Agora Inc (API) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Agora, Inc. First Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I'd now like to hand the conference over to the IR Director, Ms. Fionna Chen. Please go ahead, ma'am.

美好的一天，謝謝你的支持。歡迎參加 Agora, Inc. 2023 年第一季度財務業績電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想將會議交給 IR 總監 Fionna Chen 女士。請繼續，女士。

Thank you, operator. Good morning and evening, everyone. Thank you for joining us for Agora, Inc.'s First Quarter 2023 Earnings Conference Call. Our earnings results press release, earnings presentation and an explanatory note on certain reporting and disclosure adjustments, SEC filings and a replay of today's call can be found on our IR website at investor.agora.io. Joining me today are Tony Zhao, Founder, Chairman and CEO; Jingbo Wang, our CFO.

謝謝你，運營商。大家早上好，晚上好。感謝您加入我們參加 Agora, Inc. 的 2023 年第一季度收益電話會議。我們的收益結果新聞稿、收益報告和關於某些報告和披露調整的解釋性說明、SEC 文件和今天電話會議的重播可以在我們的 IR 網站 investor.agora.io 上找到。今天加入我的是創始人、董事長兼首席執行官 Tony Zhao；我們的首席財務官王靜波。

Reconciliations between our GAAP and non-GAAP results can be found in our earnings press release. During this call, we will make forward-looking statements about our future financial performance and other future events and trends. These statements are only predictions that are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could affect our financial results and the performance of our business and which we discussed in detail in our filings with the SEC, including today's earnings press release and the risk factors and other information contained in the final prospectus relating to our initial public offering. Agora, Inc. [remains] no obligation to update any forward-looking statements we may make on today's call.

我們的 GAAP 和非 GAAP 結果之間的調節可以在我們的收益新聞稿中找到。在此次電話會議中，我們將就我們未來的財務業績以及其他未來事件和趨勢做出前瞻性陳述。這些陳述只是基於我們今天所相信的預測，實際結果可能存在重大差異。這些前瞻性陳述受風險、不確定性、假設和其他可能影響我們的財務業績和業務表現的因素的影響，我們在向美國證券交易委員會提交的文件中詳細討論了這些因素，包括今天的收益新聞稿和風險因素以及與我們的首次公開募股有關的最終招股說明書中包含的其他信息。 Agora, Inc. [仍然]沒有義務更新我們在今天的電話會議上可能做出的任何前瞻性陳述。

With that, let me turn it over to Tony. Hi, Tony.

有了這個，讓我把它交給托尼。嗨，托尼。

Thanks, Fionna, and welcome, everyone, to our earnings call. Before diving into our operational results for the quarter, I would first like to make a few remarks regarding recent changes in the organizational restructure of our company.

謝謝 Fionna，歡迎大家參加我們的財報電話會議。在深入探討我們本季度的運營業績之前，我首先想就我們公司最近的組織重組變化發表一些看法。

Since our inception 9 years ago, we have mostly operated under the Agora brand globally to better meet the requirements of our customers and compete more effectively in the unique market we serve. We will now operate 2 independent divisions under the same holding company. Our Agora division will focus on our business in the U.S. and international markets, and our Shengwang division will focus on our business in the China market. Agora and Shengwang will each be run by a local management team and adopt local standards and best practice. We have appointed Stanley Wei as Chief Operating Officer of Agora and Robbin Liu as Chief Operating Officer of Shengwang.

自 9 年前成立以來，我們主要在全球範圍內以 Agora 品牌運營，以更好地滿足客戶的需求，並在我們所服務的獨特市場中更有效地競爭。我們現在將在同一控股公司下運營 2 個獨立部門。我們的 Agora 部門將專注於我們在美國和國際市場的業務，而我們的聲網部門將專注於我們在中國市場的業務。 Agora 和聲網將各自由本地管理團隊運營，並採用本地標準和最佳實踐。我們已任命 Stanley Wei 為 Agora 的首席運營官，Robbin Liu 為聲網的首席運營官。

We believe this strategic reorganization will allow us to optimally focus our resources on the specific needs and the priorities of each business. Agora will focus on acceleration of growth and on gaining market share in the U.S. and international markets, leveraging our leading technology and competitive product offerings. Shengwang will focus on enhancing our quality of experience advantage and improving the ease of adoption of our products, further strengthening our competitive position in the China market. By empowering the local management team of each division, we will be able to respond more quickly to the needs of our customers and become more agile as new opportunities emerge. From this quarter onwards, we will report our revenue and operating metrics separately for Agora and Shengwang to help investors better understand the dynamics and our operational results in each of these markets.

