ABU DHABI, 14th March, 2023 (WAM) — Yalla Group Limited (Yalla or the Company) (NYSE: YALA) has announced its unaudited financial results for the fourth quarter and full year ended on 31st December, 2022.
Yalla continued to focus on quality growth in 2022, with full year revenue hitting AED 1.1 billion, (US$303.6 million), an increase of 11.2 percent compared to AED 1.0 billion in 2021. The group also recorded a net margin of 26.0 percent and a non-GAAP net margin of 34.8 percent for the fiscal year 2022.
The Middle East and North Africa (MENA)-based online social networking and gaming company has also reported solid fourth-quarter results with Q4 revenues reaching AED 275.9 million (US$75.1 million), representing a notable increase of 11.2 percent 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 percent, underscoring the company’s strong monetisation capabilities and disciplined SG&A spending.
Furthermore, Yalla’s average monthly active users (MAUs) increased by 14.0 percent 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 percent 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 percent 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 percent year-over-year thanks to our continuous efforts to enhance product gamification and boost user engagement. Meanwhile, we continued to improve our monetisation capability, driving our paying users to 12.5 million, an increase of 47.8 percent year-over-year,” Tao noted.