Q2 2024 Yalla Group Ltd Earnings Call

August 13, 2024

Good morning and good evening, ladies and gentlemen. Thank you for standing by for YALA Group Limited second quarter 2024 earnings conference call.

Operator: Limited second quarter 2020 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 is being recorded. Now, I would like to turn the call over to your speaker host today, Mr. Logan Yee, IR manager of the company. Please go ahead, sir.

Operator: Limited second quarter 2020 for earnings conference call. At this time, all participants are in listen-only mode.

Operator: 2nd quarter of 2024 earnings conference call. At this time, all participants are in listen-only mode.

Operator: After management's prepared remarks, there will be a question-and-answer session. Today's conference is being recorded.

Speaker Change: At this time, all participants are in listen-only mode.

Speaker Change: After management's prepared remarks, there will be a question and answer session.

Logan Ye: Now, I would like to turn the call over to your speaker host today, Mr. Logan Ye, I.R. Manager of the company. Please go ahead, sir.

Operator: After management's prepared remarks, there will be a question and answer session. Today's conference is being recorded. Now, I would like to turn the call over to your speaker host today, Mr. Logan Ye, IR manager of the company. Please go ahead, sir.

Speaker Change: Today's conference is being recorded.

Speaker Change: Now, I would like to turn the call over to your speaker host today, Mr. Logan Yee, IR manager of the company. Please go ahead, sir.

Logan Ye: Hello, everyone, and welcome to Yalla 2nd quarter of 2024 and its conference call. We released our earnings press release earlier today, and the release 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 Security Education Reform Act of 1995. For what looking statements involve inherent risk and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in our earnings release and our annual report filed with the SEC.

Logan Yee: Hello everyone, and welcome to Yalla's 2nd Quarter 2024 Earnings Conference Call. We released our earnings press release earlier today, and the release is now available on our IR website, as well as on Newswire.

Logan Ye: Hello everyone, and welcome to Yalla's 2nd Quarter 2024 Earnings Conference Call. We released our earnings press release earlier today, and the release is now available on our IR website, as well as on Newswire Outlet. 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 Security Litigation Reform Act of 1995; we are looking at statements involving inherent risk and uncertainty. As such, future results may be materially different from the views expressed today.

Logan Yee: Hello everyone, and welcome to YALA's second quarter 2024 earnings conference call. We released our earnings press release earlier today, and the release is now available on our IR website as well as on Newswire outlets.

Logan Yee: 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 Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risk and uncertainty. As such, our future results may be materially different from the views expressed today.

Logan Ye: Further information regarding this and other risks and uncertainties is included in our earnest release and our annual report filed with the SEA. Yalla does not assume any obligation to update any forward-looking statements, except as required by law. Please also note that Yalla's earnings release and this conference call include a discussion of unnoticed gap financial information as well as unnoticed non-gap financial measures. Yalla's press release contains a reconciliation of the unnoticed non-gap measures to the unnoticed most directly comparable gap measures.

Logan Yee: 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 Security Litigation Reform Act of 1995.

Logan Yee: Further information regarding this and other risks and uncertainties is included in our earnest 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 release and this conference call include a discussion of unnoticed gap financial information as well as unnoticed non-gap financial measures. Yalla's press release contains a reconciliation of the unnoticed non-gap measures to the unnoticed most directly comparable gap measures.

Logan Yee: forward-looking statements involve inherent risk and uncertainty.

Logan Yee: As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in our earnest release and our annual report filed with the SEC.

Logan Ye: Yalla does not assume any obligation to update any forward-looking statements, except as required by law. Please also note that Yalla's earnings release and this conference call includes a discussion of unnotited financial information, as well as unnotited non-GAAP financial measures. Yalla's press release contains a reconciliation of unnotited non-GAAP measures to the unnotited most directly comparable GAAP measures.

Logan Yee: YALA does not assume any obligation to update any forward-looking statements except as required by law.

Logan Yee: Please also note that YALA's earnings release and this conference call include a discussion of unnoticed gap financial information as well as the unnoticed non-gap financial measures.

Logan Yee: Yalas Press release contains a reconciliation of the unnoticed non-gap measures to the unnoticed most directly comparable gap measures.

Tao Yang: Today, you will hear from Mr. Taoyang, our chairman and chief executive officer, who will provide an overview of our latest achievements and growth strategy. He will be followed by Mr. Saifa Ismail, the company's president, who will briefly review our recent business developments.

Logan Yee: Today, you will 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 detail on the company's financial results and discuss our financial outlook. Following management's prepared remarks, we will open the call to questions.

Logan Ye: Today, you will hear from Mr. Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our latest achievements and growth strategies. This 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 detail on the company's financial results and discuss our financial outlook. Following management's prepared remarks, we will open the call to questions.

Logan Yee: Today, you will hear from Mr. Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our latest achievements and growth strategy.

Logan Yee: It will be followed by Mr. Saifi Ismail, the company's president, who will briefly review our recent business developments.

Karen Kuh: Mrs. Karen Kuh, our Chief Finance Officer, will then provide additional detail on the company's financial results and discuss our financial outlook.

Speaker Change: Mrs. Karen Hu, our chief financial officer, will then provide additional detail on the company's financial results and discuss our financial outlook.

Operator: Following management's prepared remarks, will open the call to questions. Mr. Jeff Sheep, our Chief Operating Officer, will join the Q&A session.

Speaker Change: Following management's prepared remarks, we will open the call to questions.

Speaker Change: Mr. Jeff Xu, our Chief Operating Officer, will join the Q&A session.

Tao Yang: With that said, I would now like to turn the call over to our Chairman and Chief Executive Officer, Mr. Taoyang. Please go ahead, sir.

Logan Yee: 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.

Logan Ye: 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.

Speaker Change: 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 of 2024 learning of conference call, we are pleased to report strong second quarter results, even with the impact of lockdown, which lasted from March 11th to April 9th this year. Our second quarter revenue is reached 81.2 million esteem, beating the upper end of our guidance.

Tao Yang: Thank you everyone for joining our second quarter 2024 Learnings Conference. We are pleased to report strong second-quarter results, even with the impact of lockdown, which lasted from March 11, through April 9th this year, our second quarter wrapping this week. 81.2 million USD, beating the upper end of our guidance. This outstanding performance underscores the remarkable popularity of our flagship applications, Yalla and Yalla Ludo, as well as our effective strategy for high-quality growth. Our operating efficiency improvements are also yielding positive results. Anyway, take our net margin to 38.6, present in the second quarter.

Tao Yang: Thank you everyone for joining our second quarter 2024 Learnings Conference Call.

Tao Yang: We are pleased to report strong second quarter results, even with the impact of lockdown, which lasted from March 11.

Tao Yang: to April 9th this year, our second quarter wrapping this week.

Speaker Change: 81.2 mSv, meeting the upper end of our guidance.

Tao Yang: This outstanding performance underscores the remarkable minority of our flagship applications, Yala and Yalano, as well as our effective strategy for high quality growth. Our operating efficiency improvements are also using positive results. Activating our net margin to 38.6% in the second color. Throughout the second color, we remained dedicated to enhancing our operational procedures, boosting user engagement, optimizing technology utilization to improve efficiency, and refining our user acquisition strategy. This effort have empowered us to build a more engaged community of users who activate high limits to spend on our content and services.

Tao Yang: This outstanding performance underscores the remarkable popularity of our flagship applications, Yalla and Yalla Ludo, as well as our effective strategy for high-quality growth. Our operating efficiency improvements are also yielding positive results, and we're taking our net margin to 38.6, as presented in the second quarter.

Speaker Change: This outstanding performance underscores the remarkable polarity of our flagship applications, Yela and Yelaluno, as well as our effective strategy for high-quality growth.

Speaker Change: Our operating efficiency improvements are also yielding positive results.

Speaker Change: Elevating our net margin to 38.6.

Tao Yang: Throughout the second quarter, we remained dedicated to enhancing our operational procedures, boosting user engagement, optimizing technology utilization to improve efficiency, and refining our user acquisition strategy. You can link attributes have empowered us to build a more engaged community of users who exhibit a high willingness to spend on our content and services, supported by our solid business fundamentals and dedicated team. We remain primed to capture new business opportunities and fulfill MENA users' evolving online social networking needs.

Tao Yang: Throughout the second quarter, we remained dedicated to enhancing our operational procedures, boosting user engagement, optimizing technology utilization to improve efficiency, and refining our user acquisition strategy. Such an effort has empowered us to build a more engaged community of users who exhibit a high willingness to spend on our content, and so it is, supported by our solid business fundamentals and dedicated team. We remain proud to capture new business opportunities and fulfill MENA users' evolving online social networking needs. There are ongoing digital transformations in the Middle East that continue to attract attention globally, with international tech companies keen to explore opportunities in the region.

Speaker Change: and Prithat in the second color.

Speaker Change: Throughout the second quarter, we remained dedicated to enhancing our operational procedures, boosting user engagement.

Speaker Change: optimizing technology utilization to improve efficiency and refining our user acquisition strategy.

Speaker Change: Live forever.

Speaker Change: have empowered us to build a more engaged community of users who exhibit high willingness to spend on our content.

Tao Yang: Supposed by our solid business fundamentals and dedicated team, we remained planned to capture new business opportunities and fulfill mere users' evolving online social networking needs. The ongoing digital transformation in the Middle East continues to attract attention globally in this year. With international tax companies keen to explore opportunities in the region. 2024 marks Yalla's eighth year in the Middle East and the eighth anniversary of our flagship product, Yalla.

Speaker Change: and so it is.

Speaker Change: supported by our solid business fundamentals and dedicated team.

Speaker Change: We remain prompt to capture new business opportunities and fulfill MENA users' evolving online social networking needs.

Tao Yang: The ongoing digital transformation in the Middle East continues to attract attention globally, with international tech companies keen to explore opportunities in the region. 2024 marks Yalla's 8th year in the Middle East and the 8th anniversary of our flagship product, Yalla, over to Joe here. Yalla has grown from our group's first WhatsApp product into the world's most downloaded WhatsApp app for 2023, based on BedHead.ai's research, with a highly engaged and loyal user community, keeping our user-friendly philosophy in mind.

Speaker Change: The ongoing digital transformation in the Middle East.

Operator: Ltd.

Speaker Change: continue to attract attention globally this year.

Speaker Change: with international tech companies keen to explore opportunities in the region.

Tao Yang: 2024 marks Yalla's 8th year in the Middle East and the 8th anniversary of our flagship product, Yalla Messenger, on Youtube. Yalla has grown from our group's first WhatsApp product into the world's most downloaded WhatsApp app for 2023 based on BedHead.ai's research. With a highly engaged and loyal user community, keeping our user-first philosophy in mind, we have consistently created memorable, experimented, and forged deep connections with our users by iterating and upgrading our products to meet their evolving needs.

Yela: 2024 marks Yela's 8th year in the Middle East and the 8th anniversary of our flagship product, Yela.

