Slide 1: 2022 Q3 Earnings
2022 Q3 Earnings November 21, 2022
Slide 2: Disclaimer
Disclaimer Information in this presentation and the accompanying oral presentation (the “Presentation”), including, among others, any statements regarding Agora’s market position, customer data and other metrics, is based on data and analyses from various sources as of the date of this Presentation,
Slide 3: 2022 Q3 Business Highlights
2022 Q3 Business Highlights agora
Slide 4: Product Launch
Product Launch Agora SDK 4.0 More flexible Open and modular architecture by design Simpler to use Developers can integrate a wide range of first-party and third-party extensions with a few lines of code More powerful Supports up to 4K video at ultra-low latency 4
Slide 5: Product Adoption
Product Adoption Live Video Shopping - E-commerce A leading collectibles auction marketplace leverages our platform to hold live auction through real-time video. It provides real- time auctions where customers can engage with the seller and each other in a fast- paced video environment. 5
Slide 6: Product Adoption
Product Adoption Interactive Podcast A global professional network on the internet that leverages Agora technology to provide creators and influencers the ability to have live, interactive conversations with people all over the world, join speakers “on stage” and make broader networking connections
Slide 7: RTE2022 Conference
RTE2022 Conference North America China Asia Pacific Online / San Online Online Francisco 7
Slide 8: Industry Trends
Industry Trends End User Experience Our customer’s business success is profoundly dependent on the end user experience that they can deliver. It is paramount for developers to partner with the most capable and reliable RTE provider. 8
Slide 9: Industry Trends
Industry Trends High-definition Video Mainstream video resolution in real-time engagement steadily increase from 480p to 720p in response to end users’ growing demand for better quality. Changing video resolution leads to an approximately 15% increase in overall session lengths. 9
Slide 10: Industry Trends
Industry Trends Internet of Things IoT devices are increasingly adopting RTE technologies. Devices with RTE features are sold at premium compared with “plain- vanilla” models without such capabilities. We believe it will be one of the fundamental drivers of IoT’s future growth. 10
Slide 11: Senior Management Development
Senior Management Development Shawn Zhong Chief Technology Officer & Chief Scientist CTO & CEO, Hisense Microchip Company 2009-2017 Engineer, Broadcom, 1999-2009 “Since joining Agora as Chief Scientist more than four years ago, Shawn has played a critical role in driving our technology innovation an
Slide 12: 2022 Q3 Financial Update
2022 Q3 Financial Update agora
Slide 13: Steady Growth in Developers and Customers
Steady Growth in Developers and Customers ACCUMULATED REGISTERED APPLICATIONS (1)(3) ACTIVE CUSTOMERS (2)(3) 511,000 2,987 2,877 475,000 2,706 2,670 439,000 2,564 405,000 372,000 215,000 1,662 208,000 1,604 200,000 1,523 1,556 1,464 191,000 181,000 296,000 267,000 1,273 1,325 239,000 1,100 1,147 1,1
Slide 14: Resilient Revenue Growth and Global Expansion
Resilient Revenue Growth and Global Expansion TOTAL REVENUES in US$M $45.0 $42.3 $40.2 $40.4 $41.0 $41.0 $38.6 $35.6 $33.9 $33.3 $30.8 $31.5 $22.4 $23.3 $30.9 $26.3 $22.2 $29.2 $19.1 $23.2 $17.0 $32.0 $28.1 $23.8 $14.9 $13.4 $15.8 $11.3 $13.7 $18.6 $9.8 $16.4 $17.7 $13.5 $14.1 $10.1 $11.0 $11.4 $5.8
Slide 15: Net Expansion Rate
Net Expansion Rate CONSTANT CURRENCY DOLLAR–BASED NET EXPANSION RATE (1)(2) 179% 131% 131% 110% 104% 104% 95% 95% 84% Dec 19 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 US & >130% >130% >130% >130% >130% >130% >130% >130% >130% International China >130% >130% 129% 102% 94% 89% 84% 80% 70
Slide 16: Costs, Expenses and Margins
Costs, Expenses and Margins NON-GAAP COST OF GOODS SOLD AND OPERATING EXPENSES as % of Total Revenues 151.7% 151.5% 142.4% 143.8% 19.1% 18.1% 17.0% 123.1% 125.1% 18.1% 116.5% 114.6% 108.4% 13.3% 15.1% 30.0% 31.8% 26.6% 102.2% 102.2% 101.3% 17.0% 11.1% 30.2% 97.2% 11.3% 8.3% 8.2% 10.0% 22.1% 24.6% 10
Slide 17: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $5.1 $2.9 $(8.8) $(9.9) $(14.0) $(15.9) $(15.6) $(17.0) $(23.8) $(24.2) 21Q3 21Q4 22Q1 22Q2 22Q3 21Q3 21Q4 22Q1 22Q2 22Q3 17
Slide 18: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF SEPTEMBER 30, 2022 in US$M 64 2 483 770 42 56 165 90 1 short-term investments Cash, cash equivalents and Current liabilities 1 Other current assets Non-current liabilities Goodwill Total equity Land use right Other non-current assets 18
Slide 19: Appendix
Appendix agora
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Gross Margin (US$000’s) 20Q3(1) 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 Total Revenues 30,847 33,253 40,225 42,333 45,038 40,386 38,585 40,979 40,988 GAAP Gross Profit 19,264 20,096 23,372 25,859 29,349 25,427 24,074 26,609 24,349 (+) Share-based Compensation 105 18 1
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation General & Administrative (US$000’s) 20Q3(1) 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 GAAP General & Administrative 4,401 6,668 5,721 7,271 7,996 9,338 9,230 8,952 11,257 (-) Share-based Compensation (1,318) (1,015) (1,226) (1,612) (1,179) (2,005) (1,835) (1,986) (1,671
Slide 22: GAAP to Adjusted EBITDA Reconciliation
GAAP to Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) 20Q3(1) 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 Total Revenues 30,847 33,253 40,225 42,333 45,038 40,386 38,585 40,979 40,988 GAAP Operating Loss (3,777) (7,749) (16,012) (19,082) (20,839) (24,760) (29,008) (27,712) (28,921) (+) Share
Slide 23: Thank you
Thank you agora