Agora Inc (API) 2024 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Agora Inc second quarter 2024 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 Agora Inc 2024 年第二季財務業績電話會議。（操作員指示）請注意，今天的會議正在錄音。

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

本公司的獲利新聞稿、獲利報告、美國證券交易委員會 (SEC) 文件以及今日電話會議的重播，均可在其投資者關係網站 investor.agora.io 上查閱。今天與我一同出席的還有創辦人、董事長兼執行長趙明。王靜波，該公司財務長。

The conciliations between the company's GAAP and non-GAAP results can be found in earnings press release. During this call, the company will make forward-looking statements about its future financial performance and other future events and trends. These statements are only predictions that are based on what the company believes today and actual results may differ materially.

公司的 GAAP 和非 GAAP 結果之間的調整可以在收益新聞稿中找到。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。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。

These forward-looking statements are subject to risk, 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 final prospectus relating to its initial public offering. Agora Inc remains no obligation to update any forward-looking statements the company make on today's call.

這些前瞻性陳述受可能影響公司財務績效和業務表現的風險、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以及與首次公開募股相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.

說完這些，讓我把麥克風交給東尼。你好，托尼。

Hi. Thanks, operator. And welcome, everyone, to our earnings call. First, our operating results in the past quarter. Agora revenue were $15.6 million in the second quarter, up 2% year-over-year, mainly driven by business extensions in certain use cases such as live shopping. Shengwang revenue were RMB132 million in the second quarter, up 0.3% year-over-year and 8% quarter-over-quarter, mainly due to usage growth of digital transformation and Internet of Things customers.

你好。謝謝，接線生。歡迎大家參加我們的收益電話會議。首先，我們上季的經營業績。Agora 第二季營收為 1,560 萬美元，年增 2%，主要得益於直播購物等特定用例的業務擴展。聲網第二季營收為1.32億元人民幣，較去年同期成長0.3%，季增8%，主要由於數位轉型及物聯網客戶使用量成長。

I'm glad to see that both Agora and Shengwang delivered year-over-year revenue growth despite a very challenging market environment. This success is due to our relentless innovation in driving new use cases and enhancing the quality and value of our products in existing use cases.

我很高興看到，儘管市場環境充滿挑戰，聲網和聲網的收入都實現了同比增長。這項成功歸功於我們不斷創新，推動新的用例，並提高現有用例中產品的品質和價值。

Now, moving on to our business products and technology updates for this quarter. Let's first talk about Agora. Recently, our real-time speech-to-text product transitioned from beta to general availability. As I mentioned in our previous earnings call, this product enables customers to transcribe the audio of each user in the channel. Text can be distributed as live caption to all channel participants to enhance accessibility and user experience.

現在，我們來介紹一下本季的業務產品和技術更新。我們先來聊聊Agora。最近，我們的即時語音轉文字產品已從測試版過渡到正式版。正如我在先前的財報電話會議上提到的，該產品使客戶能夠轉錄頻道中每個用戶的音訊。文字可以作為即時字幕分發給所有頻道參與者，以增強可訪問性和用戶體驗。

Throughout the development and beta testing stage, we have improved the performance of our product to accommodate up to three simultaneous speakers and added support for all major languages and dialects. Additionally, our product is integrated with large language models, allowing customers to receive automatically generated summaries of meetings or events and gain insights at the end of each session.

在整個開發和 beta 測試階段，我們改進了產品的性能，以容納最多三位同時發言者，並增加了對所有主要語言和方言的支援。此外，我們的產品整合了大型語言模型，使客戶能夠收到自動生成的會議或活動摘要，並在每次會議結束時獲得見解。

For example, HelloTalk, a leading language learning platform with more than 50 million users, has been one of our customers to first adopt our real-time speech-to-text product. With the integration of our product and a large language model, HelloTalk can now provide their users advanced capabilities, including live language analysis, live translation, language proficiency assessment, creating contextual and personalized learning experiences.

