Yalla Group Limited (NYSE:YALA) Q4 2023 Earnings Conference Call March 11, 2024 8:00 PM ET Corporate Participants Kerry Gao - IR Manager Tao Yang - Chairman and Chief Executive Officer Saifi Ismail - President Jianfeng Xu - Chief Operating Officer Karen Hu - Chief Financial Officer Conference Call Participants Chang Ho Lee - CICC Xu Qiang Song - CICC Kaifang Jia - CIPIC Xiaoyue Hu - Haitong International Lincoln Kong - Goldman Sachs Operator Good morning and good evening ladies and gentlemen. Thank you for ...

Financial Data and Key Metrics - Q3 2023 revenues reached an all-time high of $85 2 million, a 6 4% increase YoY, driven by user base expansion and enhanced monetization capabilities [22][60] - Net income increased by 44 3% YoY to $35 2 million, with net margin improving to 41 4% [15][32] - ARPU grew from $6 89 in Q3 2022 to $7 35 in Q3 2023 [60] - Total costs and expenses decreased by 5% YoY to $52 8 million, with cost of revenues down 6 1% to $27 8 million [43] - Operating income increased by 32 3% YoY to $32 4 million, while non-GAAP operating income rose 20 4% to $35 4 million [67] Business Line Performance - Yalla and Yalla Ludo maintained strong performance, with operational events like Islamic New Year and National Day events enhancing user engagement [18][50] - Merge Kingdoms ranked in the top 10 strategic games in Gulf countries, while Age of Legends topped Google Play's role-playing games category in Saudi Arabia, UAE, and Oman [13] - Midcore and hardcore games are not yet substantial revenue contributors but show significant growth potential [13][16] Market Performance - MENA gaming market generates $7 2 billion in annual revenue with a 6 9% YoY growth rate, making it one of the fastest-growing markets globally [45] - TikTok has significantly impacted the MENA market, particularly in live streaming and short video segments [3][74] Strategy and Industry Competition - The company is committed to deepening its presence in midcore and hardcore games, with plans to accelerate new game launches and explore partnerships with gaming studios [16][39][83] - MENA's digital transformation and economic development present significant opportunities, with Yalla leveraging its local insights and strong cash position to drive growth [11][57][59] - Competition, particularly from TikTok, is seen as an opportunity to innovate and strengthen leadership in the region [8][74] Management Commentary on Operating Environment and Future Outlook - MENA's rapid digital transformation and economic development are key drivers for future growth, with the region attracting increasing global interest [11][38][64] - The company remains confident in its ability to capture new opportunities and deliver sustainable value to stakeholders [11][57] - For Q4 2023, revenues are expected to be between $73 million and $80 million, reflecting current market conditions and preliminary estimates [77] Other Important Information - The company repurchased 1 7 million shares in Q3 2023, totaling $8 5 million, as part of its $150 million share repurchase program [6][21] - Yalla established a Sustainable Account for Cash Management with Standard Chartered, aligning with its commitment to sustainability [41][46] Q&A Session Summary Question: Growth potential of Yalla and Yalla Ludo - Yalla and Yalla Ludo have shown strong user loyalty and are expected to enjoy long life cycles due to their localization strategies [27][69] Question: Financial outlook for revenue growth and net profit margin - The company expects to maintain a net margin of 35% or above in 2024, with revenue growth supported by current businesses and new opportunities [56][61][70] Question: Competition from TikTok and Jaco - TikTok has significantly impacted live streaming and short video products in MENA, while Jaco does not directly compete with Yalla [74][99] Question: Performance of midcore and hardcore games - Merge Kingdoms and Age of Legends have shown strong rankings in Gulf countries, but their revenue contribution remains limited compared to flagship applications [71] Question: Balance between profitability and business investment - The company maintains a prudent approach to investments, focusing on high-quality opportunities while ensuring profitability [72] Question: Development of short plays in overseas markets - Short plays are still in early stages in MENA, with potential for growth as the market matures [97] Question: Competitive trends in the MENA market - The MENA market is attracting more resources and talent, with increasing collaboration opportunities among industry players [93]

