Agora Inc (API) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Agora Inc., fourth quarter and fiscal year 2023 financial results conference call.

美好的一天，感謝您的耐心等待，歡迎參加 Agora Inc. 第四季和 2023 財年財務業績電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員指示）請注意，今天的會議正在錄製中。

The company's earnings results press release, earnings presentation, SEC filings and a replay of today's call can be found on its IR website at investor.agora.io.

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其投資者關係網站 Investor.agora.io 上找到。

Joining me today are Tony Zhao, Founder, Chairman and CEO; Jingbo Wang, the company's CFO.

今天加入我的是創辦人、董事長兼執行長 Tony Zhao；王靜波，該公司財務長。

Reconciliations between the company's GAAP and non-GAAP results can be found in its earnings press release.

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。

During this call, the company will make forward-looking statements about its future financial performance and other future events and trends.

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 what the company believes today and actual results may differ materially.

這些陳述只是基於公司目前認為的預測，實際結果可能有重大差異。

These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could affect the company's financial results and the performance of its business and which the company discussed in detail in its filings with the SEC, including today's earnings press release and the risk factors and other information contained in the financial prospectus relating to its initial public offering.

這些前瞻性陳述受到可能影響公司財務表現和業務表現的風險、不確定性、假設和其他因素的影響，公司在向 SEC 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與首次公開發行相關的財務招股說明書中所包含的風險因素和其他資訊。

Agora Inc., remains no obligation to update any forward-looking statements the company may make on today's call with that, let me turn it over to 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，讓我把它交給托尼。

Hi, Tony.

嗨，托尼。

Thanks, operator.

謝謝，接線生。

And welcome, everyone, to our earnings call.

歡迎大家參加我們的財報電話會議。

Let me first quickly review our operating results in Q4, revenue was $15.3 million for Agora, flat compared to last quarter and RMB148.3 million for Shengwang, an increase of 5% quarter over quarter, mainly driven by revenue growth from digital transformation customers.

首先快速回顧我們第四季的經營業績，Agora 的營收為 1,530 萬美元，與上季持平；聲網的營收為 1.483 億元人民幣，環比成長 5%，主要受到數位轉型客戶營收成長的推動。

As of the end of 2023, we had close to 700 active customers for Agora and more than four of 4,100 for Shengwang an increase of 18% and 12%, respectively, compared to one year ago.

截至 2023 年底，聲網活躍客戶接近 700 名，聲網活躍客戶超過 4,100 名，較一年前分別成長 18% 及 12%。

I'm pleased to announce that we achieved a non-GAAP net income of $1.4 million in Q4.

我很高興地宣布，我們第四季的非 GAAP 淨利潤為 140 萬美元。

Despite a very challenging operating environment, thanks to our effective cost control and relentless drive for revenue growth, Jingbo will discuss in more detail shortly.

儘管營運環境非常具有挑戰性，但由於我們有效的成本控制和對收入成長的不懈推動，京博將很快進行更詳細的討論。

Now moving on to our business product and technology update for the quarter.

現在繼續我們本季的業務產品和技術更新。

Let's start with our growth.

讓我們從我們的成長開始。

In this quarter, we held a series of webinars to discuss how real-time engagement, which combined with state of art technology in artificial intelligence and AR/VR can greatly influence or even transform various industries, including live shopping, telehealth and internet of things.

本季度，我們舉辦了一系列網路研討會，討論即時互動如何與人工智慧和 AR/VR 等最先進技術相結合，如何極大地影響甚至改變各個行業，包括直播購物、遠距醫療和物聯網。

For example, in live shopping, we see more and more [retail] brands and platforms relying on interactive live streaming to redefine the way consumers makes their buying decision by creating a personalized social and engaging experience for the audience.

例如，在直播購物中，我們看到越來越多的[零售]品牌和平台依靠互動直播，透過為觀眾創造個人化的社交和參與體驗來重新定義消費者做出購買決策的方式。

A loyal community of repeated buyers will strive and help drive sales.

由重複購買者組成的忠誠社區將努力並幫助推動銷售。

The combination of RTE, AI and AR/VR is driving a rapid revolution of IoT use cases.

RTE、AI 和 AR/VR 的結合正在推動物聯網用例的快速變化。

For example, heavy machinery operators can work remotely with an enhanced wheel, [rapped] fees beyond planned spots, enabling them to carry a tonnage of packs in a safe and efficient manner for autonomous drive --autonomous vehicles or AI powered with robotics.

例如，重型機械操作員可以使用增強型輪子進行遠端工作，超出計劃地點的費用，使他們能夠以安全有效的方式攜帶大量的包裹進行自動駕駛——自動駕駛車輛或由機器人驅動的人工智慧。

Human operators can monitor their operations from remote locations and pickle work whenever necessary.

操作員可以從遠端位置監控其操作，並在必要時進行醃製工作。

This series of webinars was well received and attracted thousands of participants globally.

該系列網路研討會廣受好評，吸引了全球數千名參與者。

We believe an Agora is uniquely positioned to facilitate our innovations in this industry, by leveraging our cutting edge, RTE technology and deep understanding of industry specific use cases.

