This presentation contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers about the future. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in th ...

Core Insights - Yala Technology (YALA.US), the largest online social network and gaming company in the MENA region, reported its Q3 financial results for the period ending September 30, 2025, showing a revenue of $89.6 million, a year-over-year increase of 0.8%, exceeding market expectations [1] - The company achieved a Non-GAAP diluted earnings per share of $0.23, compared to $0.22 in the same period last year, with a net profit of $40.7 million, reflecting a 3.9% year-over-year growth and a net profit margin of 45.4% [1] - Revenue contributions for Q3 included $55.5 million from chat services and $33.8 million from gaming services, while cost of revenue decreased by 10.7% to $28.4 million [1] Financial Performance - As of September 30, 2025, the company reported cash and cash equivalents along with short-term investments totaling $739.5 million [1] - The company has repurchased $51.9 million in American Depositary Shares (ADS) in 2025, bringing the total repurchase amount to $101.4 million [1] - For Q4 2025, Yala Technology expects revenue to be between $78 million and $85 million, while analysts' average expectation is $88.7 million [1] User Metrics - Average monthly active users (MAU) grew by 8.1% to 43.4 million, while the number of paying users decreased by 9.7% to 11.4 million [1]

Core Insights - Yalla Group Limited reported strong financial results for Q3 2025, with revenues of US$89.6 million, a 0.8% increase from US$88.9 million in Q3 2024, driven by a broader user base and enhanced monetization capabilities [10][17] - The company achieved a net income of US$40.7 million, reflecting a 3.9% increase year-over-year, with a net margin of 45.4%, up 1.4 percentage points from the previous year [6][23] - Average monthly active users (MAUs) increased by 8.1% year-over-year to 43.4 million, while the number of paying users decreased by 9.7% to 11.4 million [17] Financial Performance - Revenues from chatting services were US$55.5 million, while revenues from gaming services were US$33.8 million in Q3 2025 [11] - Total costs and expenses decreased by 1.0% to US$55.9 million, with a notable 10.7% reduction in cost of revenues to US$28.4 million [12][13] - Selling and marketing expenses rose by 30.3% to US$9.6 million, attributed to increased advertising and user acquisition efforts [14] Non-GAAP Measures - Non-GAAP net income for Q3 2025 was US$43.1 million, a 1.2% increase from US$42.6 million in Q3 2024, with a non-GAAP net margin of 48.1% [24] - Non-GAAP operating income increased to US$36.2 million, a 0.7% rise from US$35.9 million in the same quarter last year [19] Shareholder Returns - The company returned US$51.9 million to shareholders through its share repurchase program in 2025, with a total of US$150 million planned for the current program [9][28] - As of November 7, 2025, Yalla had completed cash repurchases of approximately US$101.4 million since the inception of the program [28] Future Outlook - For Q4 2025, Yalla expects revenues to be between US$78.0 million and US$85.0 million, based on current market conditions [29]

Core Insights - Yalla Group Limited, the largest MENA-based online social networking and gaming company, will report its unaudited financial results for Q3 2025 on November 10, 2025, after U.S. market close [1][2]. Company Overview - Yalla Group Limited operates two main mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming app featuring online board games popular in MENA [3]. - The company has expanded its offerings through its subsidiary, Yalla Game Limited, focusing on mid-core and hard-core games in the MENA region, leveraging local expertise to provide innovative gaming content [3]. - Yalla's ecosystem includes additional products like YallaChat, an IM product for Arabic users, and WeMuslim, which supports Arabic customs, along with casual games designed to foster local gaming communities [3]. - The company is also exploring opportunities outside MENA with Yalla Parchis, a Ludo game aimed at South American markets [3].

