DUBAI, UAE, March 13,
2023 /PRNewswire/ -- 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 fourth quarter and full year ended
December 31, 2022.
Fourth Quarter 2022 Financial and Operating
Highlights
- Revenues were US$75.1
million in the fourth quarter of 2022, representing an
increase of 11.2% from the fourth quarter of 2021.
- Revenues generated from chatting services in the fourth quarter
of 2022 were US$54.0 million.
- Revenues generated from games services in the fourth quarter of
2022 were US$21.1 million.
- Net income was US$16.6
million in the fourth quarter of 2022, compared with
US$19.1 million in the fourth quarter
of 2021. Net margin[1] was 22.1% in the fourth quarter
of 2022.
- Non-GAAP net income[2] was US$21.7 million in the fourth quarter of 2022,
compared with US$27.6 million in the
fourth quarter of 2021. Non-GAAP net margin[3] was 29.0%
in the fourth quarter of 2022.
- Average MAUs[4] increased by 14.0% to 32.0
million in the fourth quarter of 2022 from 28.1 million in the
fourth quarter of 2021.
- The number of paying users[5] on our platform
increased by 47.8% to 12.5 million in the fourth quarter of 2022
from 8.4 million in the fourth quarter of 2021.
[1] Net
margin is net income as a percentage of revenues.
|
[2] Non-GAAP
net income represents net income excluding share-based
compensation. Non-GAAP net income is a non-GAAP financial measure.
See the sections entitled "Non-GAAP Financial Measures" and
"Reconciliation of GAAP and Non-GAAP Results" for more information
about the non-GAAP measures referred to in this press
release.
|
[3] Non-GAAP
net margin is non-GAAP net income as a percentage of
revenues.
|
[4] "Average
MAUs" refers to the average monthly active users in a given period
calculated by dividing (i) the sum of active users for each month
of such period, by (ii) the number of months in such period.
"Active users" refers to registered users who accessed any of our
main mobile applications at least once during a given period.
Yalla, Yalla Ludo and Yalla Parchis have been our main mobile
applications for the periods presented herein, and YallaChat
and 101 Okey
Yalla have been our main mobile applications since the fourth
quarter of 2022.
|
[5] "Paying
users" refers to registered users who played a game or purchased
our virtual items or upgrade services using virtual currencies on
our main mobile applications at least once in a given period,
except for users who receive all of their virtual currencies
directly or indirectly from us for free. "Registered users" refers
to users who have registered accounts on our main mobile
applications as of a given time; a registered user is not
necessarily a unique user, as an individual may register multiple
accounts on our main mobile applications.
|
Full Year 2022 Highlights
- Revenues were US$303.6
million in 2022, representing an increase of 11.2% from
2021.
- Revenues generated from chatting services in 2022 were
US$215.0 million.
- Revenues generated from games services in 2022 were US$88.6 million.
- Net income was US$79.0
million in 2022, compared with US$82.6 million in 2021. Net margin was 26.0% in
2022.
- Non-GAAP net income was US$105.7
million in 2022, compared with US$126.5 million in 2021. Non-GAAP net margin was
34.8% in 2022.
Key Operating
Data
|
For the three months
ended
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
|
|
|
|
Average MAUs (in
thousands)
|
|
28,060
|
|
|
31,987
|
|
|
|
|
|
Paying users (in
thousands)
|
|
8,429
|
|
|
12,457
|
"2022 was a challenging year. Amid macro 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.
"In the fourth quarter, our revenues increased by 11.2%
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% year-over-year thanks
to our continuous efforts to enhance product gamification and boost
user engagement. Meanwhile, we continued to improve our
monetization capability, driving our paying users to 12.5 million,
an increase of 47.8% year-over-year.
"Our flagship applications maintained stable operations and our
new initiatives progressed steadily during the quarter. We also
launched Yalla Game's first internal game studio and completed the
initial round of beta testing on our first two hard-core games for
distribution in MENA. On a related note, Frost and Sullivan
recently issued a research report recognizing Yalla as the largest
MENA-based online social networking and gaming company in terms of
revenue in 2022. We believe that as the region's leader across both
social networking and gaming, we are uniquely positioned to
capitalize on MENA's strong digitalization trend and unleash
massive growth potential," Mr. Yang concluded.
