Agora Inc (API) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by.

美好的一天，感謝您的支持。

Welcome to the Agora Inc. third quarter 2024 financial results conference call.

歡迎參加 Agora Inc. 2024 年第三季財務業績電話會議。

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

該公司的盈利結果、新聞稿、盈利演示、美國證券交易委員會 (SEC) 文件以及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。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的信念的預測，實際結果可能有重大差異。

These forward-looking statements are subject to risks and uncertainties, assumptions, and other factors that could affect the company's financial results and the performance of its business in 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.

這些前瞻性陳述受到風險和不確定性、假設以及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 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最終招股說明書中包含的與其首次公開發行相關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.

Agora Inc. 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。

With that, let me turn it over to Tony.

那麼，讓我把它交給東尼。

Hey, thanks, operator, and welcome everyone to our earnings call.

嘿，謝謝接線員，歡迎大家參加我們的財報電話會議。

I'll first review our operating results in the past quarter.

我首先回顧我們上個季度的經營業績。

Agora revenue were $15.7 million in the third quarter, up 3% year-over-year, mainly driven by business expansion in certain use cases, such as live shopping.

Agora 第三季營收為 1,570 萬美元，較去年同期成長 3%，主要受到直播購物等某些用例業務擴張的推動。

Show on revenue were RMB113 million in the second quarter, down 9% year-over-year, excluding revenues from certain end-of-sale low-margin products, mainly due to challenging regulatory and market environment.

第二季顯示營收為 1.13 億元，年減 9%（不包括某些終端銷售低利潤產品的收入），這主要是由於監管和市場環境充滿挑戰。

Now, moving on to our business products and technology updates for this quarter.

現在，繼續我們本季的業務產品和技術更新。

As many of you already know, we recently launched our conversational AI SDK in collaboration with OpenAI's Realtime API to allow developers to bring voice-driven AI experience to any application.

正如許多人所知，我們最近與 OpenAI 的 Realtime API 合作推出了對話式 AI SDK，讓開發人員能夠為任何應用程式帶來語音驅動的 AI 體驗。

Our joint solution has two distinct advantages.

我們的聯合解決方案有兩個明顯的優勢。

First, OpenAI's GPT-40 model is multi-modal, which means it can process voice input from humans directly without the need to convert voice to text, and therefore can understand and respond to human emotions much better than previous text-based models.

首先，OpenAI的GPT-40模型是多模態的，這意味著它可以直接處理人類的語音輸入，而不需要將語音轉換為文本，因此可以比以前基於文本的模型更好地理解和回應人類情感。

Second, end-user can enjoy Agora's advanced noise suppression and echo cancellation features, as well as low-latency conversation, even under challenging network conditions, thanks to our global real-time network and optimization algorithms.

其次，由於我們的全球即時網路和最佳化演算法，即使在具有挑戰性的網路條件下，最終用戶也可以享受 Agora 先進的噪音抑制和迴聲消除功能以及低延遲通話。

Since our joint launch with OpenAI in early October, we have seen many fascinating and innovative use cases being developed and brought to market by developers across various verticals.

自從 10 月初我們與 OpenAI 聯合推出以來，我們已經看到各個垂直領域的開發人員正在開發許多令人著迷的創新用例並將其推向市場。

One area where we believe conversational AI will have a significant impact is Internet of Things, or IoT.

我們相信對話式人工智慧將產生重大影響的一個領域是物聯網（IoT）。

Many of us have had unpleasant experiences with previous generation of so called smart speakers or smart assistants, which often struggle to understand our requests and lack ability to speak naturally or making real-time decisions.

我們中的許多人都對上一代所謂的智慧揚聲器或智慧助理有過不愉快的經歷，它們常常難以理解我們的請求，並且缺乏自然說話或做出即時決策的能力。

Now, with our conversational AI SDK, IoT devices connected to an advanced AI model can easily understand complex requests, hold natural conversations, and take actions based on live video feed.

