Agora: 2020 roadshow PPT revealed, with a maximum fundraising of US$360 million and expected to be listed this week

On June 23, 2020, Agora updated its prospectus and plans to be listed on the Nasdaq in the United States with the stock code "API", securing the title of the world's first real-time interactive cloud stock.

The prospectus shows that Agora will issue 17.5 million American Depositary Shares (ADS), each ADS equivalent to four Class A common shares, and the issue price range is US$16 to US$18 per ADS.

Morgan Stanley and Bank of America Securities serve as joint lead underwriters, and the underwriters have a total over-allotment option of 2.625 million shares. If the "green shoe mechanism" is implemented, the fundraising scale will be at most US$360 million.

The prospectus shows that Dragoneer, a well-known American technology investment fund, intends to subscribe for up to US$50 million in this IPO.

In addition, the prospectus shows that American technology hedge fund Coatue, an existing shareholder of Agora, Asian investment fund Neumann Capital and well-known European private equity fund Vitruvian have agreed to participate in the simultaneous private placement of the IPO, subscribing for US$50 million, US$30 million and US$30 million of Class A common stock respectively, totaling US$110 million. These shares have a 180-day lock-up period.

The following is the Agora roadshow PPT:

Agora's stock code is API, the issue price is between US$16 and US$18, and the issue price is expected to be announced on June 25. The listing location is Nasdaq in the United States.

Agora pioneered the real-time engagement platform-as-a-service (RTE PaaS) industry.

Agora provides developers with an easy-to-use, highly customizable, and highly compatible API. Developers can embed real-time audio and video interaction capabilities into their applications without having to conduct technical research or build their own underlying architecture.

From its inception to March 31, 2020, more than 180,000 applications have been registered on Agora's platform. In March 2020 alone, Agora provided more than 40 billion minutes of real-time interactive usage time to end users in more than 100 countries through more than 10,000 active applications.

Agora was founded in Silicon Valley in 2013 by Zhao Bin, one of the founding engineers of Webex and former CTO of YY Voice. Zhao Bin and Zoom founder Yuan Zheng are former colleagues.

Agora has distributed teams in many locations including Shanghai, Beijing, Guangzhou, Bangalore, and Tokyo.

By calling Agora's API, developers can quickly create scenarios such as video social networking, interactive live streaming, gaming, AR remote collaboration, video alarms, video customer service, and robot video companionship.

Comparison between the solution provided by Agora and traditional methods

Real-time Engagement (RTE) allows two or more people to communicate using real-time video or voice over the Internet, which is the voice and video function found in many applications.

Product development history of Agora

Services provided by the Agora platform

How to use the SDK of Agora

High value-added services provided by Agora

High value-added services provided by Agora

Agora develops partner ecosystem

The relationship between Agora and developers

Agora's development strategy

Agora’s revenue model

Agora’s revenue-driving model

Agora’s gross profit

Agora’s Adjusted EBITDA and Cash Flow Breakdown

Agora’s growth model

Agora's corporate structure and shareholders

Before the IPO, Agora founder Zhao Bin held 27.4% of the shares and was the largest shareholder; Siming Tao held 4.9%; Morningside Venture Capital held 15.7%;

SIG holds 12.8% of the shares; Shunwei Capital holds 10.2%; Coatue PE Asia XVI LLC holds 9%; and Easy Dynamic International Limited holds 7.4%.

GGV holds 2.3% of the shares, Tiger Global Fund holds 2.2% of the shares, and other investors hold 15.5% of the shares.

The prospectus shows that Agora's revenue increased by 47.6% from US$43.66 million in 2018 to US$64.43 million in 2019. Agora's revenue in the first quarter of 2020 was US$35.56 million, a significant increase of 166% from US$13.36 million in the first quarter of 2019.

Almost all of Agora's revenue comes from cloud services. In 2018 and 2019, the revenue from real-time interactive cloud services was US$43.199 million and US$63.925 million respectively, and the revenue from real-time interactive services accounted for 98.95% and 99.22% of the total revenue respectively.

In the first quarter of 2019, Agora's operating cash flow was US$3.619 million, and in the first quarter of 2020, it was negative US$919,000.

At the end of March 2020, Agora had cash and cash equivalents of US$152 million.

The temporary negative cash flow in the first quarter of 2020 may be due to the impact of the COVID-19 pandemic. The revenue grew rapidly in the short term, and according to accounting standards, it was included in the revenue of the first quarter of 2020. However, due to the payment period not being due, the cash flow in the first quarter was slightly negative. In the future, as the revenue is gradually collected, the operating cash flow may rebound significantly.

Agora's GAAP and Non-GAAP data

via Leidi Touch Network