Yalla Group Limited (YALA) stock is rising in the premarket: Here’s Why

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Yalla Group Limited (YALA) stock rose in the premarket following the announcement of a couple of news regarding the appointment of an independent director and third quarter 2021 financial results. YALA stock price saw a surge of 14.27% to reach $8.41 a share at the time of this writing. The stock was also green in the previous trade and went up by 11.18% at closing. Let’s deep dive to understand more about this stock.

Appointment of Independent Director by YALA stock:

Yalla Group recently announced that it has appointed Mr. Saeed Al Hamli as an independent director to the board members effective November 7, 2021. He will serve as a member of the audit committee. Mr. Al Hamli previously served Etisalat Egypt as the Chief Executive Officer. He has profound experience in the telecommunication industry and excellent leadership skills.

Third Quarter 2021 Financial Results:

  • YALA stock generated US$71.3 million in revenues for the third quarter of 2021 This represents an increase of 110.8% as compared to US$33.8 million in the same period of the previous year. Revenue generated from chatting and gaming services were $53.9 million and $17.4 million respectively.
  • Total costs and expenses of the YALA stock declined from US$64.7 million in the third quarter of 2020 to US$45.6 million in the third quarter of 2021. The decrease is attributable to lower share-based compensation in the reported quarter.
  • Cost of revenues for the YALA stock dropped to US$23.4 million in the third quarter of 2021 from US$25.6 million in the same quarter of last year. The decrease is attributable to lower share-based compensation.
  • YALA stock spent US$11.0 million in selling and marketing expenses and US$7.3 million in general and administrative expenses in the third quarter of 2021. Technology and product expenditures were US$3.9 million in the recently reported quarter.
  • The company reported an operating income of US$25.7 million in the reported quarter as compared to US$30.9 million in the same tenure of the previous year.
  • Non-GAAP operating income in the third quarter increased by 116.2% to reach US$33.6 million from the same period of the previous year.
  • The net income of the Yalla stock in Q3,2021 was US$25.3 million, compared to a net loss of US$31.0 million in Q3,2020.
  • By the end of the third quarter of 2021, Yalla stock had US$326.3 million in cash and cash equivalents.

Outlook of YALA stock:

The management of YALA stock has projected its revenue for the fourth quarter of 2021 in the range of US$67.0 million and US$72.0 million. This means the revenue is expected to be increased by 38.6% to 48.9% as compared to the fourth quarter of 2020. The outlook is subject to change based on the market conditions and customer demand.