The Critical Moment Of Sound Network: Fight Tencent Ali In The Crack

One year after its listing, sound network has experienced ups and downs.

After listing in June last year, the market value of the company gradually entered a fast running range. At the end of February this year, it once soared to a high of $114.96. On September 17, voice network closed at $29.29, less than half a year from the peak of its market value.

Behind it are the big environmental changes. Sound network is a real-time engagement platform-as-a-service (RTE PAAS) company, which deeply cultivates audio and video real-time interactive track. It provides developers with multiple APIs such as real-time video, audio, message, etc. developers do not need to build their own underlying architecture, but simply call to build a variety of real-time audio and video interaction scenes in the application.

The soaring share price is related to a large amount of audio demand under the quarantine tide after the epidemic. When stock prices fall, fundamentals change.

According to the second quarter report, in the current period, the revenue of sound network was 42.33 million US dollars, with a year-on-year increase of 25%. Among them, the revenue of RTE products was 40.36 million US dollars, accounting for 95.3% of the revenue; The net loss was $15.4 million, compared with $158 million in the same period last year.

According to the financial report, the K12 discipline guidance income of soundnet accounts for 25% of its Q2 total revenue. Considering the impact of the "double reduction" policy on K12 field, it lowered the annual operating revenue guidance of 2021 to 159 million to 161 million US dollars (the previous guidance was 178 million to 182 million US dollars).

Previously, online education was seen as the most predictable source of income for voice networks. In addition, voice network is also facing strong attacks from Alibaba cloud and Tencent cloud.

At present, the technology-based company, which does not fall behind in the competition with giants, has reached a key point.

Diversified business layout

At present, sound network is doing business diversification layout.

It launched agoraappbuilder in June to help developers and creators with no coding experience get rid of an all-in-one video conferencing solution and build custom applications based on their specific use cases and brands.

In July, voice network launched agorasilver, a speech codec based on machine learning, using Al to optimize the transmission quality under harsh network conditions; The "data insight" function of soundnet crystal ball was also officially launched in the same month. Users can trace the overall business consumption and quality data trend six hours ago as soon as possible, and master the quality change every minute.

In response to the short-term impact of the education industry, soundnet has shifted its previous focus on K12 subject education to public school education, quality education and adult education, and continued to strengthen its business development in the United States, Europe and other Asia Pacific regions. At present, the income from the international market accounts for 27% of the total revenue.

By the end of the second quarter, there were nearly 2449 active customers (including those who contributed more than $100 in revenue in the past 12 months, excluding Huanxin), with a year-on-year increase of 64.8% and a month on month increase of 5.4%. In the current period, the training12 month net expansion rate was 110%, and after excluding the impact of the epidemic on the Chinese market, it was 140%; The cumulative number of registered developers on the platform was 3.37 million, with a quarter on quarter growth of more than 30000.

In addition, voice network and HP have reached a cooperation to pre install real-time interactive functions such as voice, video and message for HP omen Game Book: cooperate with the leading e-commerce platform in Southeast Asia to introduce interactive shopping function into its user group; It cooperates with castbox, the largest third-party podcast platform in the United States, to realize interactive comment area, community and audio live broadcast based on content.

Online karaoke room is another big attraction of sound network. Its music copyright comes from mobile's Migu music.

According to the scene solution of online karaoke room released by sound network, developers and enterprises can access legitimate music library, karaoke components and scene functions in one-stop way, and quickly build online karaoke room, which is widely used in various social pan entertainment scenes such as online music, chat room, live broadcast, video dating, etc.

Its selling points include integration of 200000 + genuine music library, modular components, 64ms low delay real-time chorus, self-developed audio engine, etc.

Wang Qi, product director of sound network pan entertainment industry, explained to 21st century economic reporter that from the perspective of business model, there is no extra charge for online kgo room solution. However, in terms of copyright, it cooperates with Migu and charges according to the number of music calls. "The audio and video transmission part is charged according to the minute, and the music is charged according to the number of calls," Wang said.

In addition, Wang Qi also admitted that the cashing effect of online karaoke room is limited, and more hope that it can enhance user stickiness.

Another voice network personage disclosed that the development of online karate business is not from the "double reduction" policy pressure.

"I was making an online karaoke room before the double reduction," he said.

Key technologies of market segmentation

It is worth noting that in addition to business pressure, sound network is also facing a strong attack from giants.

The main competitors of voice network in China include Tencent cloud, Alibaba cloud and other IAAs & PAAS service providers, among which Tencent cloud is the most competitive; Overseas competitors are mainly twillio.

The business segment of giants covers a wide range, mainly including interactive live broadcast and video conference. The main advantages include a full set of cloud product portfolio, a wide range of customer groups, strong channel and bundle sales advantages, low IAAs cost, etc.

In September, Tencent music launched the live music service system "sonic engine". According to its disclosure, the system through copyright music library self-service settlement, authorization fees real-time sub account, to protect the rights and interests of upstream copyright owners. This product is partly identical to the existence of sound networks.

In the face of competition, the voice network appears confident.

"Real time communication (RTC) is used in the whole system The market is far from the stage of fierce competition, because the volume of RTC is far from the level it should be, and the scale has not yet come up. During the epidemic period, we were forced to have some early education, but after the epidemic, there was a certain degree of decline. After this part of the market will gradually increase. Really, the fierce competition should be that after the demand reaches the peak, it begins to decline and then stabilize Process. Mature period, is a very competitive period. "Wang Qi from the general situation analysis.

The sound network barrier lies in having the key technology of market segmentation, and the architecture advantage is behind it. "We have a lot of mid waist customers and always emphasize TOD (develop for developers) The company. And the giant function open, different technology, the threshold is not the same. RTC threshold is very high. Just like real-time chorus technology, it requires enough attention. And the giant, also want to do TOD business, but each TOD subdivision module is allocated to a very limited number of people. I was also in a giant company before, the team is dozens of small, with the voice network is not an order of magnitude. The investment will be very affected Limit, will be very strict to see the input-output ratio. "Wang Qi said.

Zhu Chaohua, head of sound network's product market, even told reporters of the 21st century economic report that sound network is the "real horse" of RTC track.

"This is a technology intensive market. Even if the giants want to invest in some people, they can't find those people. From the perspective of voice network, our technology accumulation is very deep, in this field, the industry with the highest concentration of talents. To do real-time audio and video, we should go to the voice network, just like a saying in football, the best player enters Real Madrid. Different fields have different attention, he even Want to recruit 1000, 10000 people, no, "said Zhu Chaohua.

CSCI also agreed with the technical advantages of voice network, but said that the risk of price war still exists.

Generally speaking, it is not easy for sound networks to grow independently in the market segments under the powerful giants.

It also shows the market another possibility.