Slide 1: Agora, Inc. 2023 Q4 Earnings
Agora, Inc. 2023 Q4 Earnings February 26, 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: Vertical RTE Webinar Series
Business Update - Agora Vertical RTE Webinar Series ⚫ Agora held a series of Webinar to discuss how RTE transforms various industries with the help of artificial intelligence and AR/VR ⚫ Live Shopping ⚫ Telehealth ⚫ Internet of Things Agora, Inc. 4
Slide 5: New Version of Signaling Product Released
Business Update - Agora New Version of Signaling Product Released ⚫ Provides real-time data synchronization and low- latency event notifications between devices and servers ⚫ New features include unlimited number of users per channel, better synchronization, storage and managing conflicting messages
Slide 6: Twilio Announced End of Life of Programmable Video Product
Business Update - Agora Twilio Announced End of Life of Programmable Video Product ⚫ Twilio announced the end of life of its Programmable Video product in 12 months ⚫ We have published a series of blogs covering guidance and best practices for migrating from Twilio to Agora across major operating sy
Slide 7: Opportunities Brought by Apple Vision Pro
Business Update - Shengwang Opportunities Brought by Apple Vision Pro ⚫ Our RTE SDK is now fully compatible with and optimized for Apple Vision Pro ⚫ We have enabled many customers to launch applications in the Vision Pro App Store ⚫ Apple Vision Pro is expected to open up the possibility for hologr
Slide 8: Introduce Mini Games on Extensions Marketplace
Business Update - Shengwang Introduce Mini Games on Extensions Marketplace ⚫ Partner with leading mini game developers as vendors in our extensions marketplace ⚫ Allow customers to choose popular mini games and easily overlay on video livestreaming ⚫ Customers can benefit with increased user partici
Slide 9: Launch of Virtual Soundcard
Business Update - Shengwang Launch of Virtual Soundcard ⚫ Simulates key components of a professional hardware soundcard, such as exciter, compressor, equalizer and reverberator, to process end users’ voice in real-time ⚫ Voice enhancement and modification could be easily done on end users’ cellphone
Slide 10: 2023 Q4 Financial Update
2023 Q4 Financial Update Agora, Inc.
Slide 11: A Growing Customer Base
A Growing Customer Base ACTIVE CUSTOMERS (1)(2) 5,698 5,827 5,552 5,400 5,127 4,034 4,144 3,919 3,992 3,705 1,422 1,481 1,560 1,664 1,683 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Agora Shengwang Notes: (1) An active customer at the end of the period is an organization or individual developer from which we
Slide 12: Revenues by Division
Revenues by Division AGORA REVENUES SHENGWANG REVENUES (1) in US$M in RMB Millions ¥164.1 $15.8 ¥148.3 $15.1 $15.3 $15.3 $15.3 ¥144.2 ¥141.2 ¥131.5 22Q4 23Q1 23Q2 23Q3 23Q4 22Q4 23Q1 23Q2 23Q3 23Q4 USD/RMB 7.09 6.85 7.01 7.17 7.14 In US$M $23.1 $21.0 $18.7 $19.7 $20.7 Notes: Agora, Inc. 1. Shengwang
Slide 13: Net Retention Rate
Net Retention Rate DOLLAR–BASED NET RETENTION RATE (1)(2) Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Agora >130% >130% >130% >130% >130% 130% 108% 98% 93% Shengwang 84% 91% 98% 96% 96% 92% 91% 89% 82% Notes: 1. We calculate Dollar-Based Net Retention Rate for a trailing 12-month
Slide 14: Group Revenues
Group Revenues TOTAL REVENUES in US$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 $36.0 $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 $19.7 $20.7 $18.7 $20.3 $20.5 $2
Slide 15: Costs, Expenses and Margins
Costs, Expenses and Margins ADJUSTED COST OF GOODS SOLD AND OPERATING EXPENSES(1) as % of Total Revenues 145.3% 145.8% 136.8% 137.9% 18.9% 17.7% 118.1% 120.7% 18.0% 16.6% 121.3% 119.0% 120.7% 112.0% 110.0% 114.4% 13.2% 15.0% 29.6% 26.3% 31.5% 18.2% 16.8% 18.2% 106.3% 97.5% 16.9% 11.0% 29.9% 17.6% 16
Slide 16: Effective Expense Control
Effective Expense Control ADJUSTED OPERATING EXPENSES(1) in US$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 $25.8 $25.2 $6.2 $4.4 $9.2 $6.2 $19.6 $5.6 $10.6 $5.8 $18.5 $7.4 $8.4 $7.1 $17.3 $6.6 $2.7 $3.1 $2.
