TORONTO, Nov. 11, 2024 /CNW/ – TERAGO Inc. (“TERAGO” or the “Company”) (TSX: TGO) (https://terago.ca/), a leading provider of Managed Fixed Wireless Internet and SD-WAN solutions today reported financial and operating results for the third quarter ended September 30, 2024.

The Company announced another quarter of positive performance, demonstrating the ongoing success of its smart growth strategy and operational enhancements. TERAGO has achieved strong third quarter results, including a 1.2% increase in gross margin, a 31% reduction in customer churn, a 2.8% rise in Adjusted EBITDA, an 8.1% growth in ARPA, and a 56% increase in cash flows from operations.

The Company’s commitment to enhancing client experience has set the stage for future success, positioning TERAGO for profitable business growth. TERAGO’s sales pipeline continues to expand, with notable recent wins, including a multi-million-dollar contract with a national retailer, as announced last week.

“Our latest quarter of strong results is a clear affirmation that TERAGO’s strategy is delivering”, said Daniel Vucinic, CEO of TERAGO. “We are now five quarters into the transformation of TERAGO. My first order of business was to address the cash flow profile of the business. Today, we see a better gross margin, a reduction in operating expenditures, superior deal-level economics and a more efficient approach to capital expenditures. Now my focus is on driving the top line of TERAGO by reenergizing the sales engine. The growing demand for our services, supported by a diverse range of network solutions, sound execution, and strong industrial tailwinds, positions us well for continued success and long-term value creation for all our stakeholders.”

Selected Financial Highlights and Key Developments

(in thousands of dollars, except with respect to gross profit margin1, loss per share, backlog MRR1, and ARPA1)

Total revenue increased by 0.8% to $6,544 for the three months ended September 30, 2024 compared to $6,491 in the same quarter in the prior year period. For the nine months ended September 30, 2024, total revenue marginally increased by 0.4% to $19,593 compared to $19,516 in the same period in the prior year. The increase in revenue in both periods is the result of higher bookings1 and lower churn1 in the current year period.Adjusted EBITDA1 for the three months ended September 30, 2024 increased by 2.8% to $944 as compared to an Adjusted EBITDA1 of $918 for the comparative period in 2023. Adjusted EBITDA1 for the nine months ended September 30, 2024 increased by 25.4% to $2,815 as compared to $2,245 for the comparative period in 2023. The increase is a result of overall lower operating expenses combined with higher revenues in the current period compared to same periods in the prior year.Net loss for the three months ended September 30, 2024 was $3,338, or $(0.17) per share (basic and diluted) compared to a loss of $3,087, or $(0.16) per share (basic and diluted) in the same period in 2023. The increased net loss position is the result of higher term debt interest costs due to additional drawdowns in the prior and current year period, partially offset by lower depreciation and other operating expenses. For the nine months ended September 30, 2024, net loss was $10,097, or $(0.51) per share (basic and diluted) compared to a loss of $9,624, or $(0.49) per share (basic and diluted) in the same period in 2023 resulting from higher term debt interest costs partially offset by lower salaries and related costs, depreciation and other operating expenses.ARPA1 for the connectivity business for the three and nine months increased by 8.3% to $1,221 and by 7.4% to $1,193, respectively, compared to $1,127 and $1,111, respectively, for the same periods in 2023. The improvement in ARPA1 is a result of changes in customer base and product mix and a new pricing strategy implemented in the last quarter of the prior year.Churn1 for the connectivity business for the three months ended September 30, 2024 decreased to 0.9% compared to 1.3% for the same period in 2023. Churn1 for the connectivity business for the nine months ended September 30, 2024 decreased to 0.9% compared to 1.1% for the same period in 2023. The decrease in customer churn1 was due to the continued execution of the Company’s value creation strategy to focus on mid-market and large-scale customers, as well as implementing new strategies for customer renewals and retention.Backlog MRR1 in the connectivity business increased year over year to $114,136 as of September 30, 2024, compared to $75,963 for the same period in 2023. The increase in backlog MRR1 was a result of increase in sales bookings along with Company’s continued focus on larger multisite customer deals and on profitable revenue generation.

_____________________________
(1) See “Non-IFRS Measures”

Management will host a conference call on Tuesday, November 12, 2024, at 10:00 AM ET to discuss these results.

