Agora, Inc. (API) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 21, 2022 8:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and thank you for standing by. Welcome to the Agora Inc. Third Quarter 2022 Financial Results Conference Call. At this time, all participants are in the listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

And now, I'd like to hand the conference over to Ms. Fionna Chen, Head of Investor Relations. Thank you. Please, go ahead, ma'am.

Fionna Chen

Thank you, operator. Good morning, everyone, and thank you for joining us for Agora's third quarter 2022 earnings conference call. Our earnings results press release, SEC filings and a replay of today's call can be found on our IR website at investor.agora.io. Joining me today are Tony Zhao, Founder, Chairman and CEO; Jingbo Wang, our CFO.

Reconciliations between our GAAP and non-GAAP results can be found in our earnings press release. During this call, we will make forward-looking statements about our future financial performance and other future events and trends. These statements are only predictions that are based on what we believe today and actual results may differ materially. These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could affect our financial results and the performance of our business and which we discuss in detail in our filings with the SEC, including today's earnings press release and the risk factors and other information contained in the final prospectus relating to our initial public offering. Agora remains no obligation to update any forward-looking statements we may make on today's call.

With that, let me turn it over to Tony.

Tony Zhao

Thanks, Fionna, and welcome, everyone, to our earnings call. Our revenue for the quarter was $41 million, a decrease of 9% year-over-year and flat quarter-over-quarter. During this quarter 36,000 new applications registered on our platform and our total number of register applications exceeded 0.5 million.

At the end of September, our number of active customers was close to 3,000 adding more than 400 compared to one year ago. In the past few quarters, we faced an extremely challenging operating environment. Our revenue was hit by restrictive regulations in certain markets, which was the main reason behind year-over-year revenue decrease.

More recently, inflationary pressure, interest rate hikes and continued turbulence in global capital market have impacted some of our customers through the expansion plan and their ability to raise funding, which, in turn, limited the usage of our products. Lastly, the appreciation of the US dollar also had a negative impact on our non-US dollar denominated revenues.