DUBAI, UAE, Nov. 20,
2023 /PRNewswire/ -- Yalla Group Limited ("Yalla" or
the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social
networking and gaming company, today announced its unaudited
financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 Financial and Operating Highlights
- Revenues were US$85.2
million in the third quarter of 2023, representing an
increase of 6.4% from the third quarter of 2022.
- Revenues generated from chatting services in the third quarter
of 2023 were US$53.9 million.
- Revenues generated from games services in the third quarter of
2023 were US$31.2 million.
- Net income was US$35.2
million in the third quarter of 2023, a 44.3% increase from
US$24.4 million in the third quarter
of 2022. Net margin[1] was 41.4% in the third quarter of
2023.
- Non-GAAP net income[2] was US$38.3 million in the third quarter of 2023, a
30.3% increase from US$29.4 million
in the third quarter of 2022. Non-GAAP net margin[3] was
44.9% in the third quarter of 2023.
- Average MAUs[4] increased by 13.6% to
35.1 million in the third quarter of 2023 from 30.9 million in the
third quarter of 2022.
- The number of paying users[5] on our
platform decreased by 2.6% to 11.2 million in the third quarter of
2023 from 11.5 million in the third quarter of 2022 due to a
near-term game mechanism adjustment.
|
Key Operating
Data
|
For the three months
ended
|
|
|
September 30,
2022
|
|
|
September 30,
2023
|
|
|
|
|
|
|
|
|
Average MAUs (in
thousands)
|
|
30,896
|
|
|
|
35,096
|
|
|
|
|
|
|
|
|
Paying users (in
thousands)
|
|
11,541
|
|
|
|
11,236
|
|
|
[1] Net
margin is net income as a percentage of revenues.
|
|
[2] Non-GAAP
net income represents net income excluding share-based
compensation. Non-GAAP net income is a non-GAAP financial measure.
See the sections entitled "Non-GAAP Financial Measures" and
"Reconciliations of GAAP and Non-GAAP Results" for more information
about the non-GAAP measures referred to in this press
release.
|
|
[3] Non-GAAP
net margin is non-GAAP net income as a percentage of
revenues.
|
|
[4] "Average
MAUs" refers to the average monthly active users in a given period
calculated by dividing (i) the sum of active users for each month
of such period, by (ii) the number of months in such period.
"Active users" refers to registered users who accessed any of our
main mobile applications at least once during a given period.
Yalla, Yalla Ludo and Yalla Parchis have been our main mobile
applications for the periods presented herein; YallaChat and 101
Okey Yalla have been our main mobile applications since the fourth
quarter of 2022; WeMuslim has been our main mobile application
since the second quarter of 2023; and Ludo Royal has been our main
mobile application since the third quarter of 2023.
|
|
[5] "Paying
users" refers to registered users who played a game or purchased
our virtual items or upgrade services using virtual currencies on
our main mobile applications at least once in a given period,
except for users who received all of their virtual currencies
directly or indirectly from us for free; YallaChat and WeMuslim do
not involve the usage of virtual currencies, and the metrics of
"paying users" and "ARPPU" do not reflect user activities on
YallaChat and WeMuslim. "Registered users" refers to users who have
registered accounts on our main mobile applications as of a given
time; a registered user is not necessarily a unique user, as an
individual may register multiple accounts on our main mobile
applications.
|
"We were pleased to achieve strong results in the third quarter
of 2023," said Mr. Yang Tao,
Founder, Chairman and CEO of Yalla. "We recorded all-time high
revenues of US$85.2 million in the
third quarter of 2023, beating the upper end of our guidance, while
year-over-year revenue growth from games services exceeded 30% once
again. Notably, our net income increased by 44.3% year over year to
US$35.2 million during the quarter.
Our robust quarterly results demonstrate our operational success in
refining processes, enhancing the gamification of our flagship
applications, improving our gaming mechanics and optimizing user
acquisition. These efforts have empowered us to build a more
engaged community of users, reflected by a 13.6% year-over-year
increase in our group's average MAUs to 35.1 million. Our
high-value users also exhibited a great willingness to spend on
enhanced gamification features, driving the ARPPU[6] up
to US$7.35 in the third quarter of
2023, compared with US$6.89 in the
third quarter of 2022.
