Agora Inc (API) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by, welcome to Agora Inc's first quarter 2024 financial results conference call. (Operator Instructions)

您好，感謝您的支持，歡迎參加 Agora Inc 2024 年第一季財務業績電話會議。（操作員指令）

Please be advised that today's conference is being recorded. The company's earnings results, press release, earnings presentations, SEC filing, and a replay of today's call can be found on its IR website at investor.agora.io.

請注意，今天的會議正在錄音。該公司的收益結果、新聞稿、收益報告、SEC 文件以及今天電話會議的重播均可在其 IR 網站 investor.agora.io 上找到。

Joining me today are Tony Zhao, 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.

今天與我一起參加的是創辦人、董事長兼執行長趙托尼；王靜波，該公司財務長。該公司的 GAAP 和非 GAAP 結果之間的對帳可以在其收益新聞稿中找到。在本次電話會議中，本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. These forward-looking statements are subject to risks uncertainties, assumptions and other factors that could affect the company's financial results and performance of its business and which the company discuss in detail in its filing with the SEC.

這些聲明僅是基於公司目前的看法而做出的預測，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公司財務表現和業務表現的因素的影響，公司在向美國證券交易委員會提交的文件中對此進行了詳細討論。

Including today's earnings press release and the risk factors and other information contained in the final prospectus relating to its initial public offering. Agora Inc, remain no obligations to update any forward-looking statements the company may make on today's call.

包括今天的收益新聞稿以及與其首次公開發行有關的最終招股說明書中包含的風險因素和其他資訊。Agora Inc. 沒有義務更新公司在今天的電話會議上做出的任何前瞻性陳述。

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

現在，讓我把話題交給東尼。你好，托尼。

Thanks operator, and welcome, everyone to our earnings call. I will first review our operating results in the past quarter. Agora revenues were $15.8 million in the first quarter, up 3% quarter-over-quarter. This is a great result, considering the macro-economic challenges under the high interest rate environment, and is mainly driven by usage growth from emerging use cases such as live shopping. As of the end of this quarter, Agora had over 1,700 active customers, up 16% compared to one year ago.

謝謝接線員，歡迎大家參加我們的財報電話會議。我將首先回顧我們上個季度的經營業績。Agora 第一季營收為 1,580 萬美元，季增 3%。考慮到高利率環境下的宏觀經濟挑戰，這是一個很好的結果，並且主要受到直播購物等新興用例的使用成長所推動。截至本季末，Agora 擁有超過 1,700 名活躍客戶，較一年前成長 16%。

Shengwang revenues were RMB122.6 million in the first quarter, down 16% year-over-year, mainly due to challenging macro-economic and regulatory environment, as well as the disposal of the customer engagement cloud in the first quarter of 2023. As of the end of this quarter, Shengwang had over 3,800 of active customers, down 2% compared to one year ago.

第一季聲網營收為人民幣1.226億元，年減16%，主要由於宏觀經濟及監管環境充滿挑戰，以及2023年第一季出售客戶互動雲端業務。截至本季末，聲網活躍客戶數逾3,800家，較去年同期下降2%。

Now moving on to our business, product, and the technology updates for this quarter. despite a challenging operating environment, we continued to focus on enhancing the fundamental performance of our products. In both markets, we released new versions of our SDKs that set new standards for stability and performance, demonstrating our strong commitment to creating long-term value for customers.

現在討論本季的業務、產品和技術更新。儘管經營環境充滿挑戰，我們仍持續致力於提升產品的基本效能。在這兩個市場，我們都發布了新版本的 SDK，為穩定性和性能設立了新的標準，彰顯了我們致力於為客戶創造長期價值的堅定承諾。

Let's first talk about Agora. We recently launched our adaptive video optimization technology that can deliver exceptional live video quality and enhance the overall user experience. It leverages our 10 years of real-world experience and expertise accumulated through hundreds of billions of minutes of video usage.