To access the conference call, please dial 888-506-0062 or 973-528-0011 and use conference ID 497348 if applicable. Please call the conference telephone number 15 minutes prior to the start time so that you are in the queue for an operator to assist in registering and patching you through. An archived recording of the conference call will be available through Thursday, August 22, 2024. To listen to the recording, call 877-481-4010 or 919-882-2331 and enter passcode 51555# if applicable.

RESULTS OF OPERATIONS

Comparison of the three and nine months ended September 30, 2024 and 2023

(in thousands of dollars, except with respect to gross profit margin1, loss per share1, backlog MRR1, churn1 and ARPA1) 

This press release contains references to “Cost of Services”, “Gross Profit Margin”, Salaries and Related Costs”, “Other Operating Expenses”, “Adjusted EBITDA”, “Backlog MRR”, “Churn” and “ARPA” which are not measures prescribed by International Financial Reporting Standards (IFRS).

Cost of Services consists of expenses related to delivering service to customers and servicing the operations of our networks. These expenses include costs for the lease of intercity facilities to connect our cities, internet transit and peering costs paid to other carriers, network real estate lease expense, spectrum lease expenses, salaries and related costs of staff directly associated with the cost of services.

Gross Profit Margin % consists of gross profit margin divided by revenue where gross profit margin is revenue less cost of services.

Salaries and related costs includes regular payroll related expenses, commissions and consulting fees.  All share based compensation, restructuring, other related costs are excluded from Salaries and related costs.

Other operating expenses includes sales commission expense, advertising and marketing expenses, travel expenses, administrative expenses including insurance and professional fees, communication expenses, maintenance expenses and rent expenses for office facilities. All restructuring and other related costs are excluded from other operating expenses.

_____________________________
(1) See “Non-IFRS Measures”

Adjusted EBITDA – The Company believes that Adjusted EBITDA is useful additional information to management, the Board and investors as it provides an indication of the operational results generated by its business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and amortization and it excludes items that could affect the comparability of our operational results and could potentially alter the trends analysis in business performance. Excluding these items does not necessarily imply they are non-recurring, infrequent or unusual. Adjusted EBITDA is also used by some investors and analysts for the purpose of valuing a company. The Company calculates Adjusted EBITDA as earnings before deducting interest, taxes, depreciation and amortization, foreign exchange gain or loss, finance costs, finance income, gain or loss on disposal of network assets, property and equipment, impairment of property, plant & equipment and intangible assets, stock-based compensation and restructuring costs. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to operating earnings (losses), or net earnings (losses) determined in accordance with IFRS as an indicator of our financial performance or as a measure of our liquidity and cash flows. Adjusted EBITDA does not take into account the impact of working capital changes, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows. 

A reconciliation of net loss to Adjusted EBITDA is found below and in the MD&A for the three and nine months ended September 30, 2024. Adjusted EBITDA does not have any standardized meaning under IFRS/GAAP. TERAGO’s method of calculating Adjusted EBITDA may differ from other issuers and, accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers.

The table below reconciles Adjusted EBITDA1 to net loss for the three and nine months ended September 30, 2024 and 2023.

Backlog MRR – The term “Backlog MRR” is a measure of contracted monthly recurring revenue (MRR) from customers that have not yet been provisioned. The Company believes backlog MRR is useful additional information as it provides an indication of future revenue. Backlog MRR is not a recognized measure under IFRS and may not translate into future revenue, and accordingly, investors are cautioned in using it. The Company calculates backlog MRR by summing the MRR of new customer contracts and upgrades that are signed but not yet provisioned, as at the end of the period. TERAGO’s method of calculating backlog MRR may differ from other issuers and, accordingly, backlog MRR may not be comparable to similar measures presented by other issuers.

ARPA – The term “ARPA” refers to the Company’s average revenue per account per month in the period. The Company believes that ARPA is useful supplemental information as it provides an indication of our revenue from an individual customer on a per month basis. ARPA is not a recognized measure under IFRS and, accordingly, investors are cautioned that ARPA should not be construed as an alternative to revenue determined in accordance with IFRS as an indicator of our financial performance. The Company calculates ARPA by dividing our total revenue before revenue from early terminations by the number of customers in service during the period and we express ARPA as a rate per month. TERAGO’s method of calculating ARPA has changed from the Company’s past disclosures to exclude revenue from early termination fees, where ARPA was previously calculated as revenue divided by the number of customers in service during the period. TERAGO’s method may differ from other issuers, and accordingly, ARPA may not be comparable to similar measures presented by other issuers.