我們相信，透過利用我們的尖端 RTE 技術和對該行業特定用例的深入了解，Agora 具有獨特的優勢，可以促進我們在該行業的創新。

In this quarter, we also released a brand-new beta version of our signaling product, which provides real-time data synchronization and low latency event of vacation between devices and powers.

本季度，我們也發布了全新的信令產品測試版，提供設備與電源之間的即時資料同步和低延遲的休假事件。

The new world [cannot] accommodate a limited number of users per channel, deliver better synchronization support storage and manage completing message effectively.

新世界[無法]容納每個頻道有限數量的用戶、提供更好的同步支援儲存並有效管理完成訊息。

It enables a wide range of use cases such as real time beating in live shopping versus gifting in live streaming, player data synchronization in online gaming live polling in education and remote command of IoT devices.

它支援廣泛的用例，例如直播購物中的即時擊敗與直播中的禮物、線上遊戲中的玩家資料同步、教育中的即時投票以及物聯網設備的遠端命令。

In December, Twilio announced the upcoming end of life of its programmable video product, which was a competing solution with our video coding product.

12 月，Twilio 宣布其可編程視訊產品的生命週期即將結束，該產品是與我們的視訊編碼產品競爭的解決方案。

We have pushed a series of blocks covering guidance and best practice from migrating from Twilio to Agora across major operating system and developer platforms.

我們推出了一系列區塊，涵蓋跨主要作業系統和開發者平台從 Twilio 遷移到 Agora 的指導和最佳實踐。

Additionally, we are offering up to two months free to customers who switch from Twilio.

此外，我們也為從 Twilio 切換的客戶提供長達兩個月的免費服務。

We believe Agora is the ideal alternative for Twilio's, video customers base and expect to enhance our global market share following Twilio's ethic.

我們相信 Agora 是 Twilio 視訊客戶群的理想替代方案，並希望遵循 Twilio 的道德規範來提高我們的全球市場份額。

We are also thrilled to see Open AI recent launch of [Sora], a powerful AI model that can create realistic and imaginative video clips based on [caps] instruction.

我們也很高興看到 Open AI 最近推出了 [Sora]，這是一個強大的 AI 模型，可以根據 [caps] 指令創建逼真且富有想像力的影片剪輯。

It aligns with our early wheel that multimodal capabilities of generative AI models will advance rapidly, eventually enabling human users to directly interact with AI models in voice and video format.

它與我們的早期輪子一致，即生成人工智慧模型的多模態能力將迅速發展，最終使人類用戶能夠以語音和視訊格式直接與人工智慧模型互動。

This technology breakthrough in AI will greatly expand the boundaries of real-time engagement and bring about tremendous new possibilities.

人工智慧的這項技術突破將大大擴展即時互動的邊界，帶來巨大的新可能性。

I believe Agora is well positioned to play a critical role in facilitating massive data transmission between AI models and human users.

我相信 Agora 能夠在促進人工智慧模型和人類用戶之間的大量資料傳輸方面發揮關鍵作用。

Moving on to Shengwang fully in the availability of Apple Vision Pro earlier this month.

本月早些時候，Apple Vision Pro 上市後，我們將全面轉向聲望。

We have enabled many customers to launch applications in the vision pro app store.

我們已使許多客戶能夠在 Vision Pro 應用程式商店中啟動應用程式。

I personally use vision pro and 3D remarks an important breakthrough in [XR] technology.

我個人使用Vision Pro和3D評論了[XR]技術的重要突破。

The high video resolution and the see-through capability of video of vision pro demand, higher quality video content and opens up possibilities for hologram video content consumption and interaction.

視覺專業人士的高視訊解析度和視訊透視能力要求更高品質的視訊內容，並為全像視訊內容消費和互動開闢了可能性。

For example, people will be able to watch live keynote speech in hologram format on vision pro.

例如，人們將能夠在 Vision Pro 上觀看全息圖格式的現場主題演講。

Our network is well positioned to power such content and interaction.

我們的網路處於有利地位，可以為此類內容和互動提供支援。

Over the past few months, many games that only unlocked video live streaming have been gaining popularity among social platforms.

過去幾個月，不少只解鎖視訊直播的遊戲在社群平台上越來越受歡迎。

For example, a round of noodles can serve as a breaker in a matchmaking room.

例如，一圈麵條可以作為相親室的開場白。

Live streaming channels ca incorporated team based mini games where audience can participate by funding, [put] it chats then cakes.

直播頻道可以整合基於團隊的迷你遊戲，觀眾可以透過資助參與，[放]聊天，然後蛋糕。

We have partners with leading mini-game developers to offer our customers a wide range of mini game that can be easily embedded into their application.

我們與領先的迷你遊戲開發商合作，為我們的客戶提供各種可以輕鬆嵌入到他們的應用程式中的迷你遊戲。

Early data from our customers show that mini game, integration has result in increased user participation, longer session duration and more monetized of their need.

