Yalla Group reports record revenues of AED 1.171 billion in 2023

Yalla Q4 revenues up by 7.7 % to AED 297.1 million

Yalla’s net income grew to AED 109 million، while the non-GAAP net margin remained at 41.3%

Yalla reports a 13.3% year-over-year increase in average MAUs، reaching 36.2 million in the final quarter of 2023

Yalla Group Limited ("Yalla" or the "Company") ،the largest Middle East and North Africa (MENA)-based online social networking and gaming company، has announced its unaudited financial results for the fourth quarter and full year ending on December 31، 2023.

The company achieved a significant milestone، registering a full-year revenue of AED 1.171 billion ($318.8 million)، a significant increase from the AED 1.1 billion recorded in 2022.

The fourth quarter underscored Yalla's robust financial health، with revenues soaring to AED 297.1 million ($80.9 million)، a 7.7% upsurge from AED 275.9 million ($75.1 million) in the corresponding quarter of the previous year. This increment reflects the company’s enduring business growth and formidable financial standing.

A robust net margin

The last quarter of the fiscal year 2023 witnessed Yalla achieving a robust net margin of 36.6% alongside an impressive non-GAAP net margin of 41.3%. Highlighting its effective monetization strategies and judicious SG&A (Selling، General & Administrative expenses) management، Yalla reported a fourth-quarter net income of AED 109 million ($29.7 million)، an increase of 79% from AED 60.9 million in the fourth quarter of 2022.

Additionally، the company observed a 13.3% year-over-year increase in average monthly active users (MAUs)، reaching 36.2 million in the final quarter of 2023، escalating from 32 million in 2022's fourth quarter.

Despite a slight reduction in the number of paying users، down by 4.2% to 11.9 million in the fourth quarter of 2023 from 12.5 million in the previous year's corresponding quarter، the company attributes this adjustment to short-term game mechanism modifications، reaffirming its commitment to enhancing user engagement and monetization strategies in the forthcoming periods.

A pivotal year for Yalla

Yang Tao، Founder، Chairman and CEO of Yalla، stressed that 2023 was a pivotal year for Yalla. "Amid the dynamic global landscape، we forged ahead with our effective strategy for high-quality growth and capped the year with strong fourth quarter financial and operational results."

“Our revenues increased by 7.7% year-over-year to US$80.9 million for the fourth quarter، exceeding the upper end of our guidance، primarily driven by robust revenue growth from games services of 35.2% year-over-year. Furthermore، our game mechanism enhancements aimed at boosting user engagement and delivering better user experiences are bearing fruit،” Tao added.

“Along with our constant efforts to optimize our flagship applications، we made great strides with our mid- and hard-core games in the past year. With the successful launch of our two hard-core games، we have deepened our engagement in the mid- and hard-core game business and gained vast experience across key aspects of MENA’s gaming market،” he further said.

Lauding the remarkable growth in Yalla’s revenues، Saifi Ismail، Group President at Yalla Group، said: "We achieved robust 2023 results with full-year revenue rising to US$318.9 million، another testament to our ability to deliver growth in a rapidly evolving environment. Yalla aspires to become the No. 1 online social networking and entertainment platform in the MENA region. We will therefore continue to build relationships locally and globally to broaden our business horizons and embrace the opportunities brought by MENA’s digital transformation.

A new era of growth

“With the entire region set to embark on a new era of growth، we are more committed than ever to providing the people of MENA with better access to a digital life. We believe we are well-positioned to capture the potential growth opportunities in the MENA region، and we look forward to delivering value to all our stakeholders as we strive to achieve our mission.

Moving forward، we will remain committed to developing more social networking and gaming applications tailored specifically for MENA users. Moreover، we will keep nurturing strong relationships with global channels to ensure that we continue to reach users effectively and provide them with the best possible experience،" Ismail added.

The largest gaming company

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; Waha، a social networking product featuring 3-D avatars; and 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.