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Yalla Group (YALA)
NYSE:YALA
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Yalla Group
(NYSE:YALA)
Rating:82Outperform
Price Target:
$8.00
▲(13.64%Upside)
Yalla Group (YALA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.11B
Dividend YieldN/A
Average Volume (3M)709.27K
Price to Earnings (P/E)9.2
Beta (1Y)1.15
Revenue Growth6.40%
EPS Growth9.72%
CountryUS
Employees815
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.20
Shares Outstanding132,801,830
10 Day Avg. Volume475,119
30 Day Avg. Volume709,273
Financial Highlights & Ratios
PEG Ratio2.28
Price to Book (P/B)1.48
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit2.98
Enterprise Value/Ebitda1.39
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 (YALA) is a leading voice-centric social networking and entertainment platform primarily focused on the Middle East and North Africa (MENA) region. The company operates two main applications: Yalla, a voice-based chat app, and Yalla Ludo, which combines classic board games with social features. These platforms cater to the growing demand for interactive social experiences in the MENA region, providing users with opportunities to connect, communicate, and engage in shared activities.
How the Company Makes MoneyYalla Group generates revenue primarily through in-app purchases and subscriptions. The company's voice-centric social networking platform, Yalla, allows users to purchase virtual items and gifts to enhance their user experience and interactions. Additionally, Yalla Ludo offers monetization through in-app purchases where users can buy game-related items and features. The subscription model also plays a significant role, as users can subscribe to premium services for enhanced functionality and access. The company's revenue streams are bolstered by its ability to attract and retain users, leveraging localized content and culturally relevant experiences to strengthen user engagement in the MENA region.
Yalla Group Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q1-2025)
| % Change Since: -9.97%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong revenue growth, increased net margin, successful share repurchases, and a growing user base, demonstrating positive business momentum. However, rising costs and technology expenses, along with cautious revenue guidance, present challenges that the company must manage. Overall, the highlights significantly outweigh the lowlights.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Q1 revenues reached $83.9 million, up 6.5% year-over-year, exceeding the upper end of guidance.
Increased Net Margin
Net margin improved from 39.5% to 43.4% year-over-year.
Successful Share Repurchase Program
Yalla repurchased $27.4 million in shares, raising the 2025 buyback target to $50 million.
Growth in User Base
Average monthly active users increased by 17.9% year-over-year to 44.6 million.
Expansion in AI Integration
Self-developed AI content moderation model for image and text recognition in Arabic and MENA dialects.
Negative Updates
Increased Costs
General and administrative expenses rose by 30.8% due to increased incentive compensation and professional fees.
Rising Technology Expenses
Technology and product development expenses increased by 25% due to higher salaries and headcounts.
Revenue Guidance
Q2 revenue guidance is between $76 million and $83 million, indicating potential challenges.
Company Guidance
During Yalla Group Limited's first quarter 2025 earnings call, management provided guidance reflecting a positive outlook despite global economic volatility and the impact of Ramadan. The company reported Q1 revenues of $83.9 million, representing a 6.5% year-over-year increase, with net margin improving from 39.5% to 43.4%. Management highlighted a net income rise of 17% to $36.4 million, driven by enhanced monetization capabilities and disciplined cost control, specifically a 14.3% decrease in selling and marketing expenses. The company expects Q2 2025 revenues to range between $76 million and $83 million. Furthermore, Yalla Group announced an increase in their 2025 share buyback target to $50 million, underscoring their commitment to shareholder returns.Yalla Group Financial Statement Overview
Summary
