Yalla Group (YALA) 2026年第二季度业绩电话会议：游戏收入增长11.6%，第三季度业绩指引

核心要点

• 雅乐集团（Yalla Group Limited，YALA）公布2026年第二季度营收为8260万美元，高于管理层指引区间的上限，但低于上年同期的8460万美元。
• 游戏服务营收同比增长11.6%至3420万美元，占总营收的比重提升至41.4%。
• 尽管销售与营销费用同比增长超一倍，Non-GAAP净利润仍达到3440万美元，Non-GAAP净利率为41.7%。
• 平均月活跃用户数（MAU）达到4760万，同比增长12.3%。管理层预计第三季度MAU将恢复环比增长。
• 管理层指引2026年第三季度营收为7800万美元至8500万美元，并维持全年的营收预期，即与2025年大致持平。
• 截至季度末，现金、受限资金、定期存款及短期投资合计为8.242亿美元。雅乐继续执行新获批的最高1.5亿美元股票回购计划。

关键财务数据

业务与运营表现

平均月活跃用户数（MAU）同比增长12.3%至4760万。较第一季度的环比下降反映出斋月高活跃期过后的正常回落，遵循了与上年相似的规律。

Yalla Ludo在该季度实现环比复苏。嘉年华第6赛季（Carnival Season 6）及新推出的Yalla Season活动促进了用户参与度、付费用户增长和变现能力。雅乐十周年系列活动也提升了忠实用户的参与度和消费。

雅乐自研的三消游戏《Turbo Match》在中东及北非（MENA）、美国和欧洲保持了良好的获客和留存趋势。管理层计划在2026年下半年扩大商业化规模及全球扩张。

对于其沙漠题材的SLG游戏，雅乐完成了与Yalla Ludo的首次联合推广活动。公司正在准备一次重大更新，包含新增玩法、界面优化和变现机制优化。在计划于第四季度发布及随后展开推广之前，第三季度的获客支出可能会有所放缓。

雅乐还在开发多款休闲及超休闲游戏，旨在支持2027年和2028年的增长。其发行业务策略仍专注于将全球合作伙伴的优质游戏内容引入MENA地区。

公司已将AI辅助编码融入其开发工作流中。公司还推出了一个基于AI的自研系统，可通过自动化测试生成三消关卡并评估难度。管理层表示，该系统缩短了开发周期，降低了研发成本，并能使游戏内容更好地匹配玩家的技能水平。

管理层业绩指引

基于当前市场状况、运营假设和客户需求，管理层预计2026年第三季度营收为7800万美元至8500万美元。

对于2026年全年，公司继续预计营收将与2025年大致持平。管理层预计核心业务营收将小幅下降，但会被新游戏的贡献所抵消。

预计下半年的成本和费用将与上半年水平保持大致相当。管理层认为全年GAAP净利率有望保持在30%左右。

如果新产品获得特别强烈的市场反响，这些假设可能会发生变化。届时，雅乐可能会增加获客投资以争取更大的市场份额。

风险与关注要点

• 管理层将营收同比下降部分归因于大中东地区近期地缘政治事件发生后付费用户数量有所减少。
• 由于雅乐加大在获客和新游戏推广方面的投资，销售与营销费用同比增长106%。
• 新游戏带来贡献的时间和规模仍取决于商业化推进、产品更新、留存率及变现能力。
• 如果新产品产生强劲需求，高于计划的获客支出可能会对利润率造成压力。

分析师问答集锦

新游戏商业化：管理层计划在下半年推进《Turbo Match》在美国和欧洲的扩张。沙漠题材SLG游戏正在为第四季度的重大更新做准备，在此之前获客活动可能会有所放缓。

资本配置：雅乐在上半年斥资2760万美元回购了440万股ADS或A类普通股，其中包括在第二季度斥资约1800万美元回购的290万股。截至2026年8月14日，公司已注销1270万股股票。管理层还在继续评估战略合作伙伴关系以及对研发团队的潜在投资或收购。

