Slide 1: Agora, Inc. 2024 Q2 Earnings
Agora, Inc. 2024 Q2 Earnings August 19, 2024
Slide 2: Disclaimer
Disclaimer Information in this presentation contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act
Slide 3: Business Highlights
Business Highlights Agora, Inc.
Slide 4: Business Update - Agora
Business Update - Agora General Availability of Real-Time Speech to Text (STT) ⚫ Enables customers to transcribe the audio of each user in a channel and distribute as live captions to enhance accessibility and user experience ⚫ Integrates with large language models to generate summaries of meetings
Slide 5: Business Update - Shengwang
Business Update - Shengwang Partnership with Unity China ⚫ Integrate our in-game voice calling capabilities in Unity China’s UOS (Unity Online Services) for game developers to add multi-player voice channels Unity Cloud Services ⚫ Our proprietary advanced features, such as spatial One-Stop Cloud Ser
Slide 6: Business Update - Shengwang
Business Update - Shengwang Empowering Customers with AI Capabilities ⚫ Assisted XiaoTianCai to add cloud-based real-time transcription capabilities for video calling in their latest flagship smartwatch for users to conduct video calls in noisy environment ⚫ Also facilitated customers to launch voic
Slide 7: Upcoming 10th Real-Time Engagement Conference
Business Update - Shengwang Upcoming 10th Real-Time Engagement Conference October 25th and 26th Beijing, China Agora, Inc. 7
Slide 8: 2024 Q2 Financial Update
2024 Q2 Financial Update Agora, Inc.
Slide 9: Customer Base
Customer Base ACTIVE CUSTOMERS (1)(2) 5,698 5,827 5,552 5,553 5,446 4,034 4,144 3,833 3,992 3,774 1,560 1,664 1,683 1,720 1,672 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Agora Shengwang Notes: (1) An active customer at the end of the period is an organization or individual developer from which we generated
Slide 10: Revenues by Division
Revenues by Division AGORA REVENUES SHENGWANG REVENUES in US$M in RMB Millions ¥148.3 ¥141.2 ¥131.5 ¥131.9 ¥122.6 $15.3 $15.3 $15.3 $15.8 $15.6 23Q2 23Q3 23Q4 24Q1 24Q2 23Q2 23Q3 23Q4 24Q1 24Q2 USD/RMB 7.01 7.17 7.14 7.10 7.11 In US$M $18.7 $19.7 $20.7 $17.2 $18.6 Agora, Inc. 10
Slide 11: Net Retention Rate
Net Retention Rate DOLLAR–BASED NET RETENTION RATE (1)(2) Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Agora >130% 130% 108% 98% 93% 92% 92% Shengwang 96% 92% 91% 89% 82% 78% 79% Notes: 1. We calculate Dollar-Based Net Retention Rate for a trailing 12-month period by first identifying all custom
Slide 12: Group Revenues
Group Revenues TOTAL REVENUES in US$M $45.0 $42.3 $40.2 $40.4 $41.0 $41.0 $40.1 $38.6 $0.2 $11.2 $1.0 $1.4 $1.2 $1.3 $36.4 $36.0 $5.9 $1.3 $35.0 $11.9 $1.5 $0.3 $34.0 $34.2 $11.2 $33.0 $2.3 $2.3 $0.4 $1.9 $22.5 $22.6 $23.1 $22.1 $21.0 $19.7 $20.7 $18.6 $18.7 $17.2 $20.3 $20.5 $20.2 $19.3 $16.2 $16.8
Slide 13: Costs, Expenses and Margins
Costs, Expenses and Margins ADJUSTED COST OF GOODS SOLD AND OPERATING EXPENSES(1) as % of Total Revenues 145.3% 145.8% 136.8% 137.9% 18.9% 17.7% 118.1% 120.7% 18.0% 16.6% 121.3% 119.0% 120.7% 119.8% 118.4% 114.4% 110.0% 13.2% 15.0% 29.6% 31.5% 18.2% 18.2% 106.3% 26.3% 16.8% 19.6% 19.1% 11.0% 29.9% 1
