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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.
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