我們先來談談Agora。我們最近推出了自適應視訊優化技術，可以提供卓越的即時視訊品質並增強整體用戶體驗。它利用了我們透過數千億分鐘的影片使用累積的 10 年實際經驗和專業知識。

This advanced technology leverages wireless machine learning algorithms to dynamically adjust parameters and optimize performance at every step along the video processing pipeline. From the moment that video is captured through its final rendering and display on the viewers screen. Our technology continues to adapt to changing network conditions and device capabilities.

這項先進的技術利用無線機器學習演算法來動態調整參數並優化視訊處理流程每一步的效能。從影片被捕捉的那一刻起，到最終在觀眾的螢幕上渲染和顯示。我們的技術不斷適應不斷變化的網路條件和設備功能。

Our adaptive video optimization technology empowers our customer to differentiate their live video application in three key areas: optimized image quality, unmatched video fluency and ultra-low latency.

我們的自適應視訊優化技術使我們的客戶能夠在三個關鍵領域區分他們的即時視訊應用：優化的影像品質、無與倫比的視訊流暢度和超低延遲。

For example, KUMU, a social live streaming application, recently adopted our adaptive video optimization technology. Users now experience smooth, high0-quality video without freezing, even on older devices and with slow Internet connection. Since implementing our adaptive video optimization technology, KUMU has seen a 30% increase in session length and overall user engagement.

例如，社交直播應用程式 KUMU 最近採用了我們的自適應視訊優化技術。即使在較舊的設備和較慢的互聯網連接上，用戶現在也可以體驗流暢、高品質的視頻，不會出現卡頓。自從實施我們的自適應視訊優化技術以來，KUMU 的會話長度和整體用戶參與度增加了 30%。

This quarter, we also made concrete progress in engaging with Twilio customers as Twilio's programmable video product continues its sunset process. Additionally, we saw increased traffic to our websites and developer community, reflecting our growing mindshare amongst developers. I believe this will help us reach a broader spectrum of developers and customers going forward.

本季度，隨著 Twilio 可編程視訊產品繼續淘汰進程，我們在與 Twilio 客戶的合作方面也取得了切實的進展。此外，我們的網站和開發者社群的流量也有所增加，這反映出我們在開發者中的知名度不斷提高。我相信這將有助於我們在未來接觸更廣泛的開發者和客戶。

Last week, OpenAI launched GPT-4o a true end-to-end multimodal ChatGPT that can directly reason across audio, video, and text in real-time. It confirms our earlier prediction that generative AI models would soon gain the capabilities to interact with human users directly in voice or video format.

上週，OpenAI 推出了 GPT-4o，這是一個真正的端到端多模式 ChatGPT，可以直接即時推理音訊、視訊和文字。這證實了我們先前的預測，即生成式人工智慧模型將很快獲得以語音或視訊格式直接與人類用戶互動的能力。

We anticipate a paradigm shift in the interaction between human and AI models, which will inspire the next generation of killer apps. As this shift will lead to a substantial increase in the amount of voice and the visual feed transmitted globally in real time, the importance of a low latency and highly reliable transmission network will be higher than ever. This will put us in a unique position to become a critical infrastructure in the AI first future of human computer interaction.

我們預期人類與人工智慧模型之間的互動將發生範式轉變，這將激發下一代殺手級應用的誕生。由於這種轉變將導致全球即時傳輸的語音和視訊量大幅增加，低延遲、高可靠的傳輸網路的重要性將比以往任何時候都高。這將使我們處於獨特的地位，成為未來人機互動中人工智慧優先的關鍵基礎設施。

Now let's turn to Shengwang. We are thrilled to announce the launch of our new solution for live sports forecasting. This summer, major sports events such as the European Football Championships and the Paris Olympic Games will attract billions of viewers globally. Our cloud native solution is designed to provide an alternative to traditional satellite studio-based broadcasting.

現在我們再來看聲網。我們很高興地宣布推出新的體育賽事直播預測解決方案。今年夏天，歐洲足球錦標賽、巴黎奧運等大型體育賽事將吸引全球數十億觀眾。我們的雲端原生解決方案旨在為傳統衛星攝影棚廣播提供替代方案。

Compared to traditional solution that rely on satellite and private lines, our solution uses our global network and in-house algorithms to significantly reduce latency and enhance image quality. Apart from the technology -- apart from the technical advantage, our solution also offers cost savings and greater operating flexibility for our customers.