來自我們客戶的早期數據表明，迷你遊戲、整合提高了用戶參與度、延長了會話持續時間並提高了他們的需求的貨幣化程度。

In this quarter we also introduced virtual soundcard and advanced feature that simulates key components of a professional hardware soundcard, such as the exciter, compressor, equalizer and, reverberator to process and use us voice in real time.

在本季度，我們還推出了虛擬聲卡和高級功能，可模擬專業硬體聲卡的關鍵組件，例如激勵器、壓縮器、均衡器和混響器，以即時處理和使用我們的語音。

Users can now easily enhance and modify their voices with only our cell phone, without the need to purchase a computer with a professional sound card.

用戶現在只需要手機就可以輕鬆增強和修改自己的聲音，而無需購買具有專業聲卡的電腦。

For example, a customer recently at virtual some car in their online karaoke rooms, users can choose from a range of preset specific to make their voices clear sweetener, -- sweater, [Gen4] or more mature.

例如，一位客戶最近在其線上卡拉OK 室中虛擬了一些汽車，用戶可以從一系列特定的預設中進行選擇，以使他們的聲音清晰、甜美、——毛衣、[Gen4] 或更成熟。

Slightly of key nodes also be adjusted automatically.

少量關鍵節點也會自動調整。

This capability makes user more confident to participate therefore, posting user engagement and stickiness on our customers' platform.

此功能使用戶更有信心參與，從而在我們客戶的平台上發布用戶參與度和黏性。

Before concluding my prepared remarks, I would like to thank both of Agora and Shengwang team for their commitment and dividend during this challenging period.

在結束我準備好的演講之前，我要感謝 Agora 和聲網團隊在這個充滿挑戰的時期所做的承諾和紅利。

We not only delivered consecutive quarter over quarter top line growth since the second quarter, but also achieved non-GAAP profitability in the fourth quarter.

我們不僅自第二季以來實現了連續季度營收成長，而且在第四季度實現了非公認會計原則獲利。

Looking ahead at 2024, we will keep focusing on creating customer, value and enhancing our competitive advantage with the goal of expanding our market share globally.

展望2024年，我們將繼續專注於創造客戶、價值和增強競爭優勢，以擴大全球市場份額為目標。

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

那麼，讓我把事情交給京博，我們將審查我們的財務表現。

Thank you, Tony.

謝謝你，托尼。

Hello, everyone, let me start by first reviewing financial results for the fourth quarter of 2023.

大家好，我先回顧一下2023年第四季的財務表現。

And then I will discuss outlook for the first quarter of 2024.

然後我將討論 2024 年第一季的展望。

Total revenues were $36 million in the fourth quarter, an increase of 2.9% quarter over quarter and a decrease of 10.2% year-over-year.

第四季總營收為3,600萬美元，季增2.9%，年減10.2%。

Agora revenues were $15.7 million in the fourth quarter, flat compared to last quarter and decreased 3.2% year over year.

Agora第四季營收為1,570萬美元，與上季持平，年減3.2%。

The year-over-year decrease was primarily due to reduced usage from customers in emerging markets due to challenging macroeconomic environment and tightening financing conditions starting from the second half of 2022.

年比下降的主要原因是，由於宏觀經濟環境充滿挑戰以及自2022年下半年開始融資條件收緊，新興市場客戶的使用量減少。

Shengwang revenues were RMB148.7 million in the fourth quarter, an increase of 5% quarter on quarter and a decrease of 9.6% year over year, excluding revenues from the disposed CEC business.

聲網第四季營收為人民幣1.487億元，季增5%，年減9.6%，不含處置的CEC業務收入。

Quarter over quarter increase was primarily due to an increase in revenues from digital transformation customers for large enterprises.

環比成長主要是由於大型企業數位轉型客戶的收入增加。

Year-over-year decrease was primarily due to slowing demand from Internet customers due to regulation and the general economic conditions.

年比下降主要是由於監管和總體經濟狀況導致網路客戶的需求放緩。

Dollar-based net retention rate is 93% for Agora and 82% for Shengwang, excluding revenues from this discontinued business.

以美元計算的淨保留率為 Agora 93%，聲網為 82%（不包括這項已終止業務的收入）。

Moving on to costs 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, optimization of land use, right.

談到成本和費用，在我的以下評論中，我將重點關注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、與收購的無形資產、商譽減損、財產設備折舊以及優化土地利用、權利。

Adjusted gross margin for fourth quarter was 65.2%, which was 0.3% higher than Q4, 2022 and 1.7% lower than Q3 2023.

第四季調整後毛利率為 65.2%，比 2022 年第四季高出 0.3%，比 2023 年第三季低 1.7%。

The year-over-year increase was mainly due to the change in product mix and the implementation of technical and infrastructural optimizations.

年比成長主要是由於產品結構的變化以及技術和基礎設施優化的實施。

The quarter-over-quarter decrease was mainly due to increase in on-premises solution revenue, which have a lower gross margin.