Churn – The term “churn” or “churn rate” is a measure, expressed as a percentage, of customer cancellations in a particular month. The Company calculates churn by dividing the number of customer cancellations during a month by the total number of customers at the end of the month before cancellations. The information is presented as the average monthly churn rate during the period. The Company believes that the churn rate is useful supplemental information as it provides an indication of future revenue decline and is a measure of how well the business is able to renew and keep existing customers on their existing service offerings. Churn and churn rate are not recognized measures under IFRS and, accordingly, investors are cautioned in using it. TERAGO’s method of calculating churn and churn rate may differ from other issuers and, accordingly, churn may not be comparable to similar measures presented by other issuers.

About TERAGO

TERAGO provides managed network and security services to businesses across Canada ensuring highly secure, reliable, and redundant connectivity including private 5G wireless networks, Fixed Wireless access, fiber, and cable wireline network connectivity. As Canada’s biggest mmWave spectrum holders, the Company possesses exclusive spectrum licences in the 24 GHz and 38 GHz spectrum bands, which it utilizes to provide secure, dedicated SLA guaranteed enterprise grade performance that is technology diverse from buried cables ensuring high availability connectivity services. TERAGO serves over 1,800 Canadian and Global businesses operating in major markets across Canada, including Toronto, Montreal, Calgary, Edmonton, Vancouver, Ottawa and Winnipeg, and has been providing wireless services since 1999. For more information about TERAGO and its suite of wireless internet and SD-WAN solutions, please visit www.terago.ca.

This news release includes certain forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond TERAGO’s control. Forward-looking statements may include but are not limited to statements regarding the further developing our 5G Fixed Wireless Access program, consistently executing across all fronts of the business, success in providing Canadian enterprises with managed services and the 5G fixed wireless trials being conducted by the Company. All such statements constitute “forward-looking information” as defined under, applicable Canadian securities laws. Any statements contained herein that are not statements of historical facts constitute forward-looking information. The forward-looking statements reflect the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those risks set forth in the “Risk Factors” sections in the annual MD&A of the Company for the year ended December 31, 2023 and risks set forth in the “Financial Risk Management” section in the interim MD&A for the three and nine months ended September 30, 2024 available on www.sedarplus.com under the Company’s corporate profile. Factors that could cause actual results or events to differ materially include the inability to consistently achieve sales growth across all lines of TERAGO’s business including managed services, inability to complete successful 5G technical trials, the results of the 5G trials not being satisfactory to TERAGO or any of its technology partners, regulatory requirements may delay or inhibit the trial, the economic viability of any potential services that may result from the trial, the ability for TERAGO to further finance and support any new market opportunities that may present itself, and industry competitors who may have superior technology or are quicker to take advantage of 5G technology. Accordingly, readers should not place undue reliance on forward-looking statements as several factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed with the forward-looking statements. Except as may be required by applicable Canadian securities laws, TERAGO does not intend, and disclaims any obligation, to update or revise any forward-looking statements whether in words, oral or written as a result of new information, future events or otherwise.

SOURCE TeraGo Inc.

The Platform Helps Meet PPA Goals and Accelerate Time-to-Market

SEOUL, South Korea, Nov. 11, 2024 /PRNewswire/ — SEMIFIVE, a leading design solution provider and pioneer of platform-based custom silicon solutions, today announced their collaboration with Synopsys to develop a cutting-edge high-performance computing (HPC) platform integrating SEMIFIVE’s CPU chiplet with a third-party I/O chiplet into a unified package. SEMIFIVE’s HPC chiplet platform will offer notable advantages over traditional chiplet platforms to reduce cost, optimize performance, and enable development flexibility. This platform will advance semiconductor technology, leading to the creation of versatile and customized chiplets to meet the diverse needs of HPC customers.

SEMIFIVE’s CPU chiplet, manufactured on 4nm process technology, will include Synopsys UCIe controller and PHY IP as well as other IP solutions. Synopsys’ IP solutions have helped SEMIFIVE achieve multiple generations of silicon success and become a global leader in innovative custom silicon solutions. SEMIFIVE’s portfolio of optimized SoC platforms are pre-designed and validated on advanced process nodes, allowing customers to improve their overall development efficiency.

“Synopsys and SEMIFIVE are helping companies adopt multi-die designs to address the growing compute demands of high-performance systems,” said Michael Posner, vice president of IP product management at Synopsys. “The combination of Synopsys’ silicon-proven UCIe IP, which has been adopted by multiple hyperscalers, and SEMIFIVE’s extensive SoC platform, helps companies reliably meet their multi-die design requirements and accelerate their development effort.”

