Yalla Group Ltd (YALA) 2023 Q4 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for standing by for Yalla Group Limited's fourth-quarter and full-year 2023 earnings conference call. (Operator Instructions) Today's conference call is being recorded. Now, I will turn the call over to your speaker host today, Ms. Kerry Gao, IR Manager of the company. Please go ahead, ma'am.

早安，晚上好，女士們先生們。感謝您出席 Yalla Group Limited 的第四季和 2023 年全年財報電話會議。（操作員指示）今天的電話會議正在錄音。現在，我將把電話轉給今天的演講主持人，公司IR經理高嘉女士。請繼續，女士。

Hello everyone, and welcome to Yalla's fourth-quarter and full-year 2023 earnings conference call. We released our earnings press release earlier today, and the release is now available on our IR website as well as on newswire services.

大家好，歡迎參加 Yalla 第四季和 2023 年全年收益電話會議。我們今天早些時候發布了收益新聞稿，該新聞稿現已在我們的投資者關係網站和新聞專線服務上發布。

Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in our earnings release and our annual report filed with the SEC. Yalla does not assume any obligation to update any forward-looking statements except as required by law.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，我們未來的結果可能與今天表達的觀點大不相同。有關這些以及其他風險和不確定性的更多資訊包含在我們向 SEC 提交的收益發布和年度報告中。除法律要求外，Yalla 不承擔更新任何前瞻性聲明的義務。

Please also note that the Yalla's earnings press release and this conference call include a discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Yalla's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

另請注意，Yalla 的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。Yalla 的新聞稿包含未經審計的非 GAAP 衡量標準與未經審計的最直接可比較的 GAAP 衡量標準的調整表。

Today, you will hear from Mr. Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our latest achievements and growth strategies. He will be followed by Mr. Saifi Ismail, the company's President, who will briefly review our recent business developments. Ms. Karen Hu, our Chief Financial Officer, will then provide additional details on the company's financial results and discuss our financial outlook.

今天，您將聽到我們的董事長兼執行長楊濤先生的講話，他將概述我們的最新成就和成長策略。緊隨其後的是公司總裁 Saifi Ismail 先生，他將簡要回顧我們最近的業務發展。我們的財務長胡凱倫女士隨後將提供有關公司財務業績的更多詳細資訊並討論我們的財務前景。

Following management's prepared remarks, we'll open the call to questions. Mr. Jeff Xu, our Chief Operating Officer, will join the Q&A section. With that said, I'd now like to turn the call over to our Chairman and Chief Executive Officer, Mr. Tao Yang. Please go ahead, sir.

在管理階層準備好發言後，我們將開始提問。我們的營運長 Jeff Xu 先生將參加問答環節。話雖如此，我現在想將電話轉給我們的董事長兼執行長陶陽先生。請繼續，先生。

Thank you, everyone, for joining our fourth-quarter and full-year 2023 earnings conference call. 2023 was a year filled with challenges and opportunities. As a global enterprise, Yalla has faced a complex and dynamic international environment with many moving parts. Nevertheless, we forged ahead with our core business strategy and capital the year with so much results.

感謝大家參加我們的 2023 年第四季和全年財報電話會議。 2023年是充滿挑戰與機會的一年。身為全球性企業，雅拉麵臨著複雜、動態、充滿變化的國際環境。儘管如此，我們在這一年裡繼續推進我們的核心業務策略和資本，並取得了豐碩的成果。

I will begin with a brief overview of our pivotal achievements and financial performance in 2023. We continue to grow our two flagship applications, Yalla and Yalla Ludo. We also deepened our engagement in the mid-core and hard-core game business, building relationships with global players who are drawn to the surge of development in the MENA region. Meanwhile, we continue to improve our operating efficiency by optimizing costs and expenses through more rigorous vendor selection and management user acquisition strategy, refinements, and greater talent utilization.

首先，我將簡要概述我們 2023 年的關鍵成就和財務表現。我們繼續發展我們的兩個旗艦應用程式 Yalla 和 Yalla Ludo。我們也深化了對中核和硬核遊戲業務的參與，與受中東和北非地區發展浪潮所吸引的全球玩家建立了關係。同時，我們透過更嚴格的供應商選擇和管理用戶獲取策略、細化和更大的人才利用來優化成本和費用，從而持續提高營運效率。

We sustained our robust financial momentum as a result of this effort, ending the year with strong growth across our revenues from gaming activity as well as net income. Our fourth quarter revenue were USD80.9 million, exceeding the upper end of our guidance, while revenues from gaming services in the fourth quarter reached USD28.5 million, representing year-over-year growth of 35.2%.

由於這些努力，我們保持了強勁的財務勢頭，到年底我們的遊戲活動收入和淨利潤均實現了強勁增長。我們第四季的營收為 8,090 萬美元，超出了我們指導的上限，而第四季遊戲服務收入達到 2,850 萬美元，年增 35.2%。

For full year 2023, our revenue was USD318.9 million, while our net income reached to USD113.1 million, representing significant year-over-year growth of 43%. Our strong financial performance reflects the excellent execution of our effective quality growth strategy, supported by our solid business fundamentals and healthy cash position. We will continue to expand our services, hence stretch the boundaries of our business, launching innovative social networking and entertainment products to fulfill MENA users' evolving needs online. I'm also proud to share that that's well with all that trend and consistent financial performance.

