Yalla Group Ltd (YALA) 2025 Q2 法說會逐字稿

Good morning, and good evening, ladies and gentlemen. Thank you for standing by for Yalla Group Limited's second-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 年第二季財報電話會議。（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, ma'am.

現在，我將把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 second-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 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 2025 年第二季財報電話會議。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 網站和新聞專線上查閱。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 this 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.

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。有關此風險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. 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.

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，公司總裁賽菲·伊斯梅爾 (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. Jeff Xu, our Chief Operating Officer, will join the Q&A session.

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 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 second-quarter 2025 earnings conference call. We delivered another strong set of results in the second quarter of this year. Our total revenues close to USD84.6 million, once again, beating the high end of our guidance. We also made significant strides in improving our operational efficiency by optimizing user acquisition strategies and refining our internal processes which contributed to a year-over-year expansion in our net margin to 43.2%. This impressive performance demonstrates our ability to increase user engagement across our ecosystem and achieve high-quality efficient growth by anticipating and meeting [minutes] evolving social networking and entertainment needs.

感謝大家參加我們的 2025 年第二季財報電話會議。我們在今年第二季再次取得了強勁的業績。我們的總收入接近 8,460 萬美元，再次超過了我們預期的上限。我們還透過優化用戶獲取策略和改進內部流程，在提高營運效率方面取得了重大進展，這使我們的淨利潤率同比增長至 43.2%。這一令人印象深刻的表現證明了我們有能力透過預測和滿足不斷發展的社交網路和娛樂需求來提高整個生態系統的用戶參與度並實現高品質高效的成長。

Throughout Yalla's history, the company has been committed to the long-term development of MENA's local Internet industry. We were one of the first to explore online entertainment in the region. And over the past 10 years, our team has grown from 6 people to over 800 employees serving over 40 million MAUs across MENA region.

縱觀Yalla的發展歷程，該公司一直致力於中東和北非地區本地網路產業的長期發展。我們是該地區最早探索線上娛樂的公司之一。在過去的 10 年裡，我們的團隊從 6 人發展到 800 多名員工，為中東和北非地區的 4,000 多萬 MAU 提供服務。

On the product strategy [priority prices] creating products with the potential to reach a massive user base while also demonstrating a long last cycle. We strive to develop sustainable business models for long-term growth, and we remain confident that our commitment and patience will [tail] as it has over the last decade.

在產品策略上[優先價格]創造出有潛力覆蓋大量用戶群的產品，同時也展現出較長的周期。我們努力發展可持續的商業模式以實現長期成長，我們堅信我們的承諾和耐心將像過去十年一樣持續下去。

This Q2 marks the ninth anniversary of Yalla's launch for Yalla Ludo, one of our flagship products and MENA's leading casual game platform. We expect this life cycle to reach 10 to 15 years or even beyond. We continue to operate our products with great dedication, fostering a friendly, positive, and vibrant online community.

今年第二季是 Yalla 推出 Yalla Ludo 的九週年，Yalla Ludo 是我們旗艦產品之一，也是中東和北非地區領先的休閒遊戲平台。我們預計這個生命週期可以達到10到15年甚至更長。我們將繼續全心全意地經營我們的產品，培養一個友好、積極、充滿活力的線上社群。

Building on our core business strong fundamentals, we are also strategically expanding into new verticals to capitalize on MENA's digital transformation, leveraging our substantial user base, localized exercise, and strong user acquisition capabilities. We have broadened our business footprint with game distribution services.

在我們核心業務強勁基礎的基礎上，我們也策略性地擴展到新的垂直領域，以利用中東和北非地區的數位轉型，利用我們龐大的用戶群、在地化的鍛鍊和強大的用戶獲取能力。我們透過遊戲發行服務拓寬了業務範圍。

We hope to become indispensable resource for leading global game content providers who are as excited as we are about the MENA market. We are proud to have good games of all kinds launching MENA efficiently and effectively. Furthermore, that our user scale growth, we are also exploring opportunities to expand into additional online local services to reach even more users across the MENA.

我們希望成為那些和我們一樣對中東和北非市場充滿熱情的全球領先遊戲內容提供者不可或缺的資源。我們很自豪能夠有效率地在中東和北非地區推出各種優秀的遊戲。此外，隨著用戶規模的成長，我們也在探索擴展到更多線上本地服務的機會，以覆蓋中東和北非地區的更多用戶。

Moving on to our new gaming pipeline for this year. We have continued to strategically invest in mid-core and hard-core games with a robust product backlog, featuring multiple new titles scheduled for release in the coming two quarters. In the third quarter, we expect to release two Match-3 titles targeting distinct user segments. In the fourth quarter, we aim to release another self-developed [road-like] game, while also preparing for hard-core games distribution in collaboration with a leading game developer. We will continue to refine our gaming business strategy intent to ramp up external partnerships and our games distribution capabilities going forward to more effectively diversify our product portfolios.

