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 Viewpoint - Yala Technology, a social media and gaming company in the MENA region, reported its strongest revenue growth in over two years, driven by cost control and improved user monetization efficiency, with expectations for further acceleration due to the launch of two self-developed core games in the second half of the year [2][3][4]. Group 1: Financial Performance - In the fourth quarter, Yala Technology achieved a revenue of $90.8 million, a year-on-year increase of 12.2%, marking the best performance since Q3 2022 and indicating a return to double-digit growth after seven quarters of single-digit growth [6]. - The company's net profit rose from $29.7 million in the same quarter last year to $32.5 million, reflecting a 9.7% increase, contributing to an annual profit growth of 18.7%, reaching $134.2 million [7]. - Revenue from chat services grew by 14.6% to $59.8 million, accounting for about two-thirds of total revenue, while gaming services revenue increased by 8.1% to $30.8 million [6]. Group 2: Game Development and Market Strategy - Yala Technology is focusing on developing core games aimed at users willing to invest more in gaming, moving beyond traditional casual gaming [4]. - The company is actively hosting offline gaming events across the region to enhance its position in the gaming industry, with six events held last year in cities like Abu Dhabi and Cairo [4]. - The two new core games are currently in testing, with potential revenue contributions expected in the latter half of the year [5][6]. Group 3: AI Integration and Future Prospects - Yala Technology is integrating artificial intelligence into its operations to enhance efficiency and user experience, with a dedicated AI team working on algorithms tailored to local culture and user preferences [7]. - The company plans to accelerate its stock repurchase program, aiming to double the buyback amount to at least $28 million this year [8]. - The current price-to-earnings ratio of Yala Technology is relatively low at 5.4, suggesting potential for stock price appreciation if the new games perform well [7].