API - Agora: Strong Balance Sheet And Reduced Cash Burn Provides Downside Protection
2024-07-27 04:48:14 ET
Summary
- Shares currently trade at a significant discount to the company’s net cash.
- The company’s international business shows solid growth, while its China business continues to struggle.
- Cash burn has continued to improve, but reaching profitability will depend on revenue growth accelerating in upcoming quarters.
Investment thesis
Agora ( API ) provides a B2B platform for real-time communication and interaction through text, voice and video. The company's APIs and SDKs allow developers to integrate multiple communication channels in their applications, with a greater focus towards video communication. The company differentiates itself by leveraging its technology to deliver exceptional live video quality which gives an enhanced user experience. At the end of Q1 last year, the company was restructured into two independent business so that its international business operated under the Agora brand, while the Chinese business operated under the Shengwang brand. The former continues to show solid growth while the latter has faced several headwinds leading to revenue declines....
Agora: Strong Balance Sheet And Reduced Cash Burn Provides Downside Protection