Agora, Inc. (NASDAQ: API) (“Agora”), a pioneer and leading platform
for real-time engagement APIs, today announced its unaudited
financial results for the fourth quarter and the fiscal year ended
December 31, 2022.
“We made significant adjustments to our
organization and strategy to overcome the many challenges in 2022,
including regulatory changes in certain market and a turbulent
macroeconomic environment,” said Tony Zhao, founder, chairman and
CEO of Agora. “In recent months, we further streamlined our
operations and simplified our organizational structure to help our
teams become more customer-centric and more focused on local market
dynamics. Looking ahead, I remain cautious about the macroeconomic
environment but optimistic about the market for real-time
engagement technology. In 2023, we will be laser-focused on
creating customer value, enhancing the competitiveness of our core
products, and expanding our market share globally.”
Fourth Quarter 2022
Highlights
- Total revenues for
the quarter were $40.1 million, a decrease of 0.7% from $40.4
million in the fourth quarter of 2021.
- Active Customers
as of December 31, 2022 were 3,066, excluding those for Easemob, an
increase of 14.8% from 2,670 as of December 31, 2021.
- Constant Currency
Dollar-Based Net Expansion Rate (DBNER), excluding
Easemob, was 81% for the trailing 12-month period ended December
31, 2022. Specifically, DBNER was approximately 118% for the US and
International business, and approximately 100% for the China
business (excluding business impacted by regulatory changes in the
K12 academic tutoring sector).
- Net loss for the
quarter was $35.1 million, compared to net loss of $21.2 million in
the fourth quarter of 2021. After excluding share-based
compensation expenses, acquisition related expenses, financing
related expenses, amortization expenses of acquired intangible
assets, income tax related to acquired intangible assets and
impairment of goodwill, non-GAAP net loss for the quarter was $15.7
million, compared to non-GAAP net loss of $11.9 million in the
fourth quarter of 2021. Adjusted EBITDA for the
quarter was negative $8.5 million, compared to negative $13.1
million in the fourth quarter of 2021.
- Total cash, cash
equivalents and short-term investments as of December 31,
2022 was $427.7 million.
- Net cash generated from
operating activities for the quarter was $3.4 million,
compared to $5.1 million in the fourth quarter of 2021.
Free cash flow for the quarter was $1.9 million,
compared to $2.9 million in the fourth quarter of 2021.
Fiscal Year 2022 Highlights
- Total revenues in
2022 were $160.7 million, a decrease of 4.4% from $168.0 million in
2021.
- Net loss in 2022
was $120.4 million, compared to net loss of $72.4 million in 2021.
After excluding share-based compensation expenses, acquisition
related expenses, financing related expenses, amortization expenses
of acquired intangible assets, income tax related to acquired
intangible assets and impairment of goodwill, non-GAAP net loss in
2022 was $71.1 million, compared to non-GAAP net loss of $33.5
million in 2021. Adjusted EBITDA in 2022 was
negative $56.6 million, compared to negative $33.3 million in
2021.
- Net cash used in operating
activities in 2022 was $44.4 million, compared to $20.0
million in 2021. Free cash flow in 2022 was
negative $48.5 million, compared to negative $32.2 million in
2021.
Fourth Quarter 2022 Financial
Results
RevenuesTotal revenues were
$40.1 million in the fourth quarter of 2022, a decrease of 0.7%
from $40.4 million in the same period last year, primarily due to
significant decrease in usage from the K12 academic tutoring sector
in certain market following regulatory changes and a decrease in
revenues from Easemob’s customer engagement cloud business, which
were offset in part by our business expansion and usage growth in
other sectors and regions.
Cost of RevenuesCost of
revenues was $15.7 million in the fourth quarter of 2022, an
increase of 5.1% from $15.0 million in the same period last year,
primarily due to the increase in bandwidth usage and co-location
costs.
