• Agora, Inc. Reports Fourth Quarter and Fiscal Year 2023 Financial Results

    Источник: Nasdaq GlobeNewswire / 26 фев 2024 17:00:00   America/New_York

    SANTA CLARA, Calif., Feb. 26, 2024 (GLOBE NEWSWIRE) -- Agora, Inc. (NASDAQ: API) (the “Company”), a pioneer and leader in real-time engagement technology, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2023.

    “We ended 2023 with strong financial results in the fourth quarter, as we delivered sequential quarterly revenue growth and a non-GAAP net income of $1.4 million, achieving quarterly profitability on the non-GAAP basis for the first time in more than three years. This demonstrates the resilience of our business amid a very challenging operating environment, as well as our continued discipline and efforts in optimizing our cost structure,” said Tony Zhao, founder, chairman and CEO of Agora, Inc. “During the past two years, we returned approximately $104.3 million to shareholders through share repurchases, reducing our share count by more than 18%. We are pleased to announce that our board has authorized another 12-month extension of our $200 million share repurchase program, which is a vote of confidence in our financial strength and long-term growth prospect.”

    Fourth Quarter 2023 Highlights

    • Total revenues for the quarter were $36.0 million, a decrease of 10.2% from $40.1 million in the fourth quarter of 2022.
      • Agora: $15.3 million for the quarter, a decrease of 3.2% from $15.8 million in the fourth quarter of 2022.
      • Shengwang: RMB148.3 million ($20.7 million) for the quarter, a decrease of 13.9% from RMB172.3 million ($24.3 million) in the fourth quarter of 2022, or a decrease of 9.6% from RMB164.0 million ($23.1 million) in the fourth quarter of 2022 if excluding revenue from the disposed Customer Engagement Cloud (“CEC”) business.
    • Active Customers
      • Agora: 1,683 as of December 31, 2023, an increase of 18.4% from 1,422 as of December 31, 2022.
      • Shengwang: 4,144 as of December 31, 2023, an increase of 11.8% from 3,705 as of December 31, 2022.
    • Dollar-Based Net Retention Rate
      • Agora: 93% for the trailing 12-month period ended December 31, 2023.
      • Shengwang: 82% for the trailing 12-month period ended December 31, 2023 (excluding revenues from terminated businesses due to regulatory changes in the education sector).
    • Net loss for the quarter was $2.6 million, compared to net loss of $35.1 million in the fourth quarter of 2022. After excluding share-based compensation expenses, acquisition related expenses, financing related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill, non-GAAP net income for the quarter was $1.4 million, compared to the non-GAAP net loss of $15.7 million in the fourth quarter of 2022.
    • Adjusted EBITDA for the quarter was negative $2.0 million, compared to negative $8.5 million in the fourth quarter of 2022.
    • Total cash, cash equivalents, bank deposits and financial products issued by banks as of December 31, 2023 was $371.8 million.
    • Net cash generated from operating activities for the quarter was $3.7 million, compared to net cash used in operating activities of $4.6 million in the fourth quarter of 2022. Free cash flow for the quarter was $3.4 million, compared to negative $6.1 million in the fourth quarter of 2022.

    Fiscal Year 2023 Highlights

    • Total revenues in 2023 were $141.5 million, a decrease of 11.9% from $160.7 million in 2022.
      • Agora: $61.0 million in 2023, a decrease of 2.4% from $62.5 million in 2022.
      • Shengwang: RMB567.1 million ($80.5 million) in 2023, a decrease of 14.0% from RMB659.4 million ($98.2 million) in 2022, or a decrease of 9.1% from RMB623.7 million ($92.8 million) in 2022 if excluding revenue from the disposed CEC business.
    • Net loss in 2023 was $87.2 million, compared to net loss of $120.4 million in 2022. After excluding share-based compensation expenses, acquisition related expenses, financing related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill, non-GAAP net loss in 2023 was $29.9 million, compared to non-GAAP net loss of $71.1 million in 2022.
    • Adjusted EBITDA in 2023 was negative $19.5 million, compared to negative $56.6 million in 2022.
    • Net cash used in operating activities in 2023 was $13.6 million, compared to $52.4 million in 2022. Free cash flow in 2023 was negative $14.5 million, compared to negative $56.5 million in 2022.

