Agora Inc (API) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by, and welcome to Agora Inc. third-quarter 2023 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. The company's earnings results press release earnings presentations, SEC filings and a replay of today's call can be found on the IR website at investor.agora.io.

美好的一天，感謝您的耐心等待，歡迎參加 Agora Inc. 2023 年第三季財務業績電話會議。 （操作員指示）請注意，今天的會議正在錄製中。該公司的獲利結果新聞稿、獲利演示、美國證券交易委員會 (SEC) 文件和今天電話會議的重播可在投資者關係網站 Investor.agora.io 上找到。

Joining me today are Tony Zhao, our Founder, Chairman, and CEO; Jingbo Wang, the company's CFO. Reconciliations between the company's GAAP and non-GAAP results can be found in its earnings press release. During this call, the company will make forward-looking statements about its future financial performance and other future events and trends.

今天加入我的是我們的創辦人、董事長兼執行長 Tony Zhao；王靜波，該公司財務長。該公司的 GAAP 和非 GAAP 業績之間的調整可以在其收益新聞稿中找到。在本次電話會議中，該公司將對其未來財務表現以及其他未來事件和趨勢做出前瞻性陳述。

These statements are only predictions that are based on the company's belief today, and actual results may differ materially. These forward-looking statements are subject to risk, uncertainties, assumptions and other factors that could affect the company's financial results and its performance of its business and which companies discussed in details in its filings and SEC, including today's earnings press release and the risk factors of other information is contained in the final prospectus relating to its initial public offering.

這些陳述只是基於公司目前信念的預測，實際結果可能有重大差異。這些前瞻性陳述受到風險、不確定性、假設和其他因素的影響，這些因素可能會影響公司的財務表現及其業務表現，並且公司在其文件和SEC 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其他資訊包含在與其首次公開發行相關的最終招股說明書中。

Agora Inc. remained no obligation to update any forward-looking statement the company's may take on today's call. With that, let me turn it over to Tony. Hi, Tony.

Agora Inc. 仍然沒有義務更新該公司在今天的電話會議上可能做出的任何前瞻性聲明。那麼，讓我把它交給東尼。嗨，托尼。

Thanks, operator, and welcome, everyone to our earnings call. In the third quarter, our revenue was $15.3 million for Agora, flat compared to last quarter. The RMB141 million for Shengwang, an increase of 7.4% quarter-over-quarter. As of the end of this quarter, we have more than 1,600 active customers for Agora and more than 4,000 for Shengwang, an increase of 26% and 6% respectively, compared to one year ago.

謝謝業者，歡迎大家參加我們的財報電話會議。第三季度，Agora 的營收為 1,530 萬美元，與上季持平。聲網1.41億元，季增7.4%。截至本季末，聲網活躍客戶超過 1,600 家，聲網活躍客戶超過 4,000 家，較一年前分別成長 26% 及 6%。

Now moving on to our business product and technology updates for the quarter. Let's start with Agora. We recently announced the general availability of video based solution to power live shopping experiences. In recent years, live shopping has disrupted and transformed the entire e-commerce market in China. We believe that the US and other developed markets will soon catch up and embrace live shopping as the next big trend.

現在繼續我們本季的業務產品和技術更新。讓我們從聲網開始。我們最近宣布推出基於視訊的解決方案，以增強即時購物體驗。近年來，直播購物顛覆並改變了中國整個電商市場。我們相信，美國和其他已開發市場將很快迎頭趕上，並將直播購物視為下一個大趨勢。

According to McKinsey, live shopping could account for 20% of our e-commerce sales by 2026 and the US live shopping market is estimated to be worth $35 billion by 2024. While also proud to mention that our growth was highlighted as a leading vendor in Gartner's recent Market Guide for Live Commerce in Retail.

