WeRide Unveils Next-Generation Robotaxi Platform and Expands Global Presence

Next-Generation Robotaxi Platform Unveiled, Robotaxi Coming to Uber App - WeRide (NASDAQ:WRD)

NEW YORK, Nov. 29, 2024 (GLOBE NEWSWIRE) -- WeRide Inc. ("WeRide" or the "Company") WRD, the world's first publicly traded Robotaxi company and a global leader in the autonomous driving industry, today announced its unaudited results for the third quarter and nine months ended September 30, 2024. Recent Highlights After the successful listing on Nasdaq, the Company continued to make progress towards its long-term strategic objectives in the development of autonomous driving technologies and applications both directly and in partnership with others. WeRide Reinforces Technology Leadership and First-mover Position in the World In October 2024, WeRide introduced GXR, a first-of-its-kind, next-generation Robotaxi platform, leveraging over 1,800 days of Robotaxi public operation experience. GXR integrates WeRide's proprietary L4 autonomous driving systems, the advanced Sensor Suite 5.6, and the HPC 2.0 computing platform, built on Farizon SuperVan's steer-by-wire architecture.The new HPC 2.0 high-performance computing platform delivers over 1,300 TOPS of AI computing power, efficiently meeting the vehicle's computing demands.The Sensor Suite 5.6 is designed with an aerodynamic, compact form and includes over 20 sensors, ensuring 360° blind-spot-free perception and 200-meter front detection, even in challenging conditions such as high-speed maneuvers and low-light environment. WeRide Expands Global Presence with Key Partnerships and Milestones Strategic Partnership and Robotaxi Deployment in the UAE with Uber: In September 2024, WeRide and Uber Technologies, Inc. ("Uber") announced a strategic partnership to integrate WeRide's Robotaxis onto the Uber platform. In October 2024, Uber invested in WeRide's Initial Public Offering (IPO), underscoring the strength of their partnership. By December 2024, WeRide will begin deploying a fleet of Robotaxis powered by WeRide on the Uber app in the United Arab Emirates.Strategic MoU with Beti for Robobus Services in France: In November 2024, WeRide signed a Memorandum of Understanding (MoU) with Beti, a leading automated mobility operator in France. The partnership aims to launch Robobus services in France as early as January 2025, marking a significant step in expanding WeRide's autonomous mobility solutions in Europe.Robosweeper Expansion in Singapore: In November 2024, WeRide further advanced its operations in Singapore with the successful acquisition of the Milestone Testing and Assessment License for its Robosweeper S6 and S1 from the Singapore Land Transport Authority (LTA). WeRide is expected to commercialize Robosweeper operations in collaboration with Chye Thiam Maintenance (CTM), a prominent sanitation company in Singapore.Launch of Singapore's First L4 Autonomous Robobus Service: In July 2024, WeRide launched Singapore's first publicly accessible Level 4 (L4) autonomous Robobus service. This pioneering initiative features an integrated manual-autonomous shuttle system connecting luxury hotels and resorts, positioning WeRide as a trailblazer in premium, autonomous transportation solutions. New Commercialization Milestones Achieved in China Launch of the latest end-to-end ADAS solutions: In November 2024, EXEED, Chery Auto's high-end brand, unveiled the Falcon intelligent driving system, empowered by WeRide and Bosch jointly. WeRide provides the comprehensive end-to-end solution that enables the vehicles to navigate complex urban environments, ensuring a seamless driving experience without relying on HD maps.Obtaining fare-charging Robobus approval: In September 2024, WeRide secured approval for a fare-charging Robobus service in Hengqin, Guangdong Province, after receiving the approval for the first-ever fare-charging Robobus service in Guangzhou in December 2023.First L4 autonomous sanitation project in Shantou: In August 2024, WeRide deployed the S1 Robosweeper in Shantou, China, marking the first L4 autonomous sanitation project in eastern Guangdong Province.First L4 autonomous sanitation project in Dongguan: In July 2024, WeRide launched the first commercial unmanned sanitation project in Dongguan, Guangdong Province, covering an area exceeding 270 standard football fields daily. Management Commentary Tony Han, WeRide's Founder, Chairman, and Chief Executive Officer, commented, "WeRide continues to advance the global adoption of our autonomous driving products. By leveraging our cutting-edge technology, we are delivering innovative products that meet the evolving needs of the market. The launch of our next-generation GXR Robotaxi platform, backed by over 1,800 days of operational experience, reflects our commitment to upholding the highest safety standards, ensuring customer satisfaction, and prioritizing commercial viability. Our commercial expansion into seven countries and our strategic partnership with Uber demonstrate the global scalability of our technology. We are dedicated to stay at the forefront of technological advancement in making autonomous driving accessible worldwide." Jennifer Li, WeRide's Chief Financial Officer, added, "Our successful Nasdaq IPO reinforced our vision and our progress. With cutting-edge technology, a strong balance sheet, and a talented team, we are committed to maintaining financial discipline while driving innovation in the industry. There are fluctuations in our gross profit which is largely driven by the mix-shift in our revenues from quarter to quarter. However, we are confident to establish greater customer base through further commercialization of our technologically leading product and services hence, stabilizing revenue and cost of goods structure. Additionally, we are committed to optimizing operational efficiency through economies of scale while strategically investing in R&D and market expansion to deliver long-term value to our shareholders." Third Quarter 2024 Financial Results Revenues Total revenues decreased to RMB70.0 million (US$10.0 million) from RMB74.2 million in the same period of 2023. Product revenue increased to RMB15.0 million (US$2.1 million) from RMB0.1 million in the same period of 2023. The increase was primarily attributable to an increase in the sales of Robosweepers in the third quarter of 2024.Service revenue was RMB55.0 million (US$7.9 million) compared to that of RMB74.1 million in the same period of 2023. Service revenue from ADAS research and development services was lower as customized R&D services for certain client were completed during the quarter. Renewal contracts are expected to take effect in 2025. Cost of Revenue Cost of revenue increased to RMB65.5 million (US$9.3 million) from RMB51.3 million in the same period of 2023. Cost of product sold increased to RMB11.8 million (US$1.7 million) from RMB4.7 million in the same period of 2023 which were consistent with revenue growth.Cost of services increased to RMB53.7 million (US$7.6 million) from RMB46.6 million in the same period of 2023. The increase was primarily attributable to an increase in cloud service fee and personnel expense associated with ADAS research and development services for certain client. Higher costs were incurred during the quarter with regards to certain client contract, including cloud computing fees and labor costs, in order to achieve the final contract milestone. Gross Margin Gross profit comprised of gross profit for products of RMB3.2 million (US$0.5 million), representing a gross margin of 21.3%, and gross profit for services of RMB1.4 million (US$0.2 million), representing a gross margin of 2.4%. Operating Expenses Operating expenses increased to RMB895.7 million (US$127.6 million) from RMB765.8 million in the same period of 2023. The increase in operating expenses was mainly due to a 32% increase in personnel-related expenses compared to the same period in 2023. Research and