Agora (API) Q4 Earnings: What To Expect

Radek Strnad /
2023/02/27 4:34 am EST
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Communications infrastructure platform Agora (NASDAQ:API) will be reporting earnings today afternoon. Here's what you need to know.

Last quarter Agora reported revenues of $41 million, down 8.99% year on year, missing analyst expectations by 7.84%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and declining revenue. The company added 110 customers to a total of 2,987.

Is Agora buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Agora's revenue to grow 0.46% year on year to $40.6 million, slowing down from the 21.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.

Agora Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 5.3%.

Looking at Agora's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Twilio delivered top-line growth of 21.6% year on year, beating analyst estimates by 2.43% and Bandwidth reported revenues up 24.5% year on year, exceeding estimates by 6.81%. Twilio traded up 7.48% on the results, Bandwidth is down 7.76%. Read our full analysis of Twilio's results here and Bandwidth's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 0.93% over the last month. Agora is down 0.76% during the same time, and is heading into the earnings with with analyst price target of $5.5, compared to share price of $3.94.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.