Yalla Group Ltd (YALA) 2024 Q3 法說會逐字稿

Good morning, and good evening, ladies and gentlemen. Thank you for standing by for Yalla Group Limited's third-quarter 2024 earnings conference call. (Operator Instructions) Today's conference call is being recorded.

早安，晚上好，女士們先生們。感謝您出席 Yalla Group Limited 的 2024 年第三季財報電話會議。（操作員指示）今天的電話會議正在錄音。

Now I will turn the call over to your speaker host today, Ms. Kerry Gao, IR Director of the company. Please go ahead.

現在我將電話轉給今天的演講主持人，公司IR總監高嘉女士。請繼續。

Hello, everyone, and welcome to Yalla's third-quarter 2024 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 outlets. 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.

大家好，歡迎參加 Yalla 2024 年第三季財報電話會議。今天早些時候，我們發布了收益新聞稿，該新聞稿現已在我們的投資者關係網站和新聞專線網站上發布。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。

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.

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。

Yalla does not assume any obligation to update any forward-looking statements, except as required by law. Please also note that 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.

除法律要求外，Yalla 不承擔更新任何前瞻性聲明的義務。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, we'll 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. Mrs. Karen Hu, our Chief Financial Officer, will then provide additional details on the company's financial results and discuss our financial outlook. Following management's prepared remarks, we will open the call to questions. Mr. Jeff Xu, our Chief Operating Officer, will join the Q&A section.

今天，我們將聽取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。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。

With that said, I would now like to turn the call over to our Chairman and Chief Executive Officer, Mr. Tao Yang. Please go ahead, sir.

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 third-quarter 2024 earnings conference call. We are thrilled to report a robust quarter, marked by record high revenues and enhanced profitability. Our third-quarter revenues reached USD88.9 million, exceeding the upper end of our guidance by 8%, while our net income increased by 11.2% year-over-year to USD39.2 million.

感謝大家參加我們的 2024 年第三季財報電話會議。我們很高興報告一個強勁的季度，其特點是創紀錄的高收入和增強的盈利能力。第三季營收達到 8,890 萬美元，超出指導上限 8%，淨利潤年增 11.2% 至 3,920 萬美元。

Behind this impressive performance was our continued commitment to deepening our localization capabilities, which enabled us to keep rolling out new gamification features and operating events that fulfill MENA users' social and entertainment needs. Driving quality revenue growth while improving operating efficiencies has been a key company objective this year. To that end, the team has consistently refined operational procedures and optimized user acquisition strategies over the past several quarters.

這一令人印象深刻的業績背後是我們對深化在地化能力的持續承諾，這使我們能夠不斷推出新的遊戲化功能和營運活動，以滿足中東和北非用戶的社交和娛樂需求。推動優質營收成長，同時提高營運效率是公司今年的關鍵目標。為此，團隊在過去幾季不斷完善營運流程並優化用戶獲取策略。

Moving forward, we will remain focused on user experience and product excellence, enriching our product ecosystem and pursuing high-quality sustainable development. MENA's digital transformation has progressed rapidly this year, enjoying a surge of global attention, talent and investment to the region. We have seen gaming emerge as one of the critical drivers of this digital transformation.

未來，我們將持續聚焦使用者體驗和產品卓越，豐富產品生態，追求高品質永續發展。今年，中東和北非地區的數位轉型進展迅速，全球對該地區的關注、人才和投資激增。我們已經看到遊戲成為這場數位轉型的關鍵驅動力之一。

GCC countries are introducing supportive policies and initiatives to facilitate the development of the gaming and esports sectors. This summer, the Esports World Cup put Saudi Arabia in the global spotlight for gamers and industry professionals worldwide with over 1,500 players worldwide competing across multiple games for record-breaking USD60 million prize.

海灣合作委員會國家正在推出支持性政策和舉措，以促進遊戲和電競產業的發展。今年夏天，電競世界盃讓沙烏地阿拉伯成為全球遊戲玩家和行業專業人士的焦點，全球超過 1,500 名玩家將在多場比賽中爭奪破紀錄的 6000 萬美元獎金。

The event showcased key MENA country's policy commitment to the gaming industry and their infrastructure capacity for large-scale events. As a crucial growth market for the global gaming industry, MENA still holds immense potential for further development. which is gradually being unleashed. Looking at the group's business, gaming services are now a revenue contributor with growing importance within our group. The proportion of revenues attributable to game services has surpassed 30% over the past few years.

