Q3 2020 Yalla Group Ltd Earnings Call
Good morning, and go to evening, ladies and gentlemen, thank you for standing by for Yellow groups Limited third quarter earnings Conference call.
At this time all participants are in a listen only mode. After managements prepared remarks, there will be a question and answer session. Today's conference is being recorded now I will turn the call over to your speaker host today Ms. carried Gao IR direction IR director of the company. Please go ahead ma'am.
[laughter], everyone and welcome to yeah.
Some people on the earnings conference call. We have released our earnings would be down earlier today and it is now.
Now available on our IR website, Oh, well services work.
Before we continue please note that the discussion today will contain forward looking statements made under the Safe Harbor provision also you asked quite a bit for QVC PK study for Nike Nike Bye bye.
Forward looking statements involve inherent to be a certainty.
Oh, it's really about may be materially different from the views expressed today.
We're making regarding these and other risks and uncertainties is included in our earnings release.
Jason statements filed with the easy yeah, not assume any obligation to update any forward looking statement.
As required by law.
No that yeah earnings press release, and this conference call includes discussion of what did he GAAP financial information about the audio <unk> non-GAAP financial matters.
[laughter] media companies are because the h. young healthy audited non-GAAP matters to the UN audited most directly comparable GAAP measures.
Today, you will hear from me, how young our chairman and Chief Executive Officer, who will provide an overview of our recent achievements and growth strategies.
Well I mean, the fact that you might you the company's crappy that's it.
A brief review of Yeah, I feel there are many new AG and the support we received from the local government and media.
Before I leave this cabin crew, our chief Financial Officer, who will provide additional details on the company's financial results and discuss the financial outlook.
Management's prepared remarks, we will open up the call to questions, our Chief operating Officer Mr., Josh you Bill joined the call I'll Requeue I am not sure just another company, we might yet I'll requeue earnings good up here just like I'm now available on <unk> IR website after Saddam though.
I would now like to turn the call over to our chairman and Chief Executive Officer Mr. Young. Please go ahead Sir.
Great. Thank you Carrie.
Good morning, and good evening, ladies and gentlemen.
Thank you for joining us today.
No were good quarter 20 talking on his call.
Oh, we're going to go.
The public company. According our IPO in September this year.
We appreciate having the opportunity to communicate directly for you all.
Sure I'll, let you.
Although our business operation.
Actual performance.
Well I would agree it's really not that in the quarter up 2020 with the Liberty Global group.
Well that.
What it does mean always condition or the parent nearing what's centric mobile social networking and that came in a couple of the meta.
And I would love your non-GAAP net income was 80.
233 point I mean.
[laughter] 15 point, while meeting the increasing 90 point.
The 68.3% year over year, respectively.
Given by the strong growth over Yada Yada Yada Yada Sandy Corporation, though are highly engaged and they dropped the music and maybe.
Yeah, definitely and operationally during the quarter, we continue to emphasize our coal [laughter].
What more in developing a watch centric mobile social networking and Amazon told me that.
We help achieve a leading prediction based on what were you know better.
The Florida, which will give us all user interaction and the social networking.
No no.
Oh, a deep understanding of the local culture.
I know people are you would you see that.
We encourage users to share it gives a good activity and Green Dot Hill <unk> Valley had no culture, Hi, Debbie which.
Which helps build a healthy [laughter] that's okay.
Go ahead.
Well continue to further penetrate into both existing markets and new markets to expand or what you said about no actually Bob newkirk involving demolished.
New features to optimize the U.S. hurts you in the healthcare engagement.
Right, Yes, well are there a lot of social networking and assume a thoughtful without work superior social nature to it when you're there.
Oh, great provide cardio glide and cost a lot to go down.
Oh, well interaction and communication features all based all deeper cultural background, because he was very low.
Underpinning the foundation for social interactions in Mena anybody [laughter] No go down it services company have any advertising quickly in order to ensure the highest quality used trucks you have it.
Your next to our business model and the Great thing you could do it the old Oh, no that's not.
Contributing to strong listen they shouldn't come back and forth.
In the quarter I know the portnoy molecule could be 20, wafergen. They owe nothing merging was 44.8% and a 47% respectively.
No no what you Adnan and upgraded so within such as where you live work remained membership although knuckle.
We will go to capitalize all the met market, okay that they need.
Which is stable.
Economic development has a well established boulder onto that infrastructure has created a positive environment for a license would not working.
Given the markets.