2023年全年，我們的營收為3.189億美元，淨利達1.131億美元，年比大幅成長43%。我們強勁的財務表現反映出我們在堅實的業務基礎和健康的現金狀況的支持下，有效執行了高品質成長策略。我們將繼續擴展我們的服務，從而拓展我們的業務邊界，推出創新的社交網路和娛樂產品，以滿足中東和北非用戶不斷變化的線上需求。我還很自豪地與大家分享，這與所有趨勢和一致的財務表現相得益彰。

Yalla group was recognized by Fortune Magazine as one of the 2023 top 500 Arab companies according to the Fortune 500 Arabia list. The Fortune 500 is distinguishly showcasing the 500 largest companies in the Pacific region based on revenues. This year marked the inception of the approaching 500 Arabia, highlighting companies in MENA region. We'd like to extend our heartfelt gratitude to Fortune 500 Arabia for recognizing the Yalla Groups contributions and achievements with inclusion in this esteemed list.

根據《財星》阿拉伯500強排行榜，雅拉集團被《財星》雜誌評為2023年阿拉伯500強企業之一。《財星 500 強》根據收入重點展示了太平洋地區最大的 500 家公司。今年標誌著阿拉伯 500 強即將啟動，其中重點關注中東和北非地區的公司。我們衷心感謝阿拉伯財富 500 強企業認可雅拉集團的貢獻和成就，並將其列入這份受人尊敬的名單。

Next, let's turn to Yalla Groups development and future strategy. Yalla Group made several crucial moves this year, including the launch of our first two hardcore games. In the process of developing and operating these games, we gained vast experiences of current key effects of MENA gaming market, including product selection, product design, and user acquisition among others. Our comprehensive understanding of this market has proven invaluable as we continue to organize and change our professional team for this specific region. In turn, our growing expertise and the capabilities strengthen our determination to expand our footprint in the mid-core and hard-core game business in MENA.

接下來我們來看看雅拉集團的發展和未來策略。Yalla Group 今年採取了幾項關鍵舉措，包括推出前兩款硬核遊戲。在開發和營運這些遊戲的過程中，我們對當前中東和北非遊戲市場的關鍵影響獲得了豐富的經驗，包括產品選擇、產品設計和用戶獲取等。事實證明，我們對這個市場的全面了解非常寶貴，因為我們不斷為這個特定地區組織和更換我們的專業團隊。反過來，我們不斷增長的專業知識和能力增強了我們擴大在中東和北非中核和硬核遊戲業務足蹟的決心。

Moving forward, we will continue investing in mid-core and hard-core game and enriching our game pipeline. Mid-core game will be our particular focus as we believe they will optimally leverage our enormous pool of experienced talent and resources related to casual games in the region. Additionally, we are actively communicating with global top-tier gaming facilities to explore potential joint monetization opportunities in the region. We will keep you posted on our progress.

未來，我們將繼續投資中硬派遊戲，豐富我們的遊戲產品線。中核遊戲將是我們的特別關注點，因為我們相信它們將充分利用我們在該地區與休閒遊戲相關的大量經驗豐富的人才和資源。此外，我們正在積極與全球頂級博彩機構溝通，探索該地區潛在的聯合貨幣化機會。我們將隨時向您通報我們的進展。

Not fully, we also plan to enhance our social networking products this year. Situation, including innovative new functions and a host of a creative design upgrades will allow us to explore monetization while better serving MENA users' diverse and evolving needs. We captured and capitalized area of growing opportunities in 2023 as MENA grow on the global stage and its digital transformation grow and evolve.

不完全是，我們今年也計劃增強我們的社交網路產品。包括創新的新功能和一系列創意設計升級在內的情況將使我們能夠探索貨幣化，同時更好地服務中東和北非地區用戶多樣化和不斷變化的需求。隨著中東和北非地區在全球舞台上的發展及其數位轉型的不斷發展和發展，我們抓住並利用了 2023 年的成長機會。

We are pleased to see more and more visionary industry professionals and investors from around the world, allocating more resources to MENA and participating in searching development, propelling progress across the region. As the number one MENA-based online, social networking and gaming company, we are deeply committed to this market and the (inaudible) its unique advantages and specific user need.

我們很高興看到世界各地越來越多有遠見的行業人士和投資者向中東和北非地區配置更多資源，參與尋求發展，推動整個地區的進步。作為中東和北非地區排名第一的線上、社交網路和遊戲公司，我們深深致力於這個市場及其（聽不清楚）其獨特的優勢和特定的用戶需求。

We will continue to leverage our profound local insights to broaden our business horizons as we build the most popular destination for online social networking and entertainment in MENA. Now I will turn this call over to our President. Mr. Saifi Ismail for a closer look at our recent development.