Gross Profit and Gross
MarginGross profit was $24.4 million in the fourth quarter
of 2022, a decrease of 4.1% from $25.4 million in the same period
last year. Gross margin was 60.8% in the fourth quarter of 2022, a
decrease of 2.2% from 63.0% in the same period last year, mainly
due to an increase in revenue from our broadcast streaming product
which had lower gross margin.
Operating ExpensesOperating
expenses were $42.7 million in the fourth quarter of 2022, a
decrease of 17.8% from $51.9 million in the same period last
year.
- Research and
development expenses were $21.3 million in the fourth
quarter of 2022, a decrease of 26.1% from $28.8 million in the same
period last year, primarily due to decreased personnel costs as we
optimized and reduced our global workforce, including a decrease in
share-based compensation from $4.7 million in the fourth quarter of
2021 to $3.7 million in the fourth quarter of 2022.
- Sales and
marketing expenses were $12.2 million in the fourth
quarter of 2022, a decrease of 11.7% from $13.8 million in the same
period last year, primarily due to decreased personnel costs as we
reduced our global workforce.
- General and
administrative expenses were $9.2 million in the fourth
quarter of 2022, a decrease of 1.1% from $9.3 million in the same
period last year, primarily due to decreased personnel costs,
including a decrease in share-based compensation from $2.0 million
in the fourth quarter of 2021 to $1.8 million in the fourth quarter
of 2022.
Other Operating IncomeOther
operating income was $0.1 million in the fourth quarter of 2022,
compared to $1.7 million in the same period last year, primarily
due to decrease in government subsidies.
Loss from OperationsLoss from
operations was $18.2 million in the fourth quarter of 2022,
compared to $24.8 million in the same period last year.
Interest IncomeInterest income
was $3.2 million in the fourth quarter of 2022, compared to $2.1
million in the same period last year, primarily due to the increase
in interest rate.
Impairment of
GoodwillImpairment of goodwill was $11.9 million in the
fourth quarter of 2022, primarily due to the impairment related to
Easemob as the financial performance of customer engagement cloud
business fell below our original expectations, whereas there were
no material transactions in the same period last year.
Investment LossInvestment loss
was $7.8 million in the fourth quarter of 2022, compared to $0.7
million in the same period last year, primarily due to the
impairment of equity investments in the fourth quarter of 2022.
Net LossNet loss was $35.1
million in the fourth quarter of 2022, compared to $21.2 million in
the same period last year.
Net Loss per American Depositary Share
attributable to ordinary shareholdersNet loss per American
Depositary Share (“ADS”)1 attributable to ordinary shareholders was
$0.32 in the fourth quarter of 2022, compared to $0.19 in the same
period last year.
Fiscal Year 2022 Financial
Results
RevenuesTotal revenues in 2022
were $160.7 million, a decrease of 4.4% from $168.0 million in
2021, primarily due to significant decrease in usage from the K12
academic tutoring sector in certain market following regulatory
changes, which were offset in part by our business expansion and
usage growth in other sectors and regions.
Cost of RevenuesCost of
revenues in 2022 was $61.2 million, a decrease of 4.3% from $64.0
million in 2021, primarily due to the decrease in bandwidth usage
and co-location costs.
Gross Profit and Gross
MarginGross profit in 2022 was $99.4 million, a decrease
of 4.4% from $104.0 million in 2021. Gross margin in 2022 was
61.9%, flat compared to 2021.
Operating ExpensesOperating
expenses in 2022 were $206.9 million, an increase of 10.5% from
$187.3 million in 2021.
- Research and
development expenses in 2022 were $114.5 million, an
increase of 3.5% from $110.7 million in 2021, primarily due to team
expansion and increased personnel costs in the first half of 2022,
which were offset in part by the optimization and reduction of our
global workforce in the fourth quarter of 2022.
- Sales and
marketing expenses in 2022 were $53.8 million, an increase
of 16.2% from $46.3 million in 2021, primarily due to team
expansion and increased personnel costs in the first half of 2022,
which were offset in part by a reduction of our global workforce in
the fourth quarter of 2022, as well as higher advertising expenses
compared to the prior year.