接下來我們將介紹今年的新遊戲產品線。我們持續對中核和硬核遊戲進行策略性投資，擁有大量產品積壓，並計劃在未來兩季發布多款新遊戲。在第三季度，我們預計將發布兩款針對不同用戶群的 Match-3 遊戲。第四季度，我們計劃推出另一款自主研發的公路遊戲，同時也準備與領先的遊戲開發商合作發行硬派遊戲。我們將繼續完善我們的遊戲業務策略，旨在加強外部合作夥伴關係和我們的遊戲發行能力，以更有效地實現產品組合多樣化。

This allows us to explore a broader range of game [genes] and offer users small diverse options while gaining deeper insight into market dynamics and a more precise understanding of user advertised in the MENA region.

這使我們能夠探索更廣泛的遊戲[基因]並為用戶提供細微的多樣化選擇，同時更深入地了解市場動態並更精確地了解中東和北非地區的用戶廣告。

Technology is another key factor driving our growth. As part of our efforts to propel technology innovation and talent development, we initiated a new round of internship collaborations with Mohamed bin Zayed University of Artificial Intelligence, with a focus on AI application projects by integrating cutting-edge academic research insights with real-world industry practices. This partnership [for man] industry, academia and research institutions injected fresh ideas and intellectual resources into our ongoing technology innovation. We are also deepening Yalla's long-term commitment to advancing the development of MENA's AI ecosystem.

科技是推動我們成長的另一個關鍵因素。為推動科技創新和人才培養，我們與穆罕默德·本·扎耶德人工智慧大學啟動新一輪實習合作，重點介紹人工智慧應用項目，將前沿學術研究見解與實際行業實踐相結合。這種產學研合作為我們正在進行的技術創新註入了新的思路和智力資源。我們也正在深化 Yalla 對推動中東和北非地區人工智慧生態系統發展的長期承諾。

Before I turn the call over to Saifi, an update on our shareholder repurchase plan. In the first quarter, we allocated additional USD22 million, bringing our total minimum commitment to USD50 million for the full year. We continue to execute our share repurchase program consistently enhancing shareholder returns.

在我將電話轉給 Saifi 之前，我先來介紹一下我們的股東回購計畫。第一季度，我們額外撥款 2,200 萬美元，使我們全年的最低承諾總額達到 5,000 萬美元。我們繼續執行股票回購計劃，並不斷提高股東回報。

In the first half of this year, we made encouraging progress. As of June 30, 2025, the company had repurchased a total of more than 6.2 million ADS as to totaling USD41 million in this year, completing 82% of our 2025 minimum goal. We will continue with displaying the execution of the share repurchase program through the end of the year and expect to reach or potentially exceed our full-year goal. We remain open to further scaling up our execution under the current share repurchase program.

今年上半年，我們取得了令人鼓舞的進展。截至2025年6月30日，本公司本年度已回購超過620萬股ADS，總額達4,100萬美元，完成2025年最低目標的82%。我們將繼續展示股票回購計畫在年底前的執行情況，並期望達到或可能超過我們的全年目標。我們仍願意進一步擴大目前股票回購計畫的執行範圍。

Furthermore, as we mentioned on our last call, the company has decided to cancel all shares repurchased this year. As of August 11, 2025, the company has canceled more than 6.2 million ADS. We will consistently place shareholders' interest at the core of our capital allocation decisions and continuously refine our shareholder return strategy to generate long-term value for our shareholders.

此外，正如我們在上次電話會議上提到的，公司已決定取消今年回購的所有股票。截至2025年8月11日，該公司已註銷超過620萬股ADS。我們將始終把股東利益置於資本配置決策的核心，並不斷改善股東回報策略，為股東創造長期價值。

Overall, our second-quarter performance once again affirmed Yalla's strategic effectiveness and the MENA markets [was] potential. We are steadily compounding our advantages in this compelling market where we've cultivated deep roots over many years going forward.

總體而言，我們第二季的業績再次證明了 Yalla 的策略有效性以及中東和北非市場的潛力。我們正在穩步鞏固我們在這個引人注目的市場中的優勢，多年來我們已經在這個市場上紮下了深厚的根基。

Yalla Group will continue to unlock monetization opportunities through a diversified gaming lineup, while working alongside partners to foster a sustainable digital ecosystem. We are excited to have your support as we have propelled MENA's transformation from a digital hotspot into our two global innovation at the center.

