Agora Inc (API) 2020 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Agora Inc.'s. Second Quarter 2020 Financial Results. (Operator Instructions) Please be advised that today's conference is being recorded.

女士們，先生們，感謝您的支持，歡迎來到 Agora Inc.。 2020 年第二季度財務業績。 （操作員說明）請注意，今天的會議正在錄製中。

And I would now like to hand the conference over to your first speaker today, Fionna Chen. Thank you. Please go ahead.

我現在想把會議交給你今天的第一位發言人陳菲奧娜。謝謝你。請繼續。

Thank you, operator. Good evening, and good morning, everyone. My name is Fionna Chen. I am the Investor Relations Director at Agora. Thank you for joining Agora Second Quarter 2020 Earnings Conference Call. Joining me today are Tony Zhao, our Founder, Chairman and CEO; and Jingbo, our CFO.

謝謝你，接線員。大家晚上好，早上好。我叫陳菲奧娜。我是 Agora 的投資者關係總監。感謝您參加 Agora 2020 年第二季度收益電話會議。今天和我一起的是我們的創始人、董事長兼首席執行官Tony Zhao；和我們的首席財務官靜波。

Our earnings results press release and a slide deck can be found on our IR website at ir.agora.io.

我們的收益結果新聞稿和幻燈片可在我們的 IR 網站 ir.agora.io 上找到。

Reconciliations between our GAAP and non-GAAP results can be found in our earnings press release.

我們的 GAAP 和非 GAAP 結果之間的調節可以在我們的收益新聞稿中找到。

During this call, we will make forward-looking statements about our future financial performance and other future events and trends, including guidance. These statements are only predictions that are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could affect our financial results and the performance of our business and which we discuss in detail in our filings with the SEC, including today's earnings press release and the risk factors and other information contained in the final prospectus relating to our initial public offering. Agora assumes no obligation to update any forward-looking statements we may make on today's call.

在這次電話會議中，我們將對我們未來的財務業績和其他未來事件和趨勢做出前瞻性陳述，包括指導。這些陳述只是基於我們今天所相信的預測，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、假設和其他因素的影響，這些因素可能會影響我們的財務業績和我們的業務表現，我們在提交給美國證券交易委員會的文件中詳細討論了這些因素，包括今天的收益新聞稿和風險因素以及最終招股說明書中包含的與我們的首次公開募股有關的其他信息。 Agora 不承擔更新我們在今天的電話會議上可能做出的任何前瞻性陳述的義務。

With that, let me turn it over to Tony.

有了這個，讓我把它交給托尼。

Thank you, Fionna. First, I'd like to thank you and welcome all of you for joining us today for our first earnings announcement as a public company. Before walking through our Q2 performance and highlights, please let me spend a few moments describing our business.

謝謝你，菲奧娜。首先，我要感謝並歡迎大家今天加入我們，發布我們作為上市公司的第一份收益公告。在介紹我們的第二季度業績和亮點之前，請讓我花一些時間來描述我們的業務。

As more aspects of our lives are moving online, there is tremendous demand for real-time video engagement. Historically, users would need to install a dedicated app to use video engagement, such as Skype, FaceTime or Zoom. However, in more and more cases, users are looking for contextual real-time video engagement that is directly embedded in the applications they are already using, whether that is for education, dating or game purpose, enabling richer context and more seamlessly -- more seamless and immersive user experience with no need to switching between apps. This is exactly what we do. The Agora platform provides developers simple, flexible and powerful application programming interfaces, or API to embed real-time video engagement experience into any application. Ultimately, our mission is to make real-time engagement ubiquitous, allowing everyone to interact with anyone in an app anytime and anywhere.

隨著我們生活的更多方面在線移動，對實時視頻參與的需求巨大。從歷史上看，用戶需要安裝專用應用程序才能使用視頻參與，例如 Skype、FaceTime 或 Zoom。然而，在越來越多的情況下，用戶正在尋找直接嵌入到他們已經使用的應用程序中的上下文實時視頻參與，無論是用於教育、約會還是遊戲目的，以實現更豐富的上下文和更無縫的 - 更多無縫和身臨其境的用戶體驗，無需在應用程序之間切換。這正是我們所做的。 Agora 平台為開發人員提供簡單、靈活和強大的應用程序編程接口或 API，以將實時視頻參與體驗嵌入到任何應用程序中。最終，我們的使命是讓實時互動無處不在，讓每個人都可以隨時隨地在應用程序中與任何人互動。

The key components of our platform are our software-defined real-time network, or SD-RTN, and our software development kit, or SDK. On top of the SD-RTN and SDK, we offer developers products such as real-time video, real-time voice, real-time messaging, real-time recording and many other user -- many other use case-specific products. All these products can be accessed through simple APIs and are fully programmable.

我們平台的關鍵組件是我們的軟件定義的實時網絡或 SD-RTN，以及我們的軟件開發工具包或 SDK。除了 SD-RTN 和 SDK 之外，我們還為開發人員提供實時視頻、實時語音、實時消息傳遞、實時錄製和許多其他用戶產品——許多其他特定於用例的產品。所有這些產品都可以通過簡單的 API 訪問，並且是完全可編程的。

Our technology makes developers' work more efficient and effective, helping them bringing new apps to market and deliver a better end-user experience, resulting in stickier user relationships. Traditionally, it takes a team of multiple developers several months to build real-time video engagement functionalities with high upfront infrastructure costs and without a guarantee on quality and compatibility. With Agora APIs, you just need 1 or 2 developers. For most cases, only 1 week of coding and testing, no server to be deployed or infrastructure to be built, and you get global coverage with stable quality and wide range of functionalities and broad compatibility across platform.

我們的技術使開發人員的工作更加高效和有效，幫助他們將新應用推向市場並提供更好的最終用戶體驗，從而建立更緊密的用戶關係。傳統上，由多個開發人員組成的團隊需要幾個月的時間來構建實時視頻參與功能，而且前期基礎設施成本很高，而且質量和兼容性沒有保證。使用 Agora API，您只需要 1 或 2 個開發人員。大多數情況下，只需 1 週的編碼和測試，無需部署服務器或構建基礎架構，即可獲得全球覆蓋，質量穩定，功能廣泛，跨平台兼容。

This is why tens of thousands of developers around the globe have chosen Agora. We are focused on building developer community enthusiasm and innovation. We designed our platform so that it's easy to adopt and enables self-serve, ensuring a flexible, low-touch experience for developers. We offer more than -- we offer 10,000 free minutes per app per month so that developers can experiment with our platform. We have a transparent pay-as-you-go pricing model so that we can grow with our developers as they grow and scale their offerings.

這就是全球數以萬計的開發者選擇 Agora 的原因。我們專注於建立開發者社區的熱情和創新。我們設計了我們的平台，使其易於採用並支持自助服務，從而確保為開發人員提供靈活、低接觸的體驗。我們提供超過 - 每個應用程序每月提供 10,000 分鐘的免費分鐘數，以便開發人員可以試驗我們的平台。我們有一個透明的即用即付定價模式，以便我們可以與我們的開發人員一起成長，因為他們發展和擴展他們的產品。

For large customers, we deploy our own engineers to help them integrate and customize our products, creating differentiated user experience for them. As you can see, this business model is very efficient and scalable and has allowed us to deliver very strong financial results this quarter.

