Agora Inc (API) 2025 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to Agora Inc. first-quarter 2025 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. 2025 年第一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.

本公司的獲利績效新聞稿、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公司創辦人、董事長兼執行長趙濤，以及財務長汪靜波。

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

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。這些前瞻性陳述受到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可能做出的任何前瞻性陳述。

And with that, let me turn it over to Tony. Please go ahead, Tony.

現在，讓我把話題交給東尼。請繼續，托尼。

Thanks operator, and welcome, everyone, to our earnings call. I'll first review our operating results from the past quarter. I'm very happy to report our second consecutive quarter of GAAP profitability in Q1, driven by double-digit revenue growth year-over-year on a comparable basis and disciplined cost management. This is a great achievement, and I want to thank Agora and Shengwang teams for their efforts and dedication.

謝謝接線員，歡迎大家參加我們的收益電話會議。我將首先回顧我們上一季的經營業績。我很高興地報告，我們第一季連續第二季實現 GAAP 盈利，這得益於可比基礎上同比兩位數的收入增長和嚴格的成本管理。這是一個偉大的成就，我要感謝Agora和聲網團隊的努力和奉獻。

Total revenue in Q1 were $33.3 million, up 12% year-over-year, excluding revenues from certain end of sales low-margin products, with healthy business expansion and net retention rate recovery from both Agora and Shengwang sites. Our GAAP net profit for the quarter, though still at a modest base, more than doubled from the previous quarter.

第一季總收入為 3,330 萬美元，年增 12%，不包括某些銷售終端低利潤產品的收入，Agora 和聲網網站的業務均實現了健康擴張，淨留存率也隨之回升。儘管本季我們的 GAAP 淨利潤仍處於中等水平，但比上一季增加了一倍多。

As you know, Q1 typically marks our seasonal low point with fewer calendar days than reduced online activity during the New Year holiday period. Considering the seasonal trend in our current business momentum, we are confident that we will maintain GAAP profitability for the remainder of the year. At end of Q1, we had more than 1,800 active customers for Agora and close to 2,000 for Shengwang excluding Easemob, both representing an increase of 5% compared to one year ago.

如您所知，第一季通常是我們季節性的低谷，因為新年假期期間的日曆天數比線上活動的減少要少。考慮到我們當前業務動能的季節性趨勢，我們有信心在今年剩餘時間內保持 GAAP 獲利能力。截至第一季末，聲網活躍客戶數超過 1,800 家，聲網（不含易信）活躍客戶數接近 2,000 家，較去年同期均成長 5%。

Now let's turn to our business product and the technology updates for the quarter. In March, we announced the general availability of our Conversational AI Engine in China, enabling developers to create interactive voice experience with any large language model. This product has been refined based on extensive customer feedback during the private and public beta phase. Today, this product is still in the public beta stage for the US and global markets, and it already delivers industry-leading performance on latency, noise suppression, interruption handling and network resilience.

現在讓我們來談談本季的業務產品和技術更新。今年 3 月，我們宣佈在中國全面推出對話式人工智慧引擎，使開發人員能夠使用任何大型語言模型創建互動式語音體驗。該產品根據私人和公開測試階段的大量客戶回饋進行了改進。目前，該產品仍處於美國及全球市場的公測階段，在延遲、噪音抑制、中斷處理和網路彈性方面已達到業界領先的效能。

Our Conversational AI Engine unlocks innovation across multiple verticals and use cases from virtual components and shopping assistance to customer service and outbound marketing. Particularly, we believe education is where the Conversational AI experience can have a huge impact in boosting student engagement with personalized content and adaptive practice. Imagine an AI teaching assistant that talks in real time adjusting to each student's needs and providing truly personalized instructions at scale. We are already seeing this vision come to life. Several ad tech customers, such as Dou Shen AI in China, are in the advanced stage of developing AI-powered language tutoring product with our solution.

