Yalla Group Limited

Hello, everyone, and welcome to Yela's fourth quarter and full year 2021 earnings conference call. We released our earnings earlier today, and the release is now available on our IR website, as well as on Newswire services. Before we continue, please know that the discussion today will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Integration Reform Act of 1995. Forward-looking statements involve inherent risks and incentives. As such, our future results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in our earnings release and our registration statements filed with SEC. YALA does not assume any obligation to update any forward-looking statements except as required by law. Please also note that YALA's earnings press release and this conference call include a discussion of unaudited gap financial information as well as unaudited non-gap financial measures. Yala's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. Today you will hear from Mr. Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our recent achievements and growth strategies. He will be followed by Mr. Saifiz Mayu, the company's President, who will give a brief review of our recent developments. Mrs. Karen Hu, our Chief Financial Officer, will then provide additional details on the company's financial results. and discuss our financial outlook. Following management's prepared remarks, we will open up the call to questions. Our Chief Operating Officer, Mr. Jeff Xu, will join the call for our QA session. 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.

Thank you, Carrie, and thank you, everyone, for joining our Fourth Quarter and Full Year 2021 Earnings Conference Call. 2021 marked an important year for Yala. Dedicated to our vision of fulfilling the involving online social networking and entertainment needs of Mina users, we increased the diversity of our business and services to new levels. We continued to expand with the area of development, investment, and collaboration initiatives, and build a thriving Yala ecosystem of seven products. as well as an exciting pipeline of new innovative products and features to provide our users with additional choices and a better experience while creating future revenue streams for our company. Before we turn to our business updates, I would first like to provide an update on the voluntary dismissal of the Securities Class Actions lawsuit YALA faced recently. This lawsuit was filed against YALA in the US in August 2021 based on assertions in short salary reports, refuted by the company, claiming that Yala had violated U.S. securities laws. The U.S. court ordered the plaintiffs and their attorneys to file an amended complaint, including the factual basis supporting their allegations. However, after several months of preparation time, the lead plaintiffs and their attorneys failed to file an amended complaint by deadline set by the court. Instead, they elected not to pursue this matter any further and voluntarily dismissed the lawsuit on January the 12th, 2022, agreeing to bear their own litigation costs. Once YALA agreed to the plaintiff's dismissal. The following day, the court approved it and terminated the lawsuit. Voluntary dismissal of this kind is rare in the industry. Throughout the process, Yella maintained that the lawsuit has no factual basis, and this has now been further validated by the plaintiff and their attorney's decision to dismiss the lawsuit after several months of investigation. Now let's take a closer look at some of our recent accomplishments. As a pioneer in MENA's online social networking and entertainment industry, we consistently seek to expand our ecosystem with investments that broaden our product range and meet our users' unique needs as we serve the MENA region. Last quarter, we announced the establishment of our holding subsidiary, Vialla Games. And we are happy to share that we have already made two investments in mid-core to high-core game projects. We have already identified two content providers with impressive teams that we will assist in localizing and distributing their games within the MENA region, leveraging our local know-how to bring exciting new content to our users. Empowered by our healthy cash flow and strong cash balance, we are also looking beyond gaming to find diverse investment opportunities to flexibility and efficiently broaden our ULS ecosystem. Our efforts to lead Mina's online social networking and entertainment industry do not stop at game distribution. We also strive to advance social networking products for the media market and have made good progress with our IM product, Yellowchat. We recently released Yellowchat version 0.3 with new functions, including group video chatting and images designed specifically for Arabic users. With plans to roll out more localized functions in the near future, We strongly believe that in the digital era, a dedicated IAM product with features tailored to MENA's local user preferences is a fundamental requirement. And we feel an overriding sense of responsibility to fulfill the critical need for MENA-based users. It's never easy to develop a successful IAM product, but it plays a significant role in our vision to fulfill the involving online social networking and entertainment needs of MENA users. We will continue to welcome user feedback and work on perfecting the details with upcoming iterations of Yellowchat. As we reported last quarter, beyond Yellowchat, we have been expanding the boundaries of existing online social networking products with our work on WAHA, the first ever social metaverse designed for the MENA region. WAHA, which means Oasis in Arabic, is an important step forward in Jalos Group's metaverse application explorations. And we are thrilled to share that we brought our metaverse to life even earlier than expected with WAHA's successful launch in both the App Store and Google Play on March the 10th. WAHA's interactive features provide users with greater freedom online as well as immersive online-merge-offline social experiences. In WAHA, users can interact virtually with their online friends in 3D's social sense while simultaneously enjoying real-life socialization through web chatting and gifting. We see massive development potential in the metaverse and we remain keen to continue exploring its possibilities to create accelerating interactive experiences for our Waha users. We also mentioned last quarter that we have officially kicked off our internal ESG program. As a responsible corporate citizen, YALA is committed to advancing ESG initiatives in the MENA region, and we believe a sustainable growth target is essential for YALA, our community, and for our shareholders. We have been communicating with internal and external stakeholders to gather feedback and refine our ESG guidelines, and we are happy to update you that we will release our first annual ESG report very soon. Additionally, I'm delighted to share with you that our President, Mr. Saifi Ismail, was named MENA's Leading Personality of the Year in the Digital and Human Discovery by Emirati Estarbaez Tasmarat, magazine's 2021 Middle East's Most Creative Business Leaders Award. Saifi was honored along with an illustrious group of 22 Middle East business leaders for his outstanding contributions to the digitalization of entertainment and social networking in the region. Congrats, Jackie. In conclusion, I would like to reiterate that our vision, and one that we feel passionate about, is to build the most popular destination for online social networking and entertainment activities in MENA. We hope to realize this vision within the next 10 years. For the past five years, we have been committed to promoting a healthy and orderly sector environment, and providing the people of MENA with better access to digital life. And our devotion to this goal remains unchanged. Looking ahead, we will continue to closely watch MENA's local cultural trends, and develop a yellow ecosystem with a host of products and services tailored to the needs of local users. We are well-positioned to capitalize potential growth opportunities in the MENA region and leverage our excellent localization capabilities to generate long-term sustainable returns for our shareholders. Now I will turn this call over to our president, Mr. Saifi Ismail, for a closer look at our recent development.