環比下降主要是由於毛利率較低的本地解決方案收入增加。

As we continue to implement expense controls our adjusted R&D expenses decreased 18% year over year to $13.7 million in Q4.

隨著我們繼續實施費用控制，第四季度調整後的研發費用年減 18% 至 1,370 萬美元。

Adjusted R&D expenses represented 38% of total revenues in the quarter compared to 41.6% in Q4 last year.

調整後的研發費用佔本季總營收的 38%，去年第四季為 41.6%。

Adjusted sales and marketing expenses was $6.7 million in Q4, decreased 40.6% year over year.

第四季調整後的銷售和行銷費用為 670 萬美元，年減 40.6%。

Sales and marketing expenses represented 17.5% of total revenues in the quarter compared to 26.4% in Q4 last year.

銷售和行銷費用佔本季總收入的 17.5%，而去年第四季為 26.4%。

Adjusted G&A expenses were $5.8 million in Q4, decreased 20.5% year over year.

第四季調整後的一般管理費用為 580 萬美元，年減 20.5%。

G&A expenses represented 16% of total revenues in the quarter compared to 18.2% in Q4 last year.

G&A 費用佔本季總收入的 16%，而去年第四季為 18.2%。

Adjusted EBITDA was negative $2 million, translating to a 5.6% adjusted EBITDA loss margin fourth quarter significantly lower than the adjusted EBITDA loss margin of 21.1% in Q4 last year.

調整後 EBITDA 為負 200 萬美元，這意味著第四季度調整後 EBITDA 虧損率為 5.6%，明顯低於去年第四季調整後 EBITDA 虧損率 21.1%。

Non-GAAP net income was $1.4 million in Q4, translating to a 3.9% net income margin fourth quarter compared to a non-GAAP net loss margin of 39.3% in Q4 last year.

第四季非 GAAP 淨利潤為 140 萬美元，第四季淨利潤率為 3.9%，而去年第四季非 GAAP 淨虧損率為 39.3%。

As Tony has mentioned, thanks to our effective cost controls and relentless drive for revenue growth.

正如托尼所提到的，這要歸功於我們有效的成本控制和對收入成長的不懈推動。

We achieved profitability on a non-GAAP basis for the first time in more than three years.

我們三年多來首次實現了非公認會計原則（non-GAAP）獲利。

This demonstrates the resilience of our business amid a very challenging operating environment as well as our continued discipline and efforts in optimizing our cost structure.

這證明了我們的業務在充滿挑戰的營運環境中的韌性，以及我們在優化成本結構方面的持續紀律和努力。

Now turning to cash flow.

現在轉向現金流。

Operating cash flow was positive $3.7 million in Q4 compared to negative $4.6 million last year.

第四季營運現金流為正 370 萬美元，去年為負 460 萬美元。

Free cash flow was positive $3.4 million compared to negative $6.1 million last year.

自由現金流為正 340 萬美元，去年為負 610 萬美元。

Moving on to balance sheet, we ended Q4 with $371.8 million in cash, -- cash equivalents, and deposits and financial products issued by banks $4.03 per ADS.

轉向資產負債表，第四季結束時，我們擁有 3.718 億美元的現金、現金等價物以及銀行發行的存款和金融產品，每份 ADS 為 4.03 美元。

Net cash flow.

淨現金流量。

Net cash outflow in the quarter was mainly due to share repurchase of $10.1 million which was offset in part by free cash flow of $3.6 million, since the Board approved our share repurchase program in February 2022.

本季的淨現金流出主要是由於 1,010 萬美元的股票回購，自董事會於 2022 年 2 月批准我們的股票回購計畫以來，這部分被 360 萬美元的自由現金流所抵銷。

And as of December 31, 2023, we have returned approximately $104.7 million to shareholders through share repurchases, reducing our share count by roughly 18%.

截至 2023 年 12 月 31 日，我們已透過股票回購向股東返還約 1.047 億美元，使我們的股份數量減少了約 18%。

So far, we have completed 52% of our USD200 million share repurchase program.

到目前為止，我們已經完成了 2 億美元股票回購計畫的 52%。

We are pleased to announce that our Board has authorized another 12 months extension of a $200 million share repurchase program through end of February next year, with all other terms unchanged, which is a vote of confidence and financial strength and long-term prospects of the business.

我們很高興地宣布，董事會已授權將2 億美元的股票回購計畫再延長12 個月至明年2 月底，所有其他條款都保持不變，這是對公司的信心、財務實力和長期前景的投票。商業。

Now turning to guidance, due to seasonal impact, especially reduced usage in certain regions during Lunar New Year for the first quarter of 2024, we currently expect total revenues to be between $32 million and $34 million.

現在轉向指導，由於季節性影響，特別是 2024 年第一季農曆新年期間某些地區的使用量減少，我們目前預計總收入在 3,200 萬美元至 3,400 萬美元之間。

This forecast reflects our current and preliminary views on the market and operational conditions, which are subject to change.

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 and strong financial results given this challenging period.

最後，在這個充滿挑戰的時期，我們對我們的執行力和強勁的財務表現感到非常自豪。

They turn into profitability; it has remarkable milestone.