Core Insights - Yalla Technology (YALA) experienced a stock price increase of 2.31%, reaching $7.97 per share, with a total market capitalization of $1.256 billion as of August 25 [1] - For the fiscal year ending June 30, 2025, Yalla reported total revenue of $168 million, reflecting a year-over-year growth of 5.32%, and a net profit attributable to shareholders of $73.86 million, which is a 16.8% increase compared to the previous year [1] Company Overview - Yalla Group Limited is the largest voice-centric social network and entertainment platform in the Middle East and North Africa (MENA) region [2] - The company operates two flagship mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming app featuring online board games, which are popular in the MENA region [2] - Yalla has expanded its content offerings to create a region-focused integrated ecosystem that caters to the evolving online social networking and entertainment needs of users in MENA [2] Product and Market Expansion - The ecosystem includes YallaChat, an instant messaging product tailored for Arabic users, and Waha, a social networking product designed for the metaverse [2] - Yalla also offers games like Yalla Baloot and 101 Okey Yalla, aimed at maintaining a vibrant local gaming community [2] - The company is actively exploring markets outside the MENA region, launching a Ludo game called Yalla Parchis targeted at the South American market [2] User Engagement and Community Building - Yalla's mobile applications provide a seamless experience that fosters loyalty and a sense of belonging among users [2] - The company emphasizes attention to detail and localization to build a highly engaged and participatory user community that resonates deeply with its audience [2] - Through its subsidiary Yalla Game Limited, the company has enhanced its distribution capabilities for core and hardcore gaming in the MENA region, leveraging local expertise to deliver exciting new content to users [2]

Core Insights - Yalla Technology (YALA) experienced a 2.03% increase in stock price, reaching $7.775 per share, with a total market capitalization of $1.225 billion as of August 19 [1] - For the fiscal year ending March 31, 2025, Yalla reported total revenue of $83.8768 million, reflecting a year-over-year growth of 6.54%, and a net profit attributable to shareholders of $37.0914 million, which is a 17.4% increase compared to the previous year [1] - Yalla Technology is set to release its fiscal year 2025 mid-term report on August 11, after market hours [1] Company Overview - Yalla Group Limited is the largest voice-centric social network and entertainment platform in the Middle East and North Africa (MENA) region [2] - The company operates two flagship mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online tabletop games [2] - Yalla has expanded its content offerings to create a region-focused integrated ecosystem that caters to the evolving online social networking and entertainment needs of users in MENA [2] Product and Market Expansion - The ecosystem includes YallaChat, a messaging product tailored for Arabic users, and Waha, a social network designed for the metaverse [2] - Yalla also offers games like Yalla Baloot and 101 Okey Yalla, aimed at maintaining a vibrant local gaming community [2] - The company is actively exploring markets outside the MENA region, launching a Ludo game called Yalla Parchis targeted at the South American market [2] User Engagement Strategy - Yalla's mobile applications provide a seamless experience that fosters loyalty and a sense of belonging among users [2] - The company emphasizes attention to detail and localization to build a highly engaged and participatory user community [2] - Through its subsidiary Yalla Game Limited, Yalla has enhanced its distribution capabilities for core and hardcore games in the MENA region, leveraging local expertise to deliver exciting new content [2]

Core Viewpoint - Yala Technology, a leading social media and gaming company in the Middle East and North Africa, is set to launch its first two core games this quarter, with plans for additional self-developed and licensed games by year-end, aiming to tap into the hardcore gaming market and drive revenue growth [2][3]. Group 1: Company Strategy and Developments - Yala Technology has been preparing for over a year to enter the hardcore gaming sector, targeting players willing to invest significantly in games [3]. - The company reported over 42.4 million monthly active users (MAU) as of June, leveraging its chat services and casual games to attract users [3]. - Yala plans to release two "match-3" style core games this quarter, with a focus on differentiated user segments, and a self-developed "rogue-lite" game in Q4 [6][7]. - The company is also collaborating with third-party developers to introduce games through licensing agreements, indicating initial success in this strategy [6]. Group 2: Financial Performance - Yala's revenue for the second quarter reached $84.6 million, a 4.1% increase from $81.2 million year-over-year, with casual games contributing significantly to this growth [6][7]. - The company experienced a 17% increase in casual game revenue, reaching $30.7 million, marking the highest growth since Q4 2023 [6]. - Net profit for the quarter grew by 16.4% to $36.5 million, with a net profit margin increase of 4.6 percentage points to 43.2% [7]. - Yala has initiated an aggressive share buyback program, having completed $41 million of its $50 million target for the year, which is seen as a key support for its recent stock price [7]. Group 3: Market Reaction and Valuation - Yala's stock price has more than doubled since March, reflecting investor optimism regarding its new core gaming strategy [2][5]. - Following the earnings report, the stock experienced a 4% decline, indicating investor anticipation for the upcoming core games [5]. - Despite the recent surge, Yala's American Depositary Shares (ADS) trade at a price-to-earnings (P/E) ratio of around 10, which is lower than comparable companies like Pinterest at 12 and NetEase at 19, suggesting potential for further stock price appreciation if new games perform well [5].