"Thanks to our consistent game iterations and engagement of our
existing Yalla user community, our two hard-core games have gained
traction in the MENA region. We see immense room for growth in this
sector and as such, we are determined to gradually increase our
investment in the mid-core and hard-core game business, unleashing
our growth potential in this flourishing market," Mr. Yang added.
"Moving forward, we remain confident in the growth opportunities
presented by MENA's increasingly pivotal role on the global stage
and the region's rapid digital transformation. As the largest
MENA-based online social networking and gaming company, we are
dedicated to building relationships locally and globally to broaden
our business horizons and fulfill local users' evolving online
social networking and entertainment needs."
Ms. Karen Hu, CFO of Yalla,
commented, "We delivered a robust third quarter performance,
highlighted by our record-high revenues and impressive net margin
enhancement. Our relentless efforts to streamline costs as well as
our enhanced, ROI-focused marketing strategy continued to yield
positive outcomes, enabling us to elevate our overall efficiency.
As a result, we improved our net margin to 41.4% and non-GAAP net
margin to 44.9% in the third quarter of 2023. As we head into the
fourth quarter, we will continue to execute our high-quality growth
strategy with focus on efficiency and profitability enhancement. We
believe our solid fundamentals and strong cash position will
support us well to capture future opportunities as we strive to
create sustainable value for our shareholders in the long run."
Third Quarter 2023 Financial Results
Revenues
Our revenues were US$85.2 million
in the third quarter of 2023, a 6.4% increase from US$80.1 million in the third quarter of 2022. The
increase was primarily driven by the broadening of our user base
and our enhanced monetization capability. Our average MAUs
increased by 13.6% from 30.9 million in the third quarter of 2022
to 35.1 million in the third quarter of 2023. Our solid revenue
growth was also partially attributable to the significant increase
in ARPPU, which grew from US$6.89 in
the third quarter of 2022 to US$7.35
in the third quarter of 2023.
In the third quarter of 2023, our revenues generated from
chatting services were US$53.9
million, and revenues from games services were US$31.2 million.
Costs and expenses
Our total costs and expenses were US$52.8
million in the third quarter of 2023, a 5.0% decrease from
US$55.6 million in the third quarter
of 2022.
Our cost of revenues was US$27.8
million in the third quarter of 2023, a 6.1% decrease from
US$29.6 million in the same period
last year, primarily due to lower technical service fees resulting
from more disciplined management. Cost of revenues as a percentage
of our total revenues decreased to 32.6% in the third quarter of
2023, compared with 36.9% in the third quarter of 2022.
Our selling and marketing expenses were US$11.3 million in the third quarter of 2023, a
5.5% decrease from US$12.0 million in
the same period last year, primarily driven by lower share-based
compensation expenses recognized in the third quarter of 2023.
Selling and marketing expenses as a percentage of our total
revenues decreased from 14.9% in the third quarter of 2022 to 13.3%
in the third quarter of 2023.
Our general and administrative expenses were US$7.3 million in the third quarter of 2023, a
14.5% decrease from US$8.6 million in
the same period last year, primarily driven by lower share-based
compensation expenses recognized in the third quarter of 2023.
General and administrative expenses as a percentage of our total
revenues decreased from 10.7% in the third quarter of 2022 to 8.6%
in the third quarter of 2023.
Our technology and product development expenses were
US$6.4 million in the third quarter
of 2023, a 16.6% increase from US$5.5
million in the same period last year, primarily due to an
increase in salaries and benefits for our technology and product
development staff to support the development of new businesses and
expansion of our product portfolio. Technology and product
development expenses as a percentage of our total revenues
increased from 6.9% in the third quarter of 2022 to 7.5% in the
third quarter of 2023.
Operating income
Operating income was US$32.4
million in the third quarter of 2023, a 32.3% increase from
US$24.5 million in the third quarter
of 2022.
