Agora, Inc. (NASDAQ:API) Q4 2023 Earnings Conference Call February 26, 2024 8:00 PM ET

Company Participants

Tony Zhao - Founder, Chairman and CEO

Jingbo Wang - CFO

Conference Call Participants

Yang Liu - Morgan Stanley

Bing Duan - Nomura

Operator

Good day, and thank you for standing by. Welcome to Agora, Inc. Fourth Quarter and Fiscal Year 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 presentations, 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's belief today, and actual results may differ materially.

These forward-looking statements are subject to risks uncertainties, assumptions and other factors that could affect the company's financial results and the performance of its business, and which the company has discussed in details in its filings and 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 take on today's call.

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

Tony Zhao

Thanks, operator. And welcome everyone to our earnings call. Let me first quickly review our operating results in Q4. Revenue was $15.3 million for Agora. Flat compared to last quarter, and RMB 148.3 million for Shengwang, an increase of 5% quarter-over-quarter, mainly driven by revenue growth from digital transformation customers.

As of the end of 2023, we had close to 1700 active customers for Agora and more than 4100 for Shengwang. An increase of 18% and 12% respectively, compared to one year ago. I'm pleased to announce that we've achieved non-GAAP net income of $1.4 million in Q4, despite a very challenging operating environment. Thanks to our effective cost control and relentless drive for revenue growth. Jingbo will discuss in more detail shortly.

Now moving on to our business, product and technology update for the quarter. Let's start with Agora. In this quarter, we held a series of webinars to discuss how real time engagement, which combined with state-of-art technologies and artificial intelligence and AR/VR can greatly influence or even transform various industries, including live shopping, telehealth, and Internet of Things. For example, in live shopping, we see more and more digital brands and platforms relying on interactive live streaming, to redefine the way consumers, make their buying decisions. By creating a personalized, social and engaging experience for the audience. A loyal community of repeated buyers will strive and help drive sales.