現在，借助我們的對話式 AI SDK，連接到高級 AI 模型的物聯網設備可以輕鬆理解複雜的請求，進行自然的對話，並根據即時視訊來源採取行動。

For example, our customer, Miko, makes advanced educational robots for kids between the age of five and 10.

例如，我們的客戶 Miko 為 5 至 10 歲的兒童製造先進的教育機器人。

Previously, Miko used our video calling SDK to enable parents to monitor and talk to their children, and our signaling SDK to allow parents to move the robots around and follow a child during a video call.

此前，Miko 使用我們的視訊通話 SDK 來讓家長監控孩子並與孩子交談，並使用我們的訊號 SDK 讓家長在視訊通話期間移動機器人並追蹤孩子。

Thanks to our conversational AI SDK, Miko can now add interactive storytelling by advanced AI models in their content platform.

透過我們的對話式 AI SDK，Miko 現在可以在其內容平台中透過高級 AI 模型添加互動式故事講述。

The robot can adapt its response and behaviors based on a child's motion and interactions, providing a dynamic learning companion that grows with the child.

機器人可以根據孩子的動作和互動來調整其反應和行為，提供與孩子一起成長的動態學習伴侶。

Last month in Beijing, we hosted our 10 annual RTE conference with a focus on the interests of AI and RTE technologies.

上個月，我們在北京舉辦了第十屆 RTE 年度會議，重點關注人工智慧和 RTE 技術的利益。

Both registration and attendance hit record highs, demonstrating the industry-wide excitement around real-time conversational AI and continued interest from developers on RTE use cases.

註冊和出席人數均創下歷史新高，顯示全行業對即時對話人工智慧的興奮以及開發人員對 RTE 用例的持續興趣。

Its huge market potential and our unique place within its ecosystem.

其巨大的市場潛力以及我們在其生態系統中的獨特地位。

As a conference, we also demoed a conversational AI solution jointly developed with Minimax, a leading AI company.

作為會議，我們也示範了與領先的人工智慧公司Minimax共同開發的對話式人工智慧解決方案。

We believe that for conversational AI to succeed, there needs to be a vibrant ecosystem of foundational models and building blocks, such as text-to-speech, speech-to-text, streaming, orchestration, and other developer tools.

我們認為，對話式人工智慧要取得成功，需要一個充滿活力的基礎模型和建構模組生態系統，例如文字轉語音、語音轉文字、串流、編排和其他開發工具。

We are now working closely with several leading foundational model companies and other key players to build such an ecosystem together.

我們現在正在與幾家領先的基礎模型公司和其他主要參與者密切合作，共同建構這樣一個生態系統。

As part of this effort, we sponsored an open-source project in our developer community called Transformative Extension Network, or TEN for short.

作為這項工作的一部分，我們在開發者社群中贊助了一個名為 Transformative Extension Network（簡稱 TEN）的開源專案。

TEN is an orchestration framework for building AI agents with real-time multi-modal AI capabilities.

TEN 是一個編排框架，用於建立具有即時多模式 AI 功能的 AI 代理程式。

It supports integration with a wide range of large-language models, speech-to-text and text-to-speech extensions, and offers flexibility in edge cloud architecture.

它支援與各種大語言模型、語音到文字和文字到語音擴展的集成，並在邊緣雲架構中提供靈活性。

With TEN, developers can easily create AI agents that not only talk to users naturally, but also understand video feeds from a device camera.

借助 TEN，開發人員可以輕鬆創建 AI 代理，不僅可以自然地與用戶對話，還可以理解來自設備攝影機的視訊來源。

Throughout this process, our global network ensures high-performance and low-latency interaction between users and cloud-based AI models.

在整個過程中，我們的全球網路確保用戶與基於雲端的人工智慧模型之間的高效能和低延遲互動。

To summarize, we believe multi-modal AI agents that can interact with humans through natural voice will gain widespread adoption in many use cases such as customer support, education, and wellness.

