AGORA Announces Fourth Quarter of FY2022 Earnings Results on February 28 2023.

Earnings Overview

On February 28 2023, AGORA ($NASDAQ:API) reported their financial results for Q4 of FY2022, which ended on December 31 2022. Overall revenue for the quarter was USD -35.1 million, a decrease of 65.5% year-over-year. Net income was USD 40.1 million, a minor dip of 0.7% compared to the preceding year.

Transcripts Simplified

Agora reported total revenues of $40.1 million for the 4th quarter of 2022, a decrease of 0.7% year-over-year and 2.1% quarter-over-quarter due to regulatory changes and decreased customer engagement cloud business. Total revenues for the fiscal year of 2022 were $160.7 million, a 4.4% decrease from 2021. Non-GAAP gross margin for the fourth quarter was 61.2%, while non-GAAP R&D expenses were $17.2 million, 42.8% of total revenues; non-GAAP sales and marketing expenses were $10.8 million, representing 26.8% of total revenues; and non-GAAP G&A expenses were $7.5 million. The company also reported a trailing 12-month constant currency dollar-based net expansion rate of 81%, excluding Easemob.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Agora. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Agora. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Agora. More…

Key Ratios Snapshot

Some of the financial key ratios for Agora are shown below. More…

Share Price

On Tuesday, February 28 2023, AGORA announced the fourth quarter of Fiscal Year 2022 Earnings Results. The stock opened at $3.8 and closed at $3.1, a plunge of 20.3% from its last closing price of $3.8. This was a drastic decrease in stock value compared to the earlier quarters of this fiscal year. The results showed that despite AGORA’s efforts to increase profitability and reduce costs, the company was not able to deliver a positive quarter. This caused a massive selloff in the stock, resulting in its plummeting by over 20%.

The drop in share price was felt by investors who had their investments tied up in AGORA’s stock. This news has been met with both disappointment and concern among investors. Many believe that there is still potential for AGORA to turn its fortunes around, however, many are also wary of investing in such a volatile stock. It remains to be seen how the company will respond to this news and whether it will be able to recover from this loss in the coming quarters. Live Quote…

Analysis

At GoodWhale, we have performed an in-depth analysis of AGORA’s financials and have assigned it a Risk Rating of “Medium”. This indicates that there are some aspects of AGORA’s financial and business operations that require further consideration before investing. In particular, we have identified one risk warning in the cashflow statement. If you would like to learn more about this risk and what it could mean for potential investors, please visit our website at goodwhale.com. We will provide you with detailed information and insight into AGORA’s finances so you can make an informed decision. More…

Peers

As the world of e-commerce continues to grow, so does the competition between companies trying to establish themselves as the top dog. Agora Inc, a company specializing in online marketplaces, is up against some stiff competition from the likes of Vobile Group Ltd, China Youzan Ltd, and Sonic Foundry Inc. Each company has its own unique strengths and weaknesses, but it’s clear that they’re all vying for the same thing: a spot at the top of the e-commerce world.

– Vobile Group Ltd ($SEHK:03738)

Vobile Group Ltd is a provider of video intelligence solutions. The company operates in two segments: Video Solutions and Video Advertising. The Video Solutions segment offers a suite of video management tools that help content owners and distributors to identify, track, and protect their videos from unauthorised uses. The Video Advertising segment provides a platform that helps advertisers to reach their target audiences through video advertising. Vobile Group Ltd has a market cap of 3.94B as of 2022, a Return on Equity of 1.23%. The company offers its video intelligence solutions to content owners and distributors, advertisers, and agencies worldwide.

– China Youzan Ltd ($SEHK:08083)

Youzan Inc is a Chinese internet company that provides e-commerce and social media services. It has a market cap of 1.71B as of 2022 and a Return on Equity of -149.53%. The company operates in three segments: E-commerce, Social Media, and Other Services. Youzan E-commerce includes a marketplace that connects buyers and sellers, as well as a logistics platform that provides cross-border shipping and fulfillment services. Youzan Social Media is a social networking platform that allows users to connect with friends and share content. Other Services includes a payment platform that allows users to make online payments, as well as a marketing platform that provides data-driven marketing solutions.

– Sonic Foundry Inc ($NASDAQ:SOFO)

Sonic Foundry, Inc. engages in the business of transforming people’s ideas into knowledge. It provides enterprise software solutions for the management and delivery of audio, video, and rich media content. The company operates its business through the following segments: Enterprise, Online Learning, and Events.

The Enterprise segment offers software solutions that enable organizations to capture, manage, and distribute audio and video content. The Online Learning segment provides solutions that enable educational institutions and businesses to create, manage, and distribute online video content. The Events segment offers solutions that enable event organizers to capture, manage, and distribute audio and video content.

Sonic Foundry has a market cap of 11.97M as of 2022 and a Return on Equity of -67.07%. The company’s market cap is on the lower end, however, its ROE is negative, indicating that the company is not generating enough profit to cover its debts. Sonic Foundry’s main source of revenue is from its Enterprise segment, which offers software solutions for the capture, management, and distribution of audio and video content.

Summary

AGORA released their FY2022 fourth quarter earnings results on February 28 2023, reporting total revenue of USD -35.1 million and a net income of USD 40.1 million. This marks a 65.5% decrease on revenue year-on-year and a 0.7% decrease on net income year-on-year. As expected, the stock price declined on the same day as the results were revealed.

Investors should watch closely to see how AGORA manages its financial situation, as the company’s outlook appears to be uncertain at this point. Due diligence is essential before investing, and careful consideration of AGORA’s financial future should be made before any decisions are made.