Yalla Group 將繼續透過多樣化的遊戲陣容釋放獲利機會，同時與合作夥伴共同培養可持續的數位生態系統。我們很高興得到您的支持，因為我們推動了中東和北非地區從數位熱點轉變為我們的兩個全球創新中心。

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，以便更深入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 second-quarter operations and our product performance.

大家好。感謝您今天加入我們。讓我們仔細看看我們第二季的營運情況和產品表現。

First, I would like to share our operational and product performance highlights in the second quarter. We increased our group's average monthly active users by 8.8% year over year to 42.4 million. In light of the sharp MAU increase during Ramadan in the first quarter, we adjusted our user acquisition strategy in quarter two, allocating more resources to acquiring and returning high engagement, high-quality users, and reducing spending on channels, demonstrating less efficient conversion metrics. This approach will allow us to scale our community while ensuring a vibrant and engaged user base.

首先，我想分享我們第二季的營運和產品業績亮點。我們集團的平均每月活躍用戶數較去年同期成長8.8%，達到4,240萬人。鑑於第一季齋戒月期間月活躍用戶數大幅成長，我們在第二季調整了用戶獲取策略，將更多資源用於獲取和恢復高參與度、高品質的用戶，並減少通路支出，導致轉換率指標效率降低。這種方法將使我們能夠擴大社群規模，同時確保用戶群的活躍度和參與度。

As a result, the group delivered year over year and sequential revenue growth this quarter despite a short-term sequential dip in MAU. Starting next quarter, we expect MAU growth to normalize at 2% to 3% quarter over quarter with full-year MAU growth projected at around 10% year over year as we remain focused on consistent user base expansion.

因此，儘管每月活躍用戶數短期內出現環比下降，但該集團本季的收入仍實現了同比和環比增長。從下個季度開始，我們預計 MAU 成長率將恢復到 2% 至 3% 的正常水平，而全年 MAU 成長率預計在 10% 左右，因為我們仍然專注於持續擴大用戶群。

Next, I would like to delve into the meaningful strides we made in the second quarter across product operations and brand building. During the quarter, we conducted several strategically designed campaigns and fostered in depths brand partnership further solidifying our market position and driving stronger user retention.

接下來，我想深入探討我們在第二季在產品營運和品牌建立方面取得的重大進展。在本季度，我們開展了多項策略性設計的活動，並深入建立了品牌合作夥伴關係，進一步鞏固了我們的市場地位並提高了用戶保留率。

One highlight was this quarter's co-branded campaign between Yalla Ludo and the Dubai Department of economy and tourism. We embedded Dubai's culture icons and signature landmarks into gameplay and mission design, delighting users with a regionally immersive experience. Its dynamic plant of Yalla Ludo's entertaining gameplay and Dubai's tourism appeal garnered highly positive user feedback and started substantial organic social media [above], significantly boosting in-game activity.

本季的一大亮點是 Yalla Ludo 與杜拜經濟與旅遊部共同舉辦的品牌活動。我們將杜拜的文化標誌和標誌性地標融入遊戲玩法和任務設計中，為用戶帶來身臨其境的區域體驗。Yalla Ludo 的娛樂性玩法和杜拜的旅遊吸引力的動態結合獲得了用戶的高度好評，並開啟了大規模有機社交媒體（上圖），顯著提升了遊戲內活動。

This quarter also marks the successful conclusion of Yalla's 9th anniversary celebration. We launched a platform-wide event series featuring exclusive missions and generous rewards. Mechanisms, user intelligence reached an all-time high with gold coin consumption reaching a new record for this event series. This event performance demonstrated the strongly affinity users have for our platform while also affirming our event design capabilities and the vibrancy of our online community.

本季也標誌著Yalla九週年慶典圓滿結束。我們推出了一系列全平台活動，其中包括獨家任務和豐厚獎勵。機轉、用戶智商均創歷史新高，金幣消耗量創下本系列活動新高。這次活動表現展現了用戶對我們平台的強烈喜愛，同時也肯定了我們的活動設計能力和線上社群的活力。

We also leveraged our strength in event design and user engagement to deepen our core responsibility efforts. During Eid al-Adha 2025, we designed a public welfare initiatives with far-reaching impact inviting users to contribute by participating in online events to accumulate goodwill credits. As the guest are reflecting the events shared goodwill, Yalla Group donated to the UNICEF MENA regional office on behalf of all users. We were delighted to see this campaign enrich users' digital experience while encouraging participation in meaningful social good.

