Agora, Inc. (NASDAQ: API) (“Agora”), a pioneer and leading platform
for real-time engagement APIs, today announced its financial
results for the fourth quarter and the fiscal year ended December
31, 2021.
“We closed the year with strong fourth-quarter
results. The adoption of the Agora real-time engagement platform
continues to grow, with our SDKs now installed globally in more
applications than any of our competitors,” said Tony Zhao, founder,
chairman, and CEO of Agora. “We continue to introduce innovative
solutions for metaverse use cases, such as MetaKTV, MetaChat and 3D
Spatial Audio, to empower developers to create connected virtual
worlds without boundaries and strengthen our position as a premier
infrastructure provider for the metaverse.”
Fourth Quarter 2021
Highlights
- Total revenues for
the quarter were $40.4 million, an increase of 21.5% from $33.3
million in the fourth quarter of 2020.
- Active Customers
as of December 31, 2021 were 2,670, excluding those for Easemob, an
increase of 27.4% from 2,095 as of December 31, 2020.
- Constant Currency
Dollar-Based Net Expansion Rate, excluding Easemob, was
104% for the trailing 12-month period ended December 31, 2021.
- Net loss for the
quarter was $21.2 million, compared to net loss of $6.2 million in
the fourth quarter of 2020. After excluding share-based
compensation expenses, acquisition related expenses, amortization
expenses of acquired intangible assets and income tax related to
acquired intangible assets, non-GAAP net loss for the quarter was
$11.9 million, compared to the non-GAAP net loss of $3.2 million in
the fourth quarter of 2020. Adjusted EBITDA for
the quarter was negative $13.1 million, compared to negative $3.3
million in the fourth quarter of 2020.
- Total cash, cash
equivalents and short-term investments as of December 31,
2021 was $755.3 million.
- Net cash generated from
operating activities for the quarter was $5.1 million,
compared to $2.0 million in the fourth quarter of 2020.
Free cash flow for the quarter was $2.9 million,
compared to negative $1.4 million in the fourth quarter of
2020.
Fiscal Year 2021 Highlights
- Total revenues in
2021 were $168.0 million, an increase of 25.8% from $133.6 million
in 2020.
- Net loss in 2021
was $72.4 million, compared to net loss of $3.1 million in 2020.
After excluding share-based compensation expenses, acquisition
related expenses, amortization expenses of acquired intangible
assets and income tax related to acquired intangible assets,
non-GAAP net loss in 2021 was $33.5 million, compared to the
non-GAAP net income of $8.9 million in 2020. Adjusted
EBITDA in 2021 was negative $33.3 million, compared to
$11.2 million in 2020.
- Net cash used in operating
activities in 2021 was $20.0 million, compared to net cash
generated from operating activities of $6.6 million in 2020.
Free cash flow in 2021 was negative $32.2 million,
compared to negative $6.3 million in 2020.
Fourth Quarter 2021 Financial
Results
RevenuesTotal revenues were
$40.4 million in the fourth quarter of 2021, an increase of 21.5%
from $33.3 million in the same period last year, primarily due to
increased usage of our video calling and voice calling products as
a result of our business expansion and usage growth in emerging use
cases.
Cost of RevenuesCost of
revenues was $15.0 million in the fourth quarter of 2021, an
increase of 13.7% from $13.2 million in the same period last year,
primarily due to increase in personnel costs as we continue to
build our service team.
Gross Profit and Gross
MarginGross profit was $25.4 million in the fourth quarter
of 2021, an increase of 26.5% from $20.1 million in the same period
last year. Gross margin was 63.0% in the fourth quarter of 2021, an
increase of 2.6% from 60.4% in the same period last year, primarily
due to the implementation of technical and infrastructural
optimizations.
Operating ExpensesOperating
expenses were $51.9 million in the fourth quarter of 2021, an
increase of 81.9% from $28.5 million in the same period last
year.
- Research and
development expenses were $28.8 million in the fourth
quarter of 2021, an increase of 99.3% from $14.4 million in the
same period last year, primarily due to increased personnel costs
as we continue to build our research and development team,
including an increase in share-based compensation from $1.4 million
in the fourth quarter of 2020 to $4.7 million in the fourth quarter
of 2021.
