Shares of Agora, Inc. (API) plunged 5.46% in pre-market trading on Tuesday, following the release of the company's 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.

Despite the wider losses and restructuring charges, Agora provided a revenue outlook for the fourth quarter between $34 million and $36 million, which would represent an improvement compared to the third quarter. This improved Q4 revenue outlook could potentially help offset some of the negative impact from the Q3 results.