我們將繼續利用我們深刻的本地洞察力拓寬我們的業務視野，打造中東和北非地區最受歡迎的線上社交網路和娛樂目的地。現在我將把這通電話轉交給我們的總統。Saifi Ismail 先生詳細介紹了我們最近的發展。

Hello, everyone. Thanks for joining us today. Let's take a closer look at our fourth-quarter operations and our product performance. We delivered another solid quarter with average monthly active users rising by 13.3% year over year to EUR36.2 million. Our average revenue per paying user also increased to USD6.5 in the fourth quarter from USD6.01 in the same period of last year.

大家好。感謝您今天加入我們。讓我們仔細看看我們第四季的營運和產品表現。我們的季度業績又表現強勁，平均每月活躍用戶年增 13.3%，達到 3,620 萬歐元。我們的每位付費用戶平均收入也從去年同期的 6.01 美元增加到第四季的 6.5 美元。

Additionally, our ongoing adjustments to our game mechanism aimed at boosting overall user engagement and delivering better user experiences has proven effective. Paying user increased by 6.2% quarter over quarter, demonstrating users' growing willingness to pay on our platform. For our flagship application, Yalla, we continue to improve gaming features in the fourth quarter. We also rolled out a series of operational activities, including the football carnival event, which was recommended by the App Store.

此外，我們對遊戲機制的持續調整旨在提高整體用戶參與度並提供更好的用戶體驗，事實證明是有效的。付費用戶較上季成長6.2%，顯示用戶在我們平台上的付費意願不斷增強。對於我們的旗艦應用程式 Yalla，我們在第四季度繼續改進遊戲功能。我們也推出了一系列營運活動，包括App Store推薦的足球嘉年華活動。

With respect to Yalla Ludo, I am pleased to announce the resounding success of our Yalla Ludo champion tournament. More than 150,000 players registered to participate in an intense series of over 1.8 million preliminary matches online, an overwhelming response that ultimately produced 32 exceptional finalists. These skilled players engaged in a highly competitive offline final at Saudi Arabia’s Riyadh VOV Gaming Center center on December 1, 2023, where three top winners emerged amid enthusiastic live audience participation.

關於雅拉盧多 (Yalla Ludo)，我很高興地宣布我們的雅拉盧多 (Yalla Ludo) 冠軍錦標賽取得了巨大成功。超過 15 萬名玩家註冊了超過 180 萬場的線上預賽，反應熱烈，最終產生了 32 名出色的決賽選手。2023年12月1日，這些技術精湛的選手在沙烏地阿拉伯利雅德VOV遊戲中心進行了一場競爭激烈的線下決賽，在現場觀眾的熱情參與下，最終決出了三名冠軍。

The Yalla Ludo champion tournament was more than just a competition. It was a celebration of the Yalla Ludo community. Events like these not only enhance our brand impact but also underscore our commitment to creating memorable, engaging experience and fostering a sense of (inaudible) and connection.

亞拉盧多冠軍賽不僅僅是一場比賽。這是亞拉盧多社區的慶祝活動。這類活動不僅增強了我們的品牌影響力，還強調了我們致力於創造令人難忘、引人入勝的體驗並培養（聽不清楚）和連結感的承諾。

Next, two additional highlight. First, we launched the Yalla Festival Event on the App Store across 13 countries in the MENA region this February, a milestone achievement in our development that further strengthen our brand awareness. This collaborative effort with the App Store featuring five of our flagship products not only underscores Apple recognition of Yalla products popularity in the region but also validate our efforts to meet MENA user's growing entertainment demand.

接下來，還有兩個亮點。首先，今年 2 月，我們在中東和北非地區 13 個國家的 App Store 上推出了 Yalla Festival 活動，這是我們發展過程中的里程碑式成就，進一步增強了我們的品牌知名度。這次與 App Store 合作推出我們的五款旗艦產品，不僅突顯了 Apple 對 Yalla 產品在該地區受歡迎程度的認可，也驗證了我們為滿足 MENA 用戶日益增長的娛樂需求所做的努力。

Moving forward, we will remain dedicated to developing more social networking and gaming applications tailored specifically for MENA user. Moreover, we will keep nurturing strong relationship with global channel to ensure that we continue to reach users effectively and provide them with the best possible experience.

展望未來，我們將繼續致力於開發更多專為中東和北非用戶量身定制的社交網路和遊戲應用程式。此外，我們將繼續與全球管道建立牢固的關係，以確保我們繼續有效地接觸用戶並為他們提供最佳的體驗。

Last but not least, we are honored to announce that Yalla group has been invited for an interview with Dubai's Department of Economy and Tourism, DET, with the ultimate vision of making Dubai the worlds leading destination of commerce, investment, and tourism. DET supports the government in positioning the Emirates as a major hub for global economic activity and tourism as well as in boosting the city's economic and tourism competitiveness indicators.

最後但並非最不重要的一點是，我們很榮幸地宣布，雅拉集團已受邀接受迪拜經濟和旅遊部(DET) 的採訪，其最終願景是使迪拜成為世界領先的商業、投資和旅遊目的地。DET 支持政府將阿聯酋定位為全球經濟活動和旅遊業的主要樞紐，並提高該市的經濟和旅遊業競爭力指標。

Notably the DET is committed to transforming Dubai into original gaming hub as evidenced by the 2022 launch of the Dubai e-sports and game festival. As the first Dubai-based technology unicorn listed on the NYSE, Yalla group serves as a key contributor to Dubai's dynamic landscape and is voiced to broaden the government's vision for the area.