- Sales and
marketing expenses were $13.8 million in the fourth
quarter of 2021, an increase of 85.5% from $7.4 million in the same
period last year, primarily due to increased personnel costs as we
continue to build our sales and marketing team, including an
increase in share-based compensation from $0.5 million in the
fourth quarter of 2020 to $1.2 million in the fourth quarter of
2021, as well as higher advertising expenses compared to the same
period in the prior year.
- General and
administrative expenses were $9.3 million in the fourth
quarter of 2021, an increase of 40.0% from $6.7 million in the same
period last year, primarily due to increased personnel costs as we
continue to build our administration team, including an increase in
share-based compensation from $1.0 million in the fourth quarter of
2020 to $2.0 million in the fourth quarter of 2021.
Other Operating IncomeOther
operating income was $1.7 million in the fourth quarter of 2021,
compared to $0.7 million in the same period last year, primarily
due to government subsidies.
Loss from OperationsLoss from
operations was $24.8 million in the fourth quarter of 2021,
compared to loss from operations of $7.7 million in the same period
last year.
Interest IncomeInterest income
was $2.1 million in the fourth quarter of 2021, compared to $1.5
million in the same period last year, primarily due to an increase
in the average balance of cash and cash equivalents and short-term
investments due to proceeds from the private placement in the first
quarter of 2021.
Investment LossInvestment loss
was $0.7 million in the fourth quarter of 2021, primarily due to
the impairment of an investment in the fourth quarter of 2021,
whereas there were no material investments in the same period last
year.
Other incomeOther income was
$1.6 million in the fourth quarter of 2021, primarily due to the
income of incentive payments from a depositary bank, whereas there
were no material transactions in the same period last year.
Net LossNet loss was $21.2
million in the fourth quarter of 2021, compared to net loss of $6.2
million in the same period last year.
Net loss attributable to ordinary
shareholdersNet loss attributable to ordinary shareholders
was $21.2 million in the fourth quarter of 2021, compared to $6.2
million in the same period last year.
Net loss per American Depositary
ShareNet loss per American Depositary Share (“ADS”)1 was
$0.19 in the fourth quarter of 2021, compared to $0.06 in the same
period last year.
____________________1 One ADS represents four
Class A ordinary shares.
Fiscal Year 2021 Financial
Results
RevenuesTotal revenues in 2021
were $168.0 million, an increase of 25.8% from $133.6 million in
2020, primarily due to increased usage of our video calling and
voice calling products as a result of our global business
expansion, diversification of product portfolio and usage growth in
emerging use cases.
Cost of RevenuesCost of
revenues in 2021 was $64.0 million, an increase of 35.5% from $47.2
million in 2020, primarily due to increases in bandwidth and
co-location costs, personnel costs, and depreciation of servers and
network equipment as we continue to scale our business.
Gross Profit and Gross
MarginGross profit in 2021 was $104.0 million, an increase
of 20.4% from $86.4 million in 2020. Gross margin in 2021 was
61.9%, a decrease of 2.8% from 64.7% in 2020, primarily due to our
international expansion to regions with higher infrastructure costs
and capacity expansion in anticipation of future usage growth.
Operating ExpensesOperating
expenses in 2021 were $187.3 million, an increase of 100.9% from
$93.2 million in 2020.
- Research and
development expenses in 2021 were $110.7 million, an
increase of 123.6% from $49.5 million in 2020, primarily due to
increased personnel costs as we continue to build our research and
development team, including an increase in share-based compensation
from $5.3 million in 2020 to $19.7 million in 2021.
- Sales and
marketing expenses in 2021 were $46.3 million, an increase
of 79.9% from $25.7 million in 2020, primarily due to increased
personnel costs as we continue to build our sales and marketing
team, including an increase in share-based compensation from $2.1
million in 2020 to $4.8 million in 2021, as well as higher
advertising expenses compared to the prior year.
- General and
administrative expenses in 2021 were $30.3 million, an
increase of 68.4% from $18.0 million in 2020, primarily due to
increased personnel costs as we continue to build our team,
including an increase in share-based compensation from $4.2 million
in 2020 to $6.0 million in 2021, as well as additional expected
credit loss provisions recorded during the year under ASC 326,
Measurement of Credit Losses on Financial Instruments.
Other Operating IncomeOther
operating income in 2021 was $2.6 million, compared to $1.7 million
in 2020, primarily due to government subsidies.