development (R&D) expenses were RMB254.2 million (US$36.2 million), compared to RMB440.4 million in the same period of 2023. Excluding share-based compensation, R&D expenses were RMB206.3 million, compared to RMB160.4 million in the same period of 2023, representing an increase of 28.6%, as the Company continued to attract top R&D talent and focus on the testing, trial, and commercialization of its autonomous driving technology and to invest more resources to improve its technological capabilities. Administrative expenses were RMB626.0 million (US$89.2 million), compared to RMB308.6 million in the same period of 2023. Excluding share-based compensation, administrative expenses were RMB60.0 million, compared to RMB40.1 million in the same period of 2023, representing an increase of 49.6%, as the Company continued to execute its growth strategy, strengthened its organizational infrastructure, and increased headcounts across relevant functions and higher professional service fee as it transitions to a publicly listed company.Selling expenses were RMB15.5 million (US$2.2 million), compared to RMB16.8 million in the same period of 2023. Excluding share-based compensation, selling expenses were RMB13.8 million, compared to RMB6.2 million in the same period of 2023, representing an increase of 122.6%, as the Company continued to expand its sales network, build brand awareness and inform market participants on the benefits of its autonomous driving products and services. Net Loss Net loss was RMB1,042.7 million (US$148.6 million), compared to RMB846.8 million in the same period of 2023.Non-IFRS adjusted net loss1 was RMB240.3 million (US$34.2 million), compared to RMB154.5 million in the same period of 2023. Basic and Diluted Net Loss Per ADS Basic and diluted net loss per ordinary share were RMB4.93 (US$0.70), compared to RMB7.15 in the same period of 2023.Basic and diluted net loss per ADS were RMB14.79 (US$2.10), compared to RMB21.45 in the same period of 2023. Balance Sheet As of September 30, 2024, the Company had RMB2,705.9 million (US$385.6 million) in cash and cash equivalents and time deposits, RMB13.8 million (US$2.0 million) in restricted cash and RMB850.2 million (US$121.1 million) in financial assets measured at fair value through profit or loss.As of September 30, 2024, the Company had long-term bank borrowings of RMB50 million (US$7.1 million). Business Outlook Macroeconomic economic uncertainties are expected to remain in the near term. The Company expects its total revenues to be between RMB350 million and RMB380 million for the full fiscal year of 2024. This forecast reflects management's current and preliminary views on the market and operational conditions, which are subject to change. About WeRide WeRide is a global leader and a first mover in the autonomous driving industry. Empowered by the smart, versatile, cost-effective and highly adaptable WeRide One platform, WeRide provides autonomous driving products and services from L2 to L4, addressing a vast majority of transportation needs across a wide range of use cases on the open road, including in the mobility, logistics, and sanitation industries. In September 2023, WeRide earned a prestigious position among the top ten on Fortune Magazine's "2023 Change the World" list. For more information, please visit https://www.weride.ai. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024. Use of Non-IFRS Financial Measures In evaluating its business, the Company considers and uses the non-IFRS financial measure of adjusted net loss as a supplemental measure to review and assess operating performance. The Company believes that adjusted net loss provides useful information to investors and others in understanding and evaluating the Company's consolidated results of operations in the same manner as it helps the Company's management. The Company defines adjusted net loss as net loss for the year/period excluding share-based compensation expenses, fair value changes of financial liabilities measured at FVTPL, fair value changes of financial assets at FVTPL and changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights. The Company presents the non-IFRS financial measure because it is used by its management to evaluate its operating performance and formulate business plans. Adjusted net loss enables the Company's management to assess the Company's operating results without considering the impact of the aforementioned non-cash adjustment items that it does not consider to be indicative of its core operations. Accordingly, the Company believes that the use of this non-IFRS financial measure provides useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. This non-IFRS financial measure is not defined under IFRS and is not presented in accordance with IFRS. The non-IFRS financial measure has limitations as an analytical tool. One of the key limitations of using the adjusted net loss is that it does not reflect all items of expenses that affect the Company's operations. Further, this non-IFRS measure may differ from the non-IFRS information used by other companies, including peer companies, and therefore its comparability may be limited. The non-IFRS financial measure should not be considered in isolation or construed as an alternative to loss for the year/period or any other measure of performance information prepared and presented in accordance with IFRS or as an indicator of the Company's operating performance. Investors are encouraged to review the Company's historical non-IFRS financial measure in light of the most directly comparable IFRS measure, as shown below. The non-IFRS financial measure presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing the Company's data comparatively. It is encouraged that you review the Company's financial information in its entirety and not rely on a single financial measure. This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about WeRide's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in WeRide's filings with the SEC. All information provided in this press release is as of the date of this press release, and WeRide does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Contacts Investor inquiries: ir@weride.ai Press inquiries: press@weride.ai WeRide Inc.Unaudited Condensed Consolidated Statements of Financial Position As of September 30, September 30, December 31, 2024 2024 2023 RMB'000 USD'000 RMB'000ASSETS Non-current assets Property and equipment109,387 15,588 98,574 Right-of-use assets68,583 9,773 51,658 Intangible assets21,250 3,028 24,594 Goodwill44,758 6,378 44,758 Restricted cash - non-current9,002 1,283 1,575 Deferred tax assets1,246 178 1,994 Financial assets measured at fair value through profit or loss ("FVPL") - non-current96,728 13,784 - Other non-current assets18,392 2,620 21,082 Total non-current assets369,346 52,632 244,235 Current assets Inventories277,013 39,473 218,220 Contract assets20,739 2,955 82,826 Trade receivables295,049 42,044 266,933 Prepayments, deposits and other receivables170,955 24,361 192,530 Amounts due from related parties45,306 6,456 26,923 Financial assets measured at FVTPL - current753,444 107,365 317,042 Time deposits1,642,460 234,049 2,550,279 Cash and cash equivalents1,063,488 151,546 1,661,152 Restricted cash - current4,748 677 10,194 Subscription receivables- - 43,924 Total current assets4,273,202 608,926 5,370,023 Total assets4,642,548 661,558 5,614,258 DEFICIT IN EQUITY Total deficit(4,382,426) (624,491) (3,051,918) WeRide Inc.Unaudited Condensed Consolidated Statements of Financial Position As of September 30, September 30, December 31, 2024 2024 2023 RMB'000 USD'000 RMB'000LIABILITIES Non-current liabilities Lease liabilities - non-current33,577 4,785 22,309Put option liabilities- - 40,449Long-term bank loan50,000 7,125 -Deferred tax liabilities4,735 675 5,483Other non-current liabilities4,677 666 6,522Total non-current liabilities92,989 13,251 74,763 Current liabilities Trade payables12,575 