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Agora, Inc. (API)
NASDAQ:API
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Agora
(NASDAQ:API)
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Rating:52Neutral
Price Target:
$3.50
▼(-6.67% Downside)
Agora's overall stock score reflects significant financial challenges, including persistent net losses and negative cash flows. While the earnings call provided some positive insights into revenue growth and profitability improvements, technical analysis and valuation metrics indicate ongoing concerns. The company's strong equity position and advancements in AI are positive, but operational and cash management improvements are needed.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
AI Integration
Integration with OpenAI's API enhances Agora's product offerings, potentially attracting more customers and boosting competitive advantage.
Profitability Achievements
Achieving profitability demonstrates improved financial management and operational efficiency, crucial for long-term success.
Negative Factors
Negative Cash Flow
Negative cash flow indicates challenges in sustaining operations without external financing, potentially impacting future growth.
Executive Resignation
Loss of key personnel can disrupt strategic initiatives and slow innovation, affecting long-term competitive positioning.
Gross Margin Fluctuation
Fluctuating gross margins may indicate cost management issues, affecting profitability and financial predictability.
Agora (API) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$350.67M
Dividend YieldN/A
Average Volume (3M)558.83K
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth-3.34%
EPS Growth48.15%
CountryUS
Employees608
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.01
Shares Outstanding74,465,760
10 Day Avg. Volume419,989
30 Day Avg. Volume558,826
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.17
Price to Sales (P/S)0.73
P/FCF Ratio-1.96
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit3.32
Enterprise Value/Ebitda-32.99
Forecast
1Y Price Target
$7.40Price Target Upside97.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Agora Business Overview & Revenue Model
Company DescriptionAgora, Inc. provides Real-Time Engagement Platform-as-a-Service (RTE-PaaS) in the People's Republic of China, the United States, and internationally. The company RTE-PaaS offers developers with software tools to embed real-time video, voice, and messaging functionalities into applications. Its products include video calling, voice calling, interactive live streaming, chat, signaling. Acceleration products; and extensions, which comprise interactive whiteboard, recording, analytics, and extensions marketplace products to enable developers to launch RTE in specific use cases and verticals. The company also provides Flexible Classroom that offers a low-code application Platform as a Service; and App Builder, no-code application platform. Its real-time engagement products are delivered through its Software-Defined Real-Time Network, which is a virtual network overlay on top of the public internet. The company serves social, entertainment, gaming, education, enterprise solutions, e-commerce, financial services, healthcare, and IoT industries. Agora, Inc. was incorporated in 2013 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyAgora generates revenue primarily through a usage-based pricing model. Developers and businesses are charged based on the volume of voice and video minutes used within their applications. This model allows for scalable pricing, aligning costs with the level of engagement achieved by their customers' end-users. Additionally, Agora may benefit from strategic partnerships with technology firms and platform providers that expand its market reach and integration possibilities. Other factors contributing to its earnings include the continuous innovation and enhancement of its API offerings, which attract a diverse clientele seeking reliable and high-performance real-time engagement solutions.
Agora Earnings Call Summary
Earnings Call Date:Aug 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
Agora Inc. reported a strong quarter with significant growth in revenue and profitability, successful AI deployments, and continued share repurchases. However, there were concerns about sequential revenue decline in Agora, gross margin fluctuations, and the resignation of a key executive.Q2-2025 Updates
Positive Updates
Third Consecutive Quarter of GAAP Profitability
Agora Inc. reported a GAAP net profit of $1.5 million in Q2, more than triple the previous quarter with a GAAP net margin of 4.3%.
Revenue Growth
Total revenue in Q2 reached $34.3 million, up 11% year-over-year, marking the second consecutive quarter of double-digit organic growth.
Expansion in Active Customers
Agora had close to 1,900 active customers, and Shengwang had approximately 2,000, representing an increase of 12% and 1% respectively compared to a year ago.
Introduction of New AI Features
Agora introduced three new AI features: advanced attention locking, real-time vision-based intelligence, and natural interactive avatars, which were well received at the World AI Conference.
Successful AI Deployments
AI applications were successfully deployed in real-world scenarios, including a major food delivery platform in South America and the AI companion toy Fuzozo.
Continued Share Repurchase Program
Agora repurchased $10.9 million worth of shares in Q2, with a total of $127.2 million worth of shares repurchased since the program's approval in February 2025.
Negative Updates
Sequential Revenue Decline in Agora
Agora revenues reached $18.2 million in Q2, representing a 16.7% year-over-year growth but a 2.2% quarter-over-quarter decline.
Gross Margin Fluctuation
Gross margin for the second quarter was 66.8%, with a slight decrease of 1.2% year-over-year and sequentially due to normal fluctuations.
Negative Operating Cash Flow
Operating cash flow was negative $0.4 million in Q2, compared to negative $7.6 million last year.
