Yalla Group Limited Announces Unaudited Fourth Quarter and Full Year 2022 Financial Results.

DUBAI, UAE: 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...