Agora-声网Agora上市IPO招股书（英文）-2020.6-301页_11mb

Agora, Inc. Summary

Core Content

Agora, Inc. is a company based in the Cayman Islands with its principal executive offices in Shanghai, China. It is offering 17,500,000 American Depositary Shares (ADSs) in an initial public offering (IPO), with each ADS representing four Class A ordinary shares. The IPO is expected to commence as soon as practicable after the effective date of the registration statement. The company is also conducting a concurrent private placement with certain entities, including affiliates of existing shareholders, which may purchase up to US$110 million worth of shares.

Agora is classified as an "emerging growth company" and is eligible for reduced public company reporting requirements. Following the IPO and private placement, the company will be a "controlled company" as its founder and CEO, Mr. Bin (Tony) Zhao, will beneficially own all Class B ordinary shares, representing more than 50% of the total voting power.

Key Information

• Class A Ordinary Shares: Par value of US$0.0001 per share. Not convertible into Class B shares.
• Class B Ordinary Shares: Par value of US$0.0001 per share. Each is entitled to 20 votes and is convertible into one Class A share.
• IPO Details:
  • Number of ADSs: 17,500,000
  • Price Range: US$16.00 to US$18.00 per ADS
  • Underwriters: Morgan Stanley, BofA Securities, Needham & Company
  • Over-allotment Option: Up to 2,625,000 additional ADSs
• Registration Fee: US$47,021, which includes an additional payment of US$34,041
• Listing: ADSs will be listed on the Nasdaq Global Select Market under the symbol "API"
• Private Placement: Coatue CPP 10 LLC, Neumann Capital, and Vitruvian Partners affiliated entities have agreed to purchase US$50 million, US$30 million, and US$30 million respectively.

Main Business and Technology

Agora provides a Real-Time Engagement Platform-as-a-Service (RTE-PaaS), enabling developers to embed real-time video and voice functionalities into their applications without needing to build the underlying infrastructure. The platform is built on a Software-Defined Real-Time Network (SD-RTN), which is a virtual network overlay on top of the public internet, operating from more than 200 co-located data centers worldwide.

The SD-RTN uses a full-mesh architecture and sophisticated algorithms to monitor and optimize data transmission paths, minimizing latency and packet loss. This results in a superior end-user experience, especially in challenging network conditions.

Key Features of the Agora Platform

• Quality and Reliability: Industry-leading performance in latency and media quality, even with up to 70% packet loss.
• Comprehensive Features: Offers a wide range of product features beyond basic video and voice, including content moderation, interactive whiteboards, and voice masking.
• Easy Integration: The Agora SDK is designed to be user-friendly, customizable, and compatible with major operating systems, development frameworks, and programming languages.
• Scalability: Advanced architecture and global infrastructure support rapid scaling to serve millions of users.
• Cost Efficiency: Usage-based pricing model with no upfront fees allows customers to manage costs effectively.
• Compatibility: Works across a wide variety of devices, including older and less sophisticated models.
• Transparency: Real-time analytics enable customers to monitor and analyze engagement sessions, manage billing, and gain insights into user experience.

Financial Highlights

• Revenue Growth: From US$13.4 million in Q1 2019 to US$35.6 million in Q1 2020, an increase of 165.7%.
• Net Income: US$(0.7) million in Q1 2019 and US$3.0 million in Q1 2020.
• Adjusted EBITDA: US$0.7 million in Q1 2019 and US$5.5 million in Q1 2020.
• Total Revenue (2018–2019): US$43.7 million to US$64.4 million, an increase of 47.6%.
• Net Income (2018–2019): US$0.4 million to US$(6.2) million.
• Adjusted EBITDA (2018–2019): US$4.0 million to US$31.0 thousand.
• Active Customers: As of March 31, 2020, 1,176 active customers generating over US$100 of revenue in the preceding 12 months.
• Monthly Engagement Minutes: Over 40 billion minutes in March 2020 across more than 10,000 active applications in over 100 countries.

Growth Drivers

• Convergence of Adoption Trends: Enterprise and consumer applications are driving the adoption of RTE-PaaS globally.
• Organic Growth: Applications built on Agora's platform are experiencing strong organic growth as users demand immersive and high-quality real-time experiences.
• 5G Rollout: Expected to accelerate innovation and proliferation of RTE use cases due to improved internet infrastructure and connectivity.
• Displacement of In-house Solutions: As in-house developers face challenges in expertise and infrastructure, RTE-PaaS solutions are becoming more prevalent.

Risk Factors

Investing in Agora's ADSs involves risks, which are detailed in the "Risk Factors" section starting on page 21 of the prospectus. These include market risks, competition, regulatory risks, and operational risks.

Industry Background

• Rise of PaaS: Platform-as-a-Service has become a strategic tool for digital enterprises to improve software development efficiency.
• User Demand: Users increasingly prefer real-time and immersive online experiences, especially through video.
• Emergence of RTE-PaaS: The combination of user demand and developer adoption has led to the rise of RTE-PaaS, which Agora is a global leader in.
• Technological Challenges: Delivering real-time engagement over the public internet is difficult due to packet loss, latency, and compatibility issues.

Conclusion

Agora is a leader in the RTE-PaaS industry, offering a scalable, reliable, and cost-effective platform that enables developers to integrate real-time video and voice engagement into their applications. The company's growth is driven by increasing demand for real-time interaction, the rollout of 5G, and the convergence of enterprise and consumer adoption trends. The IPO and private placement are key steps in the company's expansion and public listing strategy.