Yalla Group Ltd (YALA) 2025 Q1 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for standing by for Yalla Group Limited first-quarter 2025 earnings conference call. (Operator Instructions) Today's conference call is being recorded.

女士們、先生們，早安、晚上好。感謝您參加 Yalla Group Limited 2025 年第一季財報電話會議。（操作員指示）今天的電話會議正在錄音。

Now I would like to turn the call over to your speaker host today, Ms. Kerry Gao, Investor Relations Director of the company. Please go ahead, ma'am.

現在，我想將電話轉給今天的演講主持人、公司投資者關係總監 Kerry Gao 女士。請繼續，女士。

Hello, everyone, and welcome to Yalla's first-quarter 2025 earnings conference call. We issued our earnings press release earlier today, and it is now available on our IR website as well as our Newswire outlets.

大家好，歡迎參加 Yalla 2025 年第一季財報電話會議。我們今天早些時候發布了收益新聞稿，現在可以在我們的 IR 網站以及我們的新聞線上查閱。

Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provision of U.S. 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有重大差異。有關這些和其他風險和不確定性的更多資訊包含在我們的收益報告和向美國證券交易委員會提交的年度報告中。Yalla 不承擔更新任何前瞻性聲明的義務，除非法律要求。

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.

另請注意，Yalla 的收益新聞稿和本次電話會議包括未經審計的 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 指標與未經審計的最直接可比較 GAAP 指標的對帳。

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. It 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.

今天，我們將邀請我們的董事長兼執行長陶揚先生為您概述我們的最新成就和成長策略。隨後，公司總裁 Saifi Ismail 先生將簡要回顧我們最近的業務發展。我們的財務長 Karen Hu 女士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 will open the call to questions. Mr. Jianfeng Xu, our Chief Operating Officer, will join the Q&A section.

在管理階層發表完準備好的發言後，我們將開始提問。我們的營運長徐建鋒先生將參加問答環節。

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.

話雖如此，我現在想把電話轉給我們的董事長兼執行長陶揚先生。先生，請繼續。

Thank you, everyone, for joining our first-quarter 2025 earnings conference call. We kicked off 2025 with a strong first quarter, even with the impact of Ramadan, which fell entirely within the first quarter of this year, our Q1 revenue still reached USD84 million, up 6.5% year over year and beating the upper end of our guidance. Our persistent efforts to deliver quality growth and enhance our overall efficiency and also yielding positive results.

感謝大家參加我們的 2025 年第一季財報電話會議。我們以強勁的第一季開啟了 2025 年，即使受到齋月的影響（齋月完全落在今年第一季內），我們的第一季營收仍達到 8,400 萬美元，同比增長 6.5%，並超過了我們預期的上限。我們堅持不懈地努力實現有品質的成長，提高整體效率，並取得了積極的成果。

In Q1, our net margin improved substantially year over year from 39.5% to 43.4%. Our robust quarterly performance benefited from our effective growth strategy and efforts to enhance our flagship application and optimize user acquisition. And these initiatives ultimately delivered a better experience for our users, boosting Yalla's and Yalla users' willingness to pay and stay.

第一季度，我們的淨利潤率較去年同期大幅提高，從39.5%上升至43.4%。我們強勁的季度業績得益於我們有效的成長策略以及增強旗艦應用程式和優化用戶獲取的努力。這些措施最終為我們的用戶帶來了更好的體驗，提高了 Yalla 和 Yalla 用戶的付費和留存意願。

In recent months, shifting international economic policies have sharply impacted the global macro economy. Against this fast-evolving backdrop, the MENA-region, Yalla's core strategic market, has maintained remarkable stability and immense potential upside. Historically, the Middle East served as a retail crossroads for cultural exchange and trade between east and west. Today, it is striving hard for digital services, thanks to its vibrant, young demographics and high internet penetration.

近幾個月來，國際經濟政策變化對全球宏觀經濟產生劇烈衝擊。在這種快速發展的背景下，Yalla 的核心策略市場中東和北非地區仍然保持著顯著的穩定性和巨大的潛在成長空間。從歷史上看，中東是東西方文化交流和貿易的零售十字路口。如今，由於其充滿活力的年輕人口結構和較高的網路普及率，該國正在努力發展數位服務。

Technology is actively embraced across the region, making MENA a prime incubator for advanced-type development and AI innovation. To capitalize on these opportunities, Yalla has MENA's logistic destinations for online social networking and entertainment activities remains deeply committed to R&D and AI deployment.

