Agora, Inc (API) Q4 2024 Earnings Call Transcript

For the period ending December 31, 2024

February 24, 2025 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.'s Fourth Quarter and Fiscal Year 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; and 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 risks, uncertainties, 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 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. has no obligation to update any forward-looking statements the company may make on today's call.

With that, let me turn the call over to Tony. Tony, you may begin.

Tony Zhao

All right. Thank you, operator, and welcome, everyone, to our earnings call. I'll first review our operating results from the past quarter.

This quarter, we achieved GAAP profitability, a significant milestone for our company. This success is a result of strong revenue growth from new use cases and disciplined cost management. While we faced challenges over the past few years, from the pandemic to regulatory changes and macroeconomic pressures, our team's hard work, innovation and focus had brought us back to profitability. As we look ahead to 2025, we remain committed to driving operational efficiency and delivering sustainable profitable growth.

Total revenue in the fourth quarter were $34.5 million, up 4% year-over-year, excluding revenues from certain end of sales, low-margin products, mainly driven by business expansion in certain use cases such as live shopping and entertainment. As of the end of 2024, we had over 1,700 active customers for Agora and close to 2,000 for Shengwang, excluding Easemob, an increase of 2% and 8%, respectively, compared to 1 year ago.