根據麥肯錫預測，到 2026 年，直播購物將占我們電子商務銷售額的 20%，到 2024 年，美國直播購物市場預計價值 350 億美元。Gartner 最近發布的零售業即時商務市場指南。

with Agora, brands, marketplace, and platforms can now seize the live shopping opportunity with ease. For example, we recently helped CommentSold the leading fashion live shopping platform for retailers, to introduce a new functionality that allows sellers to provide external participants into their show simply by sending them a link or QR code.

有了聲音網，品牌、商城、平台都可以輕鬆抓住直播購物機會。例如，我們最近幫助領先的零售商時尚直播購物平台 CommentSold 引入了一項新功能，允許賣家只需向外部參與者發送連結或二維碼即可進入他們的展會。

Sellers can easily add professionally hosts, celebrates, influencers or VIP customers to join their live shopping session via video to provide more engaging content and boost conversion. This quarter, we also partnered with the Sandbox, a leading decentralized gaming virtual world to promote real-time engagement and social interactions within the metaverse through voice, video and chat.

賣家可以輕鬆添加專業主持人、慶祝者、影響者或 VIP 客戶，透過影片加入他們的即時購物會話，以提供更具吸引力的內容並提高轉換率。本季度，我們還與領先的去中心化遊戲虛擬世界 Sandbox 合作，透過語音、視訊和聊天促進元宇宙中的即時參與和社交互動。

The Sandbox chose Agora because of our comprehensive product stack, which can simulate can seamlessly integrate 3D spatial audio, persistent tax chat, and interactive live-streaming functionalities at scale. As a result, players' ability to connect, collaborate and form meaningful communities in the metaverse is significantly enhanced.

Sandbox 選擇 Agora 是因為我們擁有全面的產品堆棧，可以大規模模擬無縫整合 3D 空間音訊、持久稅務聊天和互動式直播功能。因此，玩家在虛擬宇宙中聯繫、協作和形成有意義的社群的能力顯著增強。

Moving on to Shengwang. We recently launched our AIGC RTE SDK, a real-time engagement solution, connecting human users with large language models. So far, people have largely interact with AI models in text format. Only recently, companies such as OpenAI have beta launch their direct voice conversation between human users and AI models.

繼續前往聖王。我們最近推出了 AIGC RTE SDK，這是一種即時參與解決方案，將人類用戶與大型語言模型連接起來。到目前為止，人們主要以文字格式與人工智慧模型進行互動。直到最近，OpenAI 等公司才推出了人類用戶和人工智慧模型之間的直接語音對話測試版。

However, there is usually a significant delay of six to seven seconds or more to receive a simple voice response. Our solution has been designed to tackle the latency issue so that the users can hear the response within two seconds. This near real-time response is close to the natural pause expected in human-to-human conversations and therefore provide much more engaging and your real experience for users.

然而，接收簡單的語音響應通常需要六到七秒或更長時間的顯著延遲。我們的解決方案旨在解決延遲問題，以便用戶可以在兩秒內聽到回應。這種近乎即時的回應接近人與人對話中預期的自然停頓，因此為使用者提供了更具吸引力和真實的體驗。

Our AIGC RTE SDK also comes with quick flexibility. Developers can easily create their application with the freedom to choose from a wide range of large language models, speech to text engines and synthetic voices to fit their unique use case. A video demo of our AIGC RTE solution can be found in our earnings presentation with more details on its features and capabilities. Please also feel free to download the demo application and try it yourself.

我們的 AIGC RTE SDK 還具有快速的靈活性。開發人員可以輕鬆地創建他們的應用程序，並可以自由地從各種大型語言模型、語音到文字引擎和合成語音中進行選擇，以適應他們獨特的用例。我們的 AIGC RTE 解決方案的視訊演示可以在我們的收益演示中找到，其中包含有關其特性和功能的更多詳細資訊。也請隨意下載演示應用程式並親自嘗試。

Next, let's move to the real world factories to see how we assist BMW in their digital transformation journey. Historically, we when local engineers needed technical support from a specialist at BMW headquarters in Germany, they have to wait at least 24 hours before the specialist could arrive on site, which could impact manufacturing timeline and even cause delays in delivery.