1,792 16,962Preferred shares and other financial instruments subject to redemption and other preferential rights (Note (1))8,485,391 1,209,159 8,181,722Other payables, deposits received and accrued expenses304,953 43,455 271,306Contract liabilities16,132 2,299 12,498Lease liabilities - current28,608 4,077 31,098Amounts due to related parties41,550 5,921 77,827Put option liabilities40,934 5,833 -Income taxes payable1,842 262 -Total current liabilities8,931,985 1,272,798 8,591,413Total liabilities9,024,974 1,286,049 8,666,176 Total deficit and liabilities4,642,548 661,558 5,614,258 Note (1) The Company has adopted Amendments to IAS 1, Classification of liabilities as current or non-current, on January 1, 2024. The amendments apply retrospectively for annual reporting periods beginning on or after 1 January 2024. As such, as of December 31, 2023 and September 30, 2024, all the preferred shares and other financial instruments subject to redemption and other preferential rights were classified as current liabilities as the preferred shares and other financial instruments subject to redemption and other preferential rights may be converted into ordinary shares at the option of the holders at any time and the conversion feature does not meet the definition of an equity instrument. WeRide Inc.Unaudited Condensed Consolidated Statements of Profit or Loss Nine Months Ended September 30, Three Months Ended September 30, 2024 2023 2024 2023 RMB'000 USD'000 RMB'000 RMB'000 USD'000 RMB'000 Revenue220,312 31,394 257,076 70,014 9,977 74,207 Cost of revenue(a)(160,959) (22,936) (150,227) (65,450) (9,327) (51,333)Gross profit59,353 8,458 106,849 4,564 650 22,874 Research and development expenses(a)(771,370) (109,919) (816,493) (254,160) (36,218) (440,372)Selling expenses(a)(38,317) (5,460) (31,418) (15,533) (2,213) (16,799)Administrative expenses(a)(834,278) (118,884) (525,652) (625,985) (89,202) (308,551)Other income/(loss)8,715 1,242 13,289 776 111 (303)Impairment loss on receivables and contract assets(22,036) (3,140) (29,308) (8,612) (1,227) (1,312) Operating loss(1,597,933) (227,703) (1,282,733) (898,950) (128,099) (744,463) Net foreign exchange gain/(loss)5,670 808 4,276 1,011 144 (1,023)Interest income131,966 18,805 89,975 42,672 6,081 30,542 Fair value changes of financial assets measured at FVTPL(34,564) (4,925) 37,563 (39,067) (5,567) 11,699 Other finance costs(2,140) (305) (2,690) (784) (112) (906)Fair value changes of financial liabilities measured at FVTPL- - (4,549) - - - Changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights(424,175) (60,444) (408,841) (145,949) (20,798) (142,321) Loss before taxation(1,921,176) (273,764) (1,566,999) (1,041,067) (148,351) (846,472) Income tax(3,191) (455) (2,852) (1,600) (228) (287) Loss for the period(1,924,367) (274,219) (1,569,851) (1,042,667) (148,579) (846,759)Deemed distribution to a preferred shareholder- - (32,767) - - - Loss attributable to ordinary shareholders of the Company(1,924,367) (274,219) (1,602,618) (1,042,667) (148,579) (846,759)Loss per ordinary share Basic and diluted loss per ordinary share(b)(12.74) (1.82) (13.67) (4.93) (0.70) (7.15)Loss per ADS Basic and diluted loss per ADS(b)(38.22) (5.46) (41.01) (14.79) (2.10) (21.45) Notes: (a) Includes share-based compensation expenses as follows: Nine Months Ended September 30, Three Months Ended September 30, 2024 2023 2024 2023 RMB'000 USD'000 RMB'000 RMB'000 USD'000 RMB'000 Cost of revenue(4,826) (688) (8,547) (1,806) (257) (2,600)Research and development expenses(198,199) (28,243) (379,436) (47,832) (6,816) (279,973)Administrative expenses(699,274) (99,645) (406,552) (565,944) (80,647) (268,461)Selling expenses(6,930) (988) (13,549) (1,747) (249) (10,617)Total share-based compensation expenses(909,229) (129,564) (808,084) (617,329) (87,969) (561,651) (b) In July 2024, the Board of Directors and shareholders of the Company approved the issuance of a total of 12,806,568 ordinary shares to holders of Series D and Series D+ preferred shares at par value of USD0.00001, for an aggregate consideration of USD128.1, which were issued in August 2024. The Company was entitled an option to repurchase these ordinary shares at USD128.1 if an initial public offering ("IPO") does not consummate on or before March 31, 2025. Because these ordinary shares were contingently returnable, they were not treated as "outstanding" for EPS purposes and excluded from the calculation of basic EPS prior to the consummation of the IPO. Upon the consummation of the IPO, the Company did retrospective adjustments for basic and diluted EPS of all periods presented since those shares are no longer subject to recall. WeRide Inc.Reconciliation of IFRS and Non-IFRS results Nine Months Ended September 30, Three Months Ended September 30, 2024 2023 2024 2023 RMB'000 USD'000 RMB'000 RMB'000 USD'000 RMB'000 Loss for the period(1,924,367) (274,219) (1,569,851) (1,042,667) (148,579) (846,759)Add: Share-based compensation expenses909,229 129,564 808,084 617,329 87,969 561,651 Fair value changes of financial assets at FVTPL34,564 4,925 (37,563) 39,067 5,567 (11,699)Fair value changes of financial liabilities measured at FVTPL- - 4,549 - - - Changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights424,175 60,444 408,841 145,949 20,798 142,321 Adjusted net loss(556,399) (79,286) (385,940) (240,322) (34,245) (154,486) ____________________ 1 Adjusted net loss is defined as net loss for the year/period excluding share-based compensation expenses, fair value changes of financial liabilities measured at FVTPL, fair value changes of financial assets at FVTPL and changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights. 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YXT.com Reports Unaudited Financial Results for the First Nine Months of 2024 - Yxt.Com Group Holding (NASDAQ:YXT)

SUZHOU, China, Nov. 27, 2024 (GLOBE NEWSWIRE) -- YXT.com Group Holding Limited YXT ("YXT.com" or the "Company"), a leader and disruptor of the digital corporate learning industry in China, today announced its unaudited financial results for the first nine months of 2024 that ended September 30, 2024. First Nine Months 2024 Operating and Financial Highlights Total revenues were RMB241.7 million (US$34.4 million), compared with RMB328.8 million in the same period of last year.Gross Margin was 60.4% in the nine months ended September 30, 2024, compared with 59.3% in the same period of last year.Net loss was RMB14.9 million (US$2.1 million), compared with RMB245.3 million in the same period of last year.Number of subscription customers decreased to 2,428 as of September 30, 2024, from 3,039 as of September 30, 2023. After adjusting for the deconsolidation of CEIBS Publishing Group Limited (the "CEIBS PG") (571 customers), the net change of 40 customers reflects the Company's strategic shift toward large enterprise accounts with consistent demand for corporate learning solutions. This realignment resulted in a planned reduction of small and medium-sized customers from our portfolio.Net revenue retention rates of subscription customers decreased to 101.0% from 104.8% in the same period of last year. The change was due to the Company's strategic shift toward large enterprise accounts with consistent demand for corporate learning solutions. This realignment resulted in a planned reduction of small and medium-sized customers from our portfolio. Mr. Xiaoyan Lu, Director, Founder and Chairman of the Board of YXT.com, commented, "We are pleased to report our first financial results as a public company, covering the nine months ended September 30, 2024, following our successful IPO on the Nasdaq in August. While the period presented macro challenges that impacted enterprise training spending, we remained focused on executing our strategic priorities. We continued to deepen our relationships with large enterprise clients, as evidenced by our growing penetration among Fortune 500 companies. Our products' new AI