    Fourth Quarter 2023 Financial Results

    Revenues
    Total revenues were $36.0 million in the fourth quarter of 2023, a decrease of 10.2% from $40.1 million in the same period last year. Revenues of Agora were $15.3 million in the fourth quarter of 2023, a decrease of 3.2% from $15.8 million in the same period last year, primarily due to the decrease in usage from certain customers in emerging markets due to their tightening financing conditions. Revenues of Shengwang were RMB148.3 million ($20.7 million) in the fourth quarter of 2023, a decrease of 13.9% from RMB172.2 million ($24.3 million) in the same period last year, primarily due to the change of macroeconomic conditions and the disposal of the CEC business in the first quarter of 2023.

    Cost of Revenues
    Cost of revenues was $13.4 million in the fourth quarter of 2023, a decrease of 15.0% from $15.7 million in the same period last year, primarily due to the decrease in bandwidth usage and co-location costs.

    Gross Profit and Gross Margin
    Gross profit was $22.7 million in the fourth quarter of 2023, a decrease of 7.1% from $24.4 million in the same period last year. Gross margin was 62.9% in the fourth quarter of 2023, an increase of 2.1% from 60.8% in the same period last year, mainly due to the implementation of technical and infrastructural optimizations.

    Operating Expenses
    Operating expenses were $31.2 million in the fourth quarter of 2023, a decrease of 26.8% from $42.7 million in the same period last year.

    • Research and development expenses were $16.3 million in the fourth quarter of 2023, a decrease of 23.3% from $21.3 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from $3.7 million in the fourth quarter of 2022 to $2.0 million in the fourth quarter of 2023.
    • Sales and marketing expenses were $7.1 million in the fourth quarter of 2023, a decrease of 42.1% from $12.2 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce.
    • General and administrative expenses were $7.9 million in the fourth quarter of 2023, a decrease of 14.7% from $9.2 million in the same period last year, primarily due to decreased professional services expenses and a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from $1.8 million in the fourth quarter of 2022 to $1.2 million in the fourth quarter of 2023.

    Other Operating Income
    Other operating income was $0.2 million in the fourth quarter of 2023, compared to $0.1 million in the same period last year, primarily due to increase in government subsidies.

    Loss from Operations
    Loss from operations was $8.4 million in the fourth quarter of 2023, compared to $30.1 million in the same period last year.

    Interest Income
    Interest income was $4.8 million in the fourth quarter of 2023, compared to $3.2 million in the same period last year, primarily due to the increase in interest rates.

    Other income
    Other income was $1.1 million in the fourth quarter of 2023, primarily due to the income of incentive payments from a depositary bank, whereas there were no material transactions in the same period last year.

    Net Loss
    Net loss was $2.6 million in the fourth quarter of 2023, compared to $35.1 million in the same period last year.

    Net Loss per American Depositary Share attributable to ordinary shareholders
    Net loss per American Depositary Share (“ADS”)1 attributable to ordinary shareholders was $0.03 in the fourth quarter of 2023, compared to $0.32 in the same period last year.

    Fiscal Year 2023 Financial Results

    Revenues
    Total revenues in 2023 were $141.5 million, a decrease of 11.9% from $160.7 million in 2022. Revenues of Agora were $61.0 million in 2023, a decrease of 2.4% from $62.5 million in 2022, primarily due to the decrease in usage from and pricing to certain customers in emerging markets due to their tightening financing conditions. Revenues of Shengwang were RMB567.1 million ($80.5 million) in 2023, a decrease of 14.0% from RMB659.4 million ($98.2 million) in 2022, primarily due to the change of macroeconomic conditions, fast evolving regulations in certain downstream markets and the disposal of the CEC business in the first quarter of 2023.

    Cost of Revenues
    Cost of revenues in 2023 was $52.1 million, a decrease of 15.0% from $61.2 million in 2022, primarily due to the decrease in bandwidth usage and co-location costs.

