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agora Agora , Inc. Reports Third Quarter 2021 Financial Results November 15 , 2021 SANTA CLARA , Calif . , Nov. 15 , 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 third quarter ended September 30 , 2021 . -- " We delivered another quarter of strong revenue growth , underpinned by the continued adoption of our real - time engagement platform by developers , " said Tony Zhao , founder , chairman and CEO of Agora . " At our recent RTE 2021 conferences in the United States and China , I was overwhelmed by the enthusiasm from developers around the world for real - time engagement technology , and I'm very excited about the innovative applications they are building with our platform , such as live audio cast , virtual concert and metaverse . In this quarter , we released several important new products , such as the full - path accelerator , and we will continue to expand our product portfolio to empower more real - time engagement possibilities . " Third Quarter 2021 Highlights • Total revenues for the quarter were $ 45.0 million , an increase of 46.0 % from $ 30.8 million in the third quarter of 2020 . • Active Customers as of September 30 , 2021 were 2,564 , excluding those for Easemob , an increase of 41.3 % from 1,815 as of September 30 , 2020 . • Constant Currency Dollar - Based Net Expansion Rate , excluding Easemob , was 104 % for the trailing 12 - month period ended September 30 , 2021 . • Net loss for the quarter was $ 21.1 million , compared to net loss of $ 2.9 million in the third quarter of 2020. After excluding share - based compensation expenses , acquisition related expenses , amortization expenses of acquired intangible assets and income tax related to acquired intangible assets , non - GAAP net loss for the quarter was $ 11.4 million , compared to non - GAAP net income of $ 0.6 million in the third quarter of 2020. Adjusted EBITDA for the quarter was negative $ 9.1 million , compared to $ 1 million in the third quarter of 2020 . • Total cash , cash equivalents and short - term investments as of September 30 , 2021 was $ 767.4 million . • Net cash used in operating activities for the quarter was $ 14.0 million , compared to net cash generated from operating activities of $ 1.9 million in the third quarter of 2020. Free cash flow for the quarter was negative $ 15.6 million , compared to negative $ 5.1 million in the third quarter of 2020 . Third Quarter 2021 Financial Results Revenues Total revenues were $ 45.0 million in the third quarter of 2021 , an increase of 46.0 % from $ 30.8 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 $ 15.7 million in the third quarter of 2021 , an increase of 35.5 % from $ 11.6 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 $ 29.3 million in the third quarter of 2021 , an increase of 52.4 % from $ 19.3 million in the same period last year . Gross margin was 65.2 % in the third quarter of 2021 , an increase of 2.8 % from 62.4 % in the same period last year , primarily due to the implementation of technical and infrastructural optimizations . Operating Expenses Operating expenses were $ 50.4 million in the third quarter of 2021 , an increase of 116.9 % from $ 23.2 million in the same period last year . • Research and development expenses were $ 29.7 million in the third quarter of 2021 , an increase of 138.3 % from $ 12.4 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 $ 1.6 million in the third quarter of 2020 to $ 5.9 million in the third quarter of 2021 , as well as the consolidation of Easemob's research and development team . • Sales and marketing expenses were $ 12.7 million in the third quarter of 2021 , an increase of 99.9 % from $ 6.4 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 third quarter of 2020 to $ 1.3 million in the third quarter of 2021 , as well as higher advertising expenses compared to the prior year . • General and administrative expenses were $ 8.0 million in the third quarter of 2021 , an increase of 81.7 % from $ 4.4