features have been well-received by key customers, enabling us to maintain healthy retention rates despite the challenging environment. Looking ahead, we remain cautiously optimistic about our long-term growth prospects, supported by the fundamental need for digital learning solutions, our strengthening position in the large enterprise segment, and our continuous product innovation and enhancement." Mr. Pun Leung Liu, Chief Financial Officer of YXT.com, added, "Our financial results for the first nine months of 2024 demonstrate the effectiveness of our operational optimization initiatives. Through strategic cost management and AI-enabled operational improvements across multiple functions, we significantly narrowed our net loss to RMB14.9 million from RMB245.3 million in the same period last year. We remain committed to disciplined cost control while continuing to invest in strategic areas that drive long-term growth, particularly our technology capabilities and enterprise-focused solutions." Financial Results for the First Nine Months of 2024 Revenues Revenues were RMB241.7 million (US$34.4 million), compared with RMB328.8 million in the same period of last year. Revenues from corporate learning solutions were RMB240.3 million (US$34.2 million), compared with RMB318.6 million in the same period of last year. Revenues from subscription based corporate learning solutions were RMB221.7 million (US$31.6 million), compared with RMB271.1 million in the same period of last year. The change was primarily due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB46.1 million; and (ii) a net impact of RMB3.3 million from operational adjustments, driven by our strategic suspension of certain ancillary online teaching tools, partially offset by growth in corporate learning platform services.Revenues from non-subscription based corporate learning solutions were RMB18.6 million (US$2.7 million), compared with RMB47.5 million in the same period of last year. The change was primarily due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB20.9 million; and (ii) reduced offline activities reflecting our strategic shift towards subscription-based corporate learning solutions. Revenues from others were RMB1.4 million (US$0.2 million), compared with RMB10.2 million in the same period of last year. The change primarily reflects fewer customized software projects completed in the nine months ended September 30, 2024, aligning with our strategic focus on corporate learning solutions. Cost of revenues Cost of revenues was RMB95.8 million (US$13.6 million), compared with RMB133.8 million in the same period of 2023, representing a decrease of 28.4%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB22.7 million; (ii) lower instructor compensation costs due to reduced offline activities, aligning with our strategic shift towards subscription-based corporate learning solutions; and (iii) decreased staff expenses and third-party infrastructure costs through operational optimization. Sales and marketing expenses Sales and marketing expenses were RMB105.8 million (US$15.1 million), compared with RMB173.2 million in the same period of last year, representing a decrease of 38.9%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB36.5 million; and (ii) reduced compensation and incentives through human resources optimization. Research and development expenses Research and development expenses were RMB90.6 million (US$12.9 million), compared with RMB136.8 million in the same period of 2023, representing a decrease of 33.8%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB18.8 million; and (ii) reduced compensation through human resources optimization. General and administrative expenses General and administrative expenses were RMB75.0 million (US$10.7 million), compared with RMB117.1 million in the same period of 2023, representing a decrease of 35.9%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB13.5 million; (ii) a RMB18.5 million decrease in share-based compensation following completion of certain share-based incentives amortization; and (iii) reduced professional fees. Net loss and adjusted net loss Net loss was RMB14.9 million (US$2.1 million), compared with a net loss of RMB245.3 million in the same period of last year. Adjusted net loss was RMB123.1 million (US$17.5 million), compared with an adjusted net loss of RMB196.1 million in the same period of last year. Earnings/(loss) per share Basic and diluted net income per share was RMB5.02 (US$0.72), compared with basic and diluted net loss per share of RMB7.06 in the same period of last year. The improvement in earnings per share was primarily attributable to the deemed contribution to common shareholders due to modification and extinguishment of the Company's convertible redeemable preferred shares on July 1, 2024. Balance Sheet As of September 30, 2024, the Company had cash and cash equivalents, restricted cash, short-term investments and long-term bank deposits of RMB488.7 million (US$69.6 million), compared with RMB496.2 million as of December 31, 2023. Conference Call Information The Company's management team will hold a conference call at 8:00 P.M. U.S. Eastern Time on Tuesday, November 26, 2024 (or 9:00 A.M. Beijing Time on Wednesday, November 27, 2024) to discuss the financial results. Details for the conference call are as follows: Event Title:YXT.com First Nine Months of 2024 Earnings Conference CallRegistration Link:https://register.vevent.com/register/BI79cfe397cd984d14b7a1fab15a19b825 All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call. A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.yxt.com/. Non-GAAP Financial Measures In evaluating our business, we consider and use adjusted net loss as a supplemental non-GAAP measure to review and assess our operating performance. Adjusted net loss is net loss excluding amortization of incremental intangible assets resulting from business combination, gain on deconsolidation of CEIBS PG, share-based compensation, change in fair value of derivative liabilities, net of income taxes, to the extent applicable. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP measure facilitates investors' assessment of our operating performance. The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. We compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to", or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. About YXT.com As a technology company, YXT.com provides corporations with digital corporate learning solutions, including SaaS platforms, learning content, and other services. YXT.com is a leader and disruptor of the digital corporate learning industry in China. Established in 2011, YXT.com has supported Fortune 500 companies and other leading companies with their transformation and digitalization of learning and development, and has received recognition, respect and recurring business. Contact Robin Yang ICR, LLC YXT.IR@icrinc.com +1 (646) 405-4883 YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2023 AND SEPTEMBER 30, 2024(All amounts in thousands, except for share and per share data, unless otherwise noted) As of December 31, As of September 30, 2023 2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 320,489 488,464 69,606Restricted Cash - 257 37Short-term investments 58,128 - -Accounts receivable, net 32,790 19,392 2,763Prepaid expenses and other current assets 12,028 18,361 2,616Amounts due from related parties - 7,000 997Total current assets 423,435 533,474 76,019 Non-current assets: Property, equipment and software, net 23,402 16,085 2,292Intangible assets, net 12,720 8,887 1,266Goodwill 164,113 163,837 23,347Long-term investments 126,341 116,693 16,629Operating lease right-of-use assets, net 34,997 20,337 2,898Other non-current assets 22,265 11,760 1,676Long-term bank deposits 117,573 - -Total non-current assets 501,411 337,599 48,108Total assets 924,846 871,073 124,127 LIABILITIES, MEZZANINE AND SHAREHOLDERS' DEFICIT Current