- General and
administrative expenses in 2022 were $38.7 million, an
increase of 27.5% from $30.3 million in 2021, primarily due to team
expansion and increased personnel costs, including an increase in
share-based compensation from $6.0 million in 2021 to $7.3 million
in 2022, as well as higher professional services expenses compared
to the prior year.
Other Operating IncomeOther
operating income in 2022 was $3.7 million, compared to $2.6 million
in 2021, primarily due to government subsidies.
Loss from OperationsLoss from
operations in 2022 was $103.8 million, compared to $80.7 million in
2021.
Exchange (Loss) GainExchange
loss in 2022 was $5.0 million, compared to exchange gain of $0.6
million in 2021, mainly due to the appreciation of the U.S. dollar
against the Renminbi and an increase in the average balance of
Renminbi-dominated cash and short-term investments held by the
subsidiaries in Hong Kong (whose functional currency is the U.S.
dollar).
Interest IncomeInterest income
in 2022 was $9.6 million, compared to $8.4 million in 2021,
primarily due to the increase in interest rate.
Impairment of
GoodwillImpairment of goodwill in 2022 was $11.9 million,
primarily due to the impairment related to Easemob as the financial
performance of customer engagement cloud business fell below our
original expectations, whereas there were no material transactions
in 2021.
Investment LossInvestment loss
was $8.8 million in 2022, compared to $1.7 million in 2021,
primarily due to the impairment of equity investments in the fourth
quarter of 2022.
Net LossNet loss in 2022 was
$120.4 million, compared to net loss of $72.4 million in 2021.
Net Loss per ADS attributable to
ordinary shareholdersNet loss per ADS attributable to
ordinary shareholders in 2022 was $1.08, compared to $0.66 in
2021.
Sale of Customer Engagement Cloud
Business
On December 15, 2022, Agora entered into a
definitive agreement to sell the customer engagement cloud business
of Easemob to TI Cloud Inc., a leading Customer Contact SaaS
provider in China, for approximately US$14.6 million (subject to
certain closing adjustments) in an all-cash transaction. The
transaction was closed on February 1, 2023.
The revenues attributable to this divested
business were approximately $5.3 million for the year ended
December 31, 2022.
Share Repurchase Program
During the three months ended December 31, 2022,
Agora purchased approximately 22.6 million of its class A ordinary
shares (equivalent to approximately 5.7 million ADSs) for
approximately US$18.6 million under its share repurchase program,
representing 9% of its US$200 million share repurchase program.
During the twelve months ended December 31,
2022, Agora repurchased approximately 35.8 million of its class A
ordinary shares (equivalent to approximately 9.0 million ADSs) for
approximately US$41.8 million under its share repurchase program,
representing 21% of its US$200 million share repurchase
program.
As of December 31, 2022, Agora had approximately
428.6 million ordinary shares (equivalent to approximately 107.2
million ADSs) issued and outstanding, compared to approximately
450.0 million ordinary shares (equivalent to approximately 112.5
million ADSs) as of December 31, 2021.
The board of directors has authorized an
extension of the existing share repurchase program through February
28, 2024, with all other terms remaining unchanged.
We were also informed by our founder, chairman
and CEO, Tony Zhao, that as of December 31, 2022, he had used his
personal funds to purchase a total of approximately 1.6 million of
our ADSs in the open market under his US$30 million management
share purchase plan.
Financial Outlook
Based on currently available information, Agora
expects total revenues for the year ending December 31, 2023 to be
between 155 million and 157 million, compared to total revenues of
$160.7 million, or $155.4 million if excluding the divested
Customer Engagement Cloud business, for the year ending December
31, 2022. 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, 2023 reflect various
assumptions that are subject to change based on uncertainties,
including but not limited to the impact of COVID-19.
