Slide 1: Agora, Inc. 2023 Q2 Earnings
Agora, Inc. 2023 Q2 Earnings August 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
Business Update - Agora Extensions Marketplace Partner - ActiveFence ⚫ Global leading provider of AI-driven content detection and moderation services ⚫ Practical, user-focused solution to handle emerging online safety and compliance challenges, while boosting user engagement in a safer and more trus
Slide 5: Business Update - Agora
Business Update - Agora Vertical Social Networks - Astrotalk ⚫ Prominent online astrology platform operating in over 60 countries with a network of over 5,000 astrologers ⚫ Innovative use case that enables video calls between clients and astrologers to be broadcasted simultaneously to multiple poten
Slide 6: Business Update - Shengwang
Business Update - Shengwang Participation in World Artificial Intelligence Conference ⚫ One of the 26 leading companies chosen to participate in an exhibition of industrial achievements through artificial intelligence innovations ⚫ Our AI-powered noise suppression capabilities can remove more than 1
Slide 7: Business Update - Shengwang
Business Update - Shengwang High-Definition Solution ⚫ From separate products, features and third-party extensions to use case-oriented solutions with best practices tailored to specific use cases (Here comes high-definition solution!) ⚫ Customers now enjoy shorter development time AND enhanced user
Slide 8: Upcoming RTE2023 Conference
Upcoming RTE2023 Conference Agora Shengwang Sept 13 through Oct 5, 2023 Oct 24 to 25, 2023 Online Beijing, China Agora, Inc. 8
Slide 9: 2023 Q2 Financial Update
2023 Q2 Financial Update Agora, Inc.
Slide 10: A Growing Customer Base
A Growing Customer Base ACTIVE CUSTOMERS (1)(2) 5,552 5,400 4,992 5,057 5,115 5,127 3,919 3,992 3,798 3,796 3,705 3,858 1,319 1,422 1,481 1,560 1,134 1,259 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Agora Shengwang Notes: (1) An active customer at the end of the period is an organization or individua
Slide 11: Revenues by Division
Revenues by Division AGORA REVENUES SHENGWANG REVENUES (1) in US$M in RMB Millions ¥164.1 $16.8 $16.2 $15.8 ¥153.9 $15.3 ¥149.0 $15.1 ¥144.2 ¥131.5 22Q2 22Q3 22Q4 23Q1 23Q2 22Q2 22Q3 22Q4 23Q1 23Q2 USD/RMB 6.61 6.83 7.09 6.85 7.01 In US$M $22.5 $22.6 $23.1 $21.0 $18.7 Notes: Agora, Inc. 1. Shengwang
Slide 12: Net Retention Rate
Net Retention Rate DOLLAR–BASED NET RETENTION RATE (1)(2) Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Agora >130% >130% >130% >130% >130% 130% 108% Shengwang 84% 91% 98% 96% 96% 92% 91% Notes: 1. We calculate Dollar-Based Net Retention Rate for a trailing 12-month period by first identifying al
Slide 13: Group Revenues
Group Revenues TOTAL REVENUES in US$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 $35.6 $1.3 $36.4 $34.5~$36.5 $5.9 $1.5 $0.3 $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 $20.3 $20.5 $20.2 $19.3 $1
Slide 14: Costs, Expenses and Margins
Costs, Expenses and Margins ADJUSTED COST OF GOODS SOLD AND OPERATING EXPENSES(1) as % of Total Revenues 145.3% 145.8% 136.8% 137.9% 18.9% 17.7% 118.1% 120.7% 18.0% 16.6% 121.3% 119.0% 120.6% 112.0% 110.0% 13.2% 15.0% 29.6% 31.5% 18.2% 16.8% 18.1% 97.5% 11.0% 26.3% 16.9% 29.9% 82.0% 9.9% 21.7% 24.2%
Slide 15: Effective Expense Control
Effective Expense Control ADJUSTED OPERATING EXPENSES(1) in US$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 10.9 12.1 6.1 25.2 6.2 4.4 9.2 19.6 5.6 10.6 18.5 7.4 8.4 7.1 17.3 2.7 3.1 2.3 6.9 5.4 5.8 26.5 5.4 22.6 23.1 24.8 24.7 20.4 17.1 16.7 16.9 16
Slide 16: 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%) ($3.3) ($3.7) (17.3%) ($5.0) (17.7%) (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) (40.0%) ($15.0) (4
Slide 17: Non-GAAP Net Income and Margin
Non-GAAP Net Income and Margin Non-GAAP Net Income in US$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%) (9.7%) (10.8%) (13.8%) (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%) ($15.0) (43.9%
Slide 18: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $(4.6) $(5.3) $(5.6) $(6.1) $(8.8) $(8.9) $(9.1) $(9.9) $(23.8) $(24.2) 22Q2 22Q3 22Q4 23Q1 23Q2 22Q2 22Q3 22Q4 23Q1 23Q2 Agora, Inc. 18
Slide 19: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF JUNE 30, 2023 in US$M Cash & cash equivalents 38 53 2 Short-term bank deposits 116 Short-term financial 36 products issued by banks 392 Long-term bank deposits 143 Long-term financial 59 products issued by banks Total 392 633 55 166 75 Cash, cash equivalen
Slide 20: 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 Total 20.7M US$82.0M Our current $200 million share re
Slide 21: Appendix
Appendix Agora, Inc.
Slide 22: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Gross Margin (US$000’s) 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 Total Revenues 42,333 45,038 40,386 38,585 40,979 40,988 40,118 36,443 34,038 GAAP Gross Profit 25,859 29,349 25,427 24,074 26,609 24,349 24,391 22,846 21,536 (+) Share-based Compe
Slide 23: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Sales & Marketing Expenses (US$000’s) 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 GAAP Sales & Marketing 11,009 12,734 13,798 13,856 13,117 14,607 12,189 10,476 8,638 (-) Share-based Compensation (1,321) (1,326) (1,240) (1,947) (1,859) (1,244) (1,0
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 Total Revenues 42,333 45,038 40,386 38,585 40,979 40,988 40,118 36,443 34,038 Adjusted Gross Profit 27,564 30,997 27,582 26,076 28,615 26,078 26,049 24,440 22,884 Adjusted Research & Development (2
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Loss Margin (US$000’s) 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 Total Revenues 42,333 45,038 40,386 38,585 40,979 40,988 40,118 36,443 34,038 GAAP Net Loss (15,394) (21,095) (21,175) (26,944) (30,678) (27,699) (35,059) (16,802) (45,293) (+) Share-based Compens
Slide 26: Thank you
Thank you Agora, Inc.