Non-GAAP operating
income[7]
Non-GAAP operating income in the third quarter of 2023 was
US$35.4 million, a 20.4% increase
from US$29.5 million in the same period last year.
Interest income
Our interest income was US$5.6
million in the third quarter of 2023, compared with
US$0.8 million in the third quarter
of 2022, primarily due to a significant increase in interest rates
applicable to the Company's bank deposits and a continued increase
in the Company's cash position.
Income tax expense
Our income tax expense was US$0.71
million in the third quarter of 2023, a 10.2% decrease from
US$0.79 million in the third quarter
of 2022.
Net income
As a result of the foregoing, our net income was US$35.2 million in the third quarter of 2023, a
44.3% increase from US$24.4 million
in the third quarter of 2022.
Non-GAAP net income
Non-GAAP net income in the third quarter of 2023 was
US$38.3 million, a 30.3% increase
from US$29.4 million in the same
period last year.
Earnings per ordinary share
Basic and diluted earnings per ordinary share were US$0.23 and US$0.20, respectively, in the third quarter of
2023, while basic and diluted earnings per ordinary share were
US$0.16 and US$0.14, respectively, in the same period of
2022.
Non-GAAP earnings per ordinary
share[8]
Non-GAAP basic and diluted earnings per ordinary share were
US$0.24 and US$0.21, respectively, in the third quarter of
2023, compared with US$0.19 and
US$0.17, respectively, in the same
period of 2022.
Cash and cash equivalents, restricted cash, term deposits
and short-term investments
As of September 30, 2023, we had
cash and cash equivalents, restricted cash, term deposits and
short-term investments of US$545.1
million, compared with US$453.0
million as of December 31,
2022.
|
[6] "ARPPU"
refers to average revenues per paying user in a given period, which
is calculated by dividing (i) revenues for such period, by (ii) the
number of paying users for such period. When calculating the ARPPU,
we include revenues generated from Yalla, Yalla Ludo, Yalla
Parchis, 101 Okey Yalla (since the fourth quarter of 2022) and Ludo
Royal (since the third quarter of 2023) in a given
period.
|
|
[7] Non-GAAP
operating income represents operating income excluding share-based
compensation. Non-GAAP operating income is a non-GAAP financial
measure. See the sections entitled "Non-GAAP Financial Measures"
and "Reconciliations of GAAP and Non-GAAP Results" for more
information about the non-GAAP measures referred to in this press
release.
|
|
[8] Non-GAAP
earnings per ordinary share is non-GAAP net income attributable to
Yalla Group Limited's shareholders, divided by weighted average
number of basic and diluted shares outstanding. Non-GAAP net income
attributable to Yalla Group Limited's shareholders represents net
income attributable to Yalla Group Limited's shareholders,
excluding share-based compensation. Non-GAAP earnings per ordinary
share and non-GAAP net income attributable to Yalla Group Limited's
shareholders are non-GAAP financial measures. See the sections
entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP
and Non-GAAP Results" for more information about the non-GAAP
measures referred to in this press release.
|
Share repurchase program
Pursuant to the Company's share repurchase program beginning on
May 21, 2021, with an extended
expiration date of May 21, 2024, in
the third quarter of 2023, the Company repurchased 1,670,735
American depositary shares ("ADSs") representing 1,670,735 Class A
ordinary shares from the open market with cash for an aggregate
amount of approximately US$8.5
million. Cumulatively, the Company completed cash
repurchases in the open market of 3,972,876 ADSs, representing
3,972,876 Class A ordinary shares, for an aggregate amount of
approximately US$35.5 million, as of
September 30, 2023. The aggregate
value of ADSs and/or Class A ordinary shares that remain available
for purchase under the current share repurchase program was
US$114.5 million as of September 30, 2023.
Outlook
For the fourth quarter of
2023, Yalla currently expects revenues to be between
US$73.0 million and US$80.0 million.