Loss from OperationsLoss from
operations in 2021 was $80.7 million, compared to $5.2 million in
2020.
Interest IncomeInterest income
in 2021 was $8.4 million, compared to $2.7 million in 2020,
primarily due to an increase in the average balance of cash and
cash equivalents and short-term investments due to proceeds from
our initial public offering and concurrent private placement in the
second quarter of 2020 and the private placement in the first
quarter of 2021.
Investment LossInvestment loss
in 2021 was $1.7 million, primarily due to an investment loss of an
equity investment sold in the third quarter of 2021 and impairment
of an investment in the fourth quarter of 2021, whereas there were
no material investments in 2020.
Other incomeOther income in
2021 was $1.6 million, primarily due to the income of incentive
payments from a depositary bank, whereas there were no material
transactions in 2020.
Net LossNet loss in 2021 was
$72.4 million, compared to net loss of $3.1 million in 2020.
Net loss attributable to ordinary
shareholdersNet loss attributable to ordinary shareholders
in 2021 was $72.4 million, compared to $203.3 million in 2020,
primarily due to the accretion of preferred shares to redemption
value before the completion of our initial public offering.
Net loss per American Depositary
ShareNet loss per ADS in 2021 was $0.66, compared to $3.02
in 2020.
Financial Outlook
Based on currently available information, Agora
expects total revenues for the year ending December 31, 2022 to be
between $176 million and $178 million. This outlook reflects
Agora’s current and preliminary views on the market and operational
conditions, and the outlook ranges for the year ending December 31,
2021 reflect various assumptions that are subject to change based
on uncertainties, including but not limited to the impact of the
COVID-19 pandemic and the new regulation on the K12 academic
tutoring sector in China.
Earnings Call
Agora will host a conference call to discuss the
financial results at 5 p.m. Pacific Time / 8:00 p.m. Eastern Time
on the same day. Details for the conference call are as
follows:Event title: Agora, Inc. 4Q and Fiscal Year 2021 Financial
ResultsConference ID: 5725678Direct Event online registration:
http://apac.directeventreg.com/registration/event/5725678Please
register in advance of the conference using the link provided
above. Upon registering, you will be provided with participant
dial-in numbers, Direct Event passcode and unique registrant ID.A
digital recording of the conference call will be available for
replay two hours after the call’s completion (dial-in number: US
18554525696, International +61 2 81990299; same conference ID as
shown above).Please visit Agora’s investor relations website at
https://investor.agora.io/investor-relations on February 22, 2022
to view the earnings release and accompanying slides prior to the
conference call.
Use of Non-GAAP Financial
Measures
Agora has provided in this press release
financial information that has not been prepared in accordance with
generally accepted accounting principles in the United States
(“GAAP”). Agora uses these non-GAAP financial measures internally
in analyzing its financial results and believes that the use of
these non-GAAP financial measures is useful to investors as an
additional tool to evaluate ongoing operating results and trends
and in comparing Agora’s financial results with other companies in
its industry, many of which present similar non-GAAP financial
measures. Besides free cash flow (as defined below), each of these
non-GAAP financial measures represents the corresponding GAAP
financial measure before share-based compensation expenses,
acquisition related expenses, amortization expenses of acquired
intangible assets and income tax related to acquired intangible
assets. Agora believes that such non-GAAP financial measures help
identify underlying trends in its business that could otherwise be
distorted by the effects of such share-based compensation expenses,
acquisition related expenses, amortization expenses of acquired
intangible assets and income tax related to acquired intangible
assets that it includes in its cost of revenues, total operating
expenses and net income (loss). Agora believes that all such
non-GAAP financial measures also provide useful information about
its operating results, enhance the overall understanding of its
past performance and future prospects and allow for greater
visibility with respect to key metrics used by its management in
its financial and operational decision-making.
Non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
financial measures and should be read only in conjunction with
Agora’s consolidated financial statements prepared in accordance
with GAAP. A reconciliation of Agora’s historical non-GAAP
financial measures to the most directly comparable GAAP measures
has been provided in the tables captioned “Reconciliation of GAAP
to Non-GAAP Measures” included at the end of this press release,
and investors are encouraged to review the reconciliation.
Definitions of Agora’s non-GAAP financial
measures included in this press release are presented below.