總而言之，我們相信可以透過自然語音與人類互動的多模式人工智慧代理將在客戶支援、教育和健康等許多用例中獲得廣泛採用。

In these use cases, RTE technology is essential for enhancing the user experience to the point where AI agents can match and even outperform humans.

在這些用例中，RTE 技術對於增強用戶體驗至關重要，使人工智慧代理能夠匹配甚至超越人類。

This will drive significant usage growth and create new opportunities for the RTE industry.

這將推動使用量的顯著成長，並為 RTE 產業創造新的機會。

As an industry pioneer and leader, we are well-positioned to become a key infrastructure provider for real-time conversational AI.

作為行業先驅和領導者，我們有能力成為即時對話人工智慧的關鍵基礎設施提供者。

To support this vision, we recently made some structural changes aligning our organization to fully leverage the accelerating conversational AI opportunities and operate in a faster, leaner, and more responsive fashion.

為了支持這個願景，我們最近進行了一些結構性變革，使我們的組織能夠充分利用不斷加速的對話式人工智慧機會，並以更快、更精簡、更靈敏的方式運作。

These changes will help us build the next generation real-time engagement technology for the generative AI era and strengthen our position as a leader in real-time engagement space.

這些變化將幫助我們為產生人工智慧時代建立下一代即時參與技術，並鞏固我們作為即時參與領域領導者的地位。

Today, we also announced that Mr. Roger Hale will leave the company after serving 2.5 years as our Chief Security Officer.

今天，我們也宣布 Roger Hale 先生在擔任我們的首席安全官 2.5 年後將離開公司。

We are grateful for Roger's dedication and expertise.

我們感謝羅傑的奉獻精神和專業知識。

His leadership has been invaluable in strengthening our security and compliance foundation.

他的領導力對於加強我們的安全和合規基礎至關重要。

Moving forward, Patrick Farricher and Robin Liu will assume responsibility for Security and Compliance, and we will continue to uphold the highest standard to protect our customers and stakeholders.

展望未來，Patrick Farricher 和 Robin Liu 將負責安全與合規性，我們將繼續堅持最高標準來保護我們的客戶和利害關係人。

Roger will continue to provide strategic advices as an advisor to the company.

羅傑將繼續作為公司顧問提供策略建議。

Before concluding my prepared remarks, I want to thank both the Agora and Shenlong teams for their resilience, dedication, and belief in what we can accomplish together.

在結束我準備好的演講之前，我要感謝 Agora 和神龍團隊的韌性、奉獻精神以及對我們能夠共同實現目標的信念。

I believe we are well-positioned to harness emerging technologies and innovation to build the best real-time engagement experiences in the generative AI era.

我相信我們處於有利位置，可以利用新興技術和創新，在生成人工智慧時代打造最佳的即時參與體驗。

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

那麼，讓我把事情交給景波，他將透露我們的財務表現。

Thank you, Tony.

謝謝你，托尼。

Hello, everyone.

大家好。

Let me start by first revealing financial results for the third quarter of 2024, and then I will discuss outlook for the fourth quarter.

讓我先透露 2024 年第三季的財務業績，然後我將討論第四季的展望。

Total revenues were $31.6 million in the third quarter, a decrease of 7.7% quarter-over-quarter, and a decrease of 9.8% year-over-year.

第三季總營收為3,160萬美元，季減7.7%，年減9.8%。

If excluding revenues from certain end of fiscal year sales or marketing products, total revenues increased 2.3% quarter-over-quarter and decreased 3.1% year-over-year.

若剔除某些財年末銷售或行銷產品的收入，總收入較上季成長 2.3%，年減 3.1%。

Agora revenues were $15.7 million in the third quarter, an increase of 0.4% quarter-over-quarter, and an increase of 2.6% year-over-year.

Agora第三季營收為1,570萬美元，季增0.4%，較去年同期成長2.6%。

The increase was primarily due to business expansion and usage growth in certain verticals, such as live shopping.

這一增長主要是由於某些垂直行業（例如直播購物）的業務擴張和使用量增長。

Show more revenues were only $412.9 million in the third quarter, a decrease of 14.5% quarter-over-quarter, and a decrease of 20% year over year.

