Slide 1: Agora, Inc. 2023 Q1 Earnings
Agora, Inc. 2023 Q1 Earnings May 30, 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: Corporate Structure Update
Corporate Structure Update Agora, Inc. is now the holding company of two independent businesses (Shengwang) Headquartered in Santa Clara, CA Headquartered in Shanghai, China A pioneer and global leader in A pioneer and leading Real- Real-Time Engagement PaaS Time Engagement PaaS provider in the Chin
Slide 5: Local Leadership Update
Local Leadership Update Agora and Shengwang will be led by separate management teams Stanley Wei Robbin Liu Chief Operating Officer, Agora Chief Operating Officer, Shengwang Group Chief Strategy Officer Group Vice President Agora, Inc. 5
Slide 6: Product Update - Agora: Flexible Classroom
Product Update - Agora Flexible Classroom ⚫ Low-code aPaaS solution designed for building scalable and customizable online classrooms ⚫ We were named a finalist by EdTech Awards in the “e-learning, blended, flipped solution or remote solution” category for our Flexible Classroom capability Agora, In
Slide 7: Product Update - Agora: Metaverse Solutions
Product Update - Agora Metaverse Solutions ⚫ Provides building blocks and a diverse toolset to create branded virtual worlds at any scale, across any industry vertical such as gaming, enterprise, collaboration, education, etc. ⚫ We were recognized as a Webby Award honoree under the category Metavers
Slide 8: Premium and Enterprise Support Packages – New Integrations
Product Update - Agora Premium and Enterprise Support Packages – New Integrations ⚫ Okta integration: manage access to Agora Console through Security Assertion Markup Language and System for Cross-domain Identity Management ⚫ Datadog integration: push analytics usage, quality, and performance data d
Slide 9: Product Update - Shengwang
Product Update - Shengwang Upgrade of Karaoke Product ⚫ First launched in 2021 that could accommodate two users singing together ⚫ Now up to 8 users can sing together with latest version, which unlocks a wide range of new features for our customer’s applications ⚫ Mixing multiple real-time soundtrac
Slide 10: When Generative AI Meets RTE
When Generative AI Meets RTE Significant Expansions of RTE’s Scope and Opportunities ⚫ Generative AI can dramatically enhance end user experiences and create new use cases that were previously impossible ⚫ RTE can now occur between among people, digital twins of people, and fully virtual AI-based ch
Slide 11: 2023 Q1 Financial Update
2023 Q1 Financial Update Agora, Inc.
Slide 12: A Growing Customer Base
A Growing Customer Base ACTIVE CUSTOMERS (1)(2) 5,400 4,992 5,057 5,115 5,127 3,919 3,798 3,796 3,705 3,858 1,259 1,319 1,422 1,481 1,134 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Agora Shengwang Notes: (1) An active customer at the end of the period is an organization or individual developer from which we
Slide 13: 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 ¥149.0 $15.1 ¥140.5 ¥144.2 $13.7 22Q1 22Q2 22Q3 22Q4 23Q1 22Q1 22Q2 22Q3 22Q4 23Q1 USD/RMB 6.35 6.61 6.83 7.09 6.85 In US$M $22.1 $22.5 $22.6 $23.1 $21.0 Notes: Agora, Inc. 1. Shengwang
Slide 14: Group Revenues
Group Revenues TOTAL REVENUES in US$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 $5.9 $1.5 $0.3 $33.9 $33.3 $11.9 $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 $20.3 $20.5 $20.2 $19.3 $19.7 $20.6 $19.2 $21.2 $1