Non-GAAP Net Income (Loss)
Agora defines non-GAAP net income (loss) as net
income (loss) adjusted to exclude share-based compensation
expenses, acquisition related expenses, amortization expenses of
acquired intangible assets and income tax related to acquired
intangible assets.
Adjusted EBITDA
Agora defines Adjusted EBITDA as net income
(loss) before exchange gain (loss), interest income, investment
income (loss), other income, equity in income of affiliates, income
taxes, depreciation of property and equipment, and adjusted to
exclude the effects of share-based compensation expenses,
acquisition related expenses and amortization expenses of acquired
intangible assets.
Free Cash Flow
Agora defines free cash flow as net cash
provided by operating activities less purchases of property and
equipment. Agora considers free cash flow to be a liquidity measure
that provides useful information to management and investors
regarding net cash provided by operating activities and cash used
for investments in property and equipment required to maintain and
grow the business.
Operating Metrics
Agora also uses other operating metrics included
in this press release and defined below to assess the performance
of its business.
Active Customers
Agora defines an active customer at the end of
any particular period as an organization or individual developer
from which Agora generated more than $100 of revenue during the
preceding 12 months. Agora counts customers based on unique
customer account identifiers. Generally, one software application
uses the same customer account identifier throughout its life cycle
while one account may be used for multiple applications.
Constant Currency Dollar-Based Net
Expansion Rate
Agora calculates Dollar-Based Net Expansion Rate
for a trailing 12-month period by first identifying all customers
in the prior 12-month period, and then calculating the quotient
from dividing the revenue generated from such customers in the
trailing 12-month period by the revenue generated from the same
group of customers in the prior 12-month period. Constant Currency
Dollar-Based Net Expansion Rate is calculated the same way as
Dollar-Based Net Expansion Rate but using fixed exchange rates
based on the daily average exchange rates prevailing during the
prior 12-month period to remove the impact of foreign currency
translations. Agora believes Constant Currency Dollar-Based Net
Expansion Rate facilitates operating performance comparisons on a
period-to-period basis as Agora does not consider the impact of
foreign currency fluctuations to be indicative of its core
operating performance.
Impact of the Recently Adopted
Accounting Pronouncement
Agora adopted ASU 2016-02, Leases (“ASC 842”)
beginning January 1, 2021 and elected to use the modified
retrospective method with the optional transition that allows for a
cumulative-effect adjustment to the opening balance of retained
earnings recorded on January 1, 2021, with no adjustments to prior
periods presented. No cumulative effect adjustment to the opening
balance of retained earnings was required. Upon adoption of ASC 842
on January 1, 2021, Agora recognized right of use assets as well as
lease liabilities of $6.5 million for operating leases. Agora does
not have any finance leases. The adoption of the new guidance did
not have a material effect on our results of operations, financial
condition or liquidity.
Safe Harbor Statements
This press release contains ‘‘forward-looking
statements’’ within the meaning of Section 27A of the Securities
Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended and the Private Securities Litigation
Reform Act of 1995. All statements other than statements of
historical or current fact included in this press release are
forward-looking statements, including but not limited to statements
regarding Agora’s financial outlook, beliefs and expectations.
Forward-looking statements include statements containing words such
as “expect,” “anticipate,” “believe,” “project,” “will” and similar
expressions intended to identify forward-looking statements. Among
other things, the Financial Outlook in this announcement contain
forward-looking statements. These forward-looking statements are
based on Agora’s current expectations and involve risks and
uncertainties. Agora’s actual results and the timing of events
could differ materially from those anticipated in such
forward-looking statements as a result of these risks and
uncertainties, which include, without limitation, risks related to
the growth of the RTE-PaaS market; Agora’s ability to manage its
growth and expand its operations; the continued impact of the
COVID-19 pandemic on global markets and Agora’s business,
operations and customers; Agora’s ability to attract new developers
and convert them into customers; Agora’s ability to retain existing
customers and expand their usage of Agora’s platform and products;
Agora’s ability to drive popularity of existing use cases and
enable new use cases, including through quality enhancements and
introduction of new products, features and functionalities; Agora’s
fluctuating operating results; competition; the effect of broader
technological and market trends on Agora’s business and prospects;
general economic conditions and their impact on customer and
end-user demand; and other risks and uncertainties included
elsewhere in our filings with the Securities and Exchange
Commission, including, without limitation, the final prospectus
related to the IPO filed with the SEC on June 26, 2020. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
All forward-looking statements are qualified in their entirety by
this cautionary statement, and Agora undertakes no obligation to
revise or update any forward-looking statements to reflect events
or circumstances after the date hereof.