第三季營收僅4.129億美元，季減14.5%，年減20%。

If excluding revenues from certain end of sale or marketing products, show more revenues increased 4.2% quarter-over-quarter and decreased 8.7% year-over-year.

如果排除某些銷售或行銷產品終端的收入，則顯示更多收入較上季成長 4.2%，年減 8.7%。

The quarter-over-quarter increase was primarily due to increase in revenues from certain verticals, such as internet of things, as well as usage increase from education vertical during summer vacation.

環比成長主要是由於物聯網等某些垂直行業的收入增加，以及暑假期間教育垂直行業的使用量增加。

The year-over-year decrease was primarily due to slowing demand from social and entertainment verticals due to regulation and general economic conditions.

年比下降主要是由於監管和總體經濟狀況導致社交和娛樂垂直行業的需求放緩。

Dollar-based net rotation rate in 94% for Agora and 78% for Shengwang, excluding revenues from certain end of sale products and discontinued business.

以美元計算的淨週轉率為 Agora 94%，聲網為 78%，不包括某些終止銷售產品和終止業務的收入。

Moving on to cost expenses, as Tony mentioned just now, we made a difficult decision to restructure and reduce our global workforce this month.

接下來是成本支出，正如托尼剛才提到的，我們在本月做出了重組和減少全球勞動力的艱難決定。

The associated severance costs of $4.8 million are reflected in cost of revenues and operating expenses in Q3.

相關遣散費為 480 萬美元，反映在第三季的收入成本和營運費用。

As part of the restructuring, we also canceled certain equity awards for the remaining employees.

作為重組的一部分，我們也取消了剩餘員工的某些股權獎勵。

These awards were mostly granted in 2021 while stock price was significantly higher.

這些獎項大多是在2021年授予的，而股價卻明顯上漲。

As a result, share-based compensation expenses are locked in as a stock price at the time of the grant, although the cash value of the awards is much lower at today's stock price.

因此，儘管以今天的股價計算，獎勵的現金價值要低得多，但股權獎勵費用在授予時被鎖定為股價。

According to GAAP rules, the cancellation of these awards will cause immediate recognition of a share-based compensation expense for the remaining awards, which is $11.4 million.

根據 GAAP 規則，取消這些獎勵將導致立即確認剩餘獎勵的基於股份的補償費用，即 1,140 萬美元。

However, I want to

然而，我想

emphasize that these awards are simply canceled, so the company is not paying any stock, option, or cash to the relevant employees.

強調這些獎勵只是被取消，因此公司不會向相關員工支付任何股票、選擇權或現金。

In other words, there is no actual cost to the company.

換句話說，公司沒有實際成本。

The $11.4 million expenses in Q3 are only an accounting treatment.

第三季 1140 萬美元的支出只是會計處理。

Going forward, the cancellation of these awards will free us from this accounting burden.

展望未來，取消這些獎項將使我們擺脫會計負擔。

Both the restructuring, we expect to see savings on operating expenses of roughly $4 million in Q4 this year and $7 million in Q1 next year compared to the baseline in Q2 this year.

透過此次重組，我們預計與今年第二季的基準相比，今年第四季將節省約 400 萬美元的營運費用，明年第一季將節省約 700 萬美元的營運費用。

Gross margin for the third quarter was 66.7%, which was 2.7% higher than Q3 last year and 4.7% higher than Q2 this year.

第三季毛利率為66.7%，比去年第三季高出2.7%，比今年第二季高出4.7%。

The increase was mainly due to the end of sale of certain low-margin products, which was offset partially by higher severance costs in this quarter.

這一增長主要是由於某些低利潤產品的銷售結束，但本季遣散費上漲部分抵消了這一增長。

If we exclude severance of 0.3 million, pro forma gross margin is 67.7% for the third quarter.

如果排除30萬美元的遣散費，預計第三季毛利率為67.7%。

R&D expenses were $29.3 million in Q3, which included severance of $3.6 million and equity award cancellation expense of $9 million.