該活動展示了中東和北非主要國家對博彩業的政策承諾及其舉辦大型活動的基礎設施能力。作為全球遊戲產業的重要成長市場，中東和北非地區仍擁有巨大的進一步發展潛力。正在逐漸被釋放。縱觀集團業務，遊戲服務現已成為我們集團內的收入貢獻者，其重要性與日俱增。過去幾年遊戲服務收入佔比超過30%。

In addition, our keen insights into MENA's gaming industry dynamics have led to our proactive entry into the mid-core and hard-core game market with Yalla Games. We currently have several staff developed mid-core and hard-core games to -- and expect to begin testing some of them by year-end. Our product development and release schedules are designed to bring premium polished games to market at optimal time to capture their corresponding user base and market share. And we look forward to seeing this new initiative per batch growth in the upcoming years.

此外，我們對中東和北非地區遊戲產業動態的敏銳洞察促使我們與 Yalla Games 一起積極進入中核和硬核遊戲市場。目前，我們有幾名員工開發中核和硬核遊戲，並預計在年底前開始測試其中一些遊戲。我們的產品開發和發佈時間表旨在最佳時間將優質遊戲推向市場，以獲得相應的用戶群和市場份額。我們期待在未來幾年看到這項新舉措每批的成長。

Expanding from casual games to mid-core and hard-core game is a milestone, not a sprint. We are committed to elevating Yalla Games standing in MENA's mid-core and hard-core game market, capitalizing on our wealth of experience and know-how in casual games to drive success. Guided by Yalla's core organizational values, [I mean, UST], especially the last two letters for Simple and Target, we will continue to refine every Yalla game product by taking a straightforward and pragmatic approach. We are confident that we can engage our loyal users in the region, whom we served for nearly a decade with high-quality games that align with the Yalla brand while also leveraging these new games to broaden Yalla Group's product ecosystem and market reach.

從休閒遊戲擴展到中硬派遊戲是一個里程碑，而不是衝刺。我們致力於提升 Yalla Games 在中東和北非中核和硬核遊戲市場的地位，利用我們在休閒遊戲方面豐富的經驗和專業知識來推動成功。在Yalla的核心組織價值觀[我的意思是UST]，特別是Simple和Target的最後兩個字母的指導下，我們將繼續以簡單務實的方式完善每個Yalla遊戲產品。我們有信心能夠透過與 Yalla 品牌相符的高品質遊戲吸引該地區的忠實用戶，同時利用這些新遊戲擴大 Yalla 集團的產品生態系統和市場覆蓋範圍。

In conclusion, the phased rollout of digital transformation initiatives across MENA countries is steadily unlocking the market growth potential. As the largest online social networking and gaming platform in MENA, we will seize every opportunity to contribute to this transformation and the economic development of the region.

總之，中東和北非國家分階段推出的數位轉型措施正在穩步釋放市場成長潛力。作為中東和北非地區最大的線上社交網路和遊戲平台，我們將抓住一切機會，為這項轉型和該地區的經濟發展做出貢獻。

With strong business fundamentals and increasingly robust product ecosystem, we have full confidence in our ability to expand our role in the region's evolution. Now I will turn this call over to our President, our -- Saifi Ismail, for a closer look at our recent development.

憑藉強大的業務基礎和日益強大的產品生態系統，我們對擴大我們在該地區發展中的作用的能力充滿信心。現在我將把這個電話轉給我們的總統賽菲·伊斯梅爾，讓他更仔細地了解我們最近的發展。

Hello, everyone. Thanks for joining us today. Let's move on to our third quarter operations and the performance of our products. We continued to broaden our user base, thanks to our strong execution of effective user acquisition strategies. Our average monthly active users grew to 40.2 million, up 14.5% year-over-year.

大家好。感謝您今天加入我們。讓我們繼續討論第三季的營運情況和產品的表現。由於我們強而有力地執行了有效的用戶獲取策略，我們不斷擴大我們的用戶基礎。我們的平均每月活躍用戶增至 4,020 萬，年增 14.5%。

As we dedicated to enhancing our product gamification and user experience, our paying users increased to 12.6 million, up 12% year-over-year. During the quarter, our products demonstrated remarkable strength with Yalla Ludo and 101 Okey Yalla, both setting new quarterly revenue records. We were delighted to reach new heights within our casual game metrics and look forward to replicating Yalla Ludo's success with other products.