Hello, everyone. Thanks for joining us today. And thank you very much, Tao, too, for mentioning the Emirati Istismarat magazine's leading personality of the year award in the digital entertainment category. I'm most grateful to have received this recognition both for myself and on behalf of the entire Yalla group. It reflects our passion for digital entertainment and its impact on the region. The media entertainment and social networking market is undergoing a vast digital transformation. And Yalla is proud to be a driver of innovation and a source of creativity as we advance the development of the digital world in the region. We will continue to develop our immersive digital social and entertainment ecosystem and provide our users with even more memorable and cherished experiences. Now, let's take a look to our operations, as well as our product performances. Operationally, our growth momentum persisted throughout 2021 as we expanded our user community and advanced our monetization capabilities. We are pleased to report a solid fall year of 2021, with Yalla Group's total revenue increasing 102.4% year-over-year to reach 273.1 million U.S. dollars. Furthermore, 2021 was an important year for Yalla from a product perspective as we continued to roll out products tailored to MENA users' needs and diversify the services and businesses that Yalla covers. Our experienced marketing team implemented innovative, customized campaigns to promote products that resonate deeply with the local culture. As a result, in the fourth quarter, our monthly active users increased 8.1% quarter over quarter, reaching 28.1 million. Yellow groups weighing users also increased to 8.4 million as we have begun to launch more new products since the end of the last year. We are proactively working to improve our product launch efficiency to this end while increasing the budget We are also adjusting our sales and marketing strategies by focusing on key regions and groups, as well as exploring new customer acquisition channels, such as offline advertising, among others. We are also happy to share that our games, including Yalla Purchase, 101 OK Yalla, and the recently launched Yalla Balut are making impressive progress. In quarter four, Yellow Parchees was ranked within the top five in 10 countries in terms of the number of downloads under the board games category, and also ranked in the top 10 in terms of revenue under the board games category in Colombia, Spain, and Mexico, to name just a few. To advance our localization efforts, we rolled out the chatroom function in Yellow Parchees' latest version, enabling not only voice chatting, but also video chatting. to better suit South American users' social habits and preferences. We also hosted events to celebrate local holidays to encourage user engagement on the platform. Our Diadi Mortros event was a notable success, attracting participation by more than 40% of our monthly active users. 101 OK Yalla remains one of the most downloaded apps in the board game categories in Turkey. and was also ranked among the top 10 in terms of revenue in Turkey in the board game category for the first time in December 2021. 101OK Yalla receives excellent feedback from users, and we have seen user sickness improve consistently as both average daily time spent per active user and user willingness to pay continue to grow. Last but not least, in December 2021, we officially launched Ayala Balloon, a cloud game designed for Saudi users. Since its launch, Yellow Balloon has been recommended 13 times on the first page within the game category in the App Store. A powerful testament to our team's extensive experience and ability to develop highly desirable, enjoyable products well liked by our target user base. Next, another piece of good news. The Yalla Group was romantically featured in one of the Time magazine's most popular issues, the Person of the Year issue. A unique annual edition featuring the person, group, idea, or object that has done the most to influence key events during the year. As the first UAE internet unicorn to be listed in the United States, Yalla's first year as a public company has been filled with many achievements, as well as challenges. And we are proud to have caught the eye of this renowned publication. We will continue to build our visibility while communicating transparently and sincerely with our users, investors, the public, and all of our stakeholders to better convey our story and progression, as well as further strengthen and elevate Yella's brand across the MENA region. As we reiterate every quarter, Yalla aspires to become the number one online social networking and entertainment platform in the MENA region. This vision never changes. We will remain faithful to our core values of prioritizing our users, embracing diversity, and operating within a simple, pragmatic, pioneering, and enterprising approach as we work to achieve our goals. With that, I will now turn the call to our CFO, Karen, who will discuss our key financial and operational results.