"We continued to focus on quality growth in 2022, with full-year
revenue increasing to US$303.6
million, a net margin of 26.0% and a non-GAAP net margin of
34.8%," said Ms. Karen Hu, Chief
Financial Officer of Yalla. "Despite external challenges, our
revenue recorded solid year-over-year growth in the fourth quarter
of 2022, a testament to our effective growth strategy. Furthermore,
we achieved a healthy profitability level during the quarter as we
firmly executed our refined operations process - our GAAP net
margin was 22.1%, and excluding share-based compensation, our
non-GAAP net margin was 29.0%. Moving forward, we will continue to
pursue quality development, improve operational efficiency and
invest in our Yalla ecosystem. Supported by our deep local insights
and solid fundamentals, we are well-positioned to navigate the
market dynamics and seize future growth opportunities. As always,
we are committed to creating sustainable, long-term value for our
stakeholders."
Fourth Quarter 2022 Financial Results
Revenues
Our revenues were US$75.1 million
in the fourth quarter of 2022, an 11.2% increase from US$67.6 million in the fourth quarter of 2021.
The increase was primarily driven by the broadening of our user
base and our enhanced monetization capability. Our average MAUs
increased by 14.0%, from 28.1 million in the fourth quarter of 2021
to 32.0 million in the fourth quarter of 2022. Our solid revenue
growth was also partially attributable to the significant increase
in the number of paying users, which grew from 8.4 million in the
fourth quarter of 2021 to 12.5 million in the fourth quarter of
2022.
In the fourth quarter of 2022, our revenues generated from
chatting services were US$54.0
million, and revenues from games services were US$21.1 million.
Costs and expenses
Our total costs and expenses were US$60.1
million in the fourth quarter of 2022, compared with
US$49.3 million in the fourth quarter
of 2021. The increase was primarily due to our expanding business
scale.
Our cost of revenues was US$27.4
million in the fourth quarter of 2022, a 14.7% increase from
US$23.9 million in the same period
last year, primarily due to an increase in technical service fees
resulting from the expansion of our product portfolio, as well as
an increase in salaries and benefits resulting from the expansion
of the operation and maintenance team. Cost of revenues as a
percentage of our total revenues increased from 35.4% in the fourth
quarter of 2021 to 36.5% in the fourth quarter of 2022.
Our selling and marketing expenses were US$14.3 million in the fourth quarter of 2022, a
7.0% increase from US$13.3 million in
the same period last year, primarily due to higher advertising and
market promotion expenses driven by our continued user acquisition
efforts and expanding product portfolio. Selling and marketing
expenses as a percentage of our total revenues decreased from 19.7%
in the fourth quarter of 2021 to 19.0% in the fourth quarter of
2022.
Our general and administrative expenses were US$13.0 million in the fourth quarter of 2022, a
60.4% increase from US$8.1 million in
the same period last year, primarily due to an increase in
incentive compensation. General and administrative expenses as a
percentage of our total revenues increased from 12.0% in the fourth
quarter of 2021 to 17.4% in the fourth quarter of 2022.
Our technology and product development expenses were
US$5.4 million in the fourth quarter
of 2022, a 37.3% increase from US$3.9
million in the same period last year, primarily due to an
increase in salaries and benefits for our technology and product
development staff, driven by an increase in the headcount of our
technology and product development staff to support the development
of new businesses and expansion of our product portfolio.
Technology and product development expenses as a percentage of our
total revenues increased from 5.8% in the fourth quarter of 2021 to
7.2% in the fourth quarter of 2022.
Operating income
Operating income was US$15.0
million in the fourth quarter of 2022, compared with of
US$18.3 million in the fourth quarter
of 2021.
Non-GAAP operating
income[6]
Non-GAAP operating income in the fourth quarter of 2022 was
US$20.2 million, compared with
US$26.8 million in the same period
last year.
Income tax expense
Our income tax expense was US$0.42
million in the fourth quarter of 2022, compared with
US$0.79 million in the fourth quarter
of 2021.
