[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q4 and Full Year 2023 Financial Highlights](index=1&type=section&id=Q4%20and%20Full%20Year%202023%20Financial%20Highlights) Opera exceeded revenue and adjusted EBITDA guidance with strong financial results for Q4 and full-year 2023 Key Financial Metrics | Metric | Q4 2022 (in thousands) | Q4 2023 (in thousands) | Q4 YoY Change | FY 2022 (in thousands) | FY 2023 (in thousands) | FY YoY Change | | :-------------------------- | :--------------------- | :--------------------- | :------------ | :--------------------- | :--------------------- | :------------ | | Revenue | $96,272 | $113,004 | 17% | $331,037 | $396,827 | 20% | | Net income | $20,922 | $123,558 | 491% | $15,035 | $169,408 | 1,027% | | Adjusted EBITDA | $22,784 | $27,764 | 22% | $68,084 | $93,719 | 38% | | Diluted earnings per ADS | $0.22 | $1.38 | 529% | $0.14 | $1.86 | 1,231% | | Free cash flow from operations | $20,282 | $22,499 | 11% | $42,849 | $72,451 | 69% | - Q4 2023 revenue of **$113.0 million** was at the top of the **$110-113 million** guidance range, representing **17% YoY growth**[1](index=1&type=chunk) - Q4 2023 adjusted EBITDA reached **$27.8 million**, exceeding the **$22-24 million** guidance range, with a **25% margin**[1](index=1&type=chunk) [Management Commentary & Strategic Overview](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Overview) Management attributes 2023 overperformance to a strong product lineup and a successful high-ARPU user strategy - The company's 2023 growth strategy exceeded expectations with **marketing spend below 2022 levels**[4](index=4&type=chunk) - Opera's **high-ARPU user growth remains strong**, fueled by its unique browser offering and increased interest from monetization partners[5](index=5&type=chunk) - New engagement and monetization opportunities around **browser AI** are a key area of excitement for 2024[5](index=5&type=chunk) [Key Business & Operational Highlights](index=1&type=section&id=Key%20Business%20%26%20Operational%20Highlights) The company saw robust revenue growth, completed its share repurchase, and recorded a gain from its OPay investment - **Advertising Revenue:** Grew **20% YoY** and **12% QoQ**, constituting **60% of total revenue** in Q4 2023[6](index=6&type=chunk) - **Search Revenue:** Increased **15% YoY** and **10% QoQ**, driven by a focus on high monetization potential users in Western markets[6](index=6&type=chunk) - **Monthly Active Users (MAUs):** **313 million** in Q4 2023, a slight increase from 311 million in Q3, primarily from high-ARPU users[6](index=6&type=chunk) - **Annualized ARPU:** **$1.44** in Q4 2023, a **22% increase YoY**[7](index=7&type=chunk) - **Opera GX Gaming Browser MAUs:** **27.8 million** across PC and mobile, up **7% from Q3**[7](index=7&type=chunk) - **Share Repurchase:** Repurchased **1.15 million ADSs for $13.0 million** in Q4, completing the **$50 million** buyback authorization[7](index=7&type=chunk) - **AI Investment:** Announced first dedicated AI cluster in Iceland with an associated capital expenditure of approximately **$19 million**[7](index=7&type=chunk) - **OPay Investment:** Updated fair value assessment of **9.44% stake to $269 million**, resulting in a non-cash accounting gain of **$106 million** in Q4[7](index=7&type=chunk) - **Cash Position:** Increased by **$10.3 million** in Q4 to **$93.9 million** at year-end, supported by strong operating cash flow[7](index=7&type=chunk) - **Dividends:** Semi-annual dividend of **$0.40 per ADS**, totaling **$35.0 million**[7](index=7&type=chunk) [Business Outlook & Guidance](index=3&type=section&id=Business%20Outlook%20%26%20Guidance) [2024 Full Year Guidance](index=3&type=section&id=2024%20Full%20Year%20Guidance) Opera projects continued revenue growth and a stable adjusted EBITDA margin for the full year 2024 2024 Full Year Guidance | Metric | 2024 Guidance (Midpoint) | YoY Growth (Midpoint) | | :---------------- | :----------------------- | :-------------------- | | Revenue | $457.5 million | 15% | | Adjusted EBITDA | $108 million | 24% margin | - Operating cash flow for 2023 was **$82.8 million** (88% of adjusted EBITDA), and free cash flow from operations was **$72.5 million** (77% of adjusted EBITDA)[9](index=9&type=chunk) - Total dividends for 2023 amounted to **$1.20 per ADS**, and buybacks totaled **2.77 million ADSs**[9](index=9&type=chunk) [Q1 2024 Guidance](index=3&type=section&id=Q1%202024%20Guidance) The company anticipates continued year-over-year revenue growth and a consistent adjusted EBITDA margin for Q1 2024 Q1 2024 Guidance | Metric | Q1 2024 Guidance (Midpoint) | YoY Growth (Midpoint) | | :---------------- | :------------------------ | :-------------------- | | Revenue | $100 million | 15% | | Adjusted EBITDA | $23.5 million | 24% margin | [Fourth Quarter 2023 Financial Performance](index=3&type=section&id=Fourth%20Quarter%202023%20Financial%20Performance) [Revenue Breakdown](index=3&type=section&id=Revenue%20Breakdown) Q4 2023 revenue grew 17% YoY, driven by strong performance in advertising and search Q4 2023 Revenue by Category | Revenue Category | Q4 2022 (in thousands) | Q4 2023 (in thousands) | YoY Change | | :----------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenue | $96,272 | $113,004 | 17% | | Advertising revenue | $56,753 | $67,833 | 20% | | Search revenue | $39,034 | $44,704 | 15% | | Technology licensing and other revenue | $485 | $466 | -4% | [Operating Expenses Analysis](index=3&type=section&id=Operating%20Expenses%20Analysis) Operating expenses rose 10% YoY in Q4 2023, mainly due to higher platform fees and content costs Q4 2023 Operating Expenses | Expense Category | Q4 2022 (in thousands) | Q4 2023 (in thousands) | YoY Change | | :-------------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Operating expenses | $84,577 | $93,154 | 10% | | Combined technology & platform fees, content cost, cost of inventory sold | $18,952 | $28,540 | 51% | | Personnel expenses (incl. share-based) | $21,095 | $20,617 | -2% | | Marketing and distribution expenses | $29,558 | $30,148 | 2% | | Depreciation and amortization | $3,490 | $3,225 | -8% | | All other operating expenses | $7,002 | $9,169 | 31% | - Personnel expenses, excluding share-based remuneration, **decreased by 6% YoY to $16.1 million**[16](index=16&type=chunk) - An increase in professional services fees contributed to the overall increase in 'All other operating expenses', related to strengthening internal controls[16](index=16&type=chunk) [Profitability Metrics](index=3&type=section&id=Profitability%20Metrics) Profitability improved significantly in Q4 2023, boosted by a substantial fair value gain on the OPay investment Q4 2023 Profitability | Metric | Q4 2022 (in thousands) | Q4 2023 (in thousands) | YoY Change | | :----------------------- | :--------------------- | :--------------------- | :--------- | | Operating profit | $11,842 | $20,327 | 72% | | Operating margin | 12% | 18% | +6 ppts | | Net income | $20,922 | $123,558 | 491% | | Basic earnings per ADS | $0.22 | $1.41 | 541% | | Adjusted EBITDA | $22,784 | $27,764 | 22% | | Adjusted EBITDA margin | 23.7% | 24.6% | +0.9 ppts | - Net income of **$123.6 million** included a **$105.9 million gain** from the updated valuation of the OPay investment, with underlying profit at **$17.6 million**[14](index=14&type=chunk) - Basic earnings per ADS was **$1.41**, of which **$1.21** related to OPay and **$0.20** to underlying profit[14](index=14&type=chunk) [Cash Flow Performance](index=3&type=section&id=Cash%20Flow%20Performance) The company demonstrated strong cash generation in Q4 2023 with increased operating and free cash flow Q4 2023 Cash Flow | Metric | Q4 2022 (in thousands) | Q4 2023 (in thousands) | YoY Change | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Operating cash flow | $23,542 | $25,284 | 7% | | Operating cash flow as % of Adjusted EBITDA | 103% | 91% | -12 ppts | | Free cash flow from operations | $20,282 | $22,499 | 11% | | Free cash flow from operations as % of Adjusted EBITDA | 89% | 81% | -8 ppts | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Operations](index=7&type=section&id=Consolidated%20Statement%20of%20Operations) The statement details revenue, expenses, and net income, showing significant net income growth for 2023 | (In thousands) | Q4 2022 | Q4 2023 | FY 2022 | FY 2023 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Revenue | $96,272 | $113,004 | $331,037 | $396,827 | | Total operating expenses | $(84,577) | $(93,154) | $(290,906) | $(334,603) | | Operating profit | $11,842 | $20,327 | $40,600 | $62,890 | | Fair value gain on investments | $1,500 | $105,945 | $1,500 | $105,945 | | Net finance income (expense) | $6,898 | $(653) | $(18,224) | $7,269 | | Income before income taxes | $20,241 | $125,620 | $23,870 | $176,105 | | Net income attributable to owners of the parent | $20,922 | $123,558 | $15,035 | $169,408 | | Diluted earnings per ADS | $0.22 | $1.38 | $0.14 | $1.86 | [Consolidated Statement of Comprehensive Income](index=7&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income components for the reported periods | (In thousands) | Q4 2022 | Q4 2023 | FY 2022 | FY 2023 | | :---------------------------------------------------------------- | :------ | :------ | :------ | :------ | | Net income | $20,922 | $123,558 | $15,035 | $169,408 | | Exchange differences on translation of foreign operations | $1,775 | $1,387 | $(3,477) | $(742) | | Total comprehensive income attributable to owners of the parent | $22,601 | $124,945 | $12,170 | $168,666 | [Consolidated Statement of Financial Position](index=9&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The balance sheet reflects increased total assets, driven by the OPay investment revaluation, and a strong equity position | (In thousands) | As of Dec 31, 2022 | As of Dec 31, 2023 | | :------------------------------------ | :----------------- | :----------------- | | Total non-current assets | $624,473 | $818,589 | | Investment in OPay | $- | $269,407 | | Total current assets | $340,213 | $208,461 | | Cash and cash equivalents | $52,414 | $93,863 | | Total assets | $964,686 | $1,027,050 | | Total equity attributable to owners of the parent | $888,213 | $935,957 | | Total liabilities | $76,472 | $91,093 | | Total equity and liabilities | $964,686 | $1,027,050 | [Consolidated Statement of Changes in Equity](index=10&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement shows movements in equity from net income, dividends, and share repurchases for 2023 | (In thousands) | As of Jan 1, 2022 | Net Income (FY22) | Acquisition of treasury shares (FY22) | As of Dec 31, 2022 | Net Income (FY23) | Dividends (FY23) | Acquisition of treasury shares (FY23) | As of Dec 31, 2023 | | :------------------------------------ | :---------------- | :---------------- | :------------------------------------ | :----------------- | :---------------- | :--------------- | :------------------------------------ | :----------------- | | Total equity attributable to owners of the parent | $1,013,039 | $15,035 | $(146,068) | $888,213 | $169,408 | $(107,222) | $(32,695) | $935,957 | | Retained earnings | $249,155 | $15,035 | $- | $273,262 | $169,408 | $- | $- | $461,271 | | Treasury shares | $(60,453) | $- | $(146,063) | $(206,514) | $- | $- | $(32,695) | $(238,815) | [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The statement highlights cash from operations and usage in financing, resulting in a net cash increase for the year | (In thousands) | Q4 2022 | Q4 2023 | FY 2022 | FY 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Net cash flow from operating activities | $23,542 | $25,284 | $56,662 | $82,761 | | Net cash flow from (used in) investing activities | $(4,795) | $(1,105) | $44,450 | $19,999 | | Net cash flow used in financing activities | $(132,993) | $(14,048) | $(150,578) | $(59,843) | | Net change in cash and cash equivalents | $(114,245) | $10,131 | $(49,465) | $42,918 | | Cash and cash equivalents at end of period | $52,414 | $93,863 | $52,414 | $93,863 | [Supplemental Financial Information](index=12&type=section&id=Supplemental%20Financial%20Information) [Revenue Details](index=12&type=section&id=Revenue%20Details) This section provides a detailed breakdown of revenue, with advertising and search as the primary drivers | Revenue Category | Q4 2022 (in thousands) | Q4 2023 (in thousands) | FY 2022 (in thousands) | FY 2023 (in thousands) | | :----------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Advertising | $56,753 | $67,833 | $187,434 | $230,980 | | Search | $39,034 | $44,704 | $140,162 | $162,168 | | Technology licensing and other revenue | $485 | $466 | $3,441 | $3,679 | | Total revenue | $96,272 | $113,004 | $331,037 | $396,827 | [Personnel Expenses Details](index=12&type=section&id=Personnel%20Expenses%20Details) This section details personnel expenses, separating cash-based compensation from share-based remuneration | Expense Category | Q4 2022 (in thousands) | Q4 2023 (in thousands) | FY 2022 (in thousands) | FY 2023 (in thousands) | | :---------------------------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Personnel expenses, excluding share-based remuneration | $16,999 | $16,053 | $65,284 | $65,801 | | Share-based remuneration, including related social security costs | $4,096 | $4,564 | $9,304 | $16,950 | | Total personnel expenses including share-based remuneration | $21,095 | $20,617 | $74,588 | $82,750 | - Share-based remuneration includes grants by Kunlun (Opera's ultimate parent) to Opera employees, which are expensed but do not dilute Opera's shareholders[39](index=39&type=chunk) [Other Operating Expenses Details](index=12&type=section&id=Other%20Operating%20Expenses%20Details) This section breaks down other operating expenses, showing increases in hosting and professional services fees | Expense Category | Q4 2022 (in thousands) | Q4 2023 (in thousands) | FY 2022 (in thousands) | FY 2023 (in thousands) | | :------------------------------ | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Hosting | $2,398 | $2,549 | $9,267 | $10,161 | | Audit, legal and other advisory services | $1,468 | $2,858 | $6,857 | $7,975 | | Software license fees | $608 | $928 | $2,149 | $3,357 | | Rent and other office expenses | $1,078 | $664 | $3,743 | $2,700 | | Travel | $446 | $524 | $1,496 | $1,848 | | Other | $1,004 | $1,646 | $3,193 | $4,101 | | Total other operating expenses | $7,002 | $9,169 | $26,705 | $30,143 | [Non-IFRS Financial Measures & Reconciliations](index=5&type=section&id=Non-IFRS%20Financial%20Measures%20%26%20Reconciliations) [Definitions of Non-IFRS Measures](index=5&type=section&id=Definitions%20of%20Non-IFRS%20Measures) This section defines Adjusted EBITDA and Free Cash Flow from Operations as supplemental performance measures - **Adjusted EBITDA** is defined as net income excluding items like income tax, net finance expense, fair value gains, depreciation, and share-based remuneration[21](index=21&type=chunk) - **Free cash flow from operations** is defined as net cash from operating activities less capital expenditures and lease liability payments[22](index=22&type=chunk) - These non-IFRS measures provide greater transparency for decision-making but should be reviewed in conjunction with IFRS financial information[20](index=20&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This table reconciles net income to the non-IFRS metric Adjusted EBITDA for quarterly and annual periods | (In thousands) | Q4 2022 | Q4 2023 | FY 2022 | FY 2023 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | | Net income | $20,922 | $123,558 | $15,035 | $169,408 | | Income tax expense (benefit) | $(681) | $2,062 | $8,835 | $6,697 | | Net finance expense (income) | $(6,898) | $653 | $18,224 | $(7,269) | | Fair value loss (gain) on investments | $(1,500) | $(105,945) | $(1,500) | $(105,945) | | Depreciation and amortization | $3,490 | $3,225 | $13,939 | $13,165 | | Impairment of non-financial assets | $3,194 | $116 | $3,194 | $681 | | Share-based remuneration, including related social security costs | $4,096 | $4,564 | $9,304 | $16,950 | | Non-recurring expenses | $310 | $9 | $1,517 | $698 | | Other operating income | $(148) | $(478) | $(469) | $(666) | | Adjusted EBITDA | $22,784 | $27,764 | $68,084 | $93,719 | [Reconciliation of Operating Cash Flow to Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Operating%20Cash%20Flow%20to%20Free%20Cash%20Flow) This table reconciles operating cash flow to free cash flow, detailing capital and lease payment deductions | (In thousands) | Q4 2022 | Q4 2023 | FY 2022 | FY 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Net cash flow from operating activities | $23,542 | $25,284 | $56,662 | $82,761 | | Deduct: | | | | | | Purchase of equipment | $(429) | $(594) | $(3,187) | $(1,873) | | Purchase of intangible assets | $- | $(250) | $- | $(250) | | Development expenditure | $(1,878) | $(977) | $(6,789) | $(4,281) | | Payment of lease liabilities | $(953) | $(964) | $(3,837) | $(3,907) | | Free cash flow from operations | $20,282 | $22,499 | $42,849 | $72,451 | [Additional Information](index=4&type=section&id=Additional%20Information) [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) This section provides access details for the Q4 2023 financial results conference call and webcast - **Date & Time:** Thursday, February 29th at 8:00 am Eastern Time (EDT)[18](index=18&type=chunk) - **Confirmation Code:** OPRAQ423[18](index=18&type=chunk) - **Webcast:** A live webcast will be available at https://investor.opera.com[18](index=18&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) This statement clarifies that forward-looking statements are subject to risks and actual results may differ - Forward-looking statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995[23](index=23&type=chunk) - Potential risks include international conflicts, regulatory processes, market acceptance, changes in consumer behavior, and global macroeconomic conditions[23](index=23&type=chunk) [About Opera](index=6&type=section&id=About%20Opera) Opera is a global software company known for its secure and innovative web browsers - Opera is a major browser developer and leading internet consumer brand focused on providing the best browsing experience[24](index=24&type=chunk) - Hundreds of millions use Opera web browsers for their unique and secure features on mobile phones and desktop computers[24](index=24&type=chunk) [Contacts](index=6&type=section&id=Contacts) This section lists contact information for investor relations and media inquiries - **Investor relations:** Matthew Wolfson, investor-relations@opera.com[25](index=25&type=chunk) - **Media:** press-team@opera.com[25](index=25&type=chunk)

Exhibit 99.1 2023 expectations lifted quarter by quarter, full-year revenue concluded at $397 million or 20% annual growth, with adjusted EBITDA at $94 million or 38% annual growth following margin expansion of 300 basis points to 23.6% Company guides revenue of $450-465 million and a 24% adjusted EBITDA margin at the midpoint for 2024 Opera repurchased 1.15 million ADSs for $13 million in the fourth quarter, concluding its third repurchase program OSLO, Norway, February 29, 2024 /PRNewswire/ – Opera Limite ...

One GX Android/iOS PC/Mac Android/iOS PC/Mac EMERGING MARKETS Opera Mini Android and Feature Phones 6 | --- | --- | |------------------------|---------------------------------| | | | | | Tabbed browsing | | A HISTORY OF | Integrated search | | | PC-Mobile sync | | INNOVATION | Data saving | | | Newsfeed | | | Video multitasking | | | Ad blocker | | | Messengers | | One GX | Browser VPN | | | Native Crypto-wallet | | | Hardware controls | | OPERA BROWSER AI ARIA | Data plans in Emerging Markets | | | Modular ...

[Opera Q2 2023 Earnings Release](index=1&type=section&id=Opera%20Q2%202023%20Earnings%20Release) [Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) Opera reported its 10th consecutive quarter of over 20% revenue growth, exceeding guidance and launching its new AI-integrated browser, Opera One [Q2 2023 Financial Performance](index=1&type=section&id=Q2%202023%20Financial%20Performance) The company's revenue grew 21% YoY to $94.1 million, with net income reaching $13.5 million and adjusted EBITDA margin expanding to 21.7% - The second quarter of 2023 was Opera's **10th consecutive quarter of revenue growth exceeding 20%**, with both revenue and profits surpassing expectations[1](index=1&type=chunk)[4](index=4&type=chunk) Q2 & H1 2023 Financial Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | YoY Change | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $94,134 | $77,834 | 21% | $181,185 | $149,417 | 21% | | **Net Income (Loss)** | $13,537 | $(5,836) | NM | $29,015 | $(15,271) | NM | | **Adjusted EBITDA** | $20,466 | $16,569 | 24% | $42,204 | $23,918 | 76% | | **Diluted EPS (ADS)** | $0.15 | $(0.05) | NM | $0.32 | $(0.13) | NM | | **Free Cash Flow** | $13,216 | $(3,974) | NM | $36,533 | $7,536 | 385% | [Business & Operational Highlights](index=1&type=section&id=Business%20%26%20Operational%20Highlights) Key operational achievements include 25% growth in advertising revenue, a 25% increase in annualized ARPU, and the launch of the AI chatbot 'Aria' - Key strategic and product developments in Q2 2023 include the launch of the new flagship browser **Opera One**, the introduction of the integrated AI chatbot **'Aria'**, and the announcement of a **recurring semi-annual dividend of $0.40 per ADS**[1](index=1&type=chunk)[5](index=5&type=chunk)[8](index=8&type=chunk) - The company's cash position increased by **$13 million** during the quarter to **$98 million**, and it holds a combined **$196 million** in assets held for sale and receivables, including its **9.5% stake in OPay**[8](index=8&type=chunk) Q2 2023 Key Operational Metrics | Metric | Value | YoY/QoQ Change | Note | | :--- | :--- | :--- | :--- | | **Advertising Revenue** | $53.8M | +25% YoY | Constitutes 57% of total revenue | | **Search Revenue** | $38.9M | +15% YoY | Driven by focus on high-value users | | **Annualized ARPU** | $1.17 | +25% YoY | - | | **Monthly Active Users (MAUs)** | 316 million | Down slightly QoQ | Strategy focuses on higher monetizing users | | **Opera GX MAUs** | 23.7 million | +9% QoQ | Across PC and mobile | [Business Outlook](index=3&type=section&id=Business%20Outlook) Opera raised its full-year 2023 guidance for revenue and adjusted EBITDA following strong second-quarter performance Updated Full Year 2023 Guidance | Metric | New Guidance | Previous Guidance | | :--- | :--- | :--- | | **Revenue** | $380M - $390M | $373M - $390M | | **Adjusted EBITDA** | $80M - $84M | $77M - $83M | Third Quarter 2023 Guidance | Metric | Guidance | YoY Growth (Midpoint) | | :--- | :--- | :--- | | **Revenue** | $97M - $100M | 15% | | **Adjusted EBITDA** | $18.5M - $20.5M | - | [Detailed Financial Results (Q2 2023)](index=3&type=section&id=Second%20Quarter%202023%20Financial%20Results) Revenue increased 21% YoY to $94.1 million, driven by advertising and search growth, resulting in a net income of $13.5 million - The company reported a net income of **$13.5 million (14% margin)** and basic EPS of **$0.15 per ADS**, compared to a net loss of $5.8 million and a loss of $0.05 per ADS in Q2 2022[17](index=17&type=chunk) Q2 2023 Revenue and Expense Breakdown (YoY Comparison) | Item | Q2 2023 ($M) | YoY Change | Note | | :--- | :--- | :--- | :--- | | **Total Revenue** | 94.1 | +21% | - | | Advertising Revenue | 53.8 | +25% | - | | Search