值得注意的是，DET 致力於將杜拜轉變為原創遊戲中心，2022 年推出的杜拜電競和遊戲節就證明了這一點。作為第一家在紐約證券交易所上市的杜拜科技獨角獸公司，Yalla 集團是杜拜充滿活力的景觀的關鍵貢獻者，並致力於拓寬政府對該地區的願景。

We are dedicated to leveraging Dubai's strategic location as a business hub and its exceptional infrastructure to further develop our Yalla gaming products, facilitating the gaming sector development while driving the city's growth. We are profoundly grateful for DEt's invitation to this interview and for recognizing Yalla Group's leading role in the social networking and gaming industry in the MENA region.

我們致力於利用杜拜作為商業中心的戰略位置及其卓越的基礎設施，進一步開發我們的亞拉博彩產品，促進博彩業的發展，同時推動城市的發展。我們非常感謝 DEt 邀請我們接受這次採訪，並認可 Yalla Group 在中東和北非地區社交網路和遊戲產業的領先地位。

As we reiterate every quarter, Yalla aspire to become the number one online social networking and entertainment platform in the MENA region. We continue to build relationships locally and globally to broaden our business horizon and embrace the opportunities brought by MENA digital transformation.

正如我們每季重申的那樣，Yalla 渴望成為中東和北非地區第一大線上社交網路和娛樂平台。我們繼續在本地和全球範圍內建立關係，以拓寬我們的業務視野並擁抱中東和北非數位轉型帶來的機會。

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 of our stakeholders as we strive to achieve our mission. With that, I will now turn the call over to our CFO, Karen, who will discuss our key financial and operational results.

隨著整個地區即將進入新的成長時代，我們比以往任何時候都更加致力於為中東和北非地區的人民提供更好的數位生活。我們相信，我們有能力抓住中東和北非地區的潛在成長機會，我們期待在努力實現我們的使命的同時，為所有利害關係人創造價值。現在，我將把電話轉給我們的財務長凱倫，她將討論我們的主要財務和營運表現。

Thank you, Saifi. Hello, everyone. Thank you for joining us today. We delivered a robust financial performance in 2023 with full-year revenues rising to USD318.9 million, another testament to our ability to drive growth in a rapidly evolving environment.

謝謝你，賽菲。大家好。感謝您今天加入我們。2023 年，我們實現了強勁的財務業績，全年收入增至 3.189 億美元，這再次證明了我們在快速發展的環境中推動成長的能力。

In the past year, we continue to actively optimize costs and expenses and improve our overall efficiency. As a result, we greatly enhanced our profitability recording significant growth for both the fourth quarter and the full year. Specifically, fourth-quarter net income increased by 79% year over year to USD29.7 million, while full-year net income increased by 43% year over year to USD113.1 million with a net margin of 35.5% compared with 26% last year.

過去一年，我們持續積極優化成本費用，提升整體效率。因此，我們的獲利能力大幅提升，第四季和全年均實現顯著成長。具體而言，第四季淨利年增79%，達到2,970萬美元，全年淨利年增43%，達1.131億美元，淨利率為35.5%，上年同期為26%。

As we head into 2024, we will continue to pursue quality growth, improve operational efficiency, and invest in our Yalla ecosystem. We believe our solid business fundamentals and healthy cash position will empower us to capitalize on future opportunities, driving sustainable and long-term growth.

進入 2024 年，我們將繼續追求高品質成長，提高營運效率，並投資我們的 Yalla 生態系統。我們相信，我們堅實的業務基礎和健康的現金狀況將使我們能夠利用未來的機會，推動永續和長期的成長。

Let's move on to our detailed financials for the fourth quarter of 2023. Our revenues were USD80.9 million in the fourth quarter of 2023, a 7.7% increase from USD75.1 million in the fourth quarter of last year. The increase was primarily driven by the broadening of our user base and our enhanced monetization capability. Our solid revenue growth has also partially attributable to the significant increase in ARPPU, which grew from USD6.01 in the fourth quarter of 2022 to $6.58 in the fourth quarter of 2023.

讓我們繼續了解 2023 年第四季的詳細財務數據。2023 年第四季我們的營收為 8,090 萬美元，比去年第四季的 7,510 萬美元成長 7.7%。這一成長主要是由於我們用戶群的擴大和貨幣化能力的增強。我們營收的穩健成長也部分歸功於 ARPPU 的大幅成長，從 2022 年第四季的 6.01 美元成長到 2023 年第四季的 6.58 美元。

Now let's take a look at our costs and expenses. Our total costs and expenses were USD57.6 million in the fourth quarter of 2023, a 4.1% decrease from USD60.1 million in the same period of last year. Our cost of revenues increased by 11.4% to USD30.6 million in the fourth quarter of 2023 from USD27.4 million in the same period of last year, primarily due to an increase in incentive compensation and a one-time game cost related to UI design fees.