整個地區都積極擁抱技術，使中東和北非地區成為先進發展和人工智慧創新的主要孵化器。為了利用這些機會，Yalla 擁有中東和北非地區線上社交網路和娛樂活動的物流目的地，並致力於研發和人工智慧部署。

During the first quarter, we leveraged extensive localized materials from our products in the Middle East, to change our self-developed, AI-content moderation model to support recognition of both images and text. In [Nordic] as well as several MENA's regional [tales]. We are especially proud that our progressory platform's recognition speed and accuracy now lead the MENA region. We also integrated our moderation platform into our flagship products during the quarter, a win-win in terms of technology growth advancement and cost efficiency.

在第一季度，我們利用中東地區產品的大量在地化資料，改變了我們自主開發的人工智慧內容審核模型，以支援圖像和文字的識別。在[北歐]以及中東和北非地區的幾個地區[故事]。我們尤其感到自豪的是，我們進步的平台的識別速度和準確性現在領先於中東和北非地區。我們還在本季將我們的審核平台整合到我們的旗艦產品中，在技術成長進步和成本效率方面實現了雙贏。

Beyond moderation, we extended AI applications to user profile management. Our data integration and the systematic management to bring us deeper insights into user activity, spending patents, and other behaviors, whether optimizing our customer acquisition efficiency.

除了審核之外，我們還將 AI 應用擴展到用戶資料管理。我們的資料整合和系統化管理讓我們能夠更深入地了解使用者活動、專利支出等行為，從而優化我們的客戶獲取效率。

Moving to our gaming business, amidst global economic volatility. MENA's young population in-house the digital infrastructure and visionary government support for the culture and entertainment industries are generating unique growth momentum for the gaming sector. With a robust product pipeline spanning casual and medical games, we have matched for official release in Q3.

在全球經濟動盪的情況下，轉向我們的遊戲業務。中東和北非地區的年輕人口、數位基礎設施以及政府對文化娛樂產業的富有遠見的支持正在為遊戲產業創造獨特的成長動力。我們擁有涵蓋休閒遊戲和醫療遊戲的強大產品線，並已準備好在第三季正式發布。

We just completed one round of product testing and the team is working to further improve various details before this tide is launched. We may test the water, seeing a few additional regions. I'll start MENA with this game. Moving forward, we will continue to build our product metrics with a steady displayed approach and collaborate with industry partners to bolster the growth and the prosperity of MENA's gaming ecosystem.

我們剛完成了一輪產品測試，團隊正在努力在推出此產品之前進一步完善各種細節。我們可能會進行測試，請查看其他幾個區域。我將從這個遊戲開始 MENA。展望未來，我們將繼續以穩健的展示方式建立我們的產品指標，並與產業合作夥伴合作，促進中東和北非地區遊戲生態系統的成長和繁榮。

Before I turn the call over to Saifi, an update on our shareholder return program. We mentioned last quarter that we would accelerate our share repurchases this year, targeting at least double the amount of last year's buyback or a minimum of USD28 million. As of May 16, 2025, Yalla had repurchased over 4.2 million ADS or Class A ordinary shares in 2025 totalling USD27.4 million bring us close to fulfilling our commitment made this much.

在我將電話轉給 Saifi 之前，我先介紹一下我們的股東回報計畫。我們在上個季度提到，今年我們將加速股票回購，目標是回購金額至少是去年的兩倍，也就是至少 2,800 萬美元。截至 2025 年 5 月 16 日，Yalla 已於 2025 年回購了超過 420 萬股 A​​DS 或 A 類普通股，總額達 2,740 萬美元，使我們接近履行這項承諾。

In line with our commitment to sustained shareholder returns, we have decided to raise this year's buyback target by an additional USD22 million on top of the previously outlined USD28 million, bringing our total planned share repurchases to USD50 million for 2025. We will provide another progress update next quarter and discuss whether to increase the buyback scale even further. Moreover, the company has decided to cancel all shares repurchased this year. As part of our commitment to generating sustained benefits for our shareholders.