對於大客戶，我們部署自己的工程師來幫助他們集成和定制我們的產品，為他們創造差異化的用戶體驗。如您所見，這種商業模式非常高效且可擴展，使我們能夠在本季度實現非常強勁的財務業績。

Now let me tell you about our Q2 performance and a few key business highlights. I'm pleased to report that we delivered revenue of $34 million for the second quarter, an increase of 128% year-over-year. This was driven by significant usage growth across geographies and verticals, as demand for real-time video and voice engagement increased significantly in light of the COVID-19. And overall, we are proud to see our platform was used by developers around the world to help people collaborate, learn, play, have fun or just stay connected across business during these challenging times.

現在讓我告訴你我們第二季度的表現和一些關鍵的業務亮點。我很高興地報告，我們第二季度的收入為 3400 萬美元，同比增長 128%。這是由跨地區和垂直領域的使用量顯著增長推動的，因為 COVID-19 導致對實時視頻和語音參與的需求顯著增加。總體而言，我們很自豪地看到我們的平台被世界各地的開發人員用於幫助人們在這些充滿挑戰的時期進行協作、學習、娛樂、娛樂或保持跨業務聯繫。

In addition to tremendous revenue growth, our high-efficient business model contributed to positive GAAP net income, operating cash flow and free cash flow. Our active customers reached nearly 1,500 at the end of second quarter, up 86% year-over-year, and our constant currency dollar-based net expansion rate was 183% for the trailing 12-month period. In this quarter, our platform continued to attract developers with more than 30,000 new apps registered on our platform, bringing cumulative registrations to more than 210,000.

除了巨大的收入增長外，我們高效的商業模式還為正的 GAAP 淨收入、經營現金流和自由現金流做出了貢獻。在第二季度末，我們的活躍客戶達到近 1,500 家，同比增長 86%，在過去 12 個月期間，我們基於固定貨幣美元的淨擴張率為 183%。在本季度，我們的平台繼續吸引開發者在我們的平台上註冊了超過 30,000 個新應用程序，累計註冊量超過 210,000 個。

Working with our developers around the world, we have seen many innovative and promising use case emerge -- emerging across various verticals. For example, we recently announced our partnership with Scener, a watch party platform that enables anyone to connect and interact or video chat while working streaming content together. Users can host either public or private coworking sessions or watch party, where content is synchronized with base participants. With real-time video chat powered by Agora, Scener has seen 100x growth since March because of the novel shared experience that it creates to bring people together in the same virtual theater at the comfort of their own home.

與我們在世界各地的開發人員合作，我們看到了許多創新和有前途的用例出現 - 出現在各個垂直領域。例如，我們最近宣布與 Scener 建立合作夥伴關係，Scener 是一個觀看派對平台，讓任何人都可以在一起處理流媒體內容的同時進行連接和互動或視頻聊天。用戶可以主持公共或私人合作會議或觀看派對，其中內容與基本參與者同步。借助由 Agora 提供支持的實時視頻聊天，Scener 自 3 月以來增長了 100 倍，因為它創造了新穎的共享體驗，讓人們在自己家中舒適地在同一個虛擬劇院中聚集在一起。

Another example is a co-listening service launched by a leading online music entertainment platform. After creating a public or private virtual room, the host become a DJ and chose -- and choose what music to play on top of the original HD soundtrack streaming to all members in the virtual room, overlays a real-time voice engagement layer powered by Agora. It brings users an intimate experience of listening to music and share their thoughts together with friends without any compromising -- without any compromise on music quality.

另一個例子是領先的在線音樂娛樂平台推出的同聽服務。在創建公共或私人虛擬房間後，主持人成為一名 DJ 並選擇 - 並選擇在原始高清音軌之上播放哪些音樂，向虛擬房間中的所有成員流式傳輸，覆蓋實時語音參與層，由集市。它為用戶帶來了聆聽音樂的親密體驗，並與朋友一起分享他們的想法，毫不妥協——對音樂質量沒有任何妥協。

Online exam on test proctoring also emerged in this quarter as a promising use case. Here, candidates are monitored online during the test duration through a real-time video connection and access screen of the candidate, both powered by our technology. This kind of online proctoring and remote invigilation is expanding at a fast pace in both education and corporate training.

本季度也出現了關於監考的在線考試，這是一個很有前景的用例。在這裡，考生在考試期間通過實時視頻連接和考生的訪問屏幕進行在線監控，兩者均由我們的技術提供支持。這種在線監考和遠程監考在教育和企業培訓中都在快速發展。

Those are just 3 out of hundreds contractual real-time engagement use cases that are possible to achieve without -- that are impossible to achieve without Agora platform. I'm also excited to announce that we are in the process of launching the first-ever experience level agreement, or XRA, in real-time engagement. Without industry standard or benchmarks of service quality, customers used to be operating in the dark, not knowing how good or bad the quality of service are. A lot of times have to guess the experience of their end users, and their overall results being impacted by the experience.

這些只是數百個合同實時參與用例中的 3 個，沒有 Agora 平台就不可能實現。我也很高興地宣布，我們正在推出首個實時參與的體驗級別協議 (XRA)。沒有行業標准或服務質量基準，客戶過去常常在黑暗中經營，不知道服務質量的好壞。很多時候必須猜測最終用戶的體驗，以及他們的整體結果會受到體驗的影響。

While our XRA covers metrics such as successful log-on rate, data rate and latency that focus on not only service availability, but also on end-user experience. Now with XRA, the key metrics associated within, we can provide transparency on service quality down to every minute in every engagement session. We will also provide future platform usage credit to our customers if they fail to deliver the level of XRA quality we have guaranteed.

雖然我們的 XRA 涵蓋了成功登錄率、數據速率和延遲等指標，但這些指標不僅關注服務可用性，還關注最終用戶體驗。現在，借助 XRA（其中相關的關鍵指標），我們可以提供服務質量的透明度，直至每次參與會話的每一分鐘。如果客戶未能提供我們保證的 XRA 質量水平，我們還將向他們提供未來的平台使用信用。

The XRA will help our developers better serve their end-users, understand what quality they are experiencing and also further differentiate our products from the competition. We believe it will be a must have for any real-time engagement API provider going forward.

XRA 將幫助我們的開發人員更好地為他們的最終用戶服務，了解他們所體驗的質量，並進一步使我們的產品在競爭中脫穎而出。我們相信，對於任何實時參與 API 提供商來說，這將是必不可少的。

Finally, I'd like to thank our 600-plus Agorans around the globe for their exceptional performance in our first quarter as a public company, and thank you to our developers and partners for their unwavering trust in us. We will continue to create value for our developers and customers through innovation. And together, I believe we will one day make real-time engagement ubiquitous.

最後，我要感謝全球 600 多名 Agorans 在我們作為上市公司的第一季度的出色表現，並感謝我們的開發人員和合作夥伴對我們堅定不移的信任。我們將繼續通過創新為我們的開發者和客戶創造價值。我相信，我們總有一天會讓實時互動無處不在。

Now let me turn the things over to Jingbo.