由於我們致力於增強產品遊戲化和用戶體驗，我們的付費用戶增加至 1,260 萬，較去年同期成長 12%。本季度，我們的產品展現了非凡的實力，Yalla Ludo 和 101 Okey Yalla 均創下了新的季度收入記錄。我們很高興在休閒遊戲指標上達到新的高度，並期待在其他產品中複製 Yalla Ludo 的成功。

As we advance the company's development, we continue to identify and create products with deep cultural roots that attract a strong user base in MENA while keeping a close eye on market dynamics and users' changing needs. Our highly skilled team boost a profound understanding of MENA users' preferences, empowering the consistent development of products as well as online and offline events with enduring appeal.

在推動公司發展的同時，我們不斷尋找和創造具有深厚文化根基的產品，吸引中東和北非地區強大的用戶群，同時密切關注市場動態和用戶不斷變化的需求。我們的高技能團隊深入了解中東和北非地區用戶的喜好，使產品的持續開發以及線上線下活動具有持久的吸引力。

For instance, this quarter, we expanded the regional footprint of our Ludo Champion Offline Tournament series. Our team not only hosted two tournaments in Abu Dhabi and Egypt, but also teamed up with the UAE Esports Federation to host an additional Yalla Ludo Offline Tournament in Abu Dhabi. This steady stream of offline events has deepened our brand awareness, solidifying Yalla Ludo's industry leadership while also meeting MENA users' entertainment needs. We will continue to cooperate with local and global industry participants to increase user engagement and facilitate development across MENA's gaming industry. We also upgraded Yalla, our flagship products with a diverse array of fresh features.

例如，本季度，我們擴大了 Ludo Champion 線下錦標賽系列的區域覆蓋範圍。我們團隊不僅在阿布達比和埃及舉辦了兩場比賽，還與阿聯酋電競聯合會合作在阿布達比額外舉辦了一場Yalla Ludo線下錦標賽。源源不絕的線下活動加深了我們的品牌知名度，鞏固了 Yalla Ludo 的行業領導地位，同時也滿足了中東和北非地區用戶的娛樂需求。我們將繼續與本地和全球行業參與者合作，提高用戶參與度並促進整個中東和北非地區遊戲產業的發展。我們也對我們的旗艦產品 Yalla 進行了升級，提供了多種新鮮功能。

We were pleased to see Yalla users investing significant time and game currency into our engaging on-trend activities. This quarter, we embedded a crazy soccer game in Yalla's chat room, tapping into this soccer currently sweeping the Middle East, chat room users compete in teams and make plays by sending messages and gifts in the chat room, fostering stronger social ties and deeper user engagement.

我們很高興看到 Yalla 用戶投入大量時間和遊戲幣來參與我們的熱門活動。本季度，我們在Yalla的聊天室中嵌入了一款瘋狂的足球遊戲，利用目前席捲中東的足球運動，聊天室用戶透過在聊天室中分組比賽、發送訊息和禮物進行比賽，培養更牢固的社交關係和更深層的用戶訂婚。

On a related note, I was honored to be invited for an interview this quarter by [Pocket Gamer], a globally recognized media leader in the mobile gaming industry, celebrated for its cutting-edge news and insights. We delved into the emerging trends shaping MENA's social networking and gaming industry during our in-depth exchange with a particular focus on the crucial importance of content localization. We are grateful to Pocket Gamer for this opportunity and its recognition of Yalla Group's leadership in MENA's social networking and gaming industry.

與此相關的是，我很榮幸本季受邀接受 [Pocket Gamer] 的採訪，Pocket Gamer 是全球公認的行動遊戲產業媒體領導者，以其前沿的新聞和見解而聞名。在深入交流中，我們深入探討了塑造中東和北非社交網路和遊戲產業的新興趨勢，特別關注內容在地化的至關重要性。我們感謝 Pocket Gamer 提供的這個機會以及對 Yalla Group 在中東和北非社交網路和遊戲產業領導地位的認可。

As a leading MENA-based Internet company, we remain dedicated to creating social and economic value by enhancing digital lifestyle and advancing the region's digital transformation. To sum up, as MENA's leader in online social networking and gaming, we will continue delivering high-quality products and services to our users while playing an active role in the region's digital transformation.