為了履行我們對持續股東回報的承諾，我們決定將今年的回購目標在先前確定的 2,800 萬美元基礎上再提高 2,200 萬美元，使我們 2025 年的計畫股票回購總額達到 5,000 萬美元。我們將在下個季度提供另一份進度更新，並討論是否進一步增加回購規模。此外，公司決定取消今年回購的所有股份。作為我們為股東創造持續利益的承諾的一部分。

In summary, Yalla Group debt capitalized on diverse opportunities during the third quarter amidst a complex global [net], achieving breakthroughs in both R&D and product offerings. Harnessing MENA's vast potential and take forward eases, we continue to deepen our technological capabilities using AI innovation to drive efficiency improvements and optimize user experience while further strengthening our localized advantage. We remain committed to amplifying Yalla Group's role in the Middle East digital transformation, creating value for all of our stakeholders.

綜上所述，雅拉集團在第三季抓住了全球複雜情勢下的多種機遇，在研發和產品供應方面均取得了突破。利用中東和北非地區的巨大潛力和優勢，我們不斷深化技術能力，利用人工智慧創新來推動效率提升、優化用戶體驗，同時進一步加強我們的在地化優勢。我們將繼續致力於擴大 Yalla 集團在中東數位轉型中的作用，為所有利害關係人創造價值。

Now I will turn this call over to our President, Mr. Saifi Ismail, for a closer look at our recent development.

現在，我將把這個電話轉交給我們的總統賽菲·伊斯梅爾先生，以便更仔細地了解我們最近的發展。

Hello, everyone. Thanks for joining us today. Let's take a closer look at our first-quarter operations and our product's performance.

大家好。感謝您今天加入我們。讓我們仔細看看我們第一季的營運狀況和產品表現。

First, let me walk you through our operational and product performance in the first quarter. It is important to note that Ramadan in 2025 started earlier than usual with the entire month falling within the first quarter, even so our products delivered impressive results, notably, while our flagship application near Yalla Ludo's user base continued to grow. Our WeMuslim organically gained broader popularity during Ramadan. Without raising our selling and marketing expenses, we increased our group's average monthly active user by 17.9% year over year to $44.6 million, achieving an accelerating growth rate substantially higher than that of previous quarters.

首先，讓我向您介紹我們第一季的營運和產品表現。值得注意的是，2025 年的齋戒月比往年開始得早，整個月都在第一季度，即便如此，我們的產品仍然取得了令人矚目的成績，尤其是我們的旗艦應用程式 Yalla Ludo 的用戶群持續成長。我們的「WeMuslim」在齋戒月期間自然而然地獲得了更廣泛的知名度。在不增加銷售和行銷費用的情況下，我們集團的平均每月活躍用戶年增17.9%，達到4,460萬美元，實現了遠高於前幾季的加速成長率。

We continued to roll out competing online and offline initiatives drafted to enhance user experience and boost engagement and we are set to see them drive meaningful results within Yalla's vibrant community. Yalla Ludo's Sixth Anniversary Campaign was a resounding success, attracting around three million participants including a remarkable share of devoted users who have been with Ludo since its launch.

我們繼續推出旨在提升用戶體驗和提高參與度的線上和線下競爭計劃，我們期待看到它們在 Yalla 充滿活力的社群中帶來有意義的成果。Yalla Ludo 六週年紀念活動取得了巨大成功，吸引了約三百萬參與者，其中包括自 Ludo 推出以來一直支持的忠實用戶。

For Ramadan, we introduced a spectacular race of one long celebratory events online across our mobile apps, drawing users closer to our products and each other, participating in our activities and exploring Yalla's apps became a new part of our users' daily lives during Ramadan. To celebrate the closure Ramadan, we also hosted a star gathering in Dubai, showcasing the crucial road, our off-line activities play in driving industry progress. These events brought together over 100 government officials, business partners, industry leaders, and regional media executives to engage in thought-provoking discussions on the latest trend and innovation opportunities in technology while sparking insightful exchanges of ideas.