“We are confident that chiplets represent the future of silicon design. Our collaboration with Synopsys, particularly using their UCIe IP, is a key factor in ushering in the chiplet era,” said Brandon Cho, CEO and co-founder of SEMIFIVE. “By delivering platforms like the HPC chiplet platform, we will enable our customers to bring innovative, customized solutions to market faster than ever before.”

About SEMIFIVE

SEMIFIVE is the pioneer of platform based SoC design, working with customers to implement innovative ideas into custom silicon in the most efficient way. Our SoC platforms offer a powerful springboard for new chip designs and leverage configurable domain-specific architectures and pre-validated key IP pools. We offer comprehensive spec-to-system capabilities with end-to-end solutions so that custom SoCs can be realized faster, with reduced cost and risks for key applications such as data center or AI-enabled IoT. With a strong partnership with Samsung Foundry as a leading SAFETM DSP partner, as well as the larger ecosystem, SEMIFIVE provides a one-stop shop solution for any SoC design needs. For more information, please visit www.semifive.com.

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SOURCE SEMIFIVE

DUBAI, UAE, Nov. 11, 2024 /PRNewswire/ — Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial and Operating Highlights

Revenues were US$88.9 million in the third quarter of 2024, representing an increase of 4.4% from the third quarter of 2023.Revenues generated from chatting services in the third quarter of 2024 were US$58.5 million.Revenues generated from games services in the third quarter of 2024 were US$30.2 million.Net income was US$39.2 million in the third quarter of 2024, an 11.2% increase from US$35.2 million in the third quarter of 2023. Net margin[1] was 44.1% in the third quarter of 2024.Non-GAAP net income[2] was US$42.6 million in the third quarter of 2024, an 11.3% increase from US$38.3 million in the third quarter of 2023. Non-GAAP net margin[3] was 47.9% in the third quarter of 2024.Average MAUs[4] increased by 14.5% to 40.2 million in the third quarter of 2024 from 35.1 million in the third quarter of 2023.The number of paying users[5] on our platform increased by 12.0% to 12.6 million in the third quarter of 2024 from 11.2 million in the third quarter of 2023.

“We are thrilled to report robust third quarter results, marked by record-setting revenues and enhanced profitability,” said Mr. Yang Tao, Founder, Chairman and CEO of Yalla. “Our revenues rose to US$88.9 million, beating the upper end of our guidance, while net income increased by 11.2% year-over-year to US$39.2 million. We also drove a 14.5% year-over-year increase in average MAUs to 40.2 million and a 12% year-over-year increase in our group’s paying users to 12.6 million. This impressive performance was fueled by our dedication to enhancing localization with new gamification features and targeted gaming events, as well as our ongoing efforts to refine operational processes, optimize user acquisition and further develop our product ecosystem.”

“Furthermore, we continued to explore and invest in Yalla Game, with a strategic focus on new game development. We are on track to test our self-developed mid-core games by year-end. We are confident that our experience in casual games and commitment to user experience and product excellence will enable us to deliver high-quality games and grow our presence in this thriving market. As MENA’s leader in online social networking and gaming, we will continue providing high-quality products and services to our users while playing an active role in the region’s digital transformation.” Mr. Yang concluded.

Ms. Karen Hu, CFO of Yalla, commented, “During the third quarter of 2024, strong execution of our high-quality growth strategies led to record-high revenues. We also continued to boost efficiency and operating leverage. 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 future development. Looking ahead, we will continue to pursue healthy, sustainable growth, creating long-term value for our stakeholders.”

Third Quarter 2024 Financial Results

Revenues

Our revenues were US$88.9 million in the third quarter of 2024, a 4.4% increase from US$85.2 million in the third quarter of 2023. The increase was primarily driven by our broadening user base and enhanced monetization capability. Our average MAUs increased by 14.5% to 40.2 million in the third quarter of 2024 from 35.1 million in the third quarter of 2023. Our solid revenue 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.

In the third quarter of 2024, our revenues generated from chatting services were US$58.5 million, and revenues from games services were US$30.2 million.

Costs and expenses

Our total costs and expenses were US$56.4 million in the third quarter of 2024, a 6.9 % increase from US$52.8 million in the third quarter of 2023.