與依賴衛星和專線的傳統解決方案相比，我們的解決方案利用我們的全球網路和內部演算法來顯著減少延遲並提高影像品質。除了技術之外——除了技術優勢之外，我們的解決方案還為客戶節省成本並提供更大的操作靈活性。

Traditionally, hosts and commentators have to be in the same studio room or in the sports arena to cover a game. This approach incurs significant costs and also limits the number of competitors that can work simultaneously. So most of the time, viewers could only listen to the same commentators.

傳統上，主持人和評論員必須在同一個演播室或體育場內報道比賽。這種方法會產生巨大的成本，同時也限制了可以同時工作的競爭對手的數量。所以大多數時候，觀眾只能聽到同樣的評論員。

However, with our cloud broadcasting solution, hosts and commentators can now be anywhere with an internet connection. Our technology ensures that the video and audio feeds of commentators -- co-commentators in the same channel are highly synchronized with the sporting event of broadcasting.

然而，有了我們的雲端廣播解決方案，主持人和評論員現在可以在任何有網路連線的地方。我們的技術可以確保評論員（同一頻道內的共同評論員）的視訊和音訊與廣播的體育賽事高度同步。

As a result, many athletes, experts, and celebrities can create their own channel to cover the same game, allowing end users to choose their preferred commentators to enjoy the game.

因此，許多運動員、專家和名人可以創建自己的頻道來報導同一場比賽，讓最終用戶選擇自己喜歡的評論員來欣賞比賽。

Shengwang has partnered with leading sports forecasting platform in China to bring end users an elevated viewing experience for the upcoming European Football Championship and Paris Olympic Games this summer. I believe this new experience will trigger a major transformation in sport broadcasting, and our powerful, flexible, and cost-effective solution will become widely adopted by additional platforms to power many other live sporting events throughout the year.

聲網與中國領先的體育預測平台合作，為今年夏天即將舉行的歐洲足球錦標賽和巴黎奧運會為終端用戶帶來更高級的觀看體驗。我相信這種新的體驗將引發體育廣播的重大變革，我們強大、靈活且經濟高效的解決方案將被其他平台廣泛採用，為全年許多其他現場體育賽事提供支援。

In 2024, we'll continue to host our ChaoYinSu program, which strive to facilitate start-ups to explore and build innovative RTE applications. Over the past years, we have cooperated with renowned VC funds, ecosystem partners and industry leaders to build one-stop support to start-ups.

2024 年，我們將繼續舉辦「潮音素」計劃，致力於幫助新創公司探索和建立創新的 RTE 應用程式。多年來，我們與知名創投基金、生態系統合作夥伴和產業領袖合作，為新創公司提供一站式支援。

This year, we have all in Moonshot AI, a prominent player in foundation generated AI models, to accelerate development of applications that harness the power of RTE and generated AI. Participating start-ups will have access to Moonshot's latest functionalities and our full portfolio of product offerings as building blocks to bring their ideas to life.

今年，我們與基礎生成 AI 模型領域的傑出參與者 Moonshot AI 攜手，加速開發利用 RTE 和生成 AI 功能的應用程式。參與的新創公司將可以使用 Moonshot 的最新功能和我們的全套產品，作為將他們的想法變成現實的基礎。

We are excited to see what the innovative start-ups will create. I'll start-ups with the most compelling and groundbreaking applications will be showcased at our upcoming RTE conference in October.

我們非常期待看到創新新創企業將會創造出什麼。我們將在 10 月即將舉行的 RTE 會議上展示擁有最引人注目和突破性應用的新創公司。

Before concluding my prepared remarks, I want to thank both Agora and Shengwang teams for their hard work and commitment during this challenging period. Let's stay focused to strengthen our technology leadership and increased market share, meanwhile, moving toward sustained profitability in 2024.

在結束我的準備好的演講之前，我想感謝 Agora 和聲網團隊在這段充滿挑戰的時期的辛勤工作和承諾。讓我們集中精力加強我們的技術領導地位和提高市場份額，同時朝著 2024 年的持續盈利邁進。

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

說完這些，我現在把話題交給靜波，他將審查我們的財務結果。

Thank you Tony. Hello, everyone.