例如，擁有超過 5,000 萬用戶的領先語言學習平台 HelloTalk 是我們第一批採用即時語音轉文字產品的客戶之一。透過我們的產品和大型語言模型的整合，HelloTalk 現在可以為其用戶提供高級功能，包括即時語言分析、即時翻譯、語言能力評估、創建情境化和個人化的學習體驗。

Additionally, I'm happy to announce the launch of Agora's new website. At Agora, we believe all our customers are developers at heart. Recognizing the innovative spirit of our new website boosts an intuitive interface, enhanced navigation, and a more modern design to create a cool and sleek user experience. It also offers a wealth of resources tailored to both developers and key business decision makers.

此外，我很高興地宣布 Agora 新網站上線。在 Agora，我們相信所有客戶本質上都是開發人員。認識到我們新網站的創新精神，增強了直覺的介面、增強的導航和更現代的設計，以創造酷炫而時尚的用戶體驗。它還為開發人員和關鍵業務決策者提供了豐富的客製化資源。

Next, let's turn to Shengwang. We are excited to announce our recent partnership with Unity China to integrate our in-game voice calling capabilities in Unity China's UOS engine. This collaboration allows game developers to seamlessly add multi-player voice channels into their games. It is especially appealing to small game studios and intervention developers who often lack the skill set and resources to address all technical challenges on their own.

接下來我們再來談談聲望。我們很高興地宣布我們最近與 Unity China 建立合作夥伴關係，將我們的遊戲內語音通話功能整合到 Unity China 的 UOS 引擎中。此次合作使遊戲開發者能夠無縫地將多人語音通道添加到他們的遊戲中。它對小型遊戲工作室和乾預開發商尤其有吸引力，因為他們通常缺乏獨自解決所有技術挑戰的技能和資源。

In addition, our proprietary advanced features such as 3D spatial audio, AI noise suppression, and echo cancellation are available to developers, enabling them to create immersive experiences for players. In this quarter, we have also facilitated wider application of AI in our customers' use cases.

此外，我們還為開發人員提供專有的高級功能，如 3D 空間音訊、AI 雜訊抑制和迴聲消除等，使他們能夠為玩家創造身臨其境的體驗。本季度，我們也促進了人工智慧在客戶用例中的更廣泛應用。

For example, we helped XiaoTianCai to add real-time transcription for video calling in their latest flagship smartwatch. Previously, when users conducted video calls on a smartwatch in a noisy environment, it was often difficult to hear the other party clearly. Moving the wrist and watch closer to the ear would make it impossible to see video on the screen, therefore forcing users to make a hard choice between audio and video.

例如，我們幫助小天才在其最新的旗艦智慧手錶中添加了視訊通話的即時轉錄功能。在此之前，用戶在吵雜的環境中透過智慧手錶進行視訊通話時，往往很難聽清對方的聲音。將手腕和手錶移近耳朵會導致無法在螢幕上看到視頻，因此迫使用戶在音頻和視頻之間做出艱難的選擇。

Now, with our cloud AI real-time transcription capabilities, users can enjoy video calls with captions on their smartwatch, significantly enhancing their user experience. Last September, we became the first company to offer a real-time voice SDK that enables conversation with generative AI models.

現在，借助我們的雲端 AI 即時轉錄功能，用戶可以在智慧手錶上享受帶有字幕的視訊通話，從而顯著提升用戶體驗。去年 9 月，我們成為第一家提供即時語音 SDK 的公司，該 SDK 可與生成式 AI 模型進行對話。

Since then, we have facilitated our customers to launch conversational AI applications in various use cases, such as AI campaigning, productivity assistant, language tutor, and customer service. Although these applications are still in their early stage, we have already seen promising user adoption and engagement trend.

從那時起，我們就幫助客戶在各種用例中推出對話式人工智慧應用程序，例如人工智慧競選、生產力助理、語言導師和客戶服務。儘管這些應用程式仍處於早期階段，但我們已經看到了良好的用戶採用和參與趨勢。

Looking forward, we are committed to staying at the forefront of technology advancement to enable developers to innovate at a faster pace and build the conversational AI application of tomorrow. This year marks the 10th anniversary of our iconic real-time engagement or RTE conference.

