Agora, Inc. (API) Q3 2025 Earnings Call Transcript
Total Revenue $35.4 million, up 12% year-over-year. The increase is attributed to double-digit organic growth and successful market penetration in verticals such as live shopping.
Agora Revenue $18.2 million, up 15.9% year-over-year and flat quarter-over-quarter. The growth reflects successful market penetration and growing adoption in verticals such as live shopping.
Shengwang Revenue RMB 122.4 million, up 8.4% year-over-year and 6% sequentially. The growth is driven by continued business expansion and adoption in key verticals such as social, entertainment, and IoT.
Gross Margin 66%, slightly decreased by 0.7% year-over-year and 0.8% sequentially. The slight decline is not elaborated upon in the transcript.
R&D Expenses $13.8 million, decreased 52.8% year-over-year. R&D expenses represented 39.1% of total revenues in the quarter compared to 92.7% in Q3 last year, reflecting cost optimization.
Sales and Marketing Expenses $6.5 million, decreased 5.6% year-over-year. These expenses represented 18.3% of total revenues in the quarter compared to 21.7% in Q3 last year, indicating improved efficiency.
G&A Expenses $5 million, decreased 48.4% year-over-year. G&A expenses represented 14.1% of total revenue in the quarter compared to 30.8% in Q3 last year, showing significant cost reduction.
Net Income $2.7 million, representing a 7.8% net income margin. This marks a significant improvement from last year and the fourth consecutive quarter of GAAP profitability.
Operating Cash Flow $0.7 million, compared to negative $4.6 million last year. This improvement reflects better cash management and operational efficiency.
Cash and Cash Equivalents $374.3 million at the end of Q3. The net cash outflow in the quarter was mainly due to a share repurchase of $4.8 million.
Get Free Real-Time Notifications for Any Stock
Analyst Views on API
About API
About the author
Agora Partners with Sentino to Launch AI Companion Platform
- Strategic Partnership: Agora has partnered with Sentino to launch an AI Companion Platform aimed at helping AI brands and device makers build long-term emotionally engaging AI companions, transitioning AI from simple chat to daily companionship.
- Core Features: The platform includes four core features such as automatically generated inner thoughts, AI Diary, Diary Illustration, and Music Diary, designed to enhance user engagement through emotionally driven interactions, thereby increasing user retention.
- Market Impact: By reducing complexity and speeding up time to market, the collaboration between Agora and Sentino not only enhances the emotional depth of AI agents but also provides developers with a scalable ecosystem to quickly expand features for brands.
- Future Vision: Together, Agora and Sentino are committed to reshaping the future of Physical AI, ensuring it is not only intelligent but also leaves a lasting impression on users, fulfilling the demand for emotional connections in human-centric AI.
Agora Partners with Sentino to Launch AI Companion Platform Enhancing User Engagement
- Strategic Partnership: Agora has formed a strategic partnership with Sentino to launch an AI companion platform aimed at enhancing long-term user engagement by combining emotional depth with real-time conversation, shifting AI from simple Q&A to emotional companionship.
- Core Features: The platform includes four core features such as automatically generated inner thoughts, AI diary, diary illustrations, and music diary, designed to strengthen emotional connections between users and AI by remembering shared moments and expressing emotions, thereby increasing user return rates.
- Market Applications: The platform supports various Physical AI applications, including AI companions, education, and brand avatars, enabling brands to quickly expand features, reduce complexity, and accelerate time to market, addressing the growing demand for emotional AI in the market.
- Human-Centric AI Vision: Sentino's CEO Chris Chen emphasizes the commitment to transforming static characters into living assets, enabling IP holders to move beyond simple interactions and build sustainable emotional economies, further driving user loyalty and long-term value growth.
