CONFIDENTIAL Yalla Group reports record revenues of AED 873.9 million in first three Qs of 2023

or the “Company”) (NYSE: YALA), the largest Middle East and
North Africa (MENA)-based online social networking and gaming
company, has announced a remarkable milestone, reporting a
record revenue of AED 873.9 million ($237.9 million) for the first
nine months of 2023.
The latest quarterly financial results also showcase substantial
growth, with third-quarter revenues reaching AED 312.9 million
($85.2 million), marking an impressive 6.4% increase compared to
the same quarter in 2022. These results underscore Yalla’s robust
financial performance and sustained business momentum.
In addition to the revenue achievements, Yalla has reported a Q3
net income of AED 129.2 million (US$35.2 million), reflecting a
substantial 44.3% increase from the third quarter of 2022, when it
stood at AED 89.6 million (US$24.4 million). The company’s net
margin remained exceptionally high at 41.4%, highlighting its
strong monetization capabilities and disciplined SG&A spending.

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Moreover, Yalla’s average monthly active users (MAUs) experienced
significant growth, surging by 13.6% to 35.1 million in the third
quarter of 2023, compared to 30.9 million in the same period in
2022. Meanwhile, the number of paying users on the Yalla platform
decreased by 2.6% to 11.2 million in the third quarter of 2023 from
11.5 million in the third quarter of 2022, primarily due to a short-
term game mechanism adjustment.
“We were pleased to achieve strong results in the third quarter of
2023,” said Mr. Yang Tao, Founder, Chairman and CEO of Yalla.
“We recorded all-time high revenues of US$85.2 million in the third
quarter of 2023, beating the upper end of our guidance, while year
over year revenue growth from gaming services exceeded 30% once
again. Our robust quarterly results demonstrate our operational
success in refining processes, enhancing the gamification of our
flagship applications, improving our gaming mechanics and
optimizing user acquisition. These efforts have empowered us to
build a more engaged community of users, reflected by a 13.6% year
over year increase in our group’s average MAUs to 35.1 million.
“Thanks to our consistent game iterations and engagement of our
existing Yalla user community, our two hard-core games have
gained traction in the MENA region. Through this process, we are
seeing immense room for growth in this sector, and we are
determined to gradually increase our investment in the mid-core
and hard-core game business, unleashing our growth potential in
this flourishing market,” Mr. Yang added.
For his part, Saifi Ismail, Group President at Yalla Group, said: “We
delivered a robust third quarter performance, highlighted by our
record-high revenues and impressive net margin enhancement. Our
relentless efforts to streamline costs as well as our enhanced, ROI-

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focused marketing strategy continued to yield positive outcomes,
enabling us to elevate our overall efficiency. As we head into the
fourth quarter, we will continue to execute our high-quality growth
strategy with focus on efficiency and profitability enhancement. We
believe our solid fundamentals and strong cash position will
support us well to capture future opportunities as we strive to
create sustainable value for our shareholders in the long run.”
He added: ‘At Yalla Group, we are consistently pushing the
boundaries of innovation and efficiency in the social networking
and gaming landscape. Our impressive financial achievements this
quarter are a direct result of our dedicated team’s efforts and our
strategic foresight. As we move forward, we remain committed to
investing in our people, technology, and new market opportunities,
ensuring that we stay at the forefront of the industry and continue
delivering exceptional value to our users and shareholders alike.'”
-Ends-
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’

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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.

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