展望未來，我們致力於走在技術進步的前沿，使開發人員能夠以更快的速度進行創新，並建立未來的對話式人工智慧應用程式。今年是我們標誌性的即時互動或 RTE 會議的十週年。

This coming October, we will host our RTE conference in Beijing, focusing on the intersection of AI and RTE technologies and the exciting possibilities that lie ahead. Experts and practitioners from both the AI and RTE community will gather to share their vision and efforts to create revolutionary technologies, products, and applications.

今年十月，我們將在北京舉辦 RTE 會議，重點關注 AI 與 RTE 技術的交叉以及未來令人興奮的可能性。來自人工智慧和 RTE 社群的專家和從業者將齊聚一堂，分享他們的願景和努力，以創造革命性的技術、產品和應用。

There will also be forums focusing on more traditional verticals, such as digital transformation, entertainment, education, and Internet of Things. We welcome you all to attend the conference and experience firsthand the vibrant spirit of the industry. Before concluding my prepared remarks, I want to thank both Agora and Shengwang teams for their hard work and commitment during the challenging period. Let's stay focused on creating long-term customer value and strengthen our leading market position.

還將舉辦關注更傳統垂直領域的論壇，例如數位轉型、娛樂、教育和物聯網。我們歡迎大家參加這次會議，親身感受充滿活力的產業精神。在結束我的準備好的演講之前，我想感謝 Agora 和聲網團隊在充滿挑戰的時期所做的努力和承諾。讓我們專注於創造長期客戶價值並鞏固我們領先的市場地位。

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

說完這些，讓我把事情交給靜波，他將審查我們的財務表現。

Thank you, Tony. Hello, everyone. Let me start by first reviewing financial results for the second quarter of 2024, and then I will discuss outlook for the third quarter. Total revenues were $34.2 million in the second quarter, an increase of 3.6% quarter-over-quarter, and an increase of 0.5% year-over-year. We have finally overcome the impact of the pandemic, the macroeconomic turmoil, and regulatory changes, and returned to a year-over-year revenue growth for the first time since 2021.

謝謝你，托尼。大家好。首先，我回顧 2024 年第二季的財務業績，然後討論第三季的展望。第二季總營收為 3,420 萬美元，季增 3.6%，年增 0.5%。我們終於克服了疫情、宏觀經濟動盪和監管變化的影響，實現了2021年以來收入首次同比增長。

Agora revenues were $15.6 million in the second quarter, a decrease of 1.3% quarter-over-quarter, and an increase of 2% year-over-year. The quarter-over-quarter decrease was primarily due to reduced usage from customers in emerging markets. The year-over-year increase was primarily due to business expansion and usage growth in certain verticals, such as live shopping.

Agora 第二季營收為 1,560 萬美元，季減 1.3%，較去年同期成長 2%。環比下降主要是由於新興市場客戶的使用量減少。同比成長主要歸因於業務擴張和某些垂直領域的使用量成長，例如直播購物。

Show on revenues were RMB131.9 million in the second quarter, an increase of 7.6% quarter-over-quarter, and an increase of 0.3% year-over-year. Increase were primarily due to increasing revenues from certain verticals, such as internet of things. Dollar-based net extension rate is 92% for Agora and 79% for Shengwang, excluding revenues from discontinued business.

第二季演出營收為1.319億元，季增7.6%，年增0.3%。成長主要是由於物聯網等某些垂直領域的收入增加。不包括已停止業務的收入，基於美元的淨延長率為：聲網為 92%，聲網為 79%。

Moving on to cost expenses, for my following comments, I will focus on non-GAAP adjusted financial measures, which exclude share-based compensation expenses, acquisition related expenses, compensation 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.