Net income
As a result of the foregoing, our net income was US$16.6 million in the fourth quarter of 2022,
compared with US$19.1 million in the
fourth quarter of 2021.
Non-GAAP net income
Non-GAAP net income in the fourth quarter of 2022 was
US$21.7 million, compared with
US$27.6 million in the same period
last year.
Earnings per ordinary share
Basic and diluted earnings per ordinary share were US$0.11 and US$0.09
respectively in the fourth quarter of 2022, while basic and diluted
earnings per ordinary share were US$0.13 and US$0.11
respectively in the same period of 2021.
Non-GAAP earnings per ordinary
share[7]
Non-GAAP basic and diluted earnings per ordinary share were
US$0.14 and US$0.12 respectively in the fourth quarter of
2022, compared with US$0.18 and
US$0.16 respectively in the same
period of 2021.
Cash and cash equivalents
As of December 31, 2022, we had
cash and cash equivalents of US$407.3
million, compared with cash and cash equivalents of
US$391.2 million as of September 30, 2022.
Share repurchase program
Pursuant to the share repurchase program announced on
May 21, 2021, with an extended
expiration date of May 21, 2023, the
Company has repurchased 2,302,141 American depositary shares
("ADSs") as of December 31, 2022,
representing 2,302,141 Class A ordinary shares, from the open
market with cash for an aggregate amount of approximately
US$27.0 million. The aggregate value
of ADSs and/or Class A ordinary shares that may yet be purchased
under the share repurchase program was US$123.0 million as of December 31, 2022.
[6] Non-GAAP
operating income represents operating income excluding share-based
compensation. Non-GAAP operating income is a non-GAAP financial
measure. See the sections entitled "Non-GAAP Financial Measures"
and "Reconciliation of GAAP and Non-GAAP Results" for more
information about the non-GAAP measures referred to in this press
release.
[7] Non-GAAP
earnings per ordinary share is non-GAAP net income attributable to
Yalla Group Limited's shareholders, divided by weighted average
number of basic and diluted shares outstanding. Non-GAAP earnings
per ordinary share is a non-GAAP financial measure. See the
sections entitled "Non-GAAP Financial Measures" and "Reconciliation
of GAAP and Non-GAAP Results" for more information about the
non-GAAP measures referred to in this press release.
|
Full Year 2022 Financial
Results
Revenues
Our revenues were US$303.6 million
in 2022, an 11.2% increase from US$273.1
million in 2021. The increase was primarily driven by the
user base expansion across the Yalla and Yalla Ludo mobile
applications as well as monetization capability enhancements.
Our revenues generated from chatting services were US$215.0 million in 2022, and our revenues
generated from games services were US$88.6
million in 2022.
Costs and expenses
Our total costs and expenses were US$224.9 million in 2022, compared with
US$190.1 million in 2021. The
increase was primarily due to our expanding business scale.
Our cost of revenues was US$113.8
million in 2022, compared with US$95.1 million last year. The increase was
mainly due to an increase in technical service fees resulting from
the expansion of our product portfolio as well as an increase in
salaries and benefits resulting from the expansion of the operation
and maintenance team. Cost of revenues as a percentage of our total
revenues increased from 34.8% in 2021 to 37.5% in 2022.
Our selling and marketing expenses were US$49.9 million in 2022, a 17.8% increase from
US$42.4 million in 2021, primarily
due to higher advertising and market promotion expenses driven by
our continued user acquisition efforts and expanding product
portfolio. Selling and marketing expenses as a percentage of our
total revenues increased from 15.5% in 2021 to 16.4% in 2022.
Our general and administrative expenses were US$36.6 million in 2022, a 4.4% decrease from
US$38.3 million in 2021, primarily
driven by lower share-based compensation recognized in 2022, and
partially offset by an increase in salaries and other benefits for
our general and administrative staff. General and administrative
expenses as a percentage of our total revenues decreased from 14.0%
in 2021 to 12.0% in 2022.
Our technology and product development expenses were
US$24.6 million in 2022, a 72.0%
increase from US$14.3 million in
2021, primarily due to an increase in salaries and benefits for our
technology and product development staff, driven by an increase in
the headcount of our technology and product development staff to
support the development of new businesses and expansion of our
product portfolio. Technology and product development expenses as a
percentage of our total revenues increased from 5.2% in 2021 to
8.1% in 2022.