現在讓我們來看看我們的成本和費用。2023年第四季我們的總成本和費用為5,760萬美元，比去年同期的6,010萬美元下降4.1%。我們的收入成本從去年同期的 2,740 萬美元增加到 2023 年第四季的 3,060 萬美元，成長了 11.4%，主要是因為激勵補償和與 UI 相關的一次性遊戲成本增加設計費。

Cost of revenues as a percentage of total revenues increased to 37.8% in the fourth quarter of 2023 compared with 36.5% in the same period of last year. Our selling and marketing expenses were USD10.4 million in the first quarter of 2023, a 27.3% decrease from USD14.3 million in the same period of last year, primarily driven by our more disciplined advertising and promotion approach and lower share-based compensation expenses recognized in the fourth quarter of 2023. Selling and the marketing expenses as a percentage of total revenues decreased from 19% in the fourth quarter of 2022 to 12.8% in the fourth quarter of 2023.

2023年第四季，收入成本佔總收入的比例升至37.8%，而去年同期為36.5%。2023 年第一季度，我們的銷售和行銷費用為 1,040 萬美元，比去年同期的 1,430 萬美元下降 27.3%，這主要是由於我們更嚴格的廣告和促銷方法以及較低的股權薪酬所致2023 年第四季確認的費用。銷售和行銷費用佔總收入的百分比從 2022 年第四季的 19% 下降至 2023 年第四季的 12.8%。

Our general and administrative expenses were USD11.3 million in the fourth quarter of 2023, a 13.3% decrease from USD13 million in the same period of last year, primarily driven by lower share-based compensation expenses recognized in the fourth quarter of 2023, general and administrative expenses as a percentage of total revenues decreased from 17.4% in the fourth quarter of 2022 to 14% in the fourth quarter of 2023.

2023 年第四季我們的一般及管理費用為 1,130 萬美元，較去年同期的 1,300 萬美元下降 13.3%，主要是由於 2023 年第四季度確認的股權激勵費用減少、一般及管理費用減少。佔總收入的百分比從2022年第四季的17.4%下降至2023年第四季的14%。

Our technology and product development expenses remained stable at USD5.4 million in the fourth quarter of 2023 and in the same period of last year. Technology and product development expenses as a percentage of our total revenues decreased from 7.2% in the fourth quarter of 2022 to 6.7% in the fourth quarter of 2023.

2023年第四季度，我們的技術和產品開發費用與去年同期保持穩定在540萬美元。技術和產品開發費用佔總收入的百分比從2022年第四季的7.2%下降至2023年第四季的6.7%。

As such, our operating income was USD23.3 million in the fourth quarter of 2023, a 55.2% increase from USD15 million in the same period of last year. Excluding share-based compensation expenses, our non-GAAP operating income in the fourth quarter of 2023 was USD27.1 million, up 34.1% year over year. Our interest income was USD6.5 million in the fourth quarter of 2023 compared with USD2.3 million in the same period of 2022, primarily due to an increase in interest rates applicable to company's bank deposits and the continued increase in the company's cash position.

因此，2023年第四季我們的營業收入為2,330萬美元，比去年同期的1,500萬美元成長55.2%。不計入股權激勵費用，2023年第四季我們的非公認會計準則營業收入為2,710萬美元，較去年同期成長34.1%。2023年第四季我們的利息收入為650萬美元，而2022年同期為230萬美元，主要是由於公司銀行存款利率上調以及公司現金部位持續增加。

Our income tax expense was USD539,000 in the fourth quarter of 2023 compared with USD416,000 in the same period of last year. Moving to our bottom line, our net income increased by 79% to USD29.7 million in the fourth quarter of 2023 compared with USD16.6 million in the same period oflast year.

2023 年第四季我們的所得稅費用為 539,000 美元，而去年同期為 416,000 美元。說到利潤，我們的淨利潤在 2023 年第四季成長了 79%，達到 2,970 萬美元，而去年同期為 1,660 萬美元。

Next, I would like to briefly review our liquidity and capital resources. Our cash position remains solid. As of December 31, 2023, we had cash and cash equivalents, restricted cash, term deposits, and short-term investments of USD535.7 million, compared with USD453 million as of December 31, 2022. Under our USD150 million share repurchase program that began on May 21, 2021 and has since been extended by our Board through May 21, 2024, we have cumulatively repurchased 3,972,876 ADS or Class A ordinary shares in the open market cash repurchases, totaling approximately USD35.5 million at December 31, 2023.

接下來我想簡單回顧一下我們的流動性和資金來源。我們的現金狀況依然穩定。截至2023年12月31日，我們的現金及現金等價物、受限現金、定期存款及短期投資為5.357億美元，截至2022年12月31日為4.53億美元。根據我們於2021 年5 月21 日開始並由董事會延長至2024 年5 月21 日的1.5 億美元股票回購計劃，我們已在公開市場現金回購中累計回購了3,972,876 股ADS 或A 類普通股，總額約35 美元。

Moving to our outlook for the first quarter of 2024, we expect our revenues to be between USD72 million and USD79 million. The above outlook is based on current market conditions and reflects the company's management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. In the interest of time, please refer to our earnings press release for future the details of our fourth-quarter and full-year 2023 financial results. This concludes our prepared remarks for today. Operator, we are ready to take questions.

