Agora, Inc. announced its unaudited financial results for the first quarter ended March 31, 2025, reporting total revenues of $33.3 million, an increase of 0.8% year-over-year. Excluding revenues from certain end-of-sale low-margin products, total revenues grew by 12% year-over-year. The Agora segment's revenues increased by 17.7% to $18.6 million, driven by business expansion in live shopping, while the Shengwang segment's revenues decreased by 13.9% to RMB105.5 million ($14.7 million).
The company achieved its second consecutive quarter of GAAP profitability, with a net income of $0.4 million, a significant improvement from a net loss of $9.5 million in Q1 2024. Gross margin for the quarter was 68.0%, up from 61.2% in the prior year, primarily due to the discontinuation of low-margin products. Operating expenses decreased by 20.5% year-over-year to $26.5 million, contributing to the improved profitability.
Agora repurchased approximately $1.2 million worth of shares in Q1 2025, bringing the total repurchases under its program to $116.4 million as of March 31, 2025, with the program extended through February 2026. For the second quarter of 2025, the company expects total revenues to be between $33 million and $35 million. Management noted significant interest from developers and customers in its Conversational AI Engine since its March launch, with expectations for increasing adoption and revenue contribution over time.
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