- Yalla Q4 revenues up by 11.2% to AED 275.9 million
- Number of paying users increased by 47.8 % to 12.5 million in Q4
- Yalla’s net income grew to AED 60.8 million, while the non-GAAP net margin remained at 29.0%
UAE, Dubai: Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, has announced its unaudited financial results for the fourth quarter and full year ended on December 31, 2022.
Yalla continued to focus on quality growth in 2022, with full year revenue hitting AED 1.1 billion, ($303.6 million), an increase of 11.2% compared to AED 1.0 billion in 2021. The group also recorded a net margin of 26.0% and a non-GAAP net margin of 34.8% for the fiscal year 2022.
Yalla has also reported solid fourth-quarter results with Q4 revenues reaching AED 275.9 million ($75.1 million), representing a notable increase of 11.2% compared to AED 248.1 million during the same quarter of the previous year. This demonstrates the company’s strong financial performance and sustained momentum in its business.
Yalla has also reported a net income of AED 60.8 million (US$16.6 million), with a non-GAAP net margin that remained exceptionally high at 29.0%, underscoring the company’s strong monetization capabilities and disciplined SG&A spending.
Furthermore, Yalla’s average monthly active users (MAUs) increased by 14.0% to 32.0 million during the fourth quarter of 2022, up from 28.1 million in the same quarter of 2021. Moreover, the number of paying users on the Yalla platform increased by 47.8% to 12.5 million in the fourth quarter of 2022, compared to 8.4 million during the same quarter of the previous year.
“The year 2022 was a challenging one. Amid macroeconomic headwinds, we maintained our core growth strategy while agilely adjusting our operations to improve efficiency. We are pleased to see that our efforts paid off and the company achieved quality growth, paving the way for 2023’s development,” said Mr. Yang Tao, Founder, Chairman, and CEO of Yalla Group. “In the fourth quarter, our revenues increased by 11.2% year-over-year to US$75.1 million, reaching the upper end of our guidance. Despite the World Cup diverting our users’ attention to some degree during the quarter, our average MAUs reached 32.0 million, up 14% year-over-year thanks to our continuous efforts to enhance product gamification and boost user engagement. Meanwhile, we continued to improve our monetization capability, driving our paying users to 12.5 million, an increase of 47.8% year-over-year,” Tao noted.
“Our flagship applications maintained stable operations, and our new initiatives progressed steadily during the quarter. We also launched Yalla Game’s first internal game studio and completed the initial round of beta testing on our first two hard-core games for distribution in MENA. On a related note, Frost & Sullivan recently issued a research report recognizing Yalla as the largest MENA-based online social networking and gaming company in terms of revenue in 2022. We believe that as the region’s leader across both social networking and gaming, we are uniquely positioned to capitalize on MENA’s strong digitalization trend and unleash massive growth potential,” he added.
Lauding the remarkable growth in Yalla’s revenues, Saifi Ismail, Group President at Yalla Group, remarked: “Despite external challenges, our revenue recorded steady year-over-year growth in the fourth quarter of 2022, a testament to our effective growth strategy. Furthermore, we achieved a healthy profitability level during the quarter as we firmly executed our refined operations process. Yalla will continue to pursue quality development, improve operational efficiency, and invest in our Yalla ecosystem. Supported by our deep local insights and solid fundamentals, we are well-positioned to navigate the market dynamics and seize future growth opportunities. As always, we are committed to creating sustainable, long-term value for our stakeholders.”
About Yalla Group Limited:
Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenue in 2022. The Company operates two flagship mobile applications, “Yalla”, a voice-centric group chat platform, and “Yalla Ludo”, a casual gaming application featuring online versions of board games, popular in the MENA region, with in-game voice chat and localized Majlis functionalities. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users’ evolving online social networking and gaming needs. Through its holding subsidiary, “Yalla Game Limited”, the Company has expanded its capabilities in mid-core and hard-core game in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes “YallaChat”, an IM product tailored for Arabic users; “Waha”, a social networking product featuring 3-D avatars; and games such as “Yalla Baloot” and “101 Okey Yalla”, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of the MENA region with “Yalla Parchis”, a Ludo game designed for the South American markets. Yalla’s mobile applications deliver a seamless experience that foster a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.