Agora, Inc.

Thank you all for standing by and welcome to the Agora Inc. Third 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 at that time, you'll need to press star 1 on your telephone. I'd now like to hand the conference over to your first speaker, Ms Fiona Chen. Thank you. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us for Agoura's third quarter 2021 earnings conference call. Our earnings results, press release, SEC filings, and a replay of today's call can be found on our I.O. website at investor.agoura.io. Joining me today are Tony Zhao, founder, chairman, and CEO, Jingbo Wang, our CFO. Reconciliations between our GAAP and the 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 actual results may differ materially. These forward-looking statements are subject to risk uncertainties, assumptions, and other factors that could affect our financial results and performance of our business, and which we will discuss in detail in our filings with SEC, including today's earnings press release and 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. Tony, please.

Thanks, Fiona. And welcome, everyone, to our earnings call. In the past two months, we hosted our RTE 2021 conference in both the US and China, which attracted thousands of developers, product managers, entrepreneurs, and investors worldwide. At the conference, we announced the Atlas of real-time engagement use cases. which covers over 20 industries and more than 200 use cases in entertainment, social, IoT, education, finance, healthcare, enterprise collaboration, and even smart cities. We also released important new products such as Fusion CDN live streaming, which I will talk about later. Now, about our Q3 performance. we delivered another quarter with outstanding results. I'm pleased to report that our revenues for the third quarter were $45 million, up 46% year over year. At the end of September, we had more than 372,000 registered apps on our platform. Our number of active customers reached more than 2,500, adding over 700 year over year. Next, I want to highlight our advancements on product and use cases in Q3. On the product side, we released two important new products this quarter. First, we recently unveiled Full Path Accelerator, or FPA, our global end-to-end network acceleration product. Unlike traditional network accelerators that mainly improve backbone transmission from one region to another, SPA takes the entire transmission path into consideration, including backbone and LASMA, and optimizes the speed and reliability of transmission in a holistic fashion. SPA is based on our proprietary software-defined real-time network and can accelerate any kind of data, not just video or audio, and for any application, whether it's gaming, e-commerce, collaboration, or a metaverse. With just a few lines of code, developers can integrate FPA into their application and let all their users enjoy a smooth and responsive experience, no matter where they are. Second, We announced our Fusion CVN live streaming product at the RTE 2021 conference. Together with our current interactive live streaming product, we can now deliver a complete solution for live streaming use cases from low latency streaming with our interactive live streaming API and standard latency streaming with our Fusion CVN product. It is important to note that our Fusion CVN is not mere repackaging of traditional CDN or content delivery network. Our Fusion CDN leverages our proprietary SDRTN network to enhance the resilience of uplink transmission and adaptively chooses the best CDN for downlink distribution, depending on end user's location. Therefore, achieving superior end-to-end performance compared to traditional CDN. It also works seamlessly with our existing products, reducing the complexity of integration for developers. Currently, both SPA and Fusion CDN live streaming products are available in China, and we are working very hard to bring both products to developers in US, European, and other markets in the coming quarters. In addition, we also launched our brand new extensions marketplace at RTE 2021 conference. Our extensions marketplace gives developer access to an ecosystem of partner extensions, which enhance real-time engagement, such as AI-based noise filter from both face filter face filters from Banuba, and voice changer from Voicemod. This marketplace is the first of its kind in the RTE category, allowing developers to instantly activate extension capabilities and accelerate time to market for their innovative applications. Moving on to new use cases. We are very happy to see that social deduction games are gaining popularity in more and more regions. Wildlife Studios is one of the largest mobile gaming companies in the world. They recently launched the Suspect game, using Agora to power the native voice chat among players. The voice chat provides players with a frictionless experience and saves them from having to use a third-party tool to talk to each other during a game, and helps to differentiate suspects from other social deduction games. We see this as one evidence of the convergence of social deduction games. We believe there will be more in other regions. Recently, we have seen an accelerating trend of real-time engagement in extended reality environments. creating the infrastructure of Metaverse. A good example is our partnership with Dreamline Maker, a leading virtual idol operator in China. We worked jointly to deliver a best-in-class solution for virtual idol concert. Performance of the virtual idol is driven by a human performer through motion capture. and Agora powers the transmission of motion data and audio data to the physical concert site and simultaneously streams the concert to audience online. Virtual IOs can engage with their audience in detailed 3D environments, which breaks the gap between the physical and virtual worlds, creating a beautiful fantasy world for users. We are also working closely with several Metaverse operators to build a fully interactive spatial audio solution. In the real world, we can easily distinguish sound coming from different directions, and such direction changes when we move our body when the speaker moves. If we were to build a true immersive Metaverse, its audio must take into account the locations and directions of all users, and the surrounding environment. And this is exactly what we are working on. Our solution constantly tracks users' movements in real time, synchronizes every user's location with others, and updates the spatial audio they hear accordingly. If we extend our horizon a little bit, people always talk about metaverse like the one we saw in Ready Player One. In my view, the industry needs to solve at least the following three problems, namely real-time media connectivity, virtual environment construction, and large-scale control signaling before we can have a Ready Player One-like experience. Agora has built industry-leading technology in all these three areas. For example, we have been raising the bar for real-time video and audio experiences. Our content moderation, virtual background, and social audio products, together with extensions from our partners, can significantly simplify virtual environment construction. Our full path accelerator and signaling products are designed exactly for enabling low latency control signals at scale. Our plan is to further enhance our capabilities in these areas and become an instrumental infrastructure provider for Metaverse. Next, I want to update everyone on our business in the US and the rest of the world market. US and the rest of the world has been a key strategic focus for Agora. In the past three years, we have invested significant resources into this market and have increased its revenue contribution from less than 10% to nearly 30%. However, I believe we are far from reaching our full potential in this market, given the rapidly increasing RTE penetration and our technology advantages. In the past few months, we have worked very hard to bring in additional talent and better align our strategy and priorities within the team. CRO and COO of our subsidiary in the US, will depart at the end of the year for personal reasons related to relocation. Reggie will transition his operational responsibilities to Stanley Wei, our chief strategy officer, who has a lot of entrepreneurship experience in both Silicon Valley and China. we will continue to hire additional highly qualified leaders to further strengthen our team in the US and the rest of the world market. Lastly, I would like to take the opportunity to thank all of our customers and developers around the world for trusting Agora to power your real-time engagement applications. I also want to thank all the Agorans for their hard work and dedication to our customers' success. I'm extremely excited about the opportunity ahead of us and look forward to co-innovating with our customers and developers together. Now, let me turn things over to Jingbo, who will reveal our financial results.