liabilities Accounts payable 17,855 8,528 1,215Amounts due to related parties - 3,155 450Short-term borrowings 46,800 179,000 25,507Deferred revenue, current 188,485 101,276 14,432Acquisition consideration payable 14,775 14,775 2,105Other payable and accrued liabilities 89,937 73,150 10,425Derivative liabilities 100,279 - -Operating lease liabilities, current 15,818 6,629 945Total current liabilities 473,949 386,513 55,079 Non-current liabilities Long-term borrowings 219,000 128,000 18,240Operating lease liabilities, non-current 20,257 12,191 1,737Deferred revenue, non-current 58,952 56,038 7,985Total non-current liabilities 298,209 196,229 27,962Total liabilities 772,158 582,742 83,041 YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2023 AND SEPTEMBER 30, 2024(All amounts in thousands, except for share and per share data, unless otherwise noted) As of December 31, As of September 30, 2023 2024 RMB RMB US$ Mezzanine equity Series A convertible redeemable preferred shares (US$0.0001 par value, 15,040,570 and nil shares authorized, issued and outstanding as of December 31, 2023 and September 30, 2024) 408,139 - - Series B convertible redeemable preferred shares (US$0.0001 par value, 7,085,330 and nil shares authorized, issued and outstanding as of December 31, 2023 and September 30, 2024) 199,518 - - Series C convertible redeemable preferred shares (US$0.0001 par value, 23,786,590 and nil shares authorized, issued and outstanding as of December 31, 2023 and September 30, 2024) 493,788 - - Series D convertible redeemable preferred shares (US$0.0001 par value, 37,152,161 and nil shares authorized, issued and outstanding as of December 31, 2023 and September 30, 2024) 1,059,434 - - Series E convertible redeemable preferred shares (US$0.0001 par value, 26,417,318 and nil shares authorized, issued and outstanding as of December 31, 2023 and September 30, 2024) 1,402,802 - - Total mezzanine equity 3,563,681 - - Shareholders' (deficit)/equity Ordinary shares (US$0.0001 par value 390,518,031 and 500,000,000 shares authorized as of December 31, 2023 and September 30, 2024, respectively; 48,253,425 and 180,226,597 shares issued and outstanding as of December 31, 2023 and September 30, 2024, respectively) 33 129 18 Additional paid-in capital 16,671 3,968,966 565,573 Statutory reserve 4,322 - - Accumulated other comprehensive income 23,775 9,989 1,423 Accumulated deficit (3,490,681) (3,690,753) (525,928)Total YXT.COM Group Holding Limited shareholders' (deficit)/equity (3,445,880) 288,331 41,086 Non-controlling interests 34,887 - - Total shareholders' (deficit)/equity (3,410,993) 288,331 41,086 Total liabilities, mezzanine equity and shareholders' (deficit)/equity 924,846 871,073 124,127 YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOMEFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2024(All amounts in thousands, except for share and per share data, unless otherwise noted) For the nine months ended September 30, 2023 2024 RMB RMB US$ Revenues: Corporate learning solutions 318,656 240,286 34,240 Others 10,174 1,439 206 Total revenues 328,830 241,725 34,446 Cost of revenues (133,819) (95,785) (13,649)Sales and marketing expenses (173,241) (105,822) (15,080)Research and development expenses (136,784) (90,606) (12,911)General and administrative expenses (117,087) (75,039) (10,694)Other operating income 5,171 6,461 921 Loss from operations (226,930 ) (119,066 ) (16,967 ) Interest and investment income 3,608 5,105 728 Interest expense (2,831) (7,866) (1,121)Investment losses (6,134) (6,153) (877)Gain on deconsolidation of CEIBS Publishing Group - 78,760 11,223 Foreign exchange loss, net (274) (39) (6)Change in fair value of derivative liabilities (16,200) 34,378 4,899 Loss before income tax expense (248,761 ) (14,881 ) (2,121 )Income tax benefit 3,461 - - Net loss (245,300 ) (14,881) (2,121) Net loss attributable to non-controlling interests shareholders 5,629 300 43 Net loss attributable to YXT.COM Group Holding Limited (239,671 ) (14,581 ) (2,078 ) YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOMEFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2024(All amounts in thousands, except for share and per share data, unless otherwise noted) For the nine months ended September 30, 2023 2024 RMB RMB US$ Net loss attributable to YXT.COM Group Holding Limited (239,671) (14,581) (2,078)Net accretion of convertible redeemable preferred shares (103,840) (290,543) (41,402)Deemed contribution to common shareholders due to modification and extinguishment - 672,170 94,783 Deemed dividend to preferred shareholders due to modification - (5,940) (846)Net (loss)/income attributable to ordinary shareholders of YXT.COM Group Holding Limited (343,511 ) 361,106 51,457 Net loss (245,300 ) (14,881) (2,121)Other comprehensive (loss)/income Foreign currency translation 4,951 (4,715) (671)Unrealized gain/(loss) on investments in available-for-sale debt securities, net of tax 2,923 (9,071) (1,293) Total comprehensive loss (237,426 ) (28,667 ) (4,085 ) Total comprehensive loss attributable to non-controlling interests 5,629 300 42 Total comprehensive loss attributable to YXT.COM Group Holding Limited (231,797 ) (28,367 ) (4,042 ) Net (loss)/income attributable to ordinary shareholders of YXT.COM Group Holding Limited (343,511 ) 361,106 51,457 -- Weighted average number of ordinary shares basic and diluted 48,629,814 72,004,696 72,004,696 Net (loss)/income per share attributable to ordinary shareholders: -- Basic and diluted (7.06) 5.02 0.72 YXT.COM GROUP HOLDING LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTSFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2024(All amounts in thousands, except for share and per share data, unless otherwise noted) For the nine months ended September 30, 2023 2024 RMB RMB US$ Net loss (245,300 ) (14,881) (2,121)Adjustments: Amortization of incremental intangible assets resulting from business combination 12,730 - - Gain on deconsolidation of CEIBS Publishing Group - (78,760) (11,222)Share-based compensation 23,423 4,915 700 Change in fair value of derivative liabilities 16,200 (34,378) (4,899)Adjusted loss before income taxes (192,947) (123,104) (17,542)Adjusted income taxes (3,183) - - Adjusted net loss (196,130 ) (123,104 ) (17,542 ) Market News and Data brought to you by Benzinga APIs

Agora, Inc. Reports Third Quarter 2024 Financial Results - Agora (NASDAQ:API)

SANTA CLARA, Calif., Nov. 25, 2024 (GLOBE NEWSWIRE) -- Agora, Inc. API (the "Company"), a pioneer and leader in real-time engagement technology, today announced its unaudited financial results for the third quarter ended September 30, 2024. "Recently, we launched our Conversational AI SDK in collaboration with OpenAI's Realtime API to allow developers to bring voice-driven AI experiences to any app. We believe multimodal AI agents that can interact with human through natural voice will gain widespread adoption across many use cases such as customer support, education and wellness, and Agora is well positioned to become a key infrastructure provider for real-time conversational AI," said Tony Zhao, founder, chairman and CEO of Agora. "To support this vision, we recently made some structural changes, aligning our organization to fully leverage the accelerating conversational AI opportunities, and operate in a faster, leaner, and more responsive fashion. These changes will help us build the next generation real-time engagement technology for the Generative AI era and strengthen our position as the leader in real-time engagement space." Third Quarter 2024 Highlights Total revenues for the quarter were $31.6 million, a decrease of 9.8% from $35.0 million in the third quarter of 2023, which included decreased revenue from certain end-of-sale products of $2.4 million. Agora: $15.7 million for the quarter, an increase of 2.6% from $15.3 million in the third quarter of 2023.Shengwang: RMB112.9 million ($15.9 million) for the quarter, a decrease of 20.0% from RMB141.2 