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 2022 Financial ResultsThe call
will be available at
https://edge.media-server.com/mmc/p/jjo8zgtiInvestors who want to
hear the call should log on at least 15 minutes prior to the
broadcast. Participants may register for the call with the link
below:https://register.vevent.com/register/BI9280e7533f214261b39b741f4e3d589aPlease
visit Agora’s investor relations website at
https://investor.agora.io/investor-relations on February 27, 2023
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, financing related expenses,
amortization expenses of acquired intangible assets, income tax
related to acquired intangible assets and impairment of goodwill.
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, financing related expenses,
amortization expenses of acquired intangible assets, income tax
related to acquired intangible assets and impairment of goodwill
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, financing related expenses,
amortization expenses of acquired intangible assets, income tax
related to acquired intangible assets and impairment of
goodwill.
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, financing related expenses,
amortization expenses of acquired intangible assets and impairment
of goodwill.
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.
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 COVID-19
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, |
|
|
2022 |
|
2021 |
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
45,673 |
|
|
285,668 |
|
|
Short-term investments |
382,039 |
|
|
469,636 |
|
|
Accounts receivable, net |
32,803 |
|
|
32,619 |
|
|
Prepayments and other current assets |
7,326 |
|
|
8,801 |
|
|
Contract assets |
634 |
|
|
962 |
|
|
Held-for-sale assets |
17,004 |
|
|
- |
|
|
Total current assets |
485,479 |
|
|
797,686 |
|
|
Property and equipment, net |
12,946 |
|
|
19,194 |
|
|
Operating lease right-of-use assets |
2,344 |
|
|
7,436 |
|
|
Intangible assets |
2,727 |
|
|
6,697 |
|
|
Goodwill |
31,928 |
|
|
56,142 |
|
|
Long-term investments |
94,159 |
|
|
53,925 |
|
|
Prepayment for land use right |
168,244 |
|
|
- |
|
|
Other non-current assets |
2,888 |
|
|
3,919 |
|
|
Total assets |
800,715 |
|
|
944,999 |
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
10,103 |
|
|
5,309 |
|
|
Advances from customers |
8,352 |
|
|
9,068 |
|
|
Taxes payable |
1,867 |
|
|
2,435 |
|
|
Current operating lease liabilities |
1,932 |
|
|
3,957 |
|
|
Accrued expenses and other current liabilities |
47,008 |
|
|
53,034 |
|
|
Held-for-sale liabilities |
2,388 |
|
|
- |
|
|
Total current liabilities |
71,650 |
|
|
73,803 |
|
|
Long-term payable |
55 |
|
|
495 |
|
|
Long-term operating lease liabilities |
340 |
|
|
3,452 |
|
|
Deferred tax liabilities |
407 |
|
|
988 |
|
|
Total liabilities |
72,452 |
|
|
78,738 |
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
Class A ordinary shares |
