Yalla Group Limited

Good morning and good evening, ladies and gentlemen. Thank you for standing by for YALIC Group Limited's third group quarter 2025 earnings conference call. At this time, all participants are in 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 turn the call over to your speaker host today, Ms. Carrie Yao, IR Director of the company. Please go ahead, ma'am.

Hello, everyone, and welcome to YALA's Third Quarter 2025 Earnings Congress Call. We issued our earnings press release earlier today, and it is now available on our IR website as well as on Newswell outlets. Before we continue, please note that the discussion today will contain forward-looking statements made under the state proper provision of the U.S. Private Security 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 press 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 its conference call include a discussion of unaudited gas financial information, as well as unaudited non-GAAP financial measures. Yalan'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. Taoyang, our chairman and chief executive officer, who will provide an overview of our latest achievements and growth strategies. He will be followed by Mr. Sai-Fing Ma-Yu, the company's president, who will briefly review our recent business 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 the call to questions. Mr. Jeff Xu, our Chief Operating Officer, will join the Q&A session. With that said, I would now like to turn the call over to our Chairman and Chief Executive Officer, Mr. Tom Young. Please go ahead, sir.

Thank you, everyone, for joining our third quarter 2025 Learning and Conference Call. we delivered another strong set of results in the third quarter of 2025. Our total revenue grew to 89.6 million USD, once again beating the high end of our guidance. Net margin came in at 45.4%, up 1.4 percentage points year-over-year, thanks to continued operational efficiency improvement and our commitment to high-quality growth. The Middle East's digital economy continues to gain momentum in the third quarter, according to New Zealand's latest report. The region's gaming market is expected to reach around 7.1 billion USD in 2025, with 75% in the early years growth, the highest among all regions globally. The increases we are seeing in the number of our modern users and their interests, including more diverse game content, reflects the media gaming market's vast potential. Our strategic direction presages us to capture the trend and foster a more mature, more robust digital entertainment ecosystem across the region. Meanwhile, we are also looking for opportunities to leverage our varied and growing product portfolio to deliver more exceptional experiences to many users. Our strategy game pipeline currently serves as our primary market expansion driver. In the third quarter, we soft launch TurboMatch, a match free title featuring car modification, simulation, operations on Android. we were pleased to see its initial user acquisition and retention metrics meeting our expectations. With two years of accumulated experience in the Match 3 game, we are confident in our team's ability to create games that resonate deeply with our target audience. Furthermore, we expect to relaunch our self-developed robot game, Boom Survivor, late this month. Meanwhile, we continue to advance our game distribution initiative. We are collaborating with a leading gaming studio on the distribution of New Eats 4K SLG title. This hardcore title is well on track for a year-end launch for the recent testing. We remain dedicated to providing MENA users with an ever-growing selection of gaming content tailored to MENA's local culture. For our future MENA and hardcore game collaborations, we will continue to leverage our existing gaming user base for precise targeting and efficient conversion to steadily deepen penetration of MENA and hardcore game market. Moving on to our AI initiative. We are proactively developing AI tools to fuel our goals. Led by Siemens, our in-house developed multimodal AI model. Siemens is now fully deployed across our product line, serving as the intelligence backbone of our content moderation and security. Supported by our experienced R&D games and extensive Arabic language and visual data sets, Siemens delivered leading accuracy in analyzing text and images and detecting inappropriate content. Another self-developed AI tool, our automated creative testing model, has significantly improved advertising and user acquisition efficiency. Furthermore, our in-house AI event orchestration engine has doubled the frequency of modular in-app campaigns for our flagship products, including Yalaluya, driving a leap in operational efficiency. Together, these technological breakthroughs have elevated user experience and boosted in-app purchases, serving as a powerful driver for revenue growth. Next, an update on our 150 million USD shareholder return program, which we continue to execute in this plan. As of November 7, 2025, the company has repurchased a total of more than 7.7 million ADS or Class A ordering shares totaling 51.9 million USD. achieving our full year 2025 repurchase commitment of 50 million USD while ahead of schedule. As we mentioned on our last call, we will cancel all shares repurchased in 2025. And we have canceled a total of more than 6.2 million shares as of August 11th. We aggregate value remaining available for purchase under the current share repurchase program with 48.6 million USD as of November the 10th. For next year, we expect to maintain a similar level of share repurchases as in 2025. We are on track to complete our current 150 million USD share repurchase program within the next year, at which point we plan to launch a new program. As always, I want to emphasize that we will continue to place shareholder interest at the core of our capital allocation decisions and optimize our shareholder return strategy to generate long-term value for our shareholders. Last but not least, I'm happy to share that Yala Group celebrated the fifth anniversary of its public listing at the end of September, capped by a bell-ringing ceremony at the Nevada TV. These past five years have been an incredible journey, one of growth, learning, persistence, and achievement. Yela is now the largest media-based online social networking and gaming company. We are proud of the leading position we've established in this dynamic market, but our journey is far from over. Looking ahead, we will remain dedicated to maximizing the Synergy between our social and gaming ecosystem and enhancing our AI through technological age, bringing us ever closer to our vision of becoming the most popular platform for online social networking and entertainment activities in MENA. Now I will turn this call over to our president, Saifi Ismayu, for a closer look at our recent development.