Operating income
Operating income was US$78.7
million in 2022, compared with US$83.0 million in 2021.
Non-GAAP operating income
Non-GAAP operating income in 2022 was US$105.4 million, compared with US$127.0 million in 2021.
Income tax expense
Our income tax expense was US$2.6
million in 2022, compared with US$2.0
million in 2021.
Net income
Our net income was US$79.0 million
in 2022, compared with net income of US$82.6
million in 2021.
Non-GAAP net income
Non-GAAP net income in 2022 was US$105.7
million, compared with US$126.5
million in 2021.
Earnings per ordinary share
Basic and diluted earnings per ordinary share were US$0.52 and US$0.45
in 2022, compared with US$0.56 and
US$0.46 respectively in 2021.
Non-GAAP earnings per ordinary share
Non-GAAP basic and diluted earnings per ordinary share were
US$0.69 and US$0.60 respectively, compared with US$0.85 and US$0.70
respectively in 2021.
Outlook
For the first quarter of 2023, the management of the Company
currently expects revenues to be between US$68.0 million and US$75.0 million.
The above outlook is based on the current market conditions and
reflects the Company management's current and preliminary estimates
of market and operating conditions and customer demand, which are
all subject to change.
Conference Call
The Company's management will host an earnings conference call
on Monday, March 13, 2023, at
8:00 P.M. U.S. Eastern Time,
Tuesday, March 14, 2023, at
4:00 A.M. Dubai Time, or Tuesday, March 14, 2023, at 8:00 A.M. Beijing/Hong
Kong time.
Dial-in details for the earnings conference call are as
follows:
United States Toll
Free:
|
+1-888-317-6003
|
International:
|
+1-412-317-6061
|
United Arab Emirates
Toll Free:
|
80-003-570-3589
|
Mainland China Toll
Free:
|
400-120-6115
|
Hong Kong Toll
Free:
|
800-963-976
|
Access Code:
|
3772440
|
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
https://ir.yallagroup.com.
A replay of the conference call will be accessible until
March 20, 2023, by dialing the
following telephone numbers:
United States Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Access Code:
|
2973307
|
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP financial measures, namely non-GAAP operating
income, non-GAAP net income, non-GAAP net margin and non-GAAP basic
and diluted earnings per ordinary share, as supplemental measures
to review and assess the Company's operating performance. The
presentation of the non-GAAP financial measures is not intended to
be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP. We
define non-GAAP operating income as operating income excluding
share-based compensation. We define non-GAAP net income as net
income excluding share-based compensation. We define non-GAAP net
margin as non-GAAP net income as a percentage of revenues. We
define non-GAAP net income attributable to Yalla Group Limited's
shareholders as net income attributable to Yalla Group Limited's
shareholders, excluding share-based compensation. We define
non-GAAP earnings per ordinary share as non-GAAP net income
attributable to Yalla Group Limited's shareholders, divided by the
weighted average number of basic and diluted shares
outstanding.
By excluding the impact of share-based compensation expenses,
which are non-cash charges, the Company believes that the non-GAAP
financial measures help identify underlying trends in its business
and enhance the overall understanding of the Company's past
performance and future prospects. Investors can better understand
the Company's operating and financial performance, compare business
trends among different reporting periods on a consistent basis and
assess its core operating results, as they exclude share-based
compensation expenses, which are not expected to result in cash
payments. The Company also believes that the non-GAAP financial
measures allow for greater visibility with respect to key metrics
used by the Company's management in its financial and operational
decision-making.
The non-GAAP financial measure is not defined under U.S. GAAP
and is not presented in accordance with U.S. GAAP. The non-GAAP
financial measure has limitations as analytical tools. One of the
key limitations of using the non-GAAP financial measures is that
they do not reflect all items of income and expense that affect the
Company's operations. Share-based compensation has been and may
continue to be incurred in the Company's business and is not
reflected in the presentation of non-GAAP financial measures.
Further, the non-GAAP financial measure may differ from the
non-GAAP information used by other companies, including peer
companies, and therefore their comparability may be limited.
