Yalla Group Limited
4.48 %
-22.22 %
Yet to be announced
Company Overview
Yalla Group Limited operates mobile and online social networking and entertainment platforms primarily in the Middle East and North Africa region. The company's main products include Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application. The company generates revenue primarily through the sale of virtual items and premium features on its platforms.
Revenue Sources
PassBased on the company's financial statements and business model, Yalla Group's primary revenue streams come from legitimate social networking and gaming activities that involve the sale of virtual items and premium features. The gaming features on their platform do not constitute gambling as they involve skill-based gameplay and social interaction rather than chance-based betting.
Reliance on Interest
| Reporting Date | Total Revenue | Total Expense | Interest Income | Interest Expense | Interest Income Ratio | Interest Expense Ratio |
|---|---|---|---|---|---|---|
| June 30, 2024 | $81.2m | $51.57m | $7.1m | - | 8.74% | 0.00% |
| March 31, 2024 | $78.73m | $49.58m | $6.64m | - | 8.44% | 0.00% |
| Dec. 31, 2023 | $80.93m | $57.64m | $6.48m | - | 8.01% | 0.00% |
| Sept. 30, 2023 | $85.19m | $52.79m | $5.61m | - | 6.59% | 0.00% |
Examining the last four quarters of financial data, Yalla Group shows interest income ranging from approximately 6.5% to 8.7% of total revenue. While this exceeds our typical comfort threshold, it's important to note that the company has zero interest expense across all quarters. The interest income appears to be from cash management practices rather than lending operations.
Given that the company maintains a debt-free position and the interest income is incidental to its main business operations, we consider this acceptable.
Operational Ethics
PassBased on available information, while Yalla Group operates in the MENA region, there is no evidence of material ongoing associations with entities involved in systematic human rights violations. The company is headquartered in Dubai, UAE, and its operations are focused on providing social networking services to users in the Middle East and North Africa.
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