Yalla Group Limited Announces Unaudited First Quarter 2025 Financial Results

Core Insights - Yalla Group Limited reported a strong performance in Q1 2025, with revenues of US$83.9 million, a 6.5% increase year-over-year, exceeding guidance despite the impact of Ramadan [8][10][13] - The company achieved a significant increase in average monthly active users (MAUs), rising by 17.9% to 44.6 million, attributed to refined user acquisition strategies and AI-driven optimizations [8][10][12] - Yalla plans to accelerate its share buyback program, increasing the target for 2025 by US$22 million to a total of US$50 million, reflecting a commitment to returning value to shareholders [9][12] Financial Performance - Revenues for Q1 2025 were US$83.9 million, up from US$78.7 million in Q1 2024, driven by a broader user base and enhanced monetization capabilities [10][13] - Chatting services generated US$53.5 million, while game services contributed US$30.1 million to total revenues [10][14] - Net income increased by 17.0% to US$36.4 million, with a net margin of 43.4% [10][25] User Metrics - Average MAUs rose to 44.6 million in Q1 2025 from 37.8 million in Q1 2024 [10][13] - The number of paying users decreased by 8.0% to 11.8 million, down from 12.8 million in the previous year [10][12] Cost Structure - Total costs and expenses were US$52.7 million, a 6.2% increase from US$49.6 million in Q1 2024 [15] - Selling and marketing expenses decreased by 14.3% to US$6.9 million, while general and administrative expenses increased by 30.8% to US$8.7 million [17][18] - Technology and product development expenses rose by 25.0% to US$7.8 million, reflecting increased headcount to support new business development [19] Shareholder Returns - The company repurchased 4,275,812 shares for approximately US$27.4 million from January 1 to May 16, 2025, with plans to cancel all repurchased shares [12][30] - Cumulatively, Yalla has repurchased 11,580,950 shares for about US$76.9 million since the inception of the share repurchase program [30] Outlook - For Q2 2025, Yalla expects revenues to be between US$76.0 million and US$83.0 million, based on current market conditions [31]