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API

Agora NasdaqGS:API Stock Report

Last Price

US$4.50

Market Cap

US$548.1m

7D

-7.8%

1Y

-83.4%

Updated

16 Aug, 2022

Data

Company Financials +
API fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

API Stock Overview

Agora, Inc. provides Real-Time Engagement Platform-as-a-Service (RTE-PaaS) in the People’s Republic of China, the United States, and internationally.

Agora, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Agora
Historical stock prices
Current Share PriceUS$4.50
52 Week HighUS$34.74
52 Week LowUS$4.60
Beta0.0059
1 Month Change-11.59%
3 Month Change-33.14%
1 Year Change-83.41%
3 Year Changen/a
5 Year Changen/a
Change since IPO-91.09%

Recent News & Updates

Aug 15

Agora GAAP EPS of -$0.27, revenue of $41M

Agora press release (NASDAQ:API): Q2 GAAP EPS of -$0.27. Revenue of $41M (-3.1% Y/Y). Active Customers as of June 30, 2022 were 2,877, excluding those for Easemob, an increase of 17.5% from 2,449 as of June 30, 2021.

Jul 21

Agora Delivers Contracting Revenue And Worsening Operating Losses

Agora reported its Q1 2022 results in May. The firm provides embedded communications software to businesses worldwide. API has generated flat to declining revenue and considerably worsening operating losses. I'm on Hold for Agora until it can reignite growth while making meaningful progress toward operating breakeven. A Quick Take On Agora Agora (API) recently reported its Q1 2022 financial results on May 23, 2022, beating revenue estimates and missing expected earnings results. The company provides embedded video and related software capabilities to businesses worldwide. API has produced an anemic growth trajectory and high and increasing operating losses, so I'm on Hold for API for the near term. Agora Overview Shanghai, China-based Agora was founded in 2013 to offer software developers with tools to embed video, voice and messaging functionalities into Internet applications. The firm is headed by founder, Chairman and CEO Bin [Tony] Zhao, who was previously director and Chief Technology Officer of YY, a video social network and was a senior engineer at WebEx Communications. The company's primary offerings include embedded software for these functionalities: Video Live Streaming Voice Chat Signaling IoT AR/VR The firm acquires customers through direct sales and marketing efforts as well as through advertising and marketing events. Agora has offices in Shanghai and Santa Clara. Agora's Market & Competition According to a 2020 market research report by Grand View Research, the market for Web real-time communications [RTC] products was an estimated $2.3 billion in 2019 and is expected to reach $41 billion by 2027. This represents a forecast extremely high CAGR of 43.4% from 2020 to 2027. The main drivers for this expected growth are the need for a better user experience, reduced costs and an increase in work-from-home employee work environments. Also, the chart below shows the historical and projected future growth trajectory of the N. America WebRTC market through 2027: N. America WebRTC Market (Grand View Research) Major competitive or other industry participants include: Amazon (AMZN) Google (GOOG) Facebook (META) Cisco (CSCO) Oracle (ORCL) Ribbon (RBBN) Avaya (AVYA) Apidaze Dialogic Plivo Quobois Agora's Recent Financial Performance Total revenue by quarter has produced only slight growth or contraction over the past 5 quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has followed approximately the same trajectory as that of total revenue: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have increased markedly as revenue has risen and contracted: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have worsened considerably: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have also performed poorly: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, API's stock price has dropped 84.4 percent vs. the U.S. S&P 500 index's drop of around 8.7 percent, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For Agora Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value -$97,130,000 Market Capitalization $614,110,000 Price / Sales [TTM] 3.56 Revenue Growth Rate [TTM] 20.34% Operating Cash Flow [TTM] -$33,120,000 Earnings Per Share (Fully Diluted) -$0.76 (Source - Seeking Alpha) The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. API's most recent GAAP Rule of 40 calculation was negative (29%) as of Q1 2022, so the firm needs to improve materially in this regard, per the table below: GAAP Rule of 40 Calculation Recent Rev. Growth % 20% GAAP EBITDA % -50% Total -29% (Source - Seeking Alpha) Commentary On Agora In its last earnings call (Source - Seeking Alpha), covering Q1 2022's results, management highlighted the limited impact of the Shanghai COVID-19 lockdowns on its operations there. CEO Zhao noted the firm's 'number one market share in RTE SDK installation globally.' The firm's software is used in 'five out of the top 10 social dating apps in North America and seven out of the top 10 in China.'

Jul 02
Does This Valuation Of Agora, Inc. (NASDAQ:API) Imply Investors Are Overpaying?

Does This Valuation Of Agora, Inc. (NASDAQ:API) Imply Investors Are Overpaying?

How far off is Agora, Inc. ( NASDAQ:API ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

APIUS SoftwareUS Market
7D-7.8%3.0%3.6%
1Y-83.4%-14.7%-9.6%

Return vs Industry: API underperformed the US Software industry which returned -14.7% over the past year.

Return vs Market: API underperformed the US Market which returned -9.6% over the past year.

Price Volatility

Is API's price volatile compared to industry and market?
API volatility
API Average Weekly Movement12.8%
Software Industry Average Movement10.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: API is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: API's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20131,311Tony Zhaohttps://www.agora.io

Agora, 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.

Agora, Inc. Fundamentals Summary

How do Agora's earnings and revenue compare to its market cap?
API fundamental statistics
Market CapUS$548.07m
Earnings (TTM)-US$99.89m
Revenue (TTM)US$164.99m

3.2x

P/S Ratio

-5.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
API income statement (TTM)
RevenueUS$164.99m
Cost of RevenueUS$59.53m
Gross ProfitUS$105.46m
Other ExpensesUS$205.35m
Earnings-US$99.89m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Aug 16, 2022

Earnings per share (EPS)-0.86
Gross Margin63.92%
Net Profit Margin-60.55%
Debt/Equity Ratio0%

How did API perform over the long term?

See historical performance and comparison