About Agora
Agora’s mission is to make real-time engagement
ubiquitous, allowing everyone to interact with anyone, in any app,
anytime and anywhere. Agora’s cloud platform provides developers
simple, flexible and powerful application programming interfaces,
or APIs, to embed real-time video, voice and chat experiences into
their applications. Agora maintains dual headquarters in Shanghai,
China and Santa Clara, California.
For more information, please visit:
www.agora.io.
|
Agora, Inc.Condensed Consolidated Balance
Sheets(Unaudited, in US$ thousands) |
|
|
As of |
|
As of |
|
December 31, |
|
December 31, |
|
2021 |
|
2020 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
285,668 |
|
|
111,218 |
|
Short-term investments |
469,636 |
|
|
524,220 |
|
Accounts receivable, net |
32,619 |
|
|
27,840 |
|
Prepayments and other current assets |
8,801 |
|
|
7,459 |
|
Contract assets |
962 |
|
|
- |
|
Total current assets |
797,686 |
|
|
670,737 |
|
Property and equipment, net |
19,194 |
|
|
16,754 |
|
Operating lease right-of-use assets |
7,436 |
|
|
- |
|
Intangible assets |
6,697 |
|
|
209 |
|
Goodwill |
56,142 |
|
|
3,089 |
|
Long-term investments |
53,925 |
|
|
- |
|
Deferred tax assets |
- |
|
|
511 |
|
Other non-current assets |
3,919 |
|
|
1,604 |
|
Total assets |
944,999 |
|
|
692,904 |
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
5,309 |
|
|
7,721 |
|
Advances from customers |
9,068 |
|
|
1,339 |
|
Taxes payable |
2,435 |
|
|
2,172 |
|
Current operating lease liabilities |
3,957 |
|
|
- |
|
Accrued expenses and other current liabilities |
53,034 |
|
|
25,075 |
|
Total current liabilities |
73,803 |
|
|
36,307 |
|
Long-term payable |
495 |
|
|
82 |
|
Long-term operating lease liabilities |
3,452 |
|
|
- |
|
Deferred tax liabilities |
988 |
|
|
52 |
|
Total liabilities |
78,738 |
|
|
36,441 |
|
|
|
|
|
Shareholders' equity: |
|
|
|
Class A ordinary shares |
37 |
|
|
33 |
|
Class B ordinary shares |
8 |
|
|
8 |
|
Additional paid-in-capital |
1,099,369 |
|
|
818,428 |
|
Accumulated other comprehensive loss |
3,149 |
|
|
1,941 |
|
Accumulated deficit |
(236,302 |
) |
|
(163,947 |
) |
Total shareholders' equity |
866,261 |
|
|
656,463 |
|
Total liabilities and shareholders’ equity |
944,999 |
|
|
692,904 |
|
Agora, Inc.Condensed Consolidated
Statements of Comprehensive Loss(Unaudited, in US$
thousands, except share and per ADS amounts) |
|
|
|
Three Month Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Real-time engagement service revenues |
|
37,709 |
|
|
31,411 |
|
|
159,943 |
|
|
131,149 |
|
Other revenues |
|
2,677 |
|
|
1,842 |
|
|
8,039 |
|
|
2,415 |
|
Total revenues |
|
40,386 |
|
|
33,253 |
|
|
167,982 |
|
|
133,564 |
|
Cost of revenues |
|
14,959 |
|
|
13,157 |
|
|
63,975 |
|
|
47,199 |
|
Gross profit |
|
25,427 |
|
|
20,096 |
|
|
104,007 |
|
|
