Agora Sa · GPW:AGO
Agora Sa — Q3 2023 Earnings Presentation
32 slides from Agora Sa's earnings presentation, Nov 21, 2023
Slide 1: Agora, Inc. 2023 Q3 Earnings
Agora, Inc. 2023 Q3 Earnings November 21, 2023
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: Livestream Shopping Solution
Business Update - Agora General Availability of Livestream Shopping Solution ⚫ Agora’s solution supports shoppable livestreams, live auctions, personal shopper experiences, and other e-commerce-related use cases ⚫ Live commerce is starting to gain traction and has tremendous growth potential in the
Slide 5: Business Update - Agora: Partnership with The Sandbox
Business Update - Agora Partnership with The Sandbox ⚫ The Sandbox is a subsidiary of Animoca Brands and a leading decentralized gaming virtual world ⚫ Agora’s products and solutions, including real-time voice, video and chat, provide an ideal real-time engagement platform for the metaverse ⚫ To enh
Slide 6: Business Update - Shengwang: RTE x AIGC Solution
Business Update - Shengwang RTE x AIGC Solution More immersive and natural experience at low latency for real-time voice engagement with Large Language Model- powered characters Agora, Inc. 6
Slide 7: Business Update - Shengwang: Partnership with BMW
Business Update - Shengwang Digital Transformation – Partnership with BMW ⚫ Shengwang’s high-definition video with ultra-low latency enables specialists at BMW headquarters to remotely collaborate with technicians at local factories in China ⚫ Shengwang as a trusted partner of large enterprises for
Slide 8: Our AI Capabilities
Our AI Capabilities Agora, Inc.
Slide 9: Leverage AI to Enhance RTE Quality of Experience
Leverage AI to Enhance RTE Quality of Experience Our SDK contained AI-powered real-time on-premise capabilities that aim to enhance real-time engagement experience. By overcoming the limits of devices and network, we strive to democratize high quality RTE and make it ubiquitous. More Immersive and M
Slide 10: Enhance Quality of Experience – Voice
Enhance Quality of Experience – Voice AI Voice Beautifier AI Noise Suppression in a Classroom Without AI With AI Noise Noise Suppression Suppression AI Noise Suppression for Reverberation AI Spatial Audio Without AI With AI Noise Noise Suppression Suppression Agora, Inc.
Slide 11: Enhance Quality of Experience – Video
Enhance Quality of Experience – Video Video Quality Enhancement Robust Performance under Poor Network Without AI With Al Default Adaptive Adaptive enhancement enhancement routing Multi-path routing Agora, Inc.
Slide 12: When RTE Meets AIGC
When RTE Meets AIGC Agora, Inc.
Slide 13: Generative AI Will Bring New RTE Use Cases
Generative AI Will Bring New RTE Use Cases Emerging Use Cases with AI-Powered Characters AI companions or Social games AI tutors for personal with AI hosts or languages assistants players Agora, Inc. 13
Slide 14: Generative AI Will Bring New RTE Use Cases
Generative AI Will Bring New RTE Use Cases Lower the Barriers to Create Applications Delegate tedious coding Leverage AIGC for graphical tasks to advanced co-pilots and user interface design Agora, Inc. 14
Slide 15: 2023 Q3 Financial Update
2023 Q3 Financial Update Agora, Inc.
Slide 16: A Growing Customer Base
A Growing Customer Base ACTIVE CUSTOMERS (1)(2) 5,698 5,552 5,400 5,115 5,127 3,992 4,034 3,919 3,796 3,705 1,422 1,481 1,560 1,664 1,319 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Agora Shengwang Notes: (1) An active customer at the end of the period is an organization or individual developer from which we
Slide 17: Revenues by Division
Revenues by Division AGORA REVENUES SHENGWANG REVENUES (1) in US$M in RMB Millions ¥164.1 $16.8 $15.8 ¥153.9 $15.1 $15.3 $15.3 ¥144.2 ¥141.2 ¥131.5 22Q3 22Q4 23Q1 23Q2 23Q3 22Q3 22Q4 23Q1 23Q2 23Q3 USD/RMB 6.83 7.09 6.85 7.01 7.17 In US$M $22.6 $23.1 $21.0 $18.7 $19.7 Notes: Agora, Inc. 1. Shengwang
Slide 18: Net Retention Rate
