Overview

• Conversational AI platform's Q1 revenue rose 13.5% yr/yr, driven by usage growth

• Q1 net income rose to $1.1 mln, sixth straight quarter of GAAP profitability

• Company repurchased $13.1 mln of shares under ongoing buyback program

Outlook

• Agora expects Q2 2026 revenue between $39.0 mln and $40.0 mln

• Company projects Q2 2026 year-over-year revenue growth of 13.7% to 16.6%

• Agora says outlook reflects current market and operational conditions, subject to change

Result Drivers

• SECTOR EXPANSION - Revenue growth driven by increased usage of real-time engagement services in live shopping, social and entertainment, and financial service sectors

• PRODUCT LAUNCHES - Launch of Agent Studio and new AI agent templates contributed to customer adoption and usage growth, per CEO Tony Zhao

• GROSS MARGIN PRESSURE - Gross margin declined due to product mix changes, with conversational AI products remaining at a sub-scale stage

Company press release: ID:nGNX31vZYp

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue		$37.75 mln
Q1 Earnings Per ADS		$0.01
Q1 Net Income		$1.11 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Agora Inc is $6.05, about 66.2% above its May 22 closing price of $3.64

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 40 three months ago

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