    Gross Profit and Gross Margin
    Gross profit in 2023 was $89.5 million, a decrease of 10.0% from $99.4 million in 2022. Gross margin in 2023 was 63.2%, an increase of 1.3% from 61.9% in 2022 mainly due to the implementation of technical and infrastructural optimizations.

    Operating Expenses
    Operating expenses in 2023 were $146.6 million, a decrease of 29.2% from $206.9 million in 2022.

    • Research and development expenses in 2023 were $77.7 million, a decrease of 32.2% from $114.5 million in 2022, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from $18.1 million in 2022 to $12.7 million in 2023.
    • Sales and marketing expenses in 2023 were $34.0 million, a decrease of 36.8% from $53.8 million in 2022, primarily due to a decrease in personnel costs as the Company optimized its global workforce, including a decrease in share-based compensation from $6.1 million in 2022 to $4.1 million in 2023.
    • General and administrative expenses in 2023 were $35.0 million, a decrease of 9.6% from $38.7 million in 2022, primarily due to decreased professional services expenses and a decrease in personnel costs as the Company optimized its global workforce.

    Other Operating Income
    Other operating income in 2023 was $1.7 million, compared to $3.7 million in 2022, the majority of which came from government subsidies in both periods.

    Impairment of Goodwill
    An impairment of goodwill for $31.9 million was identified and recorded in the second quarter of 2023, primarily related to the negative impact on market demands because of a challenging global macroeconomic environment and regulatory changes in certain sectors. An impairment of goodwill for $11.9 million was identified and recorded in the fourth quarter of 2022, primarily related to Easemob as the financial performance of customer engagement cloud business fell below original expectations.

    Loss from Operations
    Loss from operations in 2023 was $87.3 million, compared to $115.8 million in 2022.

    Interest Income
    Interest income in 2023 was $18.8 million, compared to $9.6 million in 2022, primarily due to the increase in interest rate.

    Investment Loss
    Investment loss was $19.8 million in 2023, compared to $8.8 million in 2022, primarily due to the fair value decrease in an equity investment of $7.0 million and impairment losses on investments in certain private companies of $12.5 million.

    Net Loss
    Net loss in 2023 was $87.2 million, compared to net loss of $120.4 million in 2022.

    Net Loss per ADS attributable to ordinary shareholders
    Net loss per ADS attributable to ordinary shareholders in 2023 was $0.88, compared to $1.08 in 2022.

    ________________
    1 One ADS represents four Class A ordinary shares.

    Share Repurchase Program

    During the three months ended December 31, 2023, the Company repurchased approximately 14.1 million of its class A ordinary shares (equivalent to approximately 3.5 million ADSs) for approximately US$10.0 million under its share repurchase program, representing 5% of its US$200 million share repurchase program.

    As of December 31, 2023, the Company had repurchased approximately 113.8 million of its class A ordinary shares (equivalent to approximately 28.5 million ADSs) for approximately US$104.3 million under its share repurchase program, representing 52% of its US$200 million share repurchase program.

    As of December 31, 2023, the Company had 368.8 million ordinary shares (equivalent to approximately 92.2 million ADSs) outstanding, compared to 449.8 million ordinary shares (equivalent to approximately 112.5 million ADSs) outstanding as of January 31, 2022 before the share repurchase program commenced.

    The board of directors has authorized an extension of the existing share repurchase program through February 28, 2025, with all other terms remaining unchanged.

    Financial Outlook

    Based on currently available information, the Company expects total revenues for the first quarter of 2024 to be between $32 million and $34 million. This outlook reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.

    Earnings Call

    The Company will host a conference call to discuss the financial results at 5 p.m. Pacific Time / 8 p.m. Eastern Time on February 26, 2024. Details for the conference call are as follows:
    Event title: Agora, Inc. 4Q 2023 Financial Results
    The call will be available at https://edge.media-server.com/mmc/p/p29mk9bu
    Investors who want to hear the call should log on at least 15 minutes prior to the broadcast. Participants may register for the call with the link below.
    https://register.vevent.com/register/BI4b1e0c6631eb43448b9f00444ac7cff4
    Please visit the Company’s investor relations website at https://investor.agora.io on February 26, 2024 to view the earnings release and accompanying slides prior to the conference call.

