What happened

Shares of Agora (NASDAQ:API) have plunged today, down by 14% as of 12:05 p.m. EST, after the company reported third-quarter earnings. The results were mixed compared with analyst expectations. This was Agora's second earnings release as a public company after following its IPO over the summer.

So what

Revenue in the third quarter increased 81% to $30.8 million, which topped the consensus estimate of $27.4 million in sales. That resulted in a net loss of approximately $2.9 million, or $0.03 per American depository share (ADS). The China-based technology company, which operates a real-time engagement platform, saw active customers nearly double to 1,815 during the quarter. Agora reported a dollar-based net expansion rate of 188% on a constant currency basis.

Red stock chart going down

Image source: Getty Images.

"Agora is empowering software developers around the world to bring contextual video engagement to more and more online activities, such as taking a class or exam, attending a virtual event, meeting new friends and competing in a game," CEO Tony Zhao said in a statement. "Such innovations are far beyond traditional video conferencing and still have a long way to go."

Now what

In terms of guidance, Agora expects full-year revenue to be in the range of $125 million to $130 million, unchanged from the last earnings report in August. That forecast is mostly in line with the $127.4 million in revenue that Wall Street is looking for in 2020. Agora warned that it continues to face macroeconomic uncertainties related to the COVID-19 pandemic.

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