Tao Yang: Over two years, Yalla has grown from our group's first watch out product into the world's most downloaded watch out app for 2023 based on badhead.ai's research, with a highly engaged and low-view user community. Keeping our user-first philosophy in mind, we have consistently created memorable experiences and forged deep connections with our users by iterating and upgrading our products to meet their evolving needs. Meanwhile, as industry partners, we have helped propel the evolution and development of Internet products and as a broader Internet sector in the mere region.

Noh Theory: over to Noh Theory.

Noh Theory: Yela has grown from our group's first WhatsApp product into the world's most downloaded WhatsApp app.

Operator: 2nd quarter of 2024 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 is being recorded.

DeadHat.ai: for 2023 based on DeadHat.ai's research with a highly engaged and loyal user community.

Logan Ye: Now, I would like to turn the call over to your speaker host today, Mr. Logan Ye, I.R. Manager of the company. Please go ahead, sir.

Tao Yang: We have consistently created memorable, experimented, and forged deep connections with our users by iterating and upgrading our products to meet their evolving needs. Meanwhile, as industry pioneers, we have helped propel the evolution and development of Internet Products and the broader Internet sector in the MIR region. We will remain committed to driving the Middle East's digital transformation, seizing emerging opportunities, and growing with our users and the industry as we lead the region's development.

Speaker Change: Keeping our user-friendly philosophy in mind, we have consistently created memorable

Speaker Change: Externatives, and Foges.

Speaker Change: deep connections with our users by iterating

Speaker Change: iterating and upgrading our products to meet their evolving needs.

Tao Yang: Meanwhile, as industry pioneers, we have helped propel the evolution and development of Internet Products and the broader Internet sector in the MIR region. We will remain committed to driving the Middle East's digital transformation, seizing emerging opportunities, and growing with our users and the industry as we lead the region's development. Turning to Yalla Games development and the future, the gaming sector continues to demonstrate immense growth potential with the need for Lina's Thriving Digital Transformation. Yalla is capturing that potential with consistent investment in Mina's Meco and Hardcore game market, and it is attracting media users with a wider range of game options tailored to their unique preferences.

Logan Ye: As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties 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 release and this conference call includes a discussion of unnotited financial information, as well as unnotited non-gap financial measures. Yalla's press release contains a reconciliation of unnotited non-gap measures to the unnotited most directly comparable gap measures.

Speaker Change: Meanwhile, as industry pioneers, we have helped propel the evolution and development

Speaker Change: of Internet products and the broader Internet sector in the MIR region.

Tao Yang: We will remain committed to driving the Middle East digital transformation, using emerging opportunities and growing with our users and the industry as we lead the region's development trends.

Speaker Change: We will remain committed to driving the Middle East digital transformation, seizing emerging opportunities, and growing with our users and the industry as we lead the region's development trends.

Tao Yang: Turning to Yalla Games development in the future strategy. The gaming sector continues to demonstrate a mass growth potential that needs to lead us to driving digital transformation. Yalla is capturing that potential with consistent investment in meaningful and hot-go-game market, attracting many users with a wider range of game options tailored to their unique preference. In this year, we have focused on the exploration and development of Mico and NACO games, where we can leverage the extensive exercise, talented workforce, and abundant resources we have accumulated in the casual gaming sector. Our product team are currently developing and refining a strong profile of self-developed games, that to be back throughout 2025.

Tao Yang: Turning to Yalla Games' development and the future... The gaming sector continues to demonstrate immense growth potential with the need for Linus' Thriving Digital Transformation. Yalla is capturing that potential with consistent investment in Mina's Meco and Hardcore game models.

Speaker Change: Turning to YALA Games development and future strategy.

Speaker Change: The gaming sector continues to demonstrate immense growth potential with the need for

Tao Yang: Today, you will hear from Mr. Taoyang, our chairman and chief executive officer, who will provide an overview of our latest achievements and growth strategy.

Lina: Lina's thriving digital transformation.

Lina: Yela is capturing that potential with consistent investment in Minas Merko and Hardcore Game Market.

Tao Yang: Attracting media users with a wider range of game options tailored to their unique preferences. This year, we have focused on the exploration and development of Meiko and Haskell games, where we can leverage the extensive experience, talented workforce, and abundant resources we have accumulated in the casual gaming sector. Our product team is currently developing and refining a strong pipeline of self-developed games set to be developed throughout 2025. On a related note, we are proactively exploring AI technology applications to optimize our team's productivity, particularly UI design, which has high requirements for detailed, time-consuming, and artistic design by harnessing the power of AI.

Saifi Ismail: He will be followed by Mr. Saifa Ismail, the company's president, who will briefly review our recent business developments.

Lina: Attracting media users with a wider range of game options tailored to their unique preferences.

Tao Yang: This year, we have focused on the exploration and development of Meiko and Haskell games, where we can leverage the extensive experience, talented workforce, and abundant resources we have accumulated in the casual gaming sector. Our product team is currently developing and refining a strong pipeline of self-developed games set to be developed throughout 2025. On a related note, we are proactively exploring AI technology applications to optimize our team's productivity, particularly UI design, which has high requirements for detailed, time-consuming, artistic work. By harnessing the power of AI

Karen Kuh: Mrs. Karen Kuh, our chief finance officer, will then provide additional detail on the company's financial results and discuss our financial outlook.

Lina: This year, we have focused on the exploration and development of Meiko and Haskell games.

Operator: Following management's prepared remarks will open the call to questions.

Lina: where we can leverage the extensive

Jeff Sheep: Mr. Jeff Sheep, our chief operating officer, will join the Q&A session.

Lina: exercise, talented workforce, and abundant resources we have accumulated in the casual gaming sector.

Tao Yang: With that said, I would now like to turn the call over to our chairman and chief executive officer, Mr. Taoyang. Please go ahead, sir. Thank you, everyone.

Lina: Our product team are currently developing and refining a strong pipeline of self-developed games set to be built throughout 2025.

Tao Yang: On a related note, we are proactively exploring AI technology applications to optimize our team's productivity, particularly UI design, which has high requirements for detailed, time-consuming artistic work, by harnessing the power of UI. Our UI team have notably enhanced efficiency, leading to substantial improvement in the team's capacity, and facilitating foster innovation in product features and gameplay. We are excited about AI's transformative potential, and we will continue to seek creative applications to cut off our business to draft product iteration and operational updates.

Tao Yang: For joining our second quarter of 2024 learning of conference call, we are pleased to report strong second quarter results, even with the impact of lockdown, which lasted from March 11th to April 9th this year. Our second quarter revenue is reached 81.2 million esteem, beating the upper end of our guidance. This outstanding performance, underscores the remarkable minority of our flagship applications, Yala and Yalano, as well as our effective strategy for high quality growth.

Lina: On a related note, we are proactively exploring AI technology applications to optimize our team's productivity.

Lina: particularly UI design, which has high requirement for detailed, time-consuming, artistic work.

Tao Yang: Our UI team has notably enhanced efficiency, leading to a substantial improvement in the team's capacity and facilitating faster innovation in product features and gameplay. We're excited about AI's transformative potential, and we will continue to seek creative applications to disrupt our business to drive product iteration and operational upgrades. As we mentioned, on every call, our vision is for Yalla to become the largest online social networking and entertainment company in MENA. This quarter represented another solid step toward our vision.

Tao Yang: Our UI team has notably enhanced efficiency, leading to a substantial improvement in the team's capacity and facilitating faster innovation in product features and gameplay. We're excited about AI's transformative potential, and we will continue to seek creative applications to improve our business to drive product iteration and operational upgrade, as we mentioned. On every call, our vision is for Yalla to become the largest online social networking and entertainment company in MENA. This quarter represented another solid step toward our vision.

Lina: by harnessing the power of the eye.

Lina: Our UI team has notably enhanced efficiency, leading to substantial improvement in the team's capacity and facilitating faster innovation in product features and gameplay.

Tao Yang: Our operating efficiency improvements are also using positive results. Activating our net margin to 38.6% in the second color. Throughout the second color, we remained dedicated to enhancing our operational procedures, boosting user engagement, optimizing technology utilization to improve efficiency and refining our user acquisition strategy. This effort have empowered us to build a more engaged community of users who activate high limits to spend on our content and services. Supposed by our solid business fundamentals and dedicated team, we remained planned to capture new business opportunities and fulfill mere users evolving online social networking needs. The ongoing digital transformation in the Middle East continues to attract attention globally in this year. With international tax companies keen to explore opportunities in the region.

Lina: We're excited about AI's transformative

Lina: potential and will continue to seek.

Lina: creative application to cut off our business to drive product iteration and operational upgrade.

Tao Yang: As we mentioned on every call, our vision is for Yela to become the largest online social networking and entertainment company in Mina. This coder represented another solid stat toward our vision. I'm proud of the many firsts we have achieved in this region, and its internet industry, creating a better digital life for our loyal users in the Yela community. Our commitment to Mina is people, and it's rich culture. It's unwilling, inspiring our team's ongoing generation of new ideas, as new products to meet Mina's users' evolving needs, and facilitate digitalization throughout the region.

Lina: that we mentioned.

Lina: On every call, our vision is for YALA to become the largest online social networking and entertainment company in MENA.

Lina: This quarter represented another solid step toward our vision.

Tao Yang: I'm proud of the many firsts we have achieved in this region and the internet industry, creating a better digital life for our loyal users in the Yalla community. Our commitment to MENA, its people, and its rich culture, is unwavering, inspiring our team's ongoing generation of new ideas and new products to meet MENA users' evolving needs and facilitate digitalization throughout the region. Now I will turn this call over to our President, Mr. Saifi Ismail, for a closer look at our recent, Thank you very much. Now, we'll take a look at the second quarter operations and our broad performance. We redacted our..., members of the Yalta community.

Tao Yang: I'm proud of the many firsts we have achieved in this region and the internet industry, creating a better digital life for our loyal users in the Yalla community. Our commitment to MENA. Its people and its rich culture are unwavering, powering our team's ongoing generation of new ideas and new products to meet MENA users' evolving needs and facilitate digitalization throughout the region. Now I will turn this call over to our President, Mr. Saifi Ismail, for a closer look at our recent developments. Thank you.

Lina: I'm proud of the many firsts we have achieved in this region and its internet industry.

Lina: creating a better digital life for our loyal users in the Yala community.

Lina: our commitment to MENA.

Lina: It's people, and it's rich culture.

Lina: is unwavering, is bearing our team's ongoing generation of...

Lina: New ideas and new products to meet MENA users' evolving needs and facilitate digitalization throughout the region.

Saifi Ismail: Now, I will turn this call over to our president, Mr. Saintee Ismail, for a closer look at our recent developments. Mr. Saintee Ismail, for a closer look at the section quarter operations and our broad square four months. We read out our, addressing the Delta community. Our average monthly active users increased 14.1% to over year, to $13.9 million.