million ($19.7 million) in the third quarter of 2023, which included decreased revenue from certain end-of-sale products of RMB17.5 million ($2.4 million). Active Customers Agora: 1,762 as of September 30, 2024, an increase of 5.9% from 1,664 as of September 30, 2023.Shengwang: 3,641 as of September 30, 2024, a decrease of 9.7% from 4,034 as of September 30, 2023. Dollar-Based Net Retention Rate Agora: 94% for the trailing 12-month period ended September 30, 2024.Shengwang: 78% for the trailing 12-month period ended September 30, 2024. Net loss for the quarter was $24.2 million, which included expenses of $11.4 million in relation to the cancellation of certain employees' equity awards, severance expenses of $4.8 million, and losses from equity in affiliates of $4.2 million, compared to net loss of $22.5 million in the third quarter of 2023. After excluding share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets and income tax related to acquired intangible assets, non-GAAP net loss for the quarter was $10.4 million, compared to the non-GAAP net loss of $15.6 million in the third quarter of 2023.Total cash, cash equivalents, bank deposits and financial products issued by banks as of September 30, 2024 was $362.6 million.Net cash used in operating activities for the quarter was $4.6 million, compared to $3.0 million in the third quarter of 2023. Free cash flow for the quarter was negative $6.0 million, compared to negative $3.2 million in the third quarter of 2023. Third Quarter 2024 Financial Results Revenues Total revenues were $31.6 million in the third quarter of 2024, a decrease of 9.8% from $35.0 million in the same period last year. Revenues of Agora were $15.7 million in the third quarter of 2024, an increase of 2.6% from $15.3 million in the same period last year, primarily due to our business expansion and usage growth in sectors such as live shopping. Revenues of Shengwang were RMB112.9 million ($15.9 million) in the third quarter of 2024, a decrease of 20.0% from RMB141.2 million ($19.7 million) in the same period last year, primarily due to a decrease in revenues of RMB 17.5 million ($2.4 million) due to the end-of-sale of certain products and reduced usage from customers in certain sectors such as social and entertainment as a result of challenging macroeconomic and regulatory environment. Cost of Revenues Cost of revenues was $10.5 million in the third quarter of 2024, a decrease of 16.4% from $12.6 million in the same period last year, primarily due to the end-of-sale of certain products and the decrease in bandwidth usage and costs, which was offset partially by severance expenses for customer support teams of $0.3 million. Gross Profit and Gross Margin Gross profit was $21.0 million in the third quarter of 2024, a decrease of 6.1% from $22.4 million in the same period last year. Gross margin was 66.7% in the third quarter of 2024, an increase of 2.7% from 64.0% in the same period last year, mainly due to the end-of-sale of certain low-margin products, which was offset partially by higher severance expenses in the third quarter of 2024. Operating Expenses Operating expenses were $45.9 million in the third quarter of 2024, an increase of 24.3% from $36.9 million in the same period last year, primarily due to the increase in restructuring and severance expenses in the third quarter of 2024, which included share-based compensation of $11.4 million as a result of the cancellation of certain employees' equity awards and immediate recognition of relevant remaining unrecognized compensation expenses, as well as severance expenses of $4.4 million. Research and development expenses were $29.3 million in the third quarter of 2024, an increase of 46.1% from $20.0 million in the same period last year, primarily due to restructuring and severance expenses in the third quarter of 2024, including share-based compensation of $9.0 million due to equity award cancellation and severance expenses of $3.6 million.Sales and marketing expenses were $6.9 million in the third quarter of 2024, a decrease of 11.9% from $7.8 million in the same period last year, primarily due to a decrease in personnel costs as the Company optimized its global workforce, which was offset partially by severance expenses of $0.7 million in the third quarter of 2024.General and administrative expenses were $9.7 million in the third quarter of 2024, an increase of 7.4% from $9.1 million in the same period last year, primarily due to restructuring and severance expenses in the third quarter of 2024, including share-based compensation of $2.4 million as a result of the equity award cancellation, which was offset partially by a decrease in personnel costs as the Company optimized its global workforce. Loss from Operations Loss from operations was $24.7 million in the third quarter of 2024, compared to $13.9 million in the same period last year. Interest Income Interest income was $3.9 million in the third quarter of 2024, compared to $4.9 million in the same period last year, primarily due to the decrease in the average balance of cash, cash equivalents, bank deposits and financial products issued by banks and the decrease in average interest rate realized. Losses from equity in affiliates Losses from equity in affiliates were $4.2 million in the third quarter of 2024, primarily due to an impairment loss on an investment in certain private company of $4.1 million. Net Loss Net loss was $24.2 million in the third quarter of 2024, compared to $22.5 million in the same period last year. Net Loss per American Depositary Share attributable to ordinary shareholders Net loss per American Depositary Share ("ADS")1 attributable to ordinary shareholders was $0.26 in the third quarter of 2024, compared to $0.23 in the same period last year. _____________ 1 One ADS represents four Class A ordinary shares. Share Repurchase Program During the three months ended September 30, 2024, the Company repurchased approximately 6.8 million of its Class A ordinary shares (equivalent to approximately 1.7 million ADSs) for approximately US$3.9 million under its share repurchase program, representing 1.9% of its US$200 million share repurchase program. As of September 30, 2024, the Company had repurchased approximately 129.4 million of its Class A ordinary shares (equivalent to approximately 32.3 million ADSs) for approximately US$113.7 million under its share repurchase program, representing 57% of its US$200 million share repurchase program. As of September 30, 2024, the Company had 368.3 million ordinary shares (equivalent to approximately 92.1 million ADSs) outstanding, compared to 449.8 million ordinary shares (equivalent to approximately 112.5 million ADSs) outstanding as of January 31, 2022 before the share repurchase program commenced. The current share repurchase program will expire at the end of February 2025. Executive Leadership Update Today the Company announced that Chief Security Officer Roger Hale will be leaving the Company, effective immediately. Mr. Hale has served in this role for the past 2.5 years, during which he made significant contributions to enhancing the Company's security, compliance, and data protection protocols. Mr. Hale will work closely with senior leadership to ensure a smooth transition of his responsibilities. Moving forward, Patrick Ferriter and Robbin Liu will assume responsibility for security and compliance, reflecting the Company's commitment to maintaining a strong and effective security framework. Mr. Hale will continue to provide strategic advice as an advisor to the Company. "We are grateful for Roger's dedication and expertise over the past two and a half years. His leadership has been invaluable in strengthening our security & compliance foundation," said Tony Zhao, founder, chairman and CEO of Agora. "Security and compliance remain top priorities for Agora, and we will continue to uphold the highest standards to protect our customers and stakeholders." Financial