Yalla Group announces strong financial results for Q1, 2024 reporting steady growth in revenues
Yalla Group Limited, the largest Middle East and North Africa (MENA)-based online social networking and gaming company, has announced its unaudited financial results for the first quarter of the fiscal year 2024, ending on March 31.
The financial results revealed that Yalla’s quarterly revenues surpassed the AED 289 million mark (US$78.7 million), marking a 7.1% increase from the same quarter last year.
Additionally, the company experienced substantial growth in Q1 net income, reaching AED 114.2 million (US $31.1 million), a significant 56.2% increase over the same period in 2023.
Yalla’s non-GAAP net income also saw a notable rise, climbing to AED 129.6 million ($35.3 million), which represents a 38.4% increase from US$25.5 million in the first quarter of the previous year, with a non-GAAP net margin of 44.8%.
Furthermore, average Monthly Active Users (MAUs) grew by 14.6% to 37.8 million in the first quarter of 2024, up from 33 million in the corresponding quarter of 2023.
However, the number of paying users on Yalla’s platforms experienced a decline of 5.2%, dropping to 12.8 million in the first quarter of 2024 from 13.5 million in the first quarter of 2023.
Speaking on the occasion, Mr. Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla said: “We kicked off 2024 with a solid set of operational and financial results. In the first quarter, our revenues increased by 7.1% year-over-year, landing in the upper end of our guidance and once again demonstrating the remarkable strength of our flagship applications”.
“We continued to explore and invest in Yalla Game with a strategic focus on new game development. We are actively communicating with potential premium partners, and just recently, Yalla joined the UK Interactive Entertainment Association (UKIE), deepening our commitment to enhancing connectivity within the global gaming industry and enriching the Middle Eastern gaming community with diverse, high-quality game content.
“We are confident in the vast opportunities in MENA’s gaming industry. By capitalizing on our extensive expertise and resources in the MENA region, we are well-positioned to unlock the growth potential in the addressable market. As always, we are dedicated to delivering high-quality, tailored digital products that cater to the evolving needs of local users,” Mr. Yang concluded.
For his part, Saifi Ismail, Group President at Yalla Group,said: “ This quarter’s impressive financial results demonstrate Yalla Group’s strong momentum and our ability to consistently outperform expectations. With revenues and net incomes surging, we are not just achieving growth; we are accelerating it. Our strategy of diversifying offerings and enhancing user engagement continues to pay dividends, positioning us uniquely in the MENA region’s vibrant social networking and gaming landscape.”
He added: “At Yalla Group, we are thrilled to see our strategies bearing fruit in such a robust way. Our focus has always been on creating a seamless and engaging experience for our users, which is reflected in our strong quarterly performance. As we continue to innovate and grow, we are confident in our ability to maintain this momentum and further solidify our leadership in the MENA digital ecosystem”.
