Agora, Inc. (API) saw its stock plunge 10.29% in after-hours trading on Monday, following the release of its third-quarter 2024 financial results. The company reported a wider net loss of $24.2 million, compared to a net loss of $22.5 million 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 losses, 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. The company also provided a revenue outlook for the fourth quarter between $34 million and $36 million, which would represent improvement compared to the third quarter.
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