Agora Earnings: What To Look For From API

Jabin Bastian /
2022/11/21 3:35 am EST

Communications infrastructure platform Agora (NASDAQ:API) will be reporting earnings today after market hours. Here's what you need to know.

Last quarter Agora reported revenues of $40.9 million, down 3.19% year on year, beating analyst revenue expectations by 1.95%. It was a decent quarter for the company, with accelerating customer growth but declining revenue growth. The company added 171 customers to a total of 2,877.

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 1.25% year on year to $44.4 million, a deceleration on the 46% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 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 7.85%.

Looking at Agora's peers in the software development segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Bandwidth delivered top-line growth of 13.5% year on year, beating analyst estimates by 5.32% and Twilio reported revenues up 32.8% year on year, exceeding estimates by 1.04%. Bandwidth traded up 5.51% on the results, Twilio was down 14.6%. Read our full analysis of Bandwidth's results here and Twilio's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.92% over the last month. Agora is up 24.5% during the same time, and is heading into the earnings with analyst price target of $10.70, compared to share price of $3.2.

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.