Agora (NASDAQ: API ) released first-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. Access the full call at https://edge.media-server.com/mmc/p/vbsrxuhv Summary Agora Inc. reported a 13.5% year-over-year increase in revenue for Q1 2026, reaching $37.7 million, with a GAAP net profit of $1.1 million, more than doubling from Q1 last year. The company launched Agent Studio, a no-code environment for AI agents, and expanded its conversational AI capabilities, emphasizing its potential to automate significant customer interactions. Agora Inc. predicts Q2 2026 revenue between $39 and $40 million, indicating a year-over-year growth of 13.7% to 16.6%, with a focus on further revenue acceleration. The company strengthened its enterprise collaboration market position with the Intelligent Meeting Engine product, offering enhanced AI-powered features and data security. A new strategic partnership with NetEase Enterprise Service Division was announced, aiming to enhance real-time video content moderation and AI agent solutions. Management expressed confidence in the AI segment's growth, targeting around 5% revenue contribution by the end of the year and anticipating GAAP operating profit in the second half of 2026. Full Transcript OPERATOR Good day and thank you for standing by. Welcome to The Agora Inc. First Quarter 2026 Financial Results Conference call. To ask a question during this session you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. The company's earnings result, press release, earnings presentation, SEC filings and a replay of today's call can be found on its IR website at Agora Inc's Investor Relations website. Joining me today are Tony Zhao, Founder, Chairman and CEO Jimbo Wang, the Company's CFO. During this call, the Company will make forward looking statements about its future financial performance and other future events and trends. These statements are only predictions that are based on what the Company believes today. The actual results may differ materially. These forward looking statements are subject to risks, uncertainties, assumptions and other factors that could affect the Company's financial results and the performance of its business and in which the Company discussed in detail in its filings with the sec, including today's call, earnings, press release and their risk factors and other information contained in a final prospect relating to its initial public offering. Agora Inc. has no obligations to update any forward looking statements the Company may make on today's call. Now with that, let me turn it over to Tony Hi Tony, Tony Zhao (Founder, Chairman and CEO) thank you operator and welcome everyone to our earnings call. I'll start with a review of our operating results for the quarter. I'm pleased to report our sixth consecutive quarter of GAAP profitability alongside another quarter of strong top line growth. Total revenue for the first quarter of 2026 reached $37.7 million, up 13.5% year over year growth, further accelerating our prior quarters. GAAP net profit was $1.1 million, more than double the level of Q1 last year. These results reflect the continued expansion of our real time engagement use cases globally as well as increasing contribution from AI related applications and products built with our solutions. Now let me turn to our business product and technology update for the quarter. Over the past several months we continue to make progress in bringing conversational AI to real world production, deepening the capabilities with our real time engagement infrastructure and expanding our ecosystem partnerships. In March we officially launched Agent Studio, a visual no code environment that enables developers and enterprise to rapidly build, test and deploy with AI agents at scale. We also introduced conversational AI agents for inbound use cases such as customer service as well as outbound use cases focused on sales and marketing. The market opportunity here is enormous. According to Gartner, Conversational agents are expected to automate 70% of customer interactions by 2027 and by 2028, AI agents are projected to outnumber human sellers by 10 to 1. At the same time, many enterprises still struggle to deploy voice AI in production environments. The challenge is not simply the AI model itself, but the complexity of multiple technology layers while maintaining low latency reliability and the natural conversational experience at scale. In addition, enterprise deployment require domain specific expertise. A successful voice AI agent must do more than respond accurately. It must reflect the tone, personality and workload of the industry it serves. For example, a car sales assistant and debt collection agent need very different conversational styles, content scarlets and customer engagement approaches. Our solution is designed to eliminate this complexity through a fully integrated stack that combines three core components. That allows enterprise to design, tests and deploy AI agent in minutes rather than weeks or months. Second, our conversational AI agent orchestrates ASR, large language model, and TTS capabilities with intelligent interaction handling, noise suppression, multilingual support and domain aware conversation design enabling more natural and human like interactions. Third, our global real time network infrastructure delivers subsecond latency and carrier grid reliability worldwide. We are already seeing strong early validation from real world deployments. In Q1, one customer implemented a serving and pulling agent that matched 10% conversion rate of human agents. This allowed them to scale data collection and reward distribution far more cost effectively without adding operational headcounts. Overall, enterprise feedback has been highly encouraging. Customers increasingly recognize that scalable conversational AI requires not only powerful models but also real time infrastructure's capability of delivering and seamless integration. We believe we are uniquely positioned at the intersection of these capabilities. Last month we also strengthened our position in the enterprise collaboration market with the launch of our Intelligent Meeting Engine product. Intelligent Meeting Engine offers end to end encryption, flexible deployment options including on premises and private cloud and full data isolation to help ensure that customer meeting content remains entirely within their controlled infrastructure. At the same time it increase AI powered capabilities such as real time transcription, translation, intelligent meeting summaries and automated follow up workflows that can connect with customers existing business system. This solution addresses growing enterprise demand around content. Sovereignty, sovereignty and intelligent workflow automation and has been well received in industries including finance, government and healthcare. Turning to ecosystem partnerships, we continue to integrate the latest AI models such as Google's Gemini Live and XAI squawk models into our conversational AI solutions. In particular, Google has featured Agora as a recommended partner for building real time conversational AI, validating our technology leadership in this space. In addition, we recently entered a strategic partnership with NetEase Enterprise Service Division NetEase Smart Enterprise today. Together we will provide integrated solutions spanning real time video content moderation and AI agents. This partnership combines NET is expertise in AI and content moderation with our leadership in real time engagement infrastructure. We believe this partnership is meaningful allocation of our technology from one of China's leading Internet companies while also expanding our go to market opportunities across education, customer service, digital entertainment and enterprise collaboration. Before I conclude, I want to thank the Agora and Shen Wang teams for their continued dedication and execution and thank our shareholders for their ongoing trust and support globally, Conversational AI is rapidly moving from proof of concept to large scale deployment. Since the official launch of our conversational AI engine product last year, usage has demonstrated ... Full story available on Benzinga.com
Agora Reports Q1 2026 Results: Full Earnings Call Transcript
