Communications infrastructure platform Agora (NASDAQ:API) will be reporting results tomorrow after market close. Here's what investors should know.
Last quarter Agora reported revenues of $40.3 million, up 21.4% year on year, beating analyst revenue expectations by 6.41%. It was a weaker quarter for the company, with full-year guidance missing analysts' expectations. The company added 106 customers to a total of 2,670.
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 8% year on year to $37 million, a further deceleration on the 13.1% 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.
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 11.5%.
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. Bandwidth delivered top-line growth of 15.7% year on year, beating analyst estimates by 4.43% and Twilio reported revenues up 48.3% year on year, exceeding estimates by 1.33%. Bandwidth traded flat on the results, and Twilio was up 1.63%. Read our full analysis of Bandwidth's results here and Twilio's results here.
Tech stocks have been facing declining investor sentiment in 2022 and software stocks have been swept alongside with it, with share price down on average 17.4% over the last month. Agora is up 0.99% during the same time, and is heading into the earnings with analyst price target of $14.9, compared to share price of $7.14.
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The author has no position in any of the stocks mentioned.