Agora, Inc. (API) saw its stock plunge 5.88% in pre-market trading on Tuesday, following the release of its third-quarter 2024 financial results. The video software company reported a wider net loss of $24.2 million, or $0.26 per American Depositary Share (ADS), compared to a net loss of $22.5 million, or $0.23 per ADS, in the same quarter last year.

The increased losses were primarily driven by restructuring and severance costs incurred during the quarter. Agora recorded $11.4 million in expenses related to the cancellation of certain employees' equity awards and $4.8 million in severance expenses. Additionally, the company posted a $4.2 million loss from equity in affiliates, including a $4.1 million impairment loss on an investment.

Agora's revenues declined by 9.8% year-over-year to $31.6 million, impacted by a decrease in revenues from certain end-of-sale products. However, the company provided a revenue outlook for the fourth quarter between $34 million and $36 million, which would represent an improvement compared to the third quarter.

Despite the wider losses and restructuring charges in Q3, investors seem to be reacting positively to Agora's improved Q4 revenue outlook, suggesting the company's efforts to streamline operations and focus on growth areas may be paying off.