Core Viewpoint - Yalla Group reported strong financial performance in Q2 2025, exceeding revenue expectations and enhancing profitability [2][5][6] Financial Performance - In Q2 2025, Yalla Group achieved revenue of $84.564 million, with social services contributing $53.635 million and gaming services $30.650 million [5] - The net profit for the quarter was $36.502 million, representing a year-over-year growth of 16.4%, with a net profit margin of 43.2%, an increase of 4.6 percentage points year-over-year [5][6] Operational Efficiency - The company's strong performance was attributed to effective execution by the team, strict cost control, and operational efficiency improvements [6] - Yalla Group has accelerated its stock repurchase plan, having repurchased 6,230,299 shares for a total of $41 million by June 30, 2025, reflecting confidence in future growth potential [6] Product Development and Market Strategy - The company is focused on product innovation and operational optimization, aiming to become the most popular online social and entertainment platform in the MENA region [6] - Yalla Group plans to launch two match-3 games in Q3 and a roguelike game in Q4 2025, along with preparations for a co-published heavy game [6] Future Revenue Guidance - For Q3 2025, Yalla Group expects revenue to be between $78 million and $85 million [7]

Market Overview - US stock index futures are all down before the market opens, with Dow futures down 0.05%, S&P 500 futures down 0.07%, and Nasdaq futures down 0.06% [1] - The German DAX index is down 0.49%, while the UK FTSE 100 is up 0.07%, and the French CAC40 is up 0.10% [2][3] - WTI crude oil is down 0.69% at $63.52 per barrel, and Brent crude oil is down 0.51% at $66.29 per barrel [3][4] Economic Data and Inflation - The US July Consumer Price Index (CPI) is set to be released, with expectations of a year-on-year increase of 2.8%, up from 2.7% in June [4][5] - Core CPI, excluding food and energy, is expected to rise to 3.0% year-on-year, indicating persistent inflation pressures [4][5] Corporate Earnings and Stock Buybacks - US companies are projected to repurchase over $1.1 trillion in stock this year, with $983.6 billion already announced [6] - Major companies leading the buyback trend include Apple, Alphabet, JPMorgan Chase, Bank of America, and Morgan Stanley [6] Federal Reserve and Interest Rates - There is speculation that the Federal Reserve may cut interest rates twice by 25 basis points this year, with some investors betting on a 50 basis point cut in September [5] - The selection process for the next Federal Reserve Chair is intensifying, with candidates including Michelle Bowman, Philip Jefferson, and Lori Logan [7] Trade Policies and Tariffs - Goldman Sachs warns that 70% of the costs from tariffs imposed by President Trump are being passed on to US consumers, with the burden expected to increase [7] - The US and China have agreed to pause the implementation of 24% tariffs for 90 days, while retaining 10% tariffs on certain goods [8] Company-Specific News - Sea Ltd reported Q2 revenue of $5.26 billion, a 38.2% year-on-year increase, driven by strong performance in e-commerce and digital financial services [9] - Circle's Q2 revenue increased by 53% to $658 million, with a net loss of $482 million primarily due to IPO-related expenses [10] - Smithfield Foods reported a Q2 sales increase of 11% to $3.79 billion, driven by strong demand for packaged meat products [11] - Tencent Music's Q2 revenue grew by 17.9% to 8.44 billion yuan, with online music service revenue increasing by 26.4% [12] - Pony.ai's Q2 revenue surged by 75.9% to 215 million USD, with a significant increase in Robotaxi passenger fare income [13] - Yalla Technology's Q2 revenue was $84.6 million, slightly below expectations, with a 7% decline in paid user numbers [14] Regulatory and Legal Developments - Elon Musk has criticized Apple for allegedly favoring OpenAI in the App Store, indicating potential legal action [15] - President Trump is considering allowing Nvidia and AMD to export downgraded AI chips to China, with a 15% revenue share for the US government [16]

