Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA), the UAE-based leading voice-centric social networking and entertainment platform in the Middle East and North Africa (MENA), today announced a record revenue of AED 839.1 ($228.5 million) in the first nine months of 2022.
According to Yalla’s latest quarterly financial results, the company has also seen a significant growth in the third quarter revenues, hitting AED 294.0 million ($80.1 million), a significant increase of 12.3% compared to the same quarter of 2021, which reflects the company’s strong financial performance thanks to the continued momentum in its business.
Yalla has also posted a net income of AED 89.7 million (US$24.4 million) while the non-GAAP net margin remained exceptionally high at 36.7%, highlighting its strong monetization capabilities and disciplined SG&A spending. Additionally, the average MAUs increased by 19.1% to 30.9 million in the third quarter of 2022 from 25.9 million in the third quarter of 2021. Meanwhile, the number of paying users on Yalla platform increased by 50.3% to 11.5 million in the third quarter of 2022 from 7.7 million in the third quarter of 2021.
Speaking on the occasion, Mr. Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla said: “We are delighted to report another strong quarter with record-setting revenue in the third quarter of 2022. Our revenue reached a new high for the third consecutive quarter and once again beating the upper end of our guidance.
This exceptional performance was fueled by our relentless efforts to refine operational processes, optimize user acquisition and further develop our product monetization. During the quarter, we continued to enhance our product portfolio with gamification and entertainment features to comprehensively strengthen user engagement, resulting in an increase in our group’s average MAUs”.
“Alongside our ongoing efforts to promote our flagship applications, we made meaningful progress on our new initiatives during the third quarter. Notably, we rolled out the beta version of our first hard-core mobile game, “Merge Kingdom,” a milestone for Yalla Game, our mid- and hard-core mobile game distribution business. We also iterated our IM product, YallaChat, releasing version 1.3 with more engaging localized functions as well as a Yalla Ludo mini program to further boost product synergies and enhance user stickiness,” Tao added.
For his part, Saifi Ismail, Group President at Yalla Group, expressed his satisfaction with the remarkable growth in Yalla’s revenues, attributing this success to the company’s innovative approach being adopted together with its proactive planning, something which contributed to further expanding its user base.
He stressed that Yalla will remain committed to augmenting its ecosystem and delivering compelling user experiences to fulfill users’ diverse demands and provide the people of MENA with better access to a digital life. Through hard work and dedication, we are drawing ever closer to realizing our vision of becoming MENA’s most popular destination for online social networking and entertainment.
Ismail emphasized that Yalla’s businesses continued to thrive in the third quarter, underpinned by solid fundamentals and quality growth, adding that the group’s record-high third quarter revenue also reflected an accelerating growth rate, demonstrating our effective growth strategy and outstanding monetization capabilities.
COMMENTS