Q4 2024 Agora Inc Earnings Call Transcript
Key Points
- Agora Inc (API) achieved GAAP profitability for the first time in several years, marking a significant milestone.
- Total revenue in the fourth quarter was $34.5 million, up 4% year over year, driven by business expansion in live shopping and entertainment.
- The company has over 1,700 active customers for Aurora and close to 2,000 for Show on, showing a 2% and 8% increase respectively compared to the previous year.
- Agora Inc (API) launched a conversational AI engine, enabling developers to create interactive voice experiences with any AI model, which is expected to drive future growth.
- The company reported a net income of $0.2 million in Q4, translating to a 0.5% net margin, compared to a net loss margin of 7.2% in Q4 last year.
- Show on revenues decreased 5.4% year over year, primarily due to slowing demand from social and entertainment verticals.
- The dollar-based net retention rate is 95% for Aurora and 79% for Show on, indicating potential challenges in retaining customers.
- Gross margin slightly decreased by 0.1% quarter over quarter and 0.8% year over year, reflecting some pressure on profitability.
- Operating expenses were $28.5 million in the fourth quarter, although decreased from previous quarters, still represent a significant cost.
- The company anticipates challenges in AI adoption, as the technology community is still improving foundational models and tools, which may delay the realization of sophisticated AI agents.
Good day and thank you for standing by. Welcome to the Agora Inc. 4th quarter and fiscal year 2024 financial results conference call. During the presentation, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question.
Please press 11 on your telephone. If your question has been answered and you wish to remove yourself from the queue, simply press 11 again. 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 Zao, founder, Chairman. And CEO and Jing Bo Wang, the company's CFO, reconciliations between the company's GAAP and non-gap 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
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