Yalla Group shows strong financial health with high revenue growth, robust profit margins, and minimal leverage. However, the absence of current cash flow data in 2024 requires attention to ensure liquidity and operational efficiency.Income Statement
Yalla Group has demonstrated strong revenue growth over the years, with a notable increase of 6.52% from 2023 to 2024. The company maintains a high gross profit margin of 64.55% and a robust net profit margin of 39.94% in 2024. The EBIT margin of 35.74% and EBITDA margin of 36.34% also reflect operational efficiency and profitability. These metrics indicate a solid financial performance and growth trajectory in the competitive software industry.87
Very Positive
Balance Sheet
The balance sheet of Yalla Group shows a very strong position with a low debt-to-equity ratio of 0.0015, indicating minimal leverage. The company has a high return on equity (ROE) of 19.26%, reflecting effective use of shareholder funds to generate profits. The equity ratio stands at 87.85%, showcasing Yalla's strong capitalization and low reliance on debt. This stability provides a solid foundation for future growth and resilience against market fluctuations.92
Very Positive
Cash Flow
Yalla Group's cash flow statement reveals a lack of positive operating and free cash flow in 2024, posing potential risks to liquidity. The company has historically shown strong free cash flow growth, but the lack of current data prevents a complete analysis. While past performance shows effective cash generation, the absence of current cash flow metrics suggests a need for careful monitoring of cash reserves and operational cash management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 337.10M | 339.68M | 318.88M | 303.60M | 273.13M | 134.93M |
| Gross Profit | 218.80M | 219.21M | 204.35M | 189.80M | 177.99M | 73.66M |
| EBITDA | 121.89M | 123.42M | 98.37M | 82.77M | 83.88M | 4.34M |
| Net Income | 132.97M | 135.68M | 117.34M | 79.76M | 82.60M | 3.21M |
Balance Sheet | ||||||
| Total Assets | 826.07M | 801.63M | 638.95M | 506.34M | 380.81M | 254.62M |
| Cash, Cash Equivalents and Short-Term Investments | 689.34M | 654.30M | 535.27M | 453.05M | 354.39M | 237.65M |
| Total Debt | 784.55K | 1.03M | 2.10M | 1.60M | 668.33K | 0.00 |
| Total Liabilities | 94.30M | 103.82M | 76.29M | 66.47M | 44.93M | 21.08M |
| Stockholders Equity | 739.03M | 704.35M | 567.69M | 440.59M | 335.89M | 233.53M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 171.97M | 137.67M | 103.22M | 142.75M | 63.76M |
| Operating Cash Flow | 0.00 | 172.81M | 139.32M | 119.55M | 144.24M | 64.79M |
| Investing Cash Flow | 0.00 | 18.58M | -226.12M | -62.57M | -5.36M | 2.48M |
| Financing Cash Flow | 0.00 | -12.82M | -7.55M | 371.00K | -24.56M | 123.77M |
Yalla Group Technical Analysis
Positive
7.04
Price Trends
7.10
Negative
6.02
Positive
5.12
Positive
Market Momentum
-0.02
Negative
56.38
Neutral
82.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YALA, the sentiment is Positive. The current price of 7.04 is above the 20-day moving average (MA) of 6.67, below the 50-day MA of 7.10, and above the 200-day MA of 5.12, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 82.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.11B | 9.16 | 21.03% | ― | 6.40% | 9.72% | |
72 Outperform | $1.19B | 79.07 | 6.26% | ― | 7.71% | ― | |
72 Outperform | $1.19B | 79.07 | 6.26% | ― | 7.71% | ― | |
65 Neutral | $862.17M | 457.81 | 4.15% | ― | 30.64% | ― | |
65 Neutral | $862.17M | 457.81 | 4.15% | ― | 30.64% | ― | |
63 Neutral | $33.79B | 5.85 | -11.85% | 1.81% | 5.29% | -18.24% | |
62 Neutral | $1.19B | 50.49 | -47.39% | ― | 3.82% | -251.96% | |
62 Neutral | $1.19B | 50.49 | -47.39% | ― | 3.82% | -251.96% | |
50 Neutral | $654.87M | ― | -46.57% | ― | -2.39% | -2961.26% | |
50 Neutral | $654.87M | ― | -46.57% | ― | -2.39% | -2961.26% | |
49 Neutral | $912.59M | ― | -93.00% | ― | -0.40% | 63.36% | |
49 Neutral | $912.59M | ― | -93.00% | ― | -0.40% | 63.36% |
* Technology Sector Average
Performance Comparison
YALA
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7.04
2.49
54.73%
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DSP
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BMBL
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BLND
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BLND
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44.77%
VTEX
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6.50
-0.80
-10.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.