現在讓我把事情交給靜波。

Thank you, Tony. Hello, everyone. I hope you are all safe and well. Let me start by first reviewing financial results for Q2, and then I will discuss our outlook for the full year.

謝謝你，托尼。大家好。我希望你們都平安無事。讓我首先回顧第二季度的財務業績，然後我將討論我們對全年的展望。

Total revenues grew 128% year-over-year to $33.9 million in the second quarter of 2020. This was due to both organic growth and the spiking usage caused by COVID-19. On a sequential basis compared to the first quarter, we continue to see usage at heightened levels with strong commercial growth in the U.S. and the rest of the world, as social distancing and travel restrictions remain in place.

2020 年第二季度的總收入同比增長 128% 至 3390 萬美元。這是由於有機增長和 COVID-19 導致的使用量激增。與第一季度相比，隨著社交距離和旅行限制仍然存在，我們繼續看到美國和世界其他地區的商業增長強勁，使用量繼續提高。

On the other hand, China gradually came back to normal, which led to lower usage compared to the peak levels we saw in February and March, but still much higher than pre-COVID industry levels. We believe this is because COVID has changed people's long-term behavior towards video engagement. For this reason, we see the increased usage during this quarter as a promising indicator of a long-term growth opportunity and not just a blip on this radar.

另一方面，中國逐漸恢復正常，導致使用量低於我們在 2 月和 3 月看到的峰值水平，但仍遠高於 COVID 之前的行業水平。我們認為這是因為 COVID 改變了人們對視頻參與的長期行為。出於這個原因，我們認為本季度使用量的增加是長期增長機會的一個有希望的指標，而不僅僅是這個雷達上的一個小插曲。

For trailing 12 months, constant currency dollar-based net expansion rate was 183%, again, partially due to COVID-19. As the situation stabilizes, hopefully, we expect our expansion rate will likely come back to levels similar to what we saw in 2018 and 2019.

在過去的 12 個月中，基於固定貨幣美元的淨擴張率為 183%，部分原因是 COVID-19。隨著形勢的穩定，我們希望我們的擴張率可能會回到與我們在 2018 年和 2019 年看到的水平相似的水平。

Now turning to cost, expense and margin. The significant increase in demand and a disciplined investment approach drove net income profitability from both GAAP and non-GAAP perspectives. For my following comments, I will focus on non-GAAP results, which exclude share-based compensation expense.

現在轉向成本、費用和利潤。從 GAAP 和非 GAAP 角度來看，需求的顯著增長和嚴格的投資方法推動了淨收入盈利能力。對於我的以下評論，我將重點關注非公認會計原則的結果，其中不包括基於股票的薪酬費用。

Non-GAAP gross margin for the second quarter was 66.6%, which was 2.8% lower than Q2 last year, primarily due to our international expansion provisions with higher infrastructure costs, such as South Asia and South America. Because we currently use one standard pricing for all regions, our gross margin in these areas with higher cost is significantly lower than our overall gross margin. Going forward, we plan to address this issue by further optimizing our cost in these areas and gradually shifting toward region-specific pricing.

第二季度非美國通用會計準則毛利率為 66.6%，比去年第二季度下降 2.8%，主要是由於我們的國際擴張准備金以及基礎設施成本較高，例如南亞和南美。因為我們目前對所有地區都使用一種標准定價，所以我們在這些成本較高的地區的毛利率明顯低於我們的整體毛利率。展望未來，我們計劃通過進一步優化這些領域的成本並逐步轉向針對特定區域的定價來解決這個問題。

Non-GAAP R&D expense were $10.5 million in Q2, up 114% year-over-year, as we continue to build our R&D team. R&D expense represented 31.1% of total revenues in the quarter, slightly lower than 33% in Q2 last year. Looking forward, we will continue to focus on our investment on R&D to drive product innovation and strengthen our technology leadership.

隨著我們繼續建立我們的研發團隊，第二季度非美國通用會計準則的研發費用為 1050 萬美元，同比增長 114%。研發費用佔該季度總收入的 31.1%，略低於去年第二季度的 33%。展望未來，我們將繼續專注於研發投資，以推動產品創新並加強我們的技術領先地位。

Non-GAAP sales and marketing expenses were $5.5 million in Q2, up 22% year-over-year, mainly attributable to team expansion and increased advertising expenses. Sales and marketing expenses represented 16.2% of total revenues in the quarter compared to 30.4% in Q2 last year. The significant 14% drop in percentage clearly demonstrates the efficiency and scalability of our developer-centric go-to-market model.

第二季度非 GAAP 銷售和營銷費用為 550 萬美元，同比增長 22%，主要是由於團隊擴張和廣告費用增加。銷售和營銷費用佔本季度總收入的 16.2%，而去年第二季度為 30.4%。 14% 的顯著下降清楚地表明了我們以開發人員為中心的上市模型的效率和可擴展性。

Non-GAAP G&A expenses were $2.6 million in Q2, up 1.8% year-over-year, mainly due to team expansion and professional service fees related to the IPO. G&A expenses represented 7.6% of total revenues in the quarter compared to 8.3% in Q2 last year. Non-GAAP operating income was $4.7 million, translating to a 13.9% non-GAAP operating margin in first quarter. This compares to a net loss margin of 2.2% in Q2 last year.

第二季度非美國通用會計準則 G&A 費用為 260 萬美元，同比增長 1.8%，主要是由於團隊擴張和與 IPO 相關的專業服務費。 G&A 費用佔本季度總收入的 7.6%，而去年第二季度為 8.3%。非 GAAP 營業收入為 470 萬美元，相當於第一季度非 GAAP 營業利潤率為 13.9%。相比之下，去年第二季度的淨虧損率為 2.2%。

Adjusted EBITDA was $5.7 million in Q2 with a 16.9% margin compared to a 0.7% margin in Q2 last year.

第二季度調整後的 EBITDA 為 570 萬美元，利潤率為 16.9%，而去年第二季度的利潤率為 0.7%。

Turning to cash flow. Our operating cash flow was positive $7.5 million in Q2, up from negative $4.9 million last year. Free cash flow was positive $3.6 million in Q2, up from negative $6.6 million last year.

轉向現金流。我們第二季度的經營現金流為正 750 萬美元，高於去年的負 490 萬美元。第二季度自由現金流為正 360 萬美元，高於去年的負 660 萬美元。

Moving on to balance sheet. We ended Q2 with $641 million in cash and cash equivalents, up from $152 million at the end of Q1. The increase was primarily due to the net proceeds from our IPO and the concurrent private placement as well as a positive free cash flow.

繼續資產負債表。我們在第二季度末擁有 6.41 億美元的現金和現金等價物，高於第一季度末的 1.52 億美元。這一增長主要是由於我們的首次公開募股和同時進行的私募配售的淨收益以及正的自由現金流。

Now turning to guidance. COVID-19 is still an unprecedented variable for our business model, where historical experience may not apply. Our guidance on full year revenue reflects a number of assumptions that are subject to change based on uncertainties related to the impact of the COVID-19 pandemic. With that, for the full year of 2020, we expect revenue to be in the range of $125 million to $130 million, which would represent approximately 94% to 102% year-over-year growth.