Saifi Ismail: Our average monthly active users increased by 14.1% year-over-year to 39 million. That's about it, anniversary, to meet new users and local fans. Similar to our Explore the World of Yalla event, this iconic online festival was featured on the Apple Store and Google Store, boosting average daily consumption of GoldCoin Games currency to a record high for our anniversary event. We are also leveraging offline events to strengthen our product and brand awareness, including our global champion offline tournament series. The two... tournaments we have thus far in Riyadh. Pardon me, Saifi, this is the operator. I'm, pardon me; we are having difficulties with the speaker line.

Lina: Now I will turn this call over to our President, Mr. Saifi Ismail, for a closer look at our recent developments.

Tao Yang: 2024 marks Yalla's eighth year in the Middle East and the eighth anniversary of our flagship product, Yalla. Over two years, Yalla has grown from our group's first watch out product into the world's most downloaded watch out app for 2023 based on badhead.ai's research, with a highly engaged and low-view user community. Keeping our user-first philosophy in mind, we have consistently created memorable experiences and forge deep connections with our users by iterating and upgrading our products to meet their evolving needs. Meanwhile, as industry partners, we have helped propel the evolution and development of Internet products and as a broader Internet sector in the mere region.

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu,

Saifi Ismail: Let's take a closer look at the second quarter operations and our broad square format. We redacted our...

Speaker Change: Let's take a look at the second quarter operations and our broad performance.

Speaker Change: Thank you very much.

Speaker Change: [inaudible]

Speaker Change: Hello, I'm Saifi Ismail, and I'll see you in the next video.

Saifi Ismail: Thank you all for coming today. Our average monthly active users increased by 14.1% year-over-year to 39 million. About Ad, anniversary. We are also leveraging offline events to attract more users and local fans. Similar to our Explore the World of Yalla event, this iconic online festival was featured on the Apple Store and Google Store, boosting average daily consumption of Gold Coin Games currency to a record high for our anniversary event. We are also leveraging offline events to attract more users and local fans, to strengthen our product and brand awareness, including our global champion offline tournament series. The two... tournaments we have had thus far in Riyadh.

Speaker Change: members of the Yalta community. Our average monthly active users increased by 14.1% year-over-year to 39 million.

Saifi Ismail: Mr. Saintee, thank you very much.

Speaker Change: Exactly our age.

Saifi Ismail: So, the new user and local fans, allies without the blood of Yalla Event, this iconic online civil featured on the Apple Store and Google Store, who's the average day in consumption of gold coin games can see to our eyes for our anniversary event.

Speaker Change: and the best series.

Speaker Change: Thank you.

Speaker Change: new users and local fans alike with our Explore the World of Yallah event.

Speaker Change: This iconic online festival was featured on the Apple Store and Google Store, boosting average daily consumption of gold coin games currency to a record high for our anniversary event.

Saifi Ismail: We are also leveraging offline event to strengthen our product and brand awareness, including our global champion of online tournament series, the two tournaments we have thus far in the U.S.

Speaker Change: We are also leveraging offline events.

Speaker Change: to strengthen our product and brand awareness.

Speaker Change: including our global champion offline tournament series.

Speaker Change: The two tournaments we have seen thus far in Riyadh,

Tao Yang: Turning to Yalla games development in the future strategy. The gaming sector continues to demonstrate a mass growth potential that needs to lead us to driving digital transformation. Yalla is capturing that potential with consistent investment in meaningful and hot-go-game market, attracting many users with a wider range of game options tailored to their unique preference. Li, we have focused on exploration and development of Mikuo and Akogin, where we can leverage the extensive exercise, talented workforce, and abundant resources we have accumulated in the casual gaming sector.

Operator: Pardon me, Saifi, this is the operator. I'm, pardon me, we are having difficulties with the speaker line. Please stand by for just a moment while we reconnect Saifi's line. Okay. One moment. Thank you.

Operator: This is the operator. Pardon me, we are having difficulties with the speaker line. Please stand by for just a moment while we reconnect Safi's line. One moment, thank you. Thank you for standing by. Thank you for your patience at this time.

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu, Tao Yang Hu

Speaker Change: This is the operator.

Operator: Please stand by for just a moment while we reconnect Saifi's line. Okay, one moment. Thank you. BF-WATCH TV 2021, The BBC ???? plum web2 Anniversary, 2016 THE END, thanks for watching... Ladies and gentlemen, thank you for standing by. Thank you for your patience at this time. I will ask the President, Mr. Saifi Ismail, to continue.

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Tao Yang: Our product team, of currently developing and refining a strong pipeline of self-developed games that to be best throughout 2025. On the related note, we are proactively exploring AI technology applications to be optimized our team's productivity, particularly UI design, which has high requirements for detailed, calm, consuming, artistic work, by harnessing the power of AI. Our UI team has, not only in health, efficiency, leading to substantial improvement in the team's capacity, and the facilitating but the innovation in product features and in a great way. We are excited about AI's transformative potential, and we will continue to seek creative applications and tell our business to address product situation and operational athletes.

Tao Yang: And we mentioned on the American television, it's forget to become the largest online social networking and entertainment company in Minna. This coder represented another so-to-strap to world-hour vision. I'm proud of the many first we have achieved in this region, and it's Internet industry, creating a better digitalized for our users in the Yannach Miniature. Our commitment to Minna is people, and it's richer. It's univering, empowering our teams to grow in generation of new ideas that new products to meet Minna's users' evolving needs and facilitate digitalization throughout the region.

Saifi Ismail: Now, I will turn this go over to our present. Minna, slightly, is by you for a closer look at our way change to marketing. Another look at the flexing quarter operation and our product performance. We read out in our community. Our average monthly active user will increase the 14.1 person to get over here to invest in our million. So, the new user and local fans, allies without the blood of Yalla Event, this iconic online civil featured on the Apple Store and Google Store, who's the average day in consumption of gold coin games can see to our eyes for our anniversary event. We are also leveraging offline event to strengthen our product and brand awareness, including our global champion of online tournament series, the two tournaments we have thus far in the U.S.

Operator: Ladies and gentlemen, thank you for standing by. Thank you for your patience at this time. I will ask the President, Mr. Saifi Ismail, to continue. Just one moment. Please proceed, Saifi. Thank you.

Saifi Ismail: I will ask the president, Mr. Sofie, if may I to continue this one amendment? Please proceed, Sofie. Thank you.

Speaker Change: Ladies and gentlemen, thank you for standing by. Thank you for your patience at this time. I will ask the President, Mr. Saifi Ismail, to continue. Just one moment. Please proceed, Saifi.

Saifi Ismail: Please proceed, Saifi. Thank you. Bye, everyone, and thank you for your feedback on our product performance. We will use our efforts to enhance user experience and engagement this quarter. And we are pleased to see these efforts paying off across our YALLA community. Our average user increased by 3.1% year-over-year to 32 million, reflecting our project's enduring appeal. For example, our state anniversaries, the Award of Yalla event, and the Apple Store and Google Store. Prince Duariko Ta, Lever, and V, who are brothers and granddaughters.

Saifi Ismail: Thank you. Bye, everyone, and enjoy our product performance. We will use our efforts to enhance user experience and engagement this quarter, and we believe to keep these efforts being, of course, our partners, Yalla Community; our average user increases by 0.1% year-over-year. Zhang, Yang Hu, Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu, The World of Yalla Events. Apple Store and Google Store. Run to the radical path, who are brothers and granddaughters.

Saifi Ismail: Hi, everyone. And our product performance. We introduced our efforts to enhance user experience and engage in this quarter.

Speaker Change: Thank you. Bye, everyone.

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu, Tao Yang Hu,

Speaker Change: and our product performance.

Speaker Change: We will use our efforts to enhance user experience and engagement this quarter. And we are pleased to see these efforts paying off across our wide NPR community. Our average NPR users increased by 3.1% year-over-year.

Saifi Ismail: And we believe to keep the efforts being of first our wide and P.A.L.A.C.A.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C.C This collaboration underscores our commitment to innovation and promoting.

Speaker Change: [inaudible]

Speaker Change: Yang Hu, Tao Yang, Tao Yang

Speaker Change: All the world of your life.

Speaker Change: App Store and Google Store.

Karen Kuh: This is the operator, pardon me, we are having difficulties with the speaker line, please stand by for just a moment while we reconnect Safi's line, one moment, thank you. [inaudible] Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu, Xiaoyue Hu,[inaudible][inaudible] Xu Zeng, Xu Zeng, Xu Zeng, Xu Zeng[inaudible] Xu Zeng, Xu Zeng, Xu Zeng, Xu Zeng, Xu Zeng Xu Zeng, Xu Zeng, Xu Zeng Xu Zeng, Xu Zeng, Xu Zeng[inaudible] Xu Zeng, Xu Zeng Now let's take a look at our costs and expenses.

Speaker Change: 11th. 12th. 13th. 14th. 15th. 16th. 17th. 18th. 19th. 20th. 21st. 22nd. 23rd. 24th. 25th. 26th. 27th. 28th. 29th. 30th. 30th. 31st. 32nd. 32nd. 33rd. 33rd. 34th. 35th.

Saifi Ismail: The tournaments we held thus far in Riyadh and Baghdad were such hits, attracting over 150,000 registered players and garnering overwhelming positive feedback from participants. In June, we celebrated the success with a magnificent live show at Burj Khalifa in Dubai. Yalla Group is a partner of the Dubai Department of Economy and Tourism, DAP, which represents Dubai's sports and games D.E.F. in Hebron.

Saifi Ismail: Thank you all for attending our online tournament series. The tournaments we held thus far in Riyadh and Baghdad were such hits, attracting over 150,000 registered players and garnering overwhelming positive feedback from back to back. In June, we celebrated the success with a magnificent live show at Burj Khalifa in Dubai, the first full instruction out of several assemblies at MENA's industry facilities. Offering events like these increases members' engagement with our products and enhances our brand influence locally. Further, unlocking the MENA region's potential.

Speaker Change: were brother and brother-in-law.

Speaker Change: The tournament we held thus far in Riyadh, Amritsar, where Ash hits.

Speaker Change: Attracting over 150,000 registered players and garnering overwhelming positive feedback from participants.

Speaker Change: In June, we celebrated the success with a magnificent live show in Burj Khalifa, Dubai.

Speaker Change: Okay.

Saifi Ismail: We are also thrilled to announce that Yalla partnered with the Dubai Department of Economy and Tourism, DAP, to defend Dubai's sports and games digital DEF in April. As part of the collaboration, Yalla Ludo hosted an online tournament, Game Battle, with DEF, attracting over 4 million participants. We incorporated iconic Dubai landmarks and centers into Ludo's interface, including team sites, board games, and above frames, providing players an immersive gaming experience celebrating Dubai's vibrant culture.

Speaker Change: and looking at the region's potential. We have also still announced that we will partner with the Dubai Department of Economy and Tourism, DAP.

Speaker Change: Dubai Sports and Games Digital DEF in April. As part of the collaboration, Yaludo hosted an online tournament, Game Battle, with DEF, attracting over 4 million participants.

