Slide 1: Agora, Inc. 2024 Q3 Earnings
Agora, Inc. 2024 Q3 Earnings November 25, 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: Conversational AI SDK and Integration with OpenAI
Conversational AI SDK and Integration with OpenAI ⚫ Agora launched Conversational AI SDK in collaboration with OpenAI’s Realtime API to allow developers to bring voice- driven AI experiences to any application. ⚫ Agora and OpenAI will separately charge developers based on their usage. Agora, Inc. 4
Slide 5: Illustration of Conversational AI Solutions
Illustration of Conversational AI Solutions OpenAI’s Realtime API End-to-end Multimodal LLM Streaming Telephony Agora, Inc. 5
Slide 6: Conversational AI Applications in IoT
Conversational AI Applications in IoT ⚫ IoT devices connected to an advanced AI model can easily understand complex requests, hold natural conversations, and take actions based on live video feeds. ⚫ Our customer Miko makes advanced educational robots for kids. With Agora Conversational AI SDK, Miko
Slide 7: TEN (Transformative Extensions Network)
TEN (Transformative Extensions Network) App ⚫ An open-sourced real-time multimodal AI agent RTC / RTM SDK orchestration framework for application developers. Ext Agora SD-RTN ⚫ Supports integration with both OpenAI’s Realtime API TEN Runtime and other large language models (LLMs) with extensions suc
Slide 8: Extensions Supported by TEN
Extensions Supported by TEN Large Language Models (LLMs) Speech-To-Text (STT) Text-To-Speech (TTS) Cosy Real-Time Multi-Modal Chat Engine Vector Database … with many more extensions coming Agora, Inc. 8
Slide 9: Let's Try Realtime API with TEN
Let’s Try Realtime API with TEN https://agent.theten.ai/ Agora, Inc. 9
Slide 10: 10th Annual Real-Time Engagement Conference
10th Annual Real-Time Engagement Conference ⚫ October 25 -26 in Beijing, China. ⚫ Focused on the intersection of AI and RTE technologies, with both registration and attendance hitting record highs. ⚫ Industry-wide enthusiasm around real-time conversational AI, its huge market potential, and our uniq
Slide 11: 2024 Q3 Financial Update
2024 Q3 Financial Update Agora, Inc.
Slide 12: Customer Base
Customer Base ACTIVE CUSTOMERS (1)(2) 5,698 5,827 5,553 5,446 5,403 4,034 4,144 3,833 3,774 3,641 1,664 1,683 1,720 1,672 1,762 Sep 23 Dec 23 Mar 24 Jun 24 Sep 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 13: Group Revenues
Group Revenues TOTAL REVENUES in US$M $41.0 $40.1 $1.4 $1.2 $3.0 $36.4 $36.0 $3.2 $35.0 $34.0~$36.0 $0.3 $34.0 $34.2 $3.1 $2.7 $33.0 $2.4 $31.6 $2.6 $3.3 $3.3 $19.8 $19.9 $17.9 $17.3 $18.0 $15.9 $16.1 $13.9 $15.3 $16.8 $15.8 $15.1 $15.3 $15.3 $15.3 $15.8 $15.6 $15.7 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q
Slide 14: Revenues by Division
Revenues by Division AGORA REVENUES SHENGWANG REVENUES (1) in US$M in RMB Millions ¥129.3 ¥123.7 $15.8 $15.6 $15.7 ¥112.9 $15.3 $15.3 ¥108.2 ¥98.9 23Q3 23Q4 24Q1 24Q2 24Q3 23Q3 23Q4 24Q1 24Q2 24Q3 USD/RMB 7.17 7.14 7.10 7.11 7.12 In US$M $17.3 $18.0 $13.9 $15.3 $15.9 Notes: Agora, Inc. 1. Shengwang
Slide 15: Revenue Contribution: Past vs Present
Revenue Contribution: Past vs Present TOTAL REVENUES $45.0 in US$M Disposed business K12 tutoring business terminated K12 tutoring in China after regulatory experienced huge change China K12 AST growth after COVID outbreak $31.6 Others Others Education Education Social IoT and digital Social transfo
Slide 16: Net Retention Rate
Net Retention Rate DOLLAR–BASED NET RETENTION RATE (1)(2) Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 (3) Agora 98% 93% 92% 92% 94% Shengwang 89% 82% 78% 79% 78% Notes: 1. We calculate Dollar-Based Net Retention Rate for a trailing 12-month period by first identifying all customers in the prior 12-month peri
Slide 17: Proforma Income Statements
