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Yalla Group (YALA)
NYSE:YALA
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Yalla Group
(NYSE:YALA)
83Outperform
Yalla Group (YALA) vs. S&P 500 (SPY)
Market Cap
$830.88M
Dividend YieldN/A
Average Volume (3M)511.92K
Price to Earnings (P/E)6.3
Beta (1Y)0.82
Revenue Growth6.52%
EPS Growth14.89%
CountryUS
Employees778
SectorTechnology
Sector Strength43
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.74
Shares Outstanding134,134,640
10 Day Avg. Volume597,891
30 Day Avg. Volume511,916
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)N/A
Price to Sales (P/S)2.56
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Yalla Group Business Overview & Revenue Model
Company DescriptionYalla Group Limited is a leading voice-centric social networking and entertainment platform, primarily operating in the Middle East and North Africa region. The company offers users a range of online social networking and entertainment services, mainly through its flagship applications, Yalla and Yalla Ludo. Yalla provides a platform for voice-based group chat and social interaction, while Yalla Ludo offers popular board games with integrated voice chat capabilities. Yalla Group leverages its deep understanding of local cultures and preferences to deliver engaging and socially interactive digital experiences.
How the Company Makes MoneyYalla Group generates revenue primarily through in-app purchases and, to a lesser extent, from advertisements. The company monetizes its platforms by offering virtual items and enhancements that users can purchase to enrich their social interactions and gaming experiences. These virtual goods include gifts, stickers, and other interactive elements that enhance user engagement and satisfaction. Additionally, Yalla Group benefits from its premium membership offerings, which provide users with exclusive features and privileges. The company's revenue model is predominantly driven by user spending on virtual items, supported by a growing user base and strong engagement metrics.
Yalla Group Financial Statement Overview
Summary
Yalla Group has demonstrated strong financial performance with high revenue growth, improved net profit margins, and robust cash flow generation. The balance sheet is solid with low leverage, although a slight increase in liabilities needs monitoring.Income Statement
Yalla Group shows strong revenue growth with a consistent increase from 2019 to 2023. The gross profit margin has remained high, indicating effective cost management. The net profit margin has improved significantly from 2.38% in 2020 to 36.79% in 2023, reflecting enhanced profitability. EBIT and EBITDA margins are also strong, suggesting efficient operations.92
Very Positive
Balance Sheet
The company's balance sheet is very solid with a low debt-to-equity ratio, indicating low leverage. The equity ratio is robust, suggesting a strong capital structure. Return on equity has improved significantly, reflecting efficient use of equity to generate profits. However, the increase in liabilities from 2022 to 2023 should be monitored.85
Very Positive
Cash Flow
Operating cash flow has consistently increased, indicating strong cash generation capability. Free cash flow has shown significant growth, enhancing financial flexibility. The operating cash flow to net income ratio is favorable, indicating effective cash conversion. The free cash flow to net income ratio shows a strong conversion of profits into cash.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 326.04M | 318.88M | 303.60M | 273.13M | 134.93M | 63.46M | Gross Profit |
| 210.10M | 204.35M | 189.80M | 177.99M | 73.66M | 42.91M | EBIT |
| 114.46M | 96.35M | 78.70M | 83.03M | 3.76M | 28.94M | EBITDA |
| 115.04M | 98.37M | 82.77M | 83.88M | 4.34M | 29.53M | Net Income Common Stockholders |
| 130.65M | 117.34M | 79.76M | 82.60M | 3.21M | 28.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 18.82M | 535.27M | 453.05M | 354.39M | 237.65M | 49.53M | Total Assets |
| 0.00 | 638.95M | 506.34M | 380.81M | 254.62M | 54.12M | Total Debt |
| 0.00 | 2.10M | 1.60M | 668.33K | 0.00 | 0.00 | Net Debt |
| 18.82M | -309.78M | -405.65M | -350.82M | -236.88M | -45.30M | Total Liabilities |
| 0.00 | 76.29M | 66.47M | 44.93M | 21.08M | 8.31M | Stockholders Equity |
| 16.84M | 567.69M | 440.59M | 335.89M | 233.53M | 45.80M |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 137.67M | 103.22M | 142.75M | 63.76M | 30.85M | Operating Cash Flow |
| 0.00 | 139.32M | 119.55M | 144.24M | 64.79M | 31.28M | Investing Cash Flow |
| 0.00 | -226.12M | -62.57M | -5.36M | 2.48M | -2.83M | Financing Cash Flow |
| 0.00 | -7.55M | 371.00K | -24.56M | 123.77M | -200.00K |
Yalla Group Technical Analysis
Neutral
4.66
Price Trends
4.47
Positive
4.33
Positive
4.29
Positive
Market Momentum
0.33
Negative
64.66
Neutral
41.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YALA, the sentiment is Neutral. The current price of 4.66 is below the 20-day moving average (MA) of 5.04, above the 50-day MA of 4.47, and above the 200-day MA of 4.29, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 64.66 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YALA.
