Technology

Yalla Group Limited Announces Unaudited Second Quarter 2024 Financial Results

Published

5 months ago

August 12, 2024

DUBAI, UAE, Aug. 12, 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 second quarter ended June 30, 2024.

Second Quarter 2024 Financial and Operating Highlights

Revenues were US$81.2 million in the second quarter of 2024, representing an increase of 2.5% from the second quarter of 2023.Revenues generated from chatting services in the second quarter of 2024 were US$54.9 million.Revenues generated from games services in the second quarter of 2024 were US$26.2 million.Net income was US$31.4 million in the second quarter of 2024, a 10.9% increase from US$28.3 million in the second quarter of 2023. Net margin1 was 38.6% in the second quarter of 2024.Non-GAAP net income2 was US$35.2 million in the second quarter of 2024, a 4.4% increase from US$33.8 million in the second quarter of 2023. Non-GAAP net margin3 was 43.4% in the second quarter of 2024.Average MAUs4 increased by 14.1% to 39.0 million in the second quarter of 2024 from 34.2 million in the second quarter of 2023.The number of paying users5 on our platform decreased by 10.3% to 12.0 million in the second quarter of 2024 from 13.4 million in the second quarter of 2023.

1 Net margin is net income as a percentage of revenues.

2 Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

3 Non-GAAP net margin is non-GAAP net income as a percentage of revenues.

4 “Average MAUs” refers to the average monthly active users in a given period calculated by dividing (i) the sum of active users for each month of such period, by (ii) the number of months in such period. “Active users” refers to registered users who accessed any of our main mobile applications at least once during a given period. Yalla, Yalla Ludo, Yalla Parchis, YallaChat and 101 Okey Yalla have been our main mobile applications for the periods presented herein; WeMuslim has been our main mobile application since the second quarter of 2023; and Ludo Royal has been our main mobile application since the third quarter of 2023.

5 “Paying users” refers to registered users who played a game or purchased our virtual items or upgrade services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free; YallaChat and WeMuslim do not involve the usage of virtual currencies, and the metrics of “paying users” and “ARPPU” do not reflect user activities on YallaChat and WeMuslim. “Registered users” refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications.

Key Operating Data

For the three months ended

June 30, 2023

June 30, 2024

Average MAUs (in thousands)

34,192

38,999

Paying users (in thousands)

13,402

12,023

“We delivered another solid set of results for the second quarter of 2024, led by total revenues of US$81.2 million, exceeding the top end of our guidance despite the impact of the Ramadan holiday,” said Mr. Yang Tao, Founder, Chairman and CEO of Yalla. “This strong performance was supported by our success in enhancing operational procedures, optimizing technology utilization to improve efficiency, boosting user engagement and refining our user acquisition strategies, which drove a 14.1% year-over-year increase in average MAUs to 39.0 million for the second quarter.

“We recently celebrated the 8th anniversary of Yalla, our group’s first product, which has evolved into the world’s most downloaded voice chat app,6 boasting a highly engaged and loyal user community. On the operational front, we continued to deepen local gamers’ engagement with our products and enhanced our brand influence through numerous exciting online and offline events. Since the end of last year, we have hosted online and offline Yalla Ludo tournaments across different cities in MENA with our esteemed local and international partners, engaging with millions of players. As the largest MENA-based online social networking and gaming company, we remain dedicated to delivering tailored experiences that enrich our users’ lives while contributing to the Middle East’s vibrant digital landscape,” Mr. Yang concluded.

Ms. Karen Hu, CFO of Yalla, commented, “We were pleased to sustain our year-over-year revenue growth momentum in the second quarter as we strove for high-quality development and user growth. Our constant efforts to enhance operating efficiency continued to yield positive results, elevating our net margin to 38.6% in the second quarter of 2024. Moving forward, we will continue to execute our high-quality growth strategy, leveraging our solid business fundamentals to capture new business opportunities and deliver long-term, sustainable value to all our stakeholders.”