我們相信，這次戰略重組將使我們能夠以最佳方式將資源集中在每個業務的特定需求和優先事項上。 Agora 將專注於加速增長，並利用我們領先的技術和有競爭力的產品在美國和國際市場上獲得市場份額。聲網將專注於提升我們的體驗質量優勢和提高我們產品的易用性，進一步加強我們在中國市場的競爭地位。通過授權每個部門的本地管理團隊，我們將能夠更快地響應客戶的需求，並在新機遇出現時變得更加敏捷。從本季度開始，我們將分別報告 Agora 和聲網的收入和運營指標，以幫助投資者更好地了解每個市場的動態和我們的運營結果。

Our revenue for the first quarter was $15.1 million for Agora, up 10% year-over-year; and $21.3 million for Shengwang, down 14% year-over-year. Agora's revenue growth was primarily due to business expansion and usage growth in U.S. and international markets. Shengwang's decrease in revenue was primarily due to the appreciation of U.S. dollar, our disposal of Easemob's customer engagement cloud business and decrease in usage from K12 academic tutoring customers. After adjusting for these factors, Shengwang's revenue would have increased by 3% compared to the same quarter last year. As of the end of this quarter, we have nearly 1,500 active customers for Agora and nearly 4,000 for Shengwang, an increase of 31% and 2%, respectively, compared to one year ago.

Agora 第一季度的收入為 1510 萬美元，同比增長 10%；聲網為 2130 萬美元，同比下降 14%。 Agora 的收入增長主要得益於美國和國際市場的業務擴張和使用量增長。聲網的收入減少主要是由於美元升值、我們出售 Easemob 的客戶參與雲業務以及 K12 學術輔導客戶的使用量減少。調整這些因素後，盛網的收入與去年同期相比增長了 3%。截至本季度末，聲網活躍客戶近1500人，聲網活躍客戶近4000人，較一年前分別增長31%和2%。

Now moving on to our product and technology updates. First, starting with Agora. The Flexible Classroom, our low-code aPaaS solution designed for building scalable and customizable online classrooms, has continued to gain momentum in the U.S. and the global market as the demand for online learning continue to grow. Recently, the Flexible Classroom was named a finalist by 2023 The EdTech Awards in the e-learning, blended, flipped solution or remote solution category. Previously, we mentioned our partnership with HTC to accelerate the adoption of real-time engagement in VR applications. In HTC's VIVE ecosystem, developers use our Video SDK to power real-time collaboration between end users within virtual environments. Recently, we were recognized as a Webby Awards honoree under the category of Metaverse, Immersive & Virtual Best Realtime Experience for how our technology is used in HTC's VIVE Sync VR ecosystem.

現在繼續我們的產品和技術更新。首先，從 Agora 開始。 Flexible Classroom 是我們的低代碼 aPaaS 解決方案，專為構建可擴展和可定制的在線教室而設計，隨著在線學習需求的持續增長，它在美國和全球市場繼續獲得發展勢頭。最近，靈活課堂入圍 2023 年 The EdTech Awards 電子學習、混合、翻轉解決方案或遠程解決方案類別的決賽。之前，我們提到了我們與 HTC 的合作夥伴關係，以加速 VR 應用程序中實時參與的採用。在 HTC 的 VIVE 生態系統中，開發人員使用我們的視頻 SDK 來支持虛擬環境中最終用戶之間的實時協作。最近，由於我們的技術在 HTC 的 VIVE Sync VR 生態系統中的應用，我們獲得了元宇宙、沉浸式和虛擬最佳實時體驗類別下的威比獎獲獎者。

To further increase the value of our premium and enterprise support package for our customers, we have added integrations with Okta and Datadog. The Okta integration enables customers to manage team members' access to Agora Console through Okta identity management tools. The Datadog integration with Agora Analytics enables customers to push analytics data, [current] usage, quality and performance directly to the Datadog platform for analysis and virtualization -- and visualization.

為了進一步增加我們為客戶提供的高級和企業支持包的價值，我們添加了與 Okta 和 Datadog 的集成。 Okta 集成使客戶能夠通過 Okta 身份管理工具管理團隊成員對 Agora 控制台的訪問。 Datadog 與 Agora Analytics 的集成使客戶能夠將分析數據、[當前] 使用情況、質量和性能直接推送到 Datadog 平台以進行分析和虛擬化——以及可視化。

Moving on to Shengwang. We recently upgraded our real-time karaoke product. When this solution was first launched in 2021, it could accommodate 2 users singing together at the same time. If a third user wanted to join, 1 of the 2 current users would have to give up the microphone. This limitation was mainly due to the technology challenge at the time of mixing multiple real-time soundtracks in a highly synchronous manner and deliver output to all users with low latency. With our latest version, up to 8 users can now sing together, which unlocks a wide range of new features for our customer's applications. For example, all users in the virtual karaoke room can now participate in a singing battle or take random turns singing part of songs together. And powered by our upgraded product, our customers can now replicate in-person karaoke experience within their application.

