Financial Performance - Yalla Group achieved revenues of US$846 million in 2Q2025, compared to US$812 million in 2Q2024[34, 55] - Net income for 2Q2025 was US$365 million, representing a net margin of 432%[12, 34] - Average Monthly Active Users (MAUs) increased to 42421 thousand in 2Q2025, an 88% year-over-year growth[36] - The company maintains a strong cash flow position, with cash and cash equivalents, restricted cash, term deposits, and short-term investments totaling US$7041 million as of June 2025[53] Operational Efficiency - Cost of revenues decreased to US$279 million in 2Q2025, representing 330% of total revenues[38] - Selling and marketing expenses remained stable at US$87 million, accounting for 102% of total revenues[40] - General and administrative expenses increased to US$90 million, representing 106% of total revenues[43] - Technology and product development expenses increased to US$83 million, accounting for 99% of total revenues[46] Strategic Initiatives - The company repurchased 6230299 ADSs for approximately US$41 million in 1H2025 and is committed to repurchasing US$50 million for the full year[27] - All shares repurchased in 2025, totaling 6230299 ADSs, have been canceled[28]

Core Viewpoint - Yalla Group Limited, the largest online social networking and gaming company in the MENA region, is set to announce its unaudited financial results for Q2 2025 on August 11, 2025, after U.S. market close [1]. Company Overview - Yalla Group Limited operates two main mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming app featuring online board games popular in MENA [3]. - The company has expanded its offerings through Yalla Game Limited, focusing on mid-core and hard-core games, and has developed additional products like YallaChat and WeMuslim to cater to Arabic users [3]. - Yalla is also exploring opportunities outside the MENA region with Yalla Parchis, a Ludo game aimed at South American markets [3]. Upcoming Events - A conference call to discuss the financial results will take place on August 11, 2025, at 8:00 PM Eastern Time, with access available through various international numbers [2]. - The replay of the conference call will be accessible until August 18, 2025 [2]. - A live and archived webcast will be available on the company's investor relations website [2].

Summary of YALA's Q1 2025 Earnings Conference Call Company Overview - **Company**: YALA - **Industry**: Online social networking and entertainment, with a focus on the MENA region Key Financial Highlights - **Q1 Revenue**: $84 million, a 6.5% increase year-over-year, exceeding guidance [2] - **Net Margin**: Improved from 39.5% to 43.4% year-over-year [2][7] - **Net Income**: Increased by 17% year-over-year to $36.4 million [7][9] - **Non-GAAP Net Income**: $39.1 million, a 10.9% increase from the previous year [9] - **Cash Position**: $690.9 million as of March 31, 2025, up from $656.3 million at the end of 2024 [9] Operational Performance - **Monthly Active Users (MAU)**: Increased by 17.9% year-over-year to 44.6 million [5] - **User Engagement**: Successful campaigns during Ramadan, including a significant increase in user participation in events [5][6] - **Product Development**: Continued focus on enhancing user experience through AI and gamification strategies [2][3] Strategic Initiatives - **AI Deployment**: Development of an AI content moderation model for Arabic and regional dialects, leading in speed and accuracy in the MENA region [3] - **Gaming Sector Growth**: Strong momentum in the gaming sector due to MENA's young population and government support [3] - **Share Repurchase Program**: Increased buyback target to $50 million for 2025, with over $27.4 million repurchased as of May 16, 2025 [4][10] Market Insights - **MENA Region Stability**: The region remains a vital hub for digital services, with high internet penetration and a young demographic [2] - **Economic Impact**: Despite global economic volatility, YALA's core market has shown resilience and potential for growth [2] Future Outlook - **Q2 Revenue Guidance**: Expected to be between $76 million and $83 million [10] - **MAU Growth Expectation**: Full-year MAU growth projected at around 10% year-over-year [14] Additional Notes - **Community Engagement**: Offline events, such as the Yalla Ludo Friendship Tournament, have strengthened brand presence and user loyalty [6] - **Technological Innovation**: Commitment to leveraging technology for operational efficiency and user experience enhancement [4][6] This summary encapsulates the key points from YALA's Q1 2025 earnings conference call, highlighting financial performance, strategic initiatives, and market insights.

Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue reached USD 84 million, a 6.5% increase year over year, exceeding guidance [7][21] - Net margin improved from 39.5% to 43.4% year over year, reflecting effective growth strategies [9][21] - Net income increased by 17% year over year to USD 36.4 million [21][26] Business Line Data and Key Metrics Changes - The flagship application, Yalla Ludo, saw significant user growth, with average monthly active users increasing by 17.9% year over year to 44.6 million [17] - The gaming sector is experiencing unique growth momentum due to the MENA region's young population and enhanced digital infrastructure [12] Market Data and Key Metrics Changes - The MENA region remains a core strategic market, showing remarkable stability and potential for growth [9][10] - The company is leveraging localized materials to enhance AI content moderation, leading to improved recognition speed and accuracy in the region [11] Company Strategy and Development Direction - The company is committed to R&D and AI deployment to enhance user experience and operational efficiency [10][11] - Plans to accelerate share repurchases, raising the buyback target to USD 50 million for 2025, reflecting a commitment to shareholder returns [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that the global macroeconomic environment is rapidly evolving, but the MENA region is well-positioned for growth [9][10] - The company expects revenues for Q2 2025 to be between USD 76 million and USD 83 million, indicating cautious optimism [28] Other Important Information - The company has successfully integrated AI applications into user profile management, optimizing customer acquisition efficiency [11] - The cash position remains strong, with cash and equivalents totaling USD 690.9 million as of March 31, 2025 [27] Q&A Session Summary Question: What is the main driver of the significant year-over-year increase in net margin and guidance for next quarter? - Management indicated that revenues from game services, particularly Yalla Ludo, are the main growth driver, with a significant decrease in selling and marketing expenses contributing to the improved net margin [32][33] Question: Can management share the recent developments of the two flagship products, Yalla and Yalla Ludo? - Management highlighted that Yalla is celebrating its ninth anniversary with in-app celebrations, while Yalla Ludo continues to engage users through tournaments and operational activities [36][37] Question: What is the mindset behind the shareholder return plan going forward? - Management expressed satisfaction with the recent market correction and confirmed that the buyback program is accelerating, with a raised target for share repurchases [40][41] Question: Can management brief us on the advancements in mid-core and hardcore games? - Management confirmed that several mid-core games are in the pipeline, with potential launches as early as Q3, focusing on both the MENA region and overseas markets [45] Question: Where do we see a more ambitious user acquisition plan in the future? - Management noted that MAU growth in Q1 exceeded expectations, driven by refined user acquisition strategies, and anticipates a full-year MAU growth of around 10% year over year [49]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of USD 84 million, a 6.5% increase year over year, exceeding guidance [6][20] - Net margin improved from 39.5% to 43.4% year over year, with net income rising 17% to USD 36.4 million [7][24] - Non-GAAP net margin increased to 46.6%, reflecting strong fundamentals and a clear strategy [21] Business Line Data and Key Metrics Changes - The gaming business is a significant growth driver, with a robust product pipeline and three titles set for release in Q3 [11][42] - Monthly active users (MAU) increased by 17.9% year over year to 44.6 million, driven by effective user engagement strategies [15][45] - Selling and marketing expenses decreased by 14.3%, contributing to improved profitability [22] Market Data and Key Metrics Changes - The MENA region remains a core strategic market with high internet penetration and a young demographic, providing growth opportunities [7][8] - The company is leveraging AI for content moderation and user profile management, enhancing user experience and acquisition efficiency [10] Company Strategy and Development Direction - The company is committed to R&D and AI deployment to capitalize on digital service opportunities in the MENA region [8][10] - Plans to increase share repurchase targets to USD 50 million for 2025, reflecting a commitment to shareholder returns [12][40] Management Comments on Operating Environment and Future Outlook - Management noted the stability and potential upside in the MENA region despite global economic volatility [7] - The company expects Q2 2025 revenues to be between USD 76 million and USD 83 million, based on current market conditions [26] Other Important Information - The company has repurchased over 4.2 million ADS or Class A ordinary shares in 2025, totaling approximately USD 27.4 million [25] - The company plans to cancel all shares repurchased this year to benefit shareholders [13] Q&A Session Summary Question: What is the main driver of the significant year-over-year increase in net margin and guidance for next quarter? - Management indicated that revenues from game services are the main growth driver, with decreased selling and marketing expenses supporting robust net margin performance [29][31] Question: Can management share the recent developments of flagship products Yala and Yala Ludo? - Management highlighted ongoing celebrations for Yala's ninth anniversary and continued user engagement initiatives for Yala Ludo, which are generating steady cash flow [34][36] Question: What is the mindset behind the shareholder return plan going forward? - Management expressed satisfaction with the recent market correction and confirmed an accelerated buyback program, raising the target to USD 50 million [38][40] Question: Can management brief on advancements in mid-core and hardcore games? - Management confirmed several mid-core games in the pipeline, with potential launches as early as Q3, focusing on both MENA and overseas markets [41][42] Question: Where do we see a more ambitious user acquisition plan in the future? - Management noted that MAU growth exceeded expectations in Q1, driven by refined user acquisition strategies, and expects full-year MAU growth to be around 10% year over year [44][46]