Outlook Based on currently available information, the Company expects total revenues for the fourth quarter of 2024 to be between $34 million and $36 million, compared to $31.6 million in the third quarter of 2024, and $33.3 million in the fourth quarter of 2023 if revenues from certain end-of-sale low-margin products were excluded. The Company also expects significant improvement in net income / (loss) in the fourth quarter. This outlook reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change. Earnings Call The Company will host a conference call to discuss the financial results at 5 p.m. Pacific Time / 8 p.m. Eastern Time on November 25, 2024. Details for the conference call are as follows: Event title: Agora, Inc. 3Q 2024 Financial Results The call will be available at https://edge.media-server.com/mmc/p/wie28zvr Investors who want to hear the call should log on at least 15 minutes prior to the broadcast. Participants may register for the call with the link below. https://register.vevent.com/register/BIf58a0b6f500c4362b1a8c64f9fa4cea8 Please visit the Company's investor relations website at https://investor.agora.io on November 25, 2024 to view the earnings release and accompanying slides prior to the conference call. Use of Non-GAAP Financial Measures The Company has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company uses these non-GAAP financial measures internally in analyzing its financial results and believe that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing its financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Besides free cash flow (as defined below), each of these non-GAAP financial measures represents the corresponding GAAP financial measure before share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill. The Company believes that such non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effects of such share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill that it includes in its cost of revenues, total operating expenses and net income (loss). The Company believes that all such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of its historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the tables captioned "Reconciliation of GAAP to Non-GAAP Measures" included at the end of this press release, and investors are encouraged to review the reconciliation. Definitions of the Company's non-GAAP financial measures included in this press release are presented below. Non-GAAP Net Income (Loss) Non-GAAP net income (loss) is defined as net income (loss) adjusted to exclude share-based compensation expenses, acquisition related expenses, amortization expenses of acquired intangible assets, income tax related to acquired intangible assets and impairment of goodwill. Free Cash Flow Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment (excluding the acquisition of land use right and the payment for the headquarters project). The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business. Operating Metrics The Company also uses other operating metrics included in this press release and defined below to assess the performance of its business. Active Customers An active customer at the end of any period is defined as an organization or individual developer from which the Company generated more than $100 of revenue during the preceding 12 months. Customers are counted based on unique customer account identifiers. Generally, one software application uses the same customer account identifier throughout its life cycle while one account may be used for multiple applications. Dollar-Based Net Retention Rate Dollar-Based Net Retention Rate is calculated for a trailing 12-month period by first identifying all customers in the prior 12-month period, and then calculating the quotient from dividing the revenue generated from such customers in the trailing 12-month period by the revenue generated from the same group of customers in the prior 12-month period. As the vast majority of revenue generated from Agora's customers is denominated in U.S. dollars, while the vast majority of revenue generated from Shengwang's customers is denominated in Renminbi, Dollar-Based Net Retention Rate is calculated in U.S. dollars for Agora and in Renminbi for Shengwang, which has substantially removed the impact of foreign currency translations. Shengwang excluded the revenues from certain end-of-sale products, Easemob's CEC business and K12 academic tutoring sector. The Company believes Dollar-Based Net Retention Rate facilitates operating performance comparisons on a period-to-period basis. Safe Harbor Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the Company's financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. Among other things, the Financial Outlook in this announcement contain forward-looking statements. These forward-looking statements are based on the Company's current expectations and involve risks and uncertainties. The Company's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the growth of the RTE-PaaS market; the Company's ability to manage its growth and expand its operations; the continued impact of COVID-19 on global markets and the Company's business, operations and customers; the Company's ability to attract new developers and convert them into customers; the Company's ability to retain existing customers and expand their usage of its platform and products; the Company's ability to drive popularity of existing use cases and enable new use cases, including through quality enhancements and introduction of new products, features and functionalities; the Company's fluctuating operating results; competition; the effect of broader technological and market trends on the Company's business and prospects; general economic conditions and their impact on customer and end-user demand; and other risks and uncertainties included elsewhere in the Company's filings with the Securities and Exchange Commission ("SEC"), including, without limitation, the final prospectus related to the IPO filed with the SEC on June 26, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof. About Agora, Inc. Agora, Inc. is the Cayman Islands holding company of two independent divisions, under Agora brand and Shengwang brand, respectively, whose businesses are conducted through separate entities. Headquartered in Santa Clara, California, Agora is a pioneer and global leader in Real-Time Engagement Platform-as-a-Service (PaaS), providing developers with simple, flexible, and powerful application programming interfaces, or APIs, to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. Headquartered in Shanghai, China, Shengwang is a pioneer and leading Real-Time Engagement PaaS provider in the China market. For more information on Agora, please visit: www.agora.io For more information on Shengwang, please visit: www.shengwang.cn Agora, Inc. Condensed Consolidated Balance Sheets (Unaudited, in US$ thousands) As of As of September 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents32,118 36,894 Short-term bank deposits161,906 86,924 Short-term financial products issued by banks106,638 84,853 Short-term investments3,066 7,983 Accounts receivable, net37,381 34,668 Prepayments and other current assets21,087 9,059 Contract assets1,127 1,048 Total current assets363,323 261,429 Property and equipment, net4,238 5,365 Construction in progress for the headquarters project35,429 17,343 Operating lease right-of-use assets4,476 4,011 Intangible assets741 1,274 Long-term bank deposits20,500 143,127 Long-term financial products issued by banks41,400 20,000 Long-term investments41,012 43,893 Land use right, net166,434 167,246 Other non-current assets13,943 10,907 Total assets691,496 674,595 Liabilities and shareholders' equity Current liabilities: Accounts payable15,196 12,996 Advances from customers8,155 7,765 Taxes payable1,686 906 Current operating lease liabilities1,924 2,447 Accrued expenses and other current liabilities32,148 