Now, let's take a closer look at the third quarter, well myself I'll look old go dark yellow undervalued.
Yeah well.
Well I know the <unk> yellow, which can be viewed on the online Washington monument, what Kathy well.
People spend their leisure time in casual chat.
Well, yeah, we maintained a sharp focus on building type of need and high quality user community.
In the third quarter, yes, outreach I mean are you paying users or more than doubling year over year exceeding five course, Bob meeting in Washington <unk>.
Okay.
We will continue to evaluate yellow with new localized feature a new mobile show leisure activity is tailored to usiminas.
In the effort to improve user engagement.
And let me try and draw were actually well the mobile application yellow leader.
Well there we have been growing in the user base, that's that's been our monetization capability.
Yes.
Yes.
We assembled a feminine even though where family members.
Oh, Okay, that's all highly popular anything.
Much as you do and don't know.
Well playing game users come what Chad Bolen with other players as well as engage in social back working do channel.
We also organized where with high school turban between like your pets gaming experience.
Oh I see.
Its introduction in the third quarter of 2018 yellow you know has rapidly gained the popularity and has become a significant driver Oh, you took maybe Sasha no.
Oh, so important contributor I would rather go.
In the quarter can be talking the outreach I mean, you could be I don't know what else increased by more than 25 to eight point I mean.
The rapidly growing popularity of reality, though.
Which was back body by numerous outdoor including Apple App store and Google.
Door, Oh, they're overpaid.
And Tacoma.
Two is stupid wear foundation social features.
Hi to the culture now with other major with yields are able to enjoy real kind of watching traction well play board games.
Looking ahead, we are confident that we all continue.
We can continue to capitalize all these significant growth potential in need as Andr said, Oh My gosh, we're not working on the impairments market.
With our continued product innovation and our commitment lesion to calculating <unk>, what's centric social community well optimistic we can continue to strengthen and broaden our monetization capabilities.
And now I will turn to go over to our President Mr. sorry, My you to give you a closer look at the yellow appealed to everybody enjoy and Oh, we see from local government a need.
Right so.
[noise], we ought to be that's true.
He bit technology, you any color well Blake in why you see.
It's well done but could you. Please thanks.
During this year.
Attracted attention from money you need to.
Remember.
The Vice President and Prime Minister <unk> eat Hi, that's true.
Russia.
The minute that the digital economy, congratulations awesome I'll, Oh I liked it a lot.
Good <unk>.
Now did you you any color will be listed on the New York.
Stock exchange and from the public.
Also on the <unk> family.
Oh up listing ceremony in Dubai.
In addition, more than hundred members.
Yeah, we bought it on all of this thing.
Many of whom had started that leap H headline providing good <unk>.
Good thing they sit in the United States is an important strategic move for the yellow.
Boardwalk to see more local partnership I'm branding opportunities I suppose.
In the future.
No I would say on this call all bumps all Oh, it's it's got to go well.
Well I'm not sure that that what's up.
Thank you Stephanie Hello, everyone. Thank you for joining us.
Well I wouldn't need to report on all reaching an actionable woman, Florida overtime as a hobby taught me well our phone when they didn't have any natural healthy top and bottom line [laughter].
All right you would be so it seems to me 48 meeting U.S. dollar not this quarter, while our non-GAAP net income was 15.5 meeting U.S. dollar.
We were able to maintain a high number that's marking our 45.8 [laughter].
[laughter] Yelp reviews in calendar <unk>, we can catch it will just be because you cool Nina invasive online social networking and even Siemens market.
Now I would like to walk through our financial details for the third quarter all parties I see.
Our revenue was 33.8 meeting you at all or you know, but what's your approach to send me a 19.4% increase from that.
<unk> 0.8, meaning you I'm sorry, you missed seems really last year.
Exactly what the primaries, even five you're wondering also yara anyhow, who don't use it right I never be bored you how much more.
Morning region kind of anything.
Oh, how are we any income we filed 358.9% from me going to why maybe instead of course, you're always on the 92.
Well she points, meaning even though what you're offering me I see.
[laughter] I'm.
Not right coffee branches will oscillate around as well.
He was the thing that makes me even know 15 use it.
Go wrong five cents already [laughter], what's your office on the nine to 5.1 immediately and is that what you're up 20 cents.
Oh right you can't read it wrong Centenes anything well, let's see one remaining U.S. doors in the third quarter of Turkey Crazy.
And Iran, you generally wrong, beating them see well 3.5 meeting U.S. or even the third quarter all parties.
