Yalla Group announces strong financial results for Q1, 2025 reporting steady growth in revenues
Average Monthly Active Users (MAUs) grows by 17.9% to 44.6 million
UAE, Dubai: 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 first quarter of the fiscal year 2025, ending on March 31.
The company reported quarterly revenue of AED 308.2 million (USD 83.9 million), a 6.5 percent increase compared to the same period last year. Net income for the quarter rose to AED 133.7 million (USD 36.4 million), marking a 17 percent year-over-year increase.
On a non-GAAP basis, net income reached AED 143.6 million (USD 39.1 million), up 10.9 percent from the same quarter in 2024, with a non-GAAP net margin of 46.6 percent.
Average Monthly Active Users (MAUs) grew to 44.6 million, a 17.9 percent increase from 37.8 million in the corresponding period last year, underscoring the continued expansion and engagement of Yalla's user base across the region.
Outperformed expectations
Speaking on the occasion, Mr. Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla said: 'We kicked off 2025 with a strong and promising first quarter. Despite seasonal factors such as Ramadan, we outperformed expectations, reflecting the resilience of our business model and the effectiveness of our long-term growth strategy.
"Our steadfast commitment to enhancing user experience, improving operational efficiency, and deepening engagement across our platforms has contributed to healthy momentum. The improvements we've made to user acquisition and gamification are driving higher retention and increasing the value we deliver to our user base.'
Tao highlighted that expanding the application of artificial intelligence technologies to analyze user behavior and manage data has significantly enhanced decision-making efficiency.
He concluded: "Building on the continued success of our platforms and the company's ongoing development, we are leveraging this growth momentum to increase the value we deliver. We are committed to achieving sustainable returns for our shareholders and strengthening our leadership in the regional digital communication and entertainment sector."
Sustainable growth
For his part, Saifi Ismail, Group President at Yalla Group, said: 'We are very pleased with the strong operational results achieved this quarter, especially given the seasonal impact of Ramadan. The impressive growth in monthly active users, driven organically and without additional marketing spend, highlights the effectiveness of our product strategy and the growing strength of our brand across the region. This performance validates our focus on scalable, efficient growth and reinforces the solid foundation we've built for continued expansion.'
"As the global economy adjusts to shifting macroeconomic dynamics, the MENA region stands out for its digital readiness, something which aligns well with our long-term strategy. We are particularly proud of the progress we've made in AI deployment, notably in our proprietary content moderation platform, which now leads the region in recognition speed and accuracy."
He added: "As we look to the future, we are committed to driving sustainable, high-quality growth through product innovation, operational excellence, and enhanced user experience. Our continued investment in AI and data analytics is enabling smarter decision-making and greater agility in responding to market trends. These capabilities, combined with our strong regional positioning and scalable platform, put us in an excellent position to continue delivering value to both our users and shareholders.'
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 game 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, WeMuslim, a product that supports Arabic users in observing their customs, 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.
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