Agora Inc (NASDAQ:API), a pioneer and leader in real-time engagement technology, stock fell 3.42% (As on August 20, 11:16:09 AM UTC-4, Source: Google Finance) after the company misses the earnings expectations for the second quarter of FY 24. Active Customers of Agora is 1,672 as of June 30, 2024, an increase of 7.2% from 1,560 as of June 30, 2023 and of Shengwang 3,774 as of June 30, 2024, a decrease of 5.5% from 3,992 as of June 30, 2023. The company has reported non-GAAP net loss for the quarter of $6.0 million, compared to the non-GAAP net loss of $6.6 million in the second quarter of 2023. Gross profit was $21.2 million in the second quarter of 2024, a decrease of 1.4% from $21.5 million in the same period last year. Gross margin was 62.0% in the second quarter of 2024, a decrease of 1.3% from 63.3% in the same period last year, mainly due to product mix change. Loss from operations was $11.1 million in the second quarter of 2024, compared to $48.1 million in the same period last year, primarily due to the decrease of operating expenses from $38.1 million in the second quarter of 2023 to $32.6 million in the second quarter of 2024, as well as the decrease of impairment of goodwill from $31.9 million in the second quarter of 2023 to nil in the second quarter of 2024. Investment loss was $2.8 million in the second quarter of 2024, compared to $1.9 million in the same period last year, primarily due to the fair value change in equity investments.

API in the second quarter of FY 24 has reported the adjusted loss per share of 10 cents, missing the analysts’ estimates for the adjusted loss per share of 7 cents. The company had reported the adjusted revenue growth of 0.5 percent to $34.2 million in the second quarter of FY 24. Revenues of Agora were $15.6 million in the second quarter of 2024, an increase of 2.0% from $15.3 million in the same period last year, primarily due to our business expansion and usage growth in sectors such as live shopping. Revenues of Shengwang were RMB131.9 million ($18.6 million) in the second quarter of 2024, an increase of 0.3% from RMB131.5 million ($18.7 million) in the same period last year, primarily due to increase in revenues from certain sectors such as Internet of Things.