Revenue | 38.9 | +15% | - | | **Total Operating Expenses** | 81.7 | +22% | - | | Personnel Expenses | 21.4 | +12% | Includes $4.6M share-based remuneration | | Marketing & Distribution | 27.0 | +7% | - | | **Operating Profit** | 12.5 | +12% | 13% margin | | **Adjusted EBITDA** | 20.5 | +24% | 22% margin | [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statement of Operations](index=6&type=section&id=Consolidated%20Statement%20of%20Operations) The statement details revenue and expenses, showing a net income of $13.5 million for Q2 2023, a significant turnaround from the prior year's loss Consolidated Statement of Operations Summary (in thousands) | Line Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Revenue** | $94,134 | $77,834 | | Total operating expenses | $(81,650) | $(66,664) | | **Operating profit** | $12,535 | $11,240 | | Net finance income (expense) | $2,150 | $(13,334) | | Profit (loss) before income taxes | $14,684 | $(2,094) | | **Net income (loss)** | $13,537 | $(5,836) | [Consolidated Statement of Financial Position](index=8&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, total assets were $908.5 million, with cash increasing to $98.2 million and total equity standing at $816.5 million Key Balance Sheet Items (in thousands) | Account | As of June 30, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | $908,543 | $964,686 | | Cash and cash equivalents | $98,155 | $52,414 | | Assets held for sale | $163,462 | $86,100 | | **Total Liabilities** | $92,050 | $76,472 | | **Total Equity** | $816,493 | $888,213 | [Consolidated Statement of Cash Flows](index=10&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The company generated $41.2 million in net cash from operations in H1 2023, leading to a $46.7 million increase in cash and cash equivalents Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash flow from operating activities | $41,244 | $15,088 | | Net cash flow from investing activities | $22,194 | $34,441 | | Net cash flow from financing activities | $(16,711) | $(12,192) | | **Net change in cash and cash equivalents** | $46,728 | $37,338 | | **Cash and cash equivalents at end of period** | $98,155 | $139,400 | [Consolidated Statement of Changes in Equity](index=9&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased to $816.5 million, primarily due to $107.2 million in dividend payments offsetting the $29.0 million net income - For the six months ended June 30, 2023, the change in total equity was primarily driven by net income of **$29.0 million**, offset by dividend payments of **$107.2 million** and treasury share acquisitions of **$2.5 million**[38](index=38&type=chunk) [Supplemental Financial Information](index=11&type=section&id=Supplemental%20Financial%20Information) This section details revenue sources, with advertising up 25% and search up 15%, and breaks down personnel expenses including share-based remuneration - Share-based remuneration expense in Q2 2023 was **$4.6 million**, including **$2.1 million** related to options granted by Kunlun, Opera's ultimate parent, which do not cause dilution for its shareholders[43](index=43&type=chunk) Revenue Breakdown (in thousands) | Revenue Source | Q2 2023 | Q2 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Advertising | $53,828 | $43,085 | +25% | | Search | $38,856 | $33,734 | +15% | | Technology licensing and other | $1,450 | $1,016 | +43% | | **Total Revenue** | **$94,134** | **$77,834** | **+21%** | [Non-IFRS Financial Measures & Reconciliations](index=4&type=section&id=Non-IFRS%20Financial%20Measures%20%26%20Reconciliations) The company provides reconciliations for non-IFRS measures like Adjusted EBITDA ($20.5 million) and Free Cash Flow ($13.2 million) for Q2 2023 - The company defines Adjusted EBITDA as net income excluding items such as taxes, net finance income/expense, depreciation & amortization, and share-based remuneration[25](index=25&type=chunk) - Free cash flow is defined as net cash from operating activities less purchases of fixed/intangible assets and payment of lease liabilities[26](index=26&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Q2 2023, in thousands) | Description | Amount | | :--- | :--- | | **Net income** | **$13,537** | | Income tax expense | $1,148 | | Net finance expense (income) | $(2,150) | | Depreciation and amortization | $3,356 | | Share-based remuneration | $4,626 | | Other adjustments | $(51) | | **Adjusted EBITDA** | **$20,466** | Reconciliation to Free Cash Flow from Operations (Q2 2023, in thousands) | Description | Amount | | :--- | :--- | | **Net cash flow from operating activities** | **$15,517** | | Purchase of equipment | $(219) | | Development expenditure | $(1,048) | | Payment of lease liabilities | $(1,034) | | **Free cash flow from operations** | **$13,216** | [Other Information](index=4&type=section&id=Other%20Information) This section includes conference call details, a Safe Harbor statement on forward-looking information, and a corporate overview - The company hosted a conference call on August 24, 2023, to discuss the financial results[21](index=21&type=chunk) - The press release includes a "Safe Harbor" statement under the U.S. Private Securities Litigation Reform Act of 1995, cautioning that forward-looking statements are subject to risks and uncertainties[27](index=27&type=chunk) - Opera is a web innovator headquartered in Oslo, Norway, known for its portfolio of browsers and apps serving hundreds of millions of users[28](index=28&type=chunk)

Opera Limited (NASDAQ:OPRA) Q1 2023 Results Conference Call April 27, 2022 8:00 AM ET Company Participants Matthew Wolfson - Head of Investor Relations Song Lin - Co-Chief Executive Officer Frode Jacobsen - Chief Financial Officer Conference Call Participants Lance Vitanza - TD Cowen Mark Argento - Lake Street Alicia Yap - Citigroup Operator Welcome to the Opera Limited First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be ...

[Q1 2023 Performance Overview](index=1&type=section&id=Opera%20Reports%20Both%20Revenue%20and%20Adjusted%20EBITDA%20Above%20Guidance%20in%20its%20First%20Quarter%202023%20Results) Opera reported strong Q1 2023 results, exceeding guidance with significant revenue and Adjusted EBITDA growth, alongside strategic advancements in AI and user engagement [Financial Highlights](index=1&type=section&id=First%20Quarter%202023%20Financial%20Highlights) Opera reported strong Q1 2023 financial results, exceeding guidance with revenue growth of 21.6% to $87.1 million, a shift to $15.5 million net income, and a 195.8% surge in Adjusted EBITDA to $21.7 million | Financial Metric | Q1 2022 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $71,583K | $87,051K | +21.6% | | Net Income (Loss) | ($9,436K) | $15,478K | n.m. | | Adjusted EBITDA | $7,349K | $21,738K | +195.8% | | Adjusted EBITDA Margin | 10.3% | 25.0% | +14.7 p.p. | | Diluted Net Income per ADS | ($0.08) | $0.17 | n.m. | | Free Cash Flow | $11,510K | $23,318K | +102.6% | - This marks the ninth consecutive quarter of over **20% revenue growth** for the company[1](index=1&type=chunk) - The strong profitability was attributed to revenue outperformance combined with lower-than-anticipated marketing spend[3](index=3&type=chunk) [Business & Strategic Highlights](index=2&type=section&id=First%20Quarter%20and%20Recent%20Business%20Highlights) Opera's Q1 2023 business highlights include significant advertising revenue growth, integration of generative AI, expansion of the Opera GX gaming browser user base, and execution of capital return initiatives - Opera introduced its first generative AI features, including an AI assistant, directly into its browsers to enhance user retention and engagement[1](index=1&type=chunk)[4](index=4&type=chunk)[10](index=10&type=chunk) - Monthly active users (MAUs) were 319 million, down from Q4 due to reduced marketing