接下來，讓我們走進現實世界的工廠，看看我們如何協助寶馬的數位轉型之旅。從歷史上看，當地工程師需要德國寶馬總部專家的技術支援時，他們必須等待至少24小時才能到達現場，這可能會影響製造時間，甚至導致交貨延誤。

Our solution enables remote specialist at BMW headquarter to remotely inspect even the smallest detail with HD video and low latency. In addition, when the specialist makes inquiries or provide instructions, local engineers can see exactly where the specialist is marking with the help of AR devices. This solution demonstrates our commitment to becoming a trusted partner of large enterprise for their digital transformation initiatives.

我們的解決方案使寶馬總部的遠端專家能夠透過高清視訊和低延遲遠端檢查即使是最小的細節。此外，當專家詢問或提供指示時，當地工程師可以藉助AR設備準確地看到專家正在標記的位置。該解決方案體現了我們致力於成為大型企業數位轉型計畫值得信賴的合作夥伴的承諾。

Last month, we held our RTE conference for the ninth consecutive year with where we discuss the role artificial intelligence plays in real-time engagement. We have been leveraging AI to enhance the quality of experience in real-time engagement for a long time. We developed the AI powered real time on device noise suppression and echo cancellation algorithms that significantly improve audio quality.

上個月，我們連續第九年召開了 RTE 會議，討論人工智慧在即時互動中的作用。長期以來，我們一直在利用人工智慧來提高即時參與的體驗品質。我們開發了人工智慧驅動的即時設備噪音抑制和迴聲消除演算法，可顯著提高音訊品質。

On the video front, our AI based real time on device algorithms such as super resolution, perceptual video coding, object segmentation, adaptive coding, and video quality assessments enable us to deliver optimal video quality and viewing experience up to 4K resolution. Many of our customers worldwide have integrated our latest SDK with this AI technologies and more are in the process to upgrade.

在視訊方面，我們基於人工智慧的即時設備演算法（例如超解析度、感知視訊編碼、物件分割、自適應編碼和視訊品質評估）使我們能夠提供高達 4K 解析度的最佳視訊品質和觀看體驗。我們全球的許多客戶已將我們最新的 SDK 與該人工智慧技術集成，還有更多客戶正在升級。

With our constant pursuit of more efficient AI powered SDK to overcome the limits of device and network infrastructures. We have substantially reduced the barrier to high quality RTE. This means that people around the world, even those without the latest smartphones or access to high-speed internet can now enjoy a wide range of RTE use cases, just like how they have access to basic utilities such as clean water and electricity.

我們不斷追求更有效率的人工智慧驅動的 SDK，以克服設備和網路基礎設施的限制。我們大大降低了高品質 RTE 的門檻。這意味著世界各地的人們，即使是那些沒有最新智慧型手機或無法存取高速網路的人，現在也可以享受廣泛的 RTE 使用案例，就像他們如何獲得清潔水和電力等基本公用設施一樣。

With billions of smartphones and devices powered by our SDK with AI driven capabilities, we're making solid progress to realize our mission of making real-time engagement, ubiquitous and allowing everyone to interact with anyone, anytime, and anywhere. We have also closely followed the development of large language model and generative AI around the world.

數十億智慧型手機和設備由我們的SDK 提供支持，具有AI 驅動功能，我們正在取得紮實的進展，以實現我們的使命：讓即時互動無處不在，讓每個人都能隨時隨地與任何人互動。我們也密切關注全球大語言模式和生成式人工智慧的發展。

As mentioned earlier, our AIGC RTE solution enables developers to put AI powered characters into voice conversation with users. We have been working closely with some customers and expect to see them launch their innovative use cases soon, such as AI companions or personal assistance, social deduction games with AI players, and AI tutors to help users learn foreign languages.

