Yalla Group Limited Announces Unaudited Third Quarter 2024 Financial Results

Financial Performance - Revenues for the third quarter of 2024 were US$88.9 million, a 4.4% increase from US$85.2 million in the same quarter of 2023 [2][7] - Net income rose to US$39.2 million, an 11.2% increase from US$35.2 million year-over-year [2][15] - Non-GAAP net income was US$42.6 million, reflecting an 11.3% increase from US$38.3 million in the third quarter of 2023 [2][15] - Average monthly active users (MAUs) increased by 14.5% to 40.2 million from 35.1 million year-over-year [2][7] - The number of paying users grew by 12.0% to 12.6 million from 11.2 million in the same period last year [2][7] Revenue Breakdown - Revenues from chatting services were US$58.5 million, while revenues from gaming services were US$30.2 million in the third quarter of 2024 [2][8] - The increase in revenues was primarily driven by a broader user base and enhanced monetization capabilities [7] Cost and Expenses - Total costs and expenses were US$56.4 million, a 6.9% increase from US$52.8 million in the third quarter of 2023 [8] - Cost of revenues increased to US$31.8 million, a 14.6% rise from US$27.8 million year-over-year [9] - Selling and marketing expenses decreased by 34.9% to US$7.4 million from US$11.3 million in the same period last year [10] - General and administrative expenses rose by 38.3% to US$10.1 million from US$7.3 million year-over-year [11] - Technology and product development expenses increased by 11.1% to US$7.1 million from US$6.4 million in the same period last year [12] Profitability Metrics - Net margin was 44.1% in the third quarter of 2024, while non-GAAP net margin was 47.9% [2][6] - Operating income remained stable at US$32.5 million [13] Shareholder Returns - The company repurchased 1,736,383 American depositary shares (ADSs) for approximately US$7.0 million in the third quarter of 2024 [18] - Cumulatively, the company has repurchased 5,709,259 ADSs for an aggregate amount of approximately US$42.5 million as of September 30, 2024 [18] Outlook - For the fourth quarter of 2024, the company expects revenues to be between US$77.0 million and US$84.0 million [19]