32,780 Total current liabilities59,109 56,894 Long-term operating lease liabilities2,429 1,726 Deferred tax liabilities113 196 Long-term borrowings for the headquarters project33,762 11,027 Other non-current liabilities19,543 3 Total liabilities114,956 69,846 Shareholders' equity: Class A ordinary shares39 39 Class B ordinary shares8 8 Additional paid-in-capital1,148,502 1,138,346 Treasury shares, at cost(77,316) (79,716) Accumulated other comprehensive loss(7,907) (10,027) Accumulated deficit(486,786) (443,901) Total shareholders' equity576,540 604,749 Total liabilities and shareholders' equity691,496 674,595 Agora, Inc. Condensed Consolidated Statements of Comprehensive Loss (Unaudited, in US$ thousands, except share and per ADS amounts) Three Month Ended Nine Month Ended September 30, September 30, 2024 2023 2024 2023 Real-time engagement service revenues30,356 32,718 95,716 100,798 Real-time engagement on-premise solution and other revenues1,217 2,298 3,087 4,699 Total revenues31,573 35,016 98,803 105,497 Cost of revenues10,524 12,594 36,304 38,693 Gross profit21,049 22,422 62,499 66,804 Operating expenses: Research and development29,271 20,040 65,551 61,356 Sales and marketing6,860 7,789 19,944 26,903 General and administrative9,741 9,070 26,349 27,100 Total operating expenses45,872 36,899 111,844 115,359 Other operating income134 620 914 1,515 Impairment of goodwill- - - (31,928)Loss from operations(24,689)(13,857) (48,431)(78,968)Exchange gain (loss)43 20 108 (191)Interest income3,924 4,850 13,244 14,006 Interest expense(86)- (251)- Investment income (loss)839 (13,356) (4,033)(18,497)Losses from extinguishment of convertible note- - - (1,230)Other income- - - 550 Loss before income taxes(19,969)(22,343) (39,363)(84,330)Income taxes- (164) (149)(323)(Losses) income from equity in affiliates(4,211)(6) (3,373)45 Net loss(24,180)(22,513) (42,885)(84,608)Net loss attributable to ordinary shareholders(24,180)(22,513) (42,885)(84,608)Other comprehensive loss: Foreign currency translation adjustments3,197 1,164 2,119 (6,097)Gain on available-for-sale debt securities- - - 1,385 Total comprehensive loss attributable to ordinary shareholders(20,983)(21,349) (40,766)(89,320) Net loss per ADS attributable to ordinary shareholders, basic and diluted(0.26)(0.23) (0.46)(0.84) Weighted-average shares used in computing net loss per ADS attributable to ordinary shareholders, basic and diluted371,733,050 389,359,207 372,336,342 405,036,312 Share-based compensation expenses included in: Cost of revenues31 129 184 576 Research and development expenses10,776 3,769 15,886 10,668 Sales and marketing expenses241 800 838 3,705 General and administrative expenses2,599 1,945 4,332 5,953 Agora, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited, in US$ thousands) Three Month Ended Nine Month Ended September 30, September 30, 2024 2023 2024 2023 Cash flows from operating activities: Net loss(24,180)(22,513) (42,885)(84,608)Adjustments to reconcile net loss to net cash used in operating activities: Share-based compensation expenses13,647 6,643 21,240 20,902 Allowance for current expected credit losses2,415 1,857 7,263 5,358 Depreciation of property and equipment788 1,558 2,726 5,680 Amortization of intangible assets131 345 533 1,036 Amortization of land use right856 850 2,572 2,312 Deferred tax benefit(20)(53) (82)(159)Amortization of right-of-use asset and interest on lease liabilities687 704 2,035 2,218 Investment (income) loss(839)13,356 4,033 18,497 Losses from extinguishment of convertible note- - - 1,230 Interest income on debt securities and investments- - - (105)Losses (income) from equity in affiliates4,211 6 3,373 (45)Loss (gain) on disposal of property and equipment1 34 16 (10)Impairments of goodwill- - - 31,928 Changes in assets and liabilities, net of effect of acquisition: Accounts receivable(1,627)(4,503) (9,418)(7,856)Contract assets(38)(86) (67)(942)Prepayments and other current assets347 (659) (12,129)(1,008)Other non-current assets(472)(2,104) 6,668 (5,160)Accounts payable(2,531)2,653 2,042 3,639 Advances from customers(41)100 316 (559)Taxes payable107 31 761 (802)Operating lease liabilities(677)(324) (2,319)(1,869)Deferred income256 - 62 (160)Accrued expenses and other liabilities2,357 (928) (5,404)(6,808)Net cash used in operating activities(4,622)(3,033) (18,664)(17,291)Cash flows from investing activities: Purchase of property and equipment(1,333)(206) (2,297)(656)Purchase of short-term bank deposits- (58,000) (43,100)(187,521)Purchase of short-term financial products issued by banks(50,300)(19,525) (70,391)(29,899)Purchase of short-term investments- (789) - (789)Proceeds from maturity of short-term bank deposits37,000 86,000 111,241 434,058 Proceeds from maturity of short-term financial products issued by banks59,482 - 69,511 8,310 Purchase of long-term bank deposits(10,500)- (20,500)(143,127)Purchase of long-term financial products issued by banks(32,000)- (41,400)(20,000)Purchase of long-term investments(562)- (562)(15)Purchase of land use right- - - (5,133)Payment for the headquarters project(10,918)(1,839) (21,895)(4,326)Cash received for business disposal- - - 5,769 Cash received from disposal of property and equipment2 36 58 87 Cash paid for a business combination- - - (3,680)Cash received from disposal of long-term investments28 - 155 - Net cash (used in) provided by investing activities(9,101)5,677 (19,180)53,078 Cash flows from financing activities: Proceeds from long-term borrowings for headquarters project11,123 - 22,177 - Deposits returned for business disposal- - - (1,000)Proceeds from exercise of employees' share options175 74 550 590 Deposit received in relation to headquarters project- - 19,280 - Repurchase of Class A ordinary shares(3,913)(12,462) (9,667)(52,829)Net cash provided by (used in) financing activities7,385 (12,388) 32,340 (53,239)Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash819 53 678 (1,286)Net decrease in cash, cash equivalents and restricted cash(5,519)(9,691) (4,826)(18,738)Cash balance recorded in held-for sale assets at beginning of period- - - 1,488 Cash, cash equivalents and restricted cash at beginning of period *37,867 38,268 37,174 45,827 Cash, cash equivalents and restricted cash at end of period **32,348 28,577 32,348 28,577 Supplemental disclosure of cash flow information: Income taxes paid24 33 133 65 Cash payments included in the measurement of operating lease liabilities677 324 2,319 1,869 Right-of-use assets obtained in exchange for operating lease obligations1,812 - 2,325 4,088 Non-cash financing and investing activities: Proceeds receivable from exercise of employees' share options328 25 328 25 Payables for property and equipment33 24 33 24 Payables for construction in progress for the headquarters project11,614 6,458 11,614 6,458 Payables for treasury shares, at cost24 301 24 301 * includes restricted cash balance280 280 280 154 ** includes restricted cash balance230 280 230 280 Agora, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited, in US$ thousands, except share and per ADS amounts) Three Month Ended Nine Month Ended September 30, September 30, 2024 2023 2024 2023 GAAP net loss(24,180)(22,513) (42,885)(84,608)Add: Share-based compensation expenses13,647 6,643 21,240 20,902 Acquisition related expenses- 13 - (400)Amortization expenses of acquired intangible assets129 345 531 1,035 Income tax related to acquired intangible assets(20)(53) (82)(159)Impairment of goodwill- - - 31,928 Non-GAAP net loss(10,424)(15,565) (21,196)(31,302) Net cash used in operating activities(4,622)(3,033) (18,664)(17,291)Purchase of property and equipment(1,333)(206) (2,297)(656)Free Cash Flow(5,955)(3,239) (20,961)(17,947)Net cash (used in) provided by investing activities(9,101)5,677 (19,180)53,078 Net cash provided by (used in) financing activities7,385 (12,388) 32,340 (53,239) Investor Contact: investor@agora.io Media Contact: press@agora.io Market News and Data brought to you by Benzinga APIs