展望 2024 年第一季度，我們預計營收將在 7,200 萬美元至 7,900 萬美元之間。上述展望基於當前市場狀況，反映了公司管理層對市場和經營狀況以及客戶需求的當前和初步估計，這些估計均可能發生變化。由於時間關係，請參閱我們的收益新聞稿，以了解我們第四季度和 2023 年全年財務業績的詳細資訊。我們今天準備好的演講到此結束。接線員，我們準備好回答問題。

(Operator Instructions) Chenghao Li, CICC.

（操作員指示） 李成浩，CICC。

Hi, management. Thanks for taking my question and congratulations on another solid quarter. I have two questions. First, what have we learned from the operation of the two mid to hardcore games? And how should we consider our strategy of the game business in this year?

嗨，管理層。感謝您提出我的問題，並祝賀又一個穩定的季度。我有兩個問題。首先，我們從兩款中硬派遊戲的運作中學到了什麼？那麼我們今年的遊戲業務策略又該如何考慮呢？

And secondly, how should we see the development trend of the two flagship titles, Yalla and Yalla Ludo in this year? And are there any changes in the competitive landscape in the MENA region? Thank you.

其次，我們該如何看待Yalla和Yalla Ludo這兩款旗艦遊戲今年的發展趨勢？中東和北非地區的競爭格局有何變化？謝謝。

Hi, Chenghao. Thank for your question. I would take your first question and leave the second one to Saifi. The two mid to hardcore game, as our initial offerings have shouldered significant responsibilities, they have allowed us to gain valuable insights into local user preferences and successfully recruit and train a local operations team, paving the way for our further development in this field.

嗨，成浩。謝謝你的提問。我將回答你的第一個問題，並將第二個問題留給賽菲。這兩款中硬派遊戲作為我們最初的產品肩負著重大的責任，它們讓我們能夠深入了解當地用戶的喜好，並成功招募和培訓當地的營運團隊，為我們在該領域的進一步發展鋪平了道路。

At this stage, we believe they have completed their main goals, and we realize that these two products are projected to fall short of the company's revenue expectations despite several rounds of optimization. So after careful evaluation going forward, we will shift more of our focus to new product in our development pipeline.

現階段，我們認為他們已經完成了主要目標，我們意識到，儘管經過幾輪優化，這兩款產品預計仍將達不到公司的收入預期。因此，經過仔細的評估後，我們將把更多的注意力轉移到我們開發管道中的新產品上。

Regarding our game strategy, firstly, we're looking to collaborate with more mature gaming studios or those with successful game publishing. We will carefully select game content that is most suitable for the MENA markets, leveraging our localized expertise. Secondly, we plan to look for opportunities to collaborate with global players who are interested in ENA market to capitalize on our monetization strategies and our activities in community engagement.

關於我們的遊戲策略，首先，我們希望與更成熟的遊戲工作室或那些擁有成功遊戲發行的工作室合作。我們將利用我們的在地化專業知識，精心挑選最適合中東和北非市場的遊戲內容。其次，我們計劃尋找機會與對 ENA 市場感興趣的全球參與者合作，以利用我們的貨幣化策略和社區參與活動。

Lastly, we are committed to our in-house development team, continuous enhancement, and professional growth. We expect to introduce in a series of new self-developed mid-core games this year. I'll keep you updated if we have any further progress. Thank you.

最後，我們致力於內部開發團隊的持續改善和專業成長。我們預計今年將推出一系列新的自主研發的中核遊戲。如果我們有任何進一步進展，我會及時通知您。謝謝。

Hi, Chenghao. I will take your second question. The performances of Yalla and Yalla Ludo currently remain very stable. We have cultivated a vibrant, highly engaged community with a loyal user base. And both products are exhibiting long cycles. We are confident that both products will continue to develop well and maintain their momentum.

嗨，成浩。我來回答你的第二個問題。Yalla和Yalla Ludo的表現目前仍然非常穩定。我們培養了一個充滿活力、高度參與的社區，擁有忠實的用戶群。這兩種產品都表現出長週期。我們有信心這兩款產品將繼續良好發展並保持動力。

We are also actively working on improvement as well as making some bold experiments hopeful of even better performances from these two products. In terms of competition, every quarter, we address questions about the competition, reflecting the fact that competition in the MENA region is always present and constantly evolving.

我們也積極致力於改進，並進行一些大膽的實驗，希望這兩款產品能有更好的性能。在競爭方面，每季我們都會解決有關競爭的問題，反映出中東和北非地區的競爭始終存在且不斷發展的事實。

During the past quarter, no significant new competitors have entered the market. Of course, we are aware of an increasing number of companies exploring overseas expansion with the Middle East emerging as the popular destination. This trend may introduce multiple new variable.