Saifi Ismail: As part of the collaboration, Yalla Group hosted an online tournament, Game Battle with D.E.F., attracting over 4 million participants. We incorporated iconic Dubai landmarks and centers into Ludo's interface, including team sites, board games, and above the frames, providing players an immersive gaming experience celebrating Dubai's vibrant culture. This collaboration underscores our commitment to innovation and promotion. Finally, we are extremely honored to receive a prestigious Dubai Games First Award at MENA's Big Industry Outlook 2024, held at the world-renowned Dubai Expo Summit.

Speaker Change: We incorporated ICANN Dubai Landmarks and Central Toulouse Interface.

Speaker Change: including team fights, board games, and above the frame. Providing players an immersive gaming experience. Celebrating Dubai's fighting culture. This collaboration underscores our commitment to innovation and promoting...

Saifi Ismail: This collaboration underscores our commitment to innovation and promoting global innovation. Finally, we are extremely honored to receive a prestigious Dubai Games First Award at the MENA's Build Industry Awards 2024, held at the World Renowned Dubai Expo Summit. This award celebrates the region's top talent in game development, publishing, and support services. Yalla Group was selected by a panel of 80 industry experts to take the top spot in the Dubai Games Star category, a testament to our remarkable success, influence, and innovation in gaming, as well as our commitment to fostering growth across MENA's gaming industry.

Saifi Ismail: Thank you.

Saifi Ismail: Finally, we are extremely honored to receive prestigious Dubai Games first award, at the mean as the industry of 2024 held at the border in all the big sports summit. These awards represent the region's two talents in the intensive development, establishing support services. The yellow group was selected by a banal of 80 industries, but the top sports they do buy games to start at the beginning. A testament to our remarkable success, influence, and innovation in deepening, as well as our commitment to first-earning growth across in-and-gaming industries.

Yang Hu: Yang Hu, Tao Yang Hu, Tao Yang Hu,

Speaker Change: and others. Thank you. Thank you.

Speaker Change: Finally, we are extremely honored to receive the prestigious Dubai Games First Award at the MENA's Build Industry Awards 2024, held at the World Renown Dubai Expo Summit. This award celebrates the region's top talent in game development, publishing, and support services.

Saifi Ismail: This award celebrates the region's top talent in game development, publishing, and support services. Yalla Group was selected by a panel of 80 industry experts to take the top spot in the Dubai Games Star category, a testament to our remarkable success, influence, and innovation in gaming, as well as our commitment to fostering growth across MENA's gaming industry.

Speaker Change: The yellow group was selected by a panel of 80 industry experts.

Speaker Change: for the top spot in the Dubai Games Star category. A testament to our remarkable success, influence, and innovation in gaming, as well as our commitment to fostering growth across the gaming industry.

Saifi Ismail: I am grateful to the MENA Games Industry Accords Organization for their recognition and look forward to further shaping the industry's future as the largest online social networking and gaming platform in the MENA region. In conclusion, throughout the past eight years, we have established a strong presence in the MENA region by creating innovative products that allow local users to benefit and reflect. We have also consistently fostered extensive collaboration with local and indigenous communities, promoting the growth of the digital economy and the internet industry.

Saifi Ismail: We are grateful to the MENA Games Industry Awards organization for their recognition and look forward to further shaping the industry's future as the largest online social networking and gaming platform in the MENA region. In conclusion, throughout the past eight years, we have established a strong presence in MENA by creating innovative projects that meet local users' habits and preferences. We have also consistently fostered extensive collaboration with local and international communities, promoting the growth of the digital economy and the internet industry.

Saifi Ismail: Our great ones, the mean-a-game industry awards organization for their recognition and look forward to further saving the industry's future, as the largest online social networking gaming platform in the mean-a-reason.

Speaker Change: are grateful to the MENA Games Industry Accords Organization for their recognition and look forward to further shaping the industry's future as the largest online social networking and gaming platform in the MENA region.

Saifi Ismail: In conclusion, throughout the past eight years, we have established a strong stance in media. I create innovative projects that allow local youths to have a better relationship with also constantly.

Speaker Change: In conclusion, throughout the past eight years, we have established a strong presence in MENA by creating innovative products that allow local users to inhabit and refuge in MENA. We have also consistently fostered extensive collaboration with local governments.

Saifi Ismail: To start the extensive collaboration with local and business community, bringing the growth of the digital economy and the industry as a seasoned leader in online social networking and games, we proudly act heroically in the digital transformation. Always, our region to become number one online social networking and interdisciplinary platform in the mean-a-reason.

Speaker Change: and others with communities, protecting the growth of the digital economy and the internet industry. As business leaders in online social networking and games, we proudly play a key role in the mission of digital transformation.

Saifi Ismail: As business leaders in online, social networking, and games, we proudly play a key role in the media and digital transformation. Our vision is always to become the number one online social networking and entertainment platform in the Middle East. With that, I will now turn the call over to the Chief of Staff for the Office of Financial Action and Results.

Saifi Ismail: As a region's leader in online social networking and games, we proudly play a key role in the MENA digital platform. Thank you all for joining us for the first ever online social networking and entertainment platform in China. With this, I will now turn the call over to the CFO of China Resolve. Thank you, Saifi. Hello, everyone.

Speaker Change: Thank you all for joining us today for the first ever online social networking and entertainment platform in Armenia. With that, I will now turn the call over to Siafari, who will give us a brief financial announcement.

Karen Kuh: I will now take over to see if that would be possible for the financial and regional development of the digital economy. Thank you, Safei.

Karen Hu: Thank you, Saifi. Hello, everyone.

Karen Kuh: Hello, everyone. Thank you for joining us today. Our financial performance remained robust through the second quarter of 2024. Our top line, again, ceded our expectations and assistant our year-over-year revenue growth momentum, as we stroll for high-quality development and user growth. Our consistent operating efficiency enhancements also continue to yield positive results. Our net income, our not-margined growth by 2.9 percentage points year-over-year to 38.6 percent, while net income increased by 10.9 percent to 31.4 million U.S. dollars. By leveraging our solid business fundamentals, we will remain primed to capture new business opportunities and deliver sustainable value to our all stakeholders in the long run.

Karen Hu: Thank you for joining us today. Our financial performance remained robust through the second quarter of 2024. Our top line again exceeded our expectations and sustained our year-over-year revenue growth momentum as we strove for high-quality development and user growth. Our consistent operating efficiency enhancements also continue to yield positive results.

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu, Tao Yang Hu,

Siafari: Thank you, Saifi. Hello, everyone. Thank you for joining us today. Our financial performance remained robust through the second quarter of 2024. Our top line again exceeded our expectations and sustained our year-over-year revenue growth momentum as we strove for high-quality development and user growth.

Siafari: Our consistent operating efficiency enhancements also continue to yield positive results.

Karen Hu: Our net margin rose by 2.9 percentage points year-over-year to 38.6%, while net income increased by 10.9% to US$31.4 million. Leveraging our solid business fundamentals, we will remain primed to capture new business opportunities and deliver sustainable value to all stakeholders in the long run. Let's move on to our detailed financials for the second quarter of 2024. Our revenues were $81.2 million in the second quarter of 2024, a 2.5% increase from $79.2 million in the second quarter of last year. The increase was primarily driven by the broadening of our user base and our enhanced monetization capability.

Siafari: Our net margin rose by 2.9 percentage points year-over-year to 38.6 percent, while net income increased by 10.9 percent to 31.4 million U.S. dollars.

Siafari: By leveraging our solid business fundamentals, we will remain primed to capture new business opportunities and deliver sustainable value to all stakeholders in the long run.

Karen Kuh: Let's move on to our detailed financials for the second quarter of 2024. Our revenues were 81.2 million U.S. dollars in the second quarter of 2024, a 2.5 percent increase from 79.2 million U.S. dollars in the second quarter of last year. The increase was primarily driven by the broadening of our user base and our enhanced monetization capability. Our solid revenue growth was also partially attributable to the significant increase in our pool, which grew from 5.8 U.S. dollars in the second quarter of 2023 to 6.6 U.S. dollars in the second quarter of 2024.

Karen Hu: Our solid revenue growth was also partially attributable to a significant increase in APU, which grew from $5.8 in the second quarter of 2023 to $6.6 in the second quarter of 2024. Now, let's take a look at our costs and expenses. Our total costs and expenses were US$51.6 million in the second quarter of 2024, a 6.8% decrease from US$55.3 million in the same period of last year. Our cost and revenues increased by 2.5% to 29 million U.S. dollars in the second quarter of 2024 from 28.3 million U.S. dollars in the same period of last year, primarily due to higher commission fees paid to third-party payment platforms as a result of increasing revenue generated. However, cost of revenues as a percentage of total revenues remained relatively stable at 35.7% in the second quarter of 2024.

Karen Hu: Our solid revenue growth was also partially attributable to a significant increase in APU, which grew from $5.8 in the second quarter of 2023 to $6.6 in the second quarter of 2024. Now, let's take a look at our costs and expenses. Our total costs and expenses were US$51.6 million in the second quarter of 2024, a 6.8% decrease from US$55.3 million in the same period of last year. Our cost and revenues increased by 2.5% to 29 million U.S. dollars in the second quarter of 2024 from 28.3 million U.S. dollars in the same period of last year, primarily due to higher commission fees paid to third-party payment platforms as a result of increasing revenue The cost of revenues as a percentage of total revenues remained relatively stable at 35.7% in the second quarter of 2024.

Karen Hu: Our selling and marketing expenses were $8.5 million in the second quarter of 2024, a 31.4% decrease from $12.4 million in the same period of last year, primarily driven by our more disciplined advertising and promotion approach. Selling and marketing expenses as a percentage of total revenues decreased from 15.6% in the second quarter of 2023 to 10.5% in the second quarter of 2024. Our general and administrative expenses were $7.6 million in the... A 5.5% decrease from $8 million in the same period of last year, primarily driven by lower share-based compensation expenses recognized in the second quarter of 2024.

Speaker Change: Let's move on to our detailed financials for the second quarter of 2024.

Speaker Change: Our revenues were $81.2 million in the second quarter of 2024.

Speaker Change: a 2.5% increase from

Speaker Change: 79.2 million U.S. dollars in the second quarter of last year. The increase was primarily driven by the broadening of our user base and our enhanced monetization capability.

Speaker Change: Our solid revenue growth was also partially attributable to the significant increase in Apu, which grew from $5.8 in the second quarter of 2023 to $6.6 in the second quarter of 2024.

Karen Kuh: Now let's take a look at our costs and expenses. Our total costs and expenses are 51.6 million US dollars in the second quarter of 2024. A 6.8% decrease from 55.3 million US dollars in the same period of last year. Our cost and revenues increased by 2.5% to 29 million US dollars in the second quarter of 2024, from 28.3 million US dollars in the same period of last year. Primarily due to hair commission fees paid to the party payment platforms as a result of increasing RAM news generated. Cost of RAM news as percentage of total RAM news remains relatively stable at 35.7 million in the second quarter of 2024.

