Yalla Group Limited (YALA) Reports Q3 Loss of $0.43 on Revenues of $33.8M

Yalla Group Limited (NYSE: YALA) reported Q3 EPS of ($0.43), versus $0.07 reported last year. Revenue for the quarter came in at $33.8 million, versus $17.76 million reported last year.

Third Quarter Ended September 30, 2020 Financial and Operating Highlights

• Our revenues were US$33.8 million in the third quarter of 2020, representing an increase of 90.4% from the third quarter of 2019.- Revenues generated from chatting services in the third quarter of 2020 were US$30.3 million. - Revenues generated from games services in the third quarter of 2020 were US$3.5 million.
• Net loss was US$31.0 million in the third quarter, and our net loss margin was 91.6%.
• Non-GAAP Net income[1] was US$15.5 million in the third quarter of 2020, representing an increase of 68.3% from the third quarter of 2019. Our non-GAAP net margin was 45.8% in the third quarter of 2020.
• Average MAUs[2] increased by 358.9% to 14.3 million in the third quarter from 3.1 million in the same period 2019.
• The number of paying users[3] on our platform increased by 894.9% to 5.1 million in the third quarter of 2020 from 0.5 million in the same period of 2019.

"In the third quarter of 2020, we delivered robust group performance, further strengthening our position as the pioneering voice-centric mobile social networking and entertainment platform in MENA," said Mr.Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla. "Our revenue and non-GAAP net income increased, 90.4% and 68.3% year-over-year respectively, which was driven by strong growth of Yalla and Yalla Ludo and the proliferation of our highly engaged and interactive community."

"In the third quarter, Yalla Ludo's average MAUs and paying users increased significantly by over 20 and 200 times year-over-year, respectively. The rapidly growing popularity of Yalla Ludo, which was selected by numerous app stores to be displayed on their respective home pages, is a testament to its superior social features, which are grounded in the cultural norms of the region and enable users to enjoy real-time voice interactions while playing board games. For Yalla, our flagship mobile application, we maintained a sharp focus on building a tight-knit and high-quality user community. In the third quarter, Yalla's average MAUs and paying users both more than doubled year-over-year. Moving forward, we will remain dedicated to strengthening our vibrant voice-centric online community and localizing our product offerings to further optimize the user experience," concluded Mr.Yang.

"We are very pleased to report our operating and financial performance for the first time as a public company, where our strong monetization capabilities led to healthy top and bottom line performance in the third quarter," said Ms. Karen Hu, Chief Financial Officer of Yalla. "Revenues reached US$33.8 million in the third quarter, while our non-GAAP net income was US$15.5 million. We were also able to maintain a high non-GAAP net margin of 45.8%. We are confident in our positioning and ability to capture further significant growth in MENA's underserved online social networking and entertainment market."

For earnings history and earnings-related data on Yalla Group Limited (YALA) click here.

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