談到成本費用，在接下來的評論中，我將重點關注非公認會計準則調整後的財務指標，這些指標不包括股權激勵費用、收購相關費用、收購無形資產的補償費用、與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銷。

Adjusted gross margin for the second quarter was 63.4%, which was 3.8% lower than Q2 last year and 0.2% higher than Q1 this year. The year-over-year decrease was mainly due to changing pandemics. The quarter-over-quarter increase was mainly due to improving utilization rate of infrastructure.

第二季調整後毛利率為63.4%，較去年同期下降3.8%，較今年第一季上升0.2%。年比下降主要是由於疫情變化所致。環比成長主要由於基礎設施利用率提高。

Adjusted R&D expenses decreased 6.6% year-over-year to $15.5 million in Q2, mainly due to continuous cost improvement measures. Adjusted R&D expenses represented 45.4% of total revenues in the quarter compared to 48.8% in Q2 last year. Adjusted sales and marketing expenses were $5.9 million in Q2, decreased to 16.9% year-over-year.

第二季調整後的研發費用年減 6.6% 至 1,550 萬美元，主要由於持續的成本改善措施。調整後的研發費用佔本季總營收的 45.4%，去年第二季為 48.8%。第二季調整後的銷售和行銷費用為 590 萬美元，年減 16.9%。

Sales and marketing expenses represented 17.3% of total revenues in the quarter compared to 20.9% in Q2 last year. Adjusted G&A expenses were $6.6 million in Q2, slightly increased 6.5% year-over-year, primarily due to increase of expected credit loss. G&A expenses represented 19.1% of total revenues in the quarter compared to 18.2% in Q2 last year.

本季銷售和行銷費用佔總收入的 17.3%，而去年第二季為 20.9%。第二季調整後的一般及行政費用為 660 萬美元，較去年同期略有增加 6.5%，主要原因是預期信用損失增加。本季一般及行政費用佔總營收的 19.1%，去年第二季為 18.2%。

Overall, adjusted operating expenses were 6.1% lower than the same period last year, thanks to a defective cost control. Adjusted operating expenses were 2.2% higher than Q1 this year. The sequential increase was mainly because we decided to replace certain share-based compensation with cash compensation for employees in order to reduce dilution for our shareholders when shares are trading at below cash value.

總體而言，由於成本控制得當，調整後的營業費用比去年同期下降了 6.1%。調整後的營業費用比今年第一季高出 2.2%。環比成長主要是因為我們決定用現金補償取代部分以股票為基礎的薪酬，以便在股票交易價格低於現金價值時減少股東的稀釋。

Adjusted EBITDA was net $6 million, translating to a 17.6% adjusted EBITDA loss margin for the quarter compared to 19.5% in Q2 last year. Non-GAAP net loss was $6 million in Q2, translating to a 17.5% net loss margin for this quarter, lower than the net loss margin of 19.4% in Q2 last year.

調整後的 EBITDA 淨額為 600 萬美元，相當於本季調整後的 EBITDA 虧損率為 17.6%，而去年第二季為 19.5%。第二季非公認會計準則淨虧損為 600 萬美元，相當於本季淨虧損率為 17.5%，低於去年第二季 19.4% 的淨虧損率。

Now turning to cash flow. Operating cash flow was negative $7.6 million in Q2 compared to negative $5.3 million last year. Free cash flow was negative $7.9 million compared to negative $5.6 million last year.

現在轉向現金流。第二季經營現金流為負 760 萬美元，去年同期為負 530 萬美元。自由現金流為負 790 萬美元，去年同期為負 560 萬美元。

Moving on to balance sheet, we ended Q2 with $371 million in cash, cash equivalents, bank deposits, and financial products issued by banks, or $4.03 per ADS. Net cash offload in the quarter was mainly due to free cash flow of negative $7.9 million and repurchase of $2.3 million.

