Summary of Opera's 2025 Conference Call Company Overview - **Company**: Opera (NasdaqGS: OPRA) - **Industry**: Web Browsers and Internet Services - **User Base**: Approximately 300 million monthly users, with a significant presence in both emerging and Western markets [4][6] - **Revenue**: Close to $600 million, with a growth guidance of 23% for the year [4][5] Key Points and Arguments User Demographics and Growth - **Geographic Split**: 20% of users in Western markets, up from 6-7% previously, indicating successful market penetration [6][12] - **ARPU Growth**: Average Revenue Per User (ARPU) has tripled over the past four years, driven by higher monetization in Western markets [6][12] - **Target Audience**: Focus on tech-savvy users who appreciate feature-rich browsers, particularly in the gaming segment [6][10] Competitive Landscape - **EU Regulations**: The Digital Markets Act has positively impacted Opera, leading to a doubling of new iOS users in the EU [12][13] - **U.S. Market**: Ongoing partnership with Google for search revenue, with no expected changes following recent regulatory rulings [15][19] Artificial Intelligence Integration - **AI Features**: Introduction of AI functionalities in the flagship browser, Opera One, allowing users to interact with an AI agent [20][21] - **Opera Neon**: Upcoming AI-native browser designed to enhance user experience by integrating AI capabilities directly into the browsing process [24][27] Gaming Browser Opportunity - **User Base**: 33 million users of the gaming browser (Opera GX), with an average ARPU of $3.50, representing about 20% of total revenue [32][33] - **Market Expansion**: Plans to expand into key Asian markets like Japan and South Korea, which present significant growth potential [32][33] Growth Investments and Financial Strategy - **Investment Focus**: Prioritizing high-value user growth and product development, particularly for Opera One and Opera GX [34][41] - **Capital Return**: Nearly $500 million returned to shareholders since 2020, with a preference for dividends over buybacks to maintain liquidity [40][41] Future Outlook - **Strategic Priorities**: Focus on leveraging AI and enhancing browser capabilities to attract more users and increase brand awareness [44][47] - **Long-term Vision**: Emphasis on the evolving role of browsers in users' daily lives, with aspirations to innovate and provide alternatives in the market [46][47] Additional Important Insights - **Marketing Effectiveness**: Data-driven marketing strategies are in place to assess ROI and optimize campaigns for user acquisition [35][36] - **AI Partnerships**: Collaborations with Google and OpenAI for backend AI functionalities, while maintaining control over local processing [29][30] This summary encapsulates the key insights from Opera's conference call, highlighting the company's strategic direction, market positioning, and future growth opportunities.

PresentationRonald JoseyMD and Co-Head of Tech & Communications Great. So we're on the clock. So we'll get started here. My name is Ron Josey. I cover the Internet sector here at Citi, and I'm very happy today to be with us, Frode Jacobsen, who's the CFO of Opera. I think we all know what Opera does. Opera has a portfolio of browsers and a ton of other products, from a payments perspective and just everything under the sun, and multiple secular tailwinds from a global basis as well, whether in every region, ...