Karen Hu: General and administrative expenses as a percentage of total revenues decreased from 10.1% in the second quarter of 2023 to 9.3% in the second quarter of 2024. Our technology and project development expenses were $6.5 million in the second quarter of 2024, a 1.6% decrease from $6.6 million in the same period of last year, primarily driven by lower share-based compensation expenses recognized in the second quarter of this year. Technology and product development expenses as a percentage of total revenue decreased from 8.3% in the second quarter of 2023 to 8% in the second quarter of 2024.

Karen Hu: General and administrative expenses as a percentage of total revenues decreased from 10.1% in the second quarter of 2023 to 9.3% in the second quarter of 2024. Our technology and product development expenses were US$6.5 million in the second quarter of 2024, a 1.6% decrease from US$6.6 million in the same period of last year, primarily driven by lower share-based compensation expenses recognized in the second quarter of this year. Technology and product development expenses as a percentage of total revenue decreased from 8.3% in the second quarter of 2023 to 8% in the second quarter of 2024.

Speaker Change: Now let's take a look at our costs and expenses.

Speaker Change: Our total costs and expenses were $51.6 million in the second quarter of 2024, a 6.8% decrease from $55.3 million in the same period of last year.

Speaker Change: Our cost and revenues increased by 2.5% to 29 million U.S. dollars in the second quarter of 2024, from 28.3 million U.S. dollars in the same period of last year.

Speaker Change: primarily due to higher commission fees paid to third-party payment platforms as a result of increasing revenue generated.

Speaker Change: Cost of revenues as percentage of total revenues remained relatively stable at 35.7% in the second quarter of 2024.

Karen Kuh: Our selling and marketing expenses were 8.5 million US dollars in the second quarter of 2024. A 31.4% decrease from 12.4 million US dollars in the same period of last year. Primarily due to them by our more deeply planned advertising and promotion approach. Selling and marketing expenses as percentage of total RAM news decreased from 15.6% in the second quarter of 2023 to 10.5% in the second quarter of 2024.

Speaker Change: Our selling and marketing expenses were $8.5 million in the second quarter of 2024, a 31.4% decrease from $12.4 million in the same period of last year.

Speaker Change: primarily driven by our more disciplined advertising and promotion approach.

Speaker Change: Selling and marketing expenses as percentage of total revenues decreased from 15.6% in the second quarter of 2023 to 10.5% in the second quarter of 2024.

Karen Kuh: Our general and administrative expenses were 7.6 million in the second quarter of 2024. A 5.5% decrease from 8 million US dollars in the same period of last year. Primarily due to them by lower share-based compensation expenses recognized in the second quarter of 2024. General and administrative expenses as a percentage of total RAM news decreased from 10.1% in the second quarter of 2023 to 9.3% in the second quarter of 2024.

Speaker Change: Our general and administrative expenses was $7.6 million in the last year.

Speaker Change: second quarter of 2024, a 5.5% decrease from $8 million in the same period of last year, primarily driven by lower share-based compensation expenses recognized in the second quarter of 2024.

Speaker Change: General and administrative expenses as percentage of total revenues decreased from 10.1% in the second quarter of 2023 to 9.3% in the second quarter of 2024.

Karen Kuh: Our technology and the product development expenses were 6.5 million US dollars in the second quarter of 2024. A 1.6% decrease from 6.6 million US dollars in the same period of last year. Primarily due them by lower share-based compensation expenses recognized in the second quarter of this year. Technology and the product development expenses as percentage of total RAM news decreased from 8.3% in the second quarter of 2023 to 8% in the second quarter of 2024.

Speaker Change: Our technology and product development expenses were 6.5 million U.S. dollars in the second quarter of 2024.

Speaker Change: A 1.6 percent decrease from 6.6 million U.S. dollars in the same period of last year, primarily driven by lower share-based compensation expenses recognized in the second quarter of this year.

Speaker Change: Technology and product development expenses as percentage of total revenue decreased from 8.3% in the second quarter of 2023 to 8% in the second quarter of 2024.

Karen Kuh: As such, our operating income was 29.6 million US dollars in the second quarter of 2024. A 23.8% increase from 23.9 million US dollars in the second period in the same period of last year. Excluding share-based compensation expenses, our non-GAAP operating income in the second quarter of 2024 was 33.5 million US dollars, up 13.9% year over year.

Karen Hu: As such, our operating income was 29.6 million U.S. dollars in the second quarter of 2024, a 23.8% increase from 23.9 million U.S. dollars in the same period of last year. Excluding share-based compensation expenses, our non-GAAP operating income in the second quarter of 2024 was $33.5 million, up 13.9% year-over-year. Our interest income was US$7.1 million in the second quarter of 2024, compared with US$4.6 million in the same period of 2023, primarily due to an increase in the interest rates applicable to the company's bank deposits.

Karen Hu: As such, our operating income was $29.6 million in the second quarter of 2024, a 23.8% increase from $23.9 million in the same period of last year. Excluding share-based compensation expenses, our non-GAAP operating income in the second quarter of 2024 was $33.5 million, up 13.9% year-over-year. Our interest income was $7.1 million in the second quarter of 2024, compared with $4.6 million in the same period of 2023, primarily due to an increase in the interest rates applicable to the company's bank deposits.

Speaker Change: As such, our operating income was $29.6 million in the second quarter of 2024, a 23.8% increase from $23.9 million in the same period of last year.

Speaker Change: Excluding share-based compensation expenses, our non-GAAP operating income in the second quarter of 2024 was $33.5 million, up 13.9% year-over-year.

Karen Kuh: Our interest income was $7.1 million US dollars in the second quarter of 2024, compared with $4.6 million US dollars in the period of 2023, primarily due to an increase in the interest rates applicable to the company's bank deposits. Our income tax expenses was $5.8 million US dollars in the second quarter of 2024, compared with $8.2 million US dollars in the same period of last year. The increase was primarily due to the introduction and implementation of UAE corporate tax law, which is effective for the financial years starting on or after June 1, 2023.

Speaker Change: Our interest income was 7.1 million U.S. dollars in the second quarter of 2024, compared with 4.8 billion U.S. dollars.

Speaker Change: Yang Hu, Tao Yang, Yang Hu, Tao Yang, Yang Hu, Tao Yang,

Speaker Change: period of 2023.

Speaker Change: mainly due to an increase in the interest rates applicable to the company's bank deposits.

Karen Hu: Our income tax expenses were 5.8 million U.S. dollars in the second quarter of 2024, compared with 821,000 U.S. dollars in the same period of last year. The increase was primarily due to the introduction and implementation of the UAE corporate tax law, which is effective for financial years starting on or after June 1, 2023.

Karen Hu: Our income tax expenses were 5.8 million U.S. dollars in the second quarter of 2024 compared with 821,000 U.S. dollars in the same period of last year. The increase was primarily due to the introduction and implementation of the UAE corporate tax law, which is effective for financial years starting on or after June 1, 2023.

Speaker Change: Our income tax expenses was US$5.8 million in the second quarter of 2024 compared with

Speaker Change: 821,000 U.S. dollars in the same period of last year.

Speaker Change: The increase was primarily due to the introduction and implementation of UAE corporate tax law, which is effective for the financial years starting on or after June 1, 2023.

Karen Kuh: Moving to our bottom line, our net income increased by 10.9% to $31.4 million US dollars in the second quarter of 2024, compared with $28.3 million US dollars in the same period of last year.

Karen Hu: Moving to our bottom line, our net income increased by 10.9% to $31.4 million in the second quarter of 2024, compared with $28.3 million in the same period of last year. Next, I would like to briefly review our liquidity and capital resources. Our cash position remained solid. As of June 30, 2024, we had cash and cash equivalents, restricted cash, term deposits, and short-term investments of $528.7 million compared with $535.7 million as of December 31, 2023.

Karen Hu: Moving to our bottom line, our net income increased by 10.9% to US$31.4 million in the second quarter of 2024, compared with US$28.3 million in the same period of last year. Next, I would like to briefly review our liquidity and capital resources. Our cash position remains solid. As of June 30, 2024, we had cash and cash equivalents, restricted cash, term deposits, and short-term investments of $528.7 million, compared with US$535.7 million as of December 31, 2023.

Speaker Change: Moving to our bottom line, our net income increased by 10.9% to 31.4 million U.S. dollars in the second quarter of 2024, compared with 28.3 million U.S. dollars in the same period of last year.

Speaker Change: Next, I would like to briefly review our liquidity and capital resources.

Speaker Change: Our cash position remained solid. As of June 30, 2024, we had cash and cash equivalents, restrict cash, term deposits and short-term investments of $528.7 million.

Karen Kuh: Our total costs and expenses are 51.6 million US dollars in the second quarter of 2024. A 6.8% decrease from 55.3 million US dollars in the same period of last year. Our cost and revenues increased by 2.5% to 29 million US dollars in the second quarter of 2024, from 28.3 million US dollars in the same period of last year. Primarily due to hair commission fees paid to the party payment platforms as a result of increasing RAM news generated.

Speaker Change: compared with $535.7 million as of December 31, 2023.

Karen Kuh: Under our 150 million US dollar US share repurchase program, that began on May 21, 2021, and has since been extended by our board. Through May 21, 2025, we have accumulatively repurchased $3,972,876 ETS or Class A ordinary shares in open market cash repurchases, totaling approximately $35.5 million US dollars as of June 30, 2024.

Karen Hu: Under our $150 million U.S. share repurchase program that began on May 21, 2021, and has since been extended by our board through May 21, 2025, we have accumulated repurchased 3,972,876 ADS, or Class A ordinary shares, in open market cash repurchases, totaling approximately $35.5 million as of June 30, 2024. Moving to our outlook, for the third quarter of 2024, we expect our revenues to be between $75 The above outlook is based on current market conditions and reflects companies' management's current and preliminary estimates of the market, Operating Conditions, and Customer Demand, which are all subject to change.

Karen Hu: Under our $150 million U.S. share repurchase program that began on May 21, 2021 and has since been extended by our board through May 21, 2025, we have accumulated $3,907,876 ADS, or Class A ordinary shares, in open market cash repurchases, totaling approximately $35.5 million as of June 30, 2024. Moving to our outlook, for the third quarter of 2024, we expect our revenues to be between $75 million and $8 The BAB Outlook is based on the current market conditions and reflects companies' management's current and preliminary estimates of the market, Operating Conditions, and Customer Demand, which are all subject to change.

Speaker Change: Under our $150 million U.S. share repurchase program that began on May 21, 2021 and has since been extended by our board through May 21, 2025.