游戏增长战略：雅乐将把自研游戏与外部代理发行合作结合起来。管理层强调了其在三消领域的研发实力、不断拓展的休闲游戏产品线以及在MENA地区的本地化专业优势。

第二季度业绩驱动因素：管理层将营收超出其指引区间主要归因于旗舰产品的反弹，包括Yalla和Yalla Ludo参与度和变现能力的提升。新游戏的贡献符合公司的预期。

业绩电话会议完整文字记录

完整财报电话会议逐字稿

管理层陈述

Operator

Good morning, and good evening, ladies and gentlemen. Thank you for standing by for Yalla Group Limited Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. Now I will turn the call over to your speaker host today, Ms. Kerry Gao, IR Director of the company. Please go ahead, ma'am.

Yuwei Gao

Hello, everyone, and welcome to Yalla's Second Quarter 2026 Earnings Conference Call. We issued our earnings press release earlier today, and it is now available on our IR website as well as on newswire outlets.

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 are -- sorry, is included in our earnings release and our annual report filed with the SEC. Yalla does not assume any obligation to update any forward-looking statements, except as required by law.

Please also note that Yalla's earnings press release and this conference call include a discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Yalla's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

Today, we'll hear from Mr. Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our latest achievements and growth strategies. He will be followed by Mr. Saifi Ismail, 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. Tao Yang. Please go ahead, sir.

Tao Yang

Thank you, everyone, for joining our second quarter 2026 earnings conference call. We delivered a solid performance across our flagship products and growing momentum in our gaming business in the second quarter. Our revenues were USD 82.6 million, exceeding the upper end of our guidance, with revenues from games services growing by 11.6% year-over-year to USD 34.2 million. Non-GAAP net margin remained healthy at 41.7%, even as we doubled our selling and marketing expenses year-over-year to support the promotion of new games amid evolving regional environment. These results highlight both our effective strategy and strong business resilience.

Our gaming business continued to make meaningful progress during the quarter with new core games advancing smoothly and a clear growth road map taking shape for their next stage of development. Our first self-developed match-3 title, Turbo Match, continued to expand its user base and maintain a healthy user retention trend, not only in MENA but also in the U.S. and Europe this quarter. Notably, in mid-July, Turbo Match was featured by the Apple App Store in MENA markets such as Saudi Arabia, underscoring the product's high quality and further enhancing its market visibility. In the second half of this year, we will focus on scaling up product commercialization, further unlocking growth opportunities across high potential global markets and accelerating our global expansion.

For our desert-themed SLG title, we executed a paced launch in the first 2 months of this quarter to drive traffic, gradually ramping up user acquisition spending. Meanwhile, we completed a successful co-promotion campaign between this title and our flagship title, Yalla Ludo. We are currently working on the next major version update, which will feature richer gameplay content and other enhancements targeting deeper user engagement and improved conversion and monetization.

Regarding user acquisition, our near-term priority is to maintain our current scale and momentum while preparing for the next major user acquisition campaign once the new version is released. As these products gain traction, we continue to build our long-term growth strategy around the synergy between our social and gaming ecosystem. We remain dedicated to enriching our product portfolios with several self-developed products in our pipeline, spanning casual games, hyper-casual games, social products and AI applications.

We also keep a close eye on outstanding teams and products to strengthen our game distribution business and remain engaged with top-tier global game developers to explore potential opportunities for collaboration. I want to emphasize here that our focus is on new growth opportunities across MENA with a longer term eye on the wider global marketplace.

To drive product innovation, we have accelerated the adoption of cutting-edge technologies across our R&D process. Notably, in the second quarter, we -- our team deepened the integration of AI-assisted programming into our game development flow. And we launched a proprietary AI model-based system for match-3 level generation and difficulty evaluation. This initiative has significantly enhanced our game development efficiency by accelerating level design iteration and consistently provides users with more exciting, more engaging experiences. We will continue to invest in technology that boost R&D efficiency to accelerate iteration across our product ecosystem.

