VG - Agora: Becoming A More Attractive Investment With That Out-Of-China Strategy
- Agora's shares have been treading water despite the company beating revenue forecasts in every quarter since its June 2020 IPO.
- Thus, the downside seems more related to its large China exposure, where authorities are in the process of regulating the education sector, one of the company's main revenue sources.
- Considering the 46% growth in the last reported quarter and helped by the Easemob acquisition, the company has strength in the fiercely competitive CPaaS industry.
- With 30% of revenues coming from the U.S.-Rest of the world, Agora has the capacity to further power out-of-China growth, with the 50% mark constituting giving credence to the diversification strategy.
- For this purpose, Agora can rely on its high gross margins, lower debt level, and high cash position.
For further details see:
Agora: Becoming A More Attractive Investment With That Out-Of-China Strategy