Speaker Change: We have accumulatively repurchased 3,907,200

Karen Kuh: Cost of RAM news as percentage of total RAM news remains relatively stable at 35.7 million in the second quarter of 2024. Our selling and marketing expenses were 8.5 million US dollars in the second quarter of 2024. A 31.4% decrease from 12.4 million US dollars in the same period of last year. Primarily due to them by our more deeply planned advertising and promotion approach. Selling and marketing expenses as percentage of total RAM news decreased from 15.6% in the second quarter of 2023 to 10.5% in the second quarter of 2024.

Speaker Change: 876 ABS or class A ordinary shirts in the open market cash repurchases, totaling approximately $35.5 million as of June 30, 2024.

Karen Kuh: Moving to our look for the third quarter of 2024, we expect our revenues to be between $75 million US dollars and $82 million US dollars. The above outlook is based on the current market conditions and reflects companies' management, current and preliminary estimates of the markets and operating conditions, and customer demands, which are all subject to change.

Speaker Change: Moving to our outlook for the third quarter of 2024, we expect our revenues to be between $75 million and $82 million.

Speaker Change: The Bab Outlook is based on the current market conditions and reflects companies' management current and preliminary estimates of the markets, and operating conditions and customer demand, which are all subject to change.

Operator: This concludes our prepared remarks for today. Operator, we are now ready to take questions. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then 1 on your touch-tone phone.

Operator: This concludes our prepared remarks for today. We are now ready to take questions. Thank you.

Operator: This concludes our prepared remarks for today. Operator, we are now ready to take questions. Thank you. We will now begin the question and answer session. To ask a question, you may press Star.

Speaker Change: This concludes our prepared remarks for today. Operator, we are now ready to take questions.

Karen Kuh: Our general and administrative expenses were 7.6 million in the second quarter of 2024. A 5.5% decrease from 8 million US dollars in the same period of last year. Primarily due to them by lower share based compensation expenses recognized in the second quarter of 2024. General and administrative expenses as percentage of total RAM news decreased from 10.1% in the second quarter of 2023 to 9.3% in the second quarter of 2024. Our technology and the product development expenses were 6.5 million US dollars in the second quarter of 2024.

Operator: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then 1 on your touch-tone phone. And to withdraw your question, please press star, and then 2. At this time, we will take the first question from the line of Sarah Hu from Haitong International. Please go ahead. Thank you so much for coming.

Operator: We will now begin the question and answer session. To ask the question, you may press star then 100 touch phone phones. And to withdraw your question, please press star and then two.

Speaker Change: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then 1 on your touch-tone phone. And to withdraw your question, please press star, and then 2.

Sarah Hume: At this time, we will take the first question from the line of Sarah Hume from High Tong International. Please go ahead. Thank you, management, for taking my questions, and congratulations on a solid quarter.

Operator: And to withdraw your question, please press star and then 2. At this time, we will take the first question from the line of Sarah Hu from Haitong International. Please go ahead. Thank you management for taking my questions and congratulations on a solid quarter. Could management elaborate more on the sales and marketing strategy and trends in 2024? Thank you. Hi Sarah.

Speaker Change: At this time, we will take the first question from the line of Sarah Hu from Haitong International. Please go ahead.

Sarah Hume: So, please management, elaborate more on the South American spreadsheet and trends in 2024. Thank you.

Sarah Hu: Thank you, management, for taking my questions and congratulations on a solid quarter. So could management elaborate more on the sales and marketing strategy and trends in 2024? Thank you.

Unidentified Speaker: Hi Sara, thank you for your question. We have insisted on quality growth in 2024, which requires consistent optimization of our sales and marketing strategy and efficiency. This includes more detailed budget management, a focus on ROI, and diversifying user acquisition channels online and offline, among other things. As you can see from the financial report, our efforts have resulted in a solid improvement in our sales and marketing efficiency over the past two quarters.

Unspecified Yalla Representative: Thank you for your question. We have insisted on a quality growth strategy in 2024, which requires consistently optimizing our sales and marketing strategy and efficiency. This includes more detailed budget management, a focus on ROI, and diversifying user acquisition channels online and offline, among other things.

Saifi Ismail: Hi, Sarah. Thank you for your question. We have insisted on quality growth strategy in 2024, which requires consistency optimizing ourselves on marketing strategy and efficiency. This includes more detailed budget management, a focus on ROI, and diversifying user acquisition channels online and offline, among other things. As you can see from the financial report, our efforts have resulted in a solid improvement in our sales and marketing efficiency over the past two quarters. We think our sales and marketing expenses will remain at a similar level for the second half of 2024, though we may launch new products for testing Q4.

Speaker Change: Hi, Sarah. Thank you for your question. We have insisted on quality growth strategy in 2024, which requires consistent optimizing our sales and marketing strategy and efficiency.

Karen Kuh: A 1.6% decrease from 6.6 million US dollars in the same period of last year. Primarily due them by lower share based compensation expenses recognized in the second quarter of this year. Technology and the product development expenses as percentage of total RAM news decreased from 8.3% in the second quarter of 2023 to 8% in the second quarter of 2024. As such our operating income was 29.6 million US dollars in the second quarter of 2024.

Speaker Change: This includes more detailed budget management, a focus on ROI, and diversifying user acquisition channels online and offline, among other things.

Unspecified Yalla Representative: As you can see from the financial report, our efforts have resulted in a solid improvement in our sales and marketing efficiency over the past two quarters. We think our sales and marketing expenses will remain at a similar level for the second half of 2024, though we may launch new products for testing in Q4. The feedback indicates we need to increase our sales and marketing budget to promote these products. We will adjust our guidance accordingly. Thank you. Thank you. Our next question today will come from Xueqing Zhang of CICC. Please go ahead with your question. Thanks management for taking my question. Congratulations on a solid quarter.

Speaker Change: As you can see from the financial report, our efforts have resulted in a solid improvement in our sales and marketing efficiency over the past two quarters.

Unidentified Speaker: We think our sales and marketing expenses will remain at a similar level for the second half of 2024. Though we may launch new products for testing in Q4, the feedback indicates we need to increase our sales and marketing budget to promote these products. We will adjust our guidance accordingly. Thank you. Thank you. Our next question today will come from Xueqing Zhang of CICC.

Speaker Change: We think our sales and marketing expenses will remain at a similar level for the second half of 2024, though we may launch new products for testing Q4. The feedback indicates we need to increase our sales and marketing budget to promote these products. We will adjust our guidance accordingly. Thank you.

Saifi Ismail: We feedback indicates we need to increase our sales and marketing budget to promote these products. We will adjust our guidance accordingly.

Karen Kuh: A 23.8% increase from 23.9 million US dollars in the second period in the same period of last year. Excluding share based compensation expenses, our non-gap operating income in the second quarter of 2024 was 33.5 million US dollars up 13.9% year over year. Our interest income was $7.1 million US dollars in the second quarter of 2024, compared with $4.6 million US dollars in the period of 2023, primarily due to an increase in the interest rates applicable to the company's bank deposits.

Saifi Ismail: Thank you.

Xueqing Song: Our next question today will come from Xueqing Song of CICC. Please go ahead with your question. A sense of movement for taking my question; congratulations on the solid culture.

Speaker Change: Thank you.

Speaker Change: Our next question today will come from Xiuquanzhang of CICC. Please go ahead with your question.

Operator: Please go ahead with your question.

Operator: You did well in the first half of this year, so how are the company's key products performing in the third quarter and what's the management outlook for the four years in 2024? Thank you. Hi, Xueqing. Good morning, this is Yang.

Speaker Change: Thanks management for taking my question. Congratulations on a solid quarter. You did well in the first half of this year. So how are the company's key products performing in third quarter and what's the management's outlook for the four year in 2024? Thank you.

Xueqing Song: You do well in the first half of this year, so how are the companies' key products performing in their culture, and what's the management also for the four-year in 2024? Thank you.

Tao Yang: Hi, Xueqing, good morning. This is Yao. Thank you for your question. For 3Q 2024, according to what we have observed over the past month and a half, Yao and Yao Lido, our flagship applications, are performing well in the stability as we continue to roll out new features and operating events. And you can also see the chance from the guidance we provided earlier. We thank Q3. It's lucky to outperform Q2 at this point.

Tao Yang: Thank you for your question. For 3Q2024, according to what we have observed over the past month and a half, Yalla and Yalla Ludo, our flagship applications, are performing well and stably as we continue to roll out new features and operating events. And you can also see the chat.

Tao Yang: Hi, Xueqing. Good morning. This is Yang.

Speaker Change: Good morning, this is Yang. Thank you for your question.

Tao Yang: Thank you for your question. Thank you, 2024. According to what we have observed over the past month and a half, Yalla and Yalla Ludo, our flagship applications, are performing well and stably as we continue to roll out new features and operating events. And you can also see the chat. From the guidance we provided earlier, we think Q3 is likely to outperform Q2 at this point, on the margin side. The Yalla Ludo team is organizing a series of offline tournaments across different cities in MENA to increase our brand's local impact efficiently, penetrate the market, and reach more users through offline channels with higher ROI.

Karen Kuh: Our income tax expenses was $5.8 million US dollars in the second quarter of 2024, compared with $8.2 million US dollars in the same period of last year. The increase was primarily due to the introduction and implementation of UAE corporate tax law, which is effective for the financial years starting on or after June 1, 2023. Moving to our bottom line, our net income increased by 10.9% to $31.4 million US dollars in the second quarter of 2024, compared with $28.3 million US dollars in the same period of last year.

Speaker Change: 3Q2024, according to what we have observed over the past month and a half, Yela and Yelaludo, our flagship applications, are performing well and stably as we continue to roll out new features and operating events.

Tao Yang: From the guidance we provided earlier, we think Q3 is likely to outperform Q2 at this point, on the margin side. The Yalla Ludo team is organizing a series of offline tournaments across different cities in MENA to increase our brand's local impact efficiently, penetrate the market, and reach more users through offline channels with higher ROI. So, you can see that our operating efficiency is consistently improving. For the rest of 2024, I think we will maintain this solid and stable chain with improved efficiency. I hope this answers your question. Thank you. Our next question will come from Chenghao Li of CICC. Please go ahead.

Speaker Change: and you can also see the chat from the guidance we provided earlier. We think Q3 is likely to outperform Q2 at this point.

Tao Yang: On the margin side, the Yao and Yao Lido team is organizing a series of offline tournaments across different cities in the near to increase our brand's local impact, efficiently penetrate the market, and reach more users through offline channels with higher ROI. So you can see that our operating efficiency is consistently improving. For the rest of 2024, I think we will maintain the solid and stable chance with improved efficiency.

Speaker Change: on the margin side.

Speaker Change: The Yellow Lido team is organizing a series of offline tournaments across different cities in MENA to increase our brand's local impact, efficiently penetrate the market.

Karen Kuh: Next, I would like to briefly review our liquidity and capital resources. Our cash position remains solid. As of June 30, 2024, we had cash and cash equivalents, restrict cash, term deposits and short term investments of $528.7 million US dollars, compared with $535.7 million US dollars as of December 31, 2023. Under our 150 million US dollar US share repurchase program, that began on May 21, 2021 and has since been extended by our board. Through May 21, 2025, we have accumulatively repurchased $3,972,876 ETS or class A ordinary shares in open market cash repurchases, totaling approximately $35.5 million US dollars as of June 30, 2024.