繼續前往盛旺。我們最近升級了我們的實時卡拉 OK 產品。該解決方案於 2021 年首次推出時，可同時容納 2 名用戶一起唱歌。如果第三個用戶想加入，則 2 個當前用戶中的 1 個將不得不放棄麥克風。這種限制主要是由於以高度同步的方式混合多個實時音軌並以低延遲向所有用戶提供輸出時的技術挑戰。使用我們的最新版本，現在最多可以有 8 個用戶一起唱歌，這為我們客戶的應用程序解鎖了廣泛的新功能。例如，虛擬卡拉OK廳中的所有用戶現在都可以參加歌唱大戰或隨機輪流一起演唱部分歌曲。在我們升級後的產品的支持下，我們的客戶現在可以在他們的應用程序中復制面對面的卡拉 OK 體驗。

Next, I would like to discuss the combination of generative AI and real-time engagement and enormous opportunity this combines -- this combination holds for the future. Since the end of last year, the world has been captivated by the latest advance in large language model and generative AI. People widely believe that generative AI, despite being in its early stage, will drive significant paradigm shifts in many industries, and real-time engagement is no exception. Generative AI can empower customers to dramatically enhance [end user] experience in their applications or create new use cases that were previously impossible.

接下來，我想討論生成式人工智能和實時參與的結合，以及這種結合的巨大機遇——這種結合適用於未來。自去年年底以來，全世界都被大型語言模型和生成人工智能的最新進展所吸引。人們普遍認為，儘管生成式人工智能還處於早期階段，但它將推動許多行業發生重大範式轉變，實時參與也不例外。生成式 AI 可以使客戶能夠顯著增強 [最終用戶] 在其應用程序中的體驗或創建以前不可能的新用例。

Let's look at some examples. The advent of powerful large language model has significantly improved the performance of chatbots in text format as can be seen in the growing popularity of ChatGPT and AI-powered search engines. However, this is only the beginning. As AI models continue to evolve and gain more powerful multimodal capabilities, they will become more adept at processing voice and video feeds and generating response in real time. Using IoT hardware as input/output devices, people will have an all-powerful, humanlike AI [body] that can provide information, carry out tasks or engage in casual chats all through voice and video.

讓我們看一些例子。強大的大型語言模型的出現顯著提高了文本格式聊天機器人的性能，這可以從 ChatGPT 和人工智能搜索引擎的日益普及中看出。然而，這僅僅是開始。隨著 AI 模型不斷發展並獲得更強大的多模式功能，它們將更加擅長處理語音和視頻饋送並實時生成響應。使用物聯網硬件作為輸入/輸出設備，人們將擁有一個全能的、類人的 AI [身體]，可以通過語音和視頻提供信息、執行任務或進行隨意聊天。

Education is another industry where people have strong hopes that generative AI can help revolutionize experiences. By analyzing student data, AI-powered tutors can generate personalized learning plans and deliver learning content in an interactive manner with everything tailored to best match a student's learning progress, pattern and real-time feedback. In addition, AI tutoring can also provide affordable and tailored education opportunity to those who previously did not have access to quality education.

教育是另一個人們強烈希望生成式 AI 可以幫助徹底改變體驗的行業。通過分析學生數據，人工智能導師可以生成個性化的學習計劃，並以互動的方式提供學習內容，一切都經過量身定制，以最好地匹配學生的學習進度、模式和實時反饋。此外，人工智能輔導還可以為那些以前無法獲得優質教育的人提供負擔得起的量身定制的教育機會。

There is also a huge potential for generative AI to disrupt the social, entertainment and gaming industries. A virtual matchmaker can do the job of making initial introduction and facilitating conversations just as well as a real person in the dating application. If you need to leave an interactive session for a short while or being disrupted by network connection, your digital twin can take over and continue the conversation. When you come back, a summary can be immediately available for you to catch up. For online social gaming, it will become almost impossible to tell if your teammates or opponents are real players or AI-controlled nonplayer characters.

生成式 AI 還具有顛覆社交、娛樂和遊戲行業的巨大潛力。虛擬媒人可以像約會應用程序中的真人一樣完成初步介紹和促進對話的工作。如果您需要暫時離開交互式會話或被網絡連接打斷，您的數字雙胞胎可以接管並繼續對話。當您回來時，可以立即獲得摘要供您了解。對於在線社交遊戲，幾乎不可能分辨你的隊友或對手是真實玩家還是 AI 控制的非玩家角色。

Looking at examples above and many others, we see something in common. Generative AI can significantly expand the scope and opportunity of real-time engagement. Previously, real-time engagement largely took place among groups of people. With the help of large language model, RTE can now occur between -- among people, digital twins of people and fully virtual, AI-based characters, opening the door to a much broader range of possible use cases. In addition, with greatly enhanced user experience, RTE will become more intelligent, immersive and enjoyable. This trend will likely increase the overall usage of real-time engagement solutions multiple times and bring more business opportunities. We have been working closely with our customers to create pilot applications in certain verticals, and we will continue to monitor the latest developments while assisting our customers in utilizing generative AI in their real-time engagement use cases.