第三季的研發費用為 2,930 萬美元，其中包括 360 萬美元的遣散費和 900 萬美元的股權獎勵取消費用。

If we exclude these two items, pro forma R&D expenses decreased 17.1% year-over-year to $16.6 million in Q3, representing 52.5% of total revenue in the quarter compared to 57.2% in Q3 last year.

若排除這兩項，預計第三季研發費用將年減 17.1% 至 1,660 萬美元，佔該季度總收入的 52.5%，而去年第三季為 57.2%。

Sales and marketing expenses were $6.9 million in Q3, which included severance of $0.7 million.

第三季的銷售和行銷費用為 690 萬美元，其中包括 70 萬美元的遣散費。

If we exclude severance, pro forma sales and marketing expenses decreased 20.9% over year to $6.2 million in Q3, representing 19.6% of total revenue in the quarter compared to 22.2% in Q3 last year.

如果我們排除遣散費，預計第三季銷售和行銷費用將年減 20.9% 至 620 萬美元，佔本季總收入的 19.6%，而去年第三季為 22.2%。

G&A expenses were $9.7 million in Q3, which included severance of $0.1 million and equity award cancellation expense of $2.4 million.

第三季的一般管理費用為 970 萬美元，其中包括 10 萬美元的遣散費和 240 萬美元的股權獎勵取消費用。

If we exclude these two items, pro forma G&A expenses decreased 19.7% year-over-year to $7.3 million in Q3, representing 23.1% of total revenue in the quarter compared to 25.9% in Q3 last year.

如果我們排除這兩項，預計第三季的一般管理費用將年減 19.7% 至 730 萬美元，佔該季度總收入的 23.1%，而去年第三季為 25.9%。

Moving on to bottom line.

繼續討論底線。

Net loss for the quarter was $24.2 million.

該季度淨虧損為 2,420 萬美元。

If we exclude severance of $4.8 million, equity award cancellation expense of $11.4 million, net losses from equity in affiliates of $4.1 million, pro forma net loss was $3.9 million, translating to a 12.4% net loss margin for the quarter.

如果我們排除 480 萬美元的遣散費、1,140 萬美元的股權獎勵取消費用、410 萬美元的附屬公司股權淨虧損，預計淨虧損為 390 萬美元，表示該季度的淨虧損率為 12.4%。

Now turning to cash flow.

現在轉向現金流。

Operating cash flow was negative $4.6 million in Q3 compared to negative $3 million last year.

第三季營運現金流為負 460 萬美元，去年為負 300 萬美元。

Free cash flow was negative $6 million compared to negative $3.2 million last year.

自由現金流為負 600 萬美元，而去年為負 320 萬美元。

Moving on to balance sheet.

轉向資產負債表。

We ended Q3 with $362.6 million in cash, cash equivalents, bank deposits, and financial products issued by banks, or $3.94 per ADS.

第三季末，我們擁有 3.626 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，即每份美國存託憑證 3.94 美元。

Net cash outflow in the quarter was mainly due to free cash flow of negative $6 million and shared repurchase of $3.9 million.

該季度淨現金流出主要是由於自由現金流為負 600 萬美元和共享回購 390 萬美元。

During Q3, we repurchased approximately $6.8 million of our Class A ordinary shares, equivalent to $1.7 million ADS, or $3.9 million, representing 1.9% of our $200 million shared repurchase program.

第三季度，我們回購了約 680 萬美元的 A 類普通股，相當於 170 萬美元的美國存託股份，即 390 萬美元，占我們 2 億美元共享回購計畫的 1.9%。

So far, we have completed 57% of our shared repurchase program, which will expire at the end of February 2025.

到目前為止，我們已經完成了57%的共享回購計劃，將於2025年2月底到期。

And we intend to continue to undertake this meaningful capital return for our shareholders.

