- Yalla Group Ltd (NYSE: YALA) recently announced its Q3 2021 financial results. These are the details.
Yalla Group Ltd (NYSE: YALA) – the leading voice-centric social networking and entertainment platform in the Middle East and North Africa (MENA) – recently announced its Q3 2021 financial results. These are the highlights:
Third Quarter Ended September 30, 2021 Financial and Operating Highlights
The revenues were US$71.3 million in the third quarter of 2021, representing an increase of 110.8% from the third quarter of 2020.
— Revenues generated from chatting services in the third quarter of 2021 were US$53.9 million.
— Revenues generated from games services in the third quarter of 2021 were US$17.4 million.
— Net income was US$25.3 million in the third quarter of 2021 and net margin was 35.5%, compared with net loss of US$31.0 million in the third quarter of 2020.
— Non-GAAP net income was US$33.2 million in the third quarter of 2021, representing an increase of 114.5% from the third quarter of 2020. And non-GAAP net margin was 46.6% in the third quarter of 2021.
— Average MAUs increased by 81.9% to 25.9 million in the third quarter of 2021 from 14.3 million in the third quarter of 2020.
— The number of paying users on their platform increased by 51.3% to 7.7 million in the third quarter of 2021 from 5.1 million in the third quarter of 2020.
“We delivered another quarter of robust growth with excellent operating and financial results. We are happy to share with you that we are working on a cutting-edge social app, which will feature the first-ever social metaverse designed for the MENA region and may be made available to our users as early as the first quarter of 2022. These strategic initiatives enable us to meet the evolving online social networking needs of local users and foster synergies across all of Yalla’s social networking products. Yalla Parchis has also received positive feedback from the market since its launch and contributed 786,000 MAU for Yalla Group during the third quarter. Furthermore, we established Yalla Game, a holding subsidiary under Yalla Group, to focus on our mid-core and hard-core game distribution business in the MENA region. Our group’s MAUs continued to grow, up 81.9% year over year to 25.9 million, as we deepened our outreach activities and conducted effective and engaging marketing campaigns targeting the local culture. Growing user engagement on our platform propelled an increase in the number of paying users by 51.3% year over year to 7.7 million.”
“We are delighted and proud to have won a prestigious Middle East Technology Excellence award in the “Gaming – Media & Entertainment” category, which is a testament to our technological achievements and a commendation of our leading social networking and entertainment ecosystem. As a company deeply rooted in the MENA region, we will continue to develop digital products tailored to the specific needs of local users and contribute to the development of the local digital economy.”
— Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla
“Yalla recorded remarkable operating and financial performance in the third quarter of 2021, with a rapidly expanding user base, outstanding operating efficiency and abundant cash reserves, underpinned by our unique market positioning. We are pleased that our group’s total revenues grew by 110.8% year over year to US$71.3 million. We also maintained high profitability in the third quarter with a non-GAAP net margin of 46.6%, fueled by our strong monetization capabilities and disciplined SG&A spending. Going forward, we will continue to invest in innovative products and services to enhance our ecosystem and remain focused on our mission of building MENA’s most popular destination for online social networking and entertainment activities.”
— Karen Hu, Chief Financial Officer of Yalla
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