Agora, Inc. (NASDAQ: API) Q1 2025 Earnings Call | 05/28/2025

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Agora, Inc. reported Q1 2025 results on May 28, 2025, marking its second consecutive quarter of GAAP profitability and continued momentum in conversational AI. Total revenue for the quarter was $33.3 million, up 12% year-over-year (excluding certain low-margin products), driven by a 17.7% increase in core revenue to $18.6 million and strong adoption of AI-powered solutions. The company achieved a net income of $0.4 million, a significant turnaround from a net loss of $9.5 million in Q1 2024, with diluted EPS of $0.004 per ADS. Gross margin expanded to 68%, up 6.8 percentage points from a year ago, reflecting the end of certain low-margin product lines and ongoing operational efficiencies. Operating expenses dropped 20.5% year-over-year to $26.5 million, as Agora optimized its global workforce and reduced personnel costs across R&D, sales, and administration. Agora’s active customer base grew to 3,800, up from 3,616 last year, with dollar-based net retention rates improving to 96% for Agora and 85% for Shengwang. The company ended the quarter with a robust cash position of $388 million and generated $17.6 million in net operating cash flow, supporting continued investment in product innovation and share repurchases. Strategically, Agora launched its Conversational AI Engine and ConvoAI Device Kit, targeting the fast-growing market for voice-based AI applications in devices and services. The company remains focused on expanding its real-time engagement platform and capitalizing on global demand for AI-driven voice and video solutions. Outlook: Q2 2025 revenue guidance: $33–$35 million, excluding certain low-margin products. Management expects to maintain full-year GAAP profitability, building on recent operational improvements and AI-driven growth. Continued investment in conversational AI, product innovation, and global expansion, supported by a strong balance sheet and ongoing share repurchases. #Agora #API #EarningsCall #Q12025 #ConversationalAI #Profitability #GrossMargin #VoiceAI #RealTimeEngagement #Investing #InsideTicker