1st Quarter 2025 Earnings Presentation May 2025 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 Unite ...

Core Viewpoint - Yalla Group Limited, the largest online social networking and gaming company in the MENA region, is set to announce its unaudited financial results for Q1 2025 on May 19, 2025, after U.S. market close [1] Company Overview - Yalla Group Limited operates two main mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming app featuring online board games popular in MENA [3] - The company has expanded its offerings through Yalla Game Limited, focusing on mid-core and hard-core games, and has developed additional products like YallaChat and WeMuslim to cater to Arabic users [3] - Yalla is also exploring opportunities outside MENA with Yalla Parchis, a Ludo game aimed at South American markets [3] Financial Communication - A conference call to discuss the financial results will be held on May 19, 2025, at 8:00 PM Eastern Time, with access numbers provided for various regions [2] - The replay of the conference call will be available until May 26, 2025, along with a live and archived webcast on the company's investor relations website [2]

Core Insights - Yalla Group Limited published its 2024 Environmental, Social and Governance (ESG) Report, highlighting its commitment to sustainable development across five key pillars: responsible governance, environmental stewardship, trust, people, and community engagement [1] - The company aims to become MENA's most popular destination for online social networking and entertainment, focusing on sustainability, innovation, and inclusivity [2] Company Overview - Yalla Group Limited is the largest MENA-based online social networking and gaming company by revenue in 2022, operating flagship mobile applications Yalla and Yalla Ludo [3] - The company has expanded its capabilities in mid-core and hard-core games through its subsidiary Yalla Game Limited, and is actively exploring markets outside of MENA with products like Yalla Parchis [3] ESG Initiatives - In 2024, Yalla made significant progress in its ESG initiatives, including expanding renewable energy use, promoting paperless operations, and integrating AI for efficiency and environmental impact reduction [2] - The company emphasizes cultural connection, environmental responsibility, and digital trust, aiming to address pressing ESG challenges and solidify its position as a responsible corporate citizen [2]

Core Viewpoint - Yalla Group Limited has filed its annual report for the fiscal year ended December 31, 2024, with the SEC, highlighting its position as the largest online social networking and gaming company in the MENA region [1] Company Overview - Yalla Group Limited is recognized as the largest MENA-based online social networking and gaming company by revenue in 2022 [3] - The company operates two main mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming app featuring popular board games in the MENA region [3] - Yalla has expanded its offerings through its subsidiary, Yalla Game Limited, focusing on mid-core and hard-core games, and has developed additional products like YallaChat and WeMuslim to cater to specific user needs [3] - The company is also exploring opportunities outside the MENA region with Yalla Parchis, a Ludo game aimed at South American markets [3] Financial Reporting - The annual report, which includes audited financial statements, is accessible on Yalla's investor relations website and the SEC's website, with hard copies available upon request for shareholders [2]