Agora, Inc. (NASDAQ:API) Q2 2024 Results Conference Call August 19, 2024 9:00 PM ET

Company Participants

Tony Zhao - Founder, Chairman and CEO
Jingbo Wang - CFO

Conference Call Participants

Yang Liu - Morgan Stanley
David Lee - Bank of America Securities

Operator

Good day, and thank you for standing by. Welcome to the Agora, Inc. Second Quarter 2024 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.

The reconciliations between the company's GAAP and non-GAAP results can be found in 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 risks, uncertainties, assumptions and other factors that could affect the company's financial results and the performance of this business in which the company discussed in detail in its filings 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 makes on today's call.

With that, let me turn it over to Tony.

Tony Zhao

Thanks, operator, and welcome everyone to our earnings call. I'll first review our operating results in the past quarter. Agora revenues were $15.6 million in the second quarter, up 2% year-over-year, mainly driven by business expansions in certain use cases, such as live shopping. Shengwang revenue were RMB 132 million in the second quarter, up 0.3% year-over-year and 8% quarter-over-quarter, mainly due to usage growth of digital transformation and Internet-of-Things customers. I'm glad to see that both Agora and Shengwang delivered year-over-year revenue growth this quarter despite a very challenging macro environment. This success is due to our relentless innovation in driving new use cases and enhancing the quality and value of our products in existing use cases.

Now moving on to our business products and technology updates for this quarter. Let's first talk about Agora. Recently, our real-time speech-to-text product transitioned from beta to general availability. As I mentioned in our previous earnings call, this product enables customers to transcribe the audio of each user in the channel. Text can be distributed as live captions to all channel participants to enhance accessibility and user experience. Throughout the development and beta testing stage, we have improved the performance of our product to accommodate up to 3 simultaneous speakers and added support for our major language and dialects. Additionally, our product is integrated with large language models, allowing customers to receive automatically generated summaries of meetings or events and gain insights at the end of each session.