Agora (API) Q1 2025 earnings summary

Executive summary

• Achieved second consecutive quarter of GAAP profitability in Q1 2025, with net income of $0.4 million and a 1.2% net income margin, marking a turnaround from prior losses.

• Total Q1 revenue was $33.3 million, with growth rates reported as 12%, 3.6%, and 0.8% year over year depending on product mix and segment reporting.

• Active customer base grew 5% year over year for both Agora and Shengwang, with over 1,800 and nearly 2,000 active customers, respectively, and a combined total of 3,642 as of March 2025.

• Launched Conversational AI Engine and device kit for IoT in China in March, generating strong developer and customer engagement and record-high product inquiries.

• Recognized as a global leader in Real-Time Engagement technology, endorsed by major partners such as OpenAI and recommended for audio infrastructure capabilities.

Financial highlights

• Agora segment revenues reached $18.6 million in Q1, up 17.7% year over year; Shengwang revenues were $14.7 million, down 13.9% due to end-of-sale products.

• Gross profit was $22.6 million, with gross margin improving to 68% from 61.2% year over year and up from 66.6% in Q4 2024.

• Operating expenses dropped to $26.5 million in Q1, down from $32.6 million in Q2 2024, reflecting workforce restructuring and lower share-based compensation.

• R&D, sales & marketing, and G&A expenses all decreased year over year, with R&D down 22.7%, sales & marketing down 8.5%, and G&A down 25.6%.

• Operating cash flow was $17.6 million, a turnaround from negative $6.5 million last year, aided by $17.8 million in interest proceeds.

Outlook and guidance

• Q2 2025 revenue expected between $33 million and $35 million, representing up to 13.3% year-over-year growth (excluding low-margin products), with management reiterating commitment to full-year GAAP profitability.