Agora Inc Ads Down 9.09% To $2.80 After Earnings Miss

Agora Inc (API) missed earnings projections on 11/21/2023 for Q3 2023.

Agora Inc Ads's earnings came in at an EPS loss of $0.16 per share, 60% lower than estimates for an EPS loss of $0.1 per share. The firm maintained its loss per share over the past year. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Agora Inc Ads revenue averaged out to $40.2 million, with the business missing on those expectations with reported third-quarter revenue of $35 million. The $5.2 million (13%) negative revenue surprise led to negative 15% growth year-over-year as the firm reported revenue of $41 million in its year-ago quarter. The higher earnings growth compared to revenue points to Agora Inc Ads improving its profit margin.

The stock is down 9.09% to $2.80 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Agora Inc Ads a Neutral Sentiment Rank from InvestorsObserver.

Agora Inc Ads has performed a little above average during the past few months. Before the report, Agora Inc Ads received a Long-Term Technical Rank by InvestorsObserver of 52, putting it in the top half of stocks. The firm was recently trading at a 52-week low of $2.37 on October 3, 2023 and set a 52-week high on February 9, 2023 at $4.85.

Agora Inc provides real-time communication solutions. The company offers real-time video calling, voice calling, live audio and video streaming, recording, and real-time messaging. It serves the gaming, retail, and education industries. The company operates in the People's Republic of China and the United States of America and the majority of its revenue is derived from the People's Republic of China.