86,365 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
28,779 |
|
|
14,438 |
|
|
110,666 |
|
|
49,494 |
|
Sales and marketing |
|
13,798 |
|
|
7,437 |
|
|
46,276 |
|
|
25,724 |
|
General and administrative |
|
9,338 |
|
|
6,668 |
|
|
30,326 |
|
|
18,010 |
|
Total operating expenses |
|
51,915 |
|
|
28,543 |
|
|
187,268 |
|
|
93,228 |
|
Other operating income |
|
1,728 |
|
|
698 |
|
|
2,568 |
|
|
1,672 |
|
Loss from operations |
|
(24,760 |
) |
|
(7,749 |
) |
|
(80,693 |
) |
|
(5,191 |
) |
Exchange gain (loss) |
|
765 |
|
|
(31 |
) |
|
557 |
|
|
(65 |
) |
Interest income |
|
2,073 |
|
|
1,527 |
|
|
8,353 |
|
|
2,704 |
|
Investment loss |
|
(692 |
) |
|
- |
|
|
(1,659 |
) |
|
- |
|
Other income |
|
1,597 |
|
|
- |
|
|
1,597 |
|
|
- |
|
Loss before income taxes |
|
(21,017 |
) |
|
(6,253 |
) |
|
(71,845 |
) |
|
(2,552 |
) |
Income taxes |
|
(487 |
) |
|
71 |
|
|
(840 |
) |
|
(562 |
) |
Equity in income of affiliates |
|
329 |
|
|
- |
|
|
329 |
|
|
- |
|
Net loss |
|
(21,175 |
) |
|
(6,182 |
) |
|
(72,356 |
) |
|
(3,114 |
) |
Less: cumulative undeclared dividends on convertible redeemable
preferred shares |
|
- |
|
|
- |
|
|
- |
|
|
(6,715 |
) |
Less: accretion on convertible redeemable preferred shares to
redemption value |
|
- |
|
|
- |
|
|
- |
|
|
(193,466 |
) |
Net loss attributable to ordinary shareholders |
|
(21,175 |
) |
|
(6,182 |
) |
|
(72,356 |
) |
|
(203,295 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
425 |
|
|
1,813 |
|
|
1,307 |
|
|
2,930 |
|
Unrealized loss on available-for-sale debt securities |
|
(251 |
) |
|
- |
|
|
(99 |
) |
|
- |
|
Total comprehensive loss attributable to ordinary shareholders |
|
(21,001 |
) |
|
(4,369 |
) |
|
(71,148 |
) |
|
(200,365 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS attributable to ordinary shareholders, basic and
diluted |
|
(0.19 |
) |
|
(0.06 |
) |
|
(0.66 |
) |
|
(3.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing net loss per ADS
attributable to ordinary shareholders, basic and diluted |
|
446,443,298 |
|
|
408,001,638 |
|
|
440,864,190 |
|
|
268,849,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses* included in: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
423 |
|
|
18 |
|
|
879 |
|
|
357 |
|
Research and development expenses |
|
4,684 |
|
|
1,411 |
|
|
19,737 |
|
|
5,312 |
|
Sales and marketing expenses |
|
1,240 |
|
|
504 |
|
|
4,843 |
|
|
2,061 |
|
General and administrative expenses |
|
2,005 |
|
|
1,015 |
|
|
6,022 |
|
|
4,244 |
|
* In the fourth quarter of 2020, Agora formally
implemented the Venture Partners Plan, which is a new incentive
plan that can be settled in shares or cash at the discretion of
plan administrator. Therefore, $3.4M accrued in prior quarters of
2020 were reclassified from cash bonus expenses to share-based
compensation expenses to reflect the costs related to the new
incentive plan.
