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CONFIDENTIAL Yalla Group Limited Announces Unaudited First Quarter 2021 Financial Results DUBAI , UAE , May 10 , 2021 / PRNewswire / -- Yalla Group Limited ( " Yalla " or the " Company " ) ( NYSE : YALA ) , the leading voice - centric social networking and entertainment platform in the Middle East and North Africa ( MENA ) , today announced its unaudited financial results for the first quarter ended March 31 , 2021 . First Quarter Ended March 31 , 2021 Financial and Operating Highlights • • • . • Revenues were US $ 67.6 million in the first quarter of 2021 , representing an increase of 221.0 % from the first quarter of 2020 . ○ Revenues generated from chatting services in the first quarter of 2021 were US $ 54.8 million . о Revenues generated from games services in the first quarter of 2021 were US $ 12.8 million . Net income was US $ 19.8 million in the first quarter and net margin was 29.3 % , representing an increase of 114.6 % from the first quarter of 2020 . Non - GAAP net income¹ was US $ 33.6 million in the first quarter , representing an increase of 263.7 % from the first quarter of 2020. Non - GAAP net margin was 49.7 % in the first quarter of 2021 . Average MAUS² increased by 206.9 % to 18.8 million in the first quarter of 2021 from 6.1 million in the first quarter of 2020 . The number of paying users³ on our platform increased by 260.4 % to 5.8 million in the first quarter of 2021 from 1.6 million in the first quarter of 2020 . 1 Non - GAAP net income represents net income before share - based compensation . Non - GAAP net income is a non - GAAP financial measure . See the sections entitled " Non - GAAP Financial Measures " and " Reconciliation of GAAP and Non - GAAP Results " for more information about the non - GAAP measures referred to in this press release . 2 " Average MAUs ” refers to the average monthly active users in a given period calculated by dividing ( i ) the sum of active users for each month of such period , by ( ii ) the number of months in such period . " Active users " refers to registered users who accessed any of our mobile applications at least once during a given period . 3 " Paying users " refers to registered users who played a game or purchased our virtual items or upgrade services using virtual currencies on our platform at least once in a given period , except for users who receive all of their virtual currencies directly or indirectly from us for free . “ " Registered users " refers to users who have registered accounts on our platform as of a given time ; a registered user is not necessarily a unique user , however , as an individual may register multiple accounts on our platform , and consequently , the number of registered users we present in this press release may not equal the number of unique users who have registered on our platform as of a given time . 1