39 |
|
|
37 |
|
|
Class B ordinary shares |
8 |
|
|
8 |
|
|
Additional paid-in-capital |
1,134,704 |
|
|
1,099,369 |
|
|
Treasury shares at cost |
(41,815 |
) |
|
- |
|
|
Accumulated other comprehensive loss |
(7,994 |
) |
|
3,149 |
|
|
Accumulated deficit |
(356,679 |
) |
|
(236,302 |
) |
|
Total shareholders’ equity |
728,263 |
|
|
866,261 |
|
|
Total liabilities and shareholders’ equity |
800,715 |
|
|
944,999 |
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Real-time engagement service revenues |
37,766 |
|
|
37,709 |
|
|
152,886 |
|
|
159,943 |
|
|
Other revenues |
2,352 |
|
|
2,677 |
|
|
7,784 |
|
|
8,039 |
|
|
Total revenues |
40,118 |
|
|
40,386 |
|
|
160,670 |
|
|
167,982 |
|
|
Cost of revenues |
15,727 |
|
|
14,959 |
|
|
61,247 |
|
|
63,975 |
|
|
Gross profit |
24,391 |
|
|
25,427 |
|
|
99,423 |
|
|
104,007 |
|
|
Operating expenses: |
|
|
|
|
|
|
Research and development |
21,255 |
|
|
28,779 |
|
|
114,502 |
|
|
110,666 |
|
|
Sales and marketing |
12,189 |
|
|
13,798 |
|
|
53,769 |
|
|
46,276 |
|
|
General and administrative |
9,232 |
|
|
9,338 |
|
|
38,671 |
|
|
30,326 |
|
|
Total operating expenses |
42,676 |
|
|
51,915 |
|
|
206,942 |
|
|
187,268 |
|
|
Other operating income |
104 |
|
|
1,728 |
|
|
3,697 |
|
|
2,568 |
|
|
Loss from operations |
(18,181 |
) |
|
(24,760 |
) |
|
(103,822 |
) |
|
(80,693 |
) |
|
Exchange gain (loss) |
(52 |
) |
|
765 |
|
|
(5,021 |
) |
|
557 |
|
|
Interest income |
3,168 |
|
|
2,073 |
|
|
9,636 |
|
|
8,353 |
|
|
Investment loss |
(7,754 |
) |
|
(692 |
) |
|
(8,813 |
) |
|
(1,659 |
) |
|
Other income |
- |
|
|
1,597 |
|
|
- |
|
|
1,597 |
|
|
Impairment of goodwill |
(11,941 |
) |
|
- |
|
|
(11,941 |
) |
|
- |
|
|
Loss before income taxes |
(34,760 |
) |
|
(21,017 |
) |
|
(119,961 |
) |
|
(71,845 |
) |
|
Income taxes |
(279 |
) |
|
(487 |
) |
|
(663 |
) |
|
(840 |
) |
|
Equity in income (loss) of affiliates |
(20 |
) |
|
329 |
|
|
244 |
|
|
329 |
|
|
Net loss |
(35,059 |
) |
|
(21,175 |
) |
|
(120,380 |
) |
|
(72,356 |
) |
|
Net loss attributable to ordinary shareholders |
(35,059 |
) |
|
(21,175 |
) |
|
(120,380 |
) |
|
(72,356 |
) |
|
Other comprehensive loss: |
|
|
|
|
|
|
Foreign currency translation adjustments |
3,670 |
|
|
425 |
|
|
(9,856 |
) |
|
1,307 |
|
|
Unrealized loss on available-for-sale debt securities |
(147 |
) |
|
(251 |
) |
|
(1,286 |
) |
|
(99 |
) |
|
Total comprehensive loss attributable to ordinary shareholders |
(31,536 |
) |
|
(21,001 |
) |
|
(131,522 |
) |
|
(71,148 |
) |
|
|
|
|
|
|
|
|
Net loss per ADS attributable to ordinary shareholders, basic and
diluted |
(0.32 |
) |
|
(0.19 |
) |
|
(1.08 |
) |
|
(0.66 |
) |
|
|
|
|
|
|
|
|
Weighted-average shares used in computing net loss per ADS
attributable to ordinary shareholders, basic and diluted |
439,348,717 |
|
|
446,443,298 |
|
|
446,367,671 |
|
|
440,864,190 |
|
|
|
|
|
|
|
|
|
Share-based compensation expenses included in: |
|
|
|
|
|
|
Cost of revenues |