如前所述，我們的 AIGC RTE 解決方案使開發人員能夠將人工智慧驅動的角色放入與使用者的語音對話中。我們一直在與一些客戶密切合作，希望看到他們很快就推出創新用例，例如人工智慧伴侶或個人助理、人工智慧玩家的社交推理遊戲以及幫助用戶學習外語的人工智慧導師。

As large language models continue to advance in their ability to process and generate multimodal information, substantial amount of data in video and audio format will need to be transmitted between human users and AI models. The volume of such date of such data will one day surpass today's human to human traffic, and we are uniquely positioned to become the critical infrastructure that enables users and AI models to interact with each other through video and audio.

隨著大型語言模型處理和產生多模態資訊的能力不斷提高，人類用戶和人工智慧模型之間將需要傳輸大量視訊和音訊格式的資料。此類數據的數量有一天將超過當今的人與人之間的流量，而我們具有獨特的優勢，能夠成為使用戶和人工智慧模型能夠透過視訊和音訊相互互動的關鍵基礎設施。

Before concluding my prepared remarks, I would also like to announce a change in our Board of Directors. Mr. Tuck Lye Koh has tendered his voluntary resignation due to personal reasons. Tuck has been working with us since our inception a decade ago. First as an Investor, then as a Director since 2018. I would like to sincerely thank Tuck for his dedicated service and invaluable advice to our Board.

在結束我準備好的發言之前，我還想宣布我們董事會的變動。 Tuck Lye Koh 先生因個人原因提出自願離職。自從十年前我們成立以來，塔克大學一直與我們合作。首先是作為投資者，然後自 2018 年起擔任董事。我衷心感謝塔克公司為我們董事會提供的熱心服務和寶貴建議。

Mr. Shawn Zhong, currently our Chief Accounting Officer and Chief Scientist has been appointed as a Director. I would like to warmly welcome Shawn to join our Board, and I'm confident that Shawn's insights and expertise will help the Board and the company stay on the forefront of real-time engagement technology and create long-term value to our shareholders.

現任首席會計官兼首席科學家鐘先生已被任命為董事。我熱烈歡迎 Shawn 加入我們的董事會，我相信 Shawn 的見解和專業知識將幫助董事會和公司保持在即時參與技術的最前沿，並為我們的股東創造長期價值。

With that, let me turn things over to Jingbo, who will review our financial results.

接下來，讓我把事情交給景波，他將審查我們的財務表現。

Thank you, Tony. Hello everyone. Let me start by first reviewing the financial results for the third quarter and then I will discuss our outlook for the fourth quarter of 2023. Total revenues for $35 million in the third quarter of 2023, an increase of 2.9% quarter over quarter, and a decrease of 14.6% year over year. Agora revenues were $15.3 million in the third quarter, flat compared to last quarter and decreased 8.9% year over year.

謝謝你，托尼。大家好。首先讓我回顧一下第三季的財務業績，然後討論我們對 2023 年第四季的展望。2023 年第三季的總營收為 3,500 萬美元，環比成長 2.9%，年減14.6%。 Agora 第三季營收為 1,530 萬美元，與上季持平，年減 8.9%。

he year-over-year decrease was primarily due to reduced usage and increased price sensitivity from customers in emerging markets due to challenging macroeconomic environment and tightening financing conditions starting from the second half of last year.

年比下降的主要原因是，由於宏觀經濟環境充滿挑戰以及從去年下半年開始融資條件收緊，新興市場客戶的使用量減少以及價格敏感度提高。

Strong revenues for RMB41.2 million in the third quarter, an increase of 7.4% quarter over quarter and a decrease from 9.2% year over year excluding revenues from the disposed to CEC business. The quarter-over-quarter increase was primarily due to an increase in revenues from digital transformation customers for large enterprises.