During the quarter, we continued to deliver on our shareholder return commitment under the company's 2 share repurchase programs launched in 2021 and 2026. The company repurchased 4.4 million ADS or Class A ordinary shares for USD 27.6 million in the first half of this year, of which 2.9 million shares were repurchased during the second quarter for approximately USD 18 million. Our 2021 program expired on May 21, 2026, and we repurchased a total of USD 126.5 million under this program. We will continue to execute our newly authorized 2026 program of up to USD 150 million over the 20 months starting from March 9, 2026.

Additionally, the company has canceled 12.7 million ADS or Class A ordinary shares as of August 14, 2026. This consistent shareholder return commitment reflects our confidence in the company's long-term growth prospects underpinned by our robust cash flow generation and profitability. We consistently place shareholder interest at the core of our capital allocation decisions, striking a dynamic balance between pursuing long-term business growth and maximizing shareholder value.

Looking ahead, we will continue to deepen the synergy between our social and gaming ecosystems while embedding AI at the core of our technology infrastructure to drive long-term competitiveness. Building on years of deep-rooted expertise in MENA, we will continue to unlock local opportunities while pursuing strategic partnerships to expand into new markets globally. We remain confident in our ability to drive sustainable growth and create lasting value for our shareholders.

Now I will turn this call over to our President, Saifi Ismail. Saifi, please go ahead.

Saifi Ismail

Hello, everyone. Thanks for joining us today. Let's take a closer look at our second quarter operations and product performance. In the second quarter, our average MAUs reached 47.6 million, an increase of 12.3% year-over-year and an expected sequential moderation from Ramadan's exceptionally high levels in the first quarter, following a pattern similar to last year. From a broader trend, respective user engagement across our core products remain solid. With a strong pipeline of operational campaigns, we anticipate continued sequential MAU growth to resume in quarter 3.

On the operations front, I would like to highlight Yalla Ludo's solid quarter through performance, a clear recovery from quarter 1. This quarter, we continue to advance Yalla Ludo's iterations and further strengthen user engagement, driving a sequential rebound in paying users growth. Yalla Ludo Carnival Season 6 extended the success of previous seasons, highlighting its strong user traction and monetization impact. Building on this momentum, we launched the Yalla Season series, a new long-term operational campaign focused on strengthening user engagement, featuring an innovative range of sub-events. Yalla Season is boosting the boundaries of what social entertainment within games can look like.

Moreover, our brand anniversary celebration and community engagement initiatives were the highlights of the quarter. To mark the tenth anniversary of our flagship product, Yalla, we launched an array of locally resonant online campaigns featuring a strong sense of occasions tailored to Middle Eastern culture. Over the past decade, our deep-rooted presence and commitment to MENA have established Yalla as an integral part of local users' everyday lives, creating meaningful emotional connection within the community. Our tenth anniversary initiatives drove significant engagement and strong willingness to spend among our loyal high-level user.

We also continue to expand our regional presence through collaboration with local authorities. In the second quarter, we were honored to serve as the official event partner of Saudi eLeague 2026 and the presenting partner of Yalla Saudi eLeague Women 2026, playing an active role throughout the season. During SEL's live Championship Festival Finals held from May 1 to June 6, Yalla Group operated an activation zone at SEF Arena, showcasing diverse products and engaging deeply with visitors through immersive on-site activities. Our sponsorship and support of this top-tier regional esports event meaningfully strengthened our connection with younger generations of local users, reinforcing our leadership in MENA's digital entertainment market.

In the later part of the second quarter, we capitalized on the excitement surrounding the global World Cup with interactive soccer-themed campaigns featuring integrated sports and social experiences, such as customized event gifts and team chatrooms. These localized innovations significantly enhanced users' community engagement and enthusiasm for content creation. Beyond driving higher yield time interaction levels within chatrooms, they also translated into stronger user engagement and monetization results for relevant products during the second quarter. Looking ahead, we remain committed to serving the diverse needs of users across the MENA region with a growing product portfolio drawing on the local knowledge we have spent years accumulating to drive high-quality growth.

With that, I will now turn the call over to our CFO, Karen, who will discuss our key financial and operational results.