謝謝你，托尼。大家好。

Let me start by first reviewing financial results for the first quarter of 2024 and then I will discuss outlook for the second quarter.

首先，我來回顧 2024 年第一季的財務業績，然後再討論第二季的展望。

Total revenues were $33 million in the first quarter, a decrease of 8.4% quarter-over-quarter and a decrease of 9.4% year-over-year. Agora revenues were $15.8 million in the first quarter, an increase of 3.3% quarter-over-quarter and, an increase of 4.6% year-over-year. The increase was primarily due to the expansion and usage growth in certain verticals, such as live shopping, as well as business resilience in the US market and other developed markets.

第一季總營收為3,300萬美元，季減8.4%，年減9.4%。Agora 第一季營收為 1,580 萬美元，季增 3.3%，年增 4.6%。成長主要得益於直播購物等某些垂直領域的擴張和使用量成長，以及美國市場和其他已開發市場的業務韌性。

Shengwang revenues for RMB 122.6 million in the first quarter, a decrease of 17% quarter-over-quarter, and a decrease of 16% year-over-year. The quarter-over-quarter decrease was primarily due to seasonality since, Q4 is generally the high season for digital transformation projects and Q4 is generally the low season for social and education customers who tend to have lower usage during the Lunar New Year. The year-over-year decrease was primarily due to slowing demand from internet customers due to regulation and general economic conditions.

聲網第一季營收為1.226億元，季減17%，較去年同期下降16%。環比下降主要是由於季節性因素，因為第四季度通常是數位轉型專案的旺季，而第四季度通常是社交和教育客戶的淡季，這些客戶在農曆新年期間的使用率往往較低。年比下降主要是由於監管和總體經濟狀況導致網路客戶需求放緩。

Dollar-based net retention rate is 92% for Agora and 78% for Shengwang, excluding revenues from discontinued business.

不包括已停止業務的收入，以美元計算的淨留存率為，聲網為 92%，聲網為 78%。

Moving onto 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, depreciation of property and equipment and the amortization of that is right.

討論成本和費用。對於我接下來的評論，我將重點關注非 GAAP 調整後的財務指標，這些指標不包括股權激勵費用、收購相關費用、融資相關費用、攤銷、收購無形資產的費用、與收購無形資產相關的所得稅、財產和設備折舊以及攤銷。

Adjusted gross margin for the first quarter was 63.2%, which was 3.9% lower than Q1 last year and 2% lower than Q4 last year. The decrease were mainly due to a change in product mix and lower utilization rate of infrastructure in Q1.

第一季調整後毛利率為63.2%，較去年第一季下降3.9%，較去年第四季下降2%。下降主要由於第一季產品結構變化及基礎設施利用率下降。

Our adjusted R&D expenses decreased 13.6% year-over-year to $14.6 million in Q1. Adjusted R&D expenses represented 44.2% of total revenues in the first quarter, compared to 46.3% in Q1 last year.

我們第一季的調整後研發費用年減 13.6% 至 1,460 萬美元。調整後研發費用佔第一季總營收的 44.2%，而去年第一季為 46.3%。

Adjusted sales and marketing expenses were $6.3 million in Q1, decreased 25% year-over-year. Sales and marketing expenses represented 19.2% of total revenue in the quarter compared to 23% in Q1 last year.

第一季調整後的銷售和行銷費用為 630 萬美元，年減 25%。銷售和行銷費用佔本季總收入的 19.2%，去年第一季為 23%。

Adjusted G&A expenses were $6.5 million in Q1 slightly increased 6.6% year-over-year, primarily due to the increase of expected credit loss. G&A expenses represented 19.6% of total revenues in the quarter compared to 16.8% in Q1 last year.