再來看資產負債表，我們在第二季結束時擁有 3.71 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，即每股 ADS 4.03 美元。本季淨現金流出主要由於自由現金流為負 790 萬美元以及回購 230 萬美元。

Now turning to guidance, for the third quarter of 2024, we currently expect total revenues to be between $31.5 million and $33.5 million. This forecast reflects enough sale of certain products with unsatisfactory profitability. Such products generated approximately $2.4 million of revenue in the third quarter of 2023, and $3.3 million of revenue in the second quarter of 2024.

現在談到指導，對於 2024 年第三季度，我們目前預計總收入將在 3,150 萬美元至 3,350 萬美元之間。這項預測反映出某些產品的銷售量足夠，但獲利能力卻不盡人意。這類產品在 2023 年第三季創造了約 240 萬美元的收入，在 2024 年第二季創造了 330 萬美元的收入。

The average cost margin of such products was below 10%. So we expect enough sale of such products will lead to a meaningful increase in our gross margin and a positive impact on bottom line in the third quarter. This outlook also reflects our current and preliminary views on the market and operating conditions which are subject to change.

此類產品的平均成本利潤率低於10%。因此，我們預計此類產品的足夠銷售將導致我們的毛利率大幅增加，並對第三季的利潤產生積極影響。這項展望也反映了我們對市場和經營狀況的當前和初步看法，這些看法可能會改變。

In closing, returning to year-over-year growth is an inspiring turning point under a challenging operating environment. We are excited about emerging use cases, especially the intersection between real-time engagement and conversational AI. And we remain confident about our long-term growth potential.

最後，在充滿挑戰的經營環境下，恢復年成長是一個令人鼓舞的轉捩點。我們對新興的用例感到興奮，尤其是即時參與和對話式人工智慧之間的交集。我們對我們的長期成長潛力仍然充滿信心。

Thank you to both the Agora and Shengwang teams for your hard work and contribution during this period. Thank you everyone for attending the call today. Operator, let's open it up for questions

感謝Agora和聲網團隊在此期間的辛勤工作和貢獻。感謝大家今天參加電話會議。接線員，讓我們開始提問

(Operator Instructions) Yang Liu, Morgan Stanley.

（操作員指示） Yang Liu，摩根士丹利。

Good morning. Thanks for the opportunity to ask questions. I have two questions here. The first is regarding the business outlook. As Jingbo just mentioned that you faced some of the low-margin business. Could you please elaborate more about the reason behind that, related to the competition or the outlook of that business?

早安.感謝給我提問的機會。我這裡有兩個問題。首先是關於業務前景。正如靜波剛才所提到的，你們面臨一些低利潤的業務。您能否詳細說明一下這背後的原因，與競爭或業務前景有關？

You mentioned that that business has a quite low growth margin and I'm not sure whether that business OP margin or net margin is also very bad or what is the potential impact to the bottom line. And the second question is based on the company's pipeline, what is your expectation of the future of emerging applications or use cases for RTE or whatever AI-related application? If you see any potential booming of the RTE usage, could you please share more about that? Thank you.

您提到該業務的成長率相當低，我不確定該業務的營業利潤率或淨利潤是否也非常糟糕，或者對底線有何潛在影響。第二個問題是基於公司的管道，您對 RTE 或任何 AI 相關應用程式的新興應用程式或用例的未來有何預期？如果您發現 RTE 使用量可能出現激增，能否分享更多相關資訊？謝謝。

Thank you. I'll take the first question. So, yes, RTE is already in the sale of certain products in this quarter. And these products we mentioned a few years back, these were more [XTDM] based technology. And given how competitive the market is, these products have pretty low cost margin in the low single-digit range. And there are also related other expenses.

謝謝。我來回答第一個問題。所以，是的，RTE 本季已經開始銷售某些產品。我們幾年前提到的這些產品，都是基於 [XTDM] 的技術。考慮到市場的競爭程度，這些產品的成本利潤率相當低，僅為個位數。另外還有其他相關的費用。

So, actually, on a net operating margin basis, it's close to even slightly negative. And as we know, we have been very focused on improving the overall operating efficiency and drive business towards sustained profitable growth. And that's why we believe this business is not generating profit.

