Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What impact will the recent organizational restructuring have on upcoming earnings, and can you update us on the collaboration with OpenAI? A: Jingbo Wang, CFO, stated that operating expenses are expected to be about $4 million lower in Q4 and $7 million lower in Q1 compared to Q2, with most savings translating into bottom-line improvements. Tony Zhao, CEO, mentioned that the collaboration with OpenAI has generated significant interest, with ongoing work to enhance technology and infrastructure for smoother conversational experiences.
Q: Can you provide more details on the Q4 revenue guidance and the demand trends in China and internationally? A: Jingbo Wang, CFO, explained that Q4 revenue is expected to increase due to demand in both international markets, particularly in live shopping and social spaces, and in China, driven by IoT and digital transformation. Market share expansion in China also contributes to the growth despite challenging economic conditions.
Q: How is Agora progressing with domestic large model players in AI, and what are the trends in AI applications between China and the US? A: Tony Zhao, CEO, highlighted collaborations with various foundational model companies and the interest in leveraging conversational AI for customer service, education, IoT, and social companionship. Many use cases are still in the experimental stage, with technology maturing over time.
Q: What is the revenue and cash flow outlook for next year, and what assumptions support achieving the break-even point? A: Jingbo Wang, CFO, reiterated the target to achieve GAAP break-even in 2025 under conservative revenue assumptions. The company aims for moderate revenue growth from existing use cases and readiness for demand from conversational AI, supported by operating expense savings.
Q: How does the recent pricing adjustment by OpenAI affect Agora's operations? A: Jingbo Wang, CFO, noted that OpenAI's cash pricing for voice input is 80% cheaper, but the overall pricing impact is limited as the standard pricing for audio input remains unchanged. The output token pricing, which is more expensive, has not changed, indicating room for cost reduction in the medium term.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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