第一季調整後的一般及行政開支為 650 萬美元，年比略有增加 6.6%，主要由於預期信用損失增加。本季一般及行政開支佔總營收的 19.6%，去年第一季為 16.8%。

Adjusted EBITDA was negative $6.1 million, translating to a 18.4% adjusted EBITDA loss margin for the quarter compared to 17.7% in Q1 last year. Non-GAAP net loss was $4.8 million in Q1, translating to a 14.5% net loss margin for the quarter, significantly lower than the net loss margin of 25.1% in Q1 last year.

調整後 EBITDA 為負 610 萬美元，本季調整後 EBITDA 虧損率為 18.4%，而去年第一季為 17.7%。第一季非公認會計準則淨虧損為 480 萬美元，相當於本季淨虧損率為 14.5%，大幅低於去年第一季 25.1% 的淨虧損率。

Now turning to cash flow. Operating cash flow was negative $6.5 million in Q1 compared to negative $8.9 million last year. Free cash flow was negative $7.1 million compared to negative $9.1 million last year.

現在轉向現金流。第一季經營現金流為負 650 萬美元，去年同期為負 890 萬美元。自由現金流為負 710 萬美元，去年同期為負 910 萬美元。

Moving on the balance sheet. We ended Q1 with $380.8 million in cash, cash equivalents, bank deposits, and financial products issued by banks, or $4.13 per ADS. Net cash inflow in the quarter was mainly due to deposit received in relation to the disposal of a small portion of land for headquarters project of $19.3 million, which was offset in part by free cash flow of negative $7.1 million and share repurchase $3.4 million.

繼續進行資產負債表工作。截至第一季末，我們持有的現金、現金等價物、銀行存款及銀行發行的金融產品總額為 3.808 億美元，合每股 ADS 4.13 美元。本季的淨現金流入主要由於收到的有關出售總部項目一小部分土地的 1,930 萬美元定金，但被負 710 萬美元的自由現金流和 340 萬美元的股票回購部分抵消。

Now turning to guidance for the second quarter of 2024, we currently expect total revenues to be between $34 million and $36 million. This forecast reflects our current and preliminary views on the market and operational conditions, which are subject to change.

現在談到 2024 年第二季的指引，我們目前預計總營收在 3,400 萬美元至 3,600 萬美元之間。此預測反映了我們對市場和營運條件的當前和初步看法，可能會發生變化。

In closing, we'll continue to focus on enhancing our technology, increasing our market share, and moving toward sustained profitability in 2024. Thank you to both Agora and Shengwang teams your hard work and contribution during this challenging period.

最後，我們將繼續專注於增強我們的技術，增加我們的市場份額，並在 2024 年實現持續獲利。感謝 Agora 和聲網團隊在這段充滿挑戰的時期的辛勤工作和貢獻。

Thank you everyone for attending the call today. Let's open up for questions.

感謝大家今天參加電話會議。讓我們開始提問吧。

(Operator Instructions) Yang Liu, Morgan Stanley.

(操作員指示) 摩根士丹利的劉洋。

Thanks, for the opportunity to ask question. Two questions here. The first one is on your customer base. We saw a sequential decline in the first quarter this year, mainly for the Shengwang parts. What is the reason for that? And is customer churn behind us or it will be an ongoing process? Yeah, that's the first question.

謝謝您給我提問的機會。這裡有兩個問題。第一個是關於您的客戶群。我們看到今年第一季出現了環比下降，主要是聲網零件的下降。這是什麼原因呢？客戶流失已經過去了還是會是持續的過程？是的，這是第一個問題。

The second one is on the outlook as the guidance implies some QonQ improvement on a year on year stabilization of total revenue. What is the driver even mainly helped by the Agora revenue or you are expecting the Shengwang parts can also recover in second quarter? Thank you.

第二個是關於前景，因為該指引暗示總收入將同比穩定，環比改善。驅動因素主要是什麼？謝謝。

Thank you. I'll take both those questions. So on the customer part, that's right in Q1 Shengwang revenue drop both sequentially and year over year. And the slight decrease in number of customers was actually in line with -- consistent with the decrease in revenue.