現在轉向指導。對於我們的商業模式而言，COVID-19 仍然是一個前所未有的變量，歷史經驗可能並不適用。我們對全年收入的指導反映了一些假設，這些假設可能會根據與 COVID-19 大流行影響相關的不確定性而發生變化。因此，我們預計 2020 年全年收入將在 1.25 億美元至 1.3 億美元之間，同比增長約 94% 至 102%。

In closing, we executed well in Q2, and we are proud of how our team dedicated themselves to supporting our developers and customers around the word. Thank you to the entire Agora team and everyone. Please stay healthy and safe.

最後，我們在第二季度表現良好，我們為我們的團隊如何致力於支持我們的開發人員和客戶而感到自豪。感謝整個 Agora 團隊和所有人。請保持健康和安全。

Operator, let's open up for questions.

接線員，讓我們打開問題。

(Operator Instructions) The first question we have is from the line of Emerson Chan from Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Emerson Chan。

Management, I have 3 questions. The first question is about the COVID impact. I just want to get a rough sense of how much COVID still contributes to the growth in Q2. And what kinds of monthly traffic trend we have been seeing as we move from May, June to July? And secondly, how should we look at our long-term growth in post-COVID environment? In the second half of this year, we expect revenue to grow at a 54% to 67% year-on-year, which I think there should be limited COVID impact in China. So do we expect this growth rate to sustain in the next few years?

管理，我有3個問題。第一個問題是關於 COVID 的影響。我只是想大致了解一下 COVID 仍對第二季度的增長做出了多大貢獻。從 5 月、6 月到 7 月，我們看到了什麼樣的月度流量趨勢？其次，我們應該如何看待我們在後 COVID 環境中的長期增長？今年下半年，我們預計收入將同比增長 54% 至 67%，我認為這對中國的 COVID 影響應該是有限的。那麼，我們是否預計這種增長率會在未來幾年內持續下去？

And for my last question, which is about the overseas expansion, especially in the U.S. I'm just curious on how we view this opportunity now given the current political environment? In terms of our full year guidance, how much overseas revenue growth we embedded in our guidance? Do we assume any impact from the potential restructuring in the U.S. and current political environment?

最後一個問題是關於海外擴張，尤其是在美國的擴張。我很好奇，鑑於當前的政治環境，我們現在如何看待這個機會？就我們的全年指導而言，我們在指導中嵌入了多少海外收入增長？我們是否假設美國潛在的重組和當前的政治環境會產生任何影響？

Thank you, Emerson. I will take the first 2 questions, and maybe Tony can talk about the third one. So as I said, in China, COVID really -- the situation really eased in -- toward end of April, mid-May. And after that, I will say, the temporary spike in usage caused by COVID was really impacted outside China. However, same -- remain pretty much the same in Q2 compared to, say, March. And therefore, actually, we see demand remain at heightened levels and actually a strong growth still from new apps use cases and the increasing usage from users.

謝謝你，愛默生。我會回答前兩個問題，也許托尼可以談談第三個問題。所以正如我所說，在中國，COVID 真的 - 情況真的緩和了 - 接近 4 月底，5 月中旬。在那之後，我要說的是，由 COVID 引起的暫時性使用高峰確實在中國以外受到了影響。但是，與 3 月份相比，第二季度的情況幾乎相同。因此，實際上，我們看到需求仍處於較高水平，並且實際上仍因新應用用例和用戶使用量的增加而強勁增長。

So it's a mix of 2 different situations. And it's very hard to quantify exactly how much additional usage was caused by COVID-19. But I would say, it's probably not more than 20% that was really caused by the COVID-19 situation.

所以這是兩種不同情況的混合。並且很難準確量化 COVID-19 造成的額外使用量。但我想說，真正由 COVID-19 情況引起的可能不超過 20%。

And in terms of the environment, I guess, the environment in June, July and early August, for now so far, it's pretty healthy. And I would say, environment today is, to a large extent, free from the impact of COVID-19. So we would expect for the end of Q3 -- for the quarter of Q4, results shouldn't have too much impact from COVID-19. Of course, that's assuming the situation continues to stabilize and without any further worsening in situation such as the -- what people call second wave. So that's the first question.

而就環境而言，我猜，6、7、8月初的環境，目前來看，還是比較健康的。我想說，今天的環境在很大程度上不受 COVID-19 的影響。因此，我們預計第三季度末——第四季度的結果應該不會受到 COVID-19 的太大影響。當然，這是假設情況繼續穩定並且沒有任何進一步惡化的情況，例如人們所說的第二波。所以這是第一個問題。

And for the second question, we do see that running into the heart of the COVID-19, we will see demand spike significantly. And after things stabilizes, demand will -- some of the demand will go back. However, as situation in China has clearly shown, even after COVID-19, the demand will not go back to pre-COVID levels. And again, that's because people have really changed their attitudes towards using video engagement across distance, instead of having to do everything face-to-face. And developers and businesses also come to -- have come to appreciate the efficiency and the convenience of the video engagement. And that's why we see many more use cases and you'll see users stick around with new -- [to the how] video engagement, and that will persist now. So we do see very strong long-term prospect.

對於第二個問題，我們確實看到進入 COVID-19 的核心，我們將看到需求大幅飆升。在事情穩定下來之後，需求將會——一些需求會回落。但是，正如中國的情況清楚地表明的那樣，即使在 COVID-19 之後，需求也不會回到 COVID 之前的水平。再一次，這是因為人們已經真正改變了他們對遠程使用視頻參與的態度，而不是必鬚麵對面地做所有事情。開發人員和企業也開始意識到視頻參與的效率和便利性。這就是我們看到更多用例的原因，您會看到用戶堅持使用新的 - [to the how] 視頻參與，並且現在將持續存在。因此，我們確實看到了非常強勁的長期前景。

And in terms of revenue growth, we do see that long-term demand is definitely there. However, what we cannot control is the emergence and expansion -- I'm sorry, emergence and maturity of use cases. That's subject to the developers to eventually see and realize long-term potential. What we can do is provide them the best tools possible. And that's really our focus.

在收入增長方面，我們確實看到長期需求肯定存在。但是，我們無法控制的是出現和擴展——對不起，用例的出現和成熟。這取決於開發人員最終看到並實現長期潛力。我們能做的就是為他們提供最好的工具。這確實是我們的重點。

All right. For the third question on -- since the beginning, we want to build a global product and serve global developers and customers. And that has been our commitment from the -- from almost day 1 of the company.

好的。關於第三個問題——從一開始，我們就想打造一個全球化的產品，服務於全球的開發者和客戶。從公司成立的第一天起，這就是我們的承諾。

Now we already have customers around the world, not just in U.S. or China. We will continue to focus serving global developers and customers. And the trend we are seeing is developers and customers are also becoming even more distributed and diversified. Many of them now have workers with their team across geographies and serve users also around the globe. It's hard to say where -- many of those where they are really based. So we will continue to provide better service to customers and deliver in any region around the globe. And we continue to be in -- markets other than China and the U.S. will contribute a significant portion of revenue in longer term.