我們也利用我們在活動設計和用戶參與方面的優勢來深化我們的核心責任工作。2025年宰牲節期間，我們設計了一項影響深遠的公益舉措，邀請用戶透過參與線上活動貢獻力量，累積善意積分。鑑於來賓們為體現活動的共同善意，Yalla Group 代表所有用戶向聯合國兒童基金會中東和北非地區辦事處進行了捐款。我們很高興看到這項活動豐富了用戶的數位體驗，同時鼓勵他們參與有意義的社會公益。

On a related note, we released our 2024 ESG report this quarter, marking another key milestone in our journey toward greater transparency and standardization and sustainable development. The report systematically outlined Yalla Group's vision, practices, and commitments in driving sustainable growth, fulfilling social responsibilities and strengthening corporate governance, highlighting our concrete actions and positive outcomes in area, including promoting digital inclusion, safeguarding user wellbeing, supporting community development and advancing responsible governance. In short, we drove notable gains in user engagement and commercial value across our core businesses during the second quarter of 2025.

另外，我們本季發布了2024年ESG報告，這是我們在實現更高透明度、標準化和永續發展的道路上又一個重要里程碑。報告系統闡述了雅拉集團在推動永續成長、履行社會責任、加強公司治理方面的願景、實踐和承諾，重點介紹了雅拉集團在促進數位包容、保障用戶福祉、支持社區發展、推進負責任治理等方面的具體行動和積極成果。簡而言之，2025 年第二季度，我們的核心業務的用戶參與度和商業價值都取得了顯著成長。

Looking ahead, we remain committed to driving product innovation, deepening strategic partnerships and actively fulfilling our corporate social responsibilities as we advance with fair convictions toward our vision of becoming the most popular platform for online social networking and entertainment activities in MENA.

展望未來，我們將繼續致力於推動產品創新、深化策略合作夥伴關係、積極履行企業社會責任，堅定信念，朝著成為中東和北非地區最受歡迎的線上社交和娛樂活動平台的願景邁進。

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. Excellent execution across our operations drove this quarter's strong results underscored by better-than-expected revenues and enhanced profitability.

謝謝你，賽菲，大家好。感謝您今天加入我們。我們整個營運部門的出色執行推動了本季的強勁業績，其中突出的是好於預期的收入和增強的獲利能力。

Our revenue system, the healthy growth trajectory up 4.1% year over year. We also continue to execute disciplined cost management and improve our overall efficiency, boosting our net income by 16.4% year over year to USD36.5 million with net margin expanding by 4.6 percentage points year over year to 43.2%.

我們的營收體系呈現健康成長軌跡，較去年同期成長4.1%。我們也持續執行嚴格的成本管理並提高整體效率，淨收入年增16.4％至3,650萬美元，淨利潤率年增4.6個百分點至43.2％。

[Hoisted] by this success, we continue to accelerate our expanded share buyback program. We remain committed to driving product innovation, optimizing operations, and elevating shareholder value as we advance towards our vision of becoming the most popular platform for online social networking and entertainment activities in MENA.

受到這項成功的鼓舞，我們將繼續加快擴大股票回購計畫。我們將繼續致力於推動產品創新、優化營運和提升股東價值，朝著成為中東和北非地區最受歡迎的線上社交網路和娛樂活動平台的願景邁進。

Let's move on to our detailed financials for the second quarter of 2025. Our revenues were USD84.6 million in the second quarter of 2025, a 4.1% increase from USD81.2 million in the same period last year. The increase was primarily driven by our [growing] user base and enhanced monetization capability.

讓我們繼續了解 2025 年第二季的詳細財務狀況。2025年第二季我們的營收為8,460萬美元，比去年同期的8,120萬美元成長4.1%。這一成長主要得益於我們不斷成長的用戶群和增強的貨幣化能力。

Turning to our costs and expenses. Our total costs and expenses were USD53.9 million in the second quarter of 2025, a 4.6% increase from USD51.6 million in the same period last year.

談談我們的成本和費用。2025年第二季度，我們的總成本和費用為5,390萬美元，比去年同期的5,160萬美元成長4.6%。

Our cost of revenues was USD27.9 million in the second quarter of 2025, a 3.7% decrease from USD29 million in the same period last year, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels and lower share-based compensation expenses recognized in the second quarter of 2025. Cost of revenues as a percentage of total revenues decreased from 33% in the second quarter of 2025 from 35.7% in the same period last year.