它們轉化為盈利能力；它具有非凡的里程碑。

Thank you to both a coordination on team for hard work and sacrifice in the past quarters.

感謝你們在過去幾季的辛勤工作和犧牲，感謝團隊的協調。

Thank you, everyone, for attending the call today.

謝謝大家今天參加電話會議。

Let's open it up for questions.

讓我們打開它來提問。

(Operator Instructions) Yang Liu, Morgan Stanley.

（操作員指示） Yang Liu，摩根士丹利。

Hi thank you.

嗨，謝謝你。

Thank you for the opportunity to ask questions.

感謝您給我提問的機會。

First, congratulations on the non-GAAP profit in last quarter 2023.

首先，恭喜 2023 年最後一個季度實現非 GAAP 利潤。

I have three questions here.

我在這裡有三個問題。

The first one is what is management's outlook in term of the 2024 full year profit, do you think the profitability in the past quarter will be sustained or it can be improved in 2024 for especially consider the guidance in first quarter implies some year-on-year revenue decline, whether the positive profit can be maintained?

第一個是管理階層對 2024 年全年利潤的展望是什麼，您認為過去一個季度的盈利能力會持續還是會在 2024 年得到改善，特別是考慮到第一季度的指導意味著一些同比增長。年營收下滑，獲利能否維持正值？

That's the first question.

這是第一個問題。

The second one is where would you like to have some update in terms of the domestic Internet companies going abroad, whether Agora can benefit from that in the overseas market?

第二個問題，您希望了解國內網路企業出海的最新情況，聲網在海外市場能否受益？

And what is our revenue split between Agora and Shengwang in the coming 2024 full year.

在即將到來的 2024 年全年，聲網和聲網之間的收入分配是多少？

Do you think the Agora revenue contribution will continue to drop a little bit or will turnaround in term of the total contribution.

您認為 Agora 的營收貢獻會繼續小幅下降還是會在總貢獻方面出現扭轉？

As the third question is regarding the partnership with a vision pro.

第三個問題是關於與視覺專業人士的合作關係。

What will be the revenue model behind this kind of a partnership?

這種合作關係背後的收入模式是什麼？

Will it be based on consumer time spent and if not, what will be the revenue model?

它會基於消費者花費的時間嗎？如果不是，收入模式是什麼？

Thank you.

謝謝。

Thank you.

謝謝。

I'll take your first question.

我來回答你的第一個問題。

Yes, the Q1 revenue guidance would imply a year-over-year revenue decrease.

是的，第一季的收入指引將意味著營收年減。

And as you know, Q1 is generally the lower season for the business.

如您所知，第一季通常是業務淡季。

If you look at our numbers in the past few years, revenue generally stable, especially in Q1 sequentially compared to Q4.

如果你看看我們過去幾年的數據，營收整體穩定，特別是與第四季相比，第一季的營收整體穩定。

That's due to both seasonality, as I mentioned, in some operations where we operate lunar Chinese New Year is a low season for social apps and for education apparently, so usage will drop during that holiday.

正如我所提到的，這是由於季節性因素，在我們運營的一些業務中，農曆新年顯然是社交應用和教育的淡季，因此在該假期期間使用量將會下降。

And also for digital transformation businesses a lot of the projects are tend to be -- we tend to talk towards the revenues towards the end of the year.

對於數位轉型企業來說，很多專案往往都是——我們傾向於談論年底的收入。

So Q1 is also a low season compared to last year.

所以與去年相比，第一季也是淡季。

Obviously, we have been turning in a regulatory changes, a pattern of environment in Q2.

顯然，我們一直在進行監管變革，這是第二季的環境模式。

So last year, Q1 was a [apparently] higher base.

所以去年第一季的基數[顯然]更高。

So that's our Q1 guidance.

這就是我們第一季的指引。

In terms of full year 2024 obviously remains a lot of current uncertainties around the world, including the macro-economic environment from the environment and so on.

就2024年全年而言，顯然當前全球仍存在許多不確定性，包括來自環境的宏觀經濟環境等等。

So I'll give you my best estimate.

所以我會給你我最好的估計。

So we expect our revenue to grow on year basis, starting from Q2.

因此，我們預計從第二季開始，我們的收入將逐年成長。

And our goal is to reach double digit revenue growth in Q4 year on year.

我們的目標是第四季營收年增達到兩位數。

And regardless of revenue growth, we do not expect, expenses will grow this year compared to the most recent base.

無論收入成長如何，我們預計今年的支出與最近的基數相比不會成長。

So it's going to be a pretty stable cost base well as a moderate revenue growth.

因此，這將是一個相當穩定的成本基礎以及適度的收入成長。

So if you run the numbers, hopefully we'll be able to get closer to profitability and even improve the profitability plus the second half of the year.

因此，如果你計算一下數字，希望我們能更接近獲利，甚至在今年下半年提高獲利能力。

But as to Q1, to be challenging, to achieve profitability in Q1, given the revenue dip.