The above outlook is based on current market conditions and
reflects the Company management's current and preliminary estimates
of market and operating conditions and customer demand, which are
all subject to change.
Conference Call
The Company's management will host an earnings conference call
on Monday, November 20, 2023, at
8:00 PM U.S. Eastern Time,
Tuesday, November 21, 2023, at
5:00 AM Dubai Time, or Tuesday, November 21, 2023, at 9:00 AM Beijing/Hong
Kong time.
Dial-in details for the earnings conference call are as
follows:
|
United States Toll
Free:
|
+1-888-317-6003
|
|
International:
|
+1-412-317-6061
|
|
United Arab Emirates
Toll Free:
|
80-003-570-3589
|
|
Mainland China Toll
Free:
|
400-120-6115
|
|
Hong Kong Toll
Free:
|
800-963-976
|
|
Access Code:
|
9043914
|
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
https://ir.yalla.com.
A replay of the conference call will be accessible until
November 27, 2023, by dialing the
following telephone numbers:
|
United States Toll
Free:
|
+1-877-344-7529
|
|
International:
|
+1-412-317-0088
|
|
Access Code:
|
5229914
|
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP financial measures, namely non-GAAP operating
income, non-GAAP net income, non-GAAP net margin and non-GAAP basic
and diluted earnings per ordinary share, as supplemental measures
to review and assess the Company's operating performance. The
presentation of the non-GAAP financial measures is not intended to
be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP. We
define non-GAAP operating income as operating income excluding
share-based compensation. We define non-GAAP net income as net
income excluding share-based compensation. We define non-GAAP net
margin as non-GAAP net income as a percentage of revenues. We
define non-GAAP net income attributable to Yalla Group Limited's
shareholders as net income attributable to Yalla Group Limited's
shareholders, excluding share-based compensation. We define
non-GAAP earnings per ordinary share as non-GAAP net income
attributable to Yalla Group Limited's shareholders, divided by the
weighted average number of basic and diluted shares
outstanding.
By excluding the impact of share-based compensation expenses,
which are non-cash charges, the Company believes that the non-GAAP
financial measures help identify underlying trends in its business
and enhance the overall understanding of the Company's past
performance and future prospects. Investors can better understand
the Company's operating and financial performance, compare business
trends among different reporting periods on a consistent basis and
assess its core operating results, as they exclude share-based
compensation expenses, which are not expected to result in cash
payments. The Company also believes that the non-GAAP financial
measures allow for greater visibility with respect to key metrics
used by the Company's management in its financial and operational
decision-making.
The non-GAAP financial measure is not defined under U.S. GAAP
and is not presented in accordance with U.S. GAAP. The non-GAAP
financial measure has limitations as analytical tools. One of the
key limitations of using the non-GAAP financial measures is that
they do not reflect all items of income and expense that affect the
Company's operations. Share-based compensation has been and may
continue to be incurred in the Company's business and is not
reflected in the presentation of non-GAAP financial measures.
Further, the non-GAAP financial measure may differ from the
non-GAAP information used by other companies, including peer
companies, and therefore their comparability may be limited.
The Company compensates for these limitations by providing the
relevant disclosure of its non-GAAP financial measures in the
reconciliations to the nearest U.S. GAAP performance measures, all
of which should be considered when evaluating its performance. The
Company encourages investors and others to review its financial
information in its entirety and not rely on a single financial
measure.
Reconciliations of GAAP and non-GAAP results are set forth at
the end of this press release.
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
MENA, with in-game voice chat and localized Majlis functionality.
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 games 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 and casual 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 MENA with 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
users.