    Use of Non-GAAP Financial Measures

    The Company has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company uses these non-GAAP financial measures internally in analyzing its financial results and believe that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing its financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Besides free cash flow (as defined below), each of these non-GAAP financial measures represents the corresponding GAAP financial measure before share-based compensation expenses, acquisition related expenses, financing related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill. The Company believes that such non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effects of such share-based compensation expenses, acquisition related expenses, financing related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill that it includes in its cost of revenues, total operating expenses and net income (loss). The Company believes that all such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

    Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of its historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the tables captioned “Reconciliation of GAAP to Non-GAAP Measures” included at the end of this press release, and investors are encouraged to review the reconciliation.

    Definitions of the Company’s non-GAAP financial measures included in this press release are presented below.

    Non-GAAP Net Income (Loss)

    Non-GAAP net income (loss) is defined as net income (loss) adjusted to exclude share-based compensation expenses, acquisition related expenses, financing related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill.

    Adjusted EBITDA

    Adjusted EBITDA is defined as net income (loss) before exchange gain (loss), interest income, investment income (loss), other income, equity in income of affiliates, income taxes, depreciation of property and equipment, amortization of land use right, and adjusted to exclude the effects of share-based compensation expenses, acquisition related expenses, financing related expenses, amortization expenses of acquired intangible assets and impairment of goodwill.

    Free Cash Flow

    Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment (excluding the acquisition of land use right and the construction in progress for the headquarters project). The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.

    Operating Metrics

    The Company also uses other operating metrics included in this press release and defined below to assess the performance of its business.

    Active Customers

    An active customer at the end of any particular period is defined as an organization or individual developer from which the Company generated more than $100 of revenue during the preceding 12 months. Customers are counted based on unique customer account identifiers. Generally, one software application uses the same customer account identifier throughout its life cycle while one account may be used for multiple applications.

    Dollar-Based Net Retention Rate

    Dollar-Based Net Retention Rate is calculated for a trailing 12-month period by first identifying all customers in the prior 12-month period, and then calculating the quotient from dividing the revenue generated from such customers in the trailing 12-month period by the revenue generated from the same group of customers in the prior 12-month period. As the vast majority of revenue generated from Agora’s customers is denominated in U.S. dollars, while the vast majority of revenue generated from Shengwang’s customers is denominated in Renminbi, Dollar-Based Net Retention Rate is calculated in U.S. dollars for Agora and in Renminbi for Shengwang, which has substantially removed the impact of foreign currency translations. The Company believes Dollar-Based Net Retention Rate facilitates operating performance comparisons on a period-to-period basis.

    Safe Harbor Statements

    This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the Company’s financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. Among other things, the Financial Outlook in this announcement contain forward-looking statements. These forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the growth of the RTE-PaaS market; the Company’s ability to manage its growth and expand its operations; the continued impact of COVID-19 on global markets and the Company’s business, operations and customers; the Company’s ability to attract new developers and convert them into customers; the Company’s ability to retain existing customers and expand their usage of its platform and products; the Company’s ability to drive popularity of existing use cases and enable new use cases, including through quality enhancements and introduction of new products, features and functionalities; the Company’s fluctuating operating results; competition; the effect of broader technological and market trends on the Company’s business and prospects; general economic conditions and their impact on customer and end-user demand; and other risks and uncertainties included elsewhere in the Company’s filings with the Securities and Exchange Commission (“SEC”), including, without limitation, the final prospectus related to the IPO filed with the SEC on June 26, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

    About Agora, Inc.

    Agora, Inc. is the holding company of two independent businesses, Agora and Shengwang.

    Headquartered in Santa Clara, California, Agora is a pioneer and global leader in Real-Time Engagement Platform-as-a-Service (PaaS), providing developers with simple, flexible, and powerful application programming interfaces, or APIs, to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications.