我們打算繼續為股東帶來有意義的資本回報。

Now turning to guidance, for the fourth quarter of 2024, we currently expect total revenues to be between $34 and $36 million, compared to $31.6 million in the third quarter of 2024, and $33.3 million in the fourth quarter of 2023.

現在轉向指導，我們目前預計2024 年第四季的總收入將在34 至3,600 萬美元之間，而2024 年第三季的總收入為3,160 萬美元，2023 年第四季的總收入為3,330 萬美元。

If revenues from certain end-of-sale low-margin products were excluded.

如果排除某些銷售結束後的低利潤產品的收入。

We also expect significant improvement in net income loss in the fourth quarter.

我們也預計第四季淨利潤虧損將顯著改善。

This outlook also reflects our current and preliminary view on the market operating conditions, which are subject to change.

這項展望也反映了我們對市場營運狀況的當前和初步看法，這些狀況可能會改變。

In closing, thank you to both Agora and Shenwang teams for your hard work and contribution during this period.

最後，感謝聲網和神網團隊在此期間的辛勤工作和貢獻。

Thank you everyone for attending the call today.

感謝大家參加今天的電話會議。

Let's open it up for questions.

讓我們打開它來提問。

(Operator Instructions) And our first question comes from the line of Xiaodan Zhang, Senior Associate.

（操作員說明） 我們的第一個問題來自資深律師張曉丹。

Thanks, management, for taking my question.

謝謝管理層回答我的問題。

And first of all, so I wonder what would be the impact of your recent organization on the earnings of the upcoming quarters?

首先，我想知道您最近的組織對未來幾季的收益有何影響？

And secondly, could you please update us on the progress of your collaboration with OpenAI?

其次，您能否向我們介紹一下您與 OpenAI 合作的最新進展？

And please share your views on the recent adjustment of the cash price.

並請您談談對近期現金價格調整的看法。

Thank you.

謝謝。

Thank you.

謝謝。

I'll take the first question.

我來回答第一個問題。

So as I just said just now, we expect operating expenses on a GAAP basis to be about $4 million lower in Q4 and about $7 million lower in Q1 compared to the baseline in Q2 this year, which was about $32.6 million in Q2.

因此，正如我剛才所說，與今年第二季的基準（第二季約為3,260 萬美元）相比，我們預計第四季的營運費用將減少約400 萬美元，第一季的營運費用將減少約700 萬美元。

The reason the saving is more in Q1 compared to Q4 is because the restructuring happened in November.

第一季比第四季節省更多的原因是因為重組發生在 11 月。

So we still had about one half month of the salary for the employees who left the company this quarter.

所以本季離開公司的員工我們還有半個月左右的薪水。

And on the other hand, we do not expect the restructuring to have a significant impact on revenues.

另一方面，我們預期重組不會對收入產生重大影響。

So most of the savings will translate into improvement on the bottom line.

因此，大部分的節省將轉化為利潤的提高。

Tony?

托尼？

Yeah, on collaboration with OpenAI, ever since the launch of Realtime API, we see a lot of interest from developers and our customers.

是的，自從 Realtime API 推出以來，關於與 OpenAI 的合作，我們看到了開發人員和客戶的濃厚興趣。

And there are some parallel work actually happened with a group of customers mostly in our POC stage.

實際上，有一些並行工作是在我們的 POC 階段與一組客戶進行的。

And we hope to launch certain use case in the near future.

我們希望在不久的將來推出某些用例。

Meanwhile, also we see areas to improve on technology and infrastructure design side to make the conversational experience even more smooth in terms of audio quality and the interaction between human and AI.

同時，我們也看到技術和基礎設施設計方面需要改進的地方，以使對話體驗在音訊品質以及人與人工智慧之間的互動方面更加流暢。

Current stage of the OpenAI API is still under beta.

OpenAI API 目前階段仍處於測試階段。

We are working with partner to bring that to market sooner.

我們正在與合作夥伴合作，以更快地將其推向市場。

Okay, on the pricing question, yes, now OpenAI is offering a cash pricing for cash voice input, which is 80% cheaper than the standard input price.

