Why Agora (API) Stock Is Diving

Agora Inc API shares are trading lower by 14.06% to $3.31 Tuesday morning after the company reported fourth-quarter financial results.

What Happened?

Agora reported quarterly losses of 14 cents per share which met the analyst consensus estimate. The company also reported quarterly sales of $40.12 million which beat the analyst consensus estimate of $40.00 million by less than 1%. This sales figure is roughly a 0.7% decrease over sales of $40.39 million in the same period last year.

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Meanwhile total revenues in 2022 were $160.7 million, a decrease of 4.4% from $168.0 million in 2021. Net loss for the company in 2022 was $120.4 million, compared to net loss of $72.4 million in 2021.

"We made significant adjustments to our organization and strategy to overcome the many challenges in 2022, including regulatory changes in certain market and a turbulent macroeconomic environment," said Tony Zhao, founder, chairman and CEO of Agora said in part of a statement to shareholders.

"In recent months, we further streamlined our operations and simplified our organizational structure to help our teams become more customer-centric and more focused on local market dynamics.

According to data from Benzinga Pro, Agora has a 52-week high of $12.50 and a 52-week low of $2.50.