    Headquartered in Shanghai, China, Shengwang is a pioneer and leading Real-Time Engagement PaaS provider in the China market.

    For more information on Agora, please visit: www.agora.io
    For more information on Shengwang, please visit: www.shengwang.cn

     
    Agora, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited, in US$ thousands)
     
     As of
    		 As of
     December 31,
    		 December 31,
     2023
    		 2022
    Assets     
    Current assets:     
    Cash and cash equivalents36,894  45,673 
    Short-term bank deposits86,924  334,537 
    Short-term financial products issued by banks84,853  33,359 
    Short-term investments7,983  14,143 
    Accounts receivable, net34,668  32,803 
    Prepayments and other current assets9,059  7,326 
    Contract assets1,048  634 
    Held-for-sale assets-  17,004 
    Total current assets261,429  485,479 
    Property and equipment, net22,708  12,946 
    Operating lease right-of-use assets4,011  2,344 
    Intangible assets1,274  2,727 
    Goodwill-  31,928 
    Long-term bank deposits143,127  - 
    Long-term financial products issued by banks20,000  39,000 
    Long-term investments43,893  55,159 
    Land use right, net167,246  - 
    Prepayment for land use right-  168,244 
    Other non-current assets10,907  2,888 
    Total assets674,595  800,715 
          
    Liabilities and shareholders’ equity     
    Current liabilities:     
    Accounts payable12,996  10,103 
    Advances from customers7,765  8,352 
    Taxes payable906  1,867 
    Current operating lease liabilities2,447  1,932 
    Accrued expenses and other current liabilities32,777  47,011 
    Held-for-sale liabilities-  2,388 
    Total current liabilities56,891  71,653 
    Long-term payable3  55 
    Long-term operating lease liabilities1,726  340 
    Deferred tax liabilities196  407 
    Long-term borrowings11,027  - 
    Total liabilities69,843  72,455 


    Shareholders’ equity:     
    Class A ordinary shares39  39 
    Class B ordinary shares8  8 
    Additional paid-in-capital1,138,346  1,134,704 
    Treasury shares, at cost(79,716) (41,815)
    Accumulated other comprehensive loss(10,027) (7,994)
    Accumulated deficit(443,898) (356,682)
    Total shareholders’ equity604,752  728,260 
    Total liabilities and shareholders’ equity674,595  800,715 


     
    Agora, Inc.
    Condensed Consolidated Statements of Comprehensive Income (Loss)
    (Unaudited, in US$ thousands, except share and per ADS amounts)
     
     Three Months Ended Year Ended
     December 31, December 31,
     20232022 20232022
    Real-time engagement service revenues32,300 37,766  133,098 152,886 
    Real-time engagement on-premise solution and other revenues3,741 2,352  8,440 7,784 
    Total revenues36,041 40,118  141,538 160,670 
    Cost of revenues13,370 15,727  52,063 61,247 
    Gross profit22,671 24,391  89,475 99,423 
    Operating expenses:     
    Research and development16,310 21,255  77,666 114,502 
    Sales and marketing7,055 12,189  33,958 53,769 
    General and administrative7,876 9,232  34,976 38,671 
    Total operating expenses31,241 42,676  146,600 206,942 
    Other operating income214 104  1,729 3,697 
    Impairment of goodwill- (11,941) (31,928)(11,941)
    Loss from operations(8,356)(30,122) (87,324)(115,763)
    Exchange gain (loss)40 (52) (151)(5,021)
    Interest income4,810 3,168  18,816 9,636 
    Investment loss(29)(7,754) (19,756)(8,813)
    Other income1,099 -  1,649 - 
    Loss before income taxes(2,436)(34,760) (86,766)(119,961)
    Income taxes(99)(279) (422)(663)
    Equity in income (loss) of affiliates(76)(20) (31)244 
    Net loss(2,611)(35,059) (87,219)(120,380)
    Net loss attributable to ordinary shareholders(2,611)(35,059) (87,219)(120,380)
    Other comprehensive income (loss):     
    Foreign currency translation adjustments2,678 3,670  (3,419)(9,856)
    Gain (loss) on available-for-sale debt securities- (147) 1,385 (1,286)
    Total comprehensive income (loss) attributable to ordinary shareholders67 (31,536) (89,253)(131,522)
          
