| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$4.50 |
| 52 Week High | US$34.74 |
| 52 Week Low | US$4.60 |
| Beta | 0.0059 |
| 1 Month Change | -11.59% |
| 3 Month Change | -33.14% |
| 1 Year Change | -83.41% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -91.09% |
Recent News & Updates
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.
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.'
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
| API | US Software | US 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
| API volatility | |
|---|---|
| API Average Weekly Movement | 12.8% |
| Software Industry Average Movement | 10.2% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2013 | 1,311 | Tony Zhao | https://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
| API fundamental statistics | |
|---|---|
| Market Cap | US$548.07m |
| Earnings (TTM) | -US$99.89m |
| Revenue (TTM) | US$164.99m |
3.2x
P/S Ratio-5.2x
P/E RatioIs API overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| API income statement (TTM) | |
|---|---|
| Revenue | US$164.99m |
| Cost of Revenue | US$59.53m |
| Gross Profit | US$105.46m |
| Other Expenses | US$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 Margin | 63.92% |
| Net Profit Margin | -60.55% |
| Debt/Equity Ratio | 0% |
How did API perform over the long term?
See historical performance and comparison