For more information, please visit: https://ir.yalla.com.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements pursuant to the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to"
and similar statements. Statements that are not historical facts,
including statements about Yalla Group Limited's beliefs, plans and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding these and other risks is included in Yalla
Group Limited's filings with the SEC. All information provided in
this press release is as of the date of this press release, and
Yalla Group Limited does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please contact:
Yalla Group Limited
Investor Relations
Kerry Gao - IR Director
Tel: +86-571-8980-7962
Email: ir@yalla.com
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: yalla@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: yalla@tpg-ir.com
|
YALLA GROUP
LIMITED
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
As of
|
|
|
|
December
31,
2022
|
|
|
September 30,
2023
|
|
|
|
US$
|
|
|
US$
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
407,256,837
|
|
|
|
267,454,622
|
|
|
Restricted
cash
|
|
|
—
|
|
|
|
417,839
|
|
|
Term
deposits
|
|
|
20,000,000
|
|
|
|
236,761,209
|
|
|
Short-term
investments
|
|
|
25,788,304
|
|
|
|
40,476,760
|
|
|
Amounts due from a
related party
|
|
|
—
|
|
|
|
111,665
|
|
|
Prepayments and other
current assets
|
|
|
28,652,840
|
|
|
|
33,453,298
|
|
|
Total current
assets
|
|
|
481,697,981
|
|
|
|
578,675,393
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
2,121,613
|
|
|
|
1,952,303
|
|
|
Intangible asset,
net
|
|
|
1,328,470
|
|
|
|
1,198,768
|
|
|
Operating lease
right-of-use assets
|
|
|
1,950,364
|
|
|
|
2,993,403
|
|
|
Long-term
investments
|
|
|
3,833,750
|
|
|
|
1,328,491
|
|
|
Other assets
|
|
|
15,406,078
|
|
|
|
15,080,531
|
|
|
Total non-current
assets
|
|
|
24,640,275
|
|
|
|
22,553,496
|
|
|
Total
assets
|
|
|
506,338,256
|
|
|
|
601,228,889
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
5,382,276
|
|
|
|
1,147,827
|
|
|
Deferred
revenue
|
|
|
35,957,485
|
|
|
|
44,468,280
|
|
|
Operating lease
liabilities, current
|
|
|
858,452
|
|
|
|
1,286,661
|
|
|
Accrued expenses and
other current liabilities
|
|
|
22,821,168
|
|
|
|
24,017,537
|
|
|
Total current
liabilities
|
|
|
65,019,381
|
|
|
|
70,920,305
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
744,612
|
|
|
|
1,118,285
|
|
|
Amounts due to a
related party
|
|
|
709,789
|
|
|
|
616,904
|
|
|
Total non-current
liabilities
|
|
|
1,454,401
|
|
|
|
1,735,189
|
|
|
Total
liabilities
|
|
|
66,473,782
|
|
|
|
72,655,494
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
Shareholders' equity
of Yalla Group Limited
|
|
|
|
|
|
|
|
Class A Ordinary
Shares
|
|
|
13,356
|
|
|
|
13,726
|
|
|
Class B Ordinary
Shares
|
|
|
2,473
|
|
|
|
2,473
|
|
|
Additional paid-in
capital
|
|
|
294,406,395
|
|
|
|
309,383,994
|
|
|
Treasury
stock
|
|
|
(27,014,697)
|
|
|
|
(35,527,305)
|
|
|
Accumulated other
comprehensive loss
|
|
|
(1,701,111)
|
|
|
|
(2,862,193)
|
|
|
Retained
earnings
|
|
|
174,880,748
|
|
|
|
261,038,063
|
|
|
Total shareholders'
equity of Yalla Group Limited
|
|