但就第一季而言，鑑於收入下降，實現第一季獲利具有挑戰性。

Yes, please answer first question.

是的，請回答第一個問題。

Yes, about hoping China internet companies going overseas.

是的，關於希望中國網路公司走向海外。

I think we are in a very strong, unique position to help them because on one side, we do have a strong and up very influential customer base in China Internet industry.

我認為我們處於非常強大、獨特的地位來幫助他們，因為一方面，我們確實在中國互聯網行業擁有強大且非常有影響力的客戶群。

A lot of them were actively planning going overseas are expanding in our global market.

他們中的許多人正在積極計劃出海，正在擴大我們的全球市場。

While we help them, we can leverage a lot of our existing partnership and customer base knowledge and market knowledge with our global practice with local customer base and market already.

在我們幫助他們的同時，我們可以利用我們現有的合作夥伴關係以及客戶群知識和市場知識，以及我們已經與當地客戶群和市場進行的全球實踐。

And we have been helping people with all those knowledge and the know-how already and those are the unique advantage we could to help them to grow into a bigger global market.

我們一直在幫助擁有所有這些知識和技能的人們，這些是我們可以幫助他們成長為更大的全球市場的獨特優勢。

And in terms of revenue split, we don't think it will change very significantly, however we do, what we are looking more optimistic in terms of Agora business given especially the resilience we are seeing in the US market and other developed market and also some of the emerging use cases we see their, and as Tony mentioned earlier, the exit that also give us additional room to grow in those markets.

就收入分配而言，我們認為它不會發生太大變化，但我們確實對 Agora 業務感到更加樂觀，特別是考慮到我們在美國市場和其他已開發市場看到的彈性，以及正如托尼之前提到的，我們看到的一些新興用例的退出也為我們在這些市場中提供了額外的成長空間。

So we expect a moderate increase in terms of the [presentation] from the contribution coming from the acquired businesses as we move along in 2024.

因此，我們預期隨著 2024 年的進展，所收購業務的貢獻將適度增加。

About the windfall the revenue model is going to be similar to what we do, we are still going to be enable use cases and customers by selling at retail base capabilities, although with increased offerings from our overall product portfolio, we might have a more diverse pricing model with all the different SKUs, different product we are selling into.

關於意外之財，收入模式將與我們所做的類似，我們仍然將透過在零售基礎能力上銷售來支援用例和客戶，儘管隨著我們整體產品組合中產品的增加，我們可能會透過更加多樣化的產品我們銷售的所有不同 SKU、不同產品的定價模式。

But overall, it will tie to consumer usage on various fronts.

但總體而言，它將與消費者在各個方面的使用情況相關。

And in midterm to long term, we do see the powerful impact were, therefore can enable a lot more attractive use cases, new use cases or make some new use cases more valuable or more meaningful for consumer or business use cases were, we wouldn't be able to support both like persona based social interactions, or business operations in that platform.

從中長期來看，我們確實看到了強大的影響，因此可以實現更具吸引力的用例、新用例，或使一些新用例對消費者或企業用例更有價值或更有意義，我們不會這樣做。無法支援基於角色的社交互動或該平台中的業務運營。

So we also anticipate a lot of other XR device were catching up with play -- catch-up with the recall.

因此，我們也預計許多其他 XR 設備正在趕上召回的步伐。

So to make this a capability it to be available, more widely for customers and the consumers.

因此，為了使這項功能能夠更廣泛地供客戶和消費者使用。

Thank you.

謝謝。

Can I follow-up with one quick question.

我可以接著問一個簡單的問題嗎？

When Jingbo mentioned the OpEx will be flattish.

當Jingbo提到OpEx將持平。

Do mean that's flattish versus 2023 full year or flattish versus last quarter in 2023 because the over the past year, the sequential quarterly OpEx has been on a downward trend.

這確實意味著與 2023 年全年相比持平，或與 2023 年最後一個季度持平，因為在過去一年中，季度營運支出一直呈下降趨勢。

So I would like to clarify whether it's a year on year or better of first quarter?

所以我想澄清一下是年比還是第一季更好？

Thank you.

謝謝。

The base will be first quarter would probably not be exactly the same.

第一季的基礎可能不會完全相同。

It might fluctuate a bit, but it will not be significantly higher from the backing in Q4.

它可能會有點波動，但不會比第四季的支援大幅上漲。

Got it.

知道了。

Thank you.

謝謝。

[Yalin Zhuang], Bank of America.

[莊亞林]，美國銀行。

Thanks, management for taking my questions.

謝謝管理層回答我的問題。

I also have three questions.

我也有三個問題。

The first one is on the demand outlook.

第一個是關於需求前景。

Could management share more color on the demand outlook, competition, landscape and price trend in both overseas and domestic market.

管理層能否分享更多有關海外和國內市場的需求前景、競爭、格局和價格趨勢的資訊。

And the second question is what this management see the potential impact of business from the open area -- open AI video generator and so on.

第二個問題是，管理階層如何看待開放領域業務的潛在影響——開放人工智慧影片產生器等。

And the third question is on the potential market share gain.