Summary of Opera (OPRA) 2025 Conference Call Company Overview - **Company**: Opera - **Industry**: Internet and Software - **Monthly Active Users**: 289 million globally [1][8] - **Revenue Guidance**: Close to $600 million for the year, with a growth rate of approximately 23% [8][55] - **Profitability**: Company has maintained a "Rule of 40" status for 16-17 quarters, balancing growth and profitability [8] Product Portfolio - **Browsers**: Opera has developed a portfolio of browsers catering to different user needs, including Opera One, GX (for gamers), Air (mindfulness-focused), and Neon (AI-oriented) [21][27] - **AI Integration**: Opera Neon aims to integrate AI functionalities directly into the browsing experience, enhancing productivity for users [29][32] - **Target Audience**: Focus on tech-savvy users and specific segments like gamers, rather than a broad audience [27][54] Market Dynamics - **Partnership with Google**: Opera has a long-standing partnership with Google, which accounts for about one-third of its total revenue. Recent rulings allow Google to continue paying for traffic, which is beneficial for Opera [10][14] - **Browser Market**: The browser market is gaining more attention, with Opera positioning itself as a valuable player in the space, especially as AI companies highlight the importance of browsers [18][20] Financial Performance - **Revenue Composition**: Advertising revenue has grown significantly, now accounting for two-thirds of total revenue, while search revenue has become a smaller portion [71] - **ARPU Growth**: The average revenue per user (ARPU) has quadrupled over the past four years, with a 30% increase in the Western user base [55] Marketing Strategy - **Brand Awareness**: Opera spends approximately 30% of its revenue on marketing, focusing on influencers and tech media to build brand identity [59][60] - **Targeted Marketing**: The company targets specific user groups, such as gamers, to improve retention and engagement [66] Future Outlook - **Product Launch**: Opera Neon is set to launch soon, with expectations that it will leverage AI to enhance user productivity [43][45] - **E-commerce Growth**: E-commerce partnerships have seen over 100% year-over-year growth, indicating a strong revenue potential moving forward [76] Additional Insights - **User Base Strategy**: Opera has shifted focus from feature phone users in emerging markets to higher ARPU potential users in developed regions [53] - **Predictability in Revenue**: The company has a high degree of predictability in revenue generation due to the vast amounts of data collected from user interactions [78] Conclusion - **Overall Positioning**: Opera is strategically positioned in the browser market with a diverse product portfolio and a strong focus on integrating AI to enhance user experience. The company is also leveraging its long-term partnership with Google to maintain revenue growth and market presence.

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or similar derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses that past performance does not guarantee future results, reinforcing the need for careful consideration by investors [4].

Core Insights - Opera Limited (NASDAQ: OPRA) experienced a significant stock drop despite reporting good earnings, indicating potential market misinterpretation or external factors affecting investor sentiment [1]. Company Analysis - The company focuses on sectors such as AI, fintech, finance, and technology, which are critical for long-term growth and investment opportunities [1]. - Opera Limited is actively analyzed for its business model, earnings performance, and competitive positioning within the market [1]. Market Context - The stock market's reaction to Opera Limited's earnings report suggests a disconnect between financial performance and stock valuation, highlighting the importance of understanding market dynamics [1].

Opera Limited Sponsored ADR (OPRA) reported $142.96 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 30.3%. EPS of $0.26 for the same period compares to $0.22 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $137.81 million, representing a surprise of +3.74%. The company delivered an EPS surprise of -3.7%, with the consensus EPS estimate being $0.27. While investors scrutinize revenue and earnings changes year-over-year and how they co ...

Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 30%, exceeding the guidance of 22% to 26% and significantly higher than the 17% growth in the same quarter last year [5][17] - Adjusted EBITDA reached $32,000,000, surpassing the high end of previously issued guidance [7] - Operating cash flow was $33,000,000, representing 103% of adjusted EBITDA [19] - Free cash flow from operations was $29,000,000, or 91% of adjusted EBITDA [20] - Adjusted diluted EPS was $0.26 for the quarter [20] Business Line Data and Key Metrics Changes - Advertising revenue grew 44% year-over-year to $93,000,000, with e-commerce being the fastest-growing vertical, increasing over 100% year-over-year [6] - Search revenue returned to double-digit growth, up 11% year-over-year to $50,000,000 [6] - The user base for Opera GX reached 33,000,000 MAUs, an 11% increase year-over-year [12] Market Data and Key Metrics Changes - The company noted strong growth in the Western market, particularly in Europe, which contributed to user acquisition [35] - The e-commerce vertical is expected to continue growing, although comparisons will become more challenging in the second half of the year [71] Company Strategy and Development Direction - The company is focusing on AI integration within its browser, positioning itself as a key player in the emerging AI landscape [9][10] - Opera Neon, an AI browser, is set to be released, combining major AI use cases into a single user interface [10][11] - The company is also expanding its presence in the gaming sector with Opera GX and plans to soft launch in South Korea and Japan [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of advertising revenue despite macroeconomic volatility [18] - The company anticipates continued growth in search revenue and is optimistic about the broader search landscape evolving with AI [57] - Management acknowledged tariff-related headwinds but noted that global growth has offset these challenges [60][61] Other Important Information - The company has distributed $2.8 in dividends per share since January 2023 and has repurchased 30% of its outstanding stock in the previous three years [21] - MiniPay, a stablecoin wallet, has reached 9,000,000 activated wallets and exceeded 250 million transactions, indicating strong growth potential in the fintech space [15][50] Q&A Session Summary Question: What drove the sequential growth in the Western market user base? - Management indicated that seasonality and marketing strategies played a role, with expectations for more growth in Q3 and Q4 [33] Question: How should we think about the pricing and cost structure of Opera Neon? - Management stated that product marketing is the primary focus, with a combination of advertisement sponsorship and subscription models anticipated for monetization [44] Question: How does MiniPay monetize engagement? - MiniPay is generating revenue through ecosystem partnerships and integrations, leveraging its nature as a fintech product [50] Question: What are the expectations for search revenue growth? - Management expects search revenue to continue performing well, driven by changes in the broader search landscape and user engagement [57] Question: What is the outlook on tariff-related headwinds? - Management noted that while tariffs have created challenges, there is potential for recovery and growth as conditions stabilize [61] Question: How significant is the opportunity in launching Opera GX in South Korea and Japan? - Management sees strong potential in these markets, particularly due to partnerships with popular games like League of Legends [63]

Financial Performance & Guidance - Opera achieved 17 consecutive quarters of Rule of 40 performance, driven by organic growth[11] - The company's 2025 revenue guidance is $591 million, representing a 23% growth[14] - The 2025 adjusted EBITDA guidance is $138 million, with a 23% margin[20, 21] - Q3 2025 revenue guidance is $148 million, representing 20% growth[89] - Since 2020, Opera has returned approximately $477 million to shareholders[16, 17, 98] User Base & Monetization - Opera has approximately 289 million average monthly active users (MAUs) in Q2 2025[12, 13] - Western markets account for 58 million MAUs[13] - ARPU has grown 3.1x over the last 4 years[18, 19] - Advertising accounts for 65% of revenue in Q2 2025, with 44% year-over-year growth[66, 69] - Search accounts for 35% of revenue in Q2 2025, with 11% year-over-year growth[66, 73] Opera GX - Opera GX has 33 million users[45] - Opera GX users represent 8% penetration of web users[52]

Revenue grew 30% year-over-year to $143.0 million, and exceeded the guidance range Adjusted EBITDA of $32.1 million, a 22% margin, also exceeded the guidance range Opera yet again raises growth expectations, guiding full-year revenue of $585 – 597 million with 23% adjusted EBITDA margin at the midpoints Second Quarter 2025 and Recent Business Highlights Second Quarter 2025 Financial Results All comparisons in this section are relative to the second quarter of 2024 unless otherwise stated. Revenue increased ...

Financial Performance - Opera Limited is expected to report second-quarter earnings of 26 cents per share, a decrease from 44 cents per share in the same period last year [1] - The company projects quarterly revenue of $137.44 million, up from $109.73 million a year earlier [1][2] Analyst Ratings - Goldman Sachs analyst Eric Sheridan maintained a Buy rating but reduced the price target from $26 to $22.5 [8] - Piper Sandler analyst James Callahan initiated coverage with an Overweight rating and a price target of $25 [8] - TD Cowen analyst Lance Vitanza maintained a Buy rating and increased the price target from $25 to $28 [8] - B. Riley Securities analyst Lee Krowl reiterated a Buy rating and raised the price target from $24 to $25 [8] Stock Performance - Opera shares increased by 6% to close at $16.32 [3]