Thank you, Saifi. Hello, everyone. Thank you for joining us. We sustained our steady financial performance in the fourth quarter of 2021, reflecting the strong execution of our users through strategy and the progress we achieved with our new initiatives. Our first quarter revenue grew by 39.7% year-over-year to $67.6 million, while our non-GAAP net income reached $27.6 million with a growth rate of 18.2% year-over-year. Notably, we also maintained a non-GAAP net margin of more than 40% in the first quarter at 40.8%. while simultaneously accelerating our new business initiatives. We are confident that enhancements to our product portfolio will create future growth opportunities by expanding our user base and the revenues, providing a solid foundation for long-term profitability. Now I would like to walk you through our detailed financials for the fourth quarter of 2021. Our revenues were $67.6 million in the fourth quarter of 2021, a 39.7% increase from $48.3 million in the same period last year. The increase was primarily driven by the broadening of Yala Group's user base and the enhancement to Yala Group's monetization capabilities. Our average MAUs increased by 71% from 16.4 million in the fourth quarter of 2020 to 28.1 million in the fourth quarter of 2021. Now let's look at our costs and expenses. Our cost of revenues was 23.9 million US dollars in the fourth quarter of 2021, compared with 18.4 million in the fourth quarter of 2020. The increase was mainly driven by an increase in commission fees for the third-party payment platforms resulting from our expanding business scale, partially offset by lower share-based compensation expenses of $1.6 million recognized during the fourth quarter of 2021, a 25.7% decrease from $2.2 million in the fourth quarter of 2020, Extraordinary share-based compensation expenses, cost of revenues as an percentage of total revenues remained relatively stable at 33% in the fourth quarter of 2021, which compared with 33.6% in the fourth quarter of 2020. Our selling and marketing expenses were $13.3 million in the fourth quarter of 2021, compared with $7.6 million in the same period last year. The increase was mainly driven by HAIR advertising and marketing promotion expenses led by our continued user acquisition efforts and expanding product portfolio, partially offset by decreased share-based compensation expenses of $1.9 million during the fourth quarter of 2021, compared with $3.2 million in the fourth quarter of 2020. Extending share-based compensation expenses Selling and marketing expenses as a percentage of our total revenues increased from 9.2% in the fourth quarter of 2020 to 16.9% in the fourth quarter of 2021. Our general and administrative expenses were 8.1 million in the fourth quarter of 2021, compared with 11.3 million in the same period last year. The decrease was mainly driven by lower share base compensation expenses of $4.7 million recognized during the fourth quarter of 2021. A 46.4% decrease from $8.8 million in the fourth quarter of 2020, and partially offset by an increase in salaries and benefits for general and administrative staff. This, in turn, was driven by an expansion of our general and administrative staff Excluding share-based compensation expenses, general and administrative expenses as percentage of total revenues remain relatively stable at 5.1% in the fourth quarter of 2021, which compared with 5.4% in the fourth quarter of 2020. Our technology and the product development expenses were 3.9 million in the fourth quarter of 2021. compared with 1.6 million in the same period last year. The increase was mainly driven by an increase in salaries and benefits for our R&D development staff. As a result, excluding service compensation expenses, technology and product development expenses, a percentage of total revenues increased from 2.9 cents in the fourth quarter of 2020 to 5.3% in the same period of 2021. As such, our operating income was 18.3 million U.S. dollars in the fourth quarter of 2021, compared with operating income of 9.3 million U.S. dollars in the same period last year. Extruding share-based compensation, non-GAAP operating income in the fourth quarter of 2021 was 26.8 million U.S. dollars, a 13.2 percent improvement from same quarter last year. Our income tax expense was $0.79 million in the fourth quarter of 2021, compared with $0.33 million in the fourth quarter of 2020. Moving to the bottom line, our net income was $19.1 million in the fourth quarter of 2021, compared with net income of $9 million in the same period last year. If we share these compensation expenses, non-GAAP net income for the fourth quarter of 2021 was $27.6 million, an 18.2% improvement year over year. Next, I would like to briefly go through our liquidity and capital resources. As of December 31, 2021, we had cash and cash equivalents. of 351.5 million U.S. dollars as compared to cash and cash equivalents of 326.3 million U.S. dollars as of September 30, 2021. This improvement demonstrates our commitment to continue strengthening and refining Yala Group's operations. On May 21, 2021, we announced the 2021 share repurchase program as an update. We have repurchased 418,289 American depository shares, representing 418,289 classic ordinary shares from the open market with cash for an aggregate amount of approximately U.S. 3.1 million in the fourth quarter of 2021. For our 2021 four-year financial results, please refer to our earnings press release for further details. In the first quarter of 2022, we expect our revenues to be between 66 million US dollars to 69 million US dollars. The above outlook is based on the current market conditions and reflects the company's management's current and preliminary estimates of marketing and operating conditions and customer demand, which are all subject to change. This concludes our prepared remarks for today. Operator, we are now ready to take questions.

