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Yalla Group (FRA:80Q) Operating Margin % : 36.93% (As of Sep. 2024)


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What is Yalla Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Yalla Group's Operating Income for the three months ended in Sep. 2024 was €27.0 Mil. Yalla Group's Revenue for the three months ended in Sep. 2024 was €73.2 Mil. Therefore, Yalla Group's Operating Margin % for the quarter that ended in Sep. 2024 was 36.93%.

Warning Sign:

Yalla Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.

The historical rank and industry rank for Yalla Group's Operating Margin % or its related term are showing as below:

FRA:80Q' s Operating Margin % Range Over the Past 10 Years
Min: 2.86   Med: 30.62   Max: 48.04
Current: 34.97


FRA:80Q's Operating Margin % is ranked better than
96.92% of 2756 companies
in the Software industry
Industry Median: 3.665 vs FRA:80Q: 34.97

Yalla Group's 5-Year Average Operating Margin % Growth Rate was -4.50% per year.

Yalla Group's Operating Income for the three months ended in Sep. 2024 was €27.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was €103.2 Mil.


Yalla Group Operating Margin % Historical Data

The historical data trend for Yalla Group's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Yalla Group Operating Margin % Chart

Yalla Group Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial 45.60 2.86 30.92 26.03 30.32

Yalla Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.04 28.97 37.11 36.93 36.93

Competitive Comparison of Yalla Group's Operating Margin %

For the Software - Application subindustry, Yalla Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Yalla Group's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Yalla Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Yalla Group's Operating Margin % falls into.



Yalla Group Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Yalla Group's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=88.667 / 292.411
=30.32 %

Yalla Group's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=27.018 / 73.158
=36.93 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Yalla Group  (FRA:80Q) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Yalla Group Operating Margin % Related Terms

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Yalla Group Business Description

Traded in Other Exchanges
Address
No 234, Building 16, PO BOX 501913, Dubai Internet City, Dubai, ARE
Yalla Group Ltd is a MENA-based online social networking and gaming company. It operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games popular in MENA, with in-game voice chat and localized majlis functions.

Yalla Group Headlines

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