Why did API's Q4 earnings fall short of forecasts?

Agora's Q4 earnings fell short of forecasts due to several factors:

1. Revenue Decline: Total revenues for the quarter were $34.5 million, which represented a 4.4% decrease from the previous year's fourth quarter. This decline was primarily due to the end-of-sale of certain products and challenges in the entertainment sector, despite revenue growth in live shopping and other sectors.
2. Segment Performance: While Agora's segment saw a revenue increase of 13.7% to $17.4 million, driven by growth in sectors like live shopping, Shengwang's revenue decreased by 17.6%. This mixed performance across segments likely contributed to the overall revenue falling short of forecasts.
3. Market Conditions: The company faced challenges in the entertainment sector, which negatively impacted revenue. Additionally, the slowing demand from social and entertainment verticals led to a 5.4% year-over-year decrease in Show on revenues.
4. Geographical Factors: Agora's revenue fell due to economic weakness in its home China market and developing markets among its international clients. This reflects broader challenges in its core markets that may have impacted revenue growth.

In summary, Agora's Q4 earnings fell short of forecasts due to a combination of revenue declines in certain segments, challenging market conditions, and geographical factors.