第三季營收強勁，達人民幣 4,120 萬元，季增 7.4%，年減 9.2%（不包括出售給 CEC 業務的收入）。環比成長主要是由於大型企業數位轉型客戶的收入增加。

This is an area where we have seen strong revenue growth in the past two years. Going forward, we believe digital transformation market will become increasingly important revenue and profit contributor for the Shengwang business. The year over year decrease was primarily due to slowing general economic conditions and fast-evolving regulations in certain downstream markets.

這是我們過去兩年收入強勁成長的領域。展望未來，我們相信數位轉型市場將成為聲網業務日益重要的收入和利潤貢獻者。年比下降主要是由於總體經濟狀況放緩以及某些下游市場的法規快速變化。

Dollar based net retention rate is 98% for Agora and 89% for Shengwang excluding revenues from discontinued business. Moving onto cost and expenses. For my following comments, I will focus on non-GAAP adjusted financial measures, 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, impairment of goodwill, depreciation of property and equipment and amortization of land use right.

不包括已終止業務的收入，以美元計算的淨留存率為 Agora 98%，聲網為 89%。轉向成本和費用。在我的以下評論中，我將重點放在非公認會計準則調整後的財務指標，其中不包括股權激勵費用、收購相關費用、融資相關費用、所收購無形資產的攤銷費用、與所收購無形資產相關的所得稅、商譽減損、財產和設備折舊以及土地使用權攤提。

Adjusted gross margin for third quarter was 66.9%, 3.3% higher than Q3 2022, mainly due to the changing product mix and the implementation of technical infrastructure optimizations. As mentioned in previous earnings calls, we restructured and reduced our global workforce in Q4 last year, and we are continuing to implement effective expense controls.

第三季調整後毛利率為66.9%，比2022年第三季高出3.3%，主要得益於產品結構的變化和技術基礎設施優化的實施。正如先前的財報電話會議中所提到的，我們在去年第四季重組並減少了全球員工隊伍，我們正在繼續實施有效的費用控制。

As a result adjusted R&D expenses of $15.7 million in Q3, decreased 36.4% year-over-year. Adjusted R&D expenses represented 44.8% of total revenues in the quarter compare to 60.2% in Q3 last year. Adjusted sales and marketing expenses, $6.6 million in Q3 decreased 48.8% year-over-year. So the marketing expenses represented 18.9% of total revenues in the quarter, compared to 31.5% in Q3 last year.

因此，第三季調整後的研發費用為 1,570 萬美元，年減 36.4%。調整後的研發費用佔本季總營收的 44.8%，去年第三季為 60.2%。第三季調整後的銷售和行銷費用為 660 萬美元，年減 48.8%。因此，行銷費用佔本季總收入的 18.9%，而去年第三季為 31.5%。

Adjusted G&A expense was $6.2 million in Q3 decreased 15.1% year-over-year. G&A expenses represented 17.6% of total revenue in the quarter compared to 17.7% in Q3 last year. Adjusted EBITDA was negative $4.4 million, translating to a 12.7% adjusted EBITDA loss margin for the quarter significantly lower than the profit margin of 40% in Q3 last year.

第三季調整後的一般管理費用為 620 萬美元，年減 15.1%。 G&A 費用佔本季總收入的 17.6%，而去年第三季為 17.7%。調整後 EBITDA 為負 440 萬美元，表示本季調整後 EBITDA 虧損率為 12.7%，明顯低於去年第三季 40% 的利潤率。

Investment loss was $13.4 million in Q3, mainly due to the fair value change in equity investment of $7 million and loss on investments in certain private companies $6.3 million. Non-GAAP net loss, excluding investment loss was $2.2 million in Q3, translating to a 6.3% net loss margin for the quarter compared to a non-GAAP net loss margin of 42.9% in Q3 last year and 19.4% in Q2 this year.