146 |
|
|
423 |
|
|
906 |
|
|
879 |
|
|
Research and development expenses |
3,713 |
|
|
4,684 |
|
|
18,055 |
|
|
19,737 |
|
|
Sales and marketing expenses |
1,090 |
|
|
1,240 |
|
|
6,140 |
|
|
4,843 |
|
|
General and administrative expenses |
1,770 |
|
|
2,005 |
|
|
7,262 |
|
|
6,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agora, Inc.Condensed Consolidated
Statements of Cash Flows(Unaudited, in US$
thousands) |
|
|
|
|
|
|
|
Three Month Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net loss |
(35,059 |
) |
|
(21,175 |
) |
|
(120,380 |
) |
|
(72,356 |
) |
|
Adjustments to reconcile net loss to net cash generated from (used
in) operating activities: |
|
|
|
|
|
|
Share-based compensation expenses |
6,719 |
|
|
8,352 |
|
|
32,363 |
|
|
31,481 |
|
|
Allowance for current expected credit losses |
1,694 |
|
|
1,697 |
|
|
5,391 |
|
|
4,728 |
|
|
Depreciation of property and equipment |
2,266 |
|
|
2,303 |
|
|
9,497 |
|
|
8,281 |
|
|
Amortization of intangible assets |
590 |
|
|
578 |
|
|
2,322 |
|
|
1,933 |
|
|
Deferred tax expense |
(84 |
) |
|
437 |
|
|
(336 |
) |
|
238 |
|
|
Amortization of right-of-use asset and interest on lease
liabilities |
940 |
|
|
996 |
|
|
4,064 |
|
|
3,724 |
|
|
Change in the fair value of investments |
(531 |
) |
|
- |
|
|
330 |
|
|
1,064 |
|
|
Interest income on available-for-sale debt securities |
(101 |
) |
|
(101 |
) |
|
(401 |
) |
|
(295 |
) |
|
Equity in income (loss) of affiliates |
20 |
|
|
(263 |
) |
|
(244 |
) |
|
(329 |
) |
|
Impairment of long-term investments |
8,277 |
|
|
626 |
|
|
8,277 |
|
|
626 |
|
|
Impairment of goodwill |
11,941 |
|
|
- |
|
|
11,941 |
|
|
- |
|
|
Return on investment from equity affiliates |
- |
|
|
329 |
|
|
- |
|
|
329 |
|
|
Changes in assets and liabilities, net of effect of
acquisition: |
|
|
|
|
|
|
Accounts receivable |
(1,488 |
) |
|
2,146 |
|
|
(8,033 |
) |
|
(8,413 |
) |
|
Contract assets |
(66 |
) |
|
33 |
|
|
(564 |
) |
|
(240 |
) |
|
Prepayments and other current assets |
(509 |
) |
|
(10 |
) |
|
(515 |
) |
|
(907 |
) |
|
Other non-current assets |
34 |
|
|
171 |
|
|
3,146 |
|
|
(128 |
) |
|
Accounts payable |
1,495 |
|
|
742 |
|
|
5,526 |
|
|
(734 |
) |
|
Advances from customers |
587 |
|
|
999 |
|
|
1,371 |
|
|
878 |
|
|
Taxes payable |
1,118 |
|
|
887 |
|
|
(391 |
) |
|
155 |
|
|
Operating lease liabilities |
(877 |
) |
|
(1,023 |
) |
|
(4,212 |
) |
|
(3,995 |
) |
|
Deferred income |
257 |
|
|
(288 |
) |
|
402 |
|
|
(102 |
) |
|
Accrued expenses and other liabilities |
6,137 |
|
|
7,614 |
|
|
6,066 |
|
|
14,062 |
|
|
Net cash generated from (used in) operating activities |
3,360 |
|
|
5,050 |
|
|
(44,380 |
) |
|
(20,000 |
) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
Purchase of short-term investments |
(32,157 |
) |
|
(71,818 |
) |
|
(563,436 |
) |
|
(504,563 |
) |
|
Proceeds from sale and maturity of short-term investments |
104,056 |
|
|
150,706 |
|
|
646,687 |
|
|
558,618 |
|
|