Net Retention Rate DOLLAR–BASED NET RETENTION RATE (1)(2) Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Agora >130% >130% >130% >130% >130% 130% 108% 98% Shengwang 84% 91% 98% 96% 96% 92% 91% 89% Notes: 1. We calculate Dollar-Based Net Retention Rate for a trailing 12-month period by first
Slide 19: Group Revenues
Group Revenues TOTAL REVENUES in US$M $45.0 $42.3 $40.2 $40.4 $41.0 $41.0 $40.1 $38.6 $1.0 $0.2 $11.2 $1.3 $1.4 $1.2 $35.5~$37.5 $35.6 $1.3 $36.4 $5.9 $1.5 $0.3 $35.0 $33.9 $33.3 $11.9 $34.0 $11.2 $30.8 $2.3 $2.3 $5.8 $0.4 $1.9 $12.4 $9.7 $6.6 $22.5 $22.6 $23.1 $22.1 $21.0 $18.7 $19.7 $20.3 $20.5 $2
Slide 20: Costs, Expenses and Margins
Costs, Expenses and Margins ADJUSTED COST OF GOODS SOLD AND OPERATING EXPENSES(1) as % of Total Revenues 145.3% 145.8% 136.8% 137.9% 18.9% 17.7% 118.1% 120.7% 18.0% 16.6% 121.3% 119.0% 120.7% 112.0% 110.0% 114.4% 13.2% 15.0% 29.6% 31.5% 18.2% 16.8% 18.2% 97.5% 11.0% 26.3% 17.6% 16.9% 29.9% 82.0% 9.9
Slide 21: Effective Expense Control
Effective Expense Control ADJUSTED OPERATING EXPENSES(1) in US$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 $10.9 $12.1 $6.1 $25.2 $6.2 $4.4 $9.2 $6.2 $19.6 $5.6 $10.6 $18.5 $7.4 $8.4 $7.1 $17.3 $6.6 $2.7 $3.1 $2.3 $6.9 $5.4
Slide 22: Adjusted EBITDA and Margin
Adjusted EBITDA and Margin ADJUSTED EBITDA in US$M 20.3% $10.0 18.7% 20.0% $6.7 $6.9 $5.0 10.0% 3.1% $1.0 0.0% $0.0 (9.9%) (9.2%) (10.0%) (12.7%) ($3.3) ($3.7) (17.3%) ($5.0) (17.7%) ($4.4) (20.2%) (19.5%) (21.1%) (20.0%) ($6.4) ($6.6) ($7.3) ($8.5) ($10.0) ($9.1) (30.0%) (32.5%) (37.4%) ($13.1) (40
Slide 23: Non-GAAP Net Income and Margin
Non-GAAP Net Income and Margin Non-GAAP Net Income in US$M $10.0 15.9% 17.2% 17.5% $5.7 $5.8 $5.0 7.5% 2.0% $0.6 $0.0 (2.5%) (6.3%) (9.7%) (10.8%) (13.8%) ($2.2) (12.5%) ($3.2) ($5.0) ($4.3) (19.4%) ($5.8) (22.5%) (25.4%) (25.1%) ($6.6) (29.5%) ($9.1) ($10.0) (32.5%) ($11.4) ($11.9) (39.3%) (42.9%)
Slide 24: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $(3.0) $(3.2) $(4.6) $(5.3) $(5.6) $(6.1) $(8.8) $(8.9) $(9.1) $(9.9) 22Q3 22Q4 23Q1 23Q2 23Q3 22Q3 22Q4 23Q1 23Q2 23Q3 Agora, Inc. 24
Slide 25: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF SEPTEMBER 30, 2023 in US$M Cash & cash equivalents 28 56 2 Short-term bank deposits 88 Short-term financial 55 products issued by banks 373 Long-term bank deposits 143 Long-term financial 59 products issued by banks Total 373 609 53 166 75 Cash, cash equiv
Slide 26: Share Repurchase Program
Share Repurchase Program # of ADSs Total ADSs outstanding repurchased (1) Cost at period end 1Q22 0.9M US$8.0M 112.8M 2Q22 1.5M US$11.7M 111.4M 3Q22 0.9M US$3.5M 111.4M 4Q22 5.7M US$18.6M 106.7M 1Q23 5.4M US$19.5M 102.2M 2Q23 6.3M US$20.7M 97.5M 3Q23 4.3M US$12.3M 94.3M Total 24.9M US$94.3M Our curr
Slide 27: Appendix
Appendix Agora, Inc.
Slide 28: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Gross Margin (US$000’s) 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 Total Revenues 45,038 40,386 38,585 40,979 40,988 40,118 36,443 34,038 35,016 GAAP Gross Profit 29,349 25,427 24,074 26,609 24,349 24,391 22,846 21,536 22,422 (+) Share-based Compe
Slide 29: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Sales & Marketing Expenses (US$000’s) 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 GAAP Sales & Marketing 12,734 13,798 13,856 13,117 14,607 12,189 10,476 8,638 7,789 (-) Share-based Compensation (1,326) (1,240) (1,947) (1,859) (1,244) (1,090) (1,73
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 Total Revenues 45,038 40,386 38,585 40,979 40,988 40,118 36,443 34,038 35,016 Adjusted Gross Profit 30,997 27,582 26,076 28,615 26,078 26,049 24,440 22,884 23,437 Adjusted Research & Development (2
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Loss Margin (US$000’s) 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 Total Revenues 45,038 40,386 38,585 40,979 40,988 40,118 36,443 34,038 35,016 GAAP Net Loss (21,095) (21,175) (26,944) (30,678) (27,699) (35,059) (16,802) (45,293) (22,513) (+) Share-based Compens
Slide 32: Thank you
Thank you Agora, Inc.