我們的對話式人工智慧引擎開啟了多個垂直領域和用例的創新，從虛擬組件和購物協助到客戶服務和外向行銷。特別是，我們相信在教育領域，對話式人工智慧體驗可以透過個人化內容和自適應練習對提高學生參與度產生巨大影響。想像一下，一位人工智慧助教可以即時對話，根據每個學生的需求進行調整，並大規模提供真正個人化的指導。我們已經看到這個願景變成現實。中國的鬥神AI等多家廣告技術客戶正利用我們的解決方案開發人工智慧語言輔導產品的高級階段。

In Q1, we also launched our Conversational AI device kit, our Turnkey IoT module combining our software, cloud service and high-performance chips from Beken. This device kit enables device manufacturers to add Conversational AI to any IoT devices from toys and robotics to smart speakers. As a Turnkey Solution, it can significantly reduce upfront R&D cost and time to market for device manufacturers. For example, our customer, Robopoet, announced their latest AI companion robot, Fuzzoo, at the Mobile World Congress, powered by our device kit, Fuzzoo listens, senses and response in real time, creating personalized support and even emotional connections with end users.

在第一季度，我們還推出了對話式人工智慧設備套件，這是我們的交鑰匙物聯網模組，結合了我們的軟體、雲端服務和來自 Beken 的高效能晶片。該設備套件使設備製造商能夠將會話式人工智慧添加到從玩具和機器人到智慧揚聲器的任何物聯網設備中。作為交鑰匙解決方案，它可以顯著降低設備製造商的前期研發成本和上市時間。例如，我們的客戶 Robopoet 在世界行動通訊大會上發布了他們的最新 AI 伴侶機器人 Fuzzoo，該機器人由我們的設備套件提供支持，可以即時聆聽、感知和回應，為最終用戶提供個人化支持，甚至建立情感聯繫。

We are also making exciting progress on our open source initiatives and developers ecosystem. TEN, our sponsored open source project for building real-time Conversational AI agents continues to gain remarkable traction with 6,000 GitHub Stars. It is the fastest-growing project in its category globally. Leading cloud providers, including AWS and Oracle Cloud are providing support for deploying TEN on their infrastructure. Recently, we launched Voice Activities Detection and Turn Detection modules as part of our TEN project, which outperformed our existing Open-Sourced alternatives, further demonstrating our commitment to the community and the Conversational AI ecosystem.

我們的開源計劃和開發者生態系統也取得了令人興奮的進展。TEN 是我們贊助的用於建立即時對話式 AI 代理的開源項目，目前已獲得 6,000 個 GitHub Stars，繼續獲得顯著的關注。這是全球同類項目中成長最快的項目。領先的雲端供應商，包括 AWS 和 Oracle Cloud，正在為在其基礎架構上部署 TEN 提供支援。最近，我們在 TEN 專案中推出了語音活動偵測和轉彎偵測模組，其表現優於我們現有的開源替代方案，進一步證明了我們對社群和對話式 AI 生態系統的承諾。

Over the past few months, we have seen a tremendous amount of interest in our Conversational AI products and Open-Sourced projects. Product registrations and inquiries following the product launch have reached record highs. And our developer workshops in Beijing, Tokyo and San Francisco have attracted large passionate audience. Today, many customers are working closely with us in proof of concept development.

在過去的幾個月裡，我們看到了人們對我們的對話式人工智慧產品和開源專案的極大興趣。產品上市後的產品註冊量和諮詢量均創歷史新高。我們在北京、東京和舊金山舉辦的開發者研討會吸引了大批熱情的觀眾。如今，許多客戶正在與我們密切合作，進行概念驗證開發。

Before I wrap up, I want to give special recognition to our incredible teams at Agora and Shengwang. In this fast-moving AI revolution, their dedication and innovative spirit are what allow us to pioneer the future of human AI interruption. Each day, we're not just keeping pace with changes, we are creating it, unlocking new possibilities and shaping a new paradigm. The opportunities ahead are truly exciting, and I cannot wait to share our next chapter of progress with all of you.

在結束之前，我想特別感謝 Agora 和 Shengwang 的優秀團隊。在這場快速發展的人工智慧革命中，他們的奉獻精神和創新精神使我們能夠開拓人類人工智慧中斷的未來。每天，我們不僅要跟上變化的步伐，還要創造變化，發掘新的可能性並塑造新的範式。未來的機會確實令人興奮，我迫不及待想與大家分享我們下一章的進展。

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 first-quarter of 2025. And then I will discuss outlook for the second quarter.

謝謝你，托尼。大家好。首先，我來回顧一下 2025 年第一季的財務表現。然後我將討論第二季度的展望。

Total revenues for the first quarter reached $33.3 million, exceeding the high end of our guidance range. On a year-over-year basis and excluding revenues from certain end-of-sale low-margin products, revenue growth accelerated to 12.1%, up from 3.6% in Q4 last year. This demonstrates a clear pickup in our business momentum.