    Net loss per ADS attributable to ordinary shareholders, basic and diluted(0.03)(0.32) (0.88)(1.08)
          
    Weighted-average shares used in computing net loss per ADS attributable to ordinary shareholders, basic and diluted379,033,868 439,557,186  398,384,385 446,426,914 
          
    Share-based compensation expenses included in:     
    Cost of revenues46 146  621 906 
    Research and development expenses2,027 3,713  12,696 18,055 
    Sales and marketing expenses440 1,090  4,145 6,140 
    General and administrative expenses1,197 1,770  7,150 7,262 


     
    Agora, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited, in US$ thousands)
     
     Three Months Ended Year Ended
     December 31, December 31,
     20232022 20232022
    Cash flows from operating activities:     
    Net loss(2,611)(35,059) (87,219)(120,380)
    Adjustments to reconcile net loss to net cash generated from (used in) operating activities:     
    Share-based compensation expenses3,710 6,719  24,612 32,363 
    Allowance for current expected credit losses1,688 1,694  7,046 5,391 
    Depreciation of property and equipment1,416 2,266  7,096 9,497 
    Amortization of intangible assets348 590  1,384 2,322 
    Amortization of land use right853 -  3,165 - 
    Deferred tax expense (benefit)(53)(84) (212)(336)
    Amortization of right-of-use asset and interest on lease liabilities717 940  2,935 4,064 
    Investment loss29 7,746  19,756 8,607 
    Interest income on debt securities and investments- (101) (105)(401)
    Equity in loss (income) of affiliates76 20  31 (244)
    Loss (gain) on disposal of property and equipment(1)-  (11)- 
    Impairment of goodwill- 11,941  31,928 11,941 
    Return on investment from equity affiliates21 -  21 - 
    Interest expense20 -  20 - 
    Changes in assets and liabilities, net of effect of acquisition:     
    Accounts receivable(1,244)(1,488) (9,100)(8,033)
    Contract assets420 (66) (522)(564)
    Prepayments and other current assets(793)(509) (1,801)(515)
    Other non-current assets(2,118)34  (7,278)3,146 
    Accounts payable(393)1,495  3,246 5,526 
    Advances from customers76 587  (483)1,371 
    Taxes payable(355)1,118  (1,157)(391)
    Operating lease liabilities(780)(877) (2,649)(4,212)
    Deferred income- 257  (160)402 
    Accrued expenses and other liabilities2,654 (1,863) (4,154)(1,934)
    Net cash generated from (used in) operating activities3,680 (4,640) (13,611)(52,380)
    Cash flows from investing activities:     
    Purchase of short-term bank deposits(31,924)(20,000) (219,445)(424,627)
    Purchase of short-term financial products issued by banks- (5,512) (29,899)(19,787)
    Purchase of short-term investments(2)(6,645) (791)(14,650)
    Proceeds from maturity of short-term bank deposits33,000 104,056  467,058 538,765 
    Proceeds from maturity of short-term financial products issued by banks9,212 -  17,522 3,549 
    Purchase of long-term bank deposits- (39,000) (143,127)(40,657)
    Purchase of long-term financial products issued by banks- -  (20,000)- 
    Purchase of long-term investments- (56) (15)(18,160)
    Prepayment for long-term investments- -  - (1,949)
    Withdrawal of long-term investments- -  - 2,113 
    Purchase of property and equipment(268)(1,416) (924)(4,123)
    Purchase of land use right- -  (5,133)- 
    Deposit for land use rights purchase- -  - (34,159)
    Withdrawal of deposit for land use right purchase- -  - 34,159 
    Prepayment for land use right purchase- -  - (171,592)
    Purchase of construction in progress for the headquarters project(6,466)-  (10,792)- 
    Cash received for business disposal- -  5,769 - 
    Disposal of property and equipment5 -  92 - 
    Cash paid for a business combination- -  (3,680)- 
    Return of investment from equity affiliates8 56  8 56 
    Advance payment received for business disposal- 7,000  - 7,000 
    Net cash provided by (used in) investing activities3,565 38,483  56,643 (144,062)
    Cash flows from financing activities:     
    Proceeds from long-term borrowings10,909 -  10,909 - 
    Deposits received for business disposal- 1,000  - 1,000 
    Deposits returned for business disposal- -  (1,000)- 
    Proceeds from exercise of employees’ share options44 126  634 1,096 
    Payment of financing cost- (738) - (2,111)
    Repurchase of Class A ordinary shares(10,082)(18,296) (62,911)(41,135)
    Net cash provided by (used in) financing activities871 (17,908) (52,368)(41,150)
    Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash481 408  (805)(918)
    Net increase (decrease) in cash, cash equivalents and restricted cash8,597 16,343  (10,141)(238,510)
    Cash balance recorded in held-for sale assets at beginning of period- (1,488) 1,488 (1,488)
    Cash, cash equivalents and restricted cash at beginning of period *28,577 30,972  45,827 285,825 
    Cash, cash equivalents and restricted cash at end of period **37,174 45,827  37,174 45,827 
    Supplemental disclosure of cash flow information:     
    Income taxes paid87 -  152 55 
    Interest paid24 -  24 - 
    Cash payments included in the measurement of operating lease liabilities780 877  2,649 4,212 
    Right-of-use assets obtained in exchange for operating lease obligations500 -  4,588 198 
    Non-cash financing and investing activities:     
    Proceeds receivable from exercise of employees’ share options116 90  116 90 
    Deposits utilized for employees’ share option exercises- 6   13 
    Payables for property and equipment12 227  12 227 
    Payables for construction in progress for the headquarters project7,098 -  7,098 - 
    Payables for interest11 -  11 - 
    Payables for treasury shares, at cost211 680  211 680 
              