Slide 15: Net Retention Rate
Net Retention Rate DOLLAR–BASED NET RETENTION RATE (1)(2) Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Agora >130% >130% >130% >130% >130% 130% Shengwang 84% 91% 98% 96% 96% 92% Notes: 1. We calculate Dollar-Based Net Retention Rate for a trailing 12-month period by first identifying all customers in t
Slide 16: Costs, Expenses and Margins
Costs, Expenses and Margins NON-GAAP COST OF GOODS SOLD AND OPERATING EXPENSES as % of Total Revenues 151.7% 151.5% 142.4% 143.8% 19.1% 18.1% 125.1% 18.1% 17.0% 127.0% 126.7% 123.1% 116.5% 114.6% 13.3% 15.1% 30.0% 31.8% 18.6% 18.8% 26.6% 101.3% 17.0% 11.1% 30.2% 10.0% 22.1% 24.6% 23.4% 84.9% 18.6% 2
Slide 17: Effective Expense Control
Effective Expense Control NON-GAAP OPERATING EXPENSES in US$M $44.9 $45.6 $44.4 $43.0 $40.8 $7.0 $7.4 $7.4 $7.3 $35.7 $6.8 $35.4 $32.8 $5.6 $10.9 $29.4 $11.6 $13.0 $7.5 $12.2 $6.9 $25.5 $11.1 $4.5 $9.3 $19.8 $5.7 $10.8 $18.8 $7.5 $8.5 $17.6 $2.7 $3.1 $2.4 $6.9 $5.4 $5.9 $27.0 $5.4 $23.5 $25.3 $25.2
Slide 18: Adjusted EBITDA and Margin
Adjusted EBITDA and Margin ADJUSTED EBITDA in US$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%) (21.1%) (20.0%) ($6.4) ($7.3) ($8.5) ($10.0) ($9.1) (30.0%) (32.5%) (37.4%) ($13.1) (40.0%) ($15.0) (40.0%) (42.6%) (
Slide 19: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $(4.6) $(6.1) $(8.8) $(8.9) $(9.1) $(9.9) $(15.9) $(17.0) $(23.8) $(24.2) 22Q1 22Q2 22Q3 22Q4 (1) 23Q1 22Q1 22Q2 22Q3 22Q4 (1) 23Q1 Notes: 1. We made certain update of our unaudited condensed consolidated financial statements as of Decembe
Slide 20: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF MARCH 31, 2023 in US$M Cash & cash equivalents 50 54 3 Short-term bank deposits 160 Short-term financial 35 products issued by banks 417 Long-term bank deposits 113 Long-term financial 59 products issued by banks Total 417 702 61 32 175 74 Cash, cash equiv
Slide 21: Share Repurchase Program
Share Repurchase Program Total shares # of ADSs outstanding repurchased (1) Cost at period end 1Q22 0.9M US$8.0M 112.8M 2Q22 1.5M US$11.7M 111.5M 3Q22 0.9M US$3.5M 112.2M 4Q22 5.7M US$18.6M 107.5M 1Q23 5.4M US$19.5M 102.1M Total 14.4M US$61.3M Our current $200 million share repurchase program will e
Slide 22: Appendix
Appendix Agora, Inc.
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Gross Margin (US$000’s) 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4(1) 23Q1 Total Revenues 40,225 42,333 45,038 40,386 38,585 40,979 40,988 40,118 36,443 GAAP Gross Profit 23,372 25,859 29,349 25,427 24,074 26,609 24,349 24,391 22,846 (+) Share-based Compensation 133 171
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation General & Administrative (US$000’s) 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4(1) 23Q1 GAAP General & Administrative 5,721 7,271 7,996 9,338 9,230 8,952 11,257 9,232 8,809 (-) Share-based Compensation (1,226) (1,612) (1,179) (2,005) (1,835) (1,986) (1,671) (1,770) (1,931
Slide 25: GAAP to Adjusted EBITDA Reconciliation
GAAP to Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4(1) 23Q1 Total Revenues 40,225 42,333 45,038 40,386 38,585 40,979 40,988 40,118 36,443 GAAP Operating Loss (16,012) (19,082) (20,839) (24,760) (29,008) (27,712) (28,921) (30,122) (16,974) (+) Sha
Slide 26: Thank you
Thank you Agora, Inc.