Financial Data and Key Metrics Changes - The company reported Q2 2023 revenue of $79.2 million, a 4.1% increase from $76.1 million in Q2 2022, driven by a broader user base and enhanced monetization capabilities [60][73] - Non-GAAP net margin reached 42.6% in Q2 2023, while net income increased by 39% to $28.3 million [72][54] - Operating income rose to $23.9 million in Q2 2023 compared to $20.9 million in the same period last year [54] - The company maintained a solid cash position with cash and cash equivalents totaling $510.5 million as of June 30, 2023, up from $453 million at the end of 2022 [78] Business Line Data and Key Metrics Changes - Monthly active users increased by 14.3% year-over-year to 34.2 million, while paying users rose by 26.6% year-over-year to 13.4 million in Q2 2023 [46] - The company launched two new games, Merge Kingdom and Age of Legends, which gained significant popularity, with Merge Kingdom ranking as the No. 2 downloaded game in Saudi Arabia on iOS [63][43] Market Data and Key Metrics Changes - The MENA region is experiencing a rapid digital transformation, with increasing interest from global internet companies and strong local government support for industry development [61] - The competitive landscape is evolving with the entry of strong internet companies like Bytedance and successful mobile gaming apps, indicating a growing market potential [2][3] Company Strategy and Development Direction - The company aims to solidify its leadership position in the MENA market by enhancing user experience and expanding its game portfolio, particularly in mid-core and hard-core games [3][64] - Future growth will focus on leveraging local expertise and exploring collaborations with industry peers to capture opportunities in the MENA market [62][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture growth opportunities in the MENA region over the next 3 to 5 years, emphasizing the importance of R&D investments and new product development [65][50] - The company anticipates fluctuations in quarterly net margin due to promotions for mid-core and hard-core games, but expects annual non-GAAP net margin to increase to about 35% [56][72] Other Important Information - The company was recognized as the number 1 publisher in the Middle East based on consumer spending and was selected as one of the top 30 publishers in EMEA by Data.ai [49][70] - The company launched a new app to serve Arabic users' prayer needs, aligning with its ESG program and demonstrating commitment to local culture [46] Q&A Session Summary Question: Can management share more color about revenue growth target in the second half of the year? - Management expects steady growth in flagship applications, in line with annual revenue guidance, excluding contributions from mid-core and hard-core games [5][6] Question: Can management share more color on net profit margin trend in the second half of this year? - Management indicated that annual margin guidance of over 30% includes anticipated expenses for mid-core and hard-core games, with current trends consistent with expectations [8][10] Question: What will the financial impact be of launching the mid and hard-core games? - Management stated that the annual margin guidance already accounts for these expenses, and the margin trend is performing slightly better than expected [10][11] Question: What are the main driving forces behind the strong performance during the off-season of Ramadan? - Management noted that while user willingness to pay decreased during Ramadan, successful events and new features post-Ramadan drove strong revenue recovery [12][13] Question: What is the specific launch strategy and monetization plan for the mid- and hard-core gaming businesses? - The strategy focuses on building user communities and monitoring ROI closely, with in-app purchases being the main monetization method [15][16] Question: Could management provide updates on YallaChat and other new products? - Management reported strong retention for YallaChat and plans to refine product features before the second round of promotion [18][19] Question: What are the future growth drivers for Yalla and Yalla Ludo legacy products? - Management emphasized the importance of user engagement and ARPU improvement as key growth drivers [20]

Logan Ye - Manager, Investor Relations Tao Yang - Chairman and CEO Saifi Ismail - Director and President Karen Hu - CFO Jeff Jianfeng - Chief Operating Officer Thomas Shen - Nomura Xueqing Zhang - CICC Chenghao Li - CICC Xiaoyue Hu - Haitong Kaifang Jia - CITIC Edward Wang - Credit Suisse Good morning and good evening ladies and gentlemen. Thank you for standing by for Yalla Group Limited First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Yalla Group Limited (NYSE:YALA) Q4 2022 Earnings Conference Call March 13, 2023 8:41 PM ET Company Participants Kerry Gao - Investor Relations Director Tao Yang - Chairman & CEO Saifi Ismail - Director & President Karen Hu - Chief Financial Officer Conference Call Participants Kaifang Jia - CITIC Xueqing Zhang - CICC Yulin Zhong - Haitong International Thomas Shen - Nomura Edward Wang - Credit Suisse Zemin Chen - Huafu Securities Operator Good morning and good evening, ladies and gentlemen. Thank you for st ...

Yalla Group Limited (NYSE:YALA) Q3 2022 Earnings Conference Call November 14, 2022 8:00 PM ET Company Participants Kerry Gao - Investor Relations Director Tao Yang - Chairman & Chief Executive Officer Jeff Xu - Chief Operating Officer Karen Hu - Chief Financial Officer Conference Call Participants Kaifang Jia - CITIC Thomas Shen - Nomura Edward Wang - Credit Suisse Xueqing Zhang - CICC Chenghao Li - CICC Yulin Zhong - Haitong International Zemin Chen - Huafu Securities (Transcript provided to Seeking Alpha ...

[Option 1] B 3rd Quarter 2022 Earnings Presentation Nov 2022 G Disclaimer The information in this presentation is provided to you by Yalla Group Limited (the "Company") solely for informational purposes and is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security or instrument of the Company, or to participate in any investment activity or trading strategy, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoeve ...

G 2nd Quarter 2022 Earnings Presentation Aug 2022 52 Disclaimer The information in this presentation is provided to you by Yalla Group Limited (the "Company") solely for informational purposes and is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security or instrument of the Company, or to participate in any investment activity or trading strategy, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever, in the ...

Yalla Group Limited (NYSE:YALA) Q2 2022 Earnings Conference Call August 8, 2022 8:00 PM ET Company Participants Kerry Gao â Investor Relations Director Tao Yang â Chairman and Chief Executive Officer Saifi Ismail â President, Director Karen Hu â Chief Financial Officer Jeff Xu â Chief Operating Officer Conference Call Participants Yulin Zhong â Haitong International, Analyst Edward Wang â Credit Suisse, Analyst Thomas Shen â Nomura, Analyst Xueqing Zhang â CICC, Analyst Chenghao Li â CICC, Analyst Kaifang J ...