Second Quarter 2024 Financial Results

Revenues

Our revenues were US$81.2 million in the second quarter of 2024, a 2.5% increase from US$79.2 million in the second quarter of 2023. The increase was primarily driven by our broadening user base and enhanced monetization capability. Our average MAUs increased by 14.1% from 34.2 million in the second quarter of 2023 to 39.0 million in the second quarter of 2024. Our solid revenue growth was also partially attributable to the significant increase in ARPPU,7 which grew from US$5.8 in the second quarter of 2023 to US$6.6 in the second quarter of 2024.

In the second quarter of 2024, our revenues generated from chatting services were US$54.9 million, and revenues from games services were US$26.2 million.

Costs and expenses

Our total costs and expenses were US$51.6 million in the second quarter of 2024, a 6.8% decrease from US$55.3 million in the second quarter of 2023.

Our cost of revenues was US$29.0 million in the second quarter of 2024, a 2.5% increase from US$28.3 million in the same period last year, primarily due to higher commission fees paid to third-party payment platforms as a result of increasing revenue generated. Cost of revenues as a percentage of our total revenues remained relatively stable at 35.7% in the second quarter of 2024.

Our selling and marketing expenses were US$8.5 million in the second quarter of 2024, a 31.4% decrease from US$12.4 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 from 15.6% in the second quarter of 2023 to 10.5% in the second quarter of 2024.

Our general and administrative expenses were US$7.6 million in the second quarter of 2024, a 5.5% decrease from US$8.0 million in the same period last year, primarily driven by lower share-based compensation expenses recognized in the second quarter of 2024. General and administrative expenses as a percentage of our total revenues decreased from 10.1% in the second quarter of 2023 to 9.3% in the second quarter of 2024.

Our technology and product development expenses were US$6.5 million in the second quarter of 2024, a 1.6% decrease from US$6.6 million in the same period of last year, primarily driven by lower share-based compensation expenses recognized in the second quarter of 2024. Technology and product development expenses as a percentage of our total revenues decreased from 8.3% in the second quarter of 2023 to 8.0% in the second quarter of 2024.

Operating income

Operating income was US$29.6 million in the second quarter of 2024, a 23.8% increase from US$23.9 million in the second quarter of 2023.

Non-GAAP operating income8

Non-GAAP operating income in the second quarter of 2024 was US$33.5 million, a 13.9% increase from US$29.4 million in the same period last year.

Interest income

Interest income was US$7.1 million in the second quarter of 2024, compared with US$4.6 million in the second 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$5.79 million in the second quarter of 2024, compared with US$0.82 million in the second 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$31.4 million in the second quarter of 2024, a 10.9% increase from US$28.3 million in the second quarter of 2023.

Non-GAAP net income

Non-GAAP net income in the second quarter of 2024 was US$35.2 million, a 4.4% increase from US$33.8 million in the same period last year.

Earnings per ordinary share

Basic and diluted earnings per ordinary share were US$0.20 and US$0.17, respectively, in the second quarter of 2024, while basic and diluted earnings per ordinary share were US$0.19 and US$0.16, respectively, in the same period of 2023.

Non-GAAP earnings per ordinary share9

Non-GAAP basic and diluted earnings per ordinary share were US$0.22 and US$0.19, respectively, in the second quarter of 2024, compared with US$0.22 and US$0.19, respectively, in the same period of 2023.

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

As of June 30, 2024, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$528.7 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, the Company had completed cash repurchases in the open market of 3,972,876 American depositary shares (“ADSs”), representing 3,972,876 Class A ordinary shares, for an aggregate amount of approximately US$35.5 million, as of June 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$114.5 million as of June 30, 2024.

Outlook

For the third quarter of 2024, Yalla currently expects revenues to be between US$75.0 million and US$82.0 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.

6 According to data.ai’s research, by downloads in 2023

7 “ARPPU” refers to average revenues per paying user in a given period, which is calculated by dividing (i) revenues for such period, by (ii) the number of paying users for such period. When calculating the ARPPU, we include revenues generated from Yalla, Yalla Ludo, Yalla Parchis, 101 Okey Yalla and Ludo Royal (since the third quarter of 2023) in a given period.