Resignation of Key Personnel
Sheng Zhong resigned from his position as Director, Chief Technology Officer, and Chief Scientist due to personal reasons.
Company Guidance
During the call, Agora Inc. provided guidance for the third quarter of 2025, projecting total revenues to be between $34 million and $36 million, which represents a year-over-year growth rate of 7.6% to 13.9%. The company reported strong financial performance in the second quarter of 2025, with total revenues reaching $34.3 million, marking an 11% year-over-year increase. Agora achieved a GAAP net profit of $1.5 million, translating to a net margin of 4.3%, a significant improvement from the 23% net loss margin in the same quarter the previous year. The company also highlighted a gross margin of 66.8% for Q2 and shared insights into its AI-related business, emphasizing advancements in their conversational AI engine and its potential revenue contribution. Agora anticipates maintaining stable expenses, thereby expecting an improvement in net margins in upcoming quarters, with a long-term goal of achieving an operating margin between 15% and 20%.Agora Financial Statement Overview
Summary
Agora faces significant financial challenges with persistent net losses and negative cash flows. Despite a strong equity position and low leverage, profitability and cash generation remain critical areas for improvement. Modest revenue growth and improved gross profit margin are positive, but operational efficiencies and cash management need enhancement.Income Statement
Agora's income statement reveals a challenging financial position with consistent net losses over the years. The TTM data shows a slight improvement in gross profit margin to 67%, indicating some efficiency in cost management. However, the net profit margin remains negative at -16.6%, reflecting ongoing profitability issues. Revenue growth is modest at 3.7% TTM, but historical data shows volatility with periods of decline. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.45
Neutral
Balance Sheet
Agora's balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.11 TTM, indicating low financial leverage and reduced risk from debt obligations. However, the return on equity is negative at -3.87%, highlighting challenges in generating returns for shareholders. The equity ratio is robust, suggesting a solid capital structure, but the company needs to improve profitability to enhance shareholder value.60
Neutral
Cash Flow
The cash flow statement indicates significant challenges with negative free cash flow and a declining free cash flow growth rate of -25.5% TTM. The operating cash flow to net income ratio is positive at 0.34, suggesting some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is negative, reflecting cash flow difficulties and the need for improved cash management.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 133.55M | 133.26M | 141.54M | 160.67M | 167.98M | 133.56M |
| Gross Profit | 89.50M | 85.45M | 89.47M | 99.42M | 104.01M | 86.36M |
| EBITDA | -9.02M | -31.19M | -78.27M | -104.08M | -61.63M | -731.00K |
| Net Income | -22.15M | -42.73M | -87.22M | -120.62M | -72.69M | -3.11M |
Balance Sheet | ||||||
| Total Assets | 697.61M | 699.65M | 674.60M | 800.72M | 945.00M | 692.90M |
| Cash, Cash Equivalents and Short-Term Investments | 139.83M | 269.66M | 216.65M | 427.71M | 755.30M | 635.44M |
| Total Debt | 63.56M | 50.14M | 15.20M | 2.27M | 7.41M | 0.00 |
| Total Liabilities | 132.24M | 126.99M | 69.85M | 72.45M | 78.74M | 36.44M |
| Stockholders Equity | 565.38M | 572.66M | 604.75M | 728.26M | 866.26M | 656.46M |
Cash Flow | ||||||
| Free Cash Flow | -23.34M | -49.38M | -30.46M | -254.25M | -32.47M | -6.31M |
| Operating Cash Flow | 17.14M | -14.13M | -13.61M | -44.38M | -20.00M | 6.56M |
| Investing Cash Flow | -37.16M | -38.05M | 56.64M | -151.06M | -57.69M | -535.05M |
| Financing Cash Flow | 23.55M | 45.99M | -52.37M | -42.15M | 251.94M | 533.64M |
Agora Technical Analysis
Neutral
3.75
Price Trends
3.74
Positive
3.73
Positive
4.19
Negative
Market Momentum
0.05
Negative
50.05
Neutral
46.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For API, the sentiment is Neutral. The current price of 3.75 is above the 20-day moving average (MA) of 3.70, above the 50-day MA of 3.74, and below the 200-day MA of 4.19, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for API.
Agora Risk Analysis
Agora disclosed 86 risk factors in its most recent earnings report. Agora reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agora Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $231.31M | 2.74 | 28.27% | 5.32% | 3828.94% | 129.01% | |
61 Neutral | $153.11M | -14.96 | -12.68% | ― | 1.47% | -430.99% | |
53 Neutral | $273.57M | 1.56 | -2.66% | 10.17% | -17.17% | 497.89% | |
52 Neutral | $350.67M | ― | -3.84% | ― | -3.34% | 48.15% | |
52 Neutral | $306.83M | -13.81 | -16.57% | ― | -0.73% | 67.98% | |
49 Neutral | $585.23M | -6.96 | -53.22% | ― | -2.45% | 82.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
API
Agora
3.75
1.34
55.60%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.