第一季總收入達到 3,330 萬美元，超出了我們預期範圍的上限。與去年同期相比，若不包括某些銷售終止的低利潤產品的收入，收入成長率將從去年第四季的 3.6% 加速至 12.1%。這顯示我們的業務動能明顯回升。

Our core revenues reached $18.6 million in Q1, growing 17.7% year-over-year and 6.9% sequentially. This sustained performance reflects our successful market expansion and growing adoption, particularly in high potential verticals such as live shopping and entertainment where usage continues to grow.

我們第一季的核心營收達到 1,860 萬美元，年增 17.7%，季增 6.9%。這種持續的表現反映了我們成功的市場擴張和日益增長的應用，特別是在直播購物和娛樂等使用率持續增長的高潛力垂直領域。

Shengwang revenues reached RMB 105.5 million in Q1. Excluding certain end-of-sale, low-margin products, Shengwang revenues grew 6.7% year-over-year, and declined 13.7% sequentially. The year-over-year growth reflects continued business expansion and adoption in key verticals, such as entertainment and IoT. While the sequential decline is mainly due to normal seasonality, with Q4 historically seen peak demand for digital transformation projects and Q1 experiencing software activity from social and education customers due to holidays. Dollar-based net retention rate is 96% for Agora and 85% for Shengwang, both improved from previous quarters.

聲網第一季營收達1.055億元人民幣。不計入某些銷售終止、低利潤的產品，聲網營收年增6.7%，季減13.7%。同比成長反映了娛樂和物聯網等關鍵垂直領域的持續業務擴張和採用。雖然環比下降主要是由於正常的季節性因素，但歷史上第四季度是數位轉型專案需求的高峰，而第一季度由於假期，社交和教育客戶的軟體活動也較為活躍。聲網的美元淨留存率為 96%，聲網為 85%，均較前幾個季度有所提高。

Moving on to cost expenses. Gross margin for the first quarter was 68%. If we exclude gross profit from certain end-of-sale products, gross margin of continuing business increased 0.6% year-over-year and 1.4% quarter-over-quarter.

繼續討論成本費用。第一季毛利率為68%。如果我們排除某些終止銷售產品的毛利，持續經營業務的毛利率將年增 0.6%，較上季成長 1.4%。

As we mentioned in previous earnings calls, we restructured and reduced our global workforce in November 2024. As a result, operating expenses decreased $6.1 million from $32.6 million in Q2 2024 as a baseline and reached $26.5 million in the first quarter.

正如我們在先前的收益電話會議上所提到的，我們在 2024 年 11 月重組並裁減了全球員工。因此，營運費用以 2024 年第二季的 3,260 萬美元為基準減少了 610 萬美元，並在第一季達到 2,650 萬美元。

R&D expenses were $14 million in Q1, decreased 22.7% year-over-year. R&D expenses represented 42.1% of total revenues in the quarter compared to 54.5% in Q1 last year. Sales and marketing expenses were $6.2 million in Q1, decreased 8.5% year-over-year. Sales and marketing expenses represented 18.7% of total revenues in the quarter compared to 20.5% in Q1 last year. G&A expenses were $6.2 million in Q1, decreased 25.6% year-over-year. G&A expenses represented 18.8% of total revenues in the quarter compared to 25.2% in Q1 last year.

第一季研發費用為1,400萬美元，較去年同期下降22.7%。本季研發費用佔總營收的 42.1%，去年第一季為 54.5%。第一季銷售和行銷費用為 620 萬美元，年減 8.5%。本季銷售和行銷費用佔總收入的 18.7%，而去年第一季為 20.5%。第一季的一般及行政費用為 620 萬美元，年減 25.6%。本季一般及行政費用佔總營收的 18.8%，而去年第一季為 25.2%。

Moving on to the bottom line. We delivered net income of $0.4 million in Q1, representing a 1.2% net income margin. This represents a substantial turnaround from the 28.7% net loss margin in Q1 last year and marks our second consecutive quarter of GAAP profitability. With our current business momentum and visibility, we anticipate maintaining profitability throughout 2025.

繼續討論底線。我們第一季的淨收入為 40 萬美元，淨收入利潤率為 1.2%。這與去年第一季 28.7% 的淨虧損率相比有了大幅扭轉，也標誌著我們連續第二季實現 GAAP 獲利。憑藉我們目前的業務發展勢頭和知名度，我們預計在 2025 年全年都將保持盈利。

Now turning to cash flow. Operating cash flow was $17.6 million in Q1 compared to negative $6.5 million last year. The positive cash flow included $17.8 million in interest proceeds from maturity of bank deposits and financial products issued by banks.

