20-F: Agora, Inc. Files 20-F Report for Fiscal Year Ended December 31, 2024

Agora, Inc. has filed its annual report on Form 20-F, detailing its financial results and operational activities for the fiscal year ending December 31, 2024.

Summary

• Agora, Inc., a Cayman Islands holding company, has filed its Form 20-F for the fiscal year ended December 31, 2024.
• The company operates two independent divisions: Agora, a global Real-Time Engagement Platform-as-a-Service (RTE-PaaS) provider, and Shengwang, a leading RTE-PaaS provider in China.
• In January 2025, Agora terminated its contractual arrangements with its VIE, Shanghai Zhaoyan Network Technology Co., Ltd., and now conducts its business in China through its PRC subsidiaries.
• The company's total revenue decreased by 5.9% to US$133.3 million in 2024, with a net loss of US$42.7 million.
• Agora powered over 800 billion minutes of real-time engagement for end users through applications in 2024.
• The active customers of Agora were 1,723 and Shengwang were 1,979 as of December 31, 2024.
• The Dollar-Based Net Retention Rate for Agora was 95% and for Shengwang was 79% for 2024.
• The company's research and development expenses were US$80.3 million in 2024.
• As of December 31, 2024, the company had US$27.1 million in cash and cash equivalents.
• The company has a share repurchase program authorized to repurchase up to US$200 million of its Class A ordinary shares, with US$83.6 million remaining as of March 31, 2025.

Sentiment

Score: 5

Explanation: The document presents a mixed picture, with decreased revenue and a net loss offset by continued investment in R&D and a share repurchase program. The sentiment is neutral.

Positives

• Agora maintained a strong Dollar-Based Net Retention Rate of 95% for its Agora business.
• The company continues to invest in research and development to enhance its platform.
• Agora has a significant amount of cash and short-term investments on hand.
• The company has a share repurchase program in place, indicating confidence in its future value.
• The company has terminated its VIE structure, reducing regulatory uncertainty.

Negatives

• Total revenue decreased by 5.9% in 2024.
• The company reported a net loss of US$42.7 million for 2024.
• Shengwang's Dollar-Based Net Retention Rate decreased to 79% in 2024.
• The company has a history of operating and net losses.

Risks

• The RTE-PaaS market is emerging and evolving, which may develop more slowly or differently than expected.
• The company faces competition in the RTE-PaaS market.
• The company's business is subject to a variety of laws and regulations in the jurisdictions where it operates, including those regarding privacy, cybersecurity and data protection.
• Changes in the political and economic policies of the PRC government could adversely affect the company's business and operations.
• The company may be required to obtain and maintain permits and licenses to operate its business in China.
• The company's ADSs will be prohibited from trading in the United States under the HFCAA if the PCAOB is unable to inspect or fully investigate auditors located in China for two consecutive years.
• The trading price of the company's ADSs has been and is likely continue to be volatile.

Future Outlook

The company intends to continue to invest in research and development, sales and marketing, and international expansion to drive future growth.

Industry Context

The document provides insights into the competitive landscape of the RTE-PaaS market, highlighting key players and factors influencing market dynamics.

Comparison to Industry Standards

• The document does not provide a direct comparison to industry standards.
• However, it mentions competitors including pure-play RTE-PaaS companies, cloud communication platforms, and public cloud providers.
• The document lists principal competitive factors such as data transmission quality, brand credibility, global reach, ease of integration, product features, scalability, security, and cost.

Legal Proceedings

• Agora Lab, Inc. is involved in an adversary proceeding in the United States Bankruptcy Court for the District of Connecticut, with the trustee seeking to claw back certain transfers of $3.6 million.

Related Party Transactions

• The company leases office space from an entity under common control of its CEO, with rental payments of US$196 thousand in 2024.

Stakeholder Impact

• Shareholders may be concerned about the decrease in revenue and the net loss.
• Employees may be affected by the company's cost-cutting measures, including workforce optimization.
• Customers may benefit from the company's continued investment in R&D and product enhancements.

Next Steps

• The company will continue to assess the need to obtain and renew permits and licenses to operate its business.
• The company will closely consult the supervisory authority having jurisdiction over it.
• The company will follow the supervisory authority's guidance in a timely manner to ensure it runs its business legally.

Key Dates

Keywords

Real-Time Engagement, RTE-PaaS, Agora, Shengwang, Financial Results, 20-F, Annual Report, Share Repurchase, VIE, China