Slide 17: Adjusted EBITDA and Margin
Adjusted EBITDA and Margin ADJUSTED EBITDA in US$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 (5.6%) (9.9%) (9.2%) (10.0%) (12.7%) ($2.0) ($3.3) ($3.7) ($5.0) (17.3%) (17.7%) ($4.4) (20.2%) (19.5%) (21.1%) (20.0%) ($6.4) ($6.6) ($7.3) ($8.5) ($10.0) ($9.1) (30.0%) (32.5%) (37.4
Slide 18: Non-GAAP Net Income and Margin
Non-GAAP Net Income and Margin Non-GAAP Net Income in US$M $10.0 15.9% 17.2% 17.5% $5.7 $5.8 $5.0 3.9% 7.5% 2.0% $1.4 $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) ($11.9) (39.3%
Slide 19: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $3.7 $3.4 $(3.0) $(3.2) $(4.6) $(5.3) $(5.6) $(6.1) $(8.9) $(9.1) 22Q4 23Q1 23Q2 23Q3 23Q4 22Q4 23Q1 23Q2 23Q3 23Q4 Agora, Inc. 19
Slide 20: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF DECEMBER 31, 2023 in US$M Cash & cash equivalents 37 57 Short-term bank deposits 87 13 Short-term financial 85 products issued by banks 372 Long-term bank deposits 143 Long-term financial 20 products issued by banks Total 372 605 53 167 83 Cash, cash equiv
Slide 21: FY2023 Financial Highlights
FY2023 Financial Highlights Agora, Inc.
Slide 22: Group Revenues
Group Revenues TOTAL REVENUES in US$M $168.0 $160.7 $2.5 $5.4 $40.2 $141.5 $133.6 $0.3 $6.9 $34.5 $90.3 $80.2 $80.3 $64.4 $12.1 $80.7 $44.7 $62.5 $61.0 $40.6 $18.4 $7.6 FY19 FY20 FY21 FY22 FY23 Agora Shengwang - Continuing Shengwang - (Divested) Easemob CEC Shengwang - (Discontinued) K12 AST Agora,
Slide 23: Costs, Expenses and Margins
Costs, Expenses and Margins ADJUSTED COST OF GOODS SOLD AND OPERATING EXPENSES(1) as % of Total Revenues 137.6% 121.3% 17.8% 115.0% 14.3% 100.1% 28.4% 17.1% 92.8% 9.4% 23.5% 10.2% 20.1% 27.4% 17.6% 57.7% 49.6% 44.4% 33.6% 32.5% 29.7% 32.5% 33.9% 33.5% 33.4% FY19 FY20 FY21 FY22 FY23 Cost of Goods Sol
Slide 24: Effective Expense Control
Effective Expense Control ADJUSTED OPERATING EXPENSES(1) in US$M $167.1 $146.9 $28.7 $24.1 $115.6 $45.7 $39.6 $24.3 $80.6 $13.7 $28.4 $45.4 $23.5 $92.7 $6.1 $83.2 $17.6 $62.9 $43.4 $21.7 FY19 FY20 FY21 FY22 FY23 Research & Development Sales and Marketing General Administrative Notes: 1. We define Ad
Slide 25: Adjusted EBITDA and Margin
Adjusted EBITDA and Margin ADJUSTED EBITDA in US$M 20.0% $20.0 8.4% $11.2 10.0% $10.0 0.1% $0.0 0.0% $0.0 (10.0%) (13.8%) ($10.0) (19.8%) (20.0%) ($20.0) ($19.5) (30.0%) (35.3%) ($30.0) ($33.3) (40.0%) ($40.0) (50.0%) ($50.0) (60.0%) ($56.6) ($60.0) FY19 FY20 FY21 FY22 FY23 Adjusted EBITDA Adjusted
Slide 26: Non-GAAP Net Income and Margin
Non-GAAP Net Income and Margin Non-GAAP Net Income in US$M 20.0% $20.0 6.6% $8.9 10.0% $10.0 0.0% (3.0%) $0.0 ($1.9) (10.0%) ($10.0) (20.0%) (21.1%) (20.0%) ($20.0) (30.0%) ($30.0) ($29.9) ($33.5) (44.2%) (40.0%) ($40.0) (50.0%) ($50.0) (60.0%) ($60.0) (70.0%) ($70.0) ($71.1) (80.0%) ($80.0) FY19 FY
Slide 27: Cash Flow
Cash Flow OPERATING CASH FLOW FREE CASH FLOW in US$M in US$M $6.6 $0.7 ($4.1) ($6.3) ($13.6) ($14.5) ($20.0) ($32.2) ($52.4) ($56.5) FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Agora, Inc. 27