好的，關於定價問題，是的，現在 OpenAI 為現金語音輸入提供現金定價，比標準輸入價格便宜 80%。

It is certainly one way to bring the cost down and developers, including us, are watching very closely on what might happen next.

這當然是降低成本的一種方法，包括我們在內的開發人員正在密切關注接下來可能發生的情況。

But I want to emphasize that the standard pricing of audio input is still $100 per 1 million token.

但我想強調的是，音訊輸入的標準定價仍然是每 100 萬代幣 100 美元。

That has not changed.

這一點沒有改變。

The cash price is lower, it's $20, but that's for cash input, which is basically the repetitive input the AI has seen already.

現金價格較低，為 20 美元，但那是現金輸入，這基本上是 AI 已經看到的重複輸入。

So for different use cases, the percentage of cash input really differs.

因此，對於不同的用例，現金投入的百分比確實有所不同。

And it's hard to say how high a cash hit rate you can achieve with various use cases.

很難說在不同的用例下你能達到多高的現金命中率。

The other thing is the pricing for the output token has not changed, which is actually a lot more expensive.

另一件事是輸出代幣的定價沒有改變，實際上要貴得多。

The price for output token is 4 times the price for the input token.

輸出代幣的價格是輸入代幣價格的 4 倍。

So with that unchanged, the overall pricing has not actually changed that much.

因此，在這一點不變的情況下，整體定價實際上並沒有太大變化。

With that said, we do believe in the medium term, there will be significant room for cost reduction.

話雖如此，我們確實相信，從中期來看，成本降低的空間將會很大。

(Operator Instructions) Daley Li with Bank of America.

（操作員指示）美國銀行的 Daley Li。

Hi, management.

嗨，管理層。

Thanks for taking my question.

感謝您提出我的問題。

I have two questions here.

我在這裡有兩個問題。

First question is about our 4Q guidance regarding the revenue.

第一個問題是關於我們第四季收入的指引。

It seems a kind of better trend compared to Q3.

與第三季相比，這似乎是更好的趨勢。

Could you give more color about key drivers for better revenue for Q4?

能否詳細介紹第四季營收成長的關鍵驅動因素？

And if more color about the demand in mainland China business and overseas will be quite helpful.

而如果多了解中國大陸業務和海外的需求將會很有幫助。

The second question also about the conversational based on the AI, how do we see the progress with the domestic large number model players?

第二個問題也是關於基於AI的對話，我們如何看待國內大量模型玩家的進展？

And how do we see the trend between China and the OpenAI, the US trend in terms of the AI application in this RTE and the conversational AI?

我們如何看待中國與OpenAI、美國在本次RTE的人工智慧應用以及對話式人工智慧的趨勢？

Thank you.

謝謝。

Thank you, Daley.

謝謝你，戴利。

I'll take the first question.

我來回答第一個問題。

So our guidance for Q4 is in terms of revenue, $34 million to $36 million compared to Q3.

因此，我們對第四季的指導是收入，與第三季相比為 3,400 萬至 3,600 萬美元。

So sequentially, that implies about $2.5 million to $4.5 million increase, and that was actually driven by demand in both the US international market and also China market.

因此，這意味著增加約 250 萬至 450 萬美元，這實際上是由美國國際市場和中國市場的需求所推動的。

So in the US international market, we see more demand in live shopping, so-called greater economies of social space, and also customers in Asia.

所以在美國國際市場上，我們看到了更多的直播購物需求，所謂的更大的社交空間經濟，以及亞洲的客戶。

As we talked about in previous earnings call, actually in the past two years, we had a pretty challenging market environment in Southeast Asia, in Middle East, in India, but we are seeing some recovery in the most recent quarter, especially in Southeast Asia and Middle East.

正如我們在先前的財報電話會議中談到的，實際上在過去的兩年裡，我們在東南亞、中東、印度的市場環境相當具有挑戰性，但我們在最近一個季度看到了一些復甦，尤其是在東南亞和中東。

So that's US international.

