Agora, Inc.

Good day, and thank you for standing by, and welcome to the Agora Incorporated second quarter 2021 financial results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you need to press star one on your telephone. Please be advised that today's conference is being recorded, and I'd like to hand the conference over to your first speaker today, Ms. Fiona Chan. Thank you. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us for Agora's second quarter 2021 earnings conference call. Our earnings results press release SEC filing and a replay of today's call can be found on our IO website at investor.agora.io. Joining me today are Tony Zhao, founder, chairman, and CEO, Jingbo Wang, CFO. Reconciliations between our GAAP and non-GAAP results can be found in our earnings press release During this call, we will make forward-looking statements about our future financial performance and other future events and trends. These statements are only predictions that are based on what we believe today, and the actual results may differ materially. These forward-looking statements are subject to risks, uncertainties, assumptions, and other factors that could affect our financial results and performance of our business and which we discussed in detailing our filings with the SEC, including today's earnings press release, and the risk factors and other information contained in the final prospectus relating to our initial public offering. Agora remains no obligation to update any forward-looking statements we may make on today's call. With that, let me turn it over to Tony.

Thanks, Stefano. And welcome, everyone, to our earnings call. Time flies. Agora has been a public company for one year now. Before walking through our Q2 performance and highlights, please let me spend a few moments looking back on Agora's accomplishments over the last year. We have reached the milestone of powering 50 billion minutes of video and audio engagements each month. And we have expanded our product portfolio to include interactive whiteboard instant messaging, flexible classroom, and many others. More importantly, together with developers on our platform, we're changing the way people work, study, and how they play and live their lives. Let's start with work. According to a study from Gartner, 82% of the business leaders plan to let employees continue to work remotely at least some of the time, while 47 plan to allow employees to do so permanently. This means modern enterprise must embrace technologies that enable employees to stay productive from anywhere, anytime. In the past year, virtual office, collaboration tools, and virtual events are among the most rapidly growing use cases on our platform. How we play has also evolved. We're seeing a strong convergence of video games and live streaming, where the virtual world and real world are combined to create even more immersive experiences. Movies and TV shows are no longer restricted to the living room. It's just as likely to watch a program with your friends across the country as with your family in the living room. Developers are using Agora from the most casual applications to the most highly regulated and mission-critical use cases. Today, our technology is used by doctors and licensed therapeuticists to provide patients instant access to professional healthcare services. With Agora's HIPAA compliant and low-latency network, Patients and doctors can talk about any sensitive topics anywhere, anytime. We are extremely proud that our customers continue to put their trust and confidence in Agora. Now let's shift to our Q2 performance. I'm pleased to report that our revenue for the second quarter was $42 million. up 25% year-over-year. At the end of June, we had more than 330,000 registered apps on our platform. Our number of active customers reached 2,400, adding 65% year-over-year. Let's take a moment now to discuss the recent regulations in China that will impact K-12 academic tutoring service. This new policy requires such services in China to be non-profit and not be provided on vacants or public holidays, among other things. We anticipate the new regulation will have a negative impact on our revenue from the China K-12 tutoring sector in the near term. It does not, however, change our long-term vision or business fundamentals. K-12 academic tutoring is just one of the many use cases of our technology. In fact, online education is here to stay and will grow in the long term. Our commitment to the global education industry remains unchanged. Agora is dedicated to continue to provide the technology that enables online learning and make quality education more accessible. To manage the short-term implication, we will be making some adjustments. In China, we will shift our resource previously focused on K-12 academic tutoring towards the public school education system and non-traditional academics such as music, art, computer programming, and adult education. We will also continue to strengthen our go-to-market efforts in the US, European, and Asia Pacific, where we are seeing tremendous growth momentum and more diversity in demand. Next, I want to highlight our advancements on product, technology, and use cases in Q2. In this quarter, we launched Agora App Builder, which allows developers to create their own video chat and streaming apps with customizable functionalities and UI without any coding required. Since launch, we have seen very strong adoption from both developers and the creators with no technical background. Their positive feedback motivates us to make continued efforts in the low-code and no-code direction. to make it even easier for creators to connect with audience, engage with customers, and drive more business outcomes. On a technology front, we recently announced Agora Sur, our proprietary audio codec using artificial intelligence to optimize quality of experience under poor network conditions. Compared with traditional audio codecs, Agora Silver achieves superior quality at extremely low bit rates. Even compared with leading AI-based audio codecs, such as Google Lyra, Agora Silver enjoys lower computational complexity and more robust noise suppression. With Agora Silver, we will be able to offer developers and end users an immersive experience under challenging network conditions. It is the perfect example of our commitment to cutting-edge innovation at Agora. We also made solid progress on enabling innovative new use cases using our technology. We partnered with Migu, a leading music and digital content platform, to develop a one-stop solution for online karaoke. The solution includes both the technology enabling people to sing songs together remotely and the usage-based copyright solution for the soundtrack. We believe social singing will become a key feature in many social apps, just like live streaming did in the past few years. In gaming, we teamed up with HP to power real-time engagement for HP Omen gaming PCs. Our voice, video, messaging, and interactive live streaming capabilities are pre-installed on all OMEN PCs, which allow gamers to engage during gameplay and turns game into watch parties, enabling players and viewers to share the excitement. We also work with a leading e-commerce platform in Southeast Asia. to introduce interactive shopping to their vast user base. In the app, the merchandise is demonstrated by a host through live streaming. The audience can place orders and interact with the host through real-time video or voice chat. Sales conversions have increased significantly as a result of the interactive experience. Now, I want to talk about our developer community. Just about this time last year, we announced our new global startup program designed to support all early-stage startups, no matter where they are and who they are. Now we have over 200 startups from six continents and 24 countries participating in our program. And we have seen so many innovative ideas that will profoundly change our lifestyle. As our developer base continues to grow rapidly globally, we have been working on our own internal diversity and inclusion programs. I'm proud to see that our employees now support 24 different languages. I also want to take this opportunity to invite you to join me at RTE 2021, the annual real-time engagement industry event hosted by Agora, which will showcase exciting announcements, feature many amazing industry leaders and unique RTE innovations that are changing our lifestyles all over the world. The US time zone live event will be on September 1st and 2nd, and the China time zone event will be on October 22nd and 23rd, followed by October 24th, as known as the Programmer Festival. I look forward to seeing you there. Lastly, I would like to thank our developers, customers, and partners for their trust in us. I also want to say thank you to all Agorans for their hard work and dedication to our customers' success. We will continue to invest in enabling meaningful human connections and creating more real-time engagement possibilities. Now let me turn things over to Jingbo, who will reveal our financial results.