看看上面的例子和許多其他例子，我們看到了一些共同點。生成式人工智能可以顯著擴大實時參與的範圍和機會。以前，實時參與主要發生在人群之間。在大型語言模型的幫助下，RTE 現在可以發生在人與人之間，人與人之間的數字雙胞胎和完全虛擬的、基於 AI 的角色之間，為更廣泛的可能用例打開了大門。此外，隨著用戶體驗的大幅提升，RTE將變得更加智能、沉浸和愉悅。這種趨勢可能會成倍增加實時參與解決方案的整體使用率，並帶來更多商機。我們一直與客戶密切合作，在某些垂直領域創建試點應用程序，我們將繼續監控最新進展，同時協助我們的客戶在他們的實時參與用例中利用生成人工智能。

Before concluding my prepared remarks, I want to thank both Agora and Shengwang teams for their hard work during this transitional period. I believe this strategic reorganization will sharpen our ability and strengthen our position in both the global and China markets and most importantly, allow us to serve developers and customers in a more agile and efficient way. With that, let me turn things over to Jingbo who will review our financial results.

在結束我準備好的發言之前，我想感謝聲網和聲網團隊在這個過渡時期的辛勤工作。我相信這次戰略重組將提高我們的能力，加強我們在全球和中國市場的地位，最重要的是，讓我們能夠以更敏捷、更高效的方式為開發者和客戶提供服務。有了這個，讓我把事情交給 Jingbo，他將審查我們的財務結果。

Thank you, Tony. Hello, everyone. Let me start by first discussing certain reporting and disclosure adjustments in our financial results. And I will review financial results for the first quarter and outlook for the second quarter of 2023.

謝謝你，托尼。大家好。讓我首先討論我們財務業績中的某些報告和披露調整。我將回顧第一季度的財務業績和 2023 年第二季度的展望。

Following our recent reorganization, Agora, Inc. is now the holding company of 2 independent businesses, Agora and Shengwang, which will operate under their own unique brands and distinct legal entities and will be run by separate local management teams. Beginning from the first quarter of 2023, we will report revenues separately for Agora and Shengwang based on the legal entities with which customers enter into contracts. This differs from our previous practice, which was to separately report revenues for China and U.S. and international based on geographies of usage. For example, certain Chinese customers offer application that primarily target end users outside China. Such revenues were previously included under U.S. and international. We now include such revenues under Shengwang to reflect in terms of contractual relationships.

在我們最近的重組之後，Agora, Inc. 現在是 2 家獨立企業的控股公司，Agora 和聲網，它們將以自己獨特的品牌和不同的法人實體運營，並將由獨立的本地管理團隊運營。從 2023 年第一季度開始，我們將根據與客戶簽訂合同的法律實體分別報告 Agora 和聲網的收入。這與我們之前的做法不同，後者是根據使用地區分別報告中國、美國和國際的收入。例如，某些中國客戶提供的應用程序主要針對中國境外的最終用戶。此類收入以前包括在美國和國際收入中。我們現在將此類收入計入盛網，以反映在合同關係方面。

For the same reason, we will report number of active customers and dollar-based net retention rate, or DBNRR, separately for Agora and Shengwang, but definition of active customers remain unchanged. The calculation methodology of retention rate is same as expansion rate, which is the term we previously used. As almost all revenues generated from Agora customers are denominated in U.S. dollar and almost all revenues generated from Shengwang customers are denominated in RMB, we calculate DBNRR in U.S. dollar for Agora and in renminbi for Shengwang instead of converting everything into U.S. dollars. Revenues for Easemob's chat API business will also be included in calculating active customers and retention rate for Shengwang business. A detailed explanatory note, including a [recapped] historical results reflecting these adjustments can be found on Investor Relations website.

