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1. Company Snapshot

1.a. Company Description

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.Acceleration products; and extensions, which comprise interactive whiteboard, recording, analytics, and extensions marketplace products to enable developers to launch RTE in specific use cases and verticals.The company also provides Flexible Classroom that offers a low-code application Platform as a Service; and App Builder, no-code application platform.


Its real-time engagement products are delivered through its Software-Defined Real-Time Network, which is a virtual network overlay on top of the public internet.The company serves social, entertainment, gaming, education, enterprise solutions, e-commerce, financial services, healthcare, and IoT industries.Agora, Inc.


was incorporated in 2013 and is headquartered in Shanghai, the People's Republic of China.

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1.b. Last Insights on API

Agora's recent performance is driven by strong Q4 and FY 2024 financial results, with the company reporting solid revenue growth and profitability. The real-time engagement technology leader's senior management team has also demonstrated confidence in the company's future by voluntarily entering into a lock-up period until December 2025. Additionally, Agora's recent earnings call highlighted the company's continued innovation and expansion into new markets, further solidifying its position as a pioneer in real-time engagement technology.

1.c. Company Highlights

2. Agora's Q3 2025 Earnings: A Strong Rebound in Sight

Agora, Inc. reported a total revenue of $35.4 million for the third quarter of 2025, marking a 12% year-over-year increase. The company achieved its fourth consecutive quarter of GAAP profitability, with a GAAP net profit of $2.7 million and a GAAP net margin of 7.8%. The earnings per share (EPS) came in at $0.00157, beating estimates of -$0.02. The gross margin for the quarter was 66%, slightly lower than the previous year. The company's core real-time engagement business is showing signs of a strong rebound, with revenue growth expected to continue on a quarter-over-quarter basis.

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth:: Total revenue reached $35.4 million, up 12% YoY.
  • GAAP Profitability:: Achieved $2.7 million net profit (7.8% margin), fourth consecutive profitable quarter.
  • Core Business Rebound:: Real-time engagement revenue hit $18.2 million, with 108% dollar-based retention rate.
  • R&D Efficiency:: R&D expenses fell 52.8% YoY, now 39.1% of total revenue.
  • Conversational AI Momentum:: Usage surged 150% QoQ, with ConvaAI expected to become a significant revenue driver by late 2026.

Revenue Growth and Profitability

The core revenues reached $18.2 million in Q3, demonstrating a strong year-over-year growth. The dollar-based network retention rate stood at 108% for Agora and 90% for Shunghu. The research and development (R&D) expenses decreased by 52.8% year-over-year, representing 39.1% of total revenues. This reduction in R&D expenses is a positive indicator, as it suggests that the company is able to manage its costs effectively while investing in growth areas.

Conversational AI and Future Prospects

Agora is increasing its investment in conversational AI, addressing challenges such as background noise, multiple speakers, and reliability. The company recently launched its conversational AI engine 2.0, which integrates advanced audio research and development, including AI-powered noise suppression and acoustic echo cancellation. The conversational AI usage increased by more than 150% quarter-over-quarter, with a strong pipeline of customers and prospects. The company expects to see sizable conversational AI revenue in the first half of next year, with ConvaAI becoming a meaningful revenue contributor towards the end of next year.

Valuation and Outlook

Analysts estimate a revenue growth of 10.5% for next year. With a current P/S Ratio of 2.52, the market seems to be pricing in a moderate growth trajectory. The P/E Ratio stands at -15.09, indicating that the company's current profitability is not fully reflected in its valuation. Agora's guidance for the fourth quarter is between $37 million to $38 million in total revenues, indicating a continued growth momentum. As the company continues to execute its roadmap and build a durable, market-leading position in AI innovation, investors will be watching closely to see if the company can meet its growth expectations.

3. NewsRoom

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Agora Powers Agnes AI to Launch Next-Generation AI Group Chat and Multi-Agent Collaboration System

Dec -02

Source: prnewswire.com

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Agora: A Classic Graham And Dodd Setup On Valuation

Nov -26

Source: seekingalpha.com

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Agora, Inc. (API) Q3 2025 Earnings Call Transcript

Nov -20

Source: seekingalpha.com

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Agora, Inc. Reports Third Quarter 2025 Financial Results

Nov -19

Source: globenewswire.com

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Agora and Akool Launch Conversational AI + Streaming Avatar Collaboration

Nov -06

Source: prnewswire.com

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Agora Builds on Exotel's AgentStream to Deliver Real-Time AI Voice Bots

Oct -15

Source: prnewswire.com

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Agora Brings 4G Connectivity, Visual Intelligence, and Faster Prototyping to Smart Hardware Kit

Sep -24

Source: prnewswire.com

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Agora and Banuba Bring AR-Powered Engagement to Live Video at IBC 2025

Sep -10

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.52%)

6. Segments

Real-time Engagement Service

Expected Growth: 8.5%

Agora's Real-time Engagement Service growth is driven by increasing demand for interactive live streaming, rising adoption of virtual events, and growing need for real-time communication in industries such as education, healthcare, and social media. Additionally, the service's scalability, low latency, and high-quality video experience contribute to its rapid growth.

Other

Expected Growth: 9.5%

Agora's 9.5% growth in 'Other' segment is driven by increasing demand for its real-time engagement platform, expansion into new markets, and growing adoption of its live streaming and interactive broadcasting solutions. Additionally, strategic partnerships and investments in emerging technologies such as AR/VR and 5G are contributing to the segment's growth.

7. Detailed Products

Agora Video Platform

A cloud-based video conferencing platform that enables real-time communication and collaboration

Agora Live Streaming

A scalable and reliable live streaming solution for broadcasting live video content

Agora Real-time Engagement Platform

A platform that enables real-time engagement and interaction between users, such as live polling and Q&A

Agora SDKs and APIs

Software development kits and application programming interfaces for building custom video conferencing and live streaming applications

Agora Analytics

A data analytics platform that provides insights and metrics for video conferencing and live streaming applications

8. Agora, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Agora, Inc. operates in a niche market with limited substitutes, but there are some alternatives available to customers.

Bargaining Power Of Customers

Agora, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Agora, Inc. relies on a few key suppliers, but it has some flexibility to switch to alternative suppliers if needed.

Threat Of New Entrants

The market in which Agora, Inc. operates is attractive, and there are low barriers to entry, making it easier for new entrants to join the market.

Intensity Of Rivalry

The market in which Agora, Inc. operates is highly competitive, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.45%
Debt Cost 3.95%
Equity Weight 97.55%
Equity Cost 4.20%
WACC 4.19%
Leverage 2.51%

11. Quality Control: Agora, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Karooooo

A-Score: 6.8/10

Value: 2.7

Growth: 7.7

Quality: 9.0

Yield: 5.8

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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OpenText

A-Score: 6.0/10

Value: 5.0

Growth: 5.6

Quality: 5.4

Yield: 6.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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Agora

A-Score: 5.5/10

Value: 9.2

Growth: 3.4

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Bitdeer

A-Score: 4.2/10

Value: 6.0

Growth: 2.4

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

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Agilysys

A-Score: 3.5/10

Value: 0.0

Growth: 7.9

Quality: 7.5

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

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AMTD Digital

A-Score: 2.9/10

Value: 1.4

Growth: 3.4

Quality: 6.6

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.78$

Current Price

3.78$

Potential

-0.00%

Expected Cash-Flows