8 Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

9 Non-GAAP earnings per ordinary share is non-GAAP net income attributable to Yalla Group Limited’s shareholders, divided by weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited’s shareholders represents net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited’s shareholders are non-GAAP financial measures. See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

Conference Call

The Company’s management will host an earnings conference call on Monday, August 12, 2024, at 8:00 PM U.S. Eastern Time, Tuesday, August 13, 2024, at 4:00 AM Dubai Time, or Tuesday, August 13, 2024, at 8:00 AM Beijing/Hong Kong time.

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

United States Toll Free:

+1-888-317-6003

International:

+1-412-317-6061

United Arab Emirates Toll Free:

80-003-570-3589

Mainland China Toll Free:

400-120-6115

Hong Kong, China Toll Free:

800-963-976

Access Code:

4890168

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 August 19, 2024, by dialing the following telephone numbers:

United States Toll Free:

+1-877-344-7529

International:

+1-412-317-0088

Access Code:

6123926

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 revenue 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

YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of

December 31,
2023

June 30,
2024

US$

ASSETS

Current assets

Cash and cash equivalents

311,883,463

289,553,961

Restricted cash

423,567

420,946

Term deposits

213,105,501

230,749,436

Short-term investments

10,282,329

8,000,000

Amounts due from a related party

109,507

—

Prepayments and other current assets

33,340,602

36,904,158

Total current assets

569,144,969

565,628,501

Non-current assets

Property and equipment, net

1,583,604

1,415,128

Intangible asset, net

1,133,715

1,014,122

Operating lease right-of-use assets

2,382,026

1,837,703

Long-term investments

51,692,218

132,293,265

Other assets

13,015,729

12,935,189

Total non-current assets

69,807,292

149,495,407

Total assets

638,952,261

715,123,908

LIABILITIES

Current liabilities

Accounts payable

928,055

858,983

Deferred revenue

46,558,571

54,175,880

Operating lease liabilities, current

1,153,691

1,070,626

Amounts due to a related party

—

108,867

Accrued expenses and other current liabilities

26,694,999

25,128,214

Total current liabilities

75,335,316

81,342,570

Non-current liabilities

Operating lease liabilities, non-current

949,970

468,972

Total non-current liabilities

949,970

468,972

Total liabilities

76,285,286

81,811,542

EQUITY

Shareholders’ equity of Yalla Group Limited

Class A Ordinary Shares

13,778

13,910

Class B Ordinary Shares

2,473

Additional paid-in capital

313,306,523

321,783,768

Treasury stock

(35,527,305)

Accumulated other comprehensive loss

(2,341,740)

(2,613,364)

Retained earnings

292,223,525

355,461,482

Total shareholders’ equity of Yalla Group Limited

567,677,254

639,120,964

Non-controlling interests

(5,010,279)

(5,808,598)

Total equity

562,666,975

633,312,366

Total liabilities and equity

638,952,261

715,123,908

YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS

Three Months Ended

Six Months Ended

June 30,
2023

March 31,
2024

June 30,
2024

June 30,
2023

June 30,
2024

US$

Revenues

79,246,363

78,728,578

81,197,482

152,764,976

159,926,060

Costs and expenses

Cost of revenues

(28,330,815)

(28,571,261)

(29,025,673)

(56,183,292)

(57,596,934)

Selling and marketing expenses

(12,378,490)

(8,099,936)

(8,491,520)

(23,733,465)

(16,591,456)

General and administrative expenses

(8,018,573)

(6,647,892)

(7,576,904)

(18,182,967)

(14,224,796)

Technology and product development expenses

(6,586,078)

(6,262,254)

(6,481,616)

(13,997,266)

(12,743,870)

Total costs and expenses

(55,313,956)

(49,581,343)

(51,575,713)

(112,096,990)

