Yalla Group Limited (YALA)

Yalla Group Limited Financial Report

Report Date: 2025-04-30
Report Period: Full Year 2024
Form Type: 20-F

Executive Summary

Yalla Group Limited (NYSE: YALA) operates the leading social networking gaming platform in the Middle East and North Africa (MENA). For the full year ended December 31, 2024, the company delivered:

• Revenue: $3.397 billion (up 6.6% YoY)
• Net Income: $134.15 million (up 18.7% YoY)
• Net Margin: 3.95% (vs. 3.55% in 2023)

Despite no long-term debt, the company maintained strong liquidity with $488 million in cash and equivalents.

Profit & Revenue Analysis

1. User Growth

   • Average MAUs rose to 414 million in Q4 2024 (+14.4% YoY)
   • Paying users reached 123 million (+3.4% YoY)

2. Monetization

   • ARPPU climbed to $72 (+8.2% YoY)
   • Virtual gifts, VIP upgrades and new casual games drove spending

3. Expense Control

   • Marketing spend fell to 9.2% of revenue (from 14.2%)
   • R&D investment increased to support new features and titles

Liquidity & Capital Structure

• Cash & Equivalents: $488 million
• Term Deposits & Short-Term Investments: $166 million
• No Debt: Zero long-term borrowings as of Dec 2024

Drivers of Performance

• Localized Appeal: Cultural events for Ramadan/Eid and Arabic UI drove adoption.
• Voice-Centric “Majlis” Experience: Unique positioning vs. text-centric apps.
• Scalable Cloud Infrastructure: High uptime and low incremental cost.

Risks & Challenges

• Regulatory: Data privacy (UAE, China), potential VoIP licensing.
• Competition: Global social apps and regional game studios.
• Geopolitics: MENA instability could affect user engagement.

Pros & Cons

Pros:

• Market leader in MENA voice-chat social gaming
• Strong free cash flow, zero debt
• High user engagement and cultural fit

Cons:

• Heavy reliance on third-party payment fees (~35% of rev.)
• Limited diversification outside MENA
• Possible regulatory compliance costs rising

Prepared by Financial Analytics Team

Key Q4 2024 Metrics:

• Average MAUs: 414 million (+14.4% YoY)
• Paying Users: 123 million (+3.4% YoY)
• ARPPU: $72 (+8.2% YoY)
• Q4 Revenue: $908 million
• Q4 Net Income: $34.2 million

Yalla Group is on a strong upward trajectory, driven by unique voice-based social features that mirror traditional MENA gatherings. With no debt and ample cash reserves, the balance sheet is robust. Continued success depends on navigating regulatory landscapes in the UAE and China, expanding beyond core MENA markets, and sustaining cost discipline. New game launches and localized content will be critical to retain engagement and monetize the large free user base while mitigating geopolitical and competitive risks.