在過去的季度中，沒有重要的新競爭對手進入市場。當然，我們注意到越來越多的公司正在探索海外擴張，其中中東成為熱門目的地。這一趨勢可能會引入多個新的變數。

However, at present, we see that the competitive landscape seems stable, even with big names like TikTok, which have been in the Middle East market for awhile. Nevertheless, our team have been monitoring the trend closely for emerging opportunities, and we will share with new observations if any. Thank you.

然而，目前我們看到競爭格局似乎很穩定，即使是像 TikTok 這樣已經進入中東市場一段時間的大公司。儘管如此，我們的團隊一直在密切關注這一趨勢，尋找新的機會，如果有新的觀察結果，我們將與大家分享。謝謝。

Xueqing Zhang, CICC.

張學慶，中金公司。

Hi management. Thanks for taking my question and congratulations on a solid quarter. My first question is about financial outlook. How should we think about revenue growth and margin change this year?

嗨，管理層。感謝您提出我的問題，並祝賀本季表現穩定。我的第一個問題是關於財務前景。我們該如何看待今年的營收成長和利潤率變化？

And my second question is about shareholder return, can management share some details on the share buyback and the dividend payment in the future. Thank you.

我的第二個問題是關於股東回報，管理階層能否分享一些有關未來股票回購和股利支付的細節。謝謝。

Hi, Xueqing. Glad to have you here. Thanks for your questions. For 2024, regarding our current product portfolio, we are so confident that we can at least maintain our top line at current stable level. At the same time, we are looking forward to revenue contributors from new products and business collaborations in the coming year.

嗨，雪晴。很高興你來到這裡。感謝您的提問。對於2024年，就我們目前的產品組合而言，我們非常有信心至少可以將營收維持在目前的穩定水準。同時，我們期待來年新產品和業務合作的收入貢獻。

We expect our margin to be around 40% for the year, excluding potential investments in new products. In new products, our margin may fluctuate around 35%. For your second question about the share repurchase and dividend, Yalla is dedicated to return value to shareholders through our share repurchase program. As of December 31, 2023, we have repurchased a total of USD35.5 million.

我們預計今年的利潤率約為 40%，不包括新產品的潛在投資。在新產品中，我們的利潤率可能會在35%左右波動。關於第二個問題，關於股票回購和股息，Yalla致力於透過我們的股票回購計畫為股東回報價值。截至2023年12月31日，我們已回購總額為3,550萬美元。

Given our solid fundamentals, we will continue to contract our share repurchase program well considering cash dividend payments in dual case. We will keep you posted if there are any updates. In short, we are confident in Yalla's long-term prospects and are committed to creating value for all stakeholders. I hope that answers your question. Thanks again.

鑑於我們堅實的基本面，我們將繼續收縮我們的股票回購計劃，並考慮雙重情況下的現金股利支付。如果有任何更新，我們會及時通知您。總之，我們對Yalla的長期前景充滿信心，並致力於為所有利害關係人創造價值。我希望這能回答你的問題。再次感謝。

Kaifang Jia, CITIC.

賈開芳，中信銀行。

Hi, management. Thanks for taking my question and I have a question about your strategy in 2024. Management, share what is the company's key focus in 2024?

嗨，管理層。感謝您提出問題，我對您 2024 年的策略有疑問。管理階層，請分享一下公司2024年的重點工作是什麼？

HI, Kaifang, this is Tao. Thanks for the question. As a first mover in this market, we focus our attention on the stability and growth of our strategy and applications to maintain our leading position in the market. So we have the two products and drive through and job growth this year by adopting a more innovative approach and undertaking further experimentation.

嗨，凱芳，我是濤。謝謝你的提問。作為這個市場的先驅，我們專注於我們的策略和應用程式的穩定性和成長，以保持我們在市場上的領先地位。因此，我們擁有這兩種產品，並透過採用更具創新性的方法並進行進一步的實驗來推動今年的就業成長。

\We do note start Yalla and Yalla Ludo's competitiveness and the long-tail growth momentum in the Middle East market. Meanwhile, we also assume more responsibility for new product development. And we will allocate our important resources to the planning and the implementation of our revenue growth products. Thank you.

我們確實注意到Yalla 和Yalla Ludo 的競爭力以及中東市場的長尾成長動力。同時，我們也承擔了更多新產品開發的責任。我們將分配重要資源來規劃和實施我們的收入成長產品。謝謝。

Xiaoyue Hu, Haitong International.

胡曉月，海通國際。

Hello management. Thank you for taking my question. So my question is that the Middle East has become a go-to market for a lot of investors in the past year. So what is Yalla's plan for potential corporation? Thank you.

管理層您好。感謝您回答我的問題。所以我的問題是，中東在過去的一年裡已經成為許多投資者的首選市場。那麼 Yalla 對潛在合作的計畫是什麼？謝謝。

Good morning, [Sarah]. Thank you for the question. As MENA role on the global stage has grown, we have seen growing opportunities with increasing attention and resources from around the world participating in it's surging development. As a company rooted in MENA, we believe its vibrant market, will drive our further development.