在齋戒月期間，我們在行動應用程式上推出了一場精彩的線上慶祝活動，讓用戶更接近我們的產品和彼此，參與我們的活動和探索 Yalla 的應用程式成為齋月期間用戶日常生活的新組成部分。為了慶祝齋戒月結束，我們還在杜拜舉辦了一場明星聚會，展示了我們的線下活動在推動行業進步的關鍵道路上所發揮的作用。這些活動匯集了 100 多名政府官員、商業夥伴、行業領袖和地區媒體高管，就技術的最新趨勢和創新機會進行了發人深省的討論，同時激發了深刻的思想交流。

This gathering also expanded the region's gross segment partnership networks industry-wide, laying a solid foundation for future synergistic growth. We were honored to host these distinguished guests and to extend our heartfelt gratitude to our partners for their continued trust and support.

此次聚會也擴大了該地區全行業的整體分部合作夥伴網絡，為未來的協同成長奠定了堅實的基礎。我們很榮幸能接待這些貴賓，並向合作夥伴一直以來的信任與支持表示衷心的感謝。

At the end of March, we hosted an additional offline event to amplify our regional presence and strengthening our brand impact, returning to Iraq with the Yalla Ludo Friendship tournament. Tens of thousands of users registered for the online qualifying rounds to compete for a coveted spot in the offline event. These events gave us invaluable insight into the passion of this region's players and their high regard for the Yalla Ludo brand.

3 月底，我們舉辦了一場額外的線下活動，以擴大我們的區域影響力並加強我們的品牌影響力，並帶著 Yalla Ludo 友誼錦標賽重返伊拉克。數以萬計的用戶報名參加線上資格賽，爭取線下賽事的參賽席位。這些活動讓我們深入了解了該地區玩家的熱情以及他們對 Yalla Ludo 品牌的高度重視。

Looking back at the first quarter of 2025, we see our success reflected in gross metrics as well as deepen user trust and market recognition. Looking ahead, we remain committed to harnessing technological innovation as our engine and user needs as our compass driving synergy between our social and gaming businesses, while expanding the boundaries of MENA's digital ecosystem. As always, our vision is to build the largest destination for online social networking and entertainment activities in MENA, and we will never lose sight of that goal.

回顧2025年第一季，我們的成功不僅體現在整體指標上，也加深了用戶信任和市場認可。展望未來，我們將繼續致力於以技術創新為引擎，以用戶需求為指南針，推動社交和遊戲業務之間的協同效應，同時拓展中東和北非地區數位生態系統的邊界。一如既往，我們的願景是打造中東和北非地區最大的線上社交和娛樂活動目的地，我們永遠不會忘記這一目標。

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 (Karen)，她將討論我們的主要財務和營運結果。

Thank you, Saifi, and hello, everyone. Thank you for joining us today. I'm pleased to report that we delivered a robust first quarter as we continue to elective our high-quality growth strategy and enhance overall efficiency.

謝謝你，賽菲，大家好。感謝您今天加入我們。我很高興地報告，由於我們繼續選擇高品質的成長策略並提高整體效率，我們在第一季取得了強勁的業績。

Our revenues increased by 6.5% year over year to USD83.9 million despite the impact of Ramadan. Thanks to our disciplined cost control and stronger operating leverage across the business. We further enhanced our profitability with net income increasing by 17% year over year to USD36.4 million. Our net margin also rose substantially to 43.4% in from 39.5% in the same period last year. And excluding share-based compensation, non-GAAP net margin increased to 46.6%, supported by our solid fundamentals and the clear strategy road map, we remain confident in our ability to seize new opportunities across MENA region and beyond and deliver enduring value to our stakeholders.

儘管受到齋戒月的影響，我們的營收仍年增 6.5%，達到 8,390 萬美元。這要歸功於我們嚴格的成本控制和整個業務更強的營運槓桿。我們的獲利能力進一步增強，淨收入年增 17%，達到 3,640 萬美元。我們的淨利率也從去年同期的39.5%大幅上升至43.4%。除股權激勵外，非公認會計準則淨利潤率增至 46.6%，這得益於我們穩固的基本面和清晰的戰略路線圖，我們仍然有信心抓住中東和北非地區及其他地區的新機遇，為我們的利益相關者創造持久的價值。

Let's move on to our detailed financials for the fourth quarter of 2025. Our revenues were USD83.9 million in the fourth quarter of 2025, a 6.5% increase from USD78.7 million in the same period last year. The increase was primarily driven by our broadening user base and enhanced monetization capability.