現在轉向現金流。第一季的經營現金流為 1,760 萬美元，去年同期為負 650 萬美元。正現金流包括銀行存款到期利息收入和銀行發行的金融產品利息收入1,780萬美元。

Moving on to balance sheet. We ended Q1 with $388 million in cash, cash equivalents, bank deposits and financial products issued by banks. Net cash inflow in the quarter was mainly due to operating cash flow of $17.6 million and release of $3.5 million in restricted cash, which was offset in part by a share repurchase of $1.2 million. Since our Board approved the share repurchase program in February 2022, we have repurchased $116.4 million worth of shares through March 31, 2025. So far in Q2, we have already bought back over $8 million worth of shares. We remain committed to creating shareholder value through this program while preserving the financial flexibility needed to invest in future growth opportunities.

繼續討論資產負債表。截至第一季末，我們擁有 3.88 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。本季淨現金流入主要來自 1,760 萬美元的營運現金流和 350 萬美元的受限現金釋放，但部分被 120 萬美元的股票回購所抵銷。自董事會於 2022 年 2 月批准股票回購計畫以來，截至 2025 年 3 月 31 日，我們已回購價值 1.164 億美元的股票。到目前為止，第二季我們已經回購了價值超過 800 萬美元的股票。我們將繼續致力於透過該計劃創造股東價值，同時保留投資未來成長機會所需的財務靈活性。

Now turning to guidance. For the second quarter of 2025, we currently expect total revenues to be between $33 million and $35 million compared to $30.9 million in the second quarter of 2024, representing year-over-year growth rate of 6.8% to 13.3%, if revenues from certain end-of-sale, low-margin products are excluded. This all reflects our current and preliminary views on the market and operational conditions, which are subject to change.

現在轉向指導。對於 2025 年第二季度，我們目前預計總收入將在 3,300 萬美元至 3,500 萬美元之間，而 2024 年第二季為 3,090 萬美元，如果不包括某些銷售終止、低利潤產品的收入，則同比增長率為 6.8% 至 13.3%。這一切都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, I want to take a moment to recognize the exceptional work of the Agora and Shengwang teams. The dedication and execution have made these outstanding results possible. This quarter, we are proud to have delivered revenue above expectations, achieved consecutive GAAP profitability and maintained a robust financial position.

最後，我想花點時間來表彰 Agora 和 Shengwang 團隊的出色工作。正是奉獻精神和執行力才使得這些出色的成果成為可能。本季度，我們很自豪地實現了超出預期的收入、連續實現了 GAAP 盈利並保持了穩健的財務狀況。

Thank you all for joining in today's call. We appreciate your ongoing support. Let's open it up for questions.

感謝大家參加今天的電話會議。我們感謝您一直以來的支持。讓我們開始提問吧。

(Operator Instructions)

（操作員指示）

David Lee, Bank of America Securities.

美國銀行證券公司的戴維李 (David Lee)。

Thanks, Tony and Jingbo for the introduction, for the results. Firstly, congrats on the strong results in 1Q and the solid guidance. And I have two questions here.

感謝Tony和Jingbo的介紹和成果。首先，恭喜第一季的強勁業績和穩健的指引。我這裡有兩個問題。

Number one is about the AI demand. And the language model is getting more powerful, we see more human machine interaction. What are the key areas you see more AI application? I think you mentioned like a convenient toys and some edge AI devices as well.

第一是關於人工智慧的需求。而且語言模型越來越強大，我們看到更多的人機互動。您認為人工智慧將更多應用在哪些關鍵領域？我想您也提到了方便的玩具和一些邊緣 AI 設備。

So what could be the future growth drivers in the area of AI? That's number one.

那麼人工智慧領域未來的成長動力是什麼呢？這是第一點。

Number two question is, regarding the breakdown for China and the overseas business, and how do we see the demand trend in future by volume or by the -- and by the ASP trend?

第二個問題是，關於中國和海外業務的細分，我們如何看待未來按數量或按平均售價趨勢劃分的需求趨勢？

I'll talk about AI. First off all, AI agent has been the biggest topic among tech communities this year. However, we will focus on the Conversational AI side, which is more directly related to our business. What we see is several key use cases that's mostly active.

