Agora, Inc.

Good day and thank you for standing by. Welcome to the Agora fourth quarter 2022 financial results. 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 will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to speaker today, Fiona Chen. Please go ahead.

Thank you, operator. Good morning and good evening, everyone. Thank you for joining us today for IGORA's fourth quarter 2022 and full fiscal year earnings conference call. Our earnings results, press release, SEC filings, and a replay of today's call can be found on our IR website at investor.igora.io. Joining me today are Tony Zhao, our 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 the 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 the performance of our business, and which we discuss in detail with our filing with SEC, including today's earnings press release and the risk factors and other information contained in the final post-practice 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 over to Tony. Hi Tony.

Hey, thanks Fiona. And welcome everyone to our earnings call. Our revenue for the fourth quarter remained flat at $40 million compared with the same quarter last year. During this quarter, 37,000 new applications were registered on our platform. And our total number of registered applications exceeded 548,000. At the end of 2022, our number of active customers was 3,066, adding close to 400 compared to one year ago. On product side, recently we launched a beta variant of our speech-to-text product for real-time engagement. Traditional speech-to-text products do not work well in RT use cases due to the challenge such as synchronization across distance and device performance issue. Working with industry-leading partners specialized in speech-to-text technology, we developed a cloud-native transcription product that delivers reliable performance in noisy environment when multiple individuals talk simultaneously and under poor network conditions. As a cloud-native product, No additional local processing is required and performance is consistent across a wide range of devices. We believe this product can enhance end-user experiences in many ways. For example, people with impaired hearing can now watch live streaming or beat in a live auction. Leveraging an auto translation module This product can easily overcome language barriers and empower people with different cultural backgrounds to mingle with each other naturally. In addition, speech-to-text has also laid the foundation for other complementary features, such as content moderation and transcript recording. This quarter, we also announced the general availability of two new first-party extensions 3D spatial audio, and AI-powered noise suppression, which will enable developers to create more immersive and engaging experiences for their end users. With the flexibility of Agora SDK 4.0's open and modular architecture, these extensions can be easily integrated into our core RTE products, such as voice calling, video calling, and interactive live streaming. During the public beta phase, these two extensions have been well received by developers. For example, Hello, a social and live streaming platform for language learning, found that the best way to learn a new language is by regularly speaking with native speakers. By leveraging Agora's AI noise suppression, Hello has removed unwanted background noises, ensuring users worldwide have a distraction-free learning experience regardless of their environment. About our new use cases. This quarter, we continue to see new use cases emerging and gaining adoption. For example, as we mentioned previously, live video shopping is expanding rapidly in U.S. market and has attracted some well-known brands who are investing in these capabilities. For example, an important American television network that traditionally specialized in home shopping began working with Agora last quarter to provide its vast audiences with live interactive shopping. Now that we have discussed our latest product and use cases, I would like to take a moment to share some of my thoughts when looking back at 2022 and looking ahead to 2023. 2022 was an extremely challenging year, which I think many of you would agree with. Our full year revenue was $161 million, a decrease of 4%, or $7 million compared with 2021. However, please bear in mind that during this period, our revenue from the K-child academic tutoring sector in China has gone all... Our revenue from K-child academic tutoring segment in China alone was down by $37 million. by $37 million from $40 million to $3 million. Excluding this segment, our revenue in 2022 increased 24%, mainly thanks to our global expansion, new use cases such as live video shopping, and new products such as broadcast streaming. This was no small feat, especially if we also consider the challenging macro environment such as stock market correction, inflation, and the tightening of venture capital in funding. As mentioned in our last earning call, considering the challenging operating environment, we reorganized our global R&D team and reduced our overall workforce in October to focus on our strategic priorities and improve efficiency. In the past few months, we further streamlined and refocused our developer experience and content marketing teams in the US and international markets. We also appoint Robin Liu as Chief Operating Officer China to lead our commercialization efforts in that market. I believe these steps will help our teams become more customer-centric and more focused on local markets. In addition, we recently completed the sale of ISMOB's Customer Engagement Cloud, or CEC, business. When we acquired ISMOB in early 2021, it had two business segments, the chat API business and the CEC business. The chat API business has been fully integrated into our platform. On the other hand, the CEC business is not a core market for us. The sale of the CEC business will help us focus our resources on core products and markets. Now, looking at 2023, I'm cautious about the macro environment, but continue to see new opportunities in the global RTE market. On the market side, inflation and tough financing environment will likely remain and the post-COVID reopening in more countries will reduce demand for our product for certain use cases. On the other hand, there are clear opportunities for us. For example, a large competitor recently shut down a key product and significantly reduced its investment in this market due to competitive pressure. We also start to see demand from certain previous and tapped verticals. Facing these challenges and opportunities, our strategy for 2023 can be simply summarized into the following. These are focused on customer value. enhance competitive advantage, and gain market share. First, we will strengthen our customer-centric value and leverage our latest innovation to enhance value creation for our customers. Also, acting as an innovation partner for our customers, we can create a flywheel effect, leveraging customer feedback to help refine our roadmap. Second, We will focus on delivering the world's best performing RTE product and services with unrivaled real-time video and voice experience for end users and best-in-class ease of use for developers. Supported by the above, we will continue to win over the competition and expand our market share globally. At the same time, we will continue to improve our operational efficiency and optimize our cost structure. Before concluding my prepared remarks, I want to thank all Agorians for their hard work and commitment during this extraordinary year. I will always cherish the memory of us facing obstacles shoulder to shoulder and celebrating our wins. big and small. Let's stay laser-focused on creating customer value, enhancing the competitive advantage of our core product, and gaining market share in 2023. Thank you all. With that, let me turn things over to Jingbo, who will reveal our financial results.