2025年第二季度，我們的營業成本為2790萬美元，較去年同期的2900萬美元下降3.7%，主要由於支付管道多元化導致支付給第三方支付平台的佣金費用降低，以及2025年第二季度確認的股權激勵費用降低。收入成本佔總收入的百分比從 2025 年第二季的 33% 下降到去年同期的 35.7%。

Our selling and marketing expenses were USD8.7 million in the second quarter of 2025, a 2% increase from USD8.5 million in the same period last year, primarily due to higher advertising and market promotion expenses attributable to our continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenue decreased to 10.2% in the second quarter of 2025 from 10.5% in the same period last year.

2025 年第二季度，我們的銷售和行銷費用為 870 萬美元，較去年同期的 850 萬美元增長 2%，這主要是由於我們持續的用戶獲取努力和不斷擴大的產品組合導致廣告和市場推廣費用增加。銷售和行銷費用佔總收入的百分比從去年同期的 10.5% 下降至 2025 年第二季的 10.2%。

Our general and administrative expenses were USD9 million in the second quarter of 2025, an 18.8% increase from USD7.6 million in the same period last year, primarily due to an increase in incentive compensation and higher exchange loss. General and administrative expenses as a percentage of total revenues increased to 10.8% (sic - see press release, "10.6%") in the second quarter of 2025 from 9.3% in the same period last year.

2025 年第二季度，我們的一般及行政開支為 900 萬美元，較去年同期的 760 萬美元增長 18.8%，主要原因是激勵薪酬增加及匯兌損失增加。2025 年第二季度，一般及行政開支佔總收入的百分比從去年同期的 9.3% 上升至 10.8%（原文如此 - 參見新聞稿「10.6%」）。

Our technology and product development expenses were USD8.3 million in the second quarter of 2025, a 28.6% increase from USD6.5 million in the same period of 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 to support the development of new businesses and the expansion of our product portfolio. Technology and product development expenses as a percentage of total revenues increased to 9.9% in the second quarter of 2025 from 8% in the same period last year.

2025年第二季度，我們的技術與產品開發費用為830萬美元，較去年同期的650萬美元增長28.6%，這主要是由於為支持新業務的發展和產品組合的擴展，公司增加了員工人數，從而增加了技術與產品開發人員的薪酬和福利。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 年第二季的 9.9%。

As such, our operating income was USD30.9 million (sic - see press release, "USD30.6 million") in the second quarter of 2025, a 3.4% increase from USD29.6 million in the same period last year. Interest income was USD6.8 million in the second quarter of 2025 compared with USD7.1 million in the same period last year. Income tax expense was USD1.5 million in the second quarter of 2025 compared with USD5.8 million in the same period last year, primarily due to a decrease in UAE corporate tax.

因此，我們的 2025 年第二季營業收入為 3,090 萬美元（原文如此 - 請參閱新聞稿「3,060 萬美元」），比去年同期的 2,960 萬美元增長 3.4%。2025 年第二季利息收入為 680 萬美元，去年同期為 710 萬美元。2025年第二季所得稅費用為150萬美元，去年同期為580萬美元，主要原因是阿聯酋公司稅減少。

As a result of foregoing, our net income was USD36.5 million in the second quarter of 2025, a 16.4% increase from USD31.4 million in the same period last year. And our non-GAAP net income in the second quarter of 2025 was USD39.4 million, an 11.7% increase from USD35.2 million in the same period last year.

受上述因素影響，2025年第二季我們的淨收入為3,650萬美元，較去年同期的3,140萬美元成長16.4%。而我們2025年第二季的非GAAP淨收入為3,940萬美元，較去年同期的3,520萬美元成長11.7%。

Moving to our liquidity and capital resources. Our cash position remains solid and healthy. As of June 30, 2025, we had cash and cash equivalents, restricted cash, term deposits, and short-term investments of USD704.1 million compared with USD656.3 million of December 31, 2024.

轉向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 6 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 7.041 億美元，而 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 beginning on May 21, 2021, with an extended expectation stage of May 21, 2026. As of June 30, 2025, the company has cumulatively completed cash repurchases in the open market of 13,535,437 ADS or Class A ordinary shares for an aggregate amount of approximately USD90.4 million since the inception of the current share repurchase program.

我們將繼續透過股票回購計劃回報價值，根據公司目前的股票回購計劃，該計劃將於 2021 年 5 月 21 日開始，預期延長階段為 2026 年 5 月 21 日。截至2025年6月30日，本公司自本股票回購計畫啟動以來已在公開市場累計完成13,535,437股ADS或A類普通股現金回購，總金額約9,040萬美元。

The aggregate value of ADS or Class A ordinary shares that remain available for purchase under the current share repurchase program was USD59.6 million as of June 30, 2025. In addition, the company had canceled 6,230,299 ADS or Class A ordinary shares as of August 11, 2025.