(101,157,056)

Operating income

23,932,407

29,147,235

29,621,769

40,667,986

58,769,004

Interest income

4,623,275

6,644,884

7,097,975

7,741,564

13,742,859

Government grants

4,560

67,332

365,031

182,219

432,363

Investment income (loss)

529,308

(1,288,127)

60,233

1,021,197

(1,227,894)

Income before income taxes

29,089,550

34,571,324

37,145,008

49,612,966

71,716,332

Income tax expense

(821,149)

(3,483,208)

(5,793,582)

(1,437,507)

(9,276,790)

Net income

28,268,401

31,088,116

31,351,426

48,175,459

62,439,542

Net loss attributable to non-controlling interests

1,202,160

505,987

292,428

1,756,751

798,415

Net income attributable to Yalla Group
Limited’s shareholders

29,470,561

31,594,103

31,643,854

49,932,210

63,237,957

Earnings per ordinary share

——Basic

0.19

0.20

0.32

0.39

——Diluted

0.16

0.17

0.28

0.34

Weighted average number of shares
outstanding used in computing earnings
per ordinary share

——Basic

158,871,859

160,379,455

160,721,827

158,424,104

160,550,641

——Diluted

180,752,549

183,260,168

183,535,654

180,635,132

183,397,911

Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and technology and product development expenses as follows:

Three Months Ended

Six Months Ended

June 30,
2023

March 31,
2024

June 30,
2024

June 30,
2023

June 30,
2024

US$

Cost of revenues

923,513

1,902,717

1,867,863

1,953,762

3,770,580

Selling and marketing expenses

1,014,371

700,115

681,035

1,985,706

1,381,150

General and administrative expenses

3,242,981

1,333,314

1,321,200

6,488,259

2,654,514

Technology and product development expenses

315,173

262,731

19,198

664,450

281,929

Total share-based compensation expenses

5,496,038

4,198,877

3,889,296

11,092,177

8,088,173

YALLA GROUP LIMITED

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

Three Months Ended

Six Months Ended

June 30,
2023

March 31,
2024

June 30,
2024

June 30,
2023

June 30,
2024

US$

Operating income

23,932,407

29,147,235

29,621,769

40,667,986

58,769,004

Share-based compensation expenses

5,496,038

4,198,877

3,889,296

11,092,177

8,088,173

Non-GAAP operating income

29,428,445

33,346,112

33,511,065

51,760,163

66,857,177

Net income

28,268,401

31,088,116

31,351,426

48,175,459

62,439,542

Share-based compensation expenses,
net of tax effect of nil

5,496,038

4,198,877

3,889,296

11,092,177

8,088,173

Non-GAAP net income

33,764,439

35,286,993

35,240,722

59,267,636

70,527,715

Net income attributable to Yalla
Group Limited’s shareholders

29,470,561

31,594,103

31,643,854

49,932,210

63,237,957

Share-based compensation expenses,
net of tax effect of nil

5,496,038

4,198,877

3,889,296

11,092,177

8,088,173

Non-GAAP net income attributable to
Yalla Group Limited’s shareholders

34,966,599

35,792,980

35,533,150

61,024,387

71,326,130

Non-GAAP earnings per ordinary share

——Basic

0.22

0.39

0.44

——Diluted

0.19

0.20

0.19

0.34

0.39

Weighted average number of shares
outstanding used in computing earnings
per ordinary share

——Basic

158,871,859

160,379,455

160,721,827

158,424,104

160,550,641

——Diluted

180,752,549

183,260,168

183,535,654

180,635,132

183,397,911

View original content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-second-quarter-2024-financial-results-302219813.html

SOURCE Yalla Group Limited

Technology

Fisher Investments Finalizes Strategic Partnership with Advent and ADIA with Completion of Minority Common Stock Investment

Published

3 minutes ago

January 7, 2025

Fisher Investments’ Founder Ken Fisher Maintains Majority Controlling Interest

PLANO, Texas, Jan. 7, 2025 /PRNewswire/ — Fisher Investments (“FI”) announced that Advent International (“Advent”) and a wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) completed a previously announced minority investment in Ken Fisher’s namesake firm, Fisher Investments. The $3 billion common stock investment by Advent and ADIA values FI at $12.75 billion.

