Agora Earnings: What To Look For From API

Jabin Bastian /
2022/08/14 6:59 am EDT
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Communications infrastructure platform Agora (NASDAQ:API) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Last quarter Agora reported revenues of $38.5 million, down 4.07% year on year, beating analyst revenue expectations by 4.27%. It was a weak quarter for the company, with a slow revenue growth and a decline in net revenue retention rate. The company added 36 customers to a total of 2,706.

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 decline 5.05% year on year to $40.1 million, a significant deceleration from the 24.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 10.6%.

Looking at Agora's peers in the software development segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Bandwidth delivered top-line growth of 13.1% year on year, beating analyst estimates by 2.18% and Twilio reported revenues up 41% year on year, exceeding estimates by 2.43%. Bandwidth traded up 5.69% on the results, and Twilio was down 3.7%. Read our full analysis of Bandwidth's results here and Twilio's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 20.8% over the last month. Agora is down 3.4% during the same time, and is heading into the earnings with analyst price target of $9.2, compared to share price of $4.83.

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.