作為中東和北非地區領先的互聯網公司，我們始終致力於透過提升數位生活方式和推動該地區的數位轉型來創造社會和經濟價值。總而言之，作為中東和北非線上社交網路和遊戲領域的領導者，我們將繼續為用戶提供高品質的產品和服務，同時在該地區的數位轉型中發揮積極作用。

We are poised to broaden our business horizon and enhance external collaboration, consistently elevating our brand influence. And as always, we will stay true to our vision to become the largest online social networking and entertainment platform in the MENA region.

我們將持續拓寬業務視野，加強對外合作，並不斷提升品牌影響力。我們將一如既往地恪守我們的願景，成為中東和北非地區最大的線上社交網路和娛樂平台。

With that, I will now turn the call over to our CFO, Karen, who will discuss our key financial and operational results.

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. During the third quarter, we continued to execute high-quality growth strategies leading to our revenues reaching an all-time high. We also continue to boost efficiency and operating leverage.

謝謝你，賽菲。大家好。感謝您今天加入我們。第三季度，我們持續執行高品質成長策略，營收創歷史新高。我們也持續提高效率和營運槓桿。

As a result, we enhanced our profitability with expanded net margin of 44.1% and excluding share-based compensation, non-GAAP net margin of 47.9%. Our fundamentals remain solid, strongly supporting our current business operations as well as our investments in further development. We will continue to pursue high-quality, sustainable development, creating long-term value for all our stakeholders. Let's move on to our detailed financials for third quarter of 2024. Our revenues were USD88.9 million in the third quarter of 2024, a 4.4% increase from USD85.2 million in the third quarter of last year.

結果，我們的獲利能力得到了提高，淨利潤率擴大到了 44.1%（不包括股權激勵），非 GAAP 淨利潤率為 47.9%。我們的基本面仍然穩固，有力地支持了我們目前的業務運營以及我們對進一步發展的投資。我們將繼續追求高品質、永續發展，為所有利害關係人創造長期價值。讓我們繼續了解 2024 年第三季的詳細財務數據。2024 年第三季我們的營收為 8,890 萬美元，比去年第三季的 8,520 萬美元成長 4.4%。

The increase was primarily driven by our growing user base and enhanced monetization capability. This growth was also partially attributable to the significant increase in the number of paying users, which grew to 12.6 million in the third quarter of 2024 from 11.2 million in the third quarter of 2023.

這一成長主要是由於我們不斷成長的用戶群和增強的變現能力。這一增長也部分歸因於付費用戶數量的大幅增加，付費用戶數量從 2023 年第三季的 1,120 萬增至 2024 年第三季的 1,260 萬。

Now let's take a look at our costs and expenses. Our total costs and expenses were USD56.4 million in the third quarter of 2024, a 6.9% increase from USD52.8 million in third quarter of last year. Our cost of revenues was USD31.8 million in the third quarter of 2024, a 14.6% increase from USD27.8 million in the same period last year, primarily due to higher commission fees paid to third-party payment platforms as a result of increasing revenues generated.

現在讓我們來看看我們的成本和費用。2024 年第三季度，我們的總成本和費用為 5,640 萬美元，比去年第三季的 5,280 萬美元成長 6.9%。2024 年第三季度，我們的收入成本為 3,180 萬美元，比去年同期的 2,780 萬美元增長 14.6%，主要是由於支付給第三方支付平台的佣金增加，導致支付給第三方支付平台的佣金增加。產生的收入。

Cost of revenues as a percentage of total revenues increased to 35.8% in the third quarter of 2024 from 32.6% in the third quarter of last year. Our selling and marketing expenses were USD7.4 million in the third quarter of 2024, a 34.9% decrease from USD11.3 million in the same period last year, primarily driven by our more disciplined advertising and promotion approach.

收入成本佔總收入的百分比從去年第三季的 32.6% 上升至 2024 年第三季的 35.8%。2024 年第三季度，我們的銷售和行銷費用為 740 萬美元，比去年同期的 1,130 萬美元下降 34.9%，這主要是由於我們更加嚴格的廣告和促銷方法所致。

Selling and marketing expenses as a percentage of total revenues decreased to 8.3% in the third quarter of 2024 from 13.3% in the third quarter of last year. Our general and administrative expenses were USD10.1 million in the third quarter of 2024, a 38.3% increase from USD7.3 million in the same period last year, primarily due to an increase in the incentive compensation. G&A expenses as a percentage of our total revenues increased to 11.4% in the third quarter of 2024 from 8.6% in the third quarter of last year.