in lower monetizing markets, however, annualized average revenue per user (ARPU) increased by **30% YoY to $1.08**[10](index=10&type=chunk) - The Opera GX gaming browser's user base grew by **7% QoQ to over 21.7 million** monthly active users[10](index=10&type=chunk) - The company distributed a special dividend of **$0.80 per ADS ($71 million total)** and repurchased **$2.5 million** worth of ADSs during the quarter[10](index=10&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Opera has raised its full-year 2023 guidance for revenue and Adjusted EBITDA, reflecting confidence in continued performance [Full Year 2023 and Q2 2023 Guidance](index=2&type=section&id=Business%20Outlook) Opera raised its full-year 2023 guidance, projecting revenue between $373 million and $390 million and Adjusted EBITDA between $77 million and $83 million, with Q2 2023 revenue expected at $92 million to $94 million | Guidance | Full Year 2023 | Q2 2023 | | :--- | :--- | :--- | | Revenue | $373M - $390M | $92M - $94M | | Adjusted EBITDA | $77M - $83M | $18M - $20M | | Adj. EBITDA Margin (Midpoint) | 21% | 20% | - The company raised the low end of its revenue guidance and both ends of its adjusted EBITDA guidance for the full year 2023[7](index=7&type=chunk)[8](index=8&type=chunk) [Detailed Financial Results (Q1 2023)](index=3&type=section&id=First%20Quarter%202023%20Financial%20Results) A detailed review of Q1 2023 financial performance reveals significant revenue growth, controlled operating expenses, and substantial improvements in profitability and cash flow [Revenue Analysis](index=3&type=section&id=Revenue) Total revenue for Q1 2023 increased by **22% YoY to $87.1 million**, driven by **26% growth in advertising revenue** and **18% growth in search revenue** | Revenue Stream | Q1 2023 Amount | YoY Growth | Key Driver | | :--- | :--- | :--- | :--- | | Advertising | $48.5M | +26% | Opera Ads platform and PC footprint growth | | Search | $37.8M | +18% | PC footprint growth in Western markets | | **Total Revenue** | **$87.1M** | **+22%** | | [Operating Expenses Analysis](index=3&type=section&id=Operating%20expenses) Total operating expenses increased modestly by **4% YoY to $73.2 million**, with a notable **29% decrease in marketing and distribution expenses** to **$24.4 million** - Total operating expenses increased by **4% year-over-year to $73.2 million**[13](index=13&type=chunk) - Marketing and distribution expenses decreased significantly by **29% to $24.4 million**[20](index=20&type=chunk) - Personnel expenses were **$20.1 million**, with cash-based compensation up **7% YoY to $15.5 million** and share-based remuneration at **$4.5 million**[20](index=20&type=chunk) [Profitability and Cash Flow](index=3&type=section&id=Net%20income) Opera's Q1 2023 profitability dramatically improved, with operating profit surging to **$14.0 million**, net income reaching **$15.5 million**, Adjusted EBITDA at **$21.7 million**, and strong free cash flow of **$23.3 million** | Profitability Metric | Q1 2022 | Q1 2023 | | :--- | :--- | :--- | | Operating Profit | $1.3M | $14.0M | | Net Income (Loss) | ($9.4M) | $15.5M | | Adjusted EBITDA | $7.3M | $21.7M | | Free Cash Flow | $11.5M | $23.3M | - Net income per ADS was **$0.17** for the quarter[17](index=17&type=chunk) [Unaudited Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including the statement of operations, financial position, and cash flows for Q1 2023 [Consolidated Statement of Operations](index=6&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Operations) The consolidated statement of operations highlights Q1 2023 revenue of **$87.1 million**, a surge in operating profit to **$14.0 million**, and a net income of **$15.5 million**, reversing a prior-year net loss | Line Item (US$ thousands) | Q1 2022 | Q1 2023 | | :--- | :--- | :--- | | Revenue | 71,583 | 87,051 | | Total operating expenses | (70,413) | (73,230) | | **Operating profit** | **1,342** | **13,950** | | Profit (loss) before income taxes | (8,828) | 18,747 | | **Net income (loss)** | **(9,436)** | **15,478** | | Diluted earnings per ADS, US$ | (0.08) | 0.17 | [Consolidated Statement of Financial Position](index=7&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2023, Opera's balance sheet shows total assets of **$911.6 million**, total liabilities of **$78.1 million**, and total equity of **$833.5 million**, with notable changes in assets held for sale and cash | Balance Sheet Item (US$ thousands) | Dec 31, 2022 | Mar 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **964,686** | **911,550** | | Cash and cash equivalents | 52,414 | 84,843 | | Assets held for sale | 86,100 | 163,462 | | **Total Liabilities** | **76,472** | **78,095** | | **Total Equity** | **888,213** | **833,455** | [Consolidated Statement of Cash Flows](index=9&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Cash%20Flows) For Q1 2023, net cash flow from operating activities was **$25.7 million**, investing activities provided **$22.6 million**, and financing activities used **$15.9 million**, leading to a net increase in cash of **$32.4 million** | Cash Flow Activity (US$ thousands) | Q1 2022 | Q1 2023 | | :--- | :--- | :--- | | Net cash flow from operating activities | 13,464 | 25,727 | | Net cash flow from investing activities | 5,841 | 22,583 | | Net cash flow used in financing activities | (4,199) | (15,905) | | **Net change in cash and cash equivalents** | **15,108** | **32,405** | | Cash and cash equivalents at end of period | 117,786 | 84,843 | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section provides supplemental information, including reconciliations of non-IFRS financial measures and other corporate details [Non-IFRS Financial Measures and Reconciliations](index=4&type=section&id=Non-IFRS%20Financial%20Measures) Opera utilizes non-IFRS measures like Adjusted EBITDA and Free Cash Flow, with Q1 2023 Adjusted EBITDA at **$21.7 million** and free cash flow at **$23.3 million**, reconciled from IFRS results - Adjusted EBITDA is defined as net income excluding items like taxes, net finance expense, depreciation & amortization, and share-based remuneration[25](index=25&type=chunk) - Free cash flow from operations is defined as net cash flows from operating activities less purchases of fixed/intangible assets, development expenditure, and lease liability payments[26](index=26&type=chunk) | Reconciliation to Adjusted EBITDA (US$ thousands) | Q1 2023 | | :--- | :--- | | Net income | 15,478 | | Add: Income tax expense | 3,269 | | Deduct: Net finance income | (4,797) | | Add: Depreciation and amortization | 3,380 | | Add: Share-based remuneration | 4,537 | | **Adjusted EBITDA** | **21,738** | [Other Information](index=4&type=section&id=Other%20Information) This section includes details for the Q1 2023 results conference call, a Safe Harbor statement for forward-looking information, and a brief corporate profile of Opera - A conference call to discuss the financial results was scheduled for April 27th at 8:00 am Eastern Time[21](index=21&type=chunk) - The press release includes a Safe Harbor statement, cautioning that forward-looking statements are subject to risks and uncertainties[27](index=27&type=chunk) - Opera is a global web innovator headquartered in Oslo, Norway, and is listed on the Nasdaq under the ticker symbol "OPRA"[28](index=28&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) ...

Opera Limited (NASDAQ:OPRA) Q4 2022 Earnings Conference Call February 27, 2023 8:00 AM ET Company Participants Matt Wolfson - Head of Investor Relations Song Lin - Co-Chief Executive Officer Frode Jacobsen - Chief Financial Officer Conference Call Participants Mark Argento - Lake Street Alicia Yap - Citigroup Operator Welcome to the Opera Limited Fourth Quarter and Full Year 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a questi ...

