A：Agora Inc's first quarter 2025 Financial Results include second consecutive quarter of GAAP profitability, driven by double-digit revenue growth year over year on a comparable basis and disciplined cost management. Total revenue was $33.3 million, up 12% year over year, and GAAP non-profit more than doubled from the previous quarter. The company ended Q1 with more than 600,000 active customers for Agora and close to 400,000 for shengwang, representing a 5% increase compared to one year ago.

A：Agora's conversational AI engine can significantly impact education by boosting student engagement with personalized content and adaptive practice. An example of its application in education is seen with ad tech customers like Dou Sheng AI in China, who are developing AI-powered language tutoring products.

A：The purpose of Agora's conversational AI device kit is to enable device manufacturers to add conversational AI to any IoT devices, such as toys, robotics, and smart speakers, by providing a turnkey IoT module that combines software-as-a-service and high-performance chips. This solution aims to reduce upfront R&D costs and time to market for device manufacturers.

A：Agora's open source project 'Ten' has gained significant traction, recording 6000 GitHub stars and being the fastest-growing project in its category globally. Cloud providers like AWS and Oracle Cloud are providing support for deploying Ten on their infrastructure. As part of its contributions, Agora has launched voice activity detection and turn detection modules for the project, demonstrating a commitment to the community and the conversational AI ecosystem.

A：For the first quarter of 2025, Agora's total revenues reached $33.3 million, exceeding the high end of the guidance range on a year-over-year basis. Revenue growth accelerated to 12% from 3% in the prior quarter. The revenue growth is attributed to a clear pickup in business momentum. Gross margin for the first quarter was 68%. Excluding certain end-of-sale products, the gross margin of continuing business increased 1.4% year over year and 6% quarter over quarter. Operating expenses decreased significantly due to a restructuring effort in November, resulting in a 6.1 million reduction from the previous year.

A：Sales and marketing expenses were 18.7% of total revenues in the current quarter compared to 20.5% in Q1 last year. In Q1, the expenses were $6.2 million, which decreased 25.6% year over year.

A：Operating cash flow was $17.6 million in the current quarter compared to negative $38.8 million last year. This positive cash flow included $38.8 million in interest proceeds from the maturity of bank deposits and financial products issued by banks.

A：The share repurchase program approved in February 2022 aims to create shareholder value. As of the end of Q2, the company has repurchased over $8 million worth of shares, with a total of 116.4 million worth of shares repurchased since the program's initiation.

A：The current expectation is for total revenues to be between $33 and $35 million in the second quarter of 2025, compared to $30.9 million in the second quarter of 2024, representing a year-over-year growth rate of 6.8% to 13.33%.

A：Key areas seeing more AI application include companion toys and edge AI devices. Future growth drivers in the AI space could be further explored in these areas, especially as the larger language model becomes more powerful and AI integration increases.

A：The company has a strong presence in China and is now also gaining traction in North America and Europe. In the global market, the growth rate has been about 18%, and the demand is solid with potential for further penetration. The pricing has been relatively stable in more developed markets, with the exception of certain Asian markets. The company expects demand recovery on several fronts including social entertainment, with more positive pricing and demand trends compared to previous years.

A：The company's strategy for its overseas e-commerce business involves capitalizing on the growing popularity of live shopping and interactive features in e-commerce, especially in emerging markets. The details of the company's strategy and current traction in this area were not provided in the transcript.

A：The shifts observed in the downstream demand for AI power and real-time interaction capabilities were not explicitly detailed in the transcript, but the company's focus is on these capabilities as part of the broader AI landscape.

A：Product market fit is crucial for growth and value creation for customers. It involves a deep dive into the vertical use case to build a good product that provides a smooth and compelling customer experience. Achieving product market fit is key to unlocking significant growth and value for the customer base.

A：The timing for the massive adoption of conversational AI is influenced by the maturity of product market fit for specific use cases. Each industry has different needs and knowledge houses which determine the product market fit for each use case. The tipping point will be reached gradually as each industry's specific use cases mature, resulting in significant growth for those products and expansion to similar providers. It is anticipated that hundreds of different products will reach the tipping point over time.

A：China is a highly competitive market with major cloud providers having entered and exited the market, resulting in a situation where only one player remains with significant market share. The market has seen consolidation, with fewer players becoming more specialized and important. The company's strategy to deal with competition is to focus on higher-value use cases with higher margins and continue technical optimization to maintain stable gross margins. The focus on high-value cases and ongoing technical improvements are part of the strategy to sustain competitive positioning and margins.