讓我們繼續了解 2025 年第四季的詳細財務狀況。2025年第四季，我們的營收為8,390萬美元，較去年同期的7,870萬美元成長6.5%。這一成長主要得益於我們不斷擴大的用戶群和增強的貨幣化能力。

Turning to our costs and the expenses. Our total cost and expenses were USD52.7 million in the fourth quarter of 2025, a 6.2% increase from USD49.6 million in the same period last year. Cost of revenues was USD29.2 million in the fourth quarter of 2025, a 2.2% increase from USD28.6 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. Cost of revenues as a percentage of total revenues decreased to 34.8% in the fourth quarter of 2025 from 36.3% in the same period last year.

談談我們的成本和費用。2025年第四季度，我們的總成本和費用為5,270萬美元，比去年同期的4,960萬美元成長6.2%。2025年第四季的營收成本為2,920萬美元，較去年同期的2,860萬美元成長2.2%，主要原因是營收增加導致向第三方支付平台支付的佣金費用增加。2025 年第四季度，收入成本佔總收入的百分比從去年同期的 36.3% 下降至 34.8%。

Our selling and marketing expenses were USD6.9 million in the fourth quarter of 2025, a 14.3% decrease from USD8.1 million in the same period last year, primarily driven by a decrease in incentive compensation. Selling and marketing expenses as a percentage of total revenues decreased to 8.3% in the fourth quarter of 2025 from 10.3% in the same period last year. Our general and administrative expenses were USD8.7 million in the fourth quarter of 2025, a 30.8% increase from USD6.6 million in the same period last year, primarily due to an increase in incentive compensation and higher professional services fees. General and administrative expenses as a percentage of total revenues increased to 10.4% in the first quarter of 2025 from 8.4% in the same period last year.

2025 年第四季，我們的銷售和行銷費用為 690 萬美元，較去年同期的 810 萬美元下降 14.3%，主要原因是激勵薪資減少。銷售和行銷費用佔總收入的百分比從去年同期的 10.3% 下降到 2025 年第四季的 8.3%。2025年第四季，我們的一般及行政支出為870萬美元，較去年同期的660萬美元成長30.8%，主要原因是激勵薪資增加及專業服務費增加。2025 年第一季，一般及行政支出佔總收入的百分比從去年同期的 8.4% 上升至 10.4%。

Our technology and product development expenses were USD7.8 million in the first quarter of 2025, a 25% increase from USD6.3 million in the same period last year, primarily due to an increase in salaries and benefits for our technology and product development staff driven by an increase in the head count of the staffs to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of total revenues increased to 9.3% in the first quarter of 2025 from 8% in the same period last year. As such, our operating income was USD31.2 million in the first quarter of 2025, a 7.1% increase from USD29.1 million in the same period last year.

2025年第一季度，我們的技術與產品開發費用為780萬美元，較去年同期的630萬美元增長25%，這主要是由於為支持新業務發展和產品組合擴展，公司增加了員工數量，從而導致技術與產品開發人員的薪酬和福利增加。技術和產品開發費用佔總收入的百分比從去年同期的 8% 上升至 2025 年第一季的 9.3%。因此，我們的2025年第一季營業收入為3,120萬美元，較去年同期的2,910萬美元成長7.1%。

Interest income was flat at USD6.6 million in the first quarter of 2025 compared with the same period last year. Income tax expense was USD1.4 million in the first quarter of 2025 compared with USD3.5 million in the fourth quarter of 2024, primarily due to a decrease in UAE corporate tax. As a result of foregoing, our net income was USD36.4 million in the first quarter of 2025, a 17% increase from USD31.1 million in the first quarter of 2024. And our non-GAAP net income in the fourth quarter of 2025 was USD39.1 million, a 10.9% increase from USD35.3 million in the same period last year.