We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Our first question comes from Yulin Zhang with Haitong International. You may now go ahead.

Hey, hello. Thanks, management, for taking my question. Actually, I got three questions. Number one, could you please share more counter on the impact of the current geopolitical conflicts, such as the conflicts between Russia and the Ukraine? Number two, could you elaborate on other data about your new product pipeline and your expectations for the new APPs on the user front and the revenue front? The last one is about the launching. Could you help us understand the margin trend going forward, especially in this year, and your standing plan for this year? Thank you.

Good morning, Yilin. I will take the first two questions and leave the third one to Karen. For the first question, the geopolitical and micro situation, from a micro perspective, if you are talking about the the conflicts, it will certainly affect every economy in the world. Obviously, it will also aggravate market pessimism. At the same time, it will also affect, for example, the rise of energy prices. As an internet company, we can only passively accept these changes and make adjustments at the enterprise management level. according to the situation at the time. At present, Yala Group as an online social networking and entertainment community, the impact on us is limited. And for the question number two, for the product pipeline, I can give you a brief recap of our Yala ecosystem. We have our flagship applications, Yala and Yala Ludo, as well as our three casual games, Balut, 101 OK Yala, and Yala Patches. All three casual game products are now live and are undergoing version iteration, but they are still in the user accumulation phase and are not yet directly contributing to revenue. Revenue will be our focus in the next phase. Turning to our social apps, We have our AMP product, Yellowchat, for which we launched version 3.0.3. We will continue to work on product iteration for Yellowchat, and we expect to introduce the next version in Q2. Furthermore, we also recently launched our Metaverse social app, Waha. We hope our users will enjoy this more interactive way of socializing. It will take at least several months to around a year to test whether our users love it or not. That's sometimes our program with our social apps. One more thing to note, we also expect to distribute two mid-core to hardcore games in the MENA. The first one is the SLG game, and we launch as soon as May, as soon as we have updates beyond what we have just mentioned, we will share that information with our investors. And I will leave the question number three for Carol.

