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 of 4.4% 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 of 13.7% from $15.3 million in
the fourth quarter of 2023.
- Shengwang:
RMB122.2 million ($17.1 million) for the quarter, a decrease of
17.6% 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).
- 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.
- 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.
- 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 of 5.9% 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 of 5.7% from $61.0 million in
2023.
- Shengwang:
RMB489.6 million ($68.8 million) in 2024, a decrease of 13.7% 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.
- 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
RevenuesTotal revenues were
$34.5 million in the fourth quarter of 2024, a decrease of 4.4%
from $36.0 million in the same period last year. Revenues of Agora
were $17.4 million in the fourth quarter of 2024, an increase of
13.7% 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 RMB122.2 million ($17.1
million) in the fourth quarter of 2024, a decrease of 17.6% from
RMB148.3 million ($20.7 million) in the same period last year,
primarily due to a decrease in revenues of RMB 19.0 million ($2.7
million) due to the end-of-sale of certain products.
Cost of RevenuesCost of
revenues was $11.5 million in the fourth quarter of 2024, a
decrease of 13.9% from $13.4 million in the same period last year,
primarily due to the end-of-sale of certain products.
Gross Profit and Gross
MarginGross profit was $22.9 million in the fourth quarter
of 2024, an increase of 1.2% from $22.7 million in the same period
last year. Gross margin was 66.6% in the fourth quarter of 2024, an
increase of 3.7% from 62.9% in the same period last year, mainly
due to the end-of-sale of certain low-margin product.
Operating ExpensesOperating
expenses were $28.5 million in the fourth quarter of 2024, a
decrease of 8.8% from $31.2 million in the same period last
year.
- Research and
development expenses were $14.8 million in the fourth
quarter of 2024, a decrease of 9.3% 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 of 3.1% 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 of 18.4% 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 OperationsLoss from
operations was $4.9 million in the fourth quarter of 2024, compared
to $8.4 million in the same period last year.
Interest IncomeInterest income
was $3.7 million in the fourth 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 and the decrease in average
interest rate.
Net Income (Loss)Net income was
$0.2 million in the fourth quarter of 2024, compared to net loss of
$2.6 million in the same period last year.
Net Income (Loss) per American
Depositary Share attributable to Ordinary
ShareholdersBasic and diluted net income per American
Depositary Share (“ADS”)1 attributable to ordinary shareholders was
$0.002 in the fourth quarter of 2024, compared to basic and diluted
net loss per ADS of $0.03 in the same period last year.
Fiscal Year 2024 Financial
Results
RevenuesTotal revenues in 2024
were $133.3 million, a decrease of 5.9% from $141.5 million in
2023. Revenues of Agora were $64.5 million in 2024, an increase of
5.7% from $61.0 million in 2023, primarily due to our business
expansion and usage growth in sectors such as live shopping.
Revenues of Shengwang were RMB489.6 million ($68.8 million) in
2024, a decrease of 13.7% from RMB567.1 million ($80.5 million) in
2023, primarily due to a decrease in revenues of RMB 27.9 million
($4.1 million) due to the end-of-sale of certain products and
reduced usage from customers in certain sectors such as social and
entertainment as a result of challenging macroeconomic and
regulatory environment.
Cost of RevenuesCost of
revenues in 2024 was $47.8 million, a decrease of 8.2% from $52.1
million in 2023, primarily due to the end-of-sale of certain
products and the decrease in bandwidth usage and costs.
Gross Profit and Gross
MarginGross profit in 2024 was $85.4 million, a decrease
of 4.5% from $89.5 million in 2023. Gross margin in 2024 was 64.1%,
an increase of 0.9% from 63.2% in 2023 mainly due to the
end-of-sale of certain low-margin product.
Operating ExpensesOperating
expenses in 2024 were $140.3 million, a decrease of 4.3% from
$146.6 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 $11.4
million as a result of the cancellation of certain employees’
equity awards and immediate recognition of relevant remaining
unrecognized compensation expenses, as well as severance expenses
of $4.4 million.
- Research and
development expenses in 2024 were $80.3 million, an
increase of 3.4% 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
of 19.8% 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 of 6.3% 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 OperationsLoss from
operations in 2024 was $53.3 million, compared to $87.3 million in
2023, primarily due to the decrease of operating expenses from
$146.6 million in 2023 to $140.3 million in 2024, as well as the
decrease of impairment of goodwill from $31.9 million in 2023 to
nil in 2024.
Interest IncomeInterest income
in 2024 was $16.9 million, compared to $18.8 million in 2023,
primarily due to the decrease in the average balance of cash, cash
equivalents, bank deposits and financial products issued by banks
and the decrease in average interest rate.
Investment LossInvestment loss
in 2024 was $3.3 million, compared to $18.5 million in 2023,
primarily due to the decrease in fair value of an equity investment
of $5.0 million, as well as the decrease of impairment losses on
investments in certain private companies from $11.3 million in 2023
to nil in 2024.
Other incomeOther income in
2024 was $0.8 million, compared to $1.6 million in 2023, primarily
due to the decrease of income of incentive payments from a
depositary bank due to decease in outstanding American Depository
Shares as a result of share repurchase.
Losses from equity in
affiliatesLosses from equity in affiliates in 2024 were
$3.5 million, primarily due to an impairment loss on an investment
in certain private company of $4.1 million.
Net LossNet loss in 2024 was
$42.7 million, compared to $87.2 million in 2023.
Net Loss per ADS attributable to
ordinary shareholdersNet loss per ADS attributable to
ordinary shareholders in 2024 was $0.46, compared to $0.88 in
2023.
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$1.4 million under its share repurchase program,
representing 0.7% of its US$200 million share repurchase
program.
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$115.2 million under its share repurchase program,
representing 57.6% of its US$200 million share repurchase
program.
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 $31 million and $33 million, compared to $29.7 million in
the first quarter of 2024 if revenues from certain end-of-sale
low-margin products were excluded. This outlook 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 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
ResultsThe call will be available at
https://edge.media-server.com/mmc/p/ca3ihsn6Investors 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/BIaffae7deb01345b39b477ccdbc209daaPlease
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 $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 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.ioFor 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.
Investor Contact:
investor@agora.io
Media Contact:
press@agora.io
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