截至 2025 年 6 月 30 日，根據目前股票回購計畫仍可購買的 ADS 或 A 類普通股的總價值為 5,960 萬美元。此外，截至2025年8月11日，該公司已註銷6,230,299股ADS或A類普通股。

Moving to our outlook. For the third quarter of 2025. we expect our revenues to be between USD78 million and USD85 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 demand, which are all subject to change.

轉向我們的展望。到 2025 年第三季度，我們預計營收將在 7,800 萬美元至 8,500 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，這些都可能發生變化。

In the interest of time, please refer to our earnings press release for further details on the second-quarter 2025 financial results.

為了節省時間，請參閱我們的收益新聞稿，以了解有關 2025 年第二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) Chloe Wei, CICC.

（操作員指示） Chloe Wei，CICC。

This is Chloe Wei from CICC Internet. So firstly, congratulations on the solid results. And my question is about the outlook. So regarding the Q3 outlook mentioned in the prepared remarks, we see a potential year-over-year decline in the following quarter. So could you help us understand the thinking behind this? And should we think that this projection still considers conservative at the early stage?

我是 CICC Internet 的 Chloe Wei。首先，恭喜您取得如此優異的成績。我的問題是關於前景的。因此，關於準備好的評論中提到的第三季前景，我們預計下一季可能會出現年減。那麼你能幫助我們理解背後的想法嗎？我們是否應該認為這項預測在早期階段仍顯得保守？

And also, could management please provide commentary on the 2025 guidance, specifically on the expected revenue growth trajectory and margin trends?

另外，管理階層能否對 2025 年指引發表評論，特別是預期的營收成長軌跡和利潤率趨勢？

Hello, Chloe. This is Karen, and thank you for this question. And for the second half of 2025, we are confident of maintaining a solid revenue performance. Excluding share contributions for the new products, we expect full-year revenue to be flat and deliver low-single-digit growth compared to 2024.

你好，克洛伊。我是凱倫，謝謝你的提問。對於2025年下半年，我們有信心維持穩健的收入表現。不計新產品的份額貢獻，我們預計全年營收將與 2024 年持平，並實現低個位數成長。

Our new game titles may also generate additional revenue growth later this year. We will provide an update to the market after those games are launched and we have better visibility into this performance.

我們的新遊戲也可能在今年稍後帶來額外的收入成長。這些遊戲發布後，我們將向市場提供最新信息，以便更好地了解其表現。

Said about the revenue growth and the net margin trends, we believe an estimate of around 14% is reasonable, exclude any potential investments in new products. We've set aside 5% of our full-year revenue for selling and marketing expenses for these new products, and we will flexibly adjust the budget according to the users' feedback on these new products.

關於收入成長和淨利潤率趨勢，我們認為 14% 左右的估計是合理的，不包括對新產品的任何潛在投資。我們已將全年收入的5%撥出用於這些新產品的銷售和行銷費用，並且我們將根據用戶對這些新產品的回饋靈活調整預算。

Basically, if we decide to spend more on selling and marketing, we expect to see good growth in our company's revenue. We will update to the market later. Thank you for your question.

基本上，如果我們決定在銷售和行銷上投入更多，我們預計公司的收入將實現良好的成長。我們稍後會向市場更新。感謝您的提問。

Xueqing Zhang, CICC.

張學慶，中金公司。

My question about your user strategy. As you mentioned in your prepared remarks, there is a shift in our user acquisition strategy this quarter. Could management share more color on the specific adjustments and the recent algorithms?

我的問題是關於您的用戶策略。正如您在準備好的發言中所提到的，本季我們的用戶獲取策略發生了轉變。管理層能否分享更多有關具體調整和最新演算法的詳細資訊？

Thank you for the question, Xueqing. We delivered outstanding MAU growth during Ramadan in the first quarter. In light of that, in the second quarter, we adjust our user acquisition strategy by refining our evaluation standards for user acquisition channels and optimizing our channel mix. We also allocated more resources towards acquiring and retaining highly engaged users. We believe this will result in vibrant, deeply engaged community as we expand our user base over the long term despite a slight short-term fluctuation in MAU during quarter.