The transaction was part of Ken Fisher’s long-term estate planning and ensures FI’s long-term private independence, culture, growth evolution and devotion to exceptional client service. Ken Fisher remains active in his current role as FI’s Executive Chairman and Co-Chief Investment Officer and retains a majority of beneficial ownership and over 70% of voting shares in FI. FI CEO Damian Ornani continues to drive FI’s day-to-day operations and business strategy. In connection with the investment, David Mussafer, a Managing Partner at Advent, has joined the board of directors at FI, and Gabriela Weiss, a Principal at Advent, has joined as a board observer at FI.

As of 12/31/24, FI managed nearly $300 billion for over 170,000 clients globally, including over 130,000 US private clients and 200 of the world’s largest and most well-known institutional clients. This is the first outside investment in FI, with previous ownership solely among family and employees. There is no further FI investment transaction contemplated. The investment in common shares includes neither options nor non-common stock preferences and includes proportional voting to the investors’ beneficial ownership in FI.

Ken Fisher said, “While my health is excellent, this transaction is aimed dually at long-term estate tax and planning purposes should anything untoward happen to me. Advent and ADIA are truly exceptional partners who value us operationally and culturally, and are committed to preserving what differentiates FI in our industry.”

Damian Ornani, longtime FI CEO, said, “We welcome Advent and ADIA’s support of our mission to help more new clients around the world.”

David Mussafer said, “We are thrilled to cement Advent’s partnership with FI at a moment when there is a growing need for the smart, independent and personalized financial expertise that FI is recognized for providing for 45 years. We look forward to closely collaborating with Ken, Damian and the rest of the FI team to support the company’s continued growth, drawing on Advent’s deep expertise in helping financial services companies best capitalize on the opportunities ahead.”

J.P. Morgan Securities LLC and RBC Capital Markets served as joint financial advisors and Paul Hastings served as legal advisor to FI. Ropes & Gray served as legal advisor to Advent. Gibson Dunn served as legal advisor to ADIA.

About Fisher Investments
Founded in 1979, Fisher Investments is an independent, fee-only investment adviser. Fisher Investments and its subsidiaries manage nearly $300 billion across three principal businesses—Institutional, US Private Client, and Private Client International. Founder and Executive Chairman Ken Fisher wrote the Forbes “Portfolio Strategy” column for 32 ½ years until 2017, making him the longest running columnist in its history. He now writes monthly for the New York Post and discreet unique columns in native language, varying by country, in 26 major nations, spanning more countries and more total volume than any other columnist of any type in history. Ken has appeared regularly on major TV news like Fox Business and News, BBN Bloomberg and CNN International. Ken has written 11 investing and finance books, including four New York Times bestsellers. For more information, visit www.fisherinvestments.com.

About Advent International
Advent is a leading global private equity investor committed to working in partnership with management teams, entrepreneurs, and founders to help transform businesses. With 16 offices across five continents, we oversee more than USD $88.8 billion in assets under management* and have made more than 420 investments across 43 countries.

Since our founding in 1984, we have developed specialist market expertise across our five core sectors: business & financial services, consumer, healthcare, industrial, and technology. This approach is bolstered by our deep sub-sector knowledge, which informs every aspect of our investment strategy, from sourcing opportunities to working in partnership with management to execute value creation plans. We bring hands-on operational expertise to enhance and accelerate businesses.

As one of the largest privately-owned partnerships, our 650+ colleagues leverage the full ecosystem of Advent’s global resources, including our Portfolio Support Group, insights provided by industry expert Operating Partners and Operations Advisors, as well as bespoke tools to support and guide our portfolio companies as they seek to achieve their strategic goals.

To learn more, visit our website connect with us on LinkedIn.