Purchase of property and equipment |
(1,416 |
) |
|
(2,131 |
) |
|
(4,123 |
) |
|
(12,211 |
) |
|
Purchase of intangible assets |
- |
|
|
(20 |
) |
|
- |
|
|
(263 |
) |
|
Purchase of long-term investments |
(39,056 |
) |
|
(1,732 |
) |
|
(58,818 |
) |
|
(48,843 |
) |
|
Prepayment for long-term investments |
- |
|
|
- |
|
|
(1,949 |
) |
|
- |
|
|
Withdrawal of long-term investments |
- |
|
|
- |
|
|
2,113 |
|
|
- |
|
|
Deposit for land use right purchase |
- |
|
|
- |
|
|
(34,159 |
) |
|
- |
|
|
Withdrawal of deposit for land use right purchase |
- |
|
|
- |
|
|
34,159 |
|
|
- |
|
|
Prepayment for land use right purchase |
- |
|
|
- |
|
|
(171,592 |
) |
|
- |
|
|
Cash paid for acquisition, net of cash received |
- |
|
|
(13,936 |
) |
|
- |
|
|
(50,566 |
) |
|
Return of investment from equity affiliates |
56 |
|
|
138 |
|
|
56 |
|
|
138 |
|
|
Net cash generated from (used in) investing activities |
31,483 |
|
|
61,207 |
|
|
(151,062 |
) |
|
(57,690 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from the private placement, net of issuance costs
paid |
- |
|
|
- |
|
|
- |
|
|
249,950 |
|
|
Proceeds from exercise of employees’ share options |
126 |
|
|
208 |
|
|
1,096 |
|
|
2,042 |
|
|
Payment of financing cost |
(738 |
) |
|
(55 |
) |
|
(2,111 |
) |
|
(55 |
) |
|
Repurchase of Class A ordinary shares |
(18,296 |
) |
|
- |
|
|
(41,135 |
) |
|
- |
|
|
Net cash provided by (used in) financing activities |
(18,908 |
) |
|
153 |
|
|
(42,150 |
) |
|
251,937 |
|
|
Effect of foreign exchange rate changes on cash, cash equivalents
and restricted cash |
408 |
|
|
9 |
|
|
(918 |
) |
|
279 |
|
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
16,343 |
|
|
66,419 |
|
|
(238,510 |
) |
|
174,526 |
|
|
Cash balance recorded in held-for-sale assets |
(1,488 |
) |
|
- |
|
|
(1,488 |
) |
|
- |
|
|
Cash, cash equivalents and restricted cash at beginning of period
* |
30,972 |
|
|
219,405 |
|
|
285,825 |
|
|
111,298 |
|
|
Cash, cash equivalents and restricted cash at end of period ** |
45,827 |
|
|
285,824 |
|
|
45,827 |
|
|
285,824 |
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
Income taxes paid |
- |
|
|
- |
|
|
55 |
|
|
966 |
|
|
Cash payments included in the measurement of operating lease
liabilities |
877 |
|
|
1,023 |
|
|
4,212 |
|
|
3,995 |
|
|
Right-of-use assets obtained in exchange for operating lease
obligations |
- |
|
|
664 |
|
|
198 |
|
|
4,300 |
|
|
Non-cash financing and investing activities: |
|
|
|
|
|
|
Deposits utilized for employees’ share option exercises |
6 |
|
|
- |
|
|
13 |
|
|
- |
|
|
Payables for property and equipment |
227 |
|
|
373 |
|
|
227 |
|
|
373 |
|
|
Payables for acquisition |
- |
|
|
- |
|
|
- |
|
|
4,603 |
|
|
Proceeds receivable from exercise of employees’ share options |
90 |
|
|
329 |
|
|
90 |
|
|
329 |
|
|
Payables for financing cost |
- |
|
|
2,234 |
|
|
- |
|
|
2,234 |
|
|
Payables for long-term investments |
- |
|
|
- |
|
|
- |
|
|
5,490 |
|
|