No that's okay I'll call any Cindy.
I'll watch all revenues was 25 point, meaning U.S. wondering if that's what you're all right. Okay.
Okay, RMB 5.4 million U.S. or anything you read in last year.
Judy shabby call, maybe even see other components of cost of revenues was 11.5 million U.S. dollar well instead of cultural [laughter].
Oh, Wow and shell point [laughter] increased from 5.4 million U.S. more for the same quarter last year.
Well, you're right. We all revenue grew and Randy you too that our friends evening deal.
Hi, Good morning, Yeah. These crazy that'd be cool all right here.
Our revenue increased from 30 point [laughter], what's your old because on the Nike keeping people want to watch [laughter], Oh, Oh pretty frenzy.
You too and usually in commission rate for the housekeeping High school.
Oh, setting and Robert Matthiessen was 8.5, meaning you asked already [laughter], what's your old [laughter] Oh.
Yeah, we 1.7 million U.S. already seen PEO in Iran. Yes, It's Tony Shelby Amazing you, then say, Oh, Oh, setting and the Rockies messy, well oh meaningful into that of course Girlfriendy cranky.
[laughter] you, 1.4% increase from 1.7 million U.S. dollar for the same quarter last year.
Hello, Brian lead you to her I don't heightening and Robertson promotion you then see as a result, our continuing exactly.
Right.
Excluding share based compensation nothing.
Selling and marketing expenses as a percentage of our total revenue increased from 9.9 cents in the third quarter out on the Nike.
No [laughter] missing.
Hi, Steve.
Right. Thank you too Oh, I ask anyone marketing activities relating to young, though we see a very substantial growth in the years [laughter].
Oh, Yeah, Andrew I wouldn't I mean to me Nancy well 28.9 million U.S. already [laughter], what's your all crazy frenzy.
Okay I haven't read one meeting U.S. dollars seems very last year.
Usually it's called I see I see Oh, when it's all general and any thinking 71.8 million U.S. dollar for the quarter all parties.
078 0.0 no.
We bought one meaning U.S. dollar for the same quarter last year.
Right well run rate you to Wow, I need free dairy and other back before out you know and I mean, you saw we want you to read them by any measure our general and admin speaking style untrue.
And to an increase in professional services team.
Yeah. So what do you see any conversation even be general and maybe even see uncertainty. Our two revenue remained at you know Larry Siebert now Oh, 5.3% method, what you're all parties [laughter].
Our technology at the core that you bought in that study.
1.7 meeting you at all right now what's your offering me okay.
Compared to 3.4 million U.S. already seem to you even last year it.
It could be shabby fishing sent me out.
Woman Oh, no idea [laughter] batsmen evening, well 0.9 eating U.S. dollar for the third quarter up [laughter].
Oh, Wow, and Fivepoint [laughter], usually wrong way well he left off for the same quarter last year, which was primarily due to an increase in salaries and benefits for our knowledge [laughter].
We bought them and so.
Excluding shabby crazy ethanol.
Definitely I'm going to ask you about much even be as sandy allow to round you slightly increased from 2.0, you know what you're off to some 92.
Two 2.6%.
Thank you [laughter].
As Oh, breaking the law was 50.9, you I sorry, what's your ultimate differently.
How do we Oh, we incur Oh 9.21, meaning you asked already seen you read my yes.
[laughter] screenshot these conversations that did not recur.
<unk> well that's what's your offering me Crazy was 18.8 million U.S. dollar 70 [laughter] usually.
Equal to or not.
Our income tax sensing wall was <unk> point.
Pointing it out and meeting new I sort of in the same quarter authentic frenzy.
As a result, Oh, well going Oh National what do you want me to U.S. already the scene.
Sure I'll present.
Oh, well I'm going to 33.9 cents equally well 9.2, maybe U.S. already seems <unk>, yes.
Eat through each of these companies are using legacy non-GAAP net income for that's what's your ultimate heat when he was.
18.5, meaning U.S. dollar.
C 8.3 cents increase from 9.2 meeting U.S. dollar for the same quarter last year.
Now I would like to briefly look at our cash and cash [laughter].
As of September 30, I think 90.
We had cash and cash equivalents, all 75.7 meeting U.S. dollar as compared to cash and cash equivalents all.
8.5 million U.S. dollar all joins the team [laughter].
Well, what's your old I think Wendy Wee, our revenues to be between 55 meeting U.S. dollar and busy season, meaning U.S. dollar.
