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spk01: Good morning and good evening, ladies and gentlemen. Thank you for standing by for YALA Group Limited Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. Now I will hand the conference over to your speaker host today, Ms. Kerry Gow. IR director of the company. Please go ahead, ma'am.
spk00: Hello, everyone, and welcome to YALA's second quarter 2022 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 note that the discussion today will contain forward-looking statements. made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. 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 annual report filed with the 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 GAAP financial information as well as unaudited non-GAAP 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. Sathith Mayu, the company's president, who will briefly review 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 Q&A 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.
spk01: This is the conference operator. We have temporarily lost connection with the speaker line. Please continue to hold, and the conference will recommence shortly.
spk02: Thank you, everyone, for joining our second quarter 2022 earnings conference call. We are pleased to have delivered another strong quarter with revenue of 76.1 million USD, exceeding the higher end of our guidance by 8.7%. This represents a second consecutive quarter of record high revenue for the company. despite the lambda and hotline. Such robust quarterly results are a testament to our operational success in refining our processes, enhancing the gamification of our flagship applications, and optimizing user acquisition. Together, these actions have holistically elevated our user experience, further boosting Yala's and Yala Ludo's user engagement and users' willingness to pay on our platforms. In short, our core strategy and operational improvements are effective, and their positive impact is growing. We recently celebrated the sixth anniversary of Yala, our group's first product, and a pioneering application designed to mirror, preserve, and nurture MENA's unique social traditions in the digital era. Time has flown by as we have deepened our commitment to MENA, its people, and its culture, conceiving new products to meet MENA users' evolving needs and facilitating digitalization throughout this region over the past half-decade. As a tech industry leader in MENA, we will continue to expand our services and stretch the boundaries of our business while further deepening synergies among our different products and services to create brand loyalty among users. Now let's take a closer look at our new product updates. Enjoying on our industry-leading experience in social entertainment in MENA, Yala is now exploring the mythical and hardcore game distribution business to complement our casual games possible. We have already invited in two gaming studios through Yala Game Limited, and working with them on the musical and Apple mobile games that we will distribute in MENA. We're also open to additional good gaming content and potential collaborators with whom we can further explore the MENA market. Beyond that, as an important part of our group's strategy, We are actively looking for opportunities to broaden Yala's ecosystem flexibly and efficiently. We look forward to sharing more updates on potential opportunities with our investors in the near future. We're also very excited to share that we recently launched the YalaChat version 1.1 with a number of important new features. First, I'd like to highlight the Athena feature, a unique innovation tailored to Arabic user traditions and customs. Since praying plays a significant role in Arabic users' daily lives, we created the item feature to enable users to receive reminders for daily prayers. Instant message products are an integral, intimate part of users' daily lives. Thus, we believe targeted hyper-localization of IM products is a necessity. The AdSense feature demonstrates our team's close attentiveness and insight into Mina users' needs, as well as our dedication to bring Mina users a truly customized experience. AdSense is just one of many localized features and their development. We will roll out additional updates in future iterations based on our team's deep understanding of Mina users and this unique market. As we shared last quarter, we're building Yala Chat with a unified login system, which will allow users to log into any products within the Yala Groups using their Yala Chat account. We began upgrading Yala Live last quarter to be compatible with this system, and recently commenced Yala Ludo's upgrade as well. We expect this enhancement to motivate more Yala Ludo users to register for Yala Chat accounts. In addition, We have set up convenient links within these apps, empowering users to explore Yala chat functions with a single click. We see these as an important step to boost product synergies and increase users' loyalty and stickiness to Yala Group's products. As we reported last quarter, WAHA, which represents a significant milestone in Yala Group's metaverse application explorations, is the first ever social metaverse designed for the MENA region. During the second quarter, our team upgraded the product system and the foundation of the app to better prepare the product for future opportunities, including merging with new technologies related to the metaverse, enabling more UGC interactions and supporting a larger user community. As to metaverse, we are focused on analyzing the potential applications and services that the current available technologies can support while also closely monitoring industry trends. We firmly believe in the tremendous potential of the future Metaverse, although it will take time for both hardware and software to develop and reach maturity as a full-fledged Metaverse, but participating in the initial development phase of the Metaverse while building our capabilities and positioning ourselves to capture the metaverse's boundless future possibilities. Before I conclude, I have one more important update to share. It is my honor to welcome Mr. Mohamed Elganim to the board as an independent director and a member of our nominating and corporate governance committee. Mr. Elganim is a renowned telecommunication expert with an extensive regulatory background. He is a founder and ex-director general of the UAE Telecommunications and Digital Government Regulatory Authority, the TDRA. I believe Mr. O'Gannon will bring unique and valuable perspectives to Yala. We are excited to have him, to have him join our board.
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