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) Opera achieved record financial results in Q4 and FY2022, driven by strong revenue and user growth, expanded profitability, and strategic AI integration [Financial Performance Overview (Q4 & FY2022)](index=1&type=section&id=1.1.%20Financial%20Performance%20Overview%20(Q4%20%26%20FY2022)) Opera reported record financial results for Q4 and Full Year 2022, exceeding guidance with strong revenue growth and significant adjusted EBITDA margin expansion Financial Performance Summary (US$ thousands) | Metric | Q4 2021 (US$ thousands) | Q4 2022 (US$ thousands) | YoY % Change | FY 2021 (US$ thousands) | FY 2022 (US$ thousands) | YoY % Change | | :-------------------------------- | :---------------------- | :---------------------- | :----------- | :---------------------- | :---------------------- | :----------- | | Revenue | 72,626 | 96,272 | 32.6% | 250,991 | 331,037 | 31.9% | | Net income (loss) | (112,390) | 20,922 | n.m. | (43,964) | 15,035 | n.m. | | Adjusted EBITDA | 17,254 | 22,784 | 32.1% | 29,012 | 68,084 | 134.7% | | Adjusted EBITDA Margin | 23.8% | 23.7% | - | 11.6% | 20.6% | +9.0 pp | | Diluted net income (loss) per ADS | (0.97) | 0.22 | n.m. | (0.38) | 0.14 | n.m. | | Diluted adjusted net income (loss) per ADS | (0.92) | 0.27 | n.m. | (0.19) | 0.25 | n.m. | - **Co-CEO Song Lin** highlighted that Opera outperformed expectations, delivering record revenue with strong profitability and cash generation despite geopolitical and macroeconomic uncertainty[3](index=3&type=chunk)[4](index=4&type=chunk) [Business & User Growth Highlights](index=2&type=section&id=1.2.%20Business%20%26%20User%20Growth%20Highlights) Opera's core search and advertising revenue and user base, particularly for Opera GX in western markets, experienced significant growth driven by increased ARPU and the Opera Ads platform - Core search and advertising revenue grew **34% year-over-year**, fueled by ARPU growth and the Opera Ads platform[5](index=5&type=chunk) - Opera's average monthly active user base reached **324 million MAUs**, with strongest growth in western markets, indicating a successful shift towards higher-value users[5](index=5&type=chunk) - The Opera GX gaming browser exceeded **20 million monthly active users** across PC and mobile in Q4, an **11% increase** from Q3 2022[1](index=1&type=chunk)[5](index=5&type=chunk) - Average Revenue Per User (ARPU) on an annualized basis increased to **$1.18** in Q4, up **12% QoQ** and **42% YoY**[5](index=5&type=chunk) [Capital Allocation & Shareholder Returns](index=1&type=section&id=1.3.%20Capital%20Allocation%20%26%20Shareholder%20Returns) Opera actively returned capital to shareholders through significant share repurchases in 2022 and a special dividend paid in early 2023, while maintaining an ongoing buyback program - Company repurchased **26.7 million ADS equivalents** in 2022 at a total cost of **$146 million** (**$5.46 per ADS**)[1](index=1&type=chunk) - In February 2023, Opera paid a special dividend of **$0.80 per ADS**, totaling **$71 million**[1](index=1&type=chunk)[5](index=5&type=chunk) - A **$50 million** open market buy-back program remains in place, with **$32.7 million** remaining as of year-end 2022[1](index=1&type=chunk)[5](index=5&type=chunk) [Strategic Initiatives & Product Development](index=2&type=section&id=1.4.%20Strategic%20Initiatives%20%26%20Product%20Development) Opera is strategically expanding its product offerings by integrating AI-generated content (AIGC) services into its browsers and other products, leveraging both internal solutions and partnerships - Opera announced the upcoming integration of AI-generated content (AIGC) services into its PC and mobile browsers in February 2023[5](index=5&type=chunk) - The company is expanding its existing AI program into AIGC for its browser, news, and gaming products through its own solutions and new/existing partnerships[5](index=5&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) Opera provides cautious financial guidance for Q1 and Full Year 2023, projecting continued revenue growth and healthy adjusted EBITDA margins despite economic uncertainties [Full Year 2023 Guidance](index=3&type=section&id=2.1.%20Full%20Year%202023%20Guidance) Opera provided initial guidance for the full year 2023, projecting revenue growth and a healthy adjusted EBITDA margin, based on cautious expectations reflecting the current economic environment - The company sets cautious expectations, basing guidance on a **15% annual revenue growth** at the midpoint, reflecting a prudent view of the 2023 economic environment[7](index=7&type=chunk) Full Year 2023 Guidance (Midpoint) | Metric | FY 2023 Guidance (Midpoint) | | :---------------- | :-------------------------- | | Revenue | $370 - $390 million ($380 million midpoint) | | Adjusted EBITDA | $71 - $81 million ($76 million midpoint) | | Adjusted EBITDA Margin | 20% | [First Quarter 2023 Guidance](index=3&type=section&id=2.2.%20First%20Quarter%202023%20Guidance) For the first quarter of 2023, Opera anticipates continued revenue growth and a strong adjusted EBITDA margin, accounting for typical seasonality in advertising revenue First Quarter 2023 Guidance (Midpoint) | Metric | Q1 2023 Guidance (Midpoint) | | :---------------- | :-------------------------- | | Revenue | $83 - $85 million ($84 million midpoint) | | YoY Growth | 17% | | Adjusted EBITDA | $17 - $19 million ($18 million midpoint) | | Adjusted EBITDA Margin | 21% | - The Q1 guidance reflects greater seasonality as advertising revenue has scaled rapidly[9](index=9&type=chunk) [Other Updates](index=3&type=section&id=Other%20Updates) Opera completed the Nanobank receivable settlement by acquiring OPay shares and adjusted its 2023 guidance to reflect the impact of European sanctions [Nanobank Receivable Settlement](index=3&type=section&id=3.1.%20Nanobank%20Receivable%20Settlement) Opera settled its Nanobank receivable by accepting OPay shares instead of future cash installments, leading to an impairment charge but increasing its stake in the fast-growing OPay - Opera settled its Nanobank receivable by taking immediate full payment in OPay shares, triggered by Nanobank's sale of the majority of its business to OPay[5](index=5&type=chunk)[10](index=10&type=chunk) - The settlement resulted in an impairment of the receivable by **$35.9 million** to a net fair value of **$76.3 million** as of year-end 2022[5](index=5&type=chunk)[12](index=12&type=chunk) - Opera's stake in OPay increased from **6.4% to 9.5%**, which is classified as 'held for sale', with OPay continuing its strong growth trajectory[5](index=5&type=chunk)[13](index=13&type=chunk) [European Sanctions Impact](index=4&type=section&id=3.2.%20European%20Sanctions%20Impact) European sanctions related to the conflict in Ukraine have impacted Opera's business, leading to a projected revenue headwind and a cautious outlook for the affected region - The war in Ukraine and subsequent EU/Norway sanctions, particularly the 9th sanctions package in December 2022, have impacted Opera's business[14](index=14&type=chunk) - Impacts include shifting FX rates, decline in advertiser interest, and termination of several advertising contracts due to limitations on providing services to Russian entities[14](index=14&type=chunk) - Opera has reflected an approximate **$10 million headwind** related to existing sanctions in its 2023 guidance[14](index=14&type=chunk) [Fourth Quarter 2022 Consolidated Financial Results](index=4&type=section&id=Fourth%20Quarter%202022%20Consolidated%20Financial%20Results) Opera's Q4 2022 results show significant revenue growth driven by advertising and PC footprint expansion, improved profitability, and positive adjusted financial metrics despite increased operating expenses [Revenue Analysis](index=4&type=section&id=4.1.%20Revenue%20Analysis) Opera's total revenue increased significantly in Q4 2022, primarily driven by strong growth in advertising revenue and continued expansion of its PC footprint in western markets - Total revenue increased by **33% year-over-year** to **$96.3 million** in Q4 2022[15](index=15&type=chunk) Revenue by Category (US$ thousands) | Revenue Category | Q4 2021 (US$ thousands) | Q4 2022 (US$ thousands) | YoY % Change | | :-------------------------- | :---------------------- | :---------------------- | :----------- | | Search revenue | 34,751 | 39,034 | 12% | | Advertising revenue | 36,666 | 56,753 | 55% | | Technology licensing and other | 1,210 | 485 | -60% | - Search revenue growth was driven by the PC footprint in western markets, especially North America, while advertising revenue benefited from the Opera Ads platform and western PC footprint growth[17](index=17&type=chunk) [Operating Expenses](index=4&type=section&id=4.2.