The Situation

Agora Inc (NASDAQ: API) shares -- a company that provides video, voice, and a live interactive streaming platform through its communication software solutions -- plunged on Tuesday after Q3 announcements. As of 12:00 PM, ET Agora shares dropped by 20.30%.

The Explanation

Agora Inc officially went public on June 127, 2020, at $20 per share for 17.5 million shares. Upon IPO, it immediately ballooned to $45 per share, making the company worth up to $437.5 million.

The company announced its Q3 highlights with revenue at $41 million, a 9.0% decrease compared to its 2021 $45 million during the same quarter. The company also reported a net loss of $27.7 million compared to the $21.1 million loss in Q3 of 2021.

The company also reported a gross profit decrease of 17.0% to $24.3 million from $29.3 million during the same period last year. Its gross margin was 59.4% in Q3 of 2022 from 65.2% in the same period last year.
See the $API chart performance here.

The Effect

Agora Inc reported its performance drop compared to last year. The investors’ reaction happened despite the company reporting a 16.5% growth to 2,987 active customers in September 2022 compared to 2,564 in the same period in 2021.

Since investors can’t know for sure whether the company will improve in performance, it is more important to focus on Agora’s business. The company is down 83.19% year-to-date.

See full $API flow at: https://unusualwhales.com/stock/API/flow-overview