Agora.io reports Q2 2021 results, total revenues increased by 24.9% YOY and active customers rose by 65%

Agora.io(NASDAQ: API), a leading platform for real-time engagement APIs, recently announced its financial results for the second quarter ended June 30, 2021.Source: Agora, Inc. Reports s Quarter 2021 Financial ResultsAccording to the report, total revenues were $42.3 million in Q2 2021, reaching a record high, up 24.9% year-over-year. The strong revenue growth primary is due to the increased usage of Agora's video and voice products as a result of its business expansion and usage growth in emerging use cases.Cost of revenues was USD16.5 million for Q2 2021, an increase of 44.8% from $ 11.4 million in the same period of 2020. This quarter, the gross margin decreased from 66.4% in Q2 2020 to 61.1%, mainly driven by international expansion to regions with higher infrastructure costs and capacity expansion in anticipation of future usage growth. Operating margin was -45.1% in Q2 2021, compared to 9.1% in Q2 2020, mainly driven by the surging operating expenses, which rose 123.9% from $20.2 million for Q2 2020 to $45.3 million this quarter. In Q2 2021, research and development expenses were $27.0 million, up 147.3% year-over-year, sales and marketing expenses were $11.0 million, up 86.2% year-over-year, and general and administrative expenses were $7.3 million, up 114.1% year-over-year. As for the bottom line, net loss was $15.4 million in Q2 2021, compared to a net income of $3.0 million in the same quarter of 2020. As of June 30, 2021, total cash, cash equivalents, and short-term investments were $827 million for Q2 2021, indicating a robust liquidity position compared to $641 million the same quarter last year.Net cash used in operating activities for the quarter was $8.3 million, compared to net cash generated from operating activities of $7.5 million in Q2 2020. Free cash flow for this quarter was negative $11.5 million, compared to $3.6 million in Q2 2020.As of June 30, 2021, active customers were 2,449, excluding those for Easemob, an increase of 64.8% from 1,486 as of June 30, 2020. Accumulated registered applications were 337,000, steadily growing from 217,000 as June 30, 2020. Regarding China's recent new regulations on the education sector, Tony Zhao, founder, Chairman, and CEO of Agora, said in the earnings call, “We anticipate the new regulation will have a negative impact on our revenue from the China K12 tutoring sector in the near term. It does not, however, change our long-term vision or business fundamentals. K12 academic tutoring is just one of the many use cases of our technology. In fact, online education is here to stay and will grow in the long term. ”“Our commitment to the global education industry remains unchanged. Agora is dedicated to continue to provide technology that enables online learning and make quality education more accessible. To manage the short-term implication, we will be making some adjustments. In China, we will shift our resource previously focused on K12 academic tutoring toward the public school education system and nontraditional academics such as music, art, computer programming, and adult education. We will also continue to strengthen our go-to-market efforts in the U.S., European, and Asia Pacific, where we are seeing tremendous growth momentum and more diversity in demand. " he added.