Our cost of revenues was US$31.8 million in the third quarter of 2024, a 14.6 % increase from US$27.8 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. Cost of revenues as a percentage of our total revenues increased to 35.8% in the third quarter of 2024 from 32.6% in the third quarter of 2023.

Our selling and marketing expenses were US$7.4 million in the third quarter of 2024, a 34.9% decrease from US$11.3 million in the same period last year, primarily driven by our more disciplined advertising and promotion approach. Selling and marketing expenses as a percentage of our total revenues decreased to 8.3% in the third quarter of 2024 from 13.3% in the third quarter of 2023.

Our general and administrative expenses were US$10.1 million in the third quarter of 2024, a 38.3% increase from US$7.3 million in the same period last year, primarily due to an increase in incentive compensation. General and administrative 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 2023.

Our technology and product development expenses were US$7.1 million in the third quarter of 2024, an 11.1% increase from US$6.4 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 our total revenues increased to 8.0% in the third quarter of 2024 from 7.5% in the third quarter of 2023.

Operating income

Operating income remained relatively stable at US$32.5 million in the third quarter of 2024.

Non-GAAP operating income[6]

Non-GAAP operating income in the third quarter of 2024 was US$35.9 million, a 1.4% increase from US$35.4 million in the same period last year.

Interest income

Interest income was US$7.8 million in the third quarter of 2024, compared with US$5.6 million in the third quarter of 2023, primarily due to an increase in interest rates applicable to the Company’s bank deposits.

Income tax expense

Income tax expense was US$1.29 million in the third quarter of 2024, compared with US$0.71 million in the third quarter of 2023. The increase was primarily due to the introduction and implementation of the UAE Corporate Tax Law, which is effective for the financial years starting on or after June 1, 2023.

Net income

As a result of the foregoing, our net income was US$39.2 million in the third quarter of 2024, an 11.2% increase from US$35.2 million in the third quarter of 2023.

Non-GAAP net income

Non-GAAP net income in the third quarter of 2024 was US$42.6 million, an 11.3% increase from US$38.3 million in the same period last year.

Earnings per ordinary share

Basic and diluted earnings per ordinary share were US$0.25 and US$0.22, respectively, in the third quarter of 2024, while basic and diluted earnings per ordinary share were US$0.23 and US$0.20, respectively, in the same period of 2023.

Non-GAAP earnings per ordinary share[7]

Non-GAAP basic and diluted earnings per ordinary share were US$0.27 and US$0.24, respectively, in the third quarter of 2024, compared with US$0.24 and US$0.21, respectively, in the same period of 2023.

Cash and cash equivalents, restricted cash, term deposits and short-term investments 

As of September 30, 2024, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$570.1 million, compared with US$535.7 million as of December 31, 2023.

Share Repurchase Program

Pursuant to the Company’s share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2025, in the third quarter of 2024, the Company repurchased 1,736,383 American depositary shares (“ADSs”), representing 1,736,383 Class A ordinary shares from the open market with cash for an aggregate amount of approximately US$7.0 million. Cumulatively, the Company had completed cash repurchases in the open market of 5,709,259 ADSs, representing 5,709,259 Class A ordinary shares, for an aggregate amount of approximately US$42.5 million, as of September 30, 2024. The aggregate value of ADSs and/or Class A ordinary shares that remain available for purchase under the current share repurchase program was US$107.5 million as of September 30, 2024.

Outlook

For the fourth quarter of 2024, Yalla currently expects revenues to be between US$77.0 million and US$84.0 million.

The above outlook is based on current market conditions and reflects the Company management’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

The Company’s management will host an earnings conference call on Monday, November 11, 2024, at 8:00 PM U.S. Eastern Time, Tuesday, November 12, 2024, at 5:00 AM Dubai Time, or Tuesday, November 12, 2024, at 9:00 AM Beijing/Hong Kong time.

Dial-in details for the earnings conference call are as follows:

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.yalla.com. 

A replay of the conference call will be accessible until November 18, 2024, by dialing the following telephone numbers:

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company’s operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited’s shareholders as net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited’s shareholders, divided by the weighted average number of basic and diluted shares outstanding.

By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. Investors can better understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation has been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.

About Yalla Group Limited

Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users’ evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla’s mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.

For more information, please visit: https://ir.yalla.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Yalla Group Limited
Investor Relations
Kerry Gao – IR Director
Tel: +86-571-8980-7962
Email: ir@yalla.com 

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: yalla@tpg-ir.com 

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: yalla@tpg-ir.com 

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SOURCE Yalla Group Limited