Agora, Inc. (NASDAQ:API) Q2 2023 Results Conference Call August 21, 2023 9:00 PM ET

Company Participants

Tony Zhao - Co-Founder, Chief Executive Officer & Chairman

Jingbo Wang - Chief Financial Officer

Conference Call Participants

Harry Zhuang - Bank of America Securities

Operator

Good day, and thank you for standing by. Welcome to Agora Inc. Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. The company's earnings results press release, earnings presentation, SEC filings, and a replay of today's call can be found on its IR website at investor.agora.io.

Joining me today are Tony Zhao, Founder, Chairman, and CEO; Jingbo Wang, the company's CFO. Reconciliations between the company's GAAP and non-GAAP results can be found in its earnings press release. During this call, the company will make forward-looking statements about its future financial performance and other future events and trends. These statements are only predictions that are based on what the company believes today and actual results may differ materially.

These forward-looking statements are subject to risk and certainties assumptions and other factors that could affect the company's financial results and the performance of its business, and which the company discussed in detail in its filing with the SEC, including today's earnings press release and the risk factors and other information contained in the final prospectus relating to its initial public offering. Agora Inc. remains no obligation to update any forward-looking statements the company may make on today's call.

With that, let me turn it over to Tony. Hi, Tony.

Tony Zhao

Hi. Thanks operator, and welcome everyone to our earnings call. Our revenue for the second quarter was $15.3 million for Agora, down 5.6% year-on-year, mainly due to a challenging global macro environment and tightening financial conditions of certain customers. Our revenue was RMB 131.5 million for Shengwang, down 11.7% year-on-year if excluding revenue from the disposed customer engagement cloud business and K-12 academic tutoring sector, mainly due to a slowing economy and fast-evolving regulation in certain downstream verticals. As of the end of this quarter, we have 1,560 active customers for Agora and close to 4,000 for Shengwang, an increase of 24% and 5%, respectively compared to 1 year ago.

Now moving on to our business product and technology update for the quarter. First, starting with Agora. We recently announced our partnership with ActiveFence, a leading global provider of AI-driven content detection and moderation service. ActiveFence solution keep end users safe from the widest spectrum of online harms, unwanted content, and the malicious behavior including adult content, bullying and harassment, child abuse, hate speech, illegal goods, violence and more.