Yang Hu

Thank you, Saifi, and hello, everyone. Thank you for joining us today. In the second quarter, we continue to pursue high-quality development while maintaining solid profitability. Our revenues reached USD 82.6 million, with revenues from games services growing by 11.6% year-over-year to USD 34.2 million and the segment's contribution to total revenues increasing to 41.4%. We continue to enhance our overall efficiency and maintain healthy margins. Though we doubled our selling and marketing expenses year-over-year to support the promotion of new business, our non-GAAP net margin stayed healthy at 41.7%.

With a robust balance sheet and cash flow, we will -- we are well positioned to invest in business expansion and existing shareholder returns. We remain committed to investing in the company's long-term growth while continuously enhancing shareholder value.

Let's move on to our detailed financials for the second quarter of 2026. Our revenues were USD 82.6 million in the second quarter of 2026 compared with USD 84.6 million in the same period of last year, primarily due to a decrease in paying users attributable to the impact of recent geopolitical events in the broader region, partially offset by an increase in revenues from games services.

Turning to the costs and expenses. Our cost of revenues was USD 26.8 million in the second quarter of 2026, a 4.1% decrease from USD 27.9 million in the same period of last year, primarily due to lower commission fees paid to third-party payment platforms. Cost of revenues as a percentage of total revenues decreased to 32.4% in the second quarter of 2026 from 33% in the same period of last year.

Our selling and marketing expenses were USD 17.8 million in the second quarter of 2026, a 106% increase from $8.7 million in the same period of last year, primarily due to higher advertising and marketing promotion expenses attributable to the company's continued user acquisition efforts and support for new games. Selling and marketing expenses as a percentage of total revenues increased to 21.6% in the second quarter of 2026 from 10.2% in the same period of last year.

General and administrative expenses were USD 8.6 million in the second quarter of 2026, a 4% decrease from USD 9 million in the same period of last year, primarily due to a decrease in the incentive compensation, partially offset by an increase in foreign exchange loss. GA expenses as a percentage of total revenues slightly decreased to 10.5% in the second quarter of 2026 from 10.6% in the same period of last year.

Technology and product development expenses were USD 9.9 million in the second quarter of 2026, an 18.9% increase from USD 8.3 million in the same period of last year, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in headcount to support the development of new businesses and our product portfolio expansion. R&D expenses as a percentage of total revenues increased to 12% in the second quarter of 2026 from 9.9% in the same period of last year.

As a result, our operating income was USD 19.4 million in the second quarter of 2026 compared with USD 30.6 million in the same period of last year. Non-GAAP operating income in the second quarter of 2026 was USD 24.5 million compared with USD 33.5 million in the second quarter of 2025. Investment income was USD 5.1 million in the second quarter of 2026 compared with USD 0.02 million in the second quarter of 2025, primarily due to changes in the fair value of wealth management products.

Income tax expense was USD 0.6 million in the second quarter of 2026 compared with USD 1.5 million in the second quarter of 2025. As a result of the foregoing, our net income was USD 29.3 million in the second quarter of 2026 compared with USD 36.5 million in the second quarter of 2025. Non-GAAP net income in the second quarter of 2026 was USD 34.4 million compared with USD 39.4 million in the second quarter of 2025.

Moving to our liquidity and capital resources. Our cash position remains solid and healthy. As of June 30, 2026, the company had cash and cash equivalents, restricted cash, term deposits and short-term investments of USD 824.2 million compared with USD 754.6 million as of December 31, 2025.

Moving to our outlook. For the third quarter of 2026, we expect our revenues to be between USD 78 million and USD 85 million. The above outlook is based on current market conditions and reflects the company's management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. In the interest of time, please refer to our earnings press release for further details on the second quarter of 2026 financial results.

This concludes our prepared remarks for today. Operator, we are now ready to change -- take questions. Thank you.

Operator

[Operator Instructions] Our first question is going to come from the line of Xueqing Zhang with CICC.

分析师问答

Xueqing Zhang

My question about your new games. Can management share the latest progress of the core new games along with the operational and go-to-market plans for the next few quarters?

