Xu Yue

Xu Yue from China Securities Co. asked about the future gross profit margin trend for Agora's AI products, given the current drag from AI investment. She also inquired about the growth trajectory for AI toys and customer service verticals, specifically whether an inflection point for adoption has been observed in these areas.

Answer

Jingbo Wang, CFO, stated that Conversational AI products have significant margin potential, expected to be similar to or higher than core RTE products at normal scale and utilization, with current low margins attributed to suboptimal scale and ongoing POCs. He anticipates adoption to grow throughout the year, noting that while the technology is fundamentally ready, use case adaptation and engineering for corner cases will take time. He confirmed that the solution is already working in several use cases like companionship clients and outbound calling, and that decreasing model costs are not a blocking factor.