謝謝雪清的提問。我們在第一季的齋戒月期間實現了出色的 MAU 成長。有鑑於此，我們在第二季調整了用戶獲取策略，完善了用戶獲取管道的評估標準，優化了通路組合。我們也分配了更多資源來獲取和留住高度參與的用戶。我們相信，儘管本季的月活躍用戶數量出現輕微的短期波動，但隨著我們長期擴大用戶群，這將帶來一個充滿活力、深度參與的社群。

Starting next quarter, we expect our MAU growth to return to 2% to 3% quarter over quarter, and we target around 10% year-over-year growth in MAU for the full year. Furthermore, if our new initiatives performed well in the second half of the year, this should drive even stronger user acquisition. We will continue to provide updates on our user growth strategy as it evolves. Thank you.

從下個季度開始，我們預計 MAU 成長率將恢復到環比 2% 至 3%，全年 MAU 成長率目標是 10% 左右。此外，如果我們的新措施在下半年表現良好，這將推動更強勁的用戶獲取。我們將持續更新我們的用戶成長策略。謝謝。

[Tian Hulu], CITIC.

[天葫蘆]，中信。

This is Alex from CITIC Securities. And I have a follow-up on the gaming pipeline. Could the management share the progress on your mid-core and hard-core games and provide more details on the pipeline?

我是中信證券的 Alex。我對遊戲管道還有後續關注。管理階層能否分享你們的中核和硬核遊戲的進展情況，並提供更多有關產品線的細節？

Alex, thank you for your continued interest in Yalla's gaming business. We've been efficiently advancing our new game pipeline as planned. This quarter, we released two Match-3 titles targeting different user segments, both of which are in the final stages of fine-tuning. We also plan to release our first road-like mobile game in Q4. Additionally, we are working closely with a leading game developer in preparation for hard core game distribution and expect to get it down this year.

亞歷克斯，感謝您對 Yalla 遊戲業務的持續關注。我們一直在按計劃高效推進我們的新遊戲流程。本季度，我們發布了兩款針對不同用戶群的三消遊戲，目前均處於最後的優化階段。我們也計劃在第四季發布首款公路類手遊。此外，我們正在與一家領先的遊戲開發商密切合作，為硬核遊戲發行做準備，預計今年就能完成。

Overall, our pipeline for the next two quarters is very robust. And at the same time, we are also looking for opportunities to ramp up our pipeline more efficiently through collaboration on game distribution. We'll keep you updated on the progress of this new initiative. Thank you, Alex.

總體而言，我們未來兩個季度的計劃非常強勁。同時，我們也在尋找機會透過遊戲發行的合作來更有效地擴大我們的產品線。我們將隨時向您通報這項新措施的進展。謝謝你，亞歷克斯。

Xiaoyue Hu, Haitong.

胡曉月，海通。

So could management provide an update on the execution of the share repurchase program and share any future plans for shareholder returns?

那麼管理層能否提供有關股票回購計劃執行的最新情況並分享未來的股東回報計劃？

Thank you, Xiaoyue. This is Karen. I will answer this question. Thank you for your question about the shareholder returns. We continue to efficiently execute our buyback program with progress in line with our expectations. With the additional USD22 million we announced the last quarter, the minimum share repurchase commitment for the full year has reached USD50 million.

謝謝你，小月。這是凱倫。我來回答這個問題。感謝您關於股東回報的提問。我們持續有效率地執行回購計劃，進展符合我們的預期。加上我們上個季度宣布的額外 2,200 萬美元，全年最低股票回購承諾已達 5,000 萬美元。

As of June 30, 2025, we have repurchased over 6.2 million shares for approximately USD41 million so far this year. Additionally, we completed the consolidation of these shares, which we purchased in this year.

截至 2025 年 6 月 30 日，我們今年已回購超過 620 萬股，價值約 4,100 萬美元。此外，我們也完成了今年購買的這些股票的合併。

For the remaining four months of this year, we will continue to execute our share repurchase program and plan to complete or potentially exceed our committed amount. We will provide a further update on our repurchase plans next quarter. Thank you.

今年剩下的四個月，我們將繼續執行我們的股票回購計劃，並計劃完成或可能超過我們的承諾金額。我們將在下個季度進一步更新我們的回購計劃。謝謝。

Lincoln Kong, Goldman Sachs.

林肯孔（Lincoln Kong），高盛。

So one question is about the game business. Can you management share your game distribution strategy for the new mid-core and hard-core titles?

其中一個問題是關於遊戲業務的。你們管理階層能否分享針對新中核和硬核遊戲的遊戲發行策略？

Sure, Lincoln. Thank you for your question. Our strategy for new mid-core and hard-core game distribution is anchored on our three core competitive advantages.