*Advent assets under management (AUM) as of June 30, 2024. AUM includes assets attributable to Advent advisory clients as well as employee and third-party co-investment vehicles.

About Abu Dhabi Investment Authority
Established in 1976, the Abu Dhabi Investment Authority (“ADIA”) is a globally diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. For more information, visit www.adia.ae.

Media Contacts
For Fisher Investments
Naj Srinivas
Executive Vice President, Corporate Communications
n.srinivas@fi.com

For Advent International
Leslie Shribman
Head of Communications
lshribman@adventinternational.com

For ADIA
Garry Nickson
Corporate Communications & Public Affairs
garry.nickson@adia.ae

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Technology

Shereta Williams Named EVP, Growth Operations for Cox Enterprises

Published

3 minutes ago

January 7, 2025

Cox Enterprises Continues Focus on Diversification to Drive Long-Term Growth

ATLANTA, Jan. 7, 2025 /PRNewswire/ — Cox Enterprises has named Shereta Williams as executive vice president of Growth Operations. In this role, Williams will continue to help drive the company’s diversification strategy and oversee all Cox Enterprises’ majority-owned businesses outside of its core operating divisions, Cox Communications and Cox Automotive. Her responsibilities include managing strategic partnerships and investments, accelerating growth, and diversifying into new industries such as cleantech, sustainable agriculture, public sector software and digital media.

“Shereta has been instrumental in driving Cox’s growth strategy,” said Dallas Clement, president and chief financial officer of Cox Enterprises. “Her strategic vision and ability to balance entrepreneurial innovation with operational execution have played a key role in our success as we diversify and expand our portfolio. I’m thrilled to see Shereta step into this role and lead us into the future.”

Over the last several years, Cox Enterprises has focused on strategically expanding beyond its core industries to drive long-term growth. As part of this diversification strategy, the company has made significant investments and acquisitions, including Axios, a leading digital media company, and OpenGov, a pioneer in cloud-based public sector software solutions. The company also launched a new platform in sustainable agriculture, Cox Farms, and is now the largest greenhouse operator in North America with more than 700 acres. Williams played a pivotal role in these efforts, which reflect the company’s commitment to investing in new industries that will shape the future of its business.

“I’m honored to continue building on Cox’s legacy of innovation and growth,” said Williams. “Cox has a unique ability to create opportunities that drive business success while making a positive impact in the communities we serve. I look forward to advancing this work and supporting our talented teams as we shape the future together.”

Since joining Cox Enterprises in 1998, Williams has held various roles in strategy, corporate development and operations, including positions within Cox Television and Cox Media Group. She also served as managing director of the currency division for Maven Funds, a startup hedge fund in Atlanta. An electrical engineer by training, Williams began her career in investment banking at Lazard Frères & Co., where she gained experience in acquisitions, divestitures, leveraged buyouts and public offerings.

Williams earned her degree in electrical engineering from the Massachusetts Institute of Technology (M.I.T.) and serves on the board of directors for Daktronics, Inc., and Food Well Alliance, a nonprofit focused on providing resources and support to local growers to connect and build healthier communities.

About Cox Enterprises
Cox Enterprises is dedicated to empowering people to build a better future for the next generation. Cox is a leader in the broadband, automotive, and media industries, as well as a leading investment platform with strategic positions in emerging technologies driving the future of agriculture, renewable energy, healthtech, and public sector software. Headquartered in Atlanta, Georgia, Cox is a global company with $23 billion in annual revenues and a proud history spanning more than 125 years. To learn more about Cox and its commitment to its people, planet and communities, visit coxenterprises.com.

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SOURCE Cox Enterprises

Technology

Eighteen New Semiconductor Fabs to Start Construction in 2025, SEMI Reports

Published

3 minutes ago

January 7, 2025

MILPITAS, Calif., Jan. 7, 2025 /PRNewswire/ — The semiconductor industry is expected to start 18 new fab construction projects in 2025*, according to SEMI’s latest quarterly World Fab Forecast report. The new projects include three 200mm and fifteen 300mm facilities, the majority of which are expected to begin operations from 2026 to 2027.