現在我們已經在世界各地擁有客戶，而不僅僅是在美國或中國。我們將繼續專注於服務全球開發者和客戶。我們看到的趨勢是開發人員和客戶也變得更加分散和多樣化。他們中的許多人現在擁有跨地區團隊的員工，並為全球用戶提供服務。很難說在哪裡——其中很多是他們真正的基地。因此，我們將繼續為客戶提供更好的服務，並在全球任何地區交付。我們將繼續在中國和美國以外的市場長期貢獻很大一部分收入。

(Operator Instructions) The first (sic) [second] question we have is from the line of Yang Liu from Morgan Stanley.

（操作員說明）我們的第一個（原文如此）[第二個]問題來自摩根士丹利的 Yang Liu。

Three questions from my side. The first one, could management update us in terms of the demand dynamics from different verticals? I remember that online education is one of the biggest contributors before the IPO. How about the revenue contribution in the second quarter? And how about the growth in emerging use cases like enterprise communication and telemedicine, et cetera?

我身邊的三個問題。第一個問題，管理層能否根據不同垂直領域的需求動態更新我們？我記得在 IPO 之前，在線教育是最大的貢獻者之一。第二季度的收入貢獻如何？企業通信和遠程醫療等新興用例的增長情況如何？

The second question is the gross margin outlook. We are happy to see that the company is expanding to new regions. But the high infrastructure cost, there is a kind of concern. What should we look at the forecast in the long-term gross margin given the dynamics of entering new market and also streamlining costs there?

第二個問題是毛利率前景。我們很高興看到公司正在向新的地區擴張。但高昂的基礎設施成本，有一種擔憂。考慮到進入新市場的動態以及在那裡精簡成本，我們應該如何看待長期毛利率的預測？

And the third question is could management update us in terms of the technology performance versus major competitors in different markets, especially given actually Agora launched the first industry standard. Do you expect that competitors will be able to catch up in terms of the technology performance?

第三個問題是管理層能否更新我們與不同市場主要競爭對手的技術性能，特別是考慮到 Agora 實際上推出了第一個行業標準。您是否期望競爭對手能夠在技術性能方面趕上？

Thank you. So I will take the first 2 questions. First of all, on demand dynamics, in fact, the contribution on education in Q2 was lower compared to Q1. And the reason was that in China, where we generate a majority of revenue from the education sector at the moment, Q1 was really kind of the peak of the usage level because all the schools were closed and a lot of the education providers had to move all their classes online and that caused significant increase in demand. And towards end of April and May, gradually schools reopened across the country with a few exceptions and then some of -- most demand actually fell back. And that's why in the short term, Q2 compared to Q1, in the short term, demand from education actually decreased. However, looking forward, we continue to believe that education is the most promising vertical, both because the online education sector is growing very rapidly, not just in China, but across the globe.

謝謝你。所以我會回答前兩個問題。首先，點播動態，其實Q2對教育的貢獻比Q1要低。原因是在中國，我們目前大部分收入來自教育部門，第一季度確實是使用水平的高峰，因為所有學校都關閉了，許多教育提供者不得不搬家他們所有的課程都在線上，這導致需求顯著增加。到 4 月底和 5 月底，全國各地的學校逐漸重新開學，但有一些例外，然後其中一些——大多數需求實際上回落了。這就是為什麼在短期內，第二季度與第一季度相比，在短期內，教育需求實際上下降了。然而，展望未來，我們仍然認為教育是最有前途的垂直領域，因為在線教育行業正在快速增長，不僅在中國，而且在全球範圍內。

And secondly, the provisions on public school education are also incorporating more and more video features for distance learning. That's part of their overall offering. So we see -- we continue to see strong demand for our performance. Previously, we're mainly focused on small class, one. And now we see that more and more large classes are also moving -- are also starting to adopt IT technology powered by us instead of the traditional one-way streaming technology.

其次，關於公立學校教育的規定也越來越多地融入遠程學習的視頻功能。這是他們整體產品的一部分。所以我們看到 - 我們繼續看到對我們業績的強勁需求。以前，我們主要關注小班，一。現在我們看到越來越多的大型課程也在移動——也開始採用由我們提供支持的 IT 技術，而不是傳統的單向流技術。

And in terms of emerging use cases, we continue to see many experiments. Actually, one Tony mentioned earlier in his remarks, like co-listening, co-watching, like exam proctoring, obviously, as we mentioned in the past communication and also health care. These currently contribute to a small portion of total revenue, but we see the strong growth there. So if we take a longer-term view, we do think it will contribute to a great -- greater proportion of our revenue.

在新興用例方面，我們繼續看到許多實驗。實際上，Tony 之前在他的講話中提到了一個，比如共同聆聽、共同觀看、就像考試監考，顯然，正如我們在過去的溝通和醫療保健中提到的那樣。這些目前只佔總收入的一小部分，但我們看到那裡的強勁增長。因此，如果我們從長遠來看，我們確實認為這將有助於我們收入的很大一部分。

So the second question on gross margin outlook. We saw in Q2, again, partially due to COVID-19 that a lot more use cases, a lot more apps from countries such as -- regions in South America, South Asia, Eastern Europe or even Africa. And the situation in these areas is infrastructure cost, bandwidth, co-location space and usage is actually more expensive. On the other hand, you -- price is the same, and that caused depressed margin in these areas. Previously, the revenue contribution from these areas were much smaller. So the impact was less too. And we also saw that there was much more international or cross-region engagement activities on the telephone, which obviously would involve higher infrastructure cost. But again, we charge the same price for any engagement. And that's, again, partially due to COVID. So as I said, we will try our best to reduce our cost in those areas and will start experimenting with regional pricing so that we can mitigate the issue. However, with that said, in the near term, in the immediate next 1, 2 quarters, maybe we're continuing to be under pressure in terms of gross margin. In the longer term, we do believe, as we scale, we will enjoy from better economy of scale. And hopefully, the margin will come back to a more normal level as we have seen in the past.

所以關於毛利率前景的第二個問題。我們在第二季度再次看到，部分由於 COVID-19，更多的用例，更多來自南美、南亞、東歐甚至非洲等國家/地區的應用程序。這些領域的情況是基礎設施成本、帶寬、託管空間和使用實際上更昂貴。另一方面，你——價格是一樣的，這導致這些領域的利潤率下降。以前，這些領域的收入貢獻要小得多。所以影響也較小。我們還看到，電話上的國際或跨地區參與活動要多得多，這顯然會涉及更高的基礎設施成本。但同樣，我們對任何參與收取相同的價格。這又是部分由於 COVID。所以正如我所說，我們將盡最大努力降低這些領域的成本，並將開始嘗試區域定價，以便我們可以緩解這個問題。然而，話雖如此，在短期內，在接下來的 1、2 個季度，我們可能在毛利率方面繼續承受壓力。從長遠來看，我們確實相信，隨著我們的規模擴大，我們將享受到更好的規模經濟。並且希望利潤率能像我們過去看到的那樣回到更正常的水平。

All right. For the technology performance leadership, I think I mentioned a few things, including on the [backbone], we also keep rolling out our improved audio and video quality releases. But one thing, I specifically mentioned, is XRA where it's an industry-first experience level agreement, which guarantees the experience level we provide through our RTE APIs, which is not really like in the past. It's only a guarantee of your availability. But I'd rather give you a sense and the level of guarantee of how good those audio and video experience are. It's like adding a dashboard for a car. Initially before, in the past, it's almost like every customer is driving a car without dashboard. But now we're adding the dashboard for the first time for the whole industry. And we are also working on additional new building blocks to help developers to easy -- to more easily create real-time engagement sessions or use cases. So for that, I think that's something -- like the experience level agreement, it's something really focused on helping our customers and developers better use the technologies to create their user experience or use cases. It would be something that in the future, every provider for such APIs has to provide. I believe that's going to be the trend.