2025年第一季利息收入與去年同期持平，為660萬美元。2025 年第一季所得稅費用為 140 萬美元，而 2024 年第四季為 350 萬美元，主要原因是阿聯酋公司稅減少。綜合上述因素，我們2025年第一季的淨收入為3,640萬美元，較2024年第一季的3,110萬美元成長17%。而我們2025年第四季的非GAAP淨收入為3,910萬美元，較去年同期的3,530萬美元成長10.9%。

Moving on to our liquidity and capital resources. Our cash position remains solid and healthy. As of March 31, 2025, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of USD690.9 million compared with USD656.3 million as of December 31, 2024.

繼續討論我們的流動性和資本資源。我們的現金狀況依然穩固且健康。截至 2025 年 3 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 6.909 億美元，而截至 2024 年 12 月 31 日為 6.563 億美元。

We continue to return value through our share repurchase program, pursuant to the company's current share repurchase program from January 1 through May 16, 2025. The company repurchased 4,275,812 ADS or Class A ordinary shares, totaling approximately USD27.4 million, including USD5.4 million in the first quarter of 2025. As of May 16, 2025, the company has cumulatively completed cash repurchases in the open market of 11,580,950 ADS, all Class A ordinary shares, totaling approximately USD76.9 million, since the inception of current share repurchase program. The aggregate value of ADS or Class A ordinary shares that remain available under the current share repurchase program was USD73.1 million as of May 16, 2025.

根據該公司目前的股票回購計劃，從 2025 年 1 月 1 日至 5 月 16 日，我們將繼續透過股票回購計劃回報價值。公司回購了4,275,812股ADS或A類普通股，總額約2,740萬美元，其中包括2025年第一季的540萬美元。截至2025年5月16日，本公司自本股票回購計畫啟動以來，已累計在公開市場完成11,580,950股ADS現金回購，全部為A類普通股，總額約7,690萬美元。截至 2025 年 5 月 16 日，目前股票回購計畫下剩餘可用的 ADS 或 A 類普通股的總價值為 7,310 萬美元。

Furthermore, as our CEO just mentioned, we had reached our 2025 share buyback target to USD50 million, strengthening our commitment to share our success with shareholders. We believe our solid fundamentals and ample liquidity will support us in returning value to shareholders while maintaining daily operations and investing in future growth.

此外，正如我們的執行長剛才提到的，我們已經實現了 2025 年 5000 萬美元的股票回購目標，這加強了我們與股東分享成功的承諾。我們相信，我們穩固的基本面和充足的流動性將支持我們在維持日常營運和投資未來成長的同時為股東帶來價值回報。

Moving to our outlook. For the second quarter of 2025, we expect our revenues to be between USD76 million and USD83 million. The bulk 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 demand, which are all subject to change. In the interest of time, please refer to our earnings press release for further details on our first-quarter 2025 financial results.

轉向我們的展望。2025 年第二季度，我們預計營收將在 7,600 萬美元至 8,300 萬美元之間。大宗商品展望是基於當前市場狀況，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，這些都可能發生變化。為了節省時間，請參閱我們的收益新聞稿，以了解有關我們 2025 年第一季財務業績的更多詳細資訊。

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

我們今天的準備演講到此結束。接線員，我們現在可以回答問題了。

(Operator Instructions)

（操作員指示）

Xueqing Zhang, CICC.

張學慶，中金公司。

Hi, good morning, management. Thanks for taking my question and congratulations on another solid quarter. My question is about your financials. What's the main driver of the significant year-over-year increase in net margin and guidance for next quarter and this year? Thank you.

嗨，管理層，早安。感謝您回答我的問題，並祝賀您又一個季度取得豐碩成果。我的問題是關於您的財務狀況。淨利潤率和下個季度及今年的業績指引同比大幅增長的主要驅動力是什麼？謝謝。

Thank you, Xueqing. I will take your questions. On the revenue side, revenues from game services are the main growth driver. Our flagship products like Yalla Ludo continues to progress smoothly, and [while] Yalla has achieved record high revenues for three consecutive quarters.