Okay, thank you, Yulin. And about the margin outlook question, I will demonstrate from the following angles. Actually, you can see from our past financial performance, we have been doing an excellent job when optimization YALA's monetization model and maintaining our strong monetization capabilities. For this year, we believe that our two flagship products will remain their strong monetization capability and provide solid cash flow support for the group's development. Also, as I just mentioned, we will be promoting and marketing testing several new products this year. Expenses in certain areas, such as R&D investment, branding, continuing product portfolio expansion, and talent recruitment, among others, will certainly put pressure on our profit this year. But we do not expect the impact to be very particularly significant. Our net margin in 2021 was over 45%. and we will expect that the expense I just listed will have only a single-digit percentage downward impact on our net margin. And this impact is entirely within our expectations, and it is something that we have to face in order to achieve further growth. Of course, there are specific or bigger moves if business needs a rise, so we don't want to rule out about that. However, with that said, I believe that when you compare with our peers, we will still maintain our net margin at a very competitive level. Hope I can answer your question. Thank you.

Thank you. That's very helpful.

Our next question comes from Shiki J with CICC. You may now go ahead.

Hi, thanks, management, for taking my question. Congrats on another steady and strong quarter. I may have four questions, and I'll ask them one by one. The first one is, where does the MedWorx product Waha stand in terms of its development phase? Could management share more about its functions, promotion plans, and especially its relationship with the Yala app?

Hi, Shiqi. Thank you for your question. This is Jeff. So as we mentioned in our remarks, we just launched our Metaverse product, Waha, a brand new independent app. Yala and Waha are two different, completely separate apps. We developed Waha based on our understanding that local users want a more interactive social approach, a more intuitive interface, and the possibility of personalized expression in the app. Our next step is to operate and promote Waha independency. so that users have a chance to further validate the product. In terms of a promotion strategy, we will continue to utilize the same traffic acquisition methods as we have in the past. In addition, we will increase our investment in branding based on what has unique product features. Thank you.

Thank you, Jeff. And my second question is, how comprehensive are Yala Chat's functions What are your major plans for its further development and promotion in your whole Yala ecosystem?

Hi, good morning, Shiqi. This is Tao Yang. I will answer this question. We have spent a lot of time developing Yalachat's product ecosystem and improving its stability. I believe Yalachat can now serve users' basic social needs in terms of interacting with each other timely and conveniently. Yalachat basic chat functions are already complete, and we will continue to improve other user-friendly features. In future iterations, we plan to roll out additional functions tailored to Arab culture and designed to fulfill Arabic users' unique needs. We may also add more entertainment content to Yalachat. We expect to introduce our next version in Q2 of this year, And we look forward to sharing more updates on our progress with our investors soon. Thank you, Shijie.

Thank you. And my third question is, as the group's user growth slows down, will there be any changes to the strategy of Yala and Yala Ludo? What roles should we expect them to play in your future developments?

Hi, Siqi. This is a very good question. Actually, as you can see, our MAUs grew very rapidly last year at around 10% to 15% quarter-over-quarter. But as our user base gets larger, we believe that 8% to 10% quarter-over-quarter MAU growth this year is a relatively reasonable number. Yella and Noodle will continue to be important parts of our Yella ecosystem, as they have already been tested and validated by both the local market and Time. We believe these two products have a long time long life cycle with enduring vitality and plenty of potential for further growth. We anticipate that their user base will continue to expand and they will maintain their leading positions in the industry. Thank you, Shixi.

And the last question is, how should we expect the trend of growth margin as Yala adds more new social and game products? Thank you.

Thank you, Shixi. Our current product mix including highly differentiated products targeting different regions. At the same time, each product plays a different role in our product ecosystem. For example, YalaChat is important to help enlarge our user base, while mid-core to hardcore games will be more profit-driven. Therefore, the monetization models of different products are totally different. At this point, it is still difficult to judge the trend of gross profit margin and the net profit margin in the development of new products. If you want to analyze our cost structure, historically, the number has been very stable, with commissions for the third-party payment channels, such as Apple and Google, which accounting for the largest proportion. and technical service fees, et cetera. Generally speaking, our quarterly gross profit margin remains about 65%. And I think we can maintain this level with addition of new products. As for net margin, it may influence our sales and marketing and IMD expenses. As we just mentioned, these are related to our marketing strategies and product metrics and can be very flexible. Thank you.

Thank you. That will be all. Thank you.

Thank you. Our next question comes from Kai Fang with CIPIC. You may now go ahead.

OK. Thank you for taking my question. And I have two questions. The first is about our user growth. So what is our strategy on user growth in 2022? More positive or not? And my second question is about our monetization. So can management share the monetization timetable of our new products? And will they generate meaningful revenue in 2022? Thanks.

