Shares of Agora (NASDAQ:API) were slammed on Tuesday. The stock fell as much as 19%, but was down 7% by the time the market closed.
Though the tech stock did report earnings after market close on Monday, shares are likely down primarily because of a broader market sell-off in tech on Tuesday -- not because of earnings.
Agora, a provider of a cloud platform that developers use to build video and voice engagement functionalities into their applications, reported fourth-quarter revenue of $33.3 million, up 74% year over year. Active customers rose from 1,041 in the fourth quarter of 2019 to 2,095.
"We closed the year with solid fourth quarter results, which demonstrate the power of contextual real-time engagement and our developer-first business model," explained Agora CEO and Chairman Tony Zhao in the company's earnings release. "We are happy to see that Agora powers some of the most exciting innovations and new experiences on the internet."
The stock was likely down simply because many growth stocks like Agora fell sharply on Tuesday. The tech-heavy Nasdaq Composite fell 0.5% on Tuesday, but many growth stocks were down several percentage points or more.
Agora is optimistic about 2021. Zhao told investors that the company plans to continue investing in "product and technology innovation to solidify our position as the go-to platform for real-time engagement APIs."
Management guided for total 2021 revenue to be between $178 million and $182 million, up from $133.6 million in 2020.