出於同樣的原因，我們將分別報告 Agora 和聲網的活躍客戶數量和基於美元的淨保留率或 DBNRR，但活躍客戶的定義保持不變。保留率的計算方法與擴展率相同，這是我們之前使用的術語。由於 Agora 客戶產生的幾乎所有收入均以美元計價，而聲網客戶產生的幾乎所有收入均以人民幣計價，因此我們計算聲網的美元 DBNRR 和聲網的人民幣 DBNRR，而不是將所有內容轉換為美元。 Easemob 聊天 API 業務的收入也將計入盛網業務的活躍客戶和留存率。詳細的解釋性說明，包括反映這些調整的 [重述] 歷史結果，可在投資者關係網站上找到。

Moving on to our financial results for Q1. Agora revenues were $15.1 million in the first quarter of 2023, an increase of 10.2% year-over-year and a decrease of 4.4% quarter-over-quarter. The year-over-year increase was primarily due to our business expansion and usage growth, and quarter-over-quarter decrease was primarily due to challenging macroeconomic environment. As we mentioned in previous earnings calls, interest rate hikes, worldwide inflationary pressure and tightening of inter-capital funding starting from the second half of last year [had notably] impacted some of our customers' business and financial conditions and their ability to raise funding, which led to reduced usage of our products and increased pricing sensitivity.

繼續我們第一季度的財務業績。 Agora 2023 年第一季度的收入為 1510 萬美元，同比增長 10.2%，環比下降 4.4%。同比增長主要是由於我們的業務擴張和使用量增長，環比下降主要是由於充滿挑戰的宏觀經濟環境。正如我們在之前的財報電話會議中提到的那樣，從去年下半年開始加息、全球通脹壓力和資本間融資收緊 [顯著] 影響了我們一些客戶的業務和財務狀況以及他們籌集資金的能力，這導致我們產品的使用減少並提高了定價敏感性。

Shengwang revenues were $21.3 million in the first quarter of 2023, a decrease of 14.5% year-over-year and a decrease of 12.3% quarter-over-quarter. The year-over-year decrease was primarily due to the disposal of Easemob's customer engagement cloud business, a decrease in usage from K12 academic tutoring sector following regulatory change and the depreciation of RMB against U.S. dollar. If we exclude these factors, revenue denominated in RMB would have increased 2.7% year-over-year. The quarter-over-quarter decrease was primarily due to the disposal of customer engagement cloud business, lower usage during Chinese New Year holiday for Internet customers and longer-than-expected sales cycle for traditional enterprise customers. Dollar-based net retention rate for Agora is 130%. Dollar-based net retention rate for Shengwang is 92%, excluding revenues from the K12 academic tutoring sector.

2023年第一季度盛網營收為2130萬美元，同比下降14.5%，環比下降12.3%。同比下降的主要原因是 Easemob 的客戶參與雲業務的出售、監管變化後 K12 學術輔導部門的使用量減少以及人民幣兌美元貶值。如果我們排除這些因素，以人民幣計價的收入將同比增長 2.7%。環比下降主要是由於Customer Engagement Cloud業務的處置、互聯網客戶春節假期使用率下降以及傳統企業客戶的銷售週期長於預期。 Agora 的美元淨留存率為 130%。盛網以美元為基礎的淨保留率為 92%，不包括來自 K12 學術輔導部門的收入。

Moving on to cost and expenses. For my following comments, I will focus on non-GAAP results, which exclude share-based compensation expenses, acquisition-related expenses, financing-related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill. Non-GAAP gross margin for the first quarter was 63.3%, which was 0.3% higher than Q1 2022 mainly due to the disposal of customer engagement cloud business, which had lower gross margin. As we mentioned in our previous earnings calls, we restructured and reduced our global workforce in Q4 2022.

繼續成本和費用。對於我的以下評論，我將重點關注非 GAAP 結果，其中不包括基於股份的補償費用、收購相關費用、融資相關費用、收購無形資產的攤銷費用、與收購無形資產相關的所得稅和商譽減值.第一季度的非美國通用會計準則毛利率為 63.3%，比 2022 年第一季度高 0.3 個百分點，主要是由於出售了毛利率較低的客戶參與雲業務。正如我們在之前的財報電話會議中提到的，我們在 2022 年第四季度重組並裁減了全球員工隊伍。

As a result, non-GAAP R&D expenses were $17.4 million in Q1, a decrease of 31.2% year-over-year. Non-GAAP R&D expenses represented 47.8% of total revenues in the quarter compared to 65.6% in Q1 last year. Non-GAAP sales and marketing expenses were $8.5 million in Q1, a decrease of 26.3% year-over-year. Sales and marketing expenses represented [23.4%] of total revenues in the quarter compared to 30% in Q1 last year. Non-GAAP G&A expenses were $6.9 million in Q1, a decrease of 7% year-over-year. G&A expenses represented 18.8% of total revenues in the quarter compared to 19.1% in Q1 last year.

