Financial Performance & Growth - Opera achieved 16 quarters of Rule of 40+ performance, calculated as revenue growth plus Adjusted EBITDA margin[14] - The company's 2025 revenue guidance is $575 million[18] - The 2025 Adjusted EBITDA guidance is $138 million[18] - The company's Q2 2025 revenue guidance is $136 million[104] User Base & Engagement - Opera has approximately 293 million average MAUs in Q1 2025[14] - Western markets experienced a 39% user growth over the last 4 years[14] - ARPU has grown 3.6x over the last 4 years[17] Revenue Model - Advertising accounts for 67% of Q1 2025 revenue[81] - Search contributes 33% of Q1 2025 revenue[82] User Acquisition - 79% of new users come from organic traffic[80] Gamer Focus - Opera GX has 34 million users[46] - Opera GX users represent 8% penetration of the estimated total addressable market (TAM) of 400 million+ gamers[60]

Core Insights - Opera Limited reported a revenue of $142.72 million for the quarter ended March 2025, marking a 40.1% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.27, up from $0.17 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $131.53 million by 8.50%, while the EPS also surpassed the consensus estimate of $0.26 by 3.85% [1] Revenue Breakdown - Search revenue was $46.59 million, below the two-analyst average estimate of $50.44 million [4] - Advertising revenue reached $95.61 million, significantly higher than the average estimate of $80.19 million from two analysts [4] - Revenue from technology licensing and other sources was $0.52 million, exceeding the estimated $0.10 million by two analysts [4] Stock Performance - Over the past month, shares of Opera Limited have returned -4%, slightly better than the Zacks S&P 500 composite's -4.3% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenue growth increased from 29% in Q4 2024 to 40% in Q1 2025, translating to revenue of $143 million for Q1 2025, exceeding previous guidance [5][6] - Adjusted EBITDA reached $32 million with a margin of 23%, indicating profitability alongside revenue growth [7][18] - Annualized ARPU grew by 44% year over year, reflecting a focus on high-value users [8] Business Line Data and Key Metrics Changes - Advertising revenue grew by 63% in Q1 2025, now representing two-thirds of total revenue, with e-commerce being the fastest-growing vertical at over 100% annualized growth [6][8] - Search revenue was $7 million, growing 8% year over year, indicating a stable growth despite a shift towards e-commerce [6][30] Market Data and Key Metrics Changes - The user base remained stable at 293 million MAUs, with a focus on high ARPU potential users [8][47] - The U.S. market is seen as having significant growth potential in e-commerce, with the company having less exposure compared to competitors [22][64] Company Strategy and Development Direction - The company aims to leverage AI for optimizing user intent and enhancing advertising effectiveness, which is expected to drive future growth [7][50] - Opera is focusing on performance-based advertising, which is more resilient in volatile market conditions, allowing for continued growth [22][67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic volatility but expressed confidence in the company's ability to navigate these challenges and capitalize on growth opportunities [21][24] - The company raised its full-year revenue guidance to DKK 567 million to DKK 582 million, reflecting optimism about continued growth [24][25] Other Important Information - The company celebrated its anniversary and highlighted its history of navigating market disruptions and competition [13][14] - The company has distributed $2.4 in dividends per share since January 2023, indicating a commitment to returning value to shareholders [21] Q&A Session Summary Question: Search growth slowdown and its impact - Management noted that the shift towards intent-based advertising is influencing search growth, which is still expected to grow strongly in the future [30][34] Question: Impact of currency on growth - The strong U.S. dollar has been a headwind, with growth estimated to be 5-6 percentage points higher on a constant currency basis [38] Question: E-commerce growth and seasonality - E-commerce growth has been strong enough to offset typical seasonality, but management expects some seasonality to return as the business matures [41][44] Question: User base concerns - The focus is on high ARPU users rather than total MAUs, with management confident in revenue growth despite a slight decline in user numbers [47] Question: U.S. antitrust actions and their impact - Management sees potential benefits from increased competition and focus on user intent, positioning Opera favorably in the evolving ecosystem [48][50] Question: E-commerce advertiser diversification - The e-commerce opportunity is growing rapidly, with a focus on performance-based partnerships, particularly in the U.S. market [56][64]

Core Insights - Opera Limited reported a 40% year-over-year revenue growth, reaching $142.7 million for the first quarter of 2025, significantly exceeding guidance [1][6][17] - The company achieved an adjusted EBITDA of $32.3 million, representing a 23% margin, also surpassing expectations [1][13] - Opera raised its full-year guidance for both revenue and adjusted EBITDA based on strong Q1 performance [1][18] Financial Performance - Revenue increased from $101.9 million in Q1 2024 to $142.7 million in Q1 2025, a 40% increase [4][6] - Net income rose to $18.3 million, a 23% increase from $14.8 million in the same quarter last year [4][11] - Adjusted net income grew by 37% to $24.2 million, maintaining a 17% margin [4][12] - Adjusted EBITDA increased by 29% to $32.3 million, with a margin of 23% [4][13] - Diluted earnings per share increased to $0.20, while adjusted diluted earnings per share rose to $0.27 [4][13] Revenue Breakdown - Advertising revenue surged by 63% to $95.6 million, accounting for 67% of total revenue [7][20] - Search revenue grew by 8% to $46.6 million, representing 33% of total revenue [7][20] - Technology licensing and other revenue was $0.5 million [20] User Metrics - Opera had 293 million average monthly active users (MAUs) in the quarter, with an annualized average revenue per user (ARPU) of $1.94, a 45% increase year-over-year [7][20] - The Opera GX gaming browser recorded 34 million average MAUs, up 14% year-over-year [7] Operating Expenses - Operating expenses increased by 47% to $121.6 million [8] - Share-based compensation expenses rose by 130% year-over-year to $6.0 million [20] - Marketing and distribution expenses increased by 16% to $34.2 million [20] Business Outlook - For Q2 2025, the company guides revenue between $134 million and $138 million, reflecting a 24% year-over-year growth [15] - Full-year 2025 revenue guidance is set between $567 million and $582 million, with an expected 20% growth [15]

