API Latest Report

Financial Performance

Agora (API) recorded an operating revenue of RMB344.53 million as of December 31, 2024, a decrease of RMB1.58 million, or approximately 4.38%, from RMB360.41 million as of December 31, 2023. This change indicates that the company faces certain challenges in terms of operating revenue, which may affect its overall profitability.

Key Financial Data

1. Agora's operating revenue decreased by 4.38% year-on-year, indicating pressure on revenue growth.

2. Intensified market competition, especially the rapid development of generative AI, has created a challenging market environment for Agora.

3. The improvement of the overall domestic macroeconomic environment and the strengthening of the live streaming industry regulation have affected customer usage and activity.

4. Agora continues to invest in R&D, but it has not effectively translated into revenue growth in the short term, leading to a decline in revenue.

Peer Comparison

1. Industry-wide analysis: The real-time communication industry has experienced rapid development in recent years, but due to market maturity and intensified competition, the overall revenue growth rate may slow down. Many peers also faced revenue challenges in 2024, with the overall market growth falling short of expectations.

2. Peer evaluation analysis: Agora's operating revenue in the industry performed relatively weakly, especially compared to some rapidly growing competitors that achieved revenue growth year-on-year during the same period, demonstrating stronger market adaptability and customer appeal, reflecting the need for Agora to further optimize its market strategy or product innovation.

Summary

Agora's financial performance in 2024 shows certain challenges, mainly due to intensified market competition, changes in the macroeconomic environment, and fluctuations in product demand. Although the company has invested in R&D and innovation, it has not effectively translated into revenue growth in the short term, requiring attention to future market changes and adjustments in company strategies.

Opportunities

1. Agora's cooperation with MiniMax, a unicorn in real-time interaction technology, has enhanced its competitiveness.

2. The release of new products such as Conversational AI SDK and Dynamic Meeting may attract new customers and boost revenue.

3. The potential of overseas markets has emerged, although the domestic market performance is poor, but overseas revenue has grown, which can be further expanded in the future.

Risks

1. Intensified competition, especially from rapidly developing competitors in the generative AI field, may further squeeze Agora's market share.

2. Uncertainty in the domestic macroeconomic environment may lead to continued fluctuations in customer demand, affecting financial performance.

3. A decrease in active customer numbers may lead to further revenue decline, requiring attention to customer retention and acquisition strategies.