早安,[莎拉]。謝謝你的提問。隨著中東和北非地區在全球舞台上的作用不斷增強，我們看到世界各地越來越多的關注和資源參與其蓬勃發展，帶來了越來越多的機會。作為一家紮根於中東和北非地區的公司，我們相信其充滿活力的市場將推動我們的進一步發展。

The MENA market has its own characteristics, which can be very different from other markets. We are continuously navigating the market dynamics while actively exploring alternatives and potential collaborations. We will keep you posted on the progress. Thank you.

中東和北非市場有自己的特點，與其他市場有很大不同。我們不斷掌握市場動態，同時積極探索替代方案和潛在合作。我們將隨時向您通報進度。謝謝。

Lincoln Kong, Goldman Sachs.

林肯·孔，高盛。

Thank you, management, for taking my question. My first question is about the gaming business. So can management give us some updates in terms of the game publishing strategy and also the game pipeline in the few years.

謝謝管理層回答我的問題。我的第一個問題是關於遊戲業務的。那麼管理階層能否給我們一些關於遊戲發行策略以及未來幾年遊戲管道的更新。

And the second question is in terms of what are the growth driver for 2024 when we're thinking about the overall business growth? Thank you.

第二個問題是，當我們考慮整體業務成長時，2024年的成長動力是什麼？謝謝。

Thanks, Lincoln. Thanks for your question. I'll take your first one. We are actually proactively speaking with global top-tier gaming studios to explore potential cooperation, and we now have a clearer road map and some potential options.

謝謝，林肯。謝謝你的提問。我會拿走你的第一個。我們實際上正在積極與全球頂級遊戲工作室洽談潛在的合作，現在我們已經有了更清晰的路線圖和一些潛在的選擇。

In the process of exploring the sector, we are gaining experience, which empowers us to better move forward and achieve positive outcomes. We also have some new self-developed mid-core games in our pipeline. We will share more details when we have made further meaningful progress. Thank you.

在探索的過程中，我們累積了經驗，這使我們能夠更好地前進並取得積極成果。我們還有一些新的自主開發的中核遊戲正在開發中。當我們取得進一步有意義的進展時，我們將分享更多細節。謝謝。

Good morning, Lincoln. This is Tao. I will take the second question. For the year 2024, we will still be dedicated to enhancing and developing our collection further. We are proud of Yalla and Yalla Ludo service and good performance, and we do expect the two products to unlock more growth potential this year.

早上好，林肯。這是陶。我來回答第二個問題。2024 年，我們仍將致力於進一步增強和發展我們的產品系列。我們對 Yalla 和 Yalla Ludo 的服務和良好表現感到自豪，我們確實預計這兩款產品今年將釋放更多成長潛力。

We see the potential to further penetrate the market. Also, as we earlier introduced, we anticipate the launch of new mid-core and hard-core game as the important potential growth driver. Thank you, Lincoln.

我們看到了進一步滲透市場的潛力。此外，正如我們之前介紹的，我們預計新的中核和硬核遊戲的推出將成為重要的潛在成長動力。謝謝你，林肯。

Rachel Guo, Nomura.

雷切爾·郭，野村證券。

Hi, management. Thanks for taking my question. My question is about your business expansion. Would the company consider expanding your business to more regions globally besides your Middle East? Thanks.

嗨，管理層。感謝您提出我的問題。我的問題是關於你們的業務擴張。公司是否會考慮將您的業務擴展到中東以外的全球更多地區？謝謝。

Hi, Rachel. Thank you for your question. This is Tao. So first of all, we remain dedicated to the Middle East market while also keeping our eye on opportunities in other markets, especially for some of our new products in our portfolio. If we see their potential to be distributed, not only in the MENA market but also in other markets, we may consider conducting global promotions. Our main focus is, undoubtedly, on the Middle East market where we have unique advantages. And we will continue to leverage our core capabilities to unlock our growth potential. Thank you, Rachel.

嗨，雷切爾。謝謝你的提問。這是陶。因此，首先，我們仍然致力於中東市場，同時也密切關注其他市場的機會，特別是我們產品組合中的一些新產品。如果我們看到它們的潛力，不僅在中東和北非市場，而且在其他市場，我們可能會考慮進行全球促銷。毫無疑問，我們的重點是中東市場，我們有獨特的優勢。我們將繼續利用我們的核心能力來釋放我們的成長潛力。謝謝你，雷切爾。

Thank you. As there are no further questions now, I'd like to turn the call back over to management for closing remarks.

謝謝。由於現在沒有其他問題了，我想將電話轉回給管理層進行總結發言。

Thank you once again, for joining us today. We look forward to speaking with you in next quarter. If you have further questions, please feel free to contact Yalla's Investor Relations or Piacente Financial Communications. Both parties contact information is available in today's press release as well as on our company website. Thank you.

再次感謝您今天加入我們。我們期待在下個季度與您交談。如果您還有其他疑問，請隨時聯絡 Yalla 投資者關係部或 Piacente Financial Communications。雙方的聯絡資訊可在今天的新聞稿以及我們公司的網站上找到。謝謝。

Thank you. This concludes the conference call. You may now disconnect your line and thank you.

謝謝。電話會議到此結束。您現在可以斷開線路並表示感謝。