銷售和行銷費用佔總收入的百分比從去年第三季的 13.3% 降至 2024 年第三季的 8.3%。2024年第三季度，我們的一般及管理費用為1010萬美元，比去年同期的730萬美元增長38.3%，主要是由於激勵薪酬的增加。G&A 費用佔總收入的百分比從去年第三季的 8.6% 增至 2024 年第三季的 11.4%。

Our technology and product development expenses were USD7.1 million in the third quarter of 2024, an 11.1% increase from USD6.4 million in the same period of last year, primarily due to an increase in salaries and benefits for our technology and product development staff. Technology and product development expenses as a percentage of total revenues increased to 8% in the third quarter of 2024 from 7.5% in the third quarter of last year.

2024年第三季我們的技術和產品開發費用為710萬美元，比去年同期的640萬美元增長11.1%，主要是由於我們的技術和產品開發的工資和福利增加職員。技術和產品開發費用佔總收入的比例從去年第三季的 7.5% 增加到 2024 年第三季的 8%。

As such, our operating income remained relatively stable at USD32.5 million in the third quarter of 2024. Our interest income was USD7.8 million in the third quarter of 2024 compared with USD5.6 million in third quarter of last year, primarily due to an increase in interest rates applicable to the company's bank deposits. Our income tax expenses was USD1.29 million in the third quarter of 2024 compared with USD0.71 million in the third quarter of last year.

因此，2024 年第三季我們的營業收入保持相對穩定，為 3,250 萬美元。2024 年第三季我們的利息收入為 780 萬美元，而去年第三季為 560 萬美元，主要是由於公司銀行存款利率上調。2024 年第三季我們的所得稅費用為 129 萬美元，而去年第三季為 71 萬美元。

The increase was primarily due to the introduction and the implementation of UAE Corporate Tax Law, which is effective for the financial year starting on or after June 1, 2023. As a result of foregoing, our net income was USD39.2 million in the third quarter of 2024, an 11.2% increase from USD35.2 million in third quarter of last year. Turning to our liquidity and capital resources. Our cash position remains solid. As of September 30, 2024, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of USD570.1 million compared with USD535.7 million as of December 31, 2023.

這一增長主要是由於阿聯酋企業稅法的引入和實施，該法在 2023 年 6 月 1 日或之後開始的財政年度生效。綜上所述，2024 年第三季我們的淨利為 3,920 萬美元，比去年第三季的 3,520 萬美元成長 11.2%。轉向我們的流動性和資本資源。我們的現金狀況依然穩定。截至2024年9月30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5.701億美元，截至2023年12月31日為5.357億美元。

Under our USD150 million share repurchase program that began May 21, 2021, and has since been extended by our Board through May 21, 2025, we had repurchases 1,736,383 ADS or Class A ordinary shares in open market cash repurchases, totaling approximately USD7 million in the third quarter of 2024. Cumulatively, we have repurchased 5,709,259 ADS or Class A ordinary shares in open market cash repurchases, totaling approximately USD42.5 million as of September 30, 2024.

根據我們於2021 年5 月21 日開始並由董事會延長至2025 年5 月21 日的1.5 億美元股票回購計劃，我們在公開市場現金回購中回購了1,736,383 股美國存託股或A 類普通股，總計約700 萬美元。截至2024年9月30日，我們已透過公開市場現金回購累計回購了5,709,259股ADS或A類普通股，總額約4,250萬美元。

Moving to our outlook. For the fourth quarter of 2024, we expect our revenues to be between USD77 million and USD84 million. The above outlook is based on the current market conditions and reflects the company's management's current and preliminary estimates of the market and operating conditions and customer demands, which are all subject to change.

轉向我們的展望。2024 年第四季度，我們預計營收將在 7,700 萬美元至 8,400 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，這些估計可能會發生變化。

This concludes our prepared remarks for today. Operator, we are now ready to take questions.

我們今天準備好的演講到此結束。接線員，我們現在準備好回答問題。

(Operator Instructions) Xueqing Zhang, CICC.

（操作員指示）張學清，CICC。

Congratulations on another solid quarter. I have two questions. The first one is about game business. Could management share more information about your new game products such as testing and launching schedules? And how does management view of the performance of game business in 2025?

