FAST NEWS: Agora Revenue Flatlines in Fourth Quarter
The Latest: Real-time engagement technologies provider Agora Inc. (API.US) reported its revenue was flat in last year’s fourth quarter, dipping slightly by 0.7% to $40.1 million from a year earlier. Its net loss widened to $35.1 million from $21.2 million a year ago.
Looking Up: The company recorded a huge drop in quarterly revenue from China’s private tutoring sector, following a major crackdown on the industry. But it offset that loss through new products in video and other applications such as live video shopping and broadcast streaming.
Take Note: The company could continue to suffer from weak demand for its products as the world economy stumbles in the post-Covid era.
Digging Deeper: Agora briefly shot to global fame in 2021 as the provider of audio technology behind chatroom sensation Clubhouse. The company was hit hard by China’s crackdown on the private online tutoring sector in late 2021, forcing it to move beyond its traditional focus to video and other applications including new products related to the emerging areas of the metaverse and internet of things (IoT). In September last year, the company announced its founder and CEO Tony Zhao bought up to $30 million worth of the company’s shares using his personal funds, representing a strong vote of confidence in the company.
Market Reaction: Agora’s stock fell 20.3% to $3.06 on Tuesday in New York, the day after the latest report came out. The stock now trades near the lower end of its 52-week range.
Reporting by Chan Ka Po
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