謝謝。我將回答這兩個問題。因此從客戶角度來看，聲網第一季的營收季減和年比均出現下降。顧客數量的輕微下降實際上與收入的下降是一致的。

Additionally, to provide some color on the overall macro backdrop, the tougher regulatory environment and also the generic macroeconomic environment in China. Means that a lot of the smaller social and entertainment start-ups and apps operating much more difficult environment and therefore, we see more churn due to customers' others revenues and business resident. So moving to our competitors. So we expect that to continue, but obviously, that should become more moderate in the coming quarters, thus on the customer base.

此外，為了對整體宏觀背景、更嚴格的監管環境以及中國的一般宏觀經濟環境提供一些介紹。這意味著許多規模較小的社交和娛樂新創公司和應用程式的營運環境更加困難，因此，我們看到由於客戶的其他收入和業務常駐而導致的更多客戶流失。因此轉向我們的競爭對手。因此，我們預計這種情況將會持續下去，但顯然，在未來幾個季度，這種情況會變得更加溫和，對客戶群而言。

In terms of outlook, we actually expect post Shengwang and Agora to have sequential improvement in Q2 and actually more on the Shengwang side and one more on the Shengwang side. This is as I explained Q1 is generally the low season for social and also education customers. So we normally see some pickup in Q2.

從前景來看，我們實際上預計聲網和Agora在第二季度將有連續的改善，而且聲網方面實際上會有所改善，聲網方面也會再改善一次。正如我所解釋的，第一季通常是社交和教育客戶的淡季。因此我們通常會在第二季看到一些回升。

And also for digital transformation customers generally, Q1 is the low season due to the New Year holiday, which means the project execution will be much slower. So we see -- we will see improvements on both Shengwang and Agora in Q2.

而且對於數位轉型客戶來說，一般來說，第一季由於新年假期是淡季，這意味著專案執行會慢得多。因此我們看到——我們將在第二季度看到聲網和Agora的進步。

Thank you.

謝謝。

(Operator Instructions) [Billie Li], Bank of America Securities.

(操作員指示)[Billie Li]，美國銀行證券。

Hi, management. Thanks for taking my question. I have two questions. Firstly, regarding the AI I imagine you mentioned there's more opportunities in this area. So could management give some more color on the AI, the incremental revenue, flexibility in future, in which scenarios we could see more meaningful revenue in the future from the AI?

你好，管理層。感謝您回答我的問題。我有兩個問題。首先，關於人工智慧，我想您提到過這個領域有更多的機會。那麼管理階層能否對人工智慧、增量收入、未來的彈性給予更多的說明，在哪些情況下我們可以從人工智慧中看到未來更有意義的收入？

My second question is about the expenses, the operating expenses. So we notice like a 1Q this year is at least there's some quarter on quarter increase for the operating expenses, especially like R&D. How do we see the trend in the following quarters for the expenses -- operating expenses? Thank you.

我的第二個問題是關於費用，營運費用。因此，我們注意到今年第一季的營運費用至少比上一季增加，尤其是研發費用。我們如何看待接下來幾季的支出—營運支出的趨勢？謝謝。

Okay, on the AI development is definitely more inclined. In the previous earnings calls we actually predicted that human users we will be able to drop it and interact with AI models in voice and video formats. Initially is a tax based but we consider it will happen in voice.

好的，在AI開發上肯定是更傾向於。在先前的財報電話會議上，我們實際上預測人類用戶將能夠放棄它，以語音和視訊格式與人工智慧模型進行互動。最初是基於稅收的，但我們認為它會以聲音的形式發生。

What happens was actually faster than we imagined. For the long term, particularly for all, is ahead of our expectations, thanks to the rapid evolution and the Google arm release of generating AI models. With generating AI models, multimodal capabilities there will be another dimension being added to our RTE activities.

事實上發生的事情比我們想像的還要快。從長遠來看，特別是對所有人來說，這都超出了我們的預期，這要歸功於人工智慧生成模型的快速發展和谷歌部門的發布。透過產生 AI 模型和多模式功能，我們的 RTE 活動將增加另一個維度。

RTE activities will expand from human to human, and human to machine or device to also include human to generating AI models. The scope of route of real time implement will give expand data. In the long run, this will hugely increase the amount of RTE activities and enrich's people's lives.