這就是美國國際。

In China, we see improvement on IoT and digital transformation in Q4.

在中國，我們看到第四季物聯網和數位轉型有所改善。

And traditionally, Q4 is a high season for digital transformation.

傳統上，第四季是數位轉型的旺季。

We also see some market share expansion in China.

我們也看到中國的市佔率有所擴大。

So although the overall economic conditions are still challenging, but because we have been successful in expanding our market share, that also led to sequential revenue growth in Q4 compared to Q3.

因此，儘管整體經濟狀況仍然充滿挑戰，但由於我們成功擴大了市場份額，這也導致第四季度收入較第三季度環比增長。

I picked the AI side of the question.

我選擇了問題的人工智慧方面。

We have a lot of collaboration with various foundation model companies, or even non-foundation model companies, companies leveraging general AI algorithms to build building blocks.

我們與各種基礎模型公司，甚至非基礎模型公司，利用通用人工智慧演算法建立積木的公司有許多合作。

We see also a huge amount of interest in exploring the possibilities and opportunities leveraging conversational AI features to build use case as well.

我們也看到人們對探索利用對話式人工智慧功能來建立用例的可能性和機會抱持著極大的興趣。

There's a few events of our partnership with foundation model companies as we talked about in the opening remark.

正如我們在開場白中談到的，我們與基礎模型公司的合作發生了一些事件。

But most of the use case are more in experiment and development period, in kind of a QC stage.

但大多數用例更處於實驗和開發階段，類似於品質控制階段。

It will take some time for the technology to mature, to become generally available for real-time API in domestic models.

該技術的成熟還需要一段時間，才能在國內車型中普遍使用即時API。

And use case-wise, we see clear fit into customer service, education, IOT, and social companionship.

從使用案例來看，我們發現它非常適合客戶服務、教育、物聯網和社交陪伴。

Thank you.

謝謝。

Our next question comes from the line of Jun Xia with Guohan securities.

我們的下一個問題來自國瀚證券夏軍的專線。

Yeah, thank you, management, for taking my question.

是的，謝謝管理層回答我的問題。

I have a question towards the outlook for next year.

我對明年的前景有疑問。

So could you please give us more color on our revenue outlook next year and our cashflow outlook next year?

那麼，您能否對我們明年的收入前景和現金流前景進行更多介紹？

And also, we mentioned that we will achieve break-even point next year.

而且，我們提到明年我們將實現收支平衡點。

So based on what assumptions do we think that we will achieve the breakeven point?

那麼，基於什麼假設，我們認為我們將實現損益平衡點呢？

Thank you.

謝謝。

Sure.

當然。

So, yes, we have always got it marked that we target to achieve gap break-even for the year 2025.

所以，是的，我們一直明確表示我們的目標是在 2025 年實現收支平衡。

And that's actually under very conservative revenue assumptions.

這實際上是在非常保守的收入假設下進行的。

So our internal goal is certainly to drive moderate revenue growth for the existing use cases.

因此，我們的內部目標肯定是推動現有用例的適度收入成長。

And we want us to be technologically and organizationally ready for additional demand from conversational AI use cases.

我們希望我們在技術和組織上做好準備，滿足對話式人工智慧用例的額外需求。

So in summary, the guidance has not changed.

總而言之，指導方針沒有改變。

And I talked about the savings of operating expenses just now with that level of saving and with a very conservative revenue assumption, we believe we'll be able to break-even in 2025.

我剛才談到了營運費用的節省，按照這樣的節省水準和非常保守的收入假設，我們相信我們將能夠在 2025 年實現收支平衡。

Yeah, thank you.

是的，謝謝。

Thank you.

謝謝。

There are no further questions.

沒有其他問題了。

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

感謝大家今天參加公司的電話會議。

As a reminder, the recording and 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 email the company.

謹此提醒，錄音和收益發布將在公司網站 Investor.agora.io 上發布。如果有任何疑問，請隨時給公司發送電子郵件。

Thank you

謝謝