Slide 28: Share Repurchase Program
Share Repurchase Program As of December 31, 2023, we repurchased 28.5 million ADSs(1) for approximately US$104.3 million, representing 52% of the US$200 million share repurchase program. The board has authorized an extension of the US$200 million share repurchase program through February 28, 2025. A
Slide 29: Appendix
Appendix Agora, Inc.
Slide 30: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Gross Margin (US$000’s) 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 Total Revenues 40,386 38,585 40,979 40,988 40,118 36,443 34,038 35,016 36,041 GAAP Gross Profit 25,427 24,074 26,609 24,349 24,391 22,846 21,536 22,422 22,671 (+) Share-based Compe
Slide 31: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Sales & Marketing Expenses (US$000’s) 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 GAAP Sales & Marketing 13,798 13,856 13,117 14,607 12,189 10,476 8,638 7,789 7,055 (-) Share-based Compensation (1,240) (1,947) (1,859) (1,244) (1,090) (1,733) (1,172
Slide 32: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 Total Revenues 40,386 38,585 40,979 40,988 40,118 36,443 34,038 35,016 36,041 Adjusted Gross Profit 27,582 26,076 28,615 26,078 26,049 24,440 22,884 23,437 23,501 Adjusted Research & Development (2
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Income(Loss) Margin (US$000’s) 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 Total Revenues 40,386 38,585 40,979 40,988 40,118 36,443 34,038 35,016 36,041 GAAP Net Loss (21,175) (26,944) (30,678) (27,699) (35,059) (16,802) (45,293) (22,513) (2,611) (+) Share-based
Slide 34: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Gross Margin (US$000’s) FY19 FY20 FY21 FY22 FY23 Total Revenues 64,428 133,564 167,982 160,670 141,538 GAAP Gross Profit 44,011 86,365 104,007 99,423 89,475 (+) Share-based Compensation 80 357 879 906 621 Non-GAAP Gross Profit 44,091 86,722 104,886
Slide 35: GAAP to Adjusted Financial Measures Reconciliation
GAAP to Adjusted Financial Measures Reconciliation Sales & Marketing Expenses (US$000’s) FY19 FY20 FY21 FY22 FY23 GAAP Sales & Marketing 19,408 25,724 46,276 53,769 33,958 (-) Share-based Compensation (1,654) (2,061) (4,843) (6,140) (4,145) (-) Acquisition Related Expenses - - (167) - - (-) Amortiza
Slide 36: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA (US$000’s) FY19 FY20 FY21 FY22 FY23 Total Revenues 64,428 133,564 167,982 160,670 141,538 Adjusted Gross Profit 45,280 90,137 111,004 106,818 94,261 Adjusted Research & Development (21,661) (43,436) (83,260) (92,784) (62,891) Adjusted Sales and Marketin
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Income(Loss) Margin (US$000’s) FY19 FY20 FY21 FY22 FY23 Total Revenues 64,428 133,564 167,982 160,670 141,538 GAAP Net Loss (6,177) (3,115) (72,355) (120,380) (87,219) (+) Share-based Compensation 4,253 11,974 31,481 32,363 24,612 (+) Acquisition Related Expenses
Slide 38: Thank you
Thank you Agora, Inc.