第三季投資損失為1,340萬美元，主要是因為股權投資公允價值變動700萬美元以及對某些私人公司的投資損失630萬美元。第三季非GAAP 淨虧損（不含投資損失）為220 萬美元，相當於該季淨虧損率為6.3%，而去年第三季非GAAP 淨虧損率為42.9%，今年第二季為19.4% 。

Now turning to cash flow. Operating cash flow was negative $3 million in Q3 compared to negative $8.8 million last year. Free cash flow was negative $3.2 million, compared to negative $9.9 million last year. Moving onto balance sheet. We ended Q3 with $373.4 million in cash, cash equivalents, bank deposits, and financial products issued by banks.

現在轉向現金流。第三季營運現金流為負 300 萬美元，去年為負 880 萬美元。自由現金流為負 320 萬美元，去年為負 990 萬美元。轉向資產負債表。截至第三季度，我們的現金、現金等價物、銀行存款和銀行發行的金融產品為 3.734 億美元。

Net cash outflow in the quarter was mainly due to free cash flow from negative $3.2 million and share repurchase of $12.5 million. Since the Board approved our share repurchase program in February 2022 and as of September 30, 2023, we have returned approximately $94.3 million to shareholders through share repurchase demonstrating the Board's commitment to safeguarding shareholder value and its confidence in the long-term prospects of the company.

本季淨現金流出主要是由於自由現金流負 320 萬美元和股票回購 1,250 萬美元。自董事會於2022 年2 月批准我們的股票回購計畫以來，截至2023 年9 月30 日，我們已透過股票回購向股東返還約9,430 萬美元，這表明了董事會維護股東價值的承諾以及對公司長期前景的信心。

As of September 30, 2023, the company had approximately $94.2 million ADS outstanding, reflecting a 16% reduction in total shares outstanding compared with January 31, 2022, before the share repurchase program started. So far, we have completed 47% of our $200 million share repurchase program which will expire at the end of February 2024, and we intend to continue to undertake this meaningful capital return to our shareholders.

截至 2023 年 9 月 30 日，該公司已發行的美國存託股份約為 9,420 萬美元，與股票回購計畫開始前的 2022 年 1 月 31 日相比，已發行的股份總數減少了 16%。到目前為止，我們已經完成了 2 億美元的股票回購計畫的 47%，該計畫將於 2024 年 2 月底到期，我們打算繼續向股東提供這項有意義的資本回報。

Now turning to guidance, for the fourth quarter of 2023. We currently expect total revenues to be between $35.5 million and $37.5 million. This forecast reflects our current and preliminary views on the market and operational conditions, which are subject to change.

現在轉向 2023 年第四季的指引。我們目前預計總收入在 3,550 萬美元至 3,750 萬美元之間。該預測反映了我們對市場和營運狀況的當前和初步看法，這些看法可能會改變。

In closing, we are very proud of our execution in this quarter, especially the significant improvement in profitability. We will stick to our strategy and be laser-focused on driving revenues and improving efficiency. For long run, as Tony has mentioned, we are exciting to see emerging AIGC use cases, and we are well prepared to help developers combined the power of generative AI and real-time engagement.

最後，我們對本季的執行情況感到非常自豪，尤其是獲利能力的顯著改善。我們將堅持我們的策略，專注於增加收入和提高效率。從長遠來看，正如托尼所提到的，我們很高興看到新興的 AIGC 用例，並且我們已做好充分準備，幫助開發人員將生成式 AI 和即時參與的力量結合起來。

Thank you to both Agora and Shengwang teams for their hard work and our investors for your trust. Thank you, everyone, for attending the call today. Operator, let's open it up for questions.

感謝聲網和聲網團隊的辛勤付出，感謝投資人的信任。謝謝大家今天參加電話會議。接線員，讓我們打開提問吧。

Thank you. As we will now conduct the Q&A session. (Operator Instructions) Tom Tang, Morgan Stanley.