我將談論人工智慧。首先，人工智慧代理是今年科技界最熱門的話題。然而，我們將專注於對話式人工智慧方面，這與我們的業務更直接相關。我們看到的是幾個最活躍的關鍵用例。

First is education use cases, especially around language learning and property side, as I just mentioned in the script, in my opening remarks. And also IoT side, especially a lot of efforts trying to build a conversational toys that can really talk to kids or users with meaningful content. And also, there's clear demand around kind of call center services, where there's outbound coding for marketing or other purpose and also customer service in call-center use cases. Those are the most clear verticals or use cases in our recent engagement with our developers.

首先是教育用例，特別是圍繞語言學習和財產方面，正如我在開場白中提到的那樣。還有物聯網方面，我們付出了很多努力嘗試打造一種可以與孩子或用戶真正對話並傳達有意義內容的對話玩具。此外，對呼叫中心服務的需求也很明顯，其中包括用於行銷或其他目的的出站編碼以及呼叫中心用例中的客戶服務。這些是我們最近與開發人員接觸時發現的最清晰的垂直領域或用例。

Thank you, Tony. I'll talk about the demand trend. So in the US and global market, as you can see, the growth rate has now in this quarter, about 18% or close to 20% already. So we have seen growing adoption among -- actually not just our customers.

謝謝你，托尼。我來談談需求趨勢。因此，正如您所看到的，在美國和全球市場，本季的成長率已達到約 18％ 或接近 20％。因此，我們看到，實際上不僅僅是我們的客戶正在越來越多地採用這種技術。

More importantly, we are seeing growing adoption among consumers for live video-based shopping and entertainment apps, especially in North America and Europe. These apps we have seen become really dominant in China for some time, but now we are finally seeing them gaining traction in North America and Europe as well. So that's one of the most important growth driver in this quarter for us.

更重要的是，我們看到消費者越來越青睞基於即時視訊的購物和娛樂應用程序，尤其是在北美和歐洲。我們已經看到這些應用程式在中國佔據主導地位已有一段時間了，但現在我們終於看到它們在北美和歐洲也獲得了關注。所以這是我們本季最重要的成長動力之一。

And secondly, for Asian customers, we are finally seeing some demand recovery, even including India for education and entertainment use cases. So overall, in US and global market, we see pretty solid demand. And we think there is still a lot of potential for further penetration. And also in terms of the pricing, with the exception of certain Asian markets, overall, the pricing has been quite stable in more developed markets.

其次，對於亞洲客戶，我們終於看到了一些需求復甦，甚至包括印度的教育和娛樂用例。因此總體而言，在美國和全球市場，我們看到相當強勁的需求。我們認為進一步滲透的潛力仍然很大。而且就定價而言，除某些亞洲市場外，整體而言，較發達市場的定價相當穩定。

So in China, also growth rate hasn't come to the level we see in US and global markets, but as you can see, for the Shengwang business in Q1 year-over-year, it also delivered 6.7% year-over-year growth. So overall, the demand is recovering. So on several fronts, the social entertainment fronts, we see that regulation is more stable now. So there's less regulatory impact as we saw last year and the year before.

因此，在中國，成長率還沒有達到我們在美國和全球市場看到的水平，但正如你所看到的，聲網業務在第一季同比增長了 6.7%。因此總體而言，需求正在復甦。因此，在社交娛樂等多個方面，我們看到監管現在更加穩定。因此，與去年和前年相比，監管影響較小。

Education demand is also recovering in a quite healthy manner. And IoT and digital transformation, we have been seeing pretty strong demand in the past two years. Pricing wise, also still, it's a very competitive market compared to last year and the year before. Pricing pressure is also more moderate in this year. So overall, it looks more positive than in previous years.

教育需求也以相當健康的方式復甦。過去兩年，我們看到了物聯網和數位轉型的相當強勁的需求。從定價方面來看，與去年和前年相比，現在的市場競爭仍然非常激烈。今年的定價壓力也較為溫和。因此總體而言，情況比前幾年更加積極。

Tian-Li Wang, CICC.

王天麗，中金公司。

This is Wang Tian-Li from CICC. My first question is regarding your overseas e-commerce business. But in the past, we have seen the live shopping and the interactive features becoming increasingly popular in e-commerce, especially in the emerging markets. Could you please provide more details on your current tractions and the strategy enabling overseas e-commerce platforms or the applications?

