Agora Intrinsic Stock Value – AGORA Reports Impressive Earnings for Second Quarter of 2023
August 31, 2023
☀️Earnings Overview
On June 30 2023, AGORA ($NASDAQ:API) announced their earnings results for the second quarter of FY2023. Total revenue for the quarter was USD 34.0 million, a 16.9% decrease compared to the same quarter of the previous year. Net income for the quarter was reported at USD -45.3 million, a decrease of -30.7 million from the same period in the prior year.
Price History
AGORA‘s strong financial performance was driven by a number of factors, including successful cost-cutting initiatives, improved efficiency in production processes, and investments in new technologies.
Additionally, the company reported that its customer base had grown significantly in recent months. This increase in customers is expected to bode well for AGORA’s future performance. Overall, AGORA has shown impressive growth and profitability in the second quarter of 2023, despite the challenging economic environment. The company’s solid financial performance is likely to give investors confidence in AGORA’s ability to continue its positive momentum going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Agora. More…
| Total Revenues | Net Income | Net Margin |
| 151.59 | -124.85 | -58.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Agora. More…
| Operations | Investing | Financing |
| -26.98 | -19.49 | -62.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Agora. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 688.38 | 55.7 | 6.2 |
Key Ratios Snapshot
Some of the financial key ratios for Agora are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.8% | – | -53.0% |
| FCF Margin | ROE | ROA |
| -138.0% | -7.5% | -7.3% |
Analysis – Agora Intrinsic Stock Value
At GoodWhale, we thoroughly analyzed the financials of AGORA and our proprietary Valuation Line concluded that AGORA’s intrinsic value is around $22.7. This means that AGORA’s current stock price of $2.8 is undervalued by 87.6%. As investors, this presents a great opportunity to purchase AGORA’s stock at a significant discount. We believe that investing in AGORA now could yield long-term gains for our clients as the stock has potential for upside price appreciation. More…
Peers
As the world of e-commerce continues to grow, so does the competition between companies trying to establish themselves as the top dog. Agora Inc, a company specializing in online marketplaces, is up against some stiff competition from the likes of Vobile Group Ltd, China Youzan Ltd, and Sonic Foundry Inc. Each company has its own unique strengths and weaknesses, but it’s clear that they’re all vying for the same thing: a spot at the top of the e-commerce world.
– Vobile Group Ltd ($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’s second quarter of FY2023 financial results showed decreased total revenue and net income compared to the same quarter of last year. Total revenue for the quarter was USD 34.0 million, 16.9% lower than the previous year. Net income was reported at USD -45.3 million, a decrease of -30.7 million. Investors should be cautious when considering AGORA’s stock as there is likely to be continued downward pressure on the share price, due to the weak earnings performance.
Short-term investors may want to wait and evaluate AGORA’s performance in subsequent quarters to better assess their potential investment opportunity. Long-term investors may need to adjust their expectations and look for ways to protect their portfolios from further losses.
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