當然，林肯。感謝您的提問。我們的新中核和重核遊戲發行策略以我們的三大核心競爭優勢為基礎。

First, deep localization. With a decade of experience in the Middle East, our dedicated in-market team has extensive local know-how, allowing us to accurately grasp user preferences in both aesthetics and content. This ranges from incorporating Arabic design principles to weaving in narrative to ensure meaningful cultural [residents].

一是深度本地化。憑藉在中東十年的經驗，我們專業的市場團隊擁有豐富的本地知識，使我們能夠準確掌握用戶在美學和內容方面的偏好。其中包括融入阿拉伯設計原則、編織敘事以確保有意義的文化[居民]。

Second, efficient user acquisition. Our marketing team is highly experienced with the user acquisition in MENA. In addition to acquiring users from external online channels, we will also leverage our existing user base from our product ecosystem for precise targeting, creating a unique low-cost, high conversion acquisition channel.

第二，高效率的用戶獲取。我們的行銷團隊在中東和北非地區的用戶獲取方面經驗豐富。除了從外部線上管道獲取用戶之外，我們還將利用我們產品生態中現有的用戶群進行精準定位，打造獨特的低成本、高轉換率的獲取管道。

Third, strong community operations. Our local operations team creates tailored in-game events where our large-scale customer service team provides dedicated user care. This combination builds strong community ties and [high-motion emotional] engagement among our users. These advantages position us well to expand our influence in the mid-market. Thank you.

三是社區運作強。我們的本地營運團隊創建了量身定制的遊戲內活動，我們的大型客戶服務團隊提供專門的用戶護理。這種結合在我們的用戶之間建立了強大的社區聯繫和[高情感]參與。這些優勢使我們能夠擴大在中端市場的影響力。謝謝。

Jenny Yuan, UBS.

瑞銀的 Jenny Yuan。

So my question is about our long-term growth strategy. So how does management set the long-term potential of the market? And what is our growth strategy going forward?

我的問題是關於我們的長期成長策略。那麼管理階層如何設定市場的長期潛力？我們未來的成長策略是什麼？

Thanks for the question, Jenny. The MENA region had a young population of 500 million and remarkably high mobile Internet penetration, placing it at a pivotal moment in its digital transformation. We believe several Internet verticals in the Middle East are still in their early stages, with substantial untapped opportunity to bring offline activities online, there is still considerable room for growth in both users online spending habits and overall size of the addressable basket.

謝謝你的提問，珍妮。中東和北非地區擁有5億年輕人口，行動網路普及率極高，正處於數位轉型的關鍵時刻。我們認為，中東地區的多個網路垂直產業仍處於早期階段，將線下活動轉移到線上仍有大量未開發的機會，用戶的線上消費習慣和可尋址購物籃的整體規模仍有相當大的成長空間。

From Yalla perspective, our legacy businesses have relatively long life cycles and currently deliver solid revenue, providing us with a strong business foundation. Building on this, we are committed to investing in the development and distribution of mid-core and hard-core games over the long term.

從 Yalla 的角度來看，我們的傳統業務生命週期相對較長，目前收入穩定，為我們提供了強大的業務基礎。在此基礎上，我們致力於長期投資中核和硬核遊戲的開發和發行。

In many parts of the world, gaming has been a key sector since the early days of the Internet, driving deeper thoughts around user acquisition, Internet monetization, talent development, and technological innovation. We are committed to continuously refining our team and products with this in mind.

在世界許多地方，遊戲自網路早期以來就一直是關鍵產業，推動著人們對用戶獲取、網路貨幣化、人才培養和技術創新的更深層次的思考。我們致力於以此為目標不斷完善我們的團隊和產品。

On the social networking front, we will also continue to explore new opportunities to expand our service offerings to a broader user base. Beyond online entertainment, we are also evaluating potential opportunities in local lifestyle services.

在社群網路方面，我們也將繼續探索新的機會，向更廣泛的用戶群擴展我們的服務。除了線上娛樂，我們還在評估本地生活方式服務中的潛在機會。

We will actively explore new areas to capitalize on the opportunities presented by the MENA's digital transformation. Thank you.

我們將積極探索新領域，抓住中東和北非地區數位轉型帶來的機會。謝謝。

Thank you. This concludes the question-and-answer session. I'd like to turn the conference back over to management for any closing remarks.

謝謝。問答環節到此結束。我想將會議交還給管理階層，請他們發表結束語。

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, Piacente Financial Communication. 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、Piacente Financial Communication。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 today's conference call. You may now disconnect your lines, and have a wonderful day.

謝謝。今天的電話會議到此結束。現在您可以斷開線路，享受美好的一天。