因此，第一季度非美國通用會計準則研發費用為 1740 萬美元，同比下降 31.2%。非 GAAP 研發費用佔本季度總收入的 47.8%，而去年第一季度為 65.6%。第一季度非 GAAP 銷售和營銷費用為 850 萬美元，同比下降 26.3%。銷售和營銷費用佔本季度總收入的 [23.4%]，而去年第一季度為 30%。第一季度非 GAAP G&A 費用為 690 萬美元，同比下降 7%。 G&A 費用佔本季度總收入的 18.8%，而去年第一季度為 19.1%。

Non-GAAP operating loss was $9.2 million, translating to a 25.4% non-GAAP operating loss margin for the quarter compared to an operating loss margin of 49% in Q1 last year. Adjusted EBITDA was negative $6.4 million, translating to a 17.7% adjusted EBITDA loss margin first quarter, significantly lower than the gross margin of 42.6% in Q1 last year. Investment loss was $4.4 million in Q1 primarily due to the fair value change in equity investments of $2.9 million, credit loss in debt investments of $1.2 million as well as disposal loss of $0.3 million.

非美國通用會計準則營業虧損為 920 萬美元，相當於本季度非美國通用會計準則營業虧損率為 25.4%，而去年第一季度的營業虧損率為 49%。調整後的 EBITDA 為負 640 萬美元，相當於第一季度調整後的 EBITDA 虧損率為 17.7%，遠低於去年第一季度 42.6% 的毛利率。第一季度的投資損失為 440 萬美元，主要是由於股權投資的公允價值變動 290 萬美元、債務投資的信用損失 120 萬美元以及處置損失 30 萬美元。

Now turning to cash flow. Operating cash flow was negative $8.9 million in Q1 compared to negative $15.9 million last year. Free cash flow was negative $9.1 million compared to negative $17 million last year.

現在轉向現金流。第一季度的經營現金流為負 890 萬美元，而去年同期為負 1590 萬美元。自由現金流為負 910 萬美元，而去年為負 1700 萬美元。

Moving on to balance sheet. We ended Q1 with $416.5 million in cash, cash equivalents, bank deposits and financial products issued by banks. Net cash flow -- net cash outflow in the quarter was mainly due to free cash flow of negative $9.1 million, share repurchase of $19.4 million and cash paid in relation to headquarters project of $5.1 million.

轉到資產負債表。我們以 4.165 億美元的現金、現金等價物、銀行存款和銀行發行的金融產品結束了第一季度。淨現金流——本季度淨現金流出主要是由於自由現金流為負 910 萬美元、股份回購 1940 萬美元以及與總部項目相關的現金支付 510 萬美元。

During Q1, we repurchased approximately 21.6 million of our Class A ordinary shares, equivalent to 5.4 million ADSs, for $19.5 million, representing 10% of our $200 million share repurchase program. As of the end of Q1, we had, in aggregate, repurchased approximately 57.4 million of our Class A ordinary shares, equivalent to 14.4 million ADSs, for $61.3 million, representing 31% of our share repurchase program.

第一季度，我們以 1950 萬美元回購了約 2160 萬股 A 類普通股，相當於 540 萬股美國存託憑證，占我們 2 億美元股票回購計劃的 10%。截至第一季度末，我們總共以 6130 萬美元回購了約 5740 萬股 A 類普通股，相當於 1440 萬股美國存託憑證，占我們股票回購計劃的 31%。

Now turning to guidance. Recently, we saw increased uncertainties in macroeconomic conditions, such as foreign exchange rate, inflation and interest rates, which may have greater-than-expected impact on our customers' business and in turn, have more uncertainty to our revenues. Therefore, starting this quarter, we'll be providing quarterly revenue guidance instead of full year guidance. For the second quarter of 2023, we currently expect total revenue to be in the range of $34 million and $37 million. This forecast reflects our current and preliminary views on the market and operational conditions, which are subject to change.

現在轉向指導。最近，我們看到宏觀經濟狀況的不確定性增加，例如匯率、通貨膨脹和利率，這可能對我們客戶的業務產生超出預期的影響，進而對我們的收入帶來更多不確定性。因此，從本季度開始，我們將提供季度收入指導，而不是全年指導。對於 2023 年第二季度，我們目前預計總收入將在 3400 萬美元至 3700 萬美元之間。該預測反映了我們對市場和運營狀況的當前和初步看法，這些看法可能會發生變化。

In closing, I want to express my deepest appreciation to both Agora and Shengwang teams for their hard work during this challenging period and to our investors for their trust in our vision and our team. Thank you, everyone, for attending the call today. Let's open it up for questions.

最後，我想對 Agora 和聲網團隊在這個充滿挑戰的時期的辛勤工作，以及對我們的願景和團隊的信任，向我們的投資者表示最深切的感謝。謝謝大家今天參加電話會議。讓我們打開它來提問。

(Operator Instructions) Our first question comes from the line of Yang Liu from Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的楊柳。

Two questions from my side. The first one is about the outlook. The number implies a largely flattish or slightly sequential decline in second quarter. Could management share more about the outlook for Shengwang and Agora differently for the second quarter? Do you see further diverging of the growth trend or a similar trend in the next few quarters for the 2 entities? And my second question is regarding the AI impact to the company. Tony mentioned a lot in terms of the product and the customer demand or use case driven by the new AI [GC] technology. But I'm wondering if there is any potential cost savings room from the new technology.

