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Mar 31

Agora Q1 2025 Earnings Report

Agora achieved profitability in Q1 2025 with a slight increase in revenue and strong cost control.

Key Takeaways

Agora posted a net income of $0.4M and maintained its revenue level, driven by growth in its core Agora segment and disciplined cost management.

Reported net income of $407,000 compared to a $9.5M loss in Q1 2024.

Total revenue was $33.3M, slightly up from the previous year.

Gross profit rose to $22.6M with a gross margin improvement to 68.0%.

Launched a new Conversational AI Engine in March with positive early adoption.

Total Revenue
$33.3M
Previous year: $33M
+0.8%
EPS
$0.004
Previous year: -$0.05
-108.0%
Agora Active Customers
1.81K
Previous year: 1.72K
+5.0%
Shengwang Active Customers
1.99K
Previous year: 1.9K
+5.2%
Agora Net Retention Rate
96%
Gross Profit
$22.6M
Previous year: $20.2M
+11.9%
Cash and Equivalents
$42.6M
Previous year: $381M
-88.8%
Free Cash Flow
$17.6M
Previous year: -$14M
-225.9%
Total Assets
$704M
Previous year: $690M
+1.9%

Agora

Agora

Agora Revenue by Segment

Agora Revenue by Geographic Location

Forward Guidance

Agora expects Q2 2025 revenue between $33M and $35M, anticipating growth from core business excluding low-margin products.

Positive Outlook

  • Guidance shows growth over adjusted Q2 2024 revenue ($30.9M).
  • Conversational AI expected to gain traction.
  • Solid cash position to support strategic investments.
  • Continued focus on high-margin products.
  • Sustained customer growth in Agora and Shengwang segments.

Challenges Ahead

  • Ongoing decline in Shengwang revenue from legacy products.
  • Currency and macroeconomic risks in China market.
  • Interest income declined from prior year.
  • Continued losses from operations despite net profitability.
  • General reliance on performance of new AI initiatives.

Revenue & Expenses

Visualization of income flow from segment revenue to net income