|
Agora, Inc.Condensed Consolidated
Statements of Cash Flows(Unaudited, in US$
thousands) |
|
|
|
Three Month Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net loss |
|
(21,175 |
) |
(6,182 |
) |
|
(72,356 |
) |
(3,114 |
) |
Adjustments to reconcile net loss to net cash generated from (used
in) operating activities: |
|
|
|
|
|
|
Share-based compensation expenses |
|
8,352 |
|
2,948 |
|
|
31,481 |
|
11,974 |
|
Depreciation of property and equipment |
|
2,303 |
|
1,514 |
|
|
8,281 |
|
4,460 |
|
Amortization of intangible assets |
|
578 |
|
- |
|
|
1,933 |
|
- |
|
Deferred tax expense |
|
437 |
|
378 |
|
|
238 |
|
378 |
|
Amortization of right-of-use asset and interest on lease
liabilities |
|
996 |
|
- |
|
|
3,724 |
|
- |
|
Change in the fair value of investments |
|
- |
|
33 |
|
|
1,064 |
|
- |
|
Interest income on debt securities |
|
(101 |
) |
- |
|
|
(295 |
) |
- |
|
Equity in income of affiliates |
|
(263 |
) |
- |
|
|
(329 |
) |
- |
|
Impairments of long-term investments |
|
626 |
|
- |
|
|
626 |
|
- |
|
Return on investment from equity affiliates |
|
329 |
|
- |
|
|
329 |
|
- |
|
Changes in assets and liabilities, net of effect of
acquisition: |
|
|
|
|
|
|
Accounts receivable |
|
3,843 |
|
2,344 |
|
|
(3,685 |
) |
(9,789 |
) |
Contract assets |
|
33 |
|
- |
|
|
(240 |
) |
- |
|
Prepayments and other current assets |
|
(10 |
) |
(910 |
) |
|
(907 |
) |
(5,140 |
) |
Other non-current assets |
|
171 |
|
(93 |
) |
|
(128 |
) |
(692 |
) |
Accounts payable |
|
742 |
|
864 |
|
|
(734 |
) |
1,755 |
|
Advances from customers |
|
999 |
|
151 |
|
|
878 |
|
335 |
|
Taxes payable |
|
887 |
|
(715 |
) |
|
155 |
|
(450 |
) |
Operating lease liabilities |
|
(1,023 |
) |
- |
|
|
(3,995 |
) |
- |
|
Deferred income |
|
(288 |
) |
- |
|
|
(102 |
) |
- |
|
Accrued expenses and other liabilities |
|
7,614 |
|
1,635 |
|
|
14,062 |
|
6,847 |
|
Net cash generated from (used in) operating activities |
|
5,050 |
|
1,967 |
|
|
(20,000 |
) |
6,564 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
Purchase of short-term investments |
|
(71,818 |
) |
(297,587 |
) |
|
(504,563 |
) |
(522,730 |
) |
Proceeds from sale and maturity of short-term investments |
|
150,706 |
|
- |
|
|
558,618 |
|
- |
|
Purchase of property and equipment |
|
(2,131 |
) |
(3,347 |
) |
|
(12,211 |
) |
(12,878 |
) |
Purchase of intangible assets |
|
(20 |
) |
- |
|
|
(263 |
) |
- |
|
Purchase of long-term investment |
|
(1,732 |
) |
- |
|
|
(48,843 |
) |
- |
|
Cash paid for acquisition, net of cash received |
|
(13,936 |
) |
556 |
|
|
(50,566 |
) |
556 |
|
Return of investment from equity affiliates |
|
138 |
|
- |
|
|
138 |
|
- |
|
Net cash generated from (used
in) investing activities |
|
61,207 |
|
(300,378 |
) |
|
(57,690 |
) |
(535,052 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
Proceeds from the private placement, net of issuance costs
paid |
|
- |
|
- |
|
|
249,950 |
|
- |
|
Proceeds from issuance of Series C+ convertible redeemable
preferred shares, net of the issuance costs of nil |
|
- |
|
- |
|
|
- |
|
50,000 |
|
Proceeds from the IPO and concurrent private placement, net of
underwriter discounts and commissions and other offering costs
paid |
|
- |
|
(277 |
) |
|
- |
|
483,628 |
|
Proceeds from exercise of employees’ share options |
|
208 |
|
10 |
|
|
2,042 |
|
10 |
|
Payment of financing cost |
|
(55 |
) |
- |
|
|
(55 |
) |
- |
|
Net cash provided by (used in) financing activities |
|
153 |
|
(267 |
) |
|
251,937 |
|
533,638 |
|
Effect of foreign exchange rate changes on cash, cash equivalents
and restricted cash |
|
9 |
|
114 |
|
|
279 |
|
465 |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
