Q1 2025 Agora Inc Earnings Call Transcript
Key Points
- Agora Inc (API) reported its second consecutive quarter of GAAP profitability, driven by double-digit revenue growth and disciplined cost management.
- Total revenue in Q1 was $33.3 million, up 12% year-over-year, with a healthy business expansion and net retention rate recovery.
- The company launched its Conversational AI Engine in China, which is in public beta for the US and global markets, showing industry-leading performance.
- Agora Inc (API) introduced a Conversational AI device kit, enabling manufacturers to add AI to IoT devices, reducing R&D costs and time to market.
- The company achieved a positive operating cash flow of $17.6 million in Q1, a significant turnaround from the previous year's negative cash flow.
- Shengwang revenues declined 13.7% sequentially, mainly due to normal seasonality and reduced activity during holidays.
- The dollar-based net retention rate for Shengwang was 85%, indicating room for improvement compared to Agora's 96%.
- Despite profitability, the net income margin was modest at 1.2%, highlighting the need for further financial strengthening.
- The competitive landscape in China remains fierce, with lower margins compared to global markets.
- The timing for massive adoption of Conversational AI remains uncertain, as product-market fit varies across different verticals.
Good day, and thank you for standing by. Welcome to Agora Inc. first-quarter 2025 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.
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
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