Core Insights - JR Research is recognized as a top analyst in technology, software, and internet sectors, focusing on growth and GARP strategies [1] - The investment approach emphasizes identifying attractive risk/reward opportunities with strong price action to generate alpha above the S&P 500 [1][2] - The investment group Ultimate Growth Investing specializes in high-potential opportunities across various sectors, targeting stocks with robust fundamentals and turnaround potential [3] Investment Strategy - The focus is on growth investing opportunities that offer significant upside potential while avoiding overhyped and overvalued stocks [2] - The strategy includes capitalizing on battered stocks that have substantial recovery possibilities [2] - The investment outlook typically spans 18 to 24 months for the thesis to materialize [3] Group Characteristics - Ultimate Growth Investing is designed for investors looking to capitalize on growth stocks with strong fundamentals and buying momentum [3] - The group targets turnaround plays at highly attractive valuations [3]

Core Viewpoint - Opera Limited (OPRA) has demonstrated strong stock performance and revenue growth, but faces challenges with rising marketing expenses and declining earnings estimates. Group 1: Stock Performance - OPRA's shares have increased by 27.3% over the past three months, outperforming the Zacks Computer & Technology sector's return of 10.2% and the Zacks Internet - Content industry's growth of 4.1% [1] - In comparison, peers such as Yelp (YELP), DHI Group (DHX), and Perion Network (PERI) saw gains of 20.6%, 12.5%, and 11.6%, respectively [1] Group 2: Financial Performance - For Q3 2024, OPRA reported a 20% year-over-year revenue increase to $123.2 million, driven by user adoption and enhanced monetization, particularly in advertising and search revenues [2] - Advertising revenues rose by 26% year-over-year to $76.8 million, supported by strong monetization and the expansion of the Opera Ads platform [2] - Search revenues grew by 13% to $46.3 million, focusing on users with high monetization potential [3] Group 3: Product Development and User Growth - The Opera GX gaming browser is the fastest-growing product, adding over 1.8 million net users in the quarter, with monthly active users (MAUs) increasing by 22% year-over-year to 31.9 million [4] - New product launches, including Opera One for iOS and updates to the Opera GX gaming browser, have contributed to user base growth [5] - The company is enhancing its AI capabilities with Aria, its browser AI assistant, which now integrates more deeply with generative AI tools [6] Group 4: Marketing and Profitability Challenges - Opera plans to significantly increase marketing spending in Q4 2024, which may pressure profitability [7] - Marketing and distribution costs rose by 14% year-over-year to $32.5 million in Q3, reflecting intensified promotional efforts for product launches [8] Group 5: Earnings Estimates - The Zacks Consensus Estimate for Q4 2024 earnings is currently 21 cents per share, a decline of 22.2% over the past 60 days, indicating a year-over-year drop of 84.78% [9] - For the full year 2024, the consensus estimate is 79 cents per share, reflecting a 10.2% downward revision and a significant year-over-year decline of 57.53% from 2023 [9]

OSLO, Norway, Dec. 12, 2024 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA) ("Opera"), one of the world's major browser developers and a leading internet consumer brand, today announced that its Board of Directors has declared its next semi-annual cash dividend.Opera's upcoming dividend under its recurring dividend program will be $0.40 per share or American Depositary Share ("ADS"), each ADS representing one ordinary share. Payment will be made to shareholders of record as of the close of business on January ...

OSLO, Norway, Dec. 5, 2024 /PRNewswire/ -- Opera Ads, the advertising platform from the global browser innovator Opera (NASDAQ: OPRA), is proud to announce its achievement of TAG Platinum status from TAG (The Trustworthy Accountability Group), a leading global initiative combating criminal activity and fostering trust in digital advertising. This prestigious designation – held by only 34 organizations worldwide – recognizes Opera Ads' compliance with TAG's highest standards across fraud prevention, malware ...

Opera Limited’s (OPRA) shares have gained 19.6% in the past month, outperforming the Zacks Computer & Technology sector’s modest growth of 0.6% and the Zacks Internet - Content decline of 1.8%.OPRA’s robust stock price performance has been driven by its impressive third-quarter 2024 results. Third-quarter revenues grew 20% year over year to $123.2 million, driven by continued momentum in user adoption and broader monetization efforts, particularly in advertising and search revenues.Advertising revenues grew ...

Core Insights - Opera has partnered with Spotify to integrate Spotify as the default streaming service in the upgraded Music Player of Opera's flagship browser, Opera One, enhancing user experience for music, podcasts, and audiobooks while browsing [1][5][6] - Users in selected countries will have the opportunity to try Spotify Premium for free for a limited time, which includes ad-free music, offline listening, and higher quality audio [1][5][7] Company Developments - The new Music Player feature allows users to control their music without interrupting their browsing flow, as it can be detached and moved around the screen [4][6] - Opera One R2, released recently, is described as the most powerful and visually appealing browser to date, featuring personalization options and improved tab management [6] User Engagement - A survey by Opera revealed that 66% of respondents stream music on their phones while at their desktops, indicating a strong demand for integrated music solutions [3] - The integration of Spotify aims to address user needs for seamless music control while multitasking, with 66% of survey participants expressing that it would reduce distractions [3][4] Market Reach - The promotion for free Spotify Premium is available in various countries, including the United States, United Kingdom, Germany, and others, with plans to expand to Opera for Android in early 2025 [5][7] - Spotify boasts over 640 million users globally, with 252 million subscribers, highlighting its significant market presence [10]