因此，實際上，以淨營業利潤率計算，它接近甚至略微為負。眾所周知，我們一直非常注重提高整體營運效率並推動業務實現持續獲利成長。這就是我們認為這項業務沒有產生利潤的原因。

And we don't see that market turning around very quickly in the near term. And that's why we decided to basically terminate the sale of such products. That doesn't mean we will exit the entire kind of this medium-latency live streaming market.

我們認為短期內市場不會快速改善。這就是我們決定基本上停止銷售此類產品的原因。這並不意味著我們將退出整個中等延遲的直播市場。

We are doing other innovative products, not based on the traditional XTDM technology, but more based on the RTC-related technology. So, we continue to be competing in the market, but we will be more focused on innovation rather than offering more traditional and legacy products.

我們在做其他創新產品，不是基於傳統的XTDM技術，而是更基於RTC相關的技術。因此，我們將繼續在市場上競爭，但我們將更注重創新，而不是提供更傳統和遺留的產品。

I'll take the general AI side of the question. We have been actively talking to leading large language modal companies globally with very positive feedback in general. The importance of multimodal capabilities and a highly reliable low-latency transmission network is well recognized by all players.

我將回答有關一般人工智慧方面的問題。我們一直在積極與全球領先的大型語言模式公司進行交流，整體而言獲得了非常正面的回饋。多模能力和高可靠低時延傳輸網路的重要性已得到各方的充分認可。

We are working closely with many of them to develop multimodal products and solutions. Some of our consumer applications have already -- some of there consumer applications integrated with our SDK. Meanwhile, we have also worked together in engaging with the AI developer community.

我們正在與其中許多公司密切合作，開發多式聯運產品和解決方案。我們的一些消費者應用程式已經——其中一些消費者應用程式與我們的 SDK 整合。同時，我們也與AI開發者社群進行了合作。

If you look at Hugg & Fizz, there are almost 500,000 different models. We have been working with them to engage with developer communities on that to bring the models into real use cases. We have also partnered with companies like SmallShot for the toy startup program to help developers to innovate. Please stay tuned for more announcements in our RT conference in October.

如果你看一下 Hugg & Fizz，你會發現它有近 500,000 種不同的型號。我們一直與他們合作，與開發者社群互動，將模型應用到實際用例中。我們也與 SmallShot 等公司合作進行玩具創業計劃，幫助開發人員進行創新。請繼續關注我們十月份 RT 會議上的更多公告。

Thank you.

謝謝。

(Operator Instructions) Daley Li, Bank of America Securities.

（操作員指示）美國銀行證券 Daley Li。

Hi, management. Thanks for taking my question. I have two questions here. Number one is about the revenue by segment. It seems that Shengwang Revenue is getting a stronger recovery in Q2 compared to Agora. What are the key drivers and how do we see the trend in Q3 for the domestic market and the international one?

你好，管理層。感謝您回答我的問題。我這裡有兩個問題。第一是各部分的收入。與聲網相比，聲網第二季的營收似乎復甦得更強勁。主要驅動因素有哪些？我們如何看待第三季國內市場和國際市場的趨勢？

The second question is about our work-even target as we have been trying to control the expenses and also kill down the low margin business. Do we have an update about the work-even target in the following quarters or sometime? Thank you.

第二個問題是關於我們的工作均衡目標，因為我們一直在努力控制開支，並減少低利潤業務。我們是否會在接下來的幾季或某個時候更新有關工作平衡目標的資訊？謝謝。

In terms of the Q3 demand for US and international markets, we see growth momentum in live shopping and IoT verticals, particularly in the developer market. Since we become the first company to offer real-time voice SDK that enables a conversation with generative AI models, competitors have also followed us and provide similar products. We believe this will be the new battlefield of RT.