我這邊的兩個問題。第一個是關於前景。該數字意味著第二季度基本持平或略有環比下降。管理層能否分享更多關於聲網和聲網聲網第二季度不同前景的信息？您是否認為這兩個實體在未來幾個季度的增長趨勢或類似趨勢會進一步分化？我的第二個問題是關於人工智能對公司的影響。 Tony 在產品和客戶需求或新 AI [GC] 技術驅動的用例方面提到了很多。但我想知道新技術是否有任何潛在的成本節約空間。

All right. I'll talk about -- discuss the demand from both markets. On Shengwang side, we can broadly [push on] customer into 3 segments. One is domestic digital native and another is domestic digital transformation and going overseas customers. On digital native customers, recently, demand remained soft primarily due to macroeconomic challenges and regulation. However, on this segment, as I mentioned earlier, we also see large opportunities on generative AI-powered use cases. That would take some time. On digital transformation side, recently, we saw longer sales cycle. But there is clearly a lot of unmet demand from traditional enterprises. We expect this segment to generate sustained growth for us. On going overseas customers, the overall growth momentum has been strong.

好的。我將談論 - 討論兩個市場的需求。在聲網這邊，我們可以將客戶大致[推]到3個細分市場。一個是國內數字原生，一個是國內數字化轉型和出海客戶。最近，對數字原生客戶的需求仍然疲軟，這主要是由於宏觀經濟挑戰和監管。然而，正如我之前提到的，在這一領域，我們也看到了生成人工智能用例的巨大機會。那需要一些時間。在數字化轉型方面，最近，我們看到了更長的銷售週期。但傳統企業顯然還有很多未被滿足的需求。我們預計該細分市場將為我們帶來持續增長。出海客戶方面，整體增長勢頭強勁。

On Agora side, we see overall positive demand momentum in more developed market, especially on the following verticals: live streaming e-commerce, [Twitter and friends] economy, sports live streaming, future of work. For emerging markets, we see pressure on our customers due to macroeconomic challenges and market competition, such as in South Asia and Southeast Asia. That's from the outlook of the demand side.

在 Agora 方面，我們看到更發達市場的整體需求勢頭良好，尤其是在以下垂直領域：直播電子商務、[Twitter 和朋友] 經濟、體育直播、未來工作。對於新興市場，我們看到客戶因宏觀經濟挑戰和市場競爭而面臨壓力，例如南亞和東南亞。這是從需求端的前景來看。

And generative AI side, we actually have invested in this area for quite some time to help improve audio/video quality. And as I mentioned, large language model can actually help create more use cases in many verticals. But if your question is around reduced cost, I don't think it's going to hugely help us to reduce cost. But in terms of disrupting like many business models, like in education, AI-powered tutor can be much cheaper than a real tutor, or a virtual celebrity or similar can also be much cheaper, or virtual matchmaker the same sense or even in social space. As you can see, our popular character who's busy talking to people in one social platform can be also AI-powered person to reduce the platform's cost to maintain and pay a real person who's active on that platform. I think on those, it can hugely disrupt their business.

在生成人工智能方面，我們實際上已經在這個領域投入了相當長的時間，以幫助提高音頻/視頻質量。正如我提到的，大型語言模型實際上可以幫助在許多垂直領域創建更多用例。但如果你的問題是關於降低成本，我認為它不會極大地幫助我們降低成本。但就像許多商業模式的顛覆性而言，比如在教育領域，AI 驅動的導師可以比真正的導師便宜得多，或者虛擬名人或類似的東西也可以便宜得多，或者虛擬媒人同樣意義甚至在社交空間.正如你所看到的，我們在一個社交平台上忙於與人交談的流行角色也可以是 AI 驅動的人，以降低平台的維護成本，並支付給活躍在該平台上的真人。我認為在這些方面，它會極大地擾亂他們的業務。

Our next question comes from the line of Daley Li from Bank of America Securities.

我們的下一個問題來自美國銀行證券公司的 Daley Li。

I have one question regarding our international -- the Agora business. For this quarter, it's delivered quite solid growth. What's the key drivers for our growth, for example, regarding the volume and ASP? And what's the outlook for the volume and ASP going forward?