第三個問題是潛在的市場佔有率增益。

I imagine I said that the after the Twilio exiting the market the company could potentially (technical difficulty) how the Agora seize the opportunity and what is the current acceptance from the customers transiting from Twilio service to our service?

我想我說過，Twilio退出市場後，公司可能（技術難度）Agora如何抓住機會，目前從Twilio服務轉移到我們服務的客戶接受度如何？

Thank you.

謝謝。

All right.

好的。

I'll take those questions.

我會回答這些問題。

First of all in terms of the market and competitive landscape we see in US in the international markets, we do see strong growth momentum in media and entertainment sector and telehealth verticals, not shocking IoT, particularly in our developed market.

首先，就我們在美國看到的國際市場的市場和競爭格局而言，我們確實看到媒體和娛樂產業以及遠距醫療垂直領域的強勁成長勢頭，而不是令人震驚的物聯網，特別是在我們的已開發市場。

Those are the areas that we see our strong growth momentum.

這些是我們看到強勁成長勢頭的領域。

Pricewise, we see more pressure in emerging market where it's impacted by macro environment, including the currency exchange rate etc. Price has been healthy and stable in developed for the market, US and European market.

價格方面，我們看到新興市場的壓力更大，受宏觀環境的影響，包括貨幣匯率等。已開發市場、歐美市場的價格一直健康穩定。

About Twilio's asset, however what we're seeing in terms of competition Twilio asset is only for fine of competitors leaving the market is not as clear.

關於 Twilio 的資產，但是我們在競爭方面看到的 Twilio 資產只是為了對競爭對手離開市場進行罰款，這一點還不清楚。

There are other start-up competitors who are struggling and downsizing of their operations.

還有其他新創競爭對手正在苦苦掙扎並縮小業務規模。

We expect we will be gaining market share with those tenders.

我們預計我們將透過這些招標獲得市場份額。

In tele markets we see growth potentials in going overseas, all the special internet companies in our base in China now looking heavily in going overseas expansion.

在電信市場，我們看到了出海的成長潛力，我們在中國基地的所有特殊網路公司現在都在大力尋求海外擴張。

And other also digital transformation is still on having a clear trend to grow and, also IoT side of the customer base are seeing more actively growth overall usage in both market, we're actually seeing still growing despite all the regulatory and macro changes, which is the foundation of overall customer value growth and revenue growth.

其他數位轉型仍然有明顯的成長趨勢，而且客戶群的物聯網方面也看到兩個市場的整體使用量增長更加積極，我們實際上看到儘管有所有監管和宏觀變化，但仍在增長，這是整體客戶價值成長和收入成長的基礎。

Price-wise in China market generally drops about 10% over the last few years and often happens in beginning of the year.

中國市場的價格在過去幾年普遍下降10%左右，並且經常發生在年初。

This puts some pressure to our Q1 results, together with the seasonality issue of like Chinese New Year activity change or customer behavior change, but our gross margin remains quite healthy.

這給我們第一季的業績帶來了一些壓力，再加上農曆新年活動變化或客戶行為變化等季節性問題，但我們的毛利率仍然相當健康。

In terms of our competitive landscape is largely unchanged internal market during the past quarter.

就我們的競爭格局而言，上個季度內部市場基本上沒有變化。

While there are -- we continue to see there are more competitors kind of backing off which in last quarter we see another large internet company reduce their team in this area in Q4.

雖然有 - 我們繼續看到有更多的競爭對手有所退縮，在上個季度我們看到另一家大型互聯網公司在第四季度減少了該領域的團隊。

I expect markets to continue to consolidate.

我預計市場將繼續整合。

The next question is about the latest open AI offering retail generation.

下一個問題是關於最新的開放式人工智慧產品零售世代。

I think this is only the very early stage of video format generation model, but we can see the huge potential and possibility life ahead.

我認為這只是視訊格式生成模型的非常早期的階段，但我們可以看到未來的巨大潛力和可能性。

Currently the model is able to generate a short video clips based on fax, image or video from prompting and can already be used in some of customers use case to enhance user experience.

目前，該模型能夠根據傳真、圖像或影片的提示生成短視訊剪輯，並且已經可以在一些客戶用例中使用，以增強用戶體驗。

For example, the virtual background of a video chat room or livestreaming session can be a short video clip generated by AI model, as overall background, it could be either realistic or imaginary to perfectly match the contact or topics of the channel, this will create more engaging and immersive experience for audience.

例如，視訊聊天室或直播會話的虛擬背景可以是AI模型生成的短視訊片段，作為整體背景，可以是現實的，也可以是虛構的，以完美匹配頻道的聯絡人或主題，這將創建為觀眾帶來更具吸引力和身臨其境的體驗。

In the future, we believe human user will be able to directly interact with AI models in voice and video format, as we mentioned before.

正如我們之前提到的，未來我們相信人類用戶將能夠以語音和視訊格式直接與人工智慧模型進行互動。

This will make us the crucial, the critical infrastructure as massive amount of data will flow between users and AI models in real time.