%20Operating%20Expenses) Operating expenses increased in Q4 2022, mainly due to higher cost of inventory sold and personnel expenses, while marketing and distribution expenses remained stable - Total operating expenses increased by **22%** to **$84.6 million** in Q4 2022[16](index=16&type=chunk) Operating Expenses by Category (US$ thousands) | Expense Category | Q4 2021 (US$ thousands) | Q4 2022 (US$ thousands) | YoY % Change | | :-------------------------------------- | :---------------------- | :---------------------- | :----------- | | Combined tech & platform fees, content cost, cost of inventory sold | 5,540 | 19,000 | +243% | | Personnel expenses (incl. share-based) | 17,668 | 21,095 | 19% | | Marketing and distribution expenses | 29,969 | 29,558 | -1% | | Depreciation and amortization | 4,555 | 3,490 | -23% | | Impairment of non-financial assets | 5,624 | 3,194 | -43% | | All other operating expenses | 5,567 | 8,300 | +49% | - Personnel expenses increased due to higher headcount and salary adjustments, while other operating expenses rose due to increased activity levels and credit loss provisions[17](index=17&type=chunk) [Profitability and Net Income](index=5&type=section&id=4.3.%20Profitability%20and%20Net%20Income) Opera significantly improved its profitability in Q4 2022, moving from a net loss to a net income, driven by increased operating profit and a net finance gain that offset the Nanobank receivable impairment Profitability Metrics (US$ thousands) | Metric | Q4 2021 (US$ thousands) | Q4 2022 (US$ thousands) | YoY % Change | | :---------------- | :---------------------- | :---------------------- | :----------- | | Operating profit | 3,780 | 11,842 | +213% | | Net finance gain | (4,064) | 6,898 | n.m. | | Income tax gain | (2,435) | 681 | n.m. | | Net income (loss) | (112,390) | 20,922 | n.m. | | Net income per ADS | (0.97) | 0.22 | n.m. | - Net finance gain of **$6.9 million** was primarily due to the appreciation of marketable securities, which more than offset the impairment of the Nanobank receivable[18](index=18&type=chunk) - The significant improvement in net income from a loss of **$112.4 million** in Q4 2021 was largely due to the absence of the **$115.5 million Nanobank impairment** recorded in the prior year[19](index=19&type=chunk) [Adjusted Financial Metrics](index=5&type=section&id=4.4.%20Adjusted%20Financial%20Metrics) Opera's adjusted financial metrics also showed strong performance in Q4 2022, with adjusted EBITDA increasing and adjusted net income turning positive, reflecting core operational strength Adjusted Financial Metrics (US$ thousands) | Metric | Q4 2021 (US$ thousands) | Q4 2022 (US$ thousands) | YoY % Change | | :---------------------- | :---------------------- | :---------------------- | :----------- | | Adjusted EBITDA | 17,254 | 22,784 | 32.1% | | Adjusted EBITDA Margin | 23.8% | 23.7% | -0.1 pp | | Adjusted net income (loss) | (105,673) | 25,890 | n.m. | | Adjusted net income per ADS | (0.92) | 0.28 | n.m. | [About Non-IFRS Financial Measures](index=6&type=section&id=About%20Non-IFRS%20Financial%20Measures) This section defines and reconciles Opera's non-IFRS financial measures, Adjusted EBITDA and Adjusted Net Income, to provide a clearer view of core operating performance [Definitions of Non-IFRS Measures](index=6&type=section&id=5.1.%20Definitions%20of%20Non-IFRS%20Measures) Opera utilizes Adjusted EBITDA and Adjusted Net Income (Loss) as non-IFRS financial measures to provide a clearer view of its core operating performance, excluding certain non-recurring or non-cash items - Adjusted EBITDA is defined as net income (loss) excluding income tax, net finance expense, share of net loss of equity-accounted investees, fair value loss/gain from investments, depreciation and amortization, impairment of assets, share-based remuneration, credit loss expense, non-recurring expenses, less other operating income and profit/loss from discontinued operations[26](index=26&type=chunk) - Adjusted net income (loss) is defined as net income (loss) excluding share-based remuneration, amortization of acquired intangible assets, amortization of Nanobank intangible assets, credit loss expense, other non-recurring expenses, and profit/loss from discontinued operations, adjusted for associated tax benefits[27](index=27&type=chunk) - These non-IFRS measures are used to understand and evaluate core operating performance and are not intended as substitutes for IFRS financial information[25](index=25&type=chunk)[28](index=28&type=chunk) [Reconciliation of Non-IFRS Measures](index=16&type=section&id=5.2.%20Reconciliation%20of%20Non-IFRS%20Measures) The report provides detailed reconciliations of net income (loss) to Adjusted EBITDA and Adjusted Net Income (Loss) for both the fourth quarter and full year periods, illustrating the adjustments made from IFRS to non-IFRS metrics Reconciliation of Net Income (Loss) to Adjusted EBITDA (US$ thousands) | Item | Q4 2021 | Q4 2022 | FY 2021 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net income (loss) | (112,390) | 20,922 | (43,964) | 15,035 | | Add (deduct) adjustments | 129,644 | 1,862 | 72,976 | 53,049 | | **Adjusted EBITDA** | **17,254** | **22,784** | **29,012** | **68,084** | Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (US$ thousands) | Item | Q4 2021 | Q4 2022 | FY 2021 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net Income (loss) | (112,390) | 20,922 | (43,964) | 15,035 | | Add (deduct) adjustments | 6,717 | 4,968 | 21,858 | 12,888 | | **Adjusted net income (loss)** | **(105,673)** | **25,890** | **(22,106)** | **27,923** | [Unaudited Consolidated Financial Statements](index=8&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) This section presents Opera's unaudited consolidated financial statements, including statements of operations, comprehensive income, financial position, changes in equity, and cash flows for the reported periods [Consolidated Statement of Operations](index=8&type=section&id=6.1.%20Consolidated%20Statement%20of%20Operations) The Consolidated Statement of Operations presents Opera's revenues, operating expenses, and net income (loss) for the three and twelve months ended December 31, 2021 and 2022, highlighting the significant shift from a net loss to a net income in 2022 Consolidated Statement of Operations (US$ thousands) | [US$ thousands] | Q4 2021 | Q4 2022 | FY 2021 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Revenue | 72,626 | 96,272 | 250,991 | 331,037 | | Total operating expenses | (69,094) | (84,577) | (257,668) | (290,906) | | Operating profit (loss) | 3,780 | 11,842 | (6,211) | 40,600 | | Net income (loss) attributable to owners of the parent | (112,390) | 20,922 | (43,964) | 15,035 | | Diluted earnings per ADS, US$ | (0.98) | 0.22 | (0.38) | 0.14 | [Consolidated Statement of Comprehensive Income](index=9&type=section&id=6.2.%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Consolidated Statement of Comprehensive Income details the net income (loss) and other comprehensive income (loss) components, such as exchange differences on foreign operations, for the reported periods Consolidated Statement of Comprehensive Income (US$ thousands) | [US$ thousands] | Q4 2021 | Q4 2022 | FY 2021 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net income (loss) | (112,390) | 20,922 | (43,964) | 15,035 | | Other comprehensive income (loss) | (211) | 1,679 | (928) | (2,865) | | Total comprehensive income (loss) attributable to owners of the parent | (112,601) | 22,601 | (44,891) | 12,170 | [Consolidated Statement of Financial Position](index=10&type=section&id=6.3.%20Consolidated%20Statement%20of%20Financial%20Position) The Consolidated Statement of Financial Position provides a snapshot of Opera's assets, liabilities, and equity as of December 31, 2021 and 2022, showing a decrease in total assets and an increase in non-current receivables from sale of investments Consolidated Statement of Financial Position (US$ thousands) | [US$ thousands] | As of Dec 31, 2021 | As of Dec 31, 2022 | | :------------------------------------------ | :----------------- | :----------------- | | Total non-current assets | 551,475 | 624,473 | | Total current assets | 540,986 | 340,213 | | **Total assets** | **1,092,460** | **964,686** | | Total equity attributable to owners of the parent | 1,013,039 | 888,213 | | Total liabilities | 79,421 | 76,472 | | **Total equity and liabilities** | **1,092,460** | **964,686** | - Non-current receivables from sale of investments increased from **$0 to $76.3 million**, reflecting the Nanobank settlement[35](index=35&type=chunk) - Cash and cash equivalents decreased from **$102.9 million to $52.4 million**[35](index=35&type=chunk) [Consolidated Statement of Changes in Equity](index=11&type=section&id=6.4.