|
440,587,164
|
|
|
|
532,048,758
|
|
|
Non-controlling
interests
|
|
|
(722,690)
|
|
|
|
(3,475,363)
|
|
|
Total
equity
|
|
|
439,864,474
|
|
|
|
528,573,395
|
|
|
Total liabilities
and equity
|
|
|
506,338,256
|
|
|
|
601,228,889
|
|
|
YALLA GROUP
LIMITED
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS
|
|
|
OF
OPERATIONS
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2022
|
|
|
June 30,
2023
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
|
September 30,
2023
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
Revenues
|
|
|
80,061,650
|
|
|
|
79,246,363
|
|
|
|
85,187,360
|
|
|
|
228,489,731
|
|
|
|
237,952,336
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(29,568,306)
|
|
|
|
(28,330,815)
|
|
|
|
(27,772,226)
|
|
|
|
(86,368,643)
|
|
|
|
(83,955,518)
|
|
|
Selling and marketing
expenses
|
|
|
(11,951,117)
|
|
|
|
(12,378,490)
|
|
|
|
(11,292,732)
|
|
|
|
(35,685,652)
|
|
|
|
(35,026,197)
|
|
|
General and
administrative expenses
|
|
|
(8,567,865)
|
|
|
|
(8,018,573)
|
|
|
|
(7,325,451)
|
|
|
|
(23,541,724)
|
|
|
|
(25,508,418)
|
|
|
Technology and product
development expenses
|
|
|
(5,487,884)
|
|
|
|
(6,586,078)
|
|
|
|
(6,396,426)
|
|
|
|
(19,199,167)
|
|
|
|
(20,393,692)
|
|
|
Total costs and
expenses
|
|
|
(55,575,172)
|
|
|
|
(55,313,956)
|
|
|
|
(52,786,835)
|
|
|
|
(164,795,186)
|
|
|
|
(164,883,825)
|
|
|
Operating
income
|
|
|
24,486,478
|
|
|
|
23,932,407
|
|
|
|
32,400,525
|
|
|
|
63,694,545
|
|
|
|
73,068,511
|
|
|
Interest
income
|
|
|
777,581
|
|
|
|
4,623,275
|
|
|
|
5,612,861
|
|
|
|
1,005,132
|
|
|
|
13,354,425
|
|
|
Government
grants
|
|
|
51,483
|
|
|
|
4,560
|
|
|
|
228
|
|
|
|
212,015
|
|
|
|
182,447
|
|
|
Investment (loss)
income
|
|
|
(104,944)
|
|
|
|
529,308
|
|
|
|
435,545
|
|
|
|
(255,715)
|
|
|
|
1,456,742
|
|
|
Impairment loss of
investments
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,509,480)
|
|
|
|
—
|
|
|
|
(2,509,480)
|
|
|
Income before income
taxes
|
|
|
25,210,598
|
|
|
|
29,089,550
|
|
|
|
35,939,679
|
|
|
|
64,655,977
|
|
|
|
85,552,645
|
|
|
Income tax
expense
|
|
|
(788,985)
|
|
|
|
(821,149)
|
|
|
|
(708,673)
|
|
|
|
(2,182,641)
|
|
|
|
(2,146,180)
|
|
|
Net
income
|
|
|
24,421,613
|
|
|
|
28,268,401
|
|
|
|
35,231,006
|
|
|
|
62,473,336
|
|
|
|
83,406,465
|
|
|
Net loss attributable
to non-controlling interests
|
|
|
206,347
|
|
|
|
1,202,160
|
|
|
|
994,099
|
|
|
|
520,944
|
|
|
|
2,750,850
|
|
|
Net income
attributable to Yalla Group
Limited's shareholders
|
|
|
24,627,960
|
|
|
|
29,470,561
|
|
|
|
36,225,105
|
|
|
|
62,994,280
|
|
|
|
86,157,315
|
|
|
Earnings per
ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
0.16
|
|
|
|
0.19
|
|
|
|
0.23
|
|
|
|
0.41
|
|
|
|
0.54
|
|
|
——Diluted
|
|
|
0.14
|
|
|
|
0.16
|
|
|
|
0.20
|
|
|
|
0.36
|
|
|
|
0.47
|
|
|
Weighted average
number of shares
outstanding used in computing earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
155,190,724
|
|
|
|
158,871,859
|
|
|
|
160,554,831
|
|
|
|
152,244,358
|
|
|
|
159,134,347
|
|
|
——Diluted
|
|
|
177,347,900
|
|
|
|
180,752,549
|
|
|
|
183,111,650
|
|
|
|
176,347,667
|
|
|
|
181,460,639
|
|
Share-based compensation was allocated in cost of revenues,