Proforma Income Statements 24Q3 Equity award (US$000’s) GAAP Severance cancellation Impairment loss Proforma % Total revenues 31,573 - - - 31,573 100 Cost of revenues 10,524 (333) - - 10,191 32.3 Gross Profit 21,049 333 - - 21,382 67.7 Operating expenses: Research & Development 29,271 (3,653) (9,050
Slide 18: Costs, Expenses and Margins
Costs, Expenses and Margins COST OF GOODS SOLD AND OPERATING EXPENSES as % of Total Revenues 176.3% 178.5% 2.9% 27.5% 148.8% 27.9% 145.6% 147.8% 1.6% 2.6% 141.3% 139.7% 2.6% 2.7% 133.3% 23.0% 22.5% 24.5% 123.8% 2.6% 21.7% 127.5% 35.6% 23.3% 2.9% 2.5% 22.7% 21.4% 19.3% 20.2% 30.4% 28.7% 25.4% 22.2% 2
Slide 19: Operating Expenses
Operating Expenses OPERATING EXPENSES in US$M $55.6 $11.3 $45.9 $42.7 $0.9 $40.3 $0.6 $38.1 $36.9 $8.8 $14.6 $9.2 $0.9 $0.9 $8.2 $33.3 $32.6 $8.3 $31.2 $0.9 $30.1 $8.2 $0.9 $6.9 $0.9 $0.9 $7.5 $7.3 $12.2 $10.5 $7.0 $6.4 $8.6 $7.8 $6.8 $6.3 $7.1 $6.2 $29.8 $29.3 $21.3 $21.0 $20.3 $20.0 $16.3 $18.1 $1
Slide 20: Net Loss and Margin
Net Loss and Margin Net Loss in US$M $0.1 5 $0.0 0 ($0.1) ($2.6) -5 ($3.9) (7.2%) ($6.4) (12.4%) ($0.2) ($7.4) -10 ($9.2) (18.7%) ($11.4) (22.5%) ($0.3) ($12.4) -15 (26.2%) ($15.4) ($0.4) (34.0%) (33.6%) -20 (38.3%) ($0.5) -25 ($26.7) ($0.6) -30 ($0.7) (65.2%) -35 ($0.8) -40 22Q3 (1) 22Q4 (1)(2) 23Q
Slide 21: Balance Sheet
Balance Sheet BALANCE SHEETS SNAPSHOT AS OF SEPTEMBER 30, 2024 in US$M Cash & cash equivalents 32 59 Short-term bank deposits 162 55 Short-term financial 107 products issued by banks 363 Long-term bank deposits 21 Long-term financial 41 products issued by banks Total 363 62 577 166 100 Cash, cash eq
Slide 22: Share Repurchase Program
Share Repurchase Program As of September 30, 2024, we repurchased 32.3 million ADSs(1) for approximately US$113.7 million, representing 57% 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 REPUR
Slide 23: Appendix
Appendix Agora, Inc.
Slide 24: Who We Are
Global pioneer and leader in Real-Time Who We Are Engagement Platform-as-a-Service (“RTE-PaaS”) Who We Serve Software developers Provide a cloud service that enables real-time What We Do video and audio engagement in any App Agora, Inc. 24
Slide 25: Global Presence
Global Presence Agora, Inc. (NASDAQ: API) Santa Clara, U.S. Shanghai, China Agora Headquarters Santa Clara, U.S. (2013-Present) Shengwang Headquarters Shanghai, China (2014-Present) Agora, Inc. 25
Slide 26: Our Platform
Our Platform Real-Time Engagement Platform-as-a-Service Core Products Extensions Application Platforms Voice Video Interactive Live Interactive Recording AI Noise Flexible Classroom Calling Calling Streaming Whiteboard Suppression (Low-code) Broadcast Signaling Chat Analytics Extensions Real-time Ap
Slide 27: SD-RTN and SDK
SD-RTN and SDK Software-Defined Real-Time Network (SD-RTN) End User End User Application Application End User End User Application Application Software Development Kit (SDK) Software Development Kit (SDK) (Sender Device) Running on more than 200 (Receiver Device) co-located data centers worldwide So
Slide 28: Market Leadership
Market Leadership Global Unique Apps with 10,000 Real-time Audio and Video SDK Installed 8,000 6,000 4,000 2,000 0 Competitor A Competitor B Competitor C Competitor D Notes: Number of unique apps with real-time audio and video SDK installed worldwide as of September 30, 2024, ranked by SDK vendor. A
Slide 29: Investment Thesis for Agora, Inc.
Investment Thesis for Agora, Inc. Undisputed leader in RTE technology worldwide endorsed by most elite and tech-savvy customers Uniquely positioned to provide critical infrastructure for tremendous amount of real-time human-AI agent interactions A truly global company with balanced revenue from US,
Slide 30: Thank you
Thank you Agora, Inc.