The Company compensates for these limitations by providing the
relevant disclosure of its non-GAAP financial measures in the
reconciliations to the nearest U.S. GAAP performance measures, all
of which should be considered when evaluating its performance. The
Company encourages investors and others to review its financial
information in its entirety and not rely on a single financial
measure.
Reconciliation of GAAP and non-GAAP results is set forth at the
end of this press release.
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 games 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; Waha, a social networking product featuring 3-D avatars; 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.
For more information, please visit:
https://ir.yallagroup.com.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements pursuant to the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to"
and similar statements. Statements that are not historical facts,
including statements about Yalla Group Limited's beliefs, plans and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding these and other risks is included in Yalla
Group Limited's filings with the SEC. All information provided in
this press release is as of the date of this press release, and
Yalla Group Limited does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please contact:
Yalla Group Limited
Investor Relations
Kerry Gao - IR Director
Tel: +86-571-8980-7962
Email: ir@yallatech.ae
The Piacente Group, Inc.
Jenny Cai
Tel: +86-10-6508-0677
Email: yalla@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
Email: yalla@tpg-ir.com
YALLA GROUP
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
As of
|
|
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
|
|
US$
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
351,485,602
|
|
|
|
407,256,837
|
|
Term
deposits
|
|
|
—
|
|
|
|
20,000,000
|
|
Short-term
investments
|
|
|
2,906,344
|
|
|
|
25,788,304
|
|
Prepayments and other
current assets
|
|
|
21,957,230
|
|
|
|
28,652,840
|
|
Total current
assets
|
|
|
376,349,176
|
|
|
|
481,697,981
|
|
Non-current
assets
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
1,832,952
|
|
|
|
2,121,613
|
|
Intangible asset,
net
|
|
|
—
|
|
|
|
1,328,470
|
|
Operating lease
right-of-use assets
|
|
|
857,474
|
|
|
|
1,950,364
|
|
Long-term
investments
|
|
|
1,768,455
|
|
|
|
3,833,750
|
|
Other assets
|
|
|
—
|
|
|
|
15,406,078
|
|
Total non-current
assets
|
|
|
4,458,881
|
|
|
|
24,640,275
|
|
Total
assets
|
|
|
380,808,057
|
|
|
|
506,338,256
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
|
4,392,330
|
|
|
|
5,382,276
|
|
Deferred
revenue
|
|
|
24,971,203
|
|
|
|
35,957,485
|
|
Operating lease
liabilities, current
|
|
|
472,734
|
|
|
|
858,452
|
|
Accrued expenses and
other current liabilities
|
|
|
14,896,134
|
|
|
|
22,821,168
|
|
Total current
liabilities
|
|
|
44,732,401
|
|
|
|
65,019,381
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
195,596
|
|
|
|
744,612
|
|
Amounts due to a
related party
|
|
|
—
|
|
|
|
709,789
|
|
Total non-current
liabilities
|
|
|
195,596
|
|
|
|
1,454,401
|
|
Total
liabilities
|
|
|
44,927,997
|
|
|
|
66,473,782
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders' equity
of Yalla Group Limited
|
|
|
|
|
|
|
Class A Ordinary
Shares
|
|
|
12,484
|
|
|
|
13,356
