Agora Earnings: What To Look For From API

Kayode Omotosho /
2023/05/29 3:50 am EDT

Communications infrastructure platform Agora (NASDAQ:API) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter Agora reported revenues of $40.1 million, down 0.66% year on year, missing analyst expectations by 1.12%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and a miss of the top line analyst estimates. The company added 79 customers to a total of 3,066.

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 6.05% year on year to $36.2 million, a further deceleration on the 4.08% year-over-year decrease 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 missed Wall St's revenue estimates twice over the last two years.

Looking at Agora's peers in the software development segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. F5 Networks delivered top-line growth of 10.9% year on year, beating analyst estimates by 0.62% and Cloudflare reported revenues up 36.8% year on year, missing analyst estimates by 0.22%. F5 Networks traded up 0.52% on the results, Cloudflare was down 23.2%. Read our full analysis of F5 Networks's results here and Cloudflare's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 9.73% over the last month. Agora is down 15.3% during the same time, and is heading into the earnings with analyst price target of $4.5, compared to share price of $2.93.

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.