Jianfeng Xu

Thank you, Xueqing, for your question. Currently, our core new products are progressing at different paces with each title following its own development and commercialization time line. For Turbo Match, our self-developed match-3 title targeting global markets, we maintained healthy user acquisition and retention trends in the second quarter. Looking ahead to the second half of the year, we will focus on scaling up its commercialization and accelerating its global expansion, including the U.S. and Europe.

Regarding our desert-themed SLG title, we completed the co-promotion with Yalla Ludo in the second quarter to drive initial user acquisition during the early stage of the launch. We are now focusing on the next major version update, which will feature richer gameplay content and optimized monetization.

One important upgrade will be from our content provider, which intends to further increase its investment in the game's comprehensive UI to provide users with a better aesthetic experience. Our user acquisition may slow down in Q3 before the Q4 release, as we strategically prepare to deliver momentum for the next round of the user acquisition campaign. Thank you.

Operator

Our next question will come from the line of Chloe Wei with CICC.

Meng Wei

So my question is about the capital allocation. With our net cash reserves exceeding $800 million, could management provide more color on the current cash flow conversion efficiency and also the strategic priorities for capital allocation going forward?

Yang Hu

Chloe, this is Karen. I will answer this question. Regarding our cash allocation, we have always been committed to maximizing shareholder value. In March, the company announced a newly authorized 2-year share repurchase program of up to USD 150 million, and we remain committed to execute -- executing our shareholder return program.

Moreover, our ample cash reserves provide us with significant strategic financial flexibility. As we deepen our local advantages in the MENA region, we are evaluating strategic partnership opportunities and potential investments in -- or acquisition of top-tier R&D teams while further expanding our product pipeline and accelerating our penetration into overseas markets. Going forward, Yalla will continue to explore more high-quality growth opportunities and enhance shareholder value through disciplined capital allocation. Thank you.

Operator

Our next question comes from the line of Tianhao Liu with CITIC.

Tianhao Liu

So let's turn to gaming. For in-house game development and the expansion of external partnerships, what are the growth opportunities and the strategic outlook?

Jianfeng Xu

Thank you for the question. In the second quarter, revenues from our games services grew 11.6% year-over-year to USD 34.2 million, demonstrating solid growth momentum. Looking ahead, we will continue to execute our strategy that pairs in-house game development with external distribution partnerships.

For self-developed games, we are steadily growing our team and attracting the experienced product and publishing professionals to join us. We've built a highly skilled team for match-3 games, positioning us to continue strengthening our presence in this category. We're exploring new growth opportunities. Meanwhile, we have been actively enriching our product portfolio. Since the end of last year, we have internally initiated the development of multiple new products across casual games and hyper-casual games, laying the foundation for growth in 2027 and 2028.

For game distribution partnerships, we continue to seek high-quality partners globally to bring more high-quality hardcore gaming contents to MENA. We'll share further updates with the markets when appropriate. Overall, we are confident that our deep MENA localization expertise, diversified self-developed product pipeline and collaborations with top-tier teams will further unlock growth potential for our gaming business. Thank you.

Operator

Our next question is going to come from the line of Rachel Wang with Haitong International.

Rachel Wang

Congratulations on a solid quarter. And my question is that in the second quarter, the company's performance exceeded the upper end of its guidance. And so could management share what are the key drivers behind this strong performance?

Saifi Ismail

Thank you, Rachel, for your question. Our second quarter results beat the high end of our guidance mainly driven by the rebound of our flagship products, which validated the exceptionally strong user stickiness and sustainable resilience of our core products, while our new games contribution is in line with our expectations. In our social ecosystem, as part of Yalla's 10th anniversary celebration, we launched an array of operations and engagement activities deeply rooted in local culture. These initiatives significantly enhance interactions among our loyal users and their willingness to pay, driving strong growth in our social network business.

In our gaming ecosystem, Yalla Ludo achieved a strong sequential recovery in the second quarter, building on the success of Yalla Ludo Carnival Season 6. We launched the Yalla Season series, a new long-term engagement operational campaign. Through diverse engaging social interaction initiatives, we significantly enhance user engagement and monetization conversion. And going forward, centered around local user needs, we will continue to optimize our operation, further solidifying our flagship products as a core revenue contributor for the company. Thank you.

