Yalla Group(YALA) - 2025 Q2 - Quarterly Report

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]