Key Takeaways:
Deepexi's revenue grew 70% last year, as its newer FastAGI data analytics product accounted for 61% of the total just two years after its launch
The company's stock has been very volatile in the five months since its IPO, showing investors are having difficulty valuing an emerging field of pure-play AI agent operators
The maiden annual results report from Deepexi Technology Co. Ltd. (1384.HK) is showing just how quickly things change in the fast-evolving world of AI agents, as a product it rolled out just over two years ago has suddenly become its main breadwinner. The report is also showing how it could be difficult for companies like Deepexi to remain independent, making them likely acquisition targets, if they can manage to find buyers.
If they can't get acquired, such companies could easily end up on the scrapheap of early AI movers that failed to take off in this fast-changing landscape. One of the earliest cases of a major merger in the AI agent space came last December from Manus, which agreed to be acquired by Facebook parent Meta (META.US) for $2 billion just three years after its founding.
Deepexi is still a little smaller than Manus, based on its latest market cap of HK$12 billion ($1.53 billion). But we should point out that Deepexi was worth much more just a month ago, when Hong Kong investors valued it at about $4.5 billion, or triple its current value. Such widely gyrating valuations since Deepexi's IPO last October show just how much difficulty investors are having valuing this kind of company.
Its latest results, published last Friday, showed, to some extent, why investors are having so much difficulty. The company reported its revenue grew 71% last year to 415 million yuan ($60 million) from 243 million yuan a year earlier. That looks relatively healthy at first glance.
But some further investigation shows it's a slowdown from the 88% growth it reported in 2024. What's more, some number crunching using previously published data from the first half of last year shows the ...
