Yalla’s Net income grows to AED 74.7 million in Q2
The number of paying users on Yalla platforms increased by 65.3% to 10.6 million
Average MAUs increases to 29.9 million by 35.6 %
UAE, Dubai: Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the UAE-based leading voice-centric social networking and entertainment platform in the Middle East and North Africa (MENA), today announced its unaudited financial results for the second quarter of the fiscal year 2022, recording AED 279.4 million in revenues, an increase of 14.2% compared to the same period of last year.
According to the Q2 financial results, Yalla’s net income increased to AED 74.7 million, and net margin was 26.7% in the second quarter of 2022. Meanwhile, the Average MAUs increased by 35.6% to 29.9 million in the second quarter of this year compared to 22.1 million recorded in the same period of 2021. Furthermore, the number of paying users on Yalla platforms increased by 65.3 % to 10.6 million up from 6.4 million in the same quarter of 2021.
This brings the company's revenues during the first half of the 2022 fiscal year ending on June 30 to AED 545 million.
The positive financial results achieved reflect Yalla's improving financial performance, ongoing growth and the rising consumer trust in its products and services, which are tailored to different local cultures.
Lauding the remarkable financial results, Mr. Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla: “We are pleased to have achieved another solid quarter with total revenues, exceeding the top end of our guidance by 8.7% and marking another quarterly revenue record for Yalla Group. Such strong quarterly results demonstrate our operational success in refining processes, enhancing the gamification of our flagship applications and optimizing user acquisition.
“These actions have holistically elevated our user experience, further boosting user engagement on Yalla and Yalla Ludo as well as users’ willingness to pay on our platforms, evidenced by the increase in our group’s paying users to 10.6 million, an increase of 65.3%, up from 6.4 million in the same quarter of 2021,” added Tao.
“Over the ensuing half decade, we have deepened our commitment to MENA, its people and its culture, conceiving new products to meet MENA users’ evolving needs and propelling digitalization throughout the region. Meanwhile, we have emerged as a tech industry leader, elevating MENA’s role in driving innovation and progress worldwide,” he further said.
For his part, Saifi Ismail, Yalla Group President, expressed his happiness and satisfaction with the financial results realized during the second quarter, which demonstrates the company’s resolve to become the first and foremost platform for social networking and online entertainment in the MENA region.
He stressed that Yalla will remain committed to the region’s principles and authentic values while serving customers according to the highest standards of quality, adding that Yalla embraces diversity and works within a simple yet sophisticated environment at the same time.
“Yalla's solid financial position, distinctive brand, and efficient management have all helped dramatically increase the user base, particularly among those subscribed to premium services. This has resulted in achieving record revenues and improving the company's profitability during the second quarter,” Ismail stated.
“Going forward, we will continue making efforts to expand our user base, improve operational efficiency, and optimize our resource allocation for quality investment, to drive long-term growth while delivering sustainable returns to our partners,” he further said.
Ismail emphasized that the company’s impressive performance during the second quarter demonstrates the effectiveness of its strategy and will stimulate our team to make every effort to foster our growth, develop and offer services and features exceeding customer expectations. "We will stop at nothing to sustain the positive momentum that we have attained and we will undoubtedly push it to the next level in coming period,” the Yalla Group President noted.