Oh, no cookie based on current market condition and the right now the accompanying managements current and running so we estimate our marquee and Recompletion and customer demand we are all subject to change.
This concludes our prepared remarks, well today Oh, we drew 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 Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys if it.
Anytime your question has been a trusting you would like to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Our first question will come from I leave Liang with hate to international. Please go ahead.
Hi, Andy.
Yes, yes clear.
Hi, Hi, Hi, Thanks for taking my question I got was on coffee and Kathy Congratulations on a good set of results since you'll always see us.
I have a I have a few question. The first question is just to do without outlook would be bought very strong fourth quarter. We I was expecting strong quirky quarter for sort of my first question is do we have any revenue targets for 2021 or maybe use a taco.
For 2021, that's my first question.
Oh, Yeah second question I was wondering if management can share any.
Because on the time spent oh, we got a lot and I loved needle during quarter three and my final question. My third question is what a weekend share any color on maybe new apps all functions. All features Oh I thought 2021 over the next 12 months Ah. Thank you.
That's all my questions.
Thanks Me now I just first question Hi, based on the company Interims asked me.
Revenue for the year. So I think that's why we only see 200 to a meeting U.S. dollar undergo the nats question I will transfer to well yeah yeah.
Yeah, Oh, but what do you all think all me Tom.
We are always Danny comps Gospel Yala was EUR 4.5, all worth in Q2, and we have the number or would probably not be included in Q3. However, we hope we markers and have done that yellow daily I rate comes down is already.
Hi, I'm terribly is or the peer average they're kinda, we hope we can be more rationale when we look at the growth of this as magic and Oh, Yeah. You know they are restating compound week to two 101 minute.
We think there are few ample room to go.
Look there's a updates for the comps back.
On the <unk> pipeline with a new bank and we have our yellow boot.
Oh, Oh, well the Gulf country launch.
Ah Lisanti and we are yes, do it under optimization and hopefully we will we will start all were a compelling from a from already next year. When you absolute I know we have another a casual game well Turkish people, It's code why no one.
Okay. Good do you have under development.
I think we we do we are we will be launching in Apple and Google in December this year.
And for the pipeline after that by next year, Oh, we do have our plan.
Yeah, but we prefer not to disclose at this moment.
Oh, you Kinda sound QB.
Thank you. Thank you that was very helpful and congratulations again I'll get back into queue.
I don't care about getting a second.
Our next question comes from Alex Pan with Morgan Stanley. Please go ahead.
Hi management, congratulations on a very strong results.
A question on the use of cash can you tell us what's your plan for the use of cash, especially.
IPO proceeds, Indonesia, and India remaining of the year and also next year after.
If the kind of cash and my second question is regarding a if I look at the sequential growth. It's is there anything to do with the normalization of COVID-19, because that was something that was more stuff you're locked down during the second quarter period, how does it affect the user engagement in third quarter compared to 35.
Good quarter. Thank you.
Hey, Hey.
Well the first question they use all crazy to anything we outgrew the Nike our paper PCC continually send our user base and you could actually be back.
As a result.
We see no matter anymore, she technology and marketing and then see what you can see how ownership.
We believe that we will spend a long.
30 to 40 cents a mile.
And uptrend, he chooses any sense I'd and it would really caution that he that remain remaining [laughter] and am I thinking of that region, Oh I'm sorry.
Yes.
Oh, hi, good morning.
That's okay.
Okay right for the company to go and.
Oh, no. We all continue to be our people, okay eastern region to capture user.
Oh.
Okay, Nike Inc. raises.
We both things access going 19, our aim Oh I know what you [laughter] Oh, no I yell at me I didn't know you Pete Hey.
Hey for the Oh, Oh, you and outcome tool. So we can we can do that in the next quarter. We will do you all can see our examination and everything else.
Thank you.
Thank you very much.
Thank you Eric.
Our next question comes from Oh pay with Oppenheimer. Please go ahead.
Hi, Good morning management says what picking my questions and congrats on the salaries shows and the recent IPO. So I have two questions. If I may so the first is about Oh, two part a widely successful in me you know so I was just wondering what are the most all of our products we remain.
It's that use us go or is there something else and then the second question Oh, you talk about a little bit the new product launch plans.
And Dan I'm, just wanting to wane.
The question now is and the strategies behind this product launch how do we decide what kind of products to be wide Oh, how do we determine the marquee opportunities and you know then related to that show. Thank you much.