Speaker Change: and reach more users through offline channels with higher ROI.

Tao Yang: So you can see that our operating efficiency is consistently improving. For the rest of 2024, I think we will maintain this solid and stable chain with improved efficiency. I hope this answers your question. Thank you.

Speaker Change: So you can see that our operating efficiency is consistently improving.

Speaker Change: For the rest of 2024, I think we will maintain this solid and stable chain with improved efficiency. I hope this answers your question. Thank you.

Tao Yang: Hope this answers your question.

Tao Yang: Thank you.

Chenghao Li: Our next question will come from Shanghai League of CIC. Please go ahead. Hi, ladies and gentlemen. Thanks for taking my question, and congratulations on our solid culture. My question is about our game business. How should we view the yellow game strategy and the Christmas share Mochala on your game's test feedback and the last time line. Thank you.

Speaker Change: Our next question will come from Shenghao Li of CICC.

Operator: Please go ahead. Hi. Good afternoon.

Operator: Hi Management, thanks for taking my question and congratulations on a solid quarter. My question is about our game business; how should we view Yalla Games' strategy, and could Management share more color on your game's task feedback and launch timeline? Thank you.

Speaker Change: Please go ahead.

Shenghao Li: Hi, management. Thanks for taking my question. And congratulations on a solid quarter. My question is about our game business. How should we view the Allied Games strategy? And could management share more color on new games, task feedback, and launch timeline? Thank you.

Chenghao Li: Hi, Chen Hao. Thank you for your question. For yellow game, this year we are allocating more resources to our e-house team to self-developed products. Many focusing on mid-core games. We are accumulating valuable experience and broadening our team's expertise through this process, which will empower us to move forward with confidence in the future. We currently have three self-developed record games in our pipeline and plan to start testing by the end of this year. There we need sometimes to work on iterations based on the feedback we achieved from the users before we start on scale promotions. Meanwhile, we are also proactive in discussing collaborations with potential partners in the game industry.

Unidentified Speaker: Hi Chenghao, thank you for your question. For Yalla Games, this year, we are allocating more resources to our in-house team's self-developed products, mainly focusing on mid-core games. We are accumulating valuable experience and broadening our team's expertise through this process, which will empower us to move forward with confidence in the future. We currently have three self-development core games in our pipeline and plan to start testing by the end of this year. Then we need some time to work on iterations based on the feedback we receive from the users before we start on-scale promotion. Meanwhile, we are also proactively discussing collaborations with potential partners in the game industry. We'd like to know once there's anything we can share publicly. Thank you. Our next question today.

Unspecified Yalla Representative: For Yalla Games, this year, we are allocating more resources to our in-house team's self-developed products, mainly focusing on mid-core games. We are accumulating valuable experience and broadening our team's expertise through this process, which will empower us to move forward with confidence in the future. We currently have three self-developed mid-core games in our pipeline and plan to start testing by the end of this year. Then we need some time to work on iterations based on the feedback we receive from users before we start on-scale promotion. Meanwhile, we are also proactively discussing collaborations with potential partners in the game industry. We'd like to know when there's anything we can share publicly.

Speaker Change: Hi Cheng Hao, thank you for your question. For Yellow Game, this year we are allocating more resources to our in-house team to self-develop products.

Speaker Change: Many focusing on mid-core games. We are accumulating valuable experience and broadening our team's expertise through this process Which will empower us to move forward with confidence in the future

Karen Kuh: Moving to our look for the third quarter of 2024, we expect our revenues to be between $75 million US dollars and $82 million US dollars. The above outlook is based on the current market conditions and reflects companies' management, current and preliminary estimates of the markets and operating conditions and customer demands, which are all subject to change.

Speaker Change: We currently have three self-development core games in our pipeline and plan to start testing by the end of this year. Then we need some time to work on iterations based on the feedback we receive from the users before we start on-scale promotions.

Speaker Change: Meanwhile, we are also proactively discussing collaborations with potential partners in the game industry. We'd like to know once there's anything we can share publicly. Thank you.

Chenghao Li: We let you know once there's anything we can share publicly.

Chenghao Li: Thank you.

Operator: This concludes our prepared remarks for today. We are now ready to take questions. Thank you. We will now begin the question and answer session. To ask the question, you may press star then 100 touch phone phones. And to withdraw your question, please press star and then two.

Operator: Our next question today will come from Kaifang Jia of CITIC. Please go ahead.

Operator: Thank you. Our next question today will come from Kaifang Jia of CITIC. Please go ahead. Hi management.

Speaker Change: Yang Hu, Tao Yang, Tao Yang

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu, Tao Yang Hu,

Speaker Change: Our next question today will come from Kaifong Zia of CITIC. Please go ahead.

Kaifang Jia: Hi, Management. Thanks for taking my question. I have a question about your overseas market.

Unspecified Yalla Representative: Thanks for taking my question. I have a question about your overseas market. So would the company consider expanding its company scope outside the Mideast?

Kaifong Zia: Hi, management. Thanks for taking my question. I have a question about your overseas market. So would the company consider bordering your company scope outside the Mideast? Thank you.

Sarah Hume: At this time, we will take the first question from the line of Sarah Hume from High Tong International. Please go ahead. Thank you, management for taking my questions and congratulations on a solid quarter.

Kaifang Jia: So, Martin Kaifang, thank you for your question. As always, we will remain dedicated to the Middle East market, while also keeping the eye on opportunities in other markets. For instance, we currently have patches on which focuses on the South American market, which is one of our tasks to explore the overseas markets. Going forward, if we see that new products have popularization potential, not only in China, but also in other markets, we may consider conducting global promotions. However, our main focus is undoubtedly on the Middle East market, where we have unique advantages and continue to leverage our core capabilities to allow our Google's potential.

Unspecified Yalla Representative: Thank you. Good morning, Kaifeng. Thank you for your question. As always, we will remain dedicated to the Middle East market while also keeping an eye on opportunities in other markets. For instance, we currently have patches that focus on the South American market, which is one of our attempts to explore the overseas market, going forward. If we see that new products have popularization potential, not only in MENA but also in other markets, we may consider conducting global promotion. However, our main focus is undoubtedly on the Middle East market, where we have unique advantages and can continue to leverage our core capabilities to enhance our growth potential.

Unidentified Speaker: Good morning, Kaifeng. Thank you for your question. As always, we will remain dedicated to the Middle East market while also keeping an eye on opportunities in other markets. For instance, we currently have patches that focus on the South American market, which is one of our attempts to explore the overseas market, going forward. If we see that new products have popularization potential, not only in MENA but also in other markets, we may consider conducting global promotion. However, our main focus is undoubtedly on the Middle East market, where we have unique advantages and can continue to leverage our core capabilities to unlock our growth potential.

Kaifong Zia: Good morning, Kaifeng. Thank you for your question. As always, we will remain dedicated to the Middle East market while also keeping an eye on opportunities in other markets.

Saifi Ismail: So, please management elaborate more on the South American spreadsheet and trends in 2024. Thank you.

Kaifong Zia: For instance, we currently have patches, which focuses on the South American market, which is one of our attempts to explore the overseas market.

Saifi Ismail: Hi, Sarah. Thank you for your question. We have insisted on quality growth strategy in 2024, which requires consistency optimizing ourselves on marketing strategy and efficiency. This includes more detailed budget management, a focus on ROI and diversifying user acquisition channels online and offline, among other things. As you can see from the financial report, our efforts have resulted in a solid improvement in our sales and marketing efficiency over the past two quarters. We think our sales and marketing expenses will remain at a similar level for the second half of 2024, though we may launch new products for testing Q4. We feedback indicates we need to increase our sales and marketing budget to promote these products. We will adjust our guidance accordingly.

Operator: Thank you.

Kaifong Zia: Going forward, if we see that new products have popularization potential, not only in MENA, but also in other markets, we may consider conducting global promotions.

Kaifong Zia: However, our main focus is undoubtedly on the Middle East market, where we have unique advantages and can continue to leverage our core capabilities to unlock our growth potential.

Lincoln Kong: Thank you very much.

Operator: Thank you very much.

Lincoln Kong: Our next question today will come from Lincoln Kong of Goldman Sachs. Please go ahead. Thank you, management, for taking my question. So my question is about capital allocation.

Karen Hu: Our next question today will come from Lincoln Kong of Goldman Sachs. Please go ahead.

Operator: Thank you very much. Our next question today will come from Lincoln Kong of Goldman Sachs. Please go ahead. Thank you management for taking my question. So my question is about capital allocation.

Kaifong Zia: Thank you very much.

Speaker Change: Our next question today will come from Lincoln Kong of Goldman Sachs. Please go ahead.

Karen Hu: Thank you management for taking my question. So my question is about capital allocation. So how does the company view itself in terms of increasing shareholder return versus Thank you.

Lincoln Kong: Thank you, management, for taking my question. So my question is about capital allocation. So how does the company view in terms of increasing the shareholder return versus...

Xueqing Song: Our next question today will come from Xueqing Song of CICC. Please go ahead with your question. A sense of movement for taking my question, congratulations on the solid culture.

Karen Hu: So how does the company view itself in terms of increasing shareholder return versus, Thank you. Hi Lincoln, this is Karen. Thank you for your question. Yalla is dedicated to returning value to shareholders through our share repurchase program. As of June 30, 2024, we have deployed a total of US$35.5 million for share repurchases.

Karen Kuh: So how does the company view in terms of increasing the shareholder return versus continuing to invest in any new initiatives or on our practice? Thank you.

Speaker Change: Thank you.

Yao: You do well in the first half of this year, so how are the companies' key products performing in their culture, and what's the management also for the four-year in 2024? Thank you.

Karen Kuh: Hi, Lincoln. This is Karen. Thank you for your question. Yala is dedicated to return value to shareholders throughout our share repurchase program. As of June 30, 2024, we have deployed a total of 35.5 million US dollars for share repurchases. Given our solid fundamentals, we will continue to conduct our share repurchase program while considering cash dividend payments in due course. We will keep you posted if we have anything new to report.

Karen Hu: Hi Lincoln, this is Karen. Thank you for your question. Yalla is dedicated to returning value to shareholders through our share repurchase program. As of June 30, 2024, we have deployed a total of 35.5 million US dollars for share repurchases. Given our solid fundamentals, we will continue to conduct our share repurchase program while considering cash dividend payments in due course. We will keep you posted if we have anything new to report. In terms of new initiatives, our strategy team is proactively looking into opportunities that may have synergies with our current businesses and fit with MENA culture and local users' needs, and we remain open to these possibilities. In short, we believe strongly in Yalla's long-term potential and are dedicated to generating value for all parties involved. I hope that this answers your question. Thanks.

Speaker Change: Hi Lincoln, this is Karen. Thank you for your question.