|
|
Class B Ordinary
Shares
|
|
|
2,473
|
|
|
|
2,473
|
|
Additional paid-in
capital
|
|
|
265,647,268
|
|
|
|
294,406,395
|
|
Treasury
stock
|
|
|
(25,419,808)
|
|
|
|
(27,014,697)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
520,010
|
|
|
|
(1,701,111)
|
|
Retained
earnings
|
|
|
95,123,951
|
|
|
|
174,880,748
|
|
Total shareholders'
equity of Yalla Group Limited
|
|
|
335,886,378
|
|
|
|
440,587,164
|
|
Non-controlling
interests
|
|
|
(6,318)
|
|
|
|
(722,690)
|
|
Total
equity
|
|
|
335,880,060
|
|
|
|
439,864,474
|
|
Total liabilities
and equity
|
|
|
380,808,057
|
|
|
|
506,338,256
|
|
YALLA GROUP
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS
|
OF
OPERATIONS
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
2021
|
|
|
September 30,
2022
|
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
Revenues
|
|
|
67,556,824
|
|
|
|
80,061,650
|
|
|
|
75,113,791
|
|
|
|
273,134,908
|
|
|
|
303,603,522
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(23,928,785)
|
|
|
|
(29,568,306)
|
|
|
|
(27,439,485)
|
|
|
|
(95,144,945)
|
|
|
|
(113,808,128)
|
|
Selling and marketing
expenses
|
|
|
(13,317,368)
|
|
|
|
(11,951,117)
|
|
|
|
(14,254,031)
|
|
|
|
(42,404,862)
|
|
|
|
(49,939,683)
|
|
General and
administrative expenses
|
|
|
(8,130,904)
|
|
|
|
(8,567,865)
|
|
|
|
(13,040,902)
|
|
|
|
(38,271,252)
|
|
|
|
(36,582,626)
|
|
Technology and product
development expenses
|
|
|
(3,916,387)
|
|
|
|
(5,487,884)
|
|
|
|
(5,376,318)
|
|
|
|
(14,286,120)
|
|
|
|
(24,575,485)
|
|
Total costs and
expenses
|
|
|
(49,293,444)
|
|
|
|
(55,575,172)
|
|
|
|
(60,110,736)
|
|
|
|
(190,107,179)
|
|
|
|
(224,905,922)
|
|
Operating
income
|
|
|
18,263,380
|
|
|
|
24,486,478
|
|
|
|
15,003,055
|
|
|
|
83,027,729
|
|
|
|
78,697,600
|
|
Interest
income
|
|
|
35,218
|
|
|
|
777,581
|
|
|
|
2,295,844
|
|
|
|
111,881
|
|
|
|
3,300,976
|
|
Government
grants
|
|
|
1,406,028
|
|
|
|
51,483
|
|
|
|
110,258
|
|
|
|
1,419,837
|
|
|
|
322,273
|
|
Investment income
(loss)
|
|
|
147,154
|
|
|
|
(104,944)
|
|
|
|
277,122
|
|
|
|
54,824
|
|
|
|
21,407
|
|
Impairment
loss
|
|
|
—
|
|
|
|
—
|
|
|
|
(705,428)
|
|
|
|
—
|
|
|
|
(705,428)
|
|
Income before income
taxes
|
|
|
19,851,780
|
|
|
|
25,210,598
|
|
|
|
16,980,851
|
|
|
|
84,614,271
|
|
|
|
81,636,828
|
|
Income tax
expense
|
|
|
(794,413)
|
|
|
|
(788,985)
|
|
|
|
(416,342)
|
|
|
|
(2,019,911)
|
|
|
|
(2,598,983)
|
|
Net
income
|
|
|
19,057,367
|
|
|
|
24,421,613
|
|
|
|
16,564,509
|
|
|
|
82,594,360
|
|
|
|
79,037,845
|
|
Net loss attributable
to non-controlling interests
|
|
|
6,318
|
|
|
|
206,347
|
|
|
|
198,008
|
|
|
|
6,318
|
|
|
|
718,952
|
|
Net income
attributable to Yalla Group
Limited's shareholders
|
|
|
19,063,685
|
|
|
|
24,627,960
|
|
|
|
16,762,517
|
|
|
|
82,600,678
|
|
|
|
79,756,797
|
|
YALLA GROUP
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS
|
OF OPERATIONS
(CONTINUED)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
2021
|
|
|
September 30,
2022
|
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
Earnings per
ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
0.13
|
|
|
|
0.16
|
|
|
|
0.11
|
|
|
|
0.56
|
|
|
|
0.52
|
|
——Diluted
|
|
|
0.11
|
|
|
|
0.14
|
|
|
|
0.09
|
|
|
|
0.46
|
|
|
|
0.45
|
|
Weighted average
number of shares
outstanding used in computing earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
