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What were the key takeaways from Agora's earnings call?

- **Revenue Growth**: Q3 2025 revenue $35.4M (+12% YoY), with Q4 guidance of $37-38M (7.2-10.1% YoY growth).
- **AI Innovation**: Conversational AI Engine 2.0 and zero-code Studio drive 150% QoQ usage growth, targeting H1 2026 revenue contribution.
- **Profitability**: Q3 net income $2.7M (7.8% margin), Q4 GAAP operating breakeven, FY26 targeting GAAP net profit expansion.
- **Market Momentum**: US/international live commerce growth outpaces China, IoT and smart toys adoption accelerating.

**【CEO Summary Section】**
- Q3 2025 revenue reached $35.4 million, up 12% year-over-year, with 4 consecutive quarters of GAAP profitability.
- Launched Conversational AI Engine 2.0, featuring AI-powered noise suppression, acoustic echo cancellation, and zero-code AI Studio for voice agent development.
- Expanded real-time infrastructure across North America, Europe, and Asia, supporting high-concurrency use cases like call centers, education, and smart toys.
- Conversational AI revenue expected to contribute meaningfully in H1 2026, with early adoption from outbound marketing, customer service, and IoT devices.

**【CFO Financial Commentary】**
- Agora division revenue grew 15.9% YoY to $18.2 million, Shengwang up 8.4% YoY to RMB 122.4 million.
- Gross margin 66%, with R&D expenses down 52.8% YoY to $13.8 million.
- Q3 net income $2.7 million (7.8% margin), with Q4 guidance of $37-38 million revenue (7.2-10.1% YoY growth).
- Repurchased $4.8 million in shares, maintaining $374.3 million cash balance.

**【Q&A Key Highlights】**
- **Demand Trends**: US/international live commerce growth outpaces China, IoT and digital transformation driving China demand.
- **AI Adoption**: Sequential conversational AI usage growth >150%, with Robopoet's AI toys generating recurring subscriptions.
- **Profitability Outlook**: Q4 2025 GAAP operating breakeven, FY26 targeting GAAP net profit expansion.
- **Infrastructure Expansion**: Real-time inference services for low-latency AI applications in call centers and IoT.

Agora, Inc. (API) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

API

API fundamentals

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