Speaker Change: YALA is dedicated to return value to shareholders through our share repurchase program. As of June 30, 2024, we have deployed a total of 35.5 million U.S. dollars for share repurchases.

Yao: Hi, Xueqing, good morning. This is Yao. Thank you for your question. For 3Q 2024, according to what we have observed over the past month and a half, Yao and Yao Lido, our flagship applications are performing well in the stability as we continue to roll out new features and operating events. And you can also see the chance from the guidance we provided earlier. We thank Q3. It's lucky to outperform Q2 at this point.

Speaker Change: Given our solid fundamentals, we will continue to conduct our share repurchase program while considering cash dividend payments in due course.

Karen Kuh: In terms of new initiatives, our strategy team is proactively looking into opportunities that may have synergized with our current businesses and fit with minor culture and local use of needs. And we remain open to these possibilities. In short, we believe strongly in Yala's long-term potential and dedicated to generating value for all parties involved.

Speaker Change: We will keep you posted if we have anything new to report.

Speaker Change: In terms of new initiatives, our strategy team is proactively looking into opportunities that may have synergies with our current businesses.

Speaker Change: and fit with MENA culture and local users' needs. And we remain open to these possibilities.

Yao: On the margin side, the Yao and Yao Lido team is organizing a series of offline tournaments across different cities in the near to increase our brand's local impact, efficiently penetrate the market, and reach more users through offline channels with higher ROI. So you can see that our operating efficiency is consistently improving. For the rest of 2024, I think we will maintain the solid and stable chance with improved efficiency. Hope this answers your question.

Speaker Change: In short, we believe strongly in YALA's long-term potential and dedicated to generating value for all parties involved. I hope that this answers your question. Thanks.

Karen Kuh: I hope that this answers your questions.

Karen Kuh: Thanks.

Operator: The next question will come from Rachel Gao of Numera. Please go ahead. And Rachel, your line is open.

Rachel Guo: The next question will come from Rachel Gow of New Meera. Please go ahead. And Rachel, your line is open. Hello. I feel to mention the question. My question is that your Yala Ludo has already posted with several online and offline tournaments.

Karen Hu: Given our solid fundamentals, we will continue to conduct our share repurchase program while considering cash dividend payments in due course. We will keep you posted if we have anything new to report. In terms of new initiatives, our strategy team is proactively looking into opportunities that may have synergies with our current businesses and fit with MENA culture and local users' needs, and we remain open to these possibilities. In short, we believe strongly in Yalla's long-term potential and are dedicated to generating value for all parties involved. I hope that this answers your question; thanks. The next question will come from Rachel Gao of Numera. Please go ahead. And Rachel, your line is open. Hello, good morning.

Yang Hu: Yang Hu, Tao Yang Hu, Tao Yang Hu, Tao Yang Hu,

Operator: Thank you.

Speaker Change: Yang Hu, Tao Yang, Tao Yang

Speaker Change: And, Rachel, your line is open.

Unidentified Speaker: Hello, good morning. Thanks so much for taking my question. My question is that Yalla Ludo has already hosted several online and offline tournaments across China. Can you share with us your plans for the future? Thank you.

Operator: Thanks so much for taking my question. My question is that Yalla Ludo has already hosted several online and offline tournaments across China. Can you share with us your plans for the future about this? Thank you. Hi Rachel, thank you very much for your question.

Rachel: Hello. Hello, good morning. Thanks so much for taking my question. My question is that the Yala Ludo has already posted several online and offline tournaments across MENA. Can you share with us any further plans in the future about this? Thank you.

Chen Hao: Our next question will come from Shanghai League of CIC. Please go ahead.

Rachel Guo: When we come back to them, share with us and the participants in the future. Thanks.

Rachel Guo: Thank you.

Chen Hao: Hi, ladies and gentlemen. Thanks for taking my question and congratulations on our solid culture. My question is about our game business. How should we view the yellow game strategy and the Christmas share Mochala on your game's test feedback and the last time line. Thank you.

Rachel Guo: Hi, Rachel. Thank you very much for your question. Since the end of last year, our team has been hosting a series of online and offline noodle tournaments with our local and global partners across several cities, Emina. We believe these move enhances our brand's local impact, helps penetrate the local market, and further expands our user base. We have received a very good feedback on the tournament series so far from both local users and our partners, and we are receiving more invitations from potential partners, conducted similar tournaments in different cities and different countries across Meena. So far, we have two more tournaments scheduled for the second half of the year to engage more users in different countries, and we plan to keep building on this momentum.

Unspecified Yalla Representative: Since the end of last year, our team has been hosting a series of online and offline noodle tournaments with our local and global partners across several cities in MENA. We believe this move enhances our brand's local impact, helps penetrate the local market, and further expands our user base. We have received very good feedback on the tournament series so far from both local users and our partners, and we are receiving more invitations from potential partners conducting similar tournaments in different cities and different countries across MENA. So far, we have two more tournaments scheduled for the second half of the year to engage more users in different countries, and we plan to keep building on this momentum.

Unidentified Speaker: Hi Rachel. Thank you very much for your question. Since the end of last year, our team has been hosting a series of online and offline noodle tournaments with our local and global partners across several cities in MENA. We believe this move enhances our brand's local impact, helps penetrate the local market, and further expands our user base. We have received very good feedback on the tournament series so far from both local users and our partners, and we are receiving more invitations from potential partners conducting similar tournaments in different cities and different countries across MENA. So far, we have two more tournaments scheduled for the second half of the year to engage more users in different countries, and we plan to keep building on this momentum. Thank you.

Speaker Change: Hi, Rachel. Thank you very much for your question. Since the end of last year, our team has been hosting a series of online and offline noodle tournaments with our local and global partners across several cities in MENA. We believe this move enhances our brand's local impact.

Chen Hao: Hi, Chen Hao. Thank you for your question. For yellow game, this year we are allocating more resources to our e-house team to self-developed products. Many focusing on mid core games. We are accumulating valuable experience and broadening our team's expertise through this process, which will empower us to move forward to with confidence in the future.

Speaker Change: helps penetrate the local market and further expands our user base.

Speaker Change: We have received very good feedback on the tournament series so far from both local users and our partners, and we are receiving more invitations from potential partners conducting similar tournaments in different cities.

Chen Hao: We currently have three self-developed record games in our pipeline and plan to start testing by the end of this year. There we need sometimes to work on iterations based on the feedback we achieved from the users before we start on scale promotions. Meanwhile, we are also proactive in discussing collaborations with potential partners in the game industry.

Speaker Change: and different countries across MENA. So far, we have two more tournaments scheduled for the second half of the year to engage more users in different countries, and we plan to keep building on this momentum. Thank you.

Rachel Guo: Thank you.

Operator: As there are no further questions now, I'd like to turn the conference back over to management for closing remarks. Thank you.

Operator: Thank you. As there are no further questions now, I'd like to turn the conference 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 further questions, please feel free to contact Yalla's investor relations or Piacente Financial Communications. Both parties' contact information is available in today's press release as well as on our company's website. The conference is now concluded. We thank you for attending the presentation, and you may now disconnect your line. [inaudible] transcript Emily Bei BF-WATCH TV 2021, [inaudible]

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

Chen Hao: We let you know once there's anything we can share publicly.

Unidentified Speaker: 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 or Piacente Financial Communications. Both parties' contact information is available in today's press release as well as on our company website. The conference is now concluded. We thank you for attending the presentation, and you may now disconnect your line.

Operator: Thank you.

Speaker Change: 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 Yalas Investor Relations or Piacente Financial Communications.

Operator: If you have further questions, please feel free to contact Yalla's Investor Relations or Pia Sentai Financial Communications. Both parties' contact information is available in today's press release as well as on our company's website.

Martin Kaifang: Hi, management. Thanks for taking my question. I have a question about your overseas market.

Speaker Change: Both parties' contact information is available in today's press release as well as on our company's website.

Operator: The conference is now concluded. We thank you for attending the presentation, and you may now disconnect your lines.

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu,

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu, Tao Yang Hu,

Speaker Change: The conference is now concluded. We thank you for attending the presentation, and you may now disconnect your lines.

Martin Kaifang: So Martin Kaifang, thank you for your question. As always, we will remain dedicated to the Middle East market, while also keeping the eye of opportunities in other markets. For instance, we currently have patches on which focuses on the South American market, which is one of our tasks to explore the overseas markets. Going forward, if we see that new products have popularization potential, not only in China, but also in other markets, we may consider conducting global promotions. However, our main focus is undoubtedly on the Middle East market, where we have unique advantages and continue to leverage our core capabilities to allow our Google's potential.

Speaker Change: [music]

Martin Kaifang: Thank you very much.

Lincoln Kong: Our next question today will come from Lincoln Kong of Goldman Sachs. Please go ahead. Thank you management for taking my question. So my question is about capital allocation.

Operator: BF-WATCH TV 2021

Lincoln Kong: So how does the company view in terms of increasing the shareholder return versus continuing investing into any new initiatives or on our practice? Thank you.

Speaker Change: Yang Hu, Tao Yang Hu, Tao Yang Hu, Tao Yang Hu, [inaudible]

Karen Kuh: Hi, Lincoln. This is Karen. Thank you for your question.

Karen Kuh: Yala is dedicated to return value to shareholders throughout our share repurchase program. As of June 30, 2024, we have deployed a total of 35.5 million US dollars for share repurchases. Given our solid fundamentals, we will continue to conduct our share repurchase program while considering cash dividend payments in due course.

Karen Kuh: We will keep you posted if we have anything new to report. In terms of new initiatives, our strategy team is proactively looking into opportunities that may have synergized with our current businesses and fit with minor culture and local use of needs. And we remain open to these possibilities.

Karen Kuh: In short, we believe strongly in Yala's long-term potential and dedicated to generating value for all parties involved. I hope that this answers your questions. Thanks.

Rachel Guo: The next question will come from Rachel Gow of New Meera. Please go ahead. And Rachel, your line is open.

Rachel Guo: Hello. I feel to mention the question. My question is that your Yala Ludo has already posted with several online and offline tournaments. When we come back to them, share with us and the participants in the future. Thanks. Thank you.

Rachel Guo: We believe these move enhances our brand's local impact, helps penetrate the local market and further expands our user base. We have received a very good feedback on the tournament series so far from both local users and our partners, and we are receiving more invitations from potential partners, conducted similar tournaments in different cities and different countries across Meena. So far, we have two more tournaments scheduled for the second half of the year to engage more users in different countries, and we plan to keep building on these momentum. Thank you.

Operator: As there are no further questions now, I'd like to turn the conference back over to the management for closing remarks. Thank you once again for joining us today. We look forward to speak with you in the next quarter. If you have further questions, please feel free to contact Yalla's Investor Relations or Pia Sentai Financial Communications. Both parties contact information is available in today's press release as well as on our company's website.

Operator: The conference is now concluded. We thank you for attending the presentation, and you may now disconnect your lines.

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