Agora, Inc.

Good day and thank you for standing by. Welcome to the Agora Inc. Third Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. And now, I'd like to hand the conference over to Ms. Fiona Chen, Head of Investor Relations. Thank you. Please go ahead, ma'am.

Thank you, operator. Good morning, everyone, and thank you for joining us for Agora's third quarter 2022 earnings conference call. Our earnings results, press release, SEC filings, and a replay of today's call can be found on our website at investor.agora.io. Joining me today are Tony Zhao, founder, chairman, and the CEO, Jim Bowen, our 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, uncertainty, assumptions and other factors that could affect our financial results and the performance of our business and which we discuss in detail in 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 makes 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, Fiona, and welcome everyone to our earnings call. Our revenue for the quarter was $41 million, a decrease of 9% year-over-year, and flat quarter-over-quarter. During this quarter, 36,000 new applications registered on our platform, and our total number of registered applications exceeded half a million. At the end of September, our number of active customers was close to 3,000, adding more than 400 compared to one year ago. In the past few quarters, we faced an extremely challenging operating environment. Our revenue was hit by restrictive regulations in certain markets, which was the main reason behind year-over-year revenue decrease. More recently, inflationary pressure, interest rate hikes, and continued turbulence in global capital market have impacted some of our customers' business expansion plans and their ability to raise funding, which in turn limited their usage of our products. Lastly, the appreciation of the US dollar also had a negative impact on our non-US dollar denominated revenues. Despite those macro changes, Despite those macro challenges, we continue to see strong demand for our products for new use cases, such as live video shopping, which didn't really exist in the US market 18 months ago. As we have seen again and again in our history, real-time engagement technology can transform any online activity and make it more immersive and engaging. This is why we remain optimistic about the long-term potential of our technology and products. However, the market environment will likely remain volatile for some time. To cope with such uncertainties, we must remain nimble, laser-focused, and entrepreneurial. In recent months, We have been working hard to improve our operational efficiency and focus our efforts on priorities including enhancing the quality of experience and ease of use of our core products, strengthening our go-to-market efforts, and winning benchmark customers. We have also made a few management changes to streamline our operations and reduce redundancies. including appointing Mr. Shawn Zhong, our chief scientist, since 2018 to take on an expanded role as our chief technology officer to oversee our global R&D organization. Last month, we also made the difficult decision to restructure and reduce our global workforce. Here, I would like to thank again those impacted friends and colleagues for their contribution along our journey. Qingguo will discuss financial impact of the reduction in his remarks. I believe those moves will help us navigate the uncertainties in the near term. And with the right focus and execution, I think we are well positioned to gain market share and emerge from this challenging period stronger than ever. Moving on to product updates. I'm thrilled to announce that in this quarter, we officially launched our next-generation real-time engagement SDK, Warren 4.0, which has major upgrades in three key areas, namely more flexible, simpler to use, and more powerful. First, on flexibility, our SDK 4.0 has an open and modular architecture by design. It breaks down the entire end-to-end transmission path into dozens of loosely coupled components with standardized interface for each module. Developers now enjoy much more granular control over the media pipe to create the optimal experience for their specific use case. Next on simplicity. With just a few lines of code, developers can easily integrate a wide range of first-party and third-party extensions with rich and engaging features such as audio and video effects, virtual backgrounds, transcription, content modulation, spatial audio, AI noise suppression, and more. Being flexible and easy to use does not mean any compromise on performance. For use cases that require high video quality, SDK 4.0 now supports up to 4K video at 60 frames per second. SDK 4.0 also supports multiple media sources from one single user, which is perfect for use cases such as online proctoring or professional music live streaming. For those that require highly synchronized transmission at ultra-low latency, such as online karaoke, we can combine and deliver all sound tracks to all participants precisely at the same time. With our next generation SDK, developers will be able to create innovative and immersive applications at a faster speed than ever before. Moving on to new use cases. The first one is live video shopping, which is growing very fast and we already have several benchmark customers. For example, a leading collectibles auction marketplace leverages our platform to hold live auctions through real-time video. Its CEO describes the marketplace as a course between the streaming platform Twitch and the auction site eBay. It provides real-time auctions where customers can engage with the sellers and each other in a fast-paced video environment where auctions can be completed in as fast as 30 seconds. The second one is professional social networking. A global leading professional social network is leveraging our technology to power its live audio chatroom. These rooms provide creators and influencers the ability to have live, interactive conversations with people all over the world, and users can join speakers on stage and make broader networking connections post-event. Our quality in audio technology and global coverage throughout the world ensures them a premium quality, perfectly matching their position as a professional social network. Moving on to our RTE conference. In October and November, we hosted our iconic global RTE conferences for the eighth consecutive year, where developers, customers, and thought leaders from over 100 countries joined together to discuss various trends and explore the future of real-time engagement. Nearly 500 people attended the in-person program in San Francisco, close to 10,000 more registered for online sessions, and the total number of session views exceeded 500,000. This year also marks the first time that we hosted a dedicated RTE APEC conference. which has been well received and lively attended by local participants. Here, I would like to highlight some of the observations and key messages from the conference. First, on end-user experience. Evidence continues to build across use cases and the geographics that our customers' business success is profoundly dependent on the end-user experience that they can deliver. For example, a small increase in freeze rate in an audio chat room will reduce users' session length and retention rates. Adding AI noise suppression for in-game team audio chat will significantly increase session length. Therefore, it's paramount for developers to partner with the most capable and reliable RT provider in order to have the most advanced building blocks in creating real-time engagement experiences. Second, on the trend of high-definition video, we expect to see the mainstream video resolution in real-time engagement steadily increase from 480p to 720p in response to end users' growing demand for better quality based on the usage of our platform. Other things being equal, changing video resolution from 480p to 720p leads to an approximately 15% increase in overall session length. In case local network conditions cannot accommodate the required bandwidth, our super resolution algorithm can take care of this issue by enhancing video resolution through the same bandwidth with only 3% increase in CPU and memory usage. This upgrade in video quality and experience will bring more business opportunities for our customers and for us, as we have already seen a huge leap in 720p sessions since the beginning of this year. Lastly, on the trend of adding RTE capabilities to IoT device. We are seeing that devices with RTE features are generally sold at higher premium compared with plain vanilla model without such capabilities. Examples include packed feeders with cameras for real-time video treadmills and rolling machines with screens for live streaming classes, and study labs with AR projection capabilities, enabling students to collaborate with their classmates. This type of human touch is only possible thanks to RTE technologies, and we believe these experiences will be one of the fundamental drivers of IoT's future growth. Before concluding my prepared remarks for this quarter, I want to thank all algorithms for your hard work and commitment during this challenging period. The fundamentals and long-term potential of real-time engagement technology remain the same despite the turbulent market environment. We are neither over-optimistic or overly pessimistic about the future of our industry, and we are still in the early stage of building a great company. As someone once said, today is difficult, tomorrow is even harder, the day after that will be great, although most people will be dead before that. I am confident in our strategy for growth. and in your ability to help Agora succeed. What we need is to keep executing with determination and focus. Thank you all. With that, let me turn things over to Jingbo, who will review our financial results.