Agora, Inc. (NASDAQ:API) Q3 2023 Earnings Call Transcript
Agora, Inc. (NASDAQ:API) Q3 2023 Earnings Call Transcript November 22, 2023
Operator: Good day, and thank you for standing by. Welcome to Agora, Inc. Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. The company's earnings results press release, earnings presentations, SEC filings and a replay of today's call can be found on its IR website at investor.agora.io. Joining me today are Tony Zhao, Founder, Chairman and CEO; Jingbo Wang, the company's CFO. Reconciliations between the company's GAAP and non-GAAP results can be found in its earnings press release. During this call, the company will make forward-looking statements about its future financial performance and other future events and trends. These statements are only predictions that are based on the company's belief today, and actual results may differ materially.
These forward-looking statements are subject to risks uncertainties, assumptions and other factors that could affect the company's financial results and its performance of its business, and which the company has discussed in details in its filings and SEC, including today's earnings press release and the risk factors of other information contained in the final prospectus relating to its initial public offering. Agora, Inc. remains no obligation to update any forward-looking statements the company may take on today's call. With that, let me turn it over to Tony. Hi, Tony.
Tony Zhao: Thanks, operator, and welcome, everyone, to our earnings call. In the third quarter, our revenue was $15.3 million for Agora, flat compared to last quarter at RMB 141 million for Shengwang, an increase of 7.4% quarter-over-quarter. As of the end of this quarter, we have more than 1,600 active customers for Agora and more than 4,000 for Shengwang, an increase of 26% and 6%, respectively, compared to 1 year ago. Now moving on to our business, product and technology updates for the quarter. Let's start with Agora. We recently announced the general availability of video-based solution to power live shopping experiences. In recent years, live shopping has disrupted and transformed the entire e-commerce market in China.
We believe that the U.S. and other developed market will soon catch up and embrace live shopping as the next big trend. According to McKenzie, live shopping could account for 20% of our e-commerce sales by 2026 and the U.S. live shopping market is estimated to be worth $35 billion by 2024. We're also proud to mention that Agora was highlighted as a leading lender in Gartner's recent market guide for live commerce in retail. With Agora, brands, marketplace and platforms can now seize the live shopping opportunity with ease. For example, we recently helped CommentSold, the leading fashion live shopping platform for retailers to introduce a new functionality that allows sellers to invite external participants into their shows simply by sending them a link or QR code.
Sellers can easily and professionally host, celebrate -- can easily add professional host, celebrities, influencers or VIP customers to join their live shopping session video to provide more engaging content and boost conversion. This quarter, we also partnered with the Sandbox, a leading decentralized gaming virtual world to promote real-time engagement and social interactions within the metaverse through voice, video and chat. The Sandbox choose Agora because of our comprehensive product stack, which can seamlessly integrate 3D spatial audio, persistent text chat and interactive live streaming functionalities at scale. As a result, players' ability to connect, collaborate and form meaningful communities in the metaverse is significantly enhanced.
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