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agora Agora , Inc. Reports Second Quarter 2021 Financial Results August 9 , 2021 SANTA CLARA , Calif . , Aug. 09 , 2021 ( GLOBE NEWSWIRE ) Agora , Inc. ( NASDAQ : API ) ( " Agora " ) , a pioneer and leading platform for real - time engagement APIs , today announced its financial results for the second quarter ended June 30 , 2021 . -- " We have been a public company for one year now . Looking back at the past year , we are very proud to have helped people around the world stay connected during this challenging period . Together with developers on our platform , we are changing the way people work and study , and how people play and live their lives , " said Tony Zhao , founder , chairman and CEO of Agora . " I would like to thank our developers , customers , and partners for their trust in Agora . We will continue to invest in enabling meaningful human connections and creating more real - time engagement possibilities . " Second Quarter 2021 Highlights • Total revenues for the quarter were $ 42.3 million , an increase of 24.9 % from $ 33.9 million in the second quarter of 2020 . • Active Customers as of June 30 , 2021 were 2,449 , excluding those for Easemob , an increase of 64.8 % from 1,486 as of June 30 , 2020 . • Constant Currency Dollar - Based Net Expansion Rate , excluding Easemob , was 110 % for the trailing 12 - month period ended June 30 , 2021 . • Net loss for the quarter was $ 15.4 million , compared to net income of $ 3.0 million in the second quarter of 2020. After excluding share - based compensation expense , acquisition related expenses , amortization expense of acquired intangible assets and income tax related to acquired intangible assets , non - GAAP net loss for the quarter was $ 5.8 million , compared to the non - GAAP net income of $ 5.8 million in the second quarter of 2020. Adjusted EBITDA for the quarter was negative $ 7.3 million , compared to $ 6.9 million in the second quarter of 2020 . • Total cash , cash equivalents and short - term investments as of June 30 , 2021 was $ 826.6 million . • 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 the second quarter of 2020. Free cash flow for the quarter was negative $ 11.5 million , compared to $ 3.6 million in the second quarter of 2020 . Second Quarter 2021 Financial Results Revenues Total revenues were $ 42.3 million in the second quarter of 2021 , an increase of 24.9 % from $ 33.9 million in the same period last year , primarily due to increased usage of our video and voice products as a result of our business expansion and usage growth in emerging use cases . Cost of Revenues Cost of revenues was $ 16.5 million in the second quarter of 2021 , an increase of 44.8 % from $ 11.4 million in the same period last year , primarily due to increase in bandwidth and co - location costs and depreciation of servers and network equipment as we continue to scale our business . Gross Profit and Gross Margin Gross profit was $ 25.9 million in the second quarter of 2021 , an increase of 14.8 % from $ 22.5 million in the same period last year . Gross margin was 61.1 % in the second quarter of 2021 , a decrease of 5.3 % from 66.4 % in the same period last year , primarily due to international expansion to regions with higher infrastructure costs and capacity expansion in anticipation of future usage growth . Operating Expenses Operating expenses were $ 45.3 million in the second quarter of 2021 , an increase of 123.9 % from $ 20.2 million in the same period last year . • Research and development expenses were $ 27.0 million in the second quarter of 2021 , an increase of 147.3 % from $ 10.9 million in the same period last year , primarily due to increased personnel costs as we continue to build our research and development team , including an increase in share - based compensation from $ 1.2 million in the second quarter of 2020 to $ 5.4 million in the second quarter of 2021 , as well as the consolidation of Easemob's research and development team . • Sales and marketing expenses were $ 11.0 million in the second quarter of 2021 , an increase of 86.2 % from $ 5.9 million in the same period last year , primarily due to increased personnel costs as we continue to build our sales and marketing team , including an increase in share - based compensation from $ 0.5 million in the second quarter of 2020 to $ 1.3 million in the second quarter of 2021 , as well as higher advertising expenses compared to prior year . • General and administrative expenses were $ 7.3 million in the second quarter of 2021 , an increase of 114.1 % from $ 3.4 million in the same period last year , primarily due to increased personnel costs as we continue to build our administration