149,516,472
|
|
|
|
155,190,724
|
|
|
|
157,373,645
|
|
|
|
148,739,986
|
|
|
|
153,526,679
|
|
——Diluted
|
|
|
176,907,506
|
|
|
|
177,347,900
|
|
|
|
177,515,233
|
|
|
|
179,899,466
|
|
|
|
176,639,558
|
|
|
Share-based
compensation was allocated in cost of revenues, selling and
marketing expenses, general and administrative
expenses and technology and product development expenses as
follows:
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
2021
|
|
|
September 30,
2022
|
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
Cost of
revenues
|
|
|
1,632,754
|
|
|
|
1,065,549
|
|
|
|
884,691
|
|
|
|
6,299,864
|
|
|
|
4,798,901
|
|
Selling and marketing
expenses
|
|
|
1,878,389
|
|
|
|
1,059,009
|
|
|
|
1,019,064
|
|
|
|
10,102,733
|
|
|
|
5,774,985
|
|
General and
administrative expenses
|
|
|
4,689,722
|
|
|
|
2,462,675
|
|
|
|
2,963,686
|
|
|
|
26,729,432
|
|
|
|
14,752,580
|
|
Technology and product
development
expenses
|
|
|
325,757
|
|
|
|
379,994
|
|
|
|
315,581
|
|
|
|
807,418
|
|
|
|
1,364,504
|
|
Total share-based
compensation expenses
|
|
|
8,526,622
|
|
|
|
4,967,227
|
|
|
|
5,183,022
|
|
|
|
43,939,447
|
|
|
|
26,690,970
|
|
YALLA GROUP
LIMITED
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
2021
|
|
|
September 30,
2022
|
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
Operating
income
|
|
|
18,263,380
|
|
|
|
24,486,478
|
|
|
|
15,003,055
|
|
|
|
83,027,729
|
|
|
|
78,697,600
|
|
Share-based
compensation expenses
|
|
|
8,526,622
|
|
|
|
4,967,227
|
|
|
|
5,183,022
|
|
|
|
43,939,447
|
|
|
|
26,690,970
|
|
Non-GAAP operating
income
|
|
|
26,790,002
|
|
|
|
29,453,705
|
|
|
|
20,186,077
|
|
|
|
126,967,176
|
|
|
|
105,388,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
19,057,367
|
|
|
|
24,421,613
|
|
|
|
16,564,509
|
|
|
|
82,594,360
|
|
|
|
79,037,845
|
|
Share-based
compensation expenses, net of
tax effect of nil
|
|
|
8,526,622
|
|
|
|
4,967,227
|
|
|
|
5,183,022
|
|
|
|
43,939,447
|
|
|
|
26,690,970
|
|
Non-GAAP net
income
|
|
|
27,583,989
|
|
|
|
29,388,840
|
|
|
|
21,747,531
|
|
|
|
126,533,807
|
|
|
|
105,728,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Yalla
Group Limited's shareholders
|
|
|
19,063,685
|
|
|
|
24,627,960
|
|
|
|
16,762,517
|
|
|
|
82,600,678
|
|
|
|
79,756,797
|
|
Share-based
compensation expenses, net of
tax effect of nil
|
|
|
8,526,622
|
|
|
|
4,967,227
|
|
|
|
5,183,022
|
|
|
|
43,939,447
|
|
|
|
26,690,970
|
|
Non-GAAP net income
attributable to
Yalla Group Limited's shareholders
|
|
|
27,590,307
|
|
|
|
29,595,187
|
|
|
|
21,945,539
|
|
|
|
126,540,125
|
|
|
|
106,447,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
0.18
|
|
|
|
0.19
|
|
|
|
0.14
|
|
|
|
0.85
|
|
|
|
0.69
|
|
——Diluted
|
|
|
0.16
|
|
|
|
0.17
|
|
|
|
0.12
|
|
|
|
0.70
|
|
|
|
0.60
|
|
Weighted average
number of shares
outstanding used in computing earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
——Basic
|
|
|
149,516,472
|
|
|
|
155,190,724
|
|
|
|
157,373,645
|
|
|
|
148,739,986
|
|
|
|
153,526,679
|
|
——Diluted
|
|
|
176,907,506
|
|
|
|
177,347,900
|
|
|
|
177,515,233
|
|
|
|
179,899,466
|
|
|
|
176,639,558
|
|
View original
content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-fourth-quarter-and-full-year-2022-financial-results-301770093.html
SOURCE Yalla Group Limited