Okay. Thank you must have a builder the two question.
No that's the question.
I think first of all we have already be able to highly interactive and engaging user community and all were unique.
This is moto deeper from the traditional Oh God.
Oh, good interaction is mostly why would that.
No not in any of our chatroom.
And Oh content, our user generated lists.
This allows all users in Ghana, and yet I do though to participate actively whether demonize their creativity addressing all the user loyalty to two okay.
We thought we'd have a well I withdraw locally.
The Mcmahon has a deep understanding to the middle market, mainly the market with high barrier without local know how it's very difficult to succeed.
The team with yours.
Human.
Now living in this area and hi, Cindy TMT industry. It's also very important I think that's the most for our a product they need.
And the second question.
No I already they apply the with the Onyx about our product pipeline.
Right, but you got a lot and there wasn't one okay for Turkish people, and then that well, though we stick to it its true we have other well other class, but do we wait wait we prefer not to go there at this moment, what we we but what would be.
I can tell you what Oh, we saw what kind of products. We we we were glad you got Oh, what's a decision changing in our company. We have a we have a very strong OCO team and the management have you been attending to them. You know Mark had mentioned just now we will make jayson.
It's all the management local knowhow combined with that.
We gain from users the V., we conducted no we have already Oh were over a one.
Oh, well, we're over 50 in the meeting I mean, you know well both yada yada do them. So we have always used to be maybe what they did they like what they love to how in a in the future.
We know that at this stage, where you've already identified popular shows we're not working and do you have an active <unk> oclock and replicate is a lot to begin to feel a they mean, a little cold people real daily need that has existed for a long.
No. So thank you it sounds like that is our culture.
Thank you that's very helpful.
Thank you.
As a reminder, if you have a question. Please press star then one to be joined into the queue.
Yes.
Our next question comes from Ali Leo with hate to International. Please go ahead.
Hi management exactly some high come again I'm just wanted to follow up with one question and it's to do with the competition can management, maybe share a view old maybe outlook of what they are but do you see in terms of voice Oh, sorry.
Networking all maybe just in terms of social networking competition, you need and region.
Oh, I just to share with us in terms of the competitive environment. Thank you.
I would like one part of the question.
So.
They are the ones that this online social and just look at that.
From a company that Ive talked a good game you know like why why we'll have developed like be goal goal.
If you look at the employment numbers equal hug will you have bought on <unk>. It was <unk> million.
If you Didnt get what that looks like just one more you have been in the market since 2018, and they are getting jobs.
The same or it's not small love that our company.
<unk> called we would like him decide that it's not that we have move up its a competition the competition <unk> immuno Oh, we are able to compete effectively you'll see publicly.
<unk> is our ability or understanding what the meaning we don't really need it.
Yeah well.
<unk> <unk> <unk> <unk> <unk>.
The objective of you getting a build up but what are you doing you know we have better effective marketing.
And your acquisition strategy, which I like that and all of <unk> D and the a monkey king to check that.
Well I believe that most importantly, the community we have established the strong body of tier three you gave it but if you look like well well done <unk> <unk> <unk> <unk> the daily average.
That's good I think you know Betty hi that market, even though they are coming to the market.
Like dark meat quote that just like you are.
We said that the three major online region.
And the other thing Thats it sounded like Beagle likes what do you mean.
[noise] Ah you do voice chat that God love them.
But also shed.
Moving on hub <unk>.
Uh Huh, Jackie Jackie that was very very helpful. And then just to follow up on that or is it possible to share maybe some engagement data for quarter three again, what a true, but we've seen better engagement in the last quarter. Thank you.
Mhm dental engage.
Engage me.
The same user behavior.
We have seen do you have the engagement all of your life platform.
Realizing booking thing being running music sharing Walmart about all those things each other and the good thing nature has been strong.
Well on yeah, I loved <unk> beauty Oh.
Behavior upsetting to integrate the online business.
Well, so you can get up and going down that training meeting the game bulk legal I'm getting old.
So do you give up in having the same developing good mix if not more on bits of broadband by the.
Increment that all the time spent on our platform.
Thank you that was helpful I'll get back into queue.
As there are no further questions 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 Walter.
Yeah, well the question they feel free to contact me I'll be methylation, Oh, no that comedy for making provided on our website at the P. S. I think looking back I mean Asian.
Okay. Thank you. Thank you gentlemen.
Ladies and gentlemen.
This concludes the conference call you May now disconnect your lines. Thank you.
[music].