恭喜又一個穩定的季度。我有兩個問題。第一個是關於遊戲業務。管理層能否分享有關您的新遊戲產品的更多信息，例如測試和發佈時間表？管理階層如何看待2025年遊戲業務的表現？

And my second question is about flagship products. Regarding flagship products, how we have seen some new gameplay attempts on Yalla this year? Could management share your strategies for flagship products moving forward? And what's the trend for flagship products in Q4 and next year?

我的第二個問題是關於旗艦產品的。關於旗艦產品，今年我們在Yalla上看到了一些新的玩法嘗試？管理階層能否分享一下你們旗艦產品的未來策略？Q4及明年旗艦產品的趨勢如何？

Thank you, Xueqing, for your question. I'll be taking the first one and leave the second one to our CEO, Mr. Tao Yang. Currently, we have three new self-developed mid-core games in our pipeline. Some of these will enter testing in Q4, 2024.

謝謝雪晴的提問。我將處理第一個問題，並將第二個問題留給我們的執行長陶陽先生。目前，我們有三款新的自主開發的中核遊戲正在開發中。其中一些將在 2024 年第四季進入測試。

After connecting user feedback and then refining the products, we will start promoting them at scale. Looking ahead at the game business in 2025, first of all, we expect Yalla Ludo's performance to remain strong and stable with single-digit percentage growth next year.

在結合用戶回饋並完善產品後，我們將開始大規模推廣。展望2025年的遊戲業務，首先，我們預計明年Yalla Ludo的業績將保持強勁和穩定，實現個位數百分比成長。

Besides that, more upside or additional growth will come from our new products, as mentioned, as well as potential external collaborations. We will provide more accurate guidance on that after we get a better sense of their product potential from the testing. Thank you.

除此之外，如上所述，更多的上行空間或額外的成長將來自我們的新產品以及潛在的外部合作。在我們透過測試來更好地了解他們的產品潛力後，我們將提供更準確的指導。謝謝。

Xueqing, this is Tao. Regarding our flagship product, as you mentioned, we upgraded Yalla with a diverse array of fresh features this quarter. We will continue to roll out new features for Yalla during the rest of 2024 and into 2025. For Yalla Ludo, we will also keep launching interactive operational events and maybe even new gameplay to boost user engagement. In terms of revenue growth, we are confident that in 2025, both flagship products will maintain their current scale and have the potential to achieve single-digit growth.

雪清，這是道。關於我們的旗艦產品，正如您所提到的，我們本季對 Yalla 進行了升級，提供了多種新功能。我們將在 2024 年剩餘時間和 2025 年繼續為 Yalla 推出新功能。對於 Yalla Ludo，我們也將持續推出互動操作活動，甚至可能推出新的遊戲玩法來提高用戶參與度。在營收成長方面，我們有信心在2025年，兩款旗艦產品將維持目前的規模，並有潛力實現個位數成長。

I hope this answers your question. Thank you, Xueqing.

我希望這能回答你的問題。謝謝你，雪晴。

Chenghao Li, CICC.

李成浩，中金公司。

Congratulations on another robust quarter. My question is about our game business. Regarding casual game products, we mentioned that Yalla Ludo and 101 Okey Yalla both achieving new quarterly revenue records. Could management elaborate more on drivers of growth on these two products?

祝賀又一個強勁的季度。我的問題是關於我們的遊戲業務。在休閒遊戲產品方面，我們提到《Yalla Ludo》和《101 Okey Yalla》都創下了季度營收新紀錄。管理階層能否詳細說明這兩種產品的成長驅動因素？

Thank you, Chenghao. This is Saifi. I will answer your question. So overall, our consistent efforts to optimize user experience and refine operational procedures have paid off. In the second half of the quarter, users enthusiastically appreciated Yalla Ludo diverse operational events.

謝謝你，成浩。這是賽菲。我會回答你的問題。總體而言，我們在優化使用者體驗和完善操作流程方面的持續努力得到了回報。下半季度，用戶對Yalla Ludo豐富多彩的營運活動表現熱烈。

Meanwhile, Yalla Ludo once again successfully held two offline tournaments, further strengthening our brand's local impact. Regarding 101 Okey Yalla, it has been deeply involved in the Turkish market for a few years now, and our team has been constantly enhancing the user experience. One of the new features we launched this quarter has gained excellent feedback, which I believe underscores our long-term localization capabilities and deep understanding of our user needs. Thank you.