Yalla Group Risk Analysis
Yalla Group disclosed 66 risk factors in its most recent earnings report. Yalla Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Yalla Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $830.88M | 6.28 | 21.33% | ― | 6.52% | 14.89% | |
63 Neutral | $2.31B | 7.56 | 8.74% | ― | -0.29% | -12.84% | |
61 Neutral | $1.05B | 7.44 | 8.94% | ― | -13.37% | -44.13% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
52 Neutral | $2.19B | ― | -2.96% | ― | -1.33% | -148.56% | |
49 Neutral | $224.48M | ― | -5.43% | ― | -24.10% | -953.50% | |
47 Neutral | $743.02M | ― | -1.59% | ― | -20.51% | 67.41% |
* Technology Sector Average
Performance Comparison
YALA
Yalla Group
4.66
-0.16
-3.32%
JOYY
JOYY
39.14
4.21
12.05%
WB
Weibo
8.60
0.61
7.63%
MOMO
Hello Group
5.84
0.33
5.99%
HUYA
Huya
3.15
-0.41
-11.52%
DOYU
DouYu International Holdings
6.22
4.77
328.97%
Yalla Group Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: 15.92% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
Yalla Group's earnings call highlighted strong revenue growth, user base expansion, and significant advancements in AI integration, all contributing to a positive outlook. While there were increases in technology and development expenses and income tax, these were outweighed by the overall positive performance and strategic developments.Highlights
Record Revenue and Growth
Yalla Group's revenue rose to US$91 million in Q4 2024, reaching a new record high for the second consecutive quarter. Annual revenue reached US$340 million, demonstrating a 26% year-over-year increase in operating profitability for the full year.
User Base Expansion
As of December 31, 2024, monthly active users (MAU) increased by 14.4% year-over-year to 41.4 million, and paying users increased by 3.2% year-over-year to 12.3 million.
AI Integration and Innovation
Yalla Group has strengthened its AI capabilities, enhancing product offerings and operational efficiency, which significantly boosted user engagement and profitability.
Awards and Recognition
Yalla Group received the PowerHouse Partnership Award and a GOLD Stevie Award, recognizing its innovative contributions to the MENA digital ecosystem.
Lowlights
Increased Technology and Product Development Expenses
Technology and product development expenses increased by 69.6% year-over-year to US$9.2 million in Q4 2024, primarily due to increased headcount for new business development.
Higher Income Tax Expense
Income tax expense increased significantly to US$3.35 million in Q4 2024, compared to US$0.54 million in the same period in 2023.
Company Guidance
During Yalla Group Limited's fourth quarter and full-year 2024 earnings call, the company reported significant financial metrics, highlighting a 12.2% year-over-year increase in fourth-quarter revenues to $90.8 million and a full-year revenue total of $339.7 million. The company's operating income rose by 29.4% year-over-year to $30.1 million in Q4, contributing to a full-year operating income of $121.4 million, marking a 26% increase. Net income for the full year increased by 18.7% to $134.2 million. The company also saw a 14.4% year-over-year rise in monthly active users (MAU) to 41.4 million and a 3.2% increase in paying users to 12.3 million, with an average revenue per paying user (ARPPU) growth of 10.2%. Looking forward, Yalla Group expects Q1 2025 revenues to range between $75 million and $82 million, focusing on product innovation and efficiency improvements to sustain growth and profitability amidst MENA's expanding digital economy.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.