|
66,419 |
|
(298,564 |
) |
|
174,526 |
|
5,615 |
|
Cash, cash equivalents and restricted cash at beginning of period
* |
|
219,405 |
|
409,862 |
|
|
111,298 |
|
105,683 |
|
Cash, cash equivalents and restricted cash at end of period ** |
|
285,824 |
|
111,298 |
|
|
285,824 |
|
111,298 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
Income taxes paid |
|
- |
|
- |
|
|
966 |
|
742 |
|
Cash payments included in the measurement of operating lease
liabilities |
|
1,023 |
|
- |
|
|
3,995 |
|
- |
|
Right-of-use assets obtained in exchange for operating lease
obligations |
|
664 |
|
- |
|
|
4,300 |
|
- |
|
Non-cash financing and investing activities: |
|
|
|
|
|
|
Accretion to redemption value of convertible redeemable preferred
shares |
|
- |
|
- |
|
|
- |
|
193,466 |
|
Deposits utilized for employees’ share option exercises |
|
- |
|
(339 |
) |
|
- |
|
(339 |
) |
Payables for property and equipment |
|
373 |
|
2,293 |
|
|
373 |
|
2,293 |
|
Payables for acquisition |
|
- |
|
3,150 |
|
|
4,603 |
|
3,150 |
|
Proceeds receivable from exercise of employees’ share options |
|
329 |
|
612 |
|
|
329 |
|
612 |
|
Payables for financing cost |
|
2,234 |
|
- |
|
|
2,234 |
|
- |
|
Payables for long-term investment |
|
- |
|
- |
|
|
5,490 |
|
- |
|
|
|
|
|
|
|
|
* includes restricted cash balance |
|
156 |
|
80 |
|
|
80 |
|
80 |
|
** includes restricted cash balance |
|
156 |
|
80 |
|
|
156 |
|
80 |
|
Agora, Inc.Reconciliation of GAAP to
Non-GAAP Measures(Unaudited, in US$ thousands,
except share and per ADS amounts) |
|
|
|
|
|
|
|
Three Month Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
GAAP net loss |
|
(21,175 |
) |
(6,182 |
) |
|
(72,356 |
) |
(3,114 |
) |
Add: |
|
|
|
|
|
|
Share-based compensation expenses |
|
8,352 |
|
2,948 |
|
|
31,481 |
|
11,974 |
|
Acquisition related expenses |
|
425 |
|
- |
|
|
5,780 |
|
- |
|
Amortization expenses of acquired intangible assets |
|
556 |
|
- |
|
|
1,861 |
|
- |
|
Income tax related to acquired intangible assets |
|
(84 |
) |
- |
|
|
(283 |
) |
- |
|
Non-GAAP net (loss) income |
|
(11,926 |
) |
(3,234 |
) |
|
(33,517 |
) |
8,860 |
|
|
|
|
|
|
|
|
Net loss |
|
(21,175 |
) |
(6,182 |
) |
|
(72,356 |
) |
(3,114 |
) |
Excluding: |
|
|
|
|
|
|
Exchange gain (loss) |
|
765 |
|
(31 |
) |
|
557 |
|
(65 |
) |
Interest income |
|
2,073 |
|
1,527 |
|
|
8,353 |
|
2,704 |
|
Investment loss |
|
(692 |
) |
- |
|
|
(1,659 |
) |
- |
|
Other income |
|
1,597 |
|
- |
|
|
1,597 |
|
- |
|
Equity in income of affiliates |
|
329 |
|
- |
|
|
329 |
|
- |
|
Income taxes |
|
(487 |
) |
71 |
|
|
(840 |
) |
(562 |
) |
Depreciation of property and equipment |
|
2,303 |
|
1,514 |
|
|
8,281 |
|
4,460 |
|
Share-based compensation expenses |
|
8,352 |
|
2,948 |
|
|
31,481 |
|
11,974 |
|
Acquisition related expenses |
|
425 |
|
- |
|
|
5,780 |
|
- |
|
Amortization expenses of acquired intangible assets |
|
556 |
|
- |
|
|
1,861 |
|
- |
|
Adjusted EBITDA |
|
(13,124 |
) |
(3,287 |
) |
|
(33,290 |
) |
11,243 |
|
|
|
|
|
|
|
|
Net cash generated from (used in) operating activities |
|
5,050 |
|
1,967 |
|
|
(20,000 |
) |
6,564 |
|
Purchase of property and equipment |
|
(2,131 |
) |
(3,347 |
) |
|
(12,211 |
) |
(12,878 |
) |
Free Cash Flow |
|
2,919 |
|
(1,380 |
) |
|
(32,211 |
) |
(6,314 |
) |
Net cash generated from (used in) investing activities |
|
61,207 |
|
(300,378 |
) |
|
(57,690 |
) |
(535,052 |
) |
Net cash provided by (used in) financing activities |
|
153 |
|
(267 |
) |
|
251,937 |
|
533,638 |
|
Investor Contact:
Fionna Chen
investor@agora.io
Media Contact:
Suzanne Nguyen
press@agora.io
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