selling and marketing expenses, general and administrative expenses
and technology and product development expenses as follows:
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2022
|
|
|
June 30,
2023
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
|
September 30,
2023
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
Cost of
revenues
|
|
|
1,065,549
|
|
|
|
923,513
|
|
|
|
627,760
|
|
|
|
3,914,210
|
|
|
|
2,581,522
|
|
|
Selling and marketing
expenses
|
|
|
1,059,009
|
|
|
|
1,014,371
|
|
|
|
532,001
|
|
|
|
4,755,921
|
|
|
|
2,517,707
|
|
|
General and
administrative expenses
|
|
|
2,462,675
|
|
|
|
3,242,981
|
|
|
|
1,633,262
|
|
|
|
11,788,894
|
|
|
|
8,121,521
|
|
|
Technology and product
development expenses
|
|
|
379,994
|
|
|
|
315,173
|
|
|
|
255,677
|
|
|
|
1,048,923
|
|
|
|
920,127
|
|
|
Total share-based
compensation expenses
|
|
|
4,967,227
|
|
|
|
5,496,038
|
|
|
|
3,048,700
|
|
|
|
21,507,948
|
|
|
|
14,140,877
|
|
|
YALLA GROUP
LIMITED
|
|
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2022
|
|
|
June 30,
2023
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
|
September 30,
2023
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
Operating
income
|
|
|
24,486,478
|
|
|
|
23,932,407
|
|
|
|
32,400,525
|
|
|
|
63,694,545
|
|
|
|
73,068,511
|
|
|
Share-based
compensation expenses
|
|
|
4,967,227
|
|
|
|
5,496,038
|
|
|
|
3,048,700
|
|
|
|
21,507,948
|
|
|
|
14,140,877
|
|
|
Non-GAAP operating
income
|
|
|
29,453,705
|
|
|
|
29,428,445
|
|
|
|
35,449,225
|
|
|
|
85,202,493
|
|
|
|
87,209,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
24,421,613
|
|
|
|
28,268,401
|
|
|
|
35,231,006
|
|
|
|
62,473,336
|
|
|
|
83,406,465
|
|
|
Share-based
compensation expenses,
net of tax
effect of nil
|
|
|
4,967,227
|
|
|
|
5,496,038
|
|
|
|
3,048,700
|
|
|
|
21,507,948
|
|
|
|
14,140,877
|
|
|
Non-GAAP net
income
|
|
|
29,388,840
|
|
|
|
33,764,439
|
|
|
|
38,279,706
|
|
|
|
83,981,284
|
|
|
|
97,547,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Yalla
Group Limited's shareholders
|
|
|
24,627,960
|
|
|
|
29,470,561
|
|
|
|
36,225,105
|
|
|
|
62,994,280
|
|
|
|
86,157,315
|
|
|
Share-based
compensation expenses,
net of tax
effect of nil
|
|
|
4,967,227
|
|
|
|
5,496,038
|
|
|
|
3,048,700
|
|
|
|
21,507,948
|
|
|
|
14,140,877
|
|
|
Non-GAAP net income
attributable to
Yalla Group Limited's shareholders
|
|
|
29,595,187
|
|
|
|
34,966,599
|
|
|
|
39,273,805
|
|
|
|
84,502,228
|
|
|
|
100,298,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
0.19
|
|
|
|
0.22
|
|
|
|
0.24
|
|
|
|
0.56
|
|
|
|
0.63
|
|
|
——Diluted
|
|
|
0.17
|
|
|
|
0.19
|
|
|
|
0.21
|
|
|
|
0.48
|
|
|
|
0.55
|
|
|
Weighted average
number of shares
outstanding used in computing earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
155,190,724
|
|
|
|
158,871,859
|
|
|
|
160,554,831
|
|
|
|
152,244,358
|
|
|
|
159,134,347
|
|
|
——Diluted
|
|
|
177,347,900
|
|
|
|
180,752,549
|
|
|
|
183,111,650
|
|
|
|
176,347,667
|
|
|
|
181,460,639
|
|
View original
content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-third-quarter-2023-financial-results-301993465.html
SOURCE Yalla Group Limited