我是中金公司的王天麗。我的第一個問題是關於你們的海外電子商務業務。但在過去，我們看到直播購物和互動功能在電子商務中越來越受歡迎，尤其是在新興市場。您能否詳細介紹目前的進展以及支援海外電子商務平台或應用程式的策略？

And my second question focuses on the AI landscape. So could you elaborate on any shifts that you have observed in the downstream demand for AI-powered real-time interaction capabilities.

我的第二個問題集中在人工智慧領域。那麼，您能否詳細說明您所觀察到的對人工智慧即時互動功能的下游需求的任何變化。

So on live commerce use case, we are deep diving into the use case and continue to maximizing the penetration into the space. There's clear demand and we see a lot of value creation potential for us to deliver to our customers. And we are continuing to gain new customers, while the existing customers' volume is still stably growing.

因此，在即時商務用例方面，我們正在深入研究該用例並繼續最大限度地提高該領域的滲透率。需求明確，而且我們看到了我們可以為客戶提供的巨大價值創造潛力。而我們正在繼續獲得新客戶，同時現有客戶的數量仍在穩定成長。

One side of the effort is trying to improve the video quality, which will give shoppers online shopping participants better experience in live shopping use case. A lot of the customers actually were local live shopping platform. So there's literally almost no impact by the recent tariff war.

努力的一方面是試圖提高視訊質量，這將為線上購物參與者在即時購物用例中提供更好的體驗。很多客戶其實都是本地直播購物平台的。因此，最近的關稅戰實際上幾乎沒有產生影響。

About AI. Now again, we will continue to focus on Conversational AI, which is really directly related to our business. The recent interest in building Conversational AI agent is very clear. And a lot of customers who is in the POC stage of their development is getting close to product launch.

關於人工智慧。現在，我們將繼續關注對話式人工智慧，這與我們的業務直接相關。最近對建立對話式人工智慧代理的興趣非常明顯。許多處於開發 POC 階段的客戶即將推出產品。

Now the key for our growth in terms of service volume or eventually the value created for the customer base is really depending on a product that has already find a product-market fit. And the key to that is all those customers' product actually did a lot of deep dive into the vertical use case and leverage and build a good product by finding out enough know-how in that vertical use case so that the customer experience is smooth and compelling enough. And that process is why a lot of the customers have been working with us for a while, but still before it can really achieve product-market fit, it will take some time.

現在，我們服務量的成長或最終為客戶群創造的價值的關鍵實際上取決於已經找到產品市場契合度的產品。關鍵在於，所有這些客戶的產品實際上都對垂直用例進行了深入研究，並透過在垂直用例中找出足夠的專業知識來利用和建立優質產品，從而使客戶體驗流暢且足夠引人注目。這個過程就是為什麼許多客戶已經與我們合作了一段時間，但在真正實現產品與市場的契合之前，仍然需要一些時間。

(Operator Instructions)

（操作員指示）

Bing Duan, Nomura.

段兵，野村。

I've two. First is also about AI. So how do we think about the timing for the massive adoption of the Conversational AI as we think that currently, there are still some pricing premium, right, compared to the non-AI applications. So when do we see this tipping point for the massive adoptions.

我有兩個。首先也是關於人工智慧。那麼，我們如何看待大規模採用對話式人工智慧的時機，因為我們認為目前與非人工智慧應用程式相比，對話式人工智慧仍然存在一些定價溢價。那麼，我們何時會看到大規模採用的轉捩點呢？

And I think second question is about the competition landscape in the China and -- how do we think about the pricing trends for the overall business and the impact on the gross margins?

我認為第二個問題是關於中國的競爭格局以及我們如何看待整體業務的定價趨勢及其對毛利率的影響？

On the tipping point, I mean, I actually talked about few use cases or verticals that are most active in our work with customers and developers. I want to point out further that even within each and every of those use cases, it's not one category of product, let's say, for customer use cases. Each type of our call center service for actually a different industry have different know-how. And so that the product-market fit will happen gradually for each industry's specific customer use cases.

關於臨界點，我的意思是，我實際上談論了我們與客戶和開發人員合作中最活躍的幾個用例或垂直領域。我想進一步指出的是，即使在每個用例中，它也不是針對客戶用例的一個產品類別。我們的每種類型的呼叫中心服務實際上針對不同的行業有不同的專有技術。這樣，產品與市場的契合就會逐漸適應每個產業特定的顧客使用。

So we will achieve product-market fit one by one down the road really depend on how those products, like I said, finding out all the necessary know-how so to build up a smooth user experience. And the tipping point really relies on the maturity or product-market fit of those specific use cases. And once it's matured and having a market fit, the volume for that specific product will grow significantly. And will naturally expand to all similar product providers in the same sector or in the same use case, which will again, grow our volume. So that's the thing.