好的。對於技術性能領先，我想我提到了一些事情，包括在 [backbone] 上，我們還不斷推出改進的音頻和視頻質量版本。但是，我特別提到了 XRA，它是行業首創的體驗級別協議，它保證了我們通過 RTE API 提供的體驗級別，這與過去不同。這只是對您的可用性的保證。但我寧願給你一個感覺和這些音頻和視頻體驗有多好的保證水平。這就像為汽車添加儀表板。最初，在過去，幾乎每個客戶都在駕駛沒有儀表板的汽車。但現在我們首次為整個行業添加儀表板。我們還在開發其他新的構建塊，以幫助開發人員更輕鬆地創建實時參與會話或用例。因此，我認為這就是——就像體驗級別協議一樣，它真正專注於幫助我們的客戶和開發人員更好地使用這些技術來創建他們的用戶體驗或用例。這將是未來每個此類 API 的提供者都必須提供的東西。我相信這將是趨勢。

For -- to that topic, I'd also like to invite you to join us at our RTE 2020 Conference for more product announcement and real-time engagement news. This is an annual conference hosted by Agora in San Francisco and Beijing. This year, it will be a global virtual event starting on October 13 to 14, for U.S. and European -- for Europe -- for U.S. and Europe time zone. And then October 22 to 24 for Asia time zone. Registrations will be open very soon.

對於這個主題，我還想邀請您參加我們的 RTE 2020 會議，了解更多產品公告和實時參與新聞。這是由 Agora 在舊金山和北京舉辦的年度會議。今年，它將是一個全球虛擬活動，從 10 月 13 日至 14 日開始，針對美國和歐洲——針對歐洲——針對美國和歐洲時區。然後是亞洲時區的 10 月 22 日至 24 日。註冊將很快開放。

A quick follow-up here is in relation with the escalating China-U.S. tension. Given Agora is running 2 headquarters in Silicon Valley and Shanghai and have high exposure in both China and the U.S. markets, how does this kind of geopolitical tension impact the business, [particularly] given some of the customers already got banned in the U.S.?

這裡的一個快速跟進是與不斷升級的中美關係有關。緊張。鑑於 Agora 在矽谷和上海設有兩個總部，並且在中國和美國市場都有很高的曝光率，這種地緣政治緊張局勢如何影響業務，[特別是]考慮到一些客戶已經在美國被禁止？

So U.S. revenue contributions so far for us is high single-digit percentage. We're not presently aware of any impact or potential impact to our business. But we don't want to speculate on where things will go. We will use worry -- we will be more careful and watch closely to how things will go. As always, to us, I think as always, change is the only certainty as we participate in the future. Today, the work is perhaps in the fate of change, which some of us may find uncertainly. Perhaps some of those changes are similarly beyond our control. And we don't want to focus on things we cannot control. Rather, we want to instead focus on the things we can work on. In any case, we want to reiterate our unwavering commitment to our global developers and customers, including those in the U.S. We are fully prepared and we'll meet our challenge, wherever they may be and whatever it may take. And we will always be open and transparent to our most important assets, our people, our developers and our customers.

因此，到目前為止，美國對我們的收入貢獻是高個位數百分比。我們目前不知道對我們的業務有任何影響或潛在影響。但我們不想推測事情會走向何方。我們會用擔心——我們會更加小心，密切關注事情的進展。與往常一樣，對我們來說，我一如既往地認為，改變是我們參與未來的唯一確定性。今天，這項工作可能處於變化的命運中，我們中的一些人可能會不確定。也許其中一些變化同樣超出了我們的控制範圍。而且我們不想專注於我們無法控制的事情。相反，我們希望專注於我們可以做的事情。無論如何，我們想重申我們對全球開發商和客戶（包括美國的客戶）的堅定承諾。我們已做好充分準備，我們將迎接挑戰，無論他們身在何處，不惜一切代價。我們將始終對我們最重要的資產、我們的員工、我們的開發人員和我們的客戶保持開放和透明。

(Operator Instructions) The next one we have is from the line of Rich Valera from Needham.

（操作員說明）我們擁有的下一個來自 Needham 的 Rich Valera 線。

A couple of questions from me. First, you saw really strong quarter-over-quarter gains in new active customers on the platform in Q2. And I'm wondering what you attribute that to. If there was any new or different marketing or new business development activities that may have driven that? Or do you think perhaps COVID was a catalyst? But presumably, those customers are new and didn't really contribute to revenue, but will contribute to future periods. So just wanted to see if you can give any color on those strong new customer additions.

我有幾個問題。首先，您看到第二季度平台上新活躍客戶的季度環比增長非常強勁。我想知道您將其歸因於什麼。是否有任何新的或不同的營銷或新的業務發展活動可能推動了這一點？還是您認為 COVID 可能是催化劑？但據推測，這些客戶是新客戶，並沒有真正為收入做出貢獻，但會為未來的時期做出貢獻。所以只是想看看你是否可以為這些強大的新客戶添加任何顏色。

Sure. So for us, it's really a conversion cycle. Initially, we need to have developer registration. So [these purchased on the platform it carries per minute, they try to] extend. And then as the use case is validated, it will start to scale. And then gradually they become customers and revenue start to increase. So we increased in number of active customers in Q2, which we define as customers who contributed to company $100 of revenue in past 4 months.

當然。所以對我們來說，這確實是一個轉換週期。最初，我們需要進行開發者註冊。所以[這些在它每分鐘承載的平台上購買，他們試圖]延長。然後隨著用例的驗證，它將開始擴展。然後逐漸他們成為客戶，收入開始增加。因此，我們在第二季度增加了活躍客戶的數量，我們將其定義為過去 4 個月為公司貢獻 100 美元收入的客戶。

Actually, a precursor to that was a rapid increase in developer registration. As you can see, we added more than 20,000 registration apps in Q1 and again, more than 30,000 in Q2. I guess that's probably one indicator you can look at in term of the source behind the customer growth.

實際上，其前身是開發者註冊的迅速增加。如您所見，我們在第一季度添加了 20,000 多個註冊應用程序，在第二季度再次添加了 30,000 多個。我想這可能是您可以從客戶增長背後的來源來看的一個指標。

That makes sense. And then you'd identified 2 10%-plus customers in the first quarter. I think one was a social media platform. One was an e-learning customer. Did you have any 10% customers in the second quarter?

