Agora Inc
NASDAQ:API
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Agora Inc
NASDAQ:API
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Agora Inc
Agora makes software tools that let developers add real-time voice, video, live audio, chat, and interactive streaming features inside their apps. Instead of building those communication systems from scratch, customers use Agora’s APIs and SDKs to plug in calls, meetings, classrooms, live events, social features, and other live interactions. Its main customers are app makers and companies in areas like online education, telehealth, gaming, social media, customer service, and live commerce. Agora usually makes money when customers use its services, so revenue is tied to how much real-time traffic runs through its platform. That usage-based model fits products where communication quality and reliability matter more than owning the full app. What makes Agora different is that it sits in the middle of the app stack: it is not the end-user app, but the engine that carries the live conversation. That gives it a specialized role in software development, especially for products that need low-latency audio and video and want to scale without building telecom-style infrastructure themselves.
Agora makes software tools that let developers add real-time voice, video, live audio, chat, and interactive streaming features inside their apps. Instead of building those communication systems from scratch, customers use Agora’s APIs and SDKs to plug in calls, meetings, classrooms, live events, social features, and other live interactions.
Its main customers are app makers and companies in areas like online education, telehealth, gaming, social media, customer service, and live commerce. Agora usually makes money when customers use its services, so revenue is tied to how much real-time traffic runs through its platform. That usage-based model fits products where communication quality and reliability matter more than owning the full app.
What makes Agora different is that it sits in the middle of the app stack: it is not the end-user app, but the engine that carries the live conversation. That gives it a specialized role in software development, especially for products that need low-latency audio and video and want to scale without building telecom-style infrastructure themselves.
Revenue: Q4 revenue $38.2 million, up 10.7% YoY and above the high end of guidance.
Profitability: GAAP net income $4.9 million (12.9% net margin); fifth consecutive profitable quarter and first full year of GAAP profitability since 2018.
AI Momentum: Conversational AI usage has more than doubled each quarter since launch; company targets conversational AI to approach 5% of ARR by year-end.
Key Win: Delivered near‑real‑time HD streaming to ~600,000 peak concurrent viewers for a major live shopping event (MrBeast on Whatnot), underscoring scale and latency strengths.
Margins: Gross margin 65.1%, down 1.5 percentage points YoY (driven by low-scale conversational AI usage); management expects gross margin roughly flat near Q4 levels in near term.
Cash & Buybacks: Cash and equivalents $374.9 million; repurchased $10.9 million in the quarter and board extended the repurchase program through Feb 28, 2027.
Guidance: Q1 2026 revenue guide $36.0–$37.0 million (up 8.1%–11.1% YoY).
Profitability Outlook: Company expects operating income to improve in 2026 and targets GAAP operating profit in Q4 2026 (after ~$6 million share‑based comp and ~$4 million HQ amortization).
