Tony Zhao: Sure. The status for both Shengwang and Agora for our growth side, I think the growth of global market overall, I’m optimistic about demand in midterm to long term. I think one big factor is the pandemic actually really changed consumer behaviors. Before the pandemic, the only scenario where people use real-time audio-video is basically web conferencing. The U.S. market, people are not that get used or familiar with all other use cases like co-working, experience, et cetera. Now after pandemic, although in some of the use cases, the volume decreased, but consumers are more adapt to all type of real-time engagement activities online, such as shopping with live conversations and relating with live sessions online, or co-working or watch party.
I think the overall, those consumer behavior change can help us to see a lot of growth in both use cases and volume. Meanwhile, the macro environment is still challenging, but it is for all companies operating in this market. As a matter of fact, we actually see some small competitors start to run into financial difficulties. For 2024, our goal is to stabilize our existing business and grow into new regions and new use cases. In China market, a lot of macro and regulatory headwinds, as you probably already know, but usage of our platform continue to grow. Our market share in new adoptions also increased nearly 20% this year. And our digital transformation business serving large enterprise also grew more than 50% this year. For 2024, we expect our digital transformation business to continue to grow, and our goal for the Internet business is to further gain market share.
And on the question about the demand and the pricing for Agora’s market, our number of customers continue to grow at about 25%, as I mentioned earlier. Also, we see some more use cases start to emerge into growth mode such as live shopping. And I also mentioned the consumer behavior change actually give us hope that there will be more growth potential in both use cases and volume. Overall, the challenging environment is still there. And those in the near term still impact the operation, but a lot of potentials in the medium- to long-term time frame. Pricing-wise, more pressure in emerging markets but price has been healthy and stable in developed market. In China, overall, demand stable — demand is stable from Internet customers, with some bright spots such as online karaoke and premium broadcasting streaming products.
We see strong demand from digital transformation side, as I mentioned. Pricing in Internet sector generally dropped about 10% each year, but our gross margin remains healthy. Pricing in digital transformation is also more attractive in this market.
Operator: Next, we have Daley Li from BofA Securities.
Daley Li: I have got one question about the AI. You mentioned there’s more application scenarios for the AI like AI assistant, AI tutor et cetera. And when do you think the AI can really have more meaningful revenue contribution of our business or in which application do you think which have — could have much potential to drive our business growth in the future?
Tony Zhao: Yes, you’re right. As I also talked about, there are many potentials in all sorts of use cases like AI companions, AI game players, et cetera. However, as I also mentioned, we rolled out this AIGC RTE SDK module in the last few months. We do have optimistic view of those potentials, just in a very basic concept, there’s going to be much more real-time audio/video traffic among not just humans but between human and AI models. That’s for long-term future. However, the development is still undergoing. I think there’s a lot of since the need to figure out for large language model to be able to really act as a human-like personas like the AI companion or player in certain games. That’s where we work hard with a lot of our customers and partners together to try to bring it to real life, and I don’t want to overestimate in near term of such growth.
This is really like in the stage that we and our customers and partners trying to validate and break through into each and every use case in the next few quarters.
Operator: [Operator Instructions] There are no further questions. Thank you, everybody, for attending this company’s call today. As a reminder, the recording in the earnings release will be available on the company’s website at investor.agora.io. And if there’s any questions, please feel free to e-mail the company. Thank you, and have a great day.
Tony Zhao: Thank you.