同時，Yalla Ludo再次成功舉辦了兩場線下賽事，進一步增強了品牌在當地的影響力。101 Okey Yalla 已經深耕土耳其市場好幾年了，我們的團隊也一直在提升使用者體驗。我們本季推出的一項新功能獲得了良好的回饋，我相信這突顯了我們長期的在地化能力和對用戶需求的深刻理解。謝謝。

Sarah Hu, Haitong International.

Sarah Hu，海通國際。

Congratulations on a solid quarter. So can management give us an update on the shareholder returns?

恭喜本季業績穩定。那麼管理層能否向我們提供有關股東回報的最新資訊？

This is Karen. I will answer your question. Yalla is committed to return value to shareholders through our share repurchase program. This quarter, we repurchased more than 1.7 million ADS in the open market for an aggregate amount of approximately USD7 million. As of September 30, 2024, we had deployed a total of 45 -- USD42.5 million for share repurchases. Given our solid fundamentals, we will continue to conduct our share repurchase program while considering cash dividend payments in due course. We will keep you posted if we have more updates. In short, we believe strongly in Yalla's long-term potential and dedicated to generating value for all parties involved. I hope this answers your question. Thank you.

這是凱倫。我會回答你的問題。 Yalla 致力於透過我們的股票回購計畫為股東回報價值。本季度，我們在公開市場回購了超過170萬股ADS，總金額約700萬美元。截至 2024 年 9 月 30 日，我們總共部署了 45 美元（4,250 萬美元）用於股票回購。鑑於我們堅實的基本面，我們將繼續進行股票回購計劃，同時考慮適時支付現金股利。如果有更多更新，我們會及時通知您。簡而言之，我們堅信 Yalla 的長期潛力，並致力於為所有相關方創造價值。我希望這能回答你的問題。謝謝。

Kaifang Jia, CITIC.

賈開芳，中信銀行。

Congratulations for [a strong] quarter. So could management share about any updates about the external cooperation and the expansion into new areas?

恭喜本季表現強勁。那麼管理階層能否分享一下有關外部合作和新領域拓展的最新情況？

Kaifang, thank you for your question. With MENA's ongoing digital transformation and our company's deep local roots and business development experience in the region, Yalla has begun engaging in more discussions with top-tier overseas Internet companies interested in exploring this market. We will take in -- we will take pride in our localization capabilities and potential perspective, which position us well to assist in the development of localized content as well as game distribution in the MENA region. In terms of verticals, social networking and gaming remain our core focus areas. To address your second question, while the Middle East market remains our primary focus, as we've consistently emphasized, we have already gained a certain level of users in Europe, South America and Southeast Asia.

凱芳，謝謝你的提問。隨著中東和北非地區持續的數位轉型，以及我公司在該地區深厚的本土根基和業務發展經驗，Yalla開始與有意開拓該市場的海外頂級互聯網公司進行更多的探討。我們將為我們的在地化能力和潛在前景感到自豪，這使我們能夠很好地協助中東和北非地區的在地化內容開發以及遊戲發行。在垂直領域，社交網路和遊戲仍然是我們的核心關注領域。關於你的第二個問題，雖然我們一直強調中東市場仍然是我們的重點，但我們在歐洲、南美和東南亞已經獲得了一定規模的用戶。

If in the future, we see new products with suitable content, we may consider conducting global promotions. Thank you, Kaifang.

如果未來我們看到有合適內容的新產品，我們可能會考慮進行全球推廣。謝謝你，凱芳。

Rachel Guo, Nomura.

雷切爾·郭，野村證券。

My question is about your margin. How do we think about the margin trend in the fourth quarter of '24?

我的問題是關於你們的保證金。我們如何看待24年第四季的利潤率趨勢？

Rachel, thanks for your question. Regarding our profitability for Q4 as we continue to improve our operating efficiency, we are confident that we can maintain our net margin of the 40% level and potentially reach around 45%. I hope this answers your question. Thanks.

雷切爾，謝謝你的問題。對於第四季的獲利能力，隨著我們不斷提高營運效率，我們有信心維持40%的淨利潤水平，並有可能達到45%左右。我希望這能回答你的問題。謝謝。

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

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 the 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。

This concludes today's conference call. You may now disconnect your line. Thank you.

今天的電話會議到此結束。現在您可以斷開線路。謝謝。