Payables for treasury shares at cost |
680 |
|
|
- |
|
|
680 |
|
|
- |
|
|
|
|
|
|
|
|
|
* includes restricted cash balance |
154 |
|
|
156 |
|
|
156 |
|
|
80 |
|
|
** includes restricted cash balance |
154 |
|
|
156 |
|
|
154 |
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
GAAP net loss |
(35,059 |
) |
|
(21,175 |
) |
|
(120,380 |
) |
|
(72,356 |
) |
|
Add: |
|
|
|
|
|
|
Share-based compensation expenses |
6,719 |
|
|
8,352 |
|
|
32,363 |
|
|
31,481 |
|
|
Acquisition related expenses |
179 |
|
|
425 |
|
|
928 |
|
|
5,780 |
|
|
Financing related expenses |
- |
|
|
- |
|
|
2,166 |
|
|
- |
|
|
Amortization expenses of acquired intangible assets |
556 |
|
|
556 |
|
|
2,224 |
|
|
1,861 |
|
|
Income tax related to acquired intangible assets |
(84 |
) |
|
(84 |
) |
|
(336 |
) |
|
(283 |
) |
|
Impairment of goodwill |
11,941 |
|
|
- |
|
|
11,941 |
|
|
- |
|
|
Non-GAAP net loss |
(15,748 |
) |
|
(11,926 |
) |
|
(71,094 |
) |
|
(33,517 |
) |
|
|
|
|
|
|
|
|
Net loss |
(35,059 |
) |
|
(21,175 |
) |
|
(120,380 |
) |
|
(72,356 |
) |
|
Excluding: |
|
|
|
|
|
|
Exchange gain (loss) |
(52 |
) |
|
765 |
|
|
(5,021 |
) |
|
557 |
|
|
Interest income |
3,168 |
|
|
2,073 |
|
|
9,636 |
|
|
8,353 |
|
|
Investment loss |
(7,754 |
) |
|
(692 |
) |
|
(8,813 |
) |
|
(1,659 |
) |
|
Other income |
- |
|
|
1,597 |
|
|
- |
|
|
1,597 |
|
|
Equity in income (loss) of affiliates |
(20 |
) |
|
329 |
|
|
244 |
|
|
329 |
|
|
Income taxes |
(279 |
) |
|
(487 |
) |
|
(663 |
) |
|
(840 |
) |
|
Depreciation of property and equipment |
2,266 |
|
|
2,303 |
|
|
9,497 |
|
|
8,281 |
|
|
Share-based compensation expenses |
6,719 |
|
|
8,352 |
|
|
32,363 |
|
|
31,481 |
|
|
Acquisition related expenses |
179 |
|
|
425 |
|
|
928 |
|
|
5,780 |
|
|
Financing related expenses |
- |
|
|
- |
|
|
2,166 |
|
|
- |
|
|
Amortization expenses of acquired intangible assets |
556 |
|
|
556 |
|
|
2,224 |
|
|
1,861 |
|
|
Impairment of goodwill |
11,941 |
|
|
- |
|
|
11,941 |
|
|
- |
|
|
Adjusted EBITDA |
(8,461 |
) |
|
(13,124 |
) |
|
(56,644 |
) |
|
(33,290 |
) |
|
|
|
|
|
|
|
|
Net cash generated from (used in) operating activities |
3,360 |
|
|
5,050 |
|
|
(44,380 |
) |
|
(20,000 |
) |
|
Purchase of property and equipment |
(1,416 |
) |
|
(2,131 |
) |
|
(4,123 |
) |
|
(12,211 |
) |
|
Free Cash Flow |
1,944 |
|
|
2,919 |
|
|
(48,503 |
) |
|
(32,211 |
) |
|
Net cash generated from (used in) investing activities |
31,483 |
|
|
61,207 |
|
|
(151,062 |
) |
|
(57,690 |
) |
|
Net cash provided by (used in) financing activities |
(18,908 |
) |
|
153 |
|
|
(42,150 |
) |
|
251,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________1 One ADS represents
four Class A ordinary shares.
Investor Contact:
Fionna Chen
investor@agora.io
Media Contact:
Timothy Gray
press@agora.io
Agora (NASDAQ:API)
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From Apr 2024 to May 2024
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From May 2023 to May 2024