謝謝你，雪晴。我將回答你們的問題。收入方面，遊戲服務收入是主要成長動力。我們的旗艦產品如Yalla Ludo繼續順利發展，同時Yalla已連續三個季度創下營收新高。

On the expense side, we have significantly decreased our selling and marketing expenses, mainly thanks to enhanced user acquisition efficiency driven by our innovative AI-predictive model for analyzing users' lifetime value. Together, these factors support our robust net margin performance.

在費用方面，我們大幅降低了銷售和行銷費用，這主要得益於我們創新的用於分析用戶終身價值的人工智慧預測模型所推動的用戶獲取效率的提高。所有這些因素共同支撐了我們強勁的淨利潤率表現。

Regarding next quarter's guidance, I would say it's fair to expect our net margin to remain at around 40%. It is a relatively sustainable level given our current business. Thank you.

關於下個季度的指導，我認為預計我們的淨利潤率將保持在 40% 左右是合理的。考慮到我們目前的業務，這是一個相對可持續的水平。謝謝。

Xiaoyue Hu, Haitong International.

胡曉月，海通國際。

Hello, management. Thank you for taking my questions and congrats on a strong first quarter. So can management please share the recent developments of our two flagship products, so Yalla and Yalla Ludo. Thank you.

您好，管理層。感謝您回答我的問題，並祝賀您第一季業績強勁。那麼管理階層能否分享我們兩款旗艦產品 Yalla 和 Yalla Ludo 的最新發展。謝謝。

I'll take this question. Thanks. So Yalla is celebrating its ninth anniversary today coincidentally on the same day as our earnings release. So we have kicked off a major in-app celebration to mark this special occasion. We also have some iteration lined up for Yalla's operation and design this year to enrich user chatting experience, making it more fun. The goal is to keep things fresh and engaging of our users and draw in a wider audience.

我來回答這個問題。謝謝。因此，恰好 Yalla 今天是其成立九週年紀念日，與我們發布的收益報告同一天。因此，我們啟動了一場大型應用程式內慶祝活動來紀念這一特殊時刻。今年我們也對Yalla的操作和設計進行了一些迭代，以豐富用戶的聊天體驗，使其更加有趣。我們的目標是讓內容保持新鮮感並吸引用戶的注意，從而吸引更廣泛的受眾。

For Yalla Ludo, we continue to boost user engagements in our online community through high-quality operational activities. We also continue to host highly praised tournaments across MENA countries effectively expanding Yalla Ludo's brand influence from online to offline. So overall, we see both products performing [suedely], generating steady and consistent cash flow for the company. Thank you.

對於 Yalla Ludo，我們繼續透過高品質的營運活動來提高我們線上社群的用戶參與度。我們也繼續在中東和北非國家舉辦備受讚譽的錦標賽，有效地擴大了 Yalla Ludo 的品牌影響力，從線上擴展到線下。因此，總體而言，我們認為這兩款產品的表現都很好，為公司帶來了穩定且持續的現金流。謝謝。

Lincoln Kong, Goldman Sachs.

林肯孔（Lincoln Kong），高盛。

Thank you, management, for taking my question. So my question is about shareholder return. So we have seen actually the share price rally quite nicely in the past two months. So at this moment, could you share the latest (spoken in foreign language) the minds behind the shareholder return plan going forward? How should we think about the consistency of our buyback program. Thank you.

謝謝管理層回答我的問題。我的問題是關於股東回報。因此，我們實際上看到過去兩個月股價上漲相當強勁。那麼現在，您能否用外語分享一下未來股東回報計畫的最新想法？我們應該如何考慮回購計劃的一致性。謝謝。

Lincoln, this is Tao. I will take this question. We are glad to see a market direction in the company's valuation. Our buyback program is definitely picking up speed. Two months ago, we committed to at least doubling last year's buyback amount for 2025, and we are close to achieving this goal.

林肯，這是陶。我將回答這個問題。我們很高興看到公司估值的市場方向。我們的回購計劃確實正在加速推進。兩個月前，我們承諾在2025年回購量至少比去年增加一倍，目前我們已接近實現這一目標。

As we just mentioned, to further strengthen our efforts to return value to shareholders, we have raised this year's buyback target by additional USD22 million, bringing our total planned share repurchase to USD50 million. I also want to highlight that the company has decided to cancel all shares repurchased this year. As part of our commitment to delivering sustained benefits to our shareholders. We will provide another update next quarter and discuss whether to further ramp up the buyback. I hope that helps. Thank you, Lincoln.

