Agora, Inc. reported total revenues of $31.6 million for the third quarter of 2024, marking a 9.8% decrease from $35.0 million in the same period last year. The Agora segment, serving global markets, saw revenues increase by 2.6% year-over-year to $15.7 million, driven by business expansion in sectors like live shopping. Conversely, the Shengwang segment in China experienced a 20.0% decrease in revenues to RMB112.9 million ($15.9 million), primarily due to the end-of-sale of certain products and reduced usage in social and entertainment sectors.
The company's gross margin improved to 66.7% in Q3 2024, up from 64.0% in the prior year, mainly due to the discontinuation of low-margin products. However, operating expenses increased by 24.3% year-over-year to $45.9 million, largely due to $11.4 million in share-based compensation from canceled equity awards and $4.4 million in severance expenses related to a global workforce restructuring. This resulted in a net loss of $24.2 million, compared to a net loss of $22.5 million in Q3 2023, with a net loss per ADS of $0.26.
Agora repurchased approximately $3.9 million worth of shares in Q3 2024, bringing the total repurchases under its program to $113.7 million as of September 30, 2024, with the program set to expire at the end of February 2025. For the fourth quarter of 2024, the company expects total revenues to be between $34 million and $36 million, projecting a significant improvement in net income or loss. Additionally, Chief Security Officer Roger Hale departed, with Patrick Ferriter and Robbin Liu assuming responsibility for security and compliance.
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