Core Viewpoint - Opera has demonstrated strong financial performance in Q3, with significant growth prospects for the upcoming years, leading to a 47% increase in stock value [1][2]. Financial Performance - Q3 revenue increased by 20% year over year to $123 million, surpassing the consensus estimate of $120 million [2]. - Earnings per share surged by 34% to $0.26, exceeding the consensus estimate of $0.20 [2]. - Adjusted EBITDA margin improved to 25%, up from 24% in Q2, exceeding the previous guidance of 23% [3]. Revenue Sources - 62% of revenue in Q3 came from the advertising business, which grew by 26% year over year [5]. - The annualized average revenue per user (ARPU) rose by 27% to $1.66, attributed to an increase in high-value customers [4]. - The search business experienced a 13% year-over-year revenue increase due to revenue-sharing agreements [7]. Future Guidance - Opera has raised its 2024 revenue guidance to a range of $470 million to $473 million, reflecting a 19% increase at the midpoint [8]. - The adjusted EBITDA margin for 2024 is now expected to be 24%, up from the earlier estimate of 23% [8]. Market Position and Valuation - Despite the recent stock surge, Opera's price-to-sales ratio stands at 3.7, lower than the U.S. tech sector average of 8, indicating attractive valuation [11]. - Analysts project an annual earnings growth rate of 84% for the next five years, suggesting strong future performance [11].

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highestquality analysis of this type of information. Based on a combination of strong fundamentals, great expansion prospects, and a favorable valuation, I believe Opera Limited (NASDAQ: OPRA ) could be one of the few AI-related ideas on the market that still has significant He leads the investing grou ...

Opera posted strong results in the third quarter, showing signs of improvement in the struggling digitaladvertising market. Shares of Opera (OPRA 10.08%) soared as much as 16.7% higher on Tuesday, goosed by a fantastic earnings report. The Norwegian maker of security-oriented web browsers and other online safety tools beat analyst expectations across the board and offered a bullish-guidance update for the full year. Opera's stock cooled down to a gain of 10.1% at the market close, but that's still a firm 52 ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $123 million, growing 20% year-over-year, an acceleration from the 17% growth rate in the first half of the year [5] - Annualized ARPU increased by 27% year-over-year to a record $1.66, with adjusted EBITDA at $31 million, representing a margin of 25% [6] - Advertising revenue reached $77 million, growing 26% year-over-year, marking the highest growth rate since 2022 [7] Business Line Data and Key Metrics Changes - E-commerce and travel categories were significant contributors to revenue growth, with e-commerce benefiting from PC browser monetization and Opera Ads platform expansion [8] - Search revenue was $46 million, up 13% year-over-year, with a return to 15% annual growth in September [9] - Opera GX, the gaming browser, saw a 22% increase in MAUs to 31.9 million, with ARPU rising to $3.68, a 12% increase year-over-year [19] Market Data and Key Metrics Changes - The user base in Western markets showed stable growth, with ARPU growth in these markets significantly outpacing overall ARPU growth [11] - The inflow of new iOS users increased by 33% year-over-year, with a notable 66% increase in the EU from August to September [14][15] - The company observed strong momentum in retail and travel sectors, contributing to enhanced revenues [12][13] Company Strategy and Development Direction - The company is focusing on high-ARPU users and expanding monetization opportunities, with confidence in continued growth into Q4 [5][34] - Upcoming product launches, including Opera One R2 and the next generation of Opera GX, are expected to drive marketing activities and user engagement [35][22] - The strategy includes leveraging AI features in the browser to enhance user experience and engagement [16][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, highlighting strong underlying growth and the potential for increased monetization during the holiday season [34][40] - The company anticipates a revenue guidance for Q4 of $135 million to $138 million, representing a 21% year-over-year growth at the midpoint [36] - Management emphasized the importance of maintaining a balance between growth opportunities and cautious guidance in a competitive environment [26] Other Important Information - The company introduced a new non-IFRS metric, adjusted net income, to provide a clearer view of underlying profitability [32] - Operating cash flow reached an all-time high of $34.9 million, representing 113% of adjusted EBITDA [30] - The company plans to reassess the valuation of its OPay stake at year-end, maintaining the current valuation of approximately $250 million [49] Q&A Session Summary Question: E-commerce advertisement revenue growth - Management indicated that e-commerce is growing faster than the overall advertising growth rate and is becoming a material part of the advertising mix [43] Question: Q4 EBITDA and marketing spend - The increase in Q4 marketing spend is a strategic decision to capitalize on new product launches and ensure higher EBITDA for the year [44] Question: OPay stake valuation and monetization - The valuation of the OPay stake remains unchanged, with plans for potential divestment either before or after a future IPO [50] Question: AI opportunity and product roadmap - Management sees AI as a long-term differentiator and is focused on enhancing user engagement through AI features in the browser [55] Question: iOS opportunity in Europe - The company is pleased with the growth in iOS users, particularly in Europe, and sees significant potential for further growth [66]