這將使我們成為至關重要的基礎設施，因為大量數據將在用戶和人工智慧模型之間即時流動。

Maybe to add a little Twilio's assets we think like I said, it's only nearly as fine of competitors leaving this market, their backing off or focusing on their more ministers business and I mentioned, we see this happens in both a global market and China market, including, let's say, US market it's not just Twilio.

也許要添加一點Twilio 的資產，我們認為就像我說的那樣，競爭對手離開這個市場，他們退縮或專注於他們更多的部長業務，這幾乎同樣好，我提到，我們看到這種情況發生在全球市場和中國市場，包括美國市場，不僅僅是 Twilio。

There are some other smaller competitors, also downsizing of staff working in this area.

還有一些其他規模較小的競爭對手，也在縮減該領域的員工規模。

The competitive environment with that we see is clearly improving.

我們看到的競爭環境正在明顯改善。

Of course, Twilio resizable customer base, which we already start to work on to convert them So this is a clear room for us to go into.

當然，Twilio 可調整客戶群規模，我們已經開始致力於將其轉變為客戶群，因此這是我們可以進入的明確空間。

Thank you guys.

感謝你們。

This is very clear.

這是非常清楚的。

Thank you.

謝謝。

(Operator Instructions) Bing Duan, Nomura.

（操作員指令）Bing Duan，Nomura。

Yes, hi.

是的，嗨。

Thank you management for the opportunity to ask the question.

感謝管理階層給我這個提問的機會。

Just a one follow-up question from me about the Twilio's exit in programmable video product segment.

我的一個後續問題是關於 Twilio 退出可編程視訊產品領域的。

So can you share more color about the reason behind this, is this more because of the competition -- the fiercer competition or because of the demand is not growing strongly in the US market.

那麼您能否多分享一下這背後的原因，這更多是因為競爭——競爭更加激烈，還是因為美國市場的需求成長不強勁。

And about we offer two months free customers switch from Twilio.

我們為客戶提供兩個月免費從 Twilio 切換的服務。

How do we think that would affect our user growth and top-line growth in the next one or two quarters?

我們認為這將如何影響我們未來一、兩個季度的用戶成長和營收成長？

Thank you.

謝謝。

I do think our two newest assets are mainly because of a fierce competition in this area because as we rationally update, this area is a very tech-savvy sector where is all offerings requires a lot of investment in technology and product from competitors' products only build on top of what we see open source projects or steam coal, rather clean, a layer of technology add-ons, which can open a store, a friction part of the demand for our RTE use cases, which, of course, limited their ability to expand and grow in this area.

我確實認為我們的兩個最新資產主要是因為該領域的激烈競爭，因為隨著我們的理性更新，該領域是一個非常精通技術的領域，所有產品都需要對競爭對手產品的技術和產品進行大量投資建立在我們所看到的開源專案或蒸汽煤之上，相當乾淨，是一層技術附加組件，可以開設一家商店，這是我們 RTE 用例需求的摩擦部分，這當然限制了它們在此領域擴展和發展的能力。

And especially for a company like Twilio’s, they might want to be more focused on their mainstream business.

尤其是對於像 Twilio 這樣的公司，他們可能希望更專注於自己的主流業務。

I see that's the main reason, there could be a reason that COVID demand is also fading away.

我認為這是主要原因，也可能是新冠病毒需求逐漸消失的原因。

But as I mentioned, the earlier statement we while the COVID demand is fading away, we do see there are a growth -- were active use cases growth, in developer marketing and global market.

但正如我所提到的，我們先前的聲明雖然新冠病毒的需求正在消失，但我們確實看到了成長——開發者行銷和全球市場的活躍用例成長。

So I would rather just put that as another factor in their leaving.

所以我寧願把它當作他們離開的另一個因素。

In terms of our offerings, I do think the two months free offer for a lot of small, midsized customers is very important to our reason for them to consider and make them easier to decide to jump our Agora platform.

就我們的產品而言，我確實認為為許多中小型客戶提供兩個月的免費優惠對於我們讓他們考慮並讓他們更容易決定跳過我們的 Agora 平台非常重要。

We do have some other strengths and cooperations or work with -- rather large customer base, which our teams are focusing on to help them to, to migrate to our platform.

我們確實有一些其他的優勢和合作，或與相當大的客戶群合作，我們的團隊正在致力於幫助他們遷移到我們的平台。

Thank you very much.

非常感謝。

Thank you.

謝謝。

(Operator Instructions) I'm showing no further questions in the queue.

（操作員說明）我在隊列中沒有顯示任何其他問題。

This concludes our Q&A session.

我們的問答環節到此結束。

Thank you, everybody, for attending the company's call today.

謝謝大家今天參加公司的電話會議。

As a reminder, the recording in the earnings release will be available on the company's website at investor.agora.io and if there are any questions, please feel free to e-mail the company.

提醒一下，收益報告中的記錄將在公司網站 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。

Thank you and have a good day.

謝謝你，有美好的一天。