Slide 1: Agora, Inc. 2024 Q1 Earnings
Agora, Inc. 2024 Q1 Earnings May 22, 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: Adaptive Video Optimization Technology
Business Update - Agora Adaptive Video Optimization Technology ⚫ Leverages various machine learning algorithms to dynamically adjusts parameters and optimizes performance at every step of the video processing pipeline, ensuring: ⚫ Optimized image quality ⚫ Unmatched video fluency ⚫ Ultra-low latency
Slide 5: Business Update - Agora: RTE's Future with Multimodal AI
Business Update - Agora RTE’s Future with End-to-End Multimodal AI Models ⚫ OpenAI recently launched GPT-4o that can reason across audio, vision, and text in real time ⚫ The importance of low-latency and highly reliable transmission between human users and AI models will become higher than ever, put
Slide 6: Business Update - Shengwang: Sport Event Broadcasting
Business Update - Shengwang Solution for Sport Event Broadcasting ⚫ A powerful, flexible and cost-effective alternative to traditional satellite and studio-based Shengwang Live game 500ms latency broadcasting solution ⚫ Multiple hosts and commentators can cover the same game in different channels to
Slide 7: Business Update - Shengwang: 2024 ChaoYinSu Program
Business Update - Shengwang 2024 ChaoYinSu Program ⚫ In 2024 ChaoYinSu (meaning Supersonic) Program, we partner with Moonshot AI, a prominent player in foundational generative AI models, to facilitate start-ups to explore and develop applications that harness the power of RTE and generative AI ⚫ Win
Slide 8: 2024 Q1 Financial Update
2024 Q1 Financial Update Agora, Inc.
Slide 9: Customer Base
Customer Base ACTIVE CUSTOMERS (1)(2) 5,698 5,827 5,552 5,553 5,400 4,034 4,144 3,833 3,919 3,992 1,481 1,560 1,664 1,683 1,720 Mar 23 Jun 23 Sep 23 Dec 23 Mar 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 (1) in US$M in RMB Millions ¥148.3 ¥144.2 ¥141.2 ¥131.5 ¥122.6 $15.3 $15.3 $15.3 $15.8 $15.1 23Q1 23Q2 23Q3 23Q4 24Q1 23Q1 23Q2 23Q3 23Q4 24Q1 USD/RMB 6.85 7.01 7.17 7.14 7.10 In US$M $21.0 $18.7 $19.7 $20.7 $17.2 Notes: Agora, Inc. 1. Shengwang
Slide 11: Net Retention Rate
Net Retention Rate DOLLAR–BASED NET RETENTION RATE (1)(2) Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Agora >130% 130% 108% 98% 93% 92% Shengwang 96% 92% 91% 89% 82% 78% Notes: 1. We calculate Dollar-Based Net Retention Rate for a trailing 12-month period by first identifying all customers in the prio
Slide 12: Group Revenues
Group Revenues TOTAL REVENUES in US$M $45.0 $42.3 $40.2 $40.4 $41.0 $41.0 $40.1 $38.6 $1.0 $0.2 $11.2 $1.3 $1.4 $1.2 $1.3 $36.4 $36.0 $5.9 $1.5 $0.3 $35.0 $34.0~$36.0 $11.9 $34.0 $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 $18.7 $17.2 $20.3 $20.5 $20.2 $19.3 $16.2 $16.8
Slide 13: Costs, Expenses and Margins
Costs, Expenses and Margins ADJUSTED COST OF GOODS SOLD AND OPERATING EXPENSES(1) as % of Total Revenues 145.3% 145.8% 136.8% 137.9% 18.9% 17.7% 118.1% 120.7% 18.0% 16.6% 121.3% 119.0% 120.7% 119.8% 114.4% 110.0% 13.2% 15.0% 29.6% 31.5% 18.2% 18.2% 106.3% 26.3% 16.8% 19.6% 11.0% 29.9% 17.6% 16.0% 21
Slide 14: Operating Expenses
Operating Expenses ADJUSTED OPERATING EXPENSES(1) in US$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 $10.9 $12.1 $6.1 $25.8 $4.4 $6.2 $9.2 $6.2 $6.5 $10.6 $5.8 $7.4 $8.4 $7.1 $6.6 $6.3 $6.3 $24.8 $26.5 $24.7 $22.6 $23.
Slide 15: Adjusted EBITDA and Margin
Adjusted EBITDA and Margin ADJUSTED EBITDA in US$M $5.0 $0.1 $0.0 $0.0 (5.6%) (9.2%) ($2.0) ($0.1) (12.7%) ($3.7) ($5.0) (17.3%) (17.7%) ($4.4) (19.5%) (18.4%) (20.2%) (21.1%) ($6.1) ($6.4) ($6.6) ($0.2) ($7.3) ($8.5) ($9.1) ($10.0) ($0.3) (32.5%) ($13.1) (37.4%) (40.0%) ($15.0) ($0.4) (42.6%) ($15.
Slide 16: Non-GAAP Net Income and Margin
Non-GAAP Net Income and Margin Non-GAAP Net Income in US$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%) ($5.0) (19.4%) ($4.8) ($4.3) ($5.8) ($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%) (42.5%) ($15.7) (
Slide 17: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $3.7 $3.4 $(3.0) $(3.2) $(5.3) $(5.6) $(6.5) $(7.1) $(8.9) $(9.1) 23Q1 23Q2 23Q3 23Q4 24Q1 23Q1 23Q2 23Q3 23Q4 24Q1 Agora, Inc. 17
Slide 18: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF MARCH 31, 2024 in US$M Cash & cash equivalents 42 56 Short-term bank deposits 238 38 Short-term financial 95 381 products issued by banks Long-term financial 6 products issued by banks Total 381 596 63 166 80 Cash, cash equivalent, bank deposits and 1 fina
Slide 19: Share Repurchase Program
Share Repurchase Program As of March 31, 2024, we repurchased 29.7 million ADSs(1) for approximately US$107.5 million, representing 54% 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 REPURCHAS
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) 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Total Revenues 38,585 40,979 40,988 40,118 36,443 34,038 35,016 36,041 33,021 GAAP Gross Profit 24,074 26,609 24,349 24,391 22,846 21,536 22,422 22,671 20,224 (+) Share-based Compe
Slide 22: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Sales & Marketing Expenses (US$000’s) 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 GAAP Sales & Marketing 13,856 13,117 14,607 12,189 10,476 8,638 7,789 7,055 6,814 (-) Share-based Compensation (1,947) (1,859) (1,244) (1,090) (1,733) (1,172) (800) (
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Total Revenues 38,585 40,979 40,988 40,118 36,443 34,038 35,016 36,041 33,021 Adjusted Gross Profit 26,076 28,615 26,078 26,049 24,440 22,884 23,437 23,501 20,884 Adjusted Research & Development (2
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Income(Loss) Margin (US$000’s) 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Total Revenues 38,585 40,979 40,988 40,118 36,443 34,038 35,016 36,041 33,021 GAAP Net Loss (26,944) (30,678) (27,699) (35,059) (16,802) (45,293) (22,513) (2,611) (9,463) (+) Share-based C
Slide 25: Thank you
Thank you Agora, Inc.