正如我們剛才提到的，為了進一步加強對股東的回報，我們將今年的回購目標額外提高了 2,200 萬美元，使我們的計畫回購總額達到 5,000 萬美元。我還想強調的是，公司決定取消今年回購的所有股票。作為我們向股東提供持續利益的承諾的一部分。我們將在下個季度提供另一份更新信息，並討論是否進一步加強回購力度。我希望這能有所幫助。謝謝你，林肯。

Thank you.

謝謝。

Kaifang Jia, CITIC.

賈開芳，中信銀行。

Hi, management. Thanks for taking my questions. Could management break apart -- brief us on the advancements in mid-core and hard-core games? Thank you.

你好，管理層。感謝您回答我的問題。管理階層能否分開一下－向我們介紹一下中核遊戲和硬派遊戲的進展？謝謝。

Hi, Kaifang. Thanks for raising this. Our CEO just mentioned a match-three title set to be released in Q3, and we have several additional mid-core games in the pipeline with potential launches as early as Q3. For these games, we are not only focusing on the Middle East but are also exploring several other overseas markets to expand our user base. We provide more details after the official rollout. Thank you.

嗨，凱芳。感謝您提出這個問題。我們的執行長剛剛提到將在第三季發布一款三消遊戲，此外我們還有幾款中核遊戲正在籌備中，最早可能在第三季推出。對於這些遊戲，我們不僅關注中東，而且還在探索其他幾個海外市場以擴大我們的用戶群。我們將在正式推出後提供更多詳細資訊。謝謝。

Jenny Wang, UBS.

瑞銀的 Jenny Wang。

Hello. Thanks, management for taking my question. So Yalla (MAU) strong growth momentum this year with multicore products. So looking ahead, where we see a more meter acquisition plan in the future? Thank you.

你好。謝謝管理層回答我的問題。因此，Yalla 憑藉多核心產品今年實現了強勁的成長勢頭。那麼展望未來，我們未來會有更多的電錶採購計畫嗎？謝謝。

Thank you, Jenny, for your question. I'll be taking this question. So MAU growth in Q1 indeed came in well above our expectations. Historically, our quarterly MAU growth has ranged from 2% to 3% when Q1 exceeded 7%. This was largely driven by our refined user-acquisition strategy tailored for Ramadan, as well as our UI-driven -- AI-driven traffic acquisition optimizations.

謝謝珍妮的提問。我將回答這個問題。因此，第一季的 MAU 成長確實遠遠超出我們的預期。從歷史上看，當第一季的 MAU 成長率超過 7% 時，我們的季度 MAU 成長率在 2% 到 3% 之間。這很大程度上得益於我們為齋戒月量身定制的完善的用戶獲取策略，以及我們的 UI 驅動和 AI 驅動的流量獲取優化。

Overall, this year's MAU growth may not follow the smooth trajectory we saw in the past two years. We will adjust and plan dynamically based on the needs of products and communities. We are keeping a close eye on the ROI of our marketing initiatives. Currently, we still expect full-year MAU growth to be around 10% year over year. We'll revisit this and keep you posted if anything new comes up. Thank you.

總體而言，今年的 MAU 成長可能不會遵循過去兩年我們看到的平穩軌跡。我們會根據產品和社區的需求，動態調整和規劃。我們密切關注行銷活動的投資報酬率。目前，我們仍預計全年MAU年增率將在10%左右。我們將重新審視這個問題，如果有任何新情況出現，我們會及時通知您。謝謝。

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

由於現在沒有其他問題，我想將電話轉回給管理階層，請他們做最後發言。請繼續。

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 PSN Financial Communications. Both parties contact information is available in today's press release as well as on our company website.

再次感謝您今天加入我們。我們期待下個季度與您交談。如果您還有其他問題，請隨時聯絡 Yalla 的投資者關係部或 PSN 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。

This concludes this conference call. You may now disconnect your lines and thank you.

本次電話會議到此結束。現在您可以斷開線路了，謝謝。