謝謝。我們現在將進行問答環節。 （操作員指示）Tom Tang，摩根士丹利。

T chank you for the chance to ask questions or just from Morgan Stanley. So we have two questions. The first one is regarding the 2024 outlook for -- because I have a breakdown between the Agora and Shengwang on the books. And the second question is regarding the competitive landscape in both finance and overseas? Thank you.

感謝您給我們提問的機會，或只是向摩根士丹利提問。所以我們有兩個問題。第一個是關於 2024 年的展望——因為我在帳本上對 Agora 和聲網進行了細分。第二個問題是金融和海外的競爭格局？謝謝。

Sure. The status for both Agora and Shengwang for our growth side, I think, of course, Agora global market overall amount optimistic about demand in midterm to long term, I think one big factor is the pandemic actually really changed consumer behaviors. Before the pandemic, the only scenario where people use our real-time audio video is basically web conferencing in the US market.

當然。對於我們成長方面的Agora和聲網的狀況，我認為當然Agora全球市場整體對中長期的需求持樂觀態度，我認為其中一個重要因素是疫情實際上確實改變了消費者的行為。在疫情之前，在美國市場，人們使用我們即時音視訊的場景基本上就是網路會議。

People are not that get used familiar with all other use cases like a co-working experience, et cetera. Now after pandemic, although in some of the use cases of volume decreased, but consumers are more adapt to all type of real-time engagement activities online, such as shopping with live conversations and relating with live sessions online or co-working or which party.

人們並不習慣熟悉所有其他用例，例如共享辦公室體驗等。現在大流行之後，雖然在某些用例中數量有所減少，但消費者更適應在線所有類型的實時參與活動，例如通過實時對話進行購物以及通過在線實時會議或共同工作或與哪一方進行聯繫。

I think the overall those consumer behavior change can help us to see a lot of growth in both use cases and volume. Meanwhile the macro environment is still challenging, but it is for all companies operating in this market. As a matter of fact, we actually see some small competitors start to run into financial difficulties. For 2024, our goal is to stabilize our existing business and grow into new regions and new use cases.

我認為總體而言，這些消費者行為的變化可以幫助我們看到用例和數量的大幅成長。同時，宏觀環境仍然充滿挑戰，但這對所有在這個市場運營的公司來說都是如此。事實上，我們確實看到一些小型競爭對手開始陷入財務困境。 2024 年，我們的目標是穩定現有業務並拓展新地區和新用例。

Internal market, a lot of macro and regulatory headwinds, as you probably already know, better usage of our platform continuing to grow. Our market share in new adoptions also increased nearly 20% this year, and our digital transformation business serving large enterprise also grow, grow more than 50% this year. For 2024, we expect our digital transformation business to continue to grow and our goal for the internet business is to further gain in market share.

正如您可能已經知道的那樣，內部市場存在許多宏觀和監管阻力，我們平台的更好使用率持續成長。我們在新採用的市佔率今年也成長了近20%，我們服務大型企業的數位轉型業務也有所成長，今年成長了50%以上。 2024年，我們預期數位轉型業務將持續成長，網路業務的目標是進一步擴大市場佔有率。

And on the question about the demand and pricing. For Agora's market, our number of customers are continuing to grow at about 25%, as I mentioned earlier. Also, we see some more use cases start to emerge into growth mode such as live shopping and also mentioned, the customer behavior change actually give us a hope that there will be more growth potential in both use cases and the volume.

關於需求和定價的問題。對於 Agora 的市場，我們的客戶數量持續以 25% 左右的速度成長，正如我之前提到的。此外，我們看到更多的用例開始進入成長模式，例如直播購物，也提到，客戶行為的變化實際上讓我們希望用例和數量都有更多的成長潛力。

Overall that a challenging environment still there and those near term still impact the operation, but a lot of potential in the medium to long term on time frame, pricing-wise more pressure in emerging markets, but price has been healthy and stable in developed of the market. In China, overall demand is stable from internet customers with some bright spots such as online karaoke and premium broadcasting streaming products.

