Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA), the leading voice-centric social networking and entertainment platform in the Middle East and North Africa (MENA), today announced its unaudited financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial and Operating Highlights

• Revenues were US$80.1 million in the third quarter of 2022, representing an increase of 12.3% from the third quarter of 2021.
  – Revenues generated from chatting services in the third quarter of 2022 were US$56.2 million.
  – Revenues generated from games services in the third quarter of 2022 were US$23.9 million.
• Net income was US$24.4 million in the third quarter of 2022, compared with US$25.3 million in the third quarter of 2021. Net margin was 30.5% in the third quarter of 2022.
• Non-GAAP net income was US$29.4 million in the third quarter of 2022, compared with US$33.2 million in the third quarter of 2021. Non-GAAP net margin^[3] was 36.7% in the third quarter of 2022.
• Average MAUs increased by 19.1% to 30.9 million in the third quarter of 2022 from 25.9 million in the third quarter of 2021.
• The number of paying users on our platform increased by 50.3% to 11.5 million in the third quarter of 2022 from 7.7 million in the third quarter of 2021.

This came during the company’s announcement of the financial results for the third quarter of the fiscal year 2022, where the Yalla Group witnessed a strong growth in third-quarter revenues amounting to AED 294.0 million ($80.1 million), an increase of more than 12.3% compared to the same period last year, which reflects the strong financial performance. of the group, and its ability to achieve record profits as a result of the continued momentum in its business.

According to the financial data announced by Yalla, owner of the largest audio platform for digital entertainment and social networking in the Middle East and North Africa, the company’s net profit in the third quarter amounted to about 89.7 million dirhams (24.4 million dollars), while the non-compliant net margin remained GAAP is exceptionally high at 36.7%, highlighting the company’s strong ability to generate income and disciplined spending.

The average number of active monthly users increased by 19.1% to 30.9 million in the third quarter of this year, compared to 25.9 million during the third quarter of last year.

On the other hand, the number of subscribers to paid services increased by 50.3% to 11.5 million users, compared to 7.7 million users during the same period last year.

In this regard, Mr. Tao Yang, Founder, CEO and Chairman of the Board of Directors of “Yalla” Group Ltd., expressed his happiness with the financial results that exceeded expectations during the first nine months of this year, which reflects the strength of the financial position of the group and the success of its strategic plan in enhancing its financial performance. Developing its services and expanding its user base.

Tao stressed that the company’s impressive performance would not have been achieved without the tireless efforts made by the group in terms of enhancing operations, expanding the user base and improving the company’s ability to generate income through its platforms.

He added: “During the third quarter of this year, the company continued to enhance its product portfolio by introducing new features and features that motivate users to interact with applications and entertainment platforms more, which was positively reflected in the increase in the average number of active monthly users and thus the number of users subscribed to paid services. “.

Mr. Tao emphesized that the third quarter of this year witnessed the launch of the trial version of the game “Yalla Fazaa”, which constitutes a milestone and a new achievement added to the company’s series of achievements in the gaming sector.

Added : We have also upgraded the instant messaging application, Yalla Chat, by launching version 1.3, which includes more Among the attractive features and features, in addition to the launch of a new version of the Yalla Ludo application to enhance the user experience.

On the other hand Saifi Ismail, Group Chairman, praised the strong financial results achieved by the company thanks to its adoption of a work approach based on innovation and clear future planning

Stressing Yalla’s commitment to continue working to enhance the users’ experience by offering new services and products that meet the aspirations of customers of different cultures in order to achieve our strategic goal of To become the most popular destination in the MENA region for social networking for electronic entertainment and entertainment.

He added, “Yalla Group Ltd. continued its growth trajectory during the third quarter thanks to the continued expansion of its user base, as it achieved record revenues that positively reflected on the acceleration of the growth rate, which confirms the effectiveness of the company’s strategy and the excellence of its applications.”

About Yalla Group Limited

Yalla Group Limited is the largest voice-centric social networking and entertainment platform in the Middle East and Northern Africa (MENA).

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 MENA, with in-game voice chat and localized Majlis functionality.

Building on the success of Yalla and Yalla Ludo, the Company has expanded its content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users’ evolving online social networking and entertainment needs.

The ecosystem includes YallaChat, an IM product tailored for Arabic users; Waha, a social networking product designed for the metaverse; and games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in the region.

Yalla is also actively exploring outside of MENA, having launched Yalla Parchis, a Ludo game designed for the South American markets.

Yalla’s mobile applications deliver a seamless experience that fosters 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 its users.

In addition, through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core game distribution in the MENA region, leveraging its local expertise to bring exciting new content to its users.