%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Consolidated Statement of Changes in Equity outlines the movements in Opera's equity components, including net profit, other comprehensive loss, share-based remuneration, and significant treasury share acquisitions Consolidated Statement of Changes in Equity (US$ thousands) | [US$ thousands] | As of Dec 31, 2021 | As of Dec 31, 2022 | | :------------------------------------------ | :----------------- | :----------------- | | Total equity attributable to owners of the parent | 1,013,039 | 888,213 | | Net profit (loss) | (43,964) | 15,035 | | Acquisition of treasury shares | (749) | (146,068) | | Treasury shares (balance) | (60,453) | (206,514) | | Retained earnings (balance) | 249,155 | 273,262 | - The company acquired a substantial amount of treasury shares in 2022, totaling **$146.1 million**[36](index=36&type=chunk) [Consolidated Statement of Cash Flows](index=12&type=section&id=6.5.%20Consolidated%20Statement%20of%20Cash%20Flows) The Consolidated Statement of Cash Flows details the cash generated from operating, investing, and financing activities, showing a significant increase in cash flow from operating activities and a large outflow from financing activities due to treasury share acquisitions Consolidated Statement of Cash Flows (US$ thousands) | [US$ thousands] | Q4 2021 | Q4 2022 | FY 2021 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net cash flow from operating activities | 16,473 | 23,542 | 26,564 | 56,662 | | Net cash flow from (used in) investing activities | (1,537) | (4,795) | (49,703) | 44,450 | | Net cash flow used in financing activities | (1,495) | (132,993) | (6,683) | (150,578) | | Net change in cash and cash equivalents | 13,441 | (114,245) | (29,822) | (49,465) | | Cash and cash equivalents at end of period | 102,876 | 52,414 | 102,876 | 52,414 | - Cash flow from operating activities more than doubled year-over-year for the full year 2022, reaching **$56.7 million**[37](index=37&type=chunk) - The substantial net cash outflow from financing activities in Q4 and FY 2022 was primarily driven by the acquisition of treasury shares[37](index=37&type=chunk) [Supplemental Financial Details](index=13&type=section&id=Supplemental%20Financial%20Details) This section provides supplemental financial details, including revenue and expenses by business area, and a breakdown of personnel and other operating expenses [Financial Details by Business Area](index=14&type=section&id=7.1.%20Financial%20Details%20by%20Business%20Area) Opera provides a breakdown of revenue and direct expenses by its 'Browser and News' and 'Other' business areas, demonstrating that the 'Browser and News' segment is the primary driver of revenue and contribution Q4 2022 Revenue by Business Area (US$ thousands) | Revenue Category | Browser and News | Other | Total | | :-------------------------- | :--------------- | :---- | :---- | | Search | 39,034 | - | 39,034 | | Advertising | 56,746 | 7 | 56,753 | | Technology licensing and other | 15 | 470 | 485 | | **Total revenue** | **95,795** | **477** | **96,272** | FY 2022 Revenue by Business Area (US$ thousands) | Revenue Category | Browser and News | Other | Total | | :-------------------------- | :--------------- | :---- | :---- | | Search | 140,162 | - | 140,162 | | Advertising | 187,405 | 29 | 187,434 | | Technology licensing and other | 789 | 2,652 | 3,441 | | **Total revenue** | **328,356** | **2,681** | **331,037** | - The 'Browser and News' segment generated **$46.4 million** in contribution in Q4 2022, compared to **$0.36 million** from 'Other'[39](index=39&type=chunk) [Personnel Expenses Including Share-based Remuneration](index=15&type=section&id=7.2.%20Personnel%20Expenses%20Including%20Share-based%20Remuneration) This section details Opera's personnel expenses, including both cash-based compensation and share-based remuneration, showing an increase in total personnel costs in Q4 2022 Personnel Expenses (US$ thousands) | [US$ thousands] | Q4 2021 | Q4 2022 | FY 2021 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Personnel expenses, excluding share-based remuneration | 14,125 | 16,999 | 63,984 | 65,284 | | Share-based remuneration, including related social security costs | 3,543 | 4,096 | 10,466 | 9,304 | | **Total personnel expenses including share-based remuneration** | **17,668** | **21,095** | **74,450** | **74,588** | - Cash-based compensation increased by **20% year-over-year** in Q4 2022, mainly due to increased headcount and salary adjustments[17](index=17&type=chunk) [Other Operating Expenses](index=15&type=section&id=7.3.%20Other%20Operating%20Expenses) The breakdown of other operating expenses reveals increases across several categories in Q4 and FY 2022, particularly in hosting and audit/legal services Other Operating Expenses (US$ thousands) | [US$ thousands] | Q4 2021 | Q4 2022 | FY 2021 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Hosting | 1,933 | 2,398 | 7,647 | 9,267 | | Audit, legal and other advisory services | 1,351 | 1,468 | 6,579 | 6,857 | | Software license fees | 451 | 608 | 1,782 | 2,149 | | Rent and other office expense | 786 | 1,078 | 3,152 | 3,743 | | Travel | 223 | 446 | 542 | 1,496 | | Other | 822 | 1,004 | 3,101 | 3,193 | | **Total other operating expenses** | **5,567** | **7,002** | **22,802** | **26,705** | - Total other operating expenses increased by **44% year-over-year** in Q4 2022, driven by increased activity levels and cautious credit loss provisions[17](index=17&type=chunk) [Corporate Information](index=7&type=section&id=Corporate%20Information) This section provides essential corporate information about Opera, including its profile, a safe harbor statement for forward-looking information, and investor relations contacts [About Opera](index=7&type=section&id=8.1.%20About%20Opera) Opera is a global web innovator known for its browsers, gaming, Web3, and news products, serving hundreds of millions of users worldwide and listed on Nasdaq - Opera is a global web innovator, headquartered in Oslo, Norway, and listed on the Nasdaq stock market (OPRA)[30](index=30&type=chunk) - Its product portfolio includes browsers, gaming, Web3, and news products, trusted by hundreds of millions of users globally[30](index=30&type=chunk) [Safe Harbor Statement](index=7&type=section&id=8.2.%20Safe%20Harbor%20Statement) This section serves as a disclaimer for forward-looking statements made in the press release, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections - The press release contains forward-looking statements under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995[29](index=29&type=chunk) - These statements involve known and unknown risks and uncertainties, including those related to the conflict in Ukraine, regulatory processes, product development, user growth, and global macroeconomic conditions[29](index=29&type=chunk) - Investors are cautioned that actual results may differ materially from anticipated results, and the company undertakes no obligation to update forward-looking statements except as required by law[29](index=29&type=chunk) [Investor Relations Contact](index=7&type=section&id=8.3.%20Investor%20Relations%20Contact) Contact information for investor relations and media inquiries is provided for stakeholders seeking further information about Opera - Investor Relations Contact: Matthew Wolfson, investor-relations@opera.com[32](index=32&type=chunk) - Media inquiries can be directed to press-team@opera.com[32](index=32&type=chunk)

Opera Limited (NASDAQ:OPRA) Q3 2022 Results Earnings Conference Call October 27, 2022 8:00 AM ET Company Participants Matthew Wolfson - Head of Investor Relations Lin Song - Co-Chief Executive Officer Frode Jacobsen - Chief Financial Officer Conference Call Participants Lance Vitanza - Cowen and Company Alicia Yap - Citigroup Mark Argento - Lake Street Capital Operator Welcome to the Opera Limited Third Quarter 2022 Earnings Call. At this time, all participants are in a listenonly mode. After the speakers' ...