Slide 14: Operating Expenses
Operating Expenses ADJUSTED OPERATING EXPENSES(1) in US$M $44.1 $44.9 $42.5 $43.5 $40.3 $6.8 $7.3 $7.3 $7.3 $35.2 $6.8 $34.6 $31.4 $28.9 $5.6 $10.8 $29.9 $11.4 $12.9 $7.3 $28.5 $27.4 $28.0 $10.9 $12.1 $6.1 $25.8 $4.4 $6.2 $9.2 $6.2 $6.6 $6.5 $10.6 $5.8 $7.4 $8.4 $7.1 $6.6 $5.9 $6.3 $6.3 $24.8 $26.5
Slide 15: Adjusted EBITDA and Margin
Adjusted EBITDA and Margin ADJUSTED EBITDA in US$M $5.0 10.0% 0.0% $0.0 (5.6%) (9.2%) ($2.0) (10.0%) (12.7%) ($3.7) ($5.0) (17.3%) ($4.4) (17.7%) (19.5%) (18.4%) (17.6%) (20.2%) (21.1%) ($6.4) ($6.1) ($6.0) (20.0%) ($6.6) ($7.3) ($8.5) ($9.1) ($10.0) (30.0%) (32.5%) ($13.1) (37.4%) (40.0%) ($15.0) (
Slide 16: Non-GAAP Net Income and Margin
Non-GAAP Net Income and Margin Non-GAAP Net Income in US$M $5.0 3.9% 7.5% $1.4 $0.0 (2.5%) (6.3%) (10.8%) ($2.2) (13.8%) (14.5%) (12.5%) ($4.3) ($5.0) (19.4%) ($4.8) (17.5%) ($5.8) ($6.0) ($6.6) (22.5%) (25.4%) (25.1%) (29.5%) ($9.1) ($10.0) (32.5%) ($11.4) ($11.9) (39.3%) ($15.0) (43.9%) (42.9%) (4
Slide 17: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $3.7 $3.4 $(3.0) $(3.2) $(5.3) $(5.6) $(6.5) $(7.1) $(7.6) $(7.9) 23Q2 23Q3 23Q4 24Q1 24Q2 23Q2 23Q3 23Q4 24Q1 24Q2 Agora, Inc. 17
Slide 18: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF JUNE 30, 2024 in US$M Cash & cash equivalents 38 50 Short-term bank deposits 199 42 Short-term financial 115 products issued by banks 371 Long-term bank deposits 10 Long-term financial 9 products issued by banks Total 371 587 63 165 80 Cash, cash equivalen
Slide 19: Share Repurchase Program
Share Repurchase Program As of June 30, 2024, we repurchased 30.6 million ADSs(1) for approximately US$109.9 million, representing 55% of the US$200 million share repurchase program. Our current $200 million share repurchase program will expire at the end of February 2025. VALUE OF SHARES REPURCHASE
Slide 20: Appendix
Appendix Agora, Inc.
Slide 21: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Gross Margin (US$000’s) 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 Total Revenues 40,979 40,988 40,118 36,443 34,038 35,016 36,041 33,021 34,209 GAAP Gross Profit 26,609 24,349 24,391 22,846 21,536 22,422 22,671 20,224 21,226 (+) Share-based Compe
Slide 22: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Sales & Marketing Expenses (US$000’s) 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 GAAP Sales & Marketing 13,117 14,607 12,189 10,476 8,638 7,789 7,055 6,814 6,270 (-) Share-based Compensation (1,859) (1,244) (1,090) (1,733) (1,172) (800) (440) （303
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 Total Revenues 40,979 40,988 40,118 36,443 34,038 35,016 36,041 33,021 34,209 Adjusted Gross Profit 28,615 26,078 26,049 24,440 22,884 23,437 23,501 20,884 21,695 Adjusted Research & Development (2
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Income(Loss) Margin (US$000’s) 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 Total Revenues 40,979 40,988 40,118 36,443 34,038 35,016 36,041 33,021 34,209 GAAP Net Loss (30,678) (27,699) (35,059) (16,802) (45,293) (22,513) (2,611) (9,463) (9,242) (+) Share-based Co
Slide 25: Thank you
Thank you Agora, Inc.