因此，我們將在未來逐步實現產品與市場的契合，這實際上取決於這些產品如何找到所有必要的專業知識，從而建立流暢的用戶體驗。而臨界點實際上依賴這些特定用例的成熟度或產品市場契合度。一旦它成熟並適應市場，該特定產品的銷售就會大幅成長。並且會自然擴展到同一行業或同一用例的所有類似產品提供商，這將再次增加我們的業務量。事情就是這樣。

However, I do want to mention that the maturity of such product, it's not decided by us. It's really decided by the -- each and individual vertical use cases for their industry know-how and product designs or even launching approach will decide whether the product is going to be successful or not, and whether the product-market fit is reached or still need more work. So that's the thing. I cannot really give a specific timing for how those products will mature and start to grow potentially. However, what I want to say is, it's not going to be one product.

不過，我想說的是，這種產品的成熟度不是由我們決定的。這實際上取決於——每個單獨的垂直用例，他們的行業知識和產品設計甚至發布方法將決定產品是否會成功，以及是否達到產品市場契合度或仍需要做更多的工作。事情就是這樣。我無法真正給出這些產品如何成熟並開始潛在成長的具體時間。然而，我想說的是，它不會只是一種產品。

And it's not going to be even 10 or 20 products. It's going to be hundreds of different products and gradually reaching the tipping point. That's my view.

而且產品數量甚至不會達到 10 或 20 種。它將會出現數百種不同的產品，並逐漸達到臨界點。這是我的看法。

I'll take the question on the competitive landscape. So you mentioned China. Yes, China has been a very competitive market. In fact, all the major cloud providers have some point competed in this market and pretty hard. But now only one of them is still remaining really.

我將回答有關競爭格局的問題。所以你提到了中國。是的，中國市場競爭非常激烈。事實上，所有主要的雲端供應商都在這個市場上展開了激烈的競爭。但現在其實只剩下一個了。

The others are just, like, staying here, but with no meaningful market share. So that shows how competitive the market is. But I think in the past few years, the clear trend is consolidation. Now there are less and less -- there have been less and less players to name really just.

其他公司只是留在這裡，但沒有佔據任何有意義的市場份額。這顯示市場競爭非常激烈。但我認為過去幾年的明顯趨勢是整合。現在能說出名字的球員越來越少了。

And as Conversational AI becomes more and more important, we believe the competition will not be just like real-time communication, it will be real-time communication plus Conversational AI. And we have invested heavily on this new area. We cannot say the same for our competitors. So we -- hopefully, that will give us stronger competitive position in the future. And in terms of margin, yes, the competition is more fierce in China, and market is slightly lower in China compared to the global and the US markets. But whilst we, first of all, we tend to focus on the higher-value use cases, which tend to have higher margins.

隨著對話式人工智慧變得越來越重要，我們相信競爭將不再只是即時通信，而是即時通訊加上對話式人工智慧。我們在這個新領域投入了大量資金。我們不能對我們的競爭對手說同樣的話。因此，我們希望這將使我們在未來擁有更強的競爭地位。就利潤率而言，中國的競爭確實更加激烈，與全球和美國市場相比，中國的市場略低。但是，首先，我們傾向於關注更高價值的用例，這些用例往往具有更高的利潤率。

And secondly, we continue to do a lot of technical optimization on the cost in, and that's why we have been able to maintain a relatively stable gross margin, as you have seen in our earnings. So that continues to be our strategy going forward.

其次，我們繼續在成本方面進行大量的技術優化，這就是為什麼我們能夠保持相對穩定的毛利率，正如您在我們的收益中看到的那樣。所以這將繼續是我們未來的策略。

(Operator Instructions) There are no further questions. Thank you, everybody, for attending the company's call today. 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 e-mail the company.

（操作員指示）沒有其他問題了。感謝大家今天參加公司電話會議。提醒一下，錄音和財報將在公司網站 investor.agora.io 上發布。如有任何疑問，請隨時發送電子郵件至本公司。

And so with that, we conclude the program today. You may now disconnect your lines.

今天的節目我們就到此結束。現在您可以斷開線路了。