Yalla Group beats Q4 estimates, but shares slip on weak guidance

Published 10/03/2025, 22:14
Yalla Group beats Q4 estimates, but shares slip on weak guidance

DUBAI - Yalla Group Limited (NYSE:YALA), the largest Middle East and North Africa-based online social networking and gaming company, reported fourth-quarter earnings that surpassed analyst expectations, but its shares dipped 1% in after-hours trading due to weak guidance for the upcoming quarter.

The company posted adjusted earnings per share of $0.18 for the fourth quarter, while revenue climbed 12.2% YoY to $90.8 million, exceeding the consensus estimate of $86.6 million. Yalla’s robust performance was driven by a 14.4% increase in average monthly active users to 41.4 million and a 3.2% rise in paying users to 12.3 million.

However, Yalla’s outlook for the first quarter of 2025 fell short of analyst expectations. The company forecasts revenue between $75 million and $82 million, below the consensus estimate of $83.3 million.

"We delivered robust 2024 results thanks to our unwavering commitment to driving high-quality growth in a rapidly evolving market," said Yang Tao, Founder, Chairman and CEO of Yalla. "Our revenues rose to US$90.8 million for the fourth quarter, reaching a new record high for the second consecutive quarter and once again beating the upper end of our guidance."

For the full year 2024, Yalla reported a 6.5% increase in revenue to $339.7 million, with net income rising 18.7% to $134.2 million. The company’s focus on operational efficiency led to a 26% YoY increase in operating income for the full year.

Despite the positive results, the stock’s slight decline in after-hours trading suggests investors may be concerned about the company’s growth trajectory in the near term.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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