RTE 活動將從人與人之間、人與機器或設備之間擴展到人與生成 AI 模型之間。即時路由器的範圍將會給予擴展資料。從長遠來看，這將極大地增加RTE活動的數量並豐富人們的生活。

In the next few years, we'll be able to see many more use cases emerge and mature, such as AI based interactive education, customer service, personal assistant, social and gaming, use cases, voice and video conversations, we will become the new norm of interaction between human users and call agents powered by generating AI models.

在未來的幾年裡，我們將能夠看到更多的用例出現和成熟，例如基於AI的交互式教育，客戶服務，個人助理，社交和遊戲，用例，語音和視頻對話，我們將通過生成AI模型成為人類用戶和呼叫代理之間互動的新常態。

As a result, massive amount of real-time voice and video will flow through global internet and latency will become a critical factor. When introducing GPT4o, opening remarks actually mentioned it has an average response time of 320 milliseconds. However, when an overseas users talks with the model wrong trip transmission agency needs to be added on top of a models response business latency.

因此，大量的即時語音和視訊將透過全球網路流動，延遲將成為關鍵因素。在介紹GPT4o的時候，開場白其實提到了它的平均反應時間是320毫秒。然而，當海外用戶與模型對話時，錯程傳輸機構需要在模型回應業務延遲之上添加。

And the experience cloud and the experience could change from exceptional to and variable. To deliver a low latency, highly reliable and high-quality user experience. Our technology is the right choice for foundation model AI companies and for most companies who build applications on top of generative models.

並且體驗雲和體驗可以從卓越變為可變。提供低延遲、高可靠和高品質的使用者體驗。對於基礎模型 AI 公司以及大多數在生成模型上建立應用程式的公司來說，我們的技術是正確的選擇。

Thank you, Billie. So I'm tanking the question on the operating expenses. So I think in our last earnings call, we already explained that the low operating expenses was obviously due to a constant two measured by the same time, it was due to -- it was below the normal level due to a reversal of certain accrued expenses that we accrued year-end bonuses and performance bonus every quarter. But however, given the tough operating environment last year, and the final operating loss was below our internal budget.

謝謝你，比利。因此，我對有關營運費用的問題持保留態度。因此，我認為在我們上次的財報電話會議上，我們已經解釋過，較低的運營費用顯然是由於同時測量的兩個常數，這是由於 - 由於某些應計費用的沖銷，它低於正常水平，我們每個季度都提列了年終獎金和績效獎金。但不過，考慮到去年艱難的經營環境，最終的經營虧損低於我們的內部預算。

So the actual realized here and bonus, and performance bonus was lower than the earlier across growth. So there was some reversal in Q4 which caused the equal four, quarterly operating expenses at number we now. And that's why there was some small sequential increase from Q4 to Q1.

因此，這裡的實際實現獎金和績效獎金低於先前的整體成長。因此，第四季度出現了一些逆轉，導致了四個季度的營運費用與我們現在的數字相同。這就是為什麼第四季與第一季相比出現了小幅連續成長。

So looking for this year, we are still very cautious about the overall operating environment. So we'll continue to manage our expenses very carefully, and we do now expect OpEx in G&A, and including R&D expenses to increase sequentially from Q1 onward. And if anything, we will try to control the overall expenses.

所以展望今年，我們對整體的經營環境還是非常謹慎的。因此，我們將繼續謹慎地管理我們的開支，我們現在預計，一般及行政開支中的營運支出以及包括研發開支在內的開支將從第一季開始連續增加。如果有的話，我們會盡力控制整體開支。

Well, [Billie].

出色地，[比利]。

Thank you, Tony. Thank you Jingbo. Thank you.

謝謝你，托尼。謝謝靜波。謝謝。

Thank you for the questions. (Operator Instructions) There are no further questions. Thank you, everybody, for attending the company's call today. As a reminder, the call 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. Thank you.

感謝您的提問。（操作員指示）沒有其他問題。感謝大家今天參加公司的電話會議。提醒一下，收益報告中的通話記錄將在公司網站 investor.agora.io 上提供。如果您有任何疑問，請隨時給公司發送電子郵件。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。