那講得通。然後您在第一季度確定了 2 個 10% 以上的客戶。我認為一個是社交媒體平台。一個是電子學習客戶。您在第二季度有 10% 的客戶嗎？

The answer is no. Both of them are still our customers, and each of them contributed about 9% of revenue in Q2, down from 14% and 10% in Q1. And as we disclosed before, the 14% customer in Q1 was education customer. And a big part of their business was the off-line physical classrooms. And that's why in Q1, they will still have classes online was our help. And in Q2, actually, some of that demand faded. But still, they remain as a very significant customer of ours.

答案是不。他們倆仍然是我們的客戶，他們每個人在第二季度貢獻了大約 9% 的收入，低於第一季度的 14% 和 10%。正如我們之前披露的，第一季度 14% 的客戶是教育客戶。他們業務的很大一部分是線下實體教室。這就是為什麼在第一季度，他們仍然會在線上課是我們的幫助。實際上，在第二季度，其中一些需求已經消退。但是，他們仍然是我們非常重要的客戶。

Understood. And then just one more, if I could. Your new sort of quality and experience measuring platform, I think you call it XRA, can you tell us where you are in the rollout of that? Has it been out there [are you talking] to your customers at this point? And what feedback have you gotten on it if it has been out in the field at this point?

明白了。如果可以的話，就再來一個。你的新型質量和體驗測量平台，我想你稱之為 XRA，你能告訴我們你在推出那個平台嗎？目前它是否已經在[你在談論]你的客戶嗎？如果此時它已經出現在該領域，您對此有何反饋？

Yes. I would say, it's in the process of launching such an agreement with our customers. Again, it's experience level agreement. Basically, it's not guaranteed reliability of our servers or APIs rather a guarantee the latency of real-time audio or video or the trigger of the real-time audio/video, those kind of things. And by looking at those measurement, you would be able to know, no matter it's 1 million minutes running a day on our platform or 10 million minutes a day running on our platform, you will know how many minutes is in premium quality. How many minutes out of the total volume is non-premium quality, which is a good transparency to our customers view or understanding of the service -- real-time engagement service they are running on. Clearly, they would be running those services for their education purpose or social purpose. By be able to those numbers and get to know how good it is or how good -- how bad it is, they can have a sense of how their social education customers' satisfaction would be. That's what we learned from our early sign-ups or agreement signing with our customers so far. It's -- I think we received a tremendous welcome for that rollout.

是的。我想說，它正在與我們的客戶簽訂這樣的協議。同樣，這是經驗水平協議。基本上，它不保證我們的服務器或 API 的可靠性，而是保證實時音頻或視頻的延遲或實時音頻/視頻的觸發，諸如此類。通過查看這些測量結果，您將能夠知道，無論是在我們的平台上每天運行 100 萬分鐘還是在我們的平台上每天運行 1000 萬分鐘，您都會知道有多少分鐘是優質的。總音量中有多少分鐘是非優質質量，這對於我們的客戶對服務的看法或理解來說是一個很好的透明度——他們正在運行的實時參與服務。顯然，他們將出於教育目的或社會目的運行這些服務。通過能夠了解這些數字並了解它有多好或多好——它有多壞，他們可以了解他們的社會教育客戶的滿意度如何。這就是我們迄今為止從早期註冊或與客戶簽署的協議中學到的。這是 - 我認為我們對該推出感到非常歡迎。

And maybe I can further point out that this kind of product or service, it's not really for our interest. It's more rather in consider of benefit to our customers and developers. It actually give us a higher standard to met -- to meet in the future. We have to deliver the experience level so that we will be able to satisfy the agreement we have with them. And we also put in real commitment by agreeing if we are not meeting the level, we will complement them with additional credits in the future. So this is a very serious commitment to our customers.

也許我可以進一步指出，這種產品或服務，並不是我們真正感興趣的。更多的是考慮到我們的客戶和開發人員的利益。它實際上給了我們一個更高的標準來滿足——在未來滿足。我們必須提供經驗水平，以便我們能夠滿足與他們達成的協議。我們還通過同意如果我們沒有達到這個水平來做出真正的承諾，我們將在未來用額外的學分來補充它們。所以這是對我們客戶的一個非常嚴肅的承諾。

(Operator Instructions) The next one we have is from [May Lee] from US Tiger Securities.

（操作員說明）我們的下一個來自美國老虎證券的[May Lee]。

So one question for Tony, another one for Jingbo. First for Tony, can you just give us a preview of your product road map establishing in R&D in the future? For example, what kind of new products or futures are you going to introduce in the next 1 year or 2?

托尼一個問題，靜波另一個問題。首先是托尼，您能否給我們預覽一下您未來在研發中建立的產品路線圖？例如，未來 1 年或 2 年你將推出什麼樣的新產品或期貨？

And secondly, for Jingbo. As your sales and marketing expense ratio improved a lot in the quarter, I believe your [direct driven] go-to-market motion is very efficient. But given the huge amount of opportunities going forward, how do you think about the balance between investments for the future and productivity improvement?

其次，對於靜波。由於您的銷售和營銷費用率在本季度有很大改善，我相信您的 [直接驅動] 進入市場的行動非常有效。但是，鑑於未來存在大量機會，您如何看待未來投資與生產力提高之間的平衡？

Yes. We -- as I mentioned a little bit just now, we have quite a few products in -- under development on our road map, where one of the things I mentioned was real-time engagement APIs. It's going to provide additional support other than just real-time audio and video. And we'll accelerate or help our developers and customers more efficiently create new use cases. This is something we are going to roll out in the next quarter or so.

是的。我們——正如我剛才提到的，我們有相當多的產品——在我們的路線圖上正在開發中，我提到的其中一件事是實時參與 API。除了實時音頻和視頻之外，它將提供額外的支持。我們將加速或幫助我們的開發人員和客戶更有效地創建新的用例。這是我們將在下個季度左右推出的東西。

And as I mentioned, the XRA, the experience level agreement is another major offering or major commitment we start to roll out to our customers in regions. And there are more exciting news that will be announced in our RTE 2020 conference, which is annual conference. It's also the largest one in the industry. You are welcome to join that event to know more around those announcements.

正如我所提到的，XRA 體驗級別協議是我們開始向各地區客戶推出的另一項主要產品或主要承諾。還有更多激動人心的消息將在我們的 RTE 2020 年會中公佈。這也是業內最大的一個。歡迎您參加該活動，以了解有關這些公告的更多信息。

So on the sales and marketing spend. Yes, it's true that the sales and marketing spend as percentage of revenue dropped significantly in this year compared with the -- compared to last year. And I think that's largely due to a developer-focused go-to-market model for developer community and enthusiasm.

所以關於銷售和營銷支出。是的，與去年相比，今年的銷售和營銷支出佔收入的百分比確實顯著下降。我認為這主要是由於開發人員社區和熱情的以開發人員為中心的市場模式。

What we have been saying is that this is not a salesperson business model. So what that means is we can't really just drive sales simply by hiring more salesperson. This is a product that requires deep integration and require the trust from developers. And that's why it's always more important, more efficient to go where the developers are. And so far, we have been doing that through marketing, through conferences and through all the online forums and developer hubs where we have pretty strong presence, and -- so it's the word-of-mouth of developers who have used our service. So it's hard work and it's pretty long-term work. And that's why in this year, when revenue increased, the sales and marketing expense simply cannot catch up, and that's why we enjoyed very strong operating leverage and our margin improved significantly.