In 2025, the Americas and Japan are the leading regions with four projects each. The China and Europe & Middle East regions are each tied for third place with three planned construction projects. Taiwan has two planned projects, while Korea and Southeast Asia have one project each for 2025.

“The semiconductor industry has reached a pivotal juncture, with investments driving both leading-edge and mainstream technologies to meet evolving global demands,” said Ajit Manocha, SEMI President and CEO. “Generative AI and high-performance computing are fueling advancements in the leading-edge logic and memory segments, while mainstream nodes continue to underpin critical applications in automotive, IoT and power electronics. The construction of 18 new semiconductor fabs set to begin in 2025 demonstrates the industry’s commitment to support innovation and significant economic growth.”

Covering 2023 to 2025, the 4Q 2024 edition of World Fab Forecast report shows that the global semiconductor industry plans to begin operation of 97 new high-volume fabs. This includes 48 projects in 2024 and 32 projects set to launch in 2025, with wafer sizes ranging from 300mm to 50mm.

Advanced Nodes Lead Semiconductor Industry Expansion

Semiconductor capacity is projected to further accelerate, with a 6.6% yearly growth rate forecast to total 33.6 million wafers per month (wpm)** for 2025. This expansion will be primarily driven by leading-edge logic technologies in high-performance computing (HPC) applications and the increasing penetration of generative AI in edge devices.

The semiconductor industry is intensifying efforts to build advanced computing capabilities, responding to the escalating computational demands of large language models (LLMs). Chip manufacturers are aggressively expanding advanced node capacities (7nm and below), which are expected to see an industry-leading 16% yearly growth rate for an increase of more than 300,000 wpm to total 2.2 million wpm in 2025.

Boosted by China’s chip self-sufficiency strategy and expected demand from automotive and IoT applications, mainstream nodes (8nm~45nm) are predicted to add another 6% capacity, surpassing the 15 million wpm milestone in 2025.

Mature technology nodes (50nm and above) are experiencing a more conservative expansion, reflecting the market’s slow recovery and low utilization rates. This segment is expected to grow 5%, reaching 14 million wpm in 2025.

Foundry Segment Continues Strong Capacity Growth

Foundry suppliers are expected to remain the leaders in semiconductor equipment purchases. The Foundry segment is projected to increase capacity by 10.9% year-over-year, rising from 11.3 million wpm in 2024 to a record 12.6 million wpm in 2025.

The overall memory segment shows a measured capacity expansion, with modest growth of 3.5% in 2024 and 2.9% in 2025. However, strong generative AI demand is driving significant changes in memory markets. High-bandwidth memory (HBM) is experiencing a notable surge, creating divergent capacity growth trends between the DRAM and NAND flash segments.

The DRAM segment is expected to maintain robust growth, projecting approximately a 7% year-over-year increase to 4.5 million wpm in 2025. Conversely, the installed capacity for 3D NAND is anticipated to grow 5%, reaching 3.7 million wpm in the same period.

The latest update of the SEMI World Fab Forecast report, published in December 2024, lists more than 1,500 facilities and lines globally, including 180 volume facilities and lines with various probabilities expected to start operation in 2025 or later.

Download a sample of the SEMI World Fab Forecast report.

For details about SEMI reports on other semiconductor sectors, visit SEMI Market Intelligence or contact us at mktstats@semi.org.

*The fab count does not include research and development (R&D) lines
**200mm equivalent

About SEMI
SEMI® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more.

Association Contacts

Samer Bahou/SEMI Corporate
Phone: 1.408.943.7870
Email: sbahou@semi.org

Christian G. Dieseldorff/SEMI US
Phone: 1.408.943.7940
Email: cdieseldorff@semi.org

Chih-Wen Liu/SEMI Taiwan
Phone: 886.3.560.1777
Email: cwliu@semi.org

SOURCE SEMI