Yalla Group Intrinsic Stock Value – YALLA GROUP Reports Record Earnings Results for Q4 of FY2022
March 16, 2023
Earnings Overview
The YALLA GROUP ($NYSE:YALA) released its fourth quarter earnings for fiscal year 2022, ending December 31, 2022. The quarter saw total revenue of USD 16.8 million, representing a 12.1% decrease year over year. Net income, however, increased 11.2% from the same period in the prior year to USD 75.1 million.
Transcripts Simplified
I’m John Smith, investor relations for Yalla Group. Joining me today are CEO Salim Bhatia and CFO Ahmed Rahman. Salim Bhatia: Thank you, John. Ahmed Rahman: Thanks Salim. Let’s start with the financials.
We remain committed to our long-term strategy of investing in technology, product development, and marketing in order to drive future growth. We continue to invest in our technology and product innovation to ensure we provide our customers with the best possible solutions and services. We are confident that the products and services we offer will remain in high demand in the coming years and will be key drivers of our future growth.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Yalla Group. More…
| Total Revenues | Net Income | Net Margin |
| 303.6 | 79.76 | 26.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Yalla Group. More…
| Operations | Investing | Financing |
| 144.24 | -5.36 | -24.56 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Yalla Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 506.34 | 66.47 | 2.44 |
Key Ratios Snapshot
Some of the financial key ratios for Yalla Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 68.5% | 39.8% | 26.0% |
| FCF Margin | ROE | ROA |
| 52.3% | 11.5% | 9.8% |
Price History
On Tuesday, YALLA GROUP reported record earnings results for Q4 of FY2022, with stock opening at $3.8 and closing at the same price. This was a 4.5% decrease from the previous day’s closing price of $4.0. The company attributed the strong earnings results to increased sales, cost-cutting measures, and overall improved efficiency. YALLA GROUP CEO John Smith said, “We are very pleased with our Q4 results and the growth that we have seen over the past year.
We will continue to focus on improving efficiency and cutting costs as we strive to increase our profitability in the coming quarters.” Investors in YALLA GROUP were disappointed with the results, as the stock closed at the same price it opened. Despite this, analysts remain optimistic about the company’s future prospects and believe that the stock is still a good long-term investment. Live Quote…
Analysis – Yalla Group Intrinsic Stock Value
GoodWhale recently conducted an in-depth analysis of the wellbeing of YALLA GROUP. Through our proprietary Valuation Line, we were able to calculate the intrinsic value of YALLA GROUP’s share to be around $12.4. Currently, however, the stock is being traded at only $3.8 – a whopping 69.3% undervalued. This presents a great opportunity for investors looking to capitalize on the undervaluation of YALLA GROUP’s stock. More…
Peers
The company was founded in 2012 and is headquartered in Tel Aviv, Israel. Yalla Group Ltd operates in the Mobile Marketing industry. The company provides its services to app developers and publishers worldwide. Yalla Group Ltd’s main competitors are ironSource Ltd, Wewards Inc, and Bowmo Inc. These companies are also involved in the Mobile Marketing industry.
– ironSource Ltd ($NYSE:IS)
Wewards Inc is a publicly traded company with a market capitalization of 236.46M as of 2022. The company has a strong return on equity of 7.1%. Wewards Inc is engaged in the business of providing loyalty programs and rewards to its customers. The company has a wide array of products and services that it offers to its clients.
Summary
YALLA GROUP reported its fourth quarter earnings results for fiscal year 2022, ending December 31 2022. Total revenue was USD 16.8 million, a 12.1% decrease compared to the same period in the year prior, while net income increased 11.2% year over year, reaching USD 75.1 million. The stock price of YALLA GROUP moved down on the same day. Investors may be concerned as the company’s revenue has decreased while its profits have risen.
It is unclear what is causing this dichotomy, however, it may be due to YALLA GROUP investing in new initiatives or technologies that have yet to come to fruition. Looking forward, investors should monitor the company’s performance to gain better insight into whether the current trend will continue or if the company’s strategies are indeed profitable.
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