Financial Performance - Revenues for the second quarter of 2025 were US$84.6 million, a 4.1% increase from US$81.2 million in the second quarter of 2024[7][11] - Net income increased by 16.4% to US$36.5 million in the second quarter of 2025, compared to US$31.4 million in the same period last year, with a net margin of 43.2%[22][7] - Non-GAAP net income was US$39.4 million in the second quarter of 2025, an 11.7% increase from US$35.2 million in the second quarter of 2024[23][7] - Yalla Group Limited reported revenues of $84,564,086 for the three months ended June 30, 2025, representing a 15.4% increase compared to $73,300,000 in the same period last year[45] - The company achieved a net income of $36,502,430 for the three months ended June 30, 2025, up from $31,643,854 in the same period last year, reflecting a growth of 15.4%[45] - Non-GAAP operating income for the three months ended June 30, 2025, was $33,465,432, compared to $29,621,769 for the same period last year, indicating an increase of 13.1%[47] User Metrics - Average monthly active users (MAUs) rose by 8.8% to 42.4 million in the second quarter of 2025 from 39.0 million in the second quarter of 2024[6][11] - The number of paying users decreased by 7.0% to 11.2 million in the second quarter of 2025 from 12.0 million in the second quarter of 2024[6][7] Costs and Expenses - Total costs and expenses were US$53.9 million in the second quarter of 2025, a 4.6% increase from US$51.6 million in the second quarter of 2024[13] Cash and Assets - Cash and cash equivalents as of June 30, 2025, were US$704.1 million, up from US$656.3 million as of December 31, 2024[26] - Total current assets increased to $735,489,670 as of June 30, 2025, from $691,702,024 as of December 31, 2024, showing a growth of 6.3%[43] - The company’s cash and cash equivalents stood at $342,981,483 as of June 30, 2025, down from $488,379,894 as of December 31, 2024, a decrease of 29.8%[43] - Yalla Group Limited's total liabilities decreased to $96,820,245 as of June 30, 2025, from $103,822,653 as of December 31, 2024, a reduction of 6.8%[43] - The company’s total shareholders' equity increased to $743,626,074 as of June 30, 2025, compared to $704,352,124 as of December 31, 2024, reflecting a growth of 5.6%[43] Earnings Per Share - Yalla Group Limited's basic earnings per share for the three months ended June 30, 2025, was $0.24, compared to $0.20 for the same period last year, an increase of 20%[45] Product Development and Expansion - The company plans to release two Match-3 titles in Q3 2025 and a roguelike game in Q4 2025, expanding its product portfolio[9] - The company is actively expanding its product offerings, including YallaChat and WeMuslim, to cater to the evolving needs of MENA users[38] - Yalla Group Limited is exploring opportunities outside of MENA with the launch of Yalla Parchis, targeting the South American market[38] Future Outlook - For Q3 2025, the company expects revenues to be between US$78.0 million and US$85.0 million[30] - The company repurchased 6,230,299 shares for approximately US$41.0 million in the first half of 2025, reflecting confidence in future growth[10][29]