Operator

Our next question comes from the line of Lincoln Kong with GS.

Lincoln Kong

My question is about AI. So could you provide more color how AI technology is applied in company's product R&D and daily operations?

Tao Yang

Thank you for your question, Lincoln. This is Tao. Let me answer this question. In the second quarter, we accelerated the application of cutting-edge technologies in our R&D process, deeply integrating AI into the core of our technology infrastructure. Especially, our tech team has integrated AI-assisted coding into our development workflow. Meanwhile, for match-3 titles and a few other games, we successfully launched a proprietary AI-model-based system for newer generation and difficulty evaluation.

In practice, the system can rapidly generate high-quality levels at scale and use AI-powered automated testing to accurately evaluate level completion probabilities. For example, it can quickly identify simple levels with a 100% completion rate or highly challenging levels with only a 17% completion rate. This innovation has significantly shortened the cycle time for the level design and version iterations while reducing R&D costs.

More importantly, it enabled us to dynamically deliver levels that better match players' preferences and skill levels, significantly improving the player experience and effectively optimizing user retention and long-term stickiness. Going forward, we will further increase our investment in both productivity empowerment and user experience, leveraging AI technology to strengthen the long-term competitiveness of our entire product ecosystem. Thank you, Lincoln.

Operator

Our next question comes from the line of Jenny Yuan with UBS.

Yicheng Yuan

Could you please share an update on the company's latest shareholder return initiatives, including progress of the shareholder share repurchase program and the priorities for future capital allocation?

Yang Hu

Thank you, Jenny. This is Karen. We consistently place shareholder interest at the core of our capital allocation decisions. In the first half of this year, the company repurchased a total of approximately 4.3 million shares under our 2021 and 2026 share repurchase programs, totaling around USD 27.6 million. Our 2021 program expired on May 2026, and we repurchased a total of USD 126.5 million under this program. Moving forward, we will continue to execute our new 2026 program with an authorization of up to USD 150 million.

Moreover, as of August 14, 2026, the company has canceled a total of 12.7 million repurchased shares. Again, we will remain focused on disciplined capital allocation, invest in long-term growth while maximizing shareholder value. I hope that answers your question.

Operator

Our next question comes from the line of Rachel Guo with Nomura.

Rachel Guo

Given the better expected performance in the second quarter, could management provide the guidance of the company's revenue trend and margin outlook for the second half of 2026?

Yang Hu

Thank you, Rachel. Thank you for your question. As Mr. Saifi just mentioned, our Q2 revenues were mainly driven by the rebound of our flagship products. In the second half, we will continue to optimize the operations of our flagship products to drive sustainable contributions while advancing our new games to capture growth opportunities.

For the full year, we maintained the guidance we shared last quarter. We expect a slight decline in revenue from our core businesses, offset by contributions from our new games. We expect the company's overall revenues in 2026 to remain broadly in line with last year. If we see upside next quarter beyond our new guidance -- beyond our current guidance after we gain more visibility into the performance of our new games, we will update the market.

In the second half, we expect our cost and expenses to remain broadly similar to the first half of the year. We believe this is potential for our full year GAAP net margin to remain at around 40 -- 30%, sorry, 30%.

I still need to highlight if we -- if our new products receive a particularly strong market feedback, we may continue to increase user acquisition investment to pursue a greater market share. We will provide further updates on our full year outlook in the next quarter. Thank you.

Operator

There are no further questions. Now I'd like to turn the call back over to management for closing remarks.

Yuwei Gao

Thank you once again for joining us today. We look forward to speaking with you in the next quarter. If you have further questions, please feel free to contact Yalla's Investor Relations team or Piacente Financial Communications. Both parties' contact information is available in today's press release as well as on our company website. Thank you.

Operator

This concludes today's conference call. You may now disconnect your lines. Thank you. Everybody, have a great day.