Agora, Inc. (API) saw its stock surge over 10% in pre-market trading on Wednesday following the release of its fourth-quarter 2024 earnings report. The company achieved profitability for the first time in several years, reporting a net income of $0.2 million and a 0.5% net margin.

The strong financial results, combined with the launch of Agora's new conversational AI engine for interactive voice experiences, fueled investor optimism and drove the significant intraday rally for the tech company's shares.

In its earnings report, Agora highlighted several positive points, including:

• Total revenue growth of 4% year-over-year to $34.5 million, driven by expansion in live shopping and entertainment verticals.
• Continued momentum in core growth areas like live commerce and the creator economy, both in China and globally.
• The release of a new AI-powered conversational engine, enabling developers to create interactive voice experiences leveraging AI models.

While the company faced some challenges, such as a slight decline in gross margins and ongoing operating expenses, the overall outlook for Agora's AI and emerging market opportunities appears promising. Analysts noted the strong interest in Agora's conversational AI engine and its potential applications, particularly in areas like virtual companions, smart IoT devices, and educational platforms.

As the market continues to embrace generative AI and conversational experiences, Agora's strategic focus on these areas seems to have resonated with investors, driving the double-digit surge in its stock price on Wednesday morning.