我有一個關於我們的國際——集市業務的問題。本季度，它實現了相當穩健的增長。我們增長的主要驅動力是什麼，例如，關於銷量和平均售價？未來的銷量和平均售價前景如何？

As we explained in previous earnings calls, so the market in China and the market in the U.S. and international markets are at different stage of development in terms of adopting the RTE technology. So China market is comparatively more mature. So in the past [18], 24 months, we certainly see U.S. market catching up quite rapidly. For example, in live streaming e-commerce use case, that was already popular in China 2 years ago and probably even earlier. But that's really just taken off in the past 12, 18 months in the U.S., and that has created a lot of new demand for technology.

正如我們在之前的財報電話會議中所解釋的那樣，在採用 RTE 技術方面，中國市場與美國市場和國際市場處於不同的發展階段。所以中國市場相對比較成熟。所以在過去 [18] 的 24 個月裡，我們當然看到美國市場正在迅速趕上。例如，在直播電子商務用例中，它在 2 年前甚至可能更早的時候就已經在中國流行。但在過去的 12、18 個月裡，這在美國才剛剛起飛，這對技術產生了許多新的需求。

Also, we have been expanding into more geographic regions, South Asia, Middle East and even South America. So that [trend is] stronger, [cause] momentum on the Agora side. And looking forward, as Tony just explained, in China, we do see more kind of macro challenges, overall macroeconomic environment, and also regulation in terms of the more traditional enterprise customers in China. We also see more budget constraints. So looking at the next few quarters, we are also more optimistic in terms of demand for the Agora side.

此外，我們一直在擴展到更多的地理區域，南亞、中東甚至南美。因此 [趨勢] 更強，[導致] Agora 方面的勢頭。展望未來，正如托尼剛才解釋的那樣，在中國，我們確實看到了更多的宏觀挑戰、整體宏觀經濟環境，以及對中國更傳統的企業客戶的監管。我們還看到更多的預算限制。所以看未來幾個季度，我們對於聲網端的需求方面也是比較樂觀的。

Our next question comes from the line of [Ethan Zhang] from Nomura.

我們的下一個問題來自野村的[Ethan Zhang]。

This is Bing Duan from Nomura. I have one question regarding the China market. As we noted that there are a few changes in the competition landscape, such as Ali Cloud's plan of spinoff and the recent price cuts from the large cloud companies like Alibaba and also some Chinese telecom operators. So how do we see this impact our Shengwang business in China, such as the ASP and margins, and also about our future market share in China?

我是野村的段冰。我有一個關於中國市場的問題。正如我們所注意到的，競爭格局發生了一些變化，例如阿里雲的分拆計劃以及阿里巴巴等大型雲公司以及一些中國電信運營商最近的降價。那麼我們如何看待這對我們在中國的聲網業務的影響，例如平均售價和利潤率，以及我們未來在中國的市場份額？

First of all, the public cloud price adjustment recently does not really related to us and giving pressure to us. However, in China, as I mentioned earlier, the overall competition has remained strong for a long time, and the demand is actually, especially for domestic native part, is actually soft. With this situation, we do proactively enhance our competitive edge. And sometimes, we reduce our pricing on certain areas to increase competitive pressure and try to gain more market share. For major public cloud previously also rolling out similar service in RTE sector, [honestly], there's no one being left. Everyone already released some similar products already. However, over the course of past like 2, 3 years, many of them have mostly exited the business. They either stopped really selling that product or some already started partnership with us and [value-added] our product on their offerings. Thank you.

首先，最近公有云的調價，跟我們沒有關係，給我們壓力。但是在中國，正如我前面提到的，整體競爭一直很激烈，需求實際上是疲軟的，尤其是國內本土的部分。在這種情況下，我們確實積極地增強了我們的競爭優勢。有時，我們會降低某些領域的定價以增加競爭壓力並試圖獲得更多的市場份額。對於之前也在 RTE 領域推出類似服務的主要公共雲，[老實說]，沒有人留下。每個人都已經發布了一些類似的產品。然而，在過去的2、3年裡，他們中的許多人大多退出了這個行業。他們要么停止真正銷售該產品，要么一些已經開始與我們合作並在他們的產品中[增值]我們的產品。謝謝。

(Operator Instructions) I am showing no further questions. I will now turn the conference back to Fionna for closing remarks.

（操作員說明）我沒有進一步提問。我現在將會議轉回 Fionna 作閉幕詞。

Thank you, operator. Thank you, everybody, for joining our call today. Again, if there are any further questions, feel free to contact us. And also, the presentation and the remarks of this call will be posted on our website. Thank you, everybody. Thank you.

謝謝你，運營商。謝謝大家今天加入我們的電話會議。同樣，如果還有任何其他問題，請隨時與我們聯繫。此外，本次電話會議的演示文稿和評論將發佈在我們的網站上。謝謝大家。謝謝。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。

Thank you. Buh-bye.

謝謝。再見。

Bye.

再見。