Agora Inc. (API) Misses Q3 EPS by 2c, Revenues Beat; Offers FY20 Revenues Outlook

Agora Inc. (NASDAQ: API) reported Q3 EPS of ($0.03), $0.02 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $30.8 million versus the consensus estimate of $28.62 million.

Third Quarter 2020 Highlights

• Total revenues for the quarter were $30.8 million, an increase of 80.8% from $17.1 million in the third quarter of 2019.
• Active Customers as of September 30, 2020 were 1,815, an increase of 95.4% from 929 as of September 30, 2019.
• Constant Currency Dollar-Based Net Expansion Rate was 187.9% for the trailing 12-month period ended September 30, 2020.
• Net loss for the quarter was $2.9 million, compared to net loss of $1.1 million in the third quarter of 2019. After excluding share-based compensation expense, non-GAAP net loss for the quarter was $0.4 million, compared to the non-GAAP net loss of $0.3 million in the third quarter of 2019. Adjusted EBITDA for the quarter was negative $0.1 million, compared to $0.2 million in the third quarter of 2019.
• Total cash, cash equivalents and short-term investments as of September 30, 2020 was $635.4 million.
• Net cash used in operating activities for the quarter was $1.9 million, compared to $0.1 million in the third quarter of 2019. Free cash flow for the quarter was negative $5.1 million, compared to negative $1.3 million in the third quarter of 2019.

“Agora is empowering software developers around the world to bring contextual video engagement to more and more online activities, such as taking a class or exam, attending a virtual event, meeting new friends and competing in a game. Such innovations are far beyond traditional video conferencing and still have a long way to go,” said Tony Zhao, founder, chairman and CEO of Agora. “Our performance in this quarter demonstrates the steady adoption of contextual video engagement across industries and we will continue to invest in the depth and breadth of our platform to better serve developers.”

GUIDANCE:

Agora Inc. sees FY2020 revenue of $125-130 million, versus the consensus of $127.47 million.

Based on currently available information, Agora expects that the estimated total revenues for the full fiscal year ending December 31, 2020 remain to be between $125 million and $130 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, and the outlook ranges for full year 2020 reflect a number of assumptions that are subject to change based on uncertainties related to the impact of the COVID-19 pandemic.

For earnings history and earnings-related data on Agora Inc. (API) click here.

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