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YALA

Yalla Group NYSE:YALA Stock Report

Last Price

US$3.24

Market Cap

US$480.4m

7D

-4.1%

1Y

-57.5%

Updated

01 Oct, 2022

Data

Company Financials +
YALA fundamental analysis
Snowflake Score
Valuation6/6
Future Growth5/6
Past Performance6/6
Financial Health6/6
Dividends0/6

YALA Stock Overview

Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region.

Yalla Group Limited Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Yalla Group
Historical stock prices
Current Share PriceUS$3.24
52 Week HighUS$10.40
52 Week LowUS$3.10
Beta0
1 Month Change-20.59%
3 Month Change-19.80%
1 Year Change-57.48%
3 Year Changen/a
5 Year Changen/a
Change since IPO-53.71%

Recent News & Updates

Aug 17

Yalla Generates Record Second Quarter Revenue, Moves Ahead With New Initiatives

Yalla generated record revenue in the second quarter despite a month-long Ramadan holiday, thanks to better user monetization and cost controls. Company bolstered its position in its home market with the naming of a former UAE telecoms chief as a new independent director. Reinforcing the lack of excitement, the company’s latest price-to-earnings ratio of 10 is below the ratios of 15 for both Facebook and Weibo, the latter often called the Twitter of China. Company’s latest results show a strong rebound as it moves ahead on a wide range of initiatives aimed at recapturing its former days of explosive growth After starting as a voice-focused social networking service, Yalla Group Limited (YALA) is trying to take itself to the next level by adding more diversified offerings like text, graphics, gaming, and even a bit of the metaverse to its platform. The overhaul comes as the company seeks to reignite the explosive growth that briefly made it an investor darling but has faded somewhat lately. That’s the big picture coming through in the company’s latest earnings report, which is filled with updates on the many initiatives Yalla is taking in its bid to become an equivalent of Facebook (META) for developing markets. The signs look good in general, though turning ideas into profits will be the real test of whether Yalla can truly become a significant global player. At the same time, the company, which is based in the Middle East, is building up the network it needs to thrive in its home market in the Middle East and North Africa region ((MENA)) with a major new appointment that we’ll look at shortly. And it’s slowly expanding beyond those borders by ramping up business in the Spanish-speaking world and in Turkey. With so many moving parts, we’ll start with the big picture from Yalla’s latest financial report that showed the company’s revenue growth began to accelerate in the three months through June after reaching a low point in the previous quarter. It made that shift partly by better monetizing its growing user base and also controlling costs, with the result that its profit returned to a growth track after a rare decline in the previous quarter. So now some specifics. The company’s revenue grew 14.2% in the second quarter to $76.1 million, reaching a second consecutive record high despite including the Ramadan period that traditionally sees traffic drop at the start of the monthlong holiday. That rate marked a doubling of the 6.9% growth from the previous quarter, though both figures were still well below the high-double digit and even triple-digit growth the company reported in the first few quarters after its October 2020 IPO. Significantly, the company’s revenues from its chatting services, which account for about 70% of its total, returned to growth during the quarter after a first-ever decline in the first three months of the year. Yalla also managed to better monetize its customer base, with 35% of its 29.9 million users paying for service in the second quarter, up from 29% who were paying a year earlier. “Such a robust quarterly result is a testament to our operational success in refining our processes … and optimizing user acquisition,” Chairman Yang Tao said in a statement. “Together, these actions have holistically elevated our user experience further boosting Yalla’s … user engagement and users’ willingness to pay on our platforms.” The company also kept its spending under control, with costs and expenses up by a modest 15%. As a result, Yalla’s profit rose 11% to $20.4 million for the quarter, reversing a decline in the previous period. Despite signs that the company may be rebounding from a first-quarter bottom, Yalla’s revenue guidance signaled the bounceback is far from certain. The company forecasts third-quarter revenue of $70-$75 million, which most likely would represent growth from the year-ago $71.3 million figure, but also leaves the potential for a contraction. Gaming growth With all those big-picture numbers as background, we’ll spend the second half of this space looking at the latest updates on some of the many initiatives Yalla is taking to broaden its base and appeal, both in terms of products and also geographically. The company began as a Middle Eastern voice-based social networking services provider, with an R&D center in the Chinese coastal city of Hangzhou. It briefly shot to global attention in early 2021 when it drew comparisons to U.S. sensation Clubhouse. Since then, it has been adding other formats, including a new texting service called YallaChat launched earlier this year that provides a single unified login system for its various products. The company is also moving aggressively into games, its other major revenue source that is growing much faster than its chatting revenue. To that end, Yalla previously announced plans to move beyond its traditional casual games and target hard-core gamers who are often more willing to pay to play. In its latest report officials indicated the company will launch its first hard-core title by year-end and is also now exploring some mid-core games. Geographically, Yalla has been branching into the Spanish-speaking world and noted that its Yalla Parchis product ranked in the top three, in terms of revenue in the board game category, in six countries during the quarter, including Colombia, the Dominican Republic, and Spain.

Shareholder Returns

YALAUS Interactive Media and ServicesUS Market
7D-4.1%-2.9%-2.5%
1Y-57.5%-42.6%-23.2%

Return vs Industry: YALA underperformed the US Interactive Media and Services industry which returned -42.6% over the past year.

Return vs Market: YALA underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is YALA's price volatile compared to industry and market?
YALA volatility
YALA Average Weekly Movement7.9%
Interactive Media and Services Industry Average Movement8.4%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: YALA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: YALA's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016629Tao Yanghttps://yallagroup.com

Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region. Its platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation.

Yalla Group Limited Fundamentals Summary

How do Yalla Group's earnings and revenue compare to its market cap?
YALA fundamental statistics
Market CapUS$480.41m
Earnings (TTM)US$82.75m
Revenue (TTM)US$287.29m

5.8x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
YALA income statement (TTM)
RevenueUS$287.29m
Cost of RevenueUS$104.14m
Gross ProfitUS$183.15m
Other ExpensesUS$100.40m
EarningsUS$82.75m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.56
Gross Margin63.75%
Net Profit Margin28.80%
Debt/Equity Ratio0%

How did YALA perform over the long term?

See historical performance and comparison