Agora, a communications infrastructure platform traded on NASDAQ under the ticker symbol API, is set to release its quarterly earnings report tomorrow afternoon. Here’s what investors need to know.
In the last quarter, the company recorded revenues of $40.1 million, which is a 0.66% decrease compared to the same period in the previous year, and 1.12% lower than the analyst expectations. Despite an addition of 79 customers taking the total to 3,066, it was not a strong quarter for Agora, with its full-year guidance missing analysts’ expectations and revenue figures below the top line analyst estimates.
You can find a free full analysis of if Agora is a buy or sell before the earnings on this link.
For this quarter, industry analysts are expecting a 6.05% year-over-year decrease in revenues to $36.2 million, which is a further deceleration from the 4.08% decline recorded in the previous year’s corresponding quarter. The company’s adjusted loss per share is expected to be -$0.09.
Most of the analysts covering Agora have reiterated their estimates in the past 30 days, indicating that they expect the business to remain on the same course heading into the earnings. It is important to note that the company has missed Wall Street’s revenue expectations twice in the last two years.
Looking at Agora’s peers in the software development industry, some have already released their Q1 earnings reports. F5 Networks, for instance, reported 10.9% year-over-year top-line growth, beating analysts’ estimates by 0.62%. Conversely, Cloudflare’s revenue increased by 36.8% year-over-year but fell 0.22% shy of the analysts’ estimates. The stock for F5 Networks went up 0.52% after the results, compared to a 23.2% drop in the Cloudflare stock. You can have a more in-depth analysis of F5 Networks and Cloudflare earnings here, and here, respectively.
Over the past month, there has been a positive sentiment among investors in the software segment, with an average stock price increase of 9.73%. Conversely, Agora’s stock price has decreased by 15.3% in the same period. Going into the earnings, the company has an analyst price target of $4,5 compared to a share price of $2.93.
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Disclosure:The author has no position in any of the stocks mentioned.