我們一直在說的是，這不是銷售人員的商業模式。所以這意味著我們不能僅僅通過僱傭更多的銷售人員來推動銷售。這是一個需要深度集成的產品，需要開發者的信任。這就是為什麼去開發人員所在的地方總是更重要、更高效的原因。到目前為止，我們一直在通過營銷、會議以及所有在線論壇和開發者中心來做到這一點，我們在這些地方擁有相當強大的影響力，而且——所以這是使用我們服務的開發者的口口相傳。所以這是一項艱苦的工作，而且是一項相當長期的工作。這就是為什麼在今年收入增加的情況下，銷售和營銷費用根本無法趕上，這就是為什麼我們享有非常強大的經營槓桿和我們的利潤率顯著提高的原因。

So looking to the future, I totally understand what you mean, how to balance the investment with profitability in the footprint. I guess the point is now that we don't invest for the future. We certainly do. But the question is how can we invest more efficiently? We think, again, we'll do a lot of new things to further strengthen our developer community and developer engagement efforts, but that will not be in the form of simply hiring more salespeople. And again, what that also means is, we don't expect sales and marketing expense will grow at the same speed as revenue.

所以展望未來，我完全理解你的意思，如何平衡投資與足蹟的盈利能力。我想現在的重點是我們不為未來投資。我們當然會。但問題是我們如何才能更有效地進行投資？我們再次認為，我們會做很多新的事情來進一步加強我們的開發者社區和開發者參與度，但這不會是簡單地僱傭更多的銷售人員。同樣，這也意味著，我們預計銷售和營銷費用不會以與收入相同的速度增長。

Thank you. We don't have any further questions at this time. (Operator Instructions) And the next question we have is from the line of [Kevin Shaw] from BlackRock.

謝謝你。目前我們沒有任何進一步的問題。 （操作員說明）我們的下一個問題來自貝萊德的 [Kevin Shaw]。

Congrats on the great quarter. So I have 2 questions. So first of all is how do we think about our customers such as the -- for example, the education clients or the short video client, did they do their own RTE solutions internally? Do we think that self-development can be a threat going forward?

祝賀偉大的季度。所以我有2個問題。首先是我們如何看待我們的客戶，例如教育客戶或短視頻客戶，他們是否在內部進行了自己的 RTE 解決方案？我們認為自我發展會成為未來的威脅嗎？

And my second question is how do we think about industry level competition? What is the overall market share? And what is the pricing comparison versus others?

我的第二個問題是我們如何看待行業層面的競爭？整體市場份額是多少？與其他人的定價比較是什麼？

All right. So for the customers who's trying to build their own in-house solution, I think it's the thing we've been dealing with from the beginning of this company or this business. Actually, initially, because there's no so-called third-party professional provider on this, we have to convert one by one from in-house technology to our platform. And we've been successful with midsized, smaller size or some of those verticals, we're very successfully migrating almost all of them. But still, there will be several or some of those larger ones, they do tend to want to at least try to build something on their own, for the reason of maybe thinking they could be something as good or it could be more customized to their needs, which we would consider that as normal practice we'll be running to day-to-day. But from our view, I think our focus is trying to really become the professional third-party provider, which can show the strength on quality side, on continued use of APIs, on capability and global coverage, all that. And in fact, the XRA agreement, as I mentioned just now, is something I never see any in-house developers really have, which we think as a professional provider can further strengthen our strength showing our value to those customers. But it will be a trend that we continue to manage to increase our competitive advantage over those practices, and we have the belief that eventually, a third-party professional provider will be more efficient and more effective and more professional in doing so.

好的。因此，對於那些試圖建立自己的內部解決方案的客戶，我認為這是我們從這家公司或這項業務一開始就一直在處理的事情。實際上，最初因為沒有所謂的第三方專業供應商，所以我們必須從內部技術到我們的平台一個一個地轉換。我們在中型、小型或其中一些垂直領域取得了成功，我們非常成功地遷移了幾乎所有這些領域。但是，仍然會有幾個或一些更大的，他們確實傾向於至少嘗試自己構建一些東西，因為可能認為他們可能是一樣好的東西，或者它可以更適合他們的需要，我們會認為這是我們每天都會運行的正常做法。但在我們看來，我認為我們的重點是努力真正成為專業的第三方提供商，這可以在質量方面、在 API 的持續使用、能力和全球覆蓋等方面展示實力。事實上，正如我剛才提到的，XRA 協議是我從未見過任何內部開發人員真正擁有的東西，我們認為作為專業提供商可以進一步增強我們的實力，向這些客戶展示我們的價值。但是，我們將繼續設法增加我們在這些實踐中的競爭優勢，這將是一種趨勢，我們相信，最終，第三方專業提供商將更有效率、更有效和更專業地這樣做。

And other question is around competition. I think, again, this is a saying that in the industry from, I think, 3 years after we established and it's been growing, especially when the market becomes bigger and bigger. But overall, I think because the industry is quite early, maybe everyone in this industry, the understanding towards value proposition and the direction of the industry goals might not be the same. Like again, I will refer back to XRA. This is something we are the first one to roll out in the whole industry, which shows our understanding and our commitment to our developers' and customers' needs. While other companies does not really rolling out this offering, I don't think we are really competing on that direction. So we will look more into our customer demand and needs. And the truth is we actually see a lot of additional demand that we haven't yet fully satisfied, which is an area we are going to continue to focus on.

另一個問題是關於競爭的。我想，再一次，這是一個行業的說法，我認為，在我們成立 3 年後，它一直在增長，尤其是當市場變得越來越大時。但總的來說，我覺得因為這個行業還比較早，可能這個行業的每個人，對價值主張的理解和行業目標的方向可能都不一樣。同樣，我將參考 XRA。這是我們在整個行業中率先推出的產品，這表明我們對開發人員和客戶需求的理解和承諾。雖然其他公司並沒有真正推出這種產品，但我認為我們並沒有真正在這個方向上競爭。因此，我們將更多地關注我們的客戶需求和需求。事實上，我們實際上看到了許多我們尚未完全滿足的額外需求，這是我們將繼續關注的領域。

Again, we don't have any further questions at this time. (Operator Instructions) We don't have any further questions at this time. I'll now hand the conference back to today's presenters. Please continue.

同樣，我們目前沒有任何進一步的問題。 （操作員說明）我們目前沒有任何其他問題。我現在將會議交還給今天的演講者。請繼續。

All right. Thank you for joining our conference call, and welcome to -- again participate in our future events and join our RTE 2020 online events.

好的。感謝您加入我們的電話會議，並歡迎再次參加我們未來的活動並加入我們的 RTE 2020 在線活動。

Thank you. Good bye.

謝謝你。再見。

Ladies and gentlemen, this does conclude our conference for today. Thank you all for participating. You may now disconnect.

女士們先生們，今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。