    * includes restricted cash balance280 154  154 156 
    ** includes restricted cash balance280 154  280 154 


     
    Agora, Inc.
    Reconciliation of GAAP to Non-GAAP Measures
    (Unaudited, in US$ thousands, except share and per ADS amounts)
     
     Three Months Ended Year Ended
     December 31, December 31,
     20232022 20232022
    GAAP net loss(2,611)(35,059) (87,219)(120,380)
    Add:     
    Share-based compensation expenses3,710 6,719  24,612 32,363 
    Acquisition related expenses8 179  (392)928 
    Financing related expenses- -  - 2,166 
    Amortization expenses of acquired intangible assets345 556  1,380 2,224 
    Income tax related to acquired intangible assets(53)(84) (212)(336)
    Impairment of goodwill- 11,941  31,928 11,941 
    Non-GAAP net income (loss)1,399 (15,748) (29,903)(71,094)
          
    GAAP net loss(2,611)(35,059) (87,219)(120,380)
    Excluding:     
    Exchange (gain) loss(40)52  151 5,021 
    Interest income(4,810)(3,168) (18,816)(9,636)
    Investment loss29 7,754  19,756 8,813 
    Equity in loss (income) of affiliates76 20  31 (244)
    Other income(1,099)-  (1,649)- 
    Income taxes99 279  422 663 
    Depreciation of property and equipment1,416 2,266  7,096 9,497 
    Amortization of land use right853 -  3,165 - 
    Share-based compensation expenses3,710 6,719  24,612 32,363 
    Acquisition related expenses8 179  (392)928 
    Financing related expenses- -  - 2,166 
    Amortization expenses of acquired intangible assets345 556  1,380 2,224 
    Impairment of goodwill- 11,941  31,928 11,941 
    Adjusted EBITDA(2,024)(8,461) (19,535)(56,644)
          
    Net cash generated from (used in) operating activities3,680 (4,640) (13,611)(52,380)
    Purchase of property and equipment(268)(1,416) (924)(4,123)
    Free Cash Flow3,412 (6,056) (14,535)(56,503)
    Net cash provided by (used in) investing activities3,565 38,483  56,643 (144,062)
    Net cash provided by (used in) financing activities871 (17,908) (52,368)(41,150)

     


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