總體而言，充滿挑戰的環境仍然存在，短期內仍會影響運營，但從中長期來看，潛力很大，新興市場的定價壓力更大，但已開發國家的價格一直健康穩定市場。在中國，網路客戶的整體需求穩定，其中一些亮點包括線上卡拉OK和優質廣播串流媒體產品。

We see strong demand from digital transformation side, as I mentioned. Pricing in internet sector generally dropped about 10% each year, but our gross margin remains healthy. Pricing in diesel transformation is also more attractive in this market. Thank you.

正如我所提到的，我們看到數位轉型方面的強勁需求。網路產業的定價普遍每年下降約10%，但我們的毛利率仍保持健康。柴油改造的定價在這個市場上也更具吸引力。謝謝。

David Li, BOFA Securities.

李大衛，美銀證券。

Hi, management. Thanks for taking my question. I've got one question about the AI as you mentioned. There's more application scenarios for the AI like AI assistant, AIGC RTE, and when do you think the AI can already tell more meaningful revenue contribution of our business or which application do you think, which how we could how much potential to drive our business growth in the future? Thank you.

嗨，管理層。感謝您提出我的問題。正如你所提到的，我有一個關於人工智慧的問題。人工智慧還有更多的應用場景，例如人工智慧助理、AIGC RTE，你認為人工智慧什麼時候已經可以告訴我們業務更有意義的收入貢獻或你認為哪些應用，我們可以有多大潛力來推動我們的業務成長將來？謝謝。

Okay. Yes, you're right. I've also talked about there are many potentials in all sorts of use cases and use cases like AI companions, AI game players, et cetera. However -- I also mention we roll out this AIGC RTE SDK module in the last few months, we do have of domestic a wheel of those potentials are interesting in a very basic concept, there's going to be much more real-time audio video traffic among not just humans, but between human and AI models, that's a long-term future.

好的。你是對的。我還談到了各種用例和用例（例如人工智慧伴侶、人工智慧遊戲玩家等）都有很多潛力。然而，我還提到我們在過去幾個月推出了這個AIGC RTE SDK 模組，我們確實在國內擁有這些潛力的輪子，這些潛力在一個非常基本的概念中很有趣，將會有更多的實時音頻視訊流量不僅在人類之間，而且在人類和人工智慧模型之間，這都是一個長期的未來。

However the development is still undergoing. I think there's a lot of -- since these would fit out for a large language model to be able to really act as a human like personal assistant like AI companion or player in certain games. That's where we worked with or worked hard with a lot of our customers and partners together and tried to bring it to realize, and I don't want to overestimate in near term of such growth.

然而，開發仍在進行中。我認為有很多——因為這些適合大型語言模型，能夠真正充當人類的個人助理，例如人工智慧伴侶或某些遊戲中的玩家。這就是我們與許多客戶和合作夥伴一起工作或努力工作並試圖實現這一目標的地方，我不想高估短期內的這種成長。

This is really like in the States, that we and our customers and partners trying to validate and breakthrough into each and every use case in the last few quarters.

這真的就像在美國一樣，我們以及我們的客戶和合作夥伴在過去幾季中試圖驗證和突破每個用例。

Thank you.

謝謝。

Thank you. (Operator Instructions) Thank you. There are no further questions. Thank you, everybody, for attending this company's call today. As a reminder, the recording in the earnings release will be available on the company's website at investor.agora.io, and if there's any questions, please feel free to email the company. Thank you and have a great day.

謝謝。 （操作員說明）謝謝。沒有其他問題了。謝謝大家今天參加本公司的電話會議。提醒一下，財報中的錄音將在公司網站investor.agora.io上提供，如果有任何疑問，請隨時向公司發送電子郵件。謝謝您，祝您有美好的一天。