preliminary views on the
market and operational conditions, which are subject to change.
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
ResultsThe call will be available at
https://edge.media-server.com/mmc/p/nr2i6si8Investors 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/BI8f5ae80f0c244071a802cba97cbac9e6Please
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 $100 of revenue during the
preceding 12 months. Customers are counted based on unique customer
account identifiers. Generally, one software application uses the
same customer account identifier throughout its life cycle while
one account may be used for multiple applications.
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.ioFor 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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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