就美國和國際市場第三季的需求而言，我們看到直播購物和物聯網垂直領域的成長勢頭，尤其是在開發者市場。自從我們成為第一家提供可與生成式 AI 模型對話的即時語音 SDK 的公司以來，競爭對手也紛紛效仿我們並提供類似的產品。我們相信這將成為RT的新戰場。

With our recent launch of our conversational AI framework, we will gain significant competitive edge to engage with AI developers and serve their applications. In the China market, we see growth potential in IoT customers. Also, some strong demand for conversational AI applications. Competitive landscape largely unchanged during the past quarter. Competitive pressure stabilized.

隨著我們最近推出的對話式人工智慧框架，我們將獲得顯著的競爭優勢，與人工智慧開發人員互動並為他們的應用程式提供服務。在中國市場，我們看到了物聯網客戶的成長潛力。此外，對話式人工智慧應用的需求也十分強勁。過去一個季度，競爭格局基本上沒有改變。競爭壓力趨於穩定。

Okay. I'll take the second question. From what we see right now, demand for our core products remain pretty robust. We do expect sequential revenue growth in Q3 compared to Q2 and hopefully Q4 compared to Q3 as well. The growth margin of our core products remain very healthy. So you will see a pretty nice uptick in the growth margin in Q3 and Q4.

好的。我來回答第二個問題。從目前的情況來看，我們核心產品的需求仍然相當強勁。我們確實預計第三季的營收將比第二季有所成長，並且希望第四季的營收也能比第三季有所成長。我們核心產品的成長速度仍然非常健康。因此，您會看到第三季和第四季的成長幅度出現相當不錯的上升。

As I mentioned, the combination of the low-margin products will not impact the bottom line. In terms of the OpEx, we'll continue to manage OpEx very cautiously, and we do not expect OpEx to be higher than Q2 in the coming quarters. If anything, we might try to further improve efficiency.

正如我所提到的，低利潤產品的組合不會影響底線。在營運支出方面，我們將繼續非常謹慎地管理營運支出，並且我們預計未來幾季的營運支出不會高於第二季。如果有的話，我們可能會嘗試進一步提高效率。

So at this point, I cannot promise exact timing of the gap break-even given there are still a lot of moving parts, but we are committed to achieving profitable and sustainable growth. So if we think about business, right, in this quarter, we return to year-over-year growth after a lot of the macro challenges, the pandemic, the macroeconomic environment in both China and in the US, getting all these rate hikes and funding environment changes and all the regulations.

因此，目前由於仍有許多不確定因素，我無法保證差距收支平衡的確切時間，但我們致力於實現盈利和可持續的成長。因此，如果我們考慮業務，那麼在本季度，在經歷了許多宏觀挑戰、疫情、中國和美國的宏觀經濟環境、所有這些加息和融資環境變化以及所有法規之後，我們恢復了同比增長。

So now we have finally come back to revenue growth, and we believe this is the turning point, and core business will continue to grow from this point on. And as we maintain our cost-based planning and drive efficiency, I believe it's just a matter of time before we achieve that goal, that break-even, and continue to grow from there. And in any case, we expect to achieve such a break-even on a GAAP basis and on a continued basis in 2025.

所以現在我們終於回到了營收成長的軌道，我們相信這是一個轉捩點，核心業務將從此時起繼續成長。只要我們保持基於成本的規劃並提高效率，我相信實現收支平衡並繼續增長的目標只是時間問題。無論如何，我們預計在 2025 年實現 GAAP 基礎上的收支平衡並持續保持收支平衡。

Well, thank you, Tony and Jingbo. Thank you.

好吧，謝謝你們，Tony 和 Jingbo。謝謝。

Thank you. And as there are no further questions, I want to thank everybody for attending the company's call today. As a reminder, the recording of the earnings release will be available on the company's website at investor.agora.io.

謝謝。由於沒有其他問題，我要感謝大家今天參加公司電話會議。提醒一下，收益報告的記錄將在公司網站 investor.agora.io 上提供。

And if there are any questions, please feel free to email the company. Thank you, everyone.

如果有任何疑問，請隨時給公司發送電子郵件。謝謝大家。