Hi, Kaifeng. This is Jeff. I'll be answering your first question. So for the past quarters, we have proved our strong capabilities in expanding our user base. And every quarter, we were able to maintain a growth of around 10% in our MAU. And according to what we have observed at the beginning of 2022, we saw a similar trend as we walk into Q1. In terms of market capacity, our two flagship products have not yet reached their user acquisition selling. And we will continue to invest to further tap user potential in those core areas From a product perspective, we plan to launch multiple new products. We will also dynamically adjust our marketing direction and budget based on product performance to maximize user growth. We hope to create a more active, larger Yala community as a group level and build more valuable user engagement. As traffic cost continues to increase worldwide and given that we have a growing number of products to launch and promote this year, we expect to increase our sales and marketing budget We are also adjusting our marketing strategy to improve efficiency. We will expand our marketing investment in Gulf countries to better penetrate users here, and at the same time, we will seize each and every opportunity to gain users in Pan Arab region too. This will help us improve the efficiency of our user acquisition plan. Furthermore, in addition to buying traffic directly from Facebook and Google, we are also exploring new sales and marketing channels which may help us reduce our marketing expenses in the future. While increasing traffic costs is an issue for all companies, but as a leader in MENA's digital internet market, YANA enjoys the first mover advantages, and we believe that as we continue to optimize our marketing strategy, we will be able to solidify and strengthen our leading position in the market. Thank you.

Hi, good morning, Kaifeng. For the second question I will be answering, for all of our new entertainment and social networking apps, as well as our community-based board and card games, there is always a user accumulation stage. We will focus more on user growth and community operations this year. Monetization is something we will consider during the next stage. If our meat and hardcore games perform well in their targeted countries, then we believe they will be able to generate revenue relatively quickly this year, given the monetization pattern of meat and hardcore games. I hope I can answer your question good. Thank you.

Okay, thank you. That's very helpful.

Our last question comes from Zemin with Southwest. You may now go ahead.

Okay, thank you. Thanks management for taking my question. Also for the outstanding growth and performance, I have two questions for the product about Yala and other growth statistics. This is the first question. How is Yala's middle platform coming along? Any plans for driving traffic from one business to another? And this is the question, too. Could you please share updates on Yala's active users, daily active users, average time spent? How often do Yala chat users open the app per day? Thank you. Thank you, Jimmy.

I will be answering these two questions. In terms of our, the first question is about the media platform. In terms of our media platform, we now have various products. we have organized different teams specializing in various technical and data solutions, et cetera, to serve all the product teams. In this way, we are able to improve the efficiency with which we develop new products. At the same time, sharing data among the different product teams helps us learn more effectively about our users. But of course, we don't want to compromise on flexibility. flexibility. Different products have their own characteristics. And sometimes the shared middle platform may not be able to design the best solution for each individual app. So we evaluate the situation and decide whether or not the middle platform is the most suitable means to develop a certain aspect of any product. In addition, we have also noticed that some internet companies have started to remove their company's media platform. We have always been keen to follow the industry's best and most scientific practices and aim to continue to optimize the Yela's organizational structure. Regarding driving traffic from one app to another, yes, we have been planning this for a long time, and we have already completed the preparation work within our different apps. As we launch and promote our new products this year, you will start to see, for example, entrances in Yala Ludo to our new SLG game, or from Yala to our Metaverse social app, Waha. This is an important move to boost synergies among the Yala ecosystem. that we will definitely be leveraging the existing user communities that we have built over the past five years. And for the second question about the daily average time spent, at the time of our IPO, we shared that the daily average time spent on Yela app was 4.5 hours. And now it has exceeded five hours. So we think this is already at a very impressive level. And everyone knows there are only 24 hours in a day. We don't want to give you aggressive expectation on the further growth of this metric. And in terms of your question regarding yellow chat, we will share those metrics with you after we officially launched Yellowchat this year, as the magic at that time may be more meaningful and can be a better reference for you. Thank you. Thank you, Jimmy.

Thank you.

As there are no further questions, now I'd like to turn the call back over to management for closing remarks.

Thank you once again for joining us today. We look forward to speaking with you in the next quarter. If you have any further questions, please feel free to contact Yalas Investor Relations through the contact information provided on our website or the PS&A Group Investor Relations. Thank you.