Core Insights - Opera Limited (OPRA) is expected to report first-quarter 2025 earnings on April 28, with anticipated revenues between $130 million and $133 million, reflecting a 29% year-over-year growth [1] - The consensus estimate for earnings is set at 26 cents per share, indicating a significant year-over-year increase of 52.94% [2] Revenue Growth Factors - The advertising business is projected to have continued its strong performance, growing 38% year-over-year in Q4 2024, driven by e-commerce segments and performance-based advertising models [3] - Solid growth in Western markets, particularly in Europe and the U.S., is attributed to increased iOS downloads and favorable regulatory shifts [4] User Engagement and Technology - Investments in AI technologies and the integration of AI features into new browser versions like Opera R2 and Opera One have enhanced user experience and engagement [5] - Opera GX, the gaming browser, has seen a 22% year-over-year increase in its user base, reaching 33.9 million monthly active users, contributing to revenue growth [6] Operational Considerations - Rising operational expenses, which increased from 27.1% in Q4 2024, may impact overall profitability in the upcoming quarter [7] Earnings Expectations - Opera Limited currently has an Earnings ESP of 0.00% and a Zacks Rank 1 (Strong Buy), indicating mixed signals regarding the likelihood of an earnings beat [8]

Core Insights - Opera is integrating its AI, Aria, into Opera Mini, enhancing the browser's functionality for over 100 million users globally, particularly in Africa [1][10] - The integration of Aria allows users to access real-time information, generate text and images, and summarize content, all while maintaining data efficiency [3][4] Group 1: AI Integration - Aria is designed to enhance user interaction through features like information retrieval, text and code generation, and image creation, powered by Opera's Composer AI engine utilizing OpenAI and Google technologies [3] - The AI integration is available at no additional cost and does not increase the app's size, making it accessible for users [1][4] Group 2: Market Position and User Base - Opera Mini is the leading browser in Africa with over 1 billion downloads, attributed to its lightweight design and data-saving technologies [5][8] - The browser has a strong user base, with a 4.6-star rating on Google Play and over 100 million active users [8][10] Group 3: Addressing Data Costs - High mobile data costs in Africa, particularly highlighted by a survey indicating that 59% of Nigerian respondents find data too expensive, underscore the importance of Opera Mini's affordable access to AI features [6][10] - Opera Mini's data compression technology and partnerships for free data offers help bridge the digital divide in regions with high data costs [5][6]

OSLO, Norway, April 10, 2025 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's major browser developers and a leading internet consumer brand, today announced that its annual report on Form 20-F for the fiscal year ended December 31, 2024, has been filed with the U.S. Securities and Exchange Commission (the "SEC").The annual report can be accessed on Opera's investor relations website at investor.opera.com or the SEC's website at www.sec.gov. Opera will provide a hard copy of its annual repor ...

AI Tools and Technologies - The company launched an initial set of generative AI tools in its PC flagship browser in March 2023, expanding to other mobile and PC browsers[36]. - The company launched various generative AI tools and services throughout 2023 and 2024, including the Aria browser AI[50]. - The company opened a green energy-powered AI data cluster in Iceland in 2024, featuring a NVIDIA DGX SuperPOD, indicating significant investment in technology infrastructure[87]. - The company has key partnerships with Google and OpenAI to enhance its AI capabilities, which are crucial for its growth strategy[110]. - Opera's browser AI, Aria, connects to multiple LLM models and allows users to select from approximately 2,000 local LLM variants[196]. Financial Performance and Revenue - Revenue generated from customers and monetization partners in Russia accounted for 5.2%, or $20.7 million, of total revenue in 2023[61]. - Approximately 5.7% of the company's revenue in 2023 and 3.4% in 2024 was generated from monetizing the user base in Russia, indicating potential future revenue growth challenges due to the ongoing crisis[62]. - Revenue from customers in Ireland accounted for 44.1%, 41.1%, and 38.5% in 2022, 2023, and 2024, respectively[107]. - Revenue generated from users' search activity accounted for 42.3%, 40.9%, and 38.7% in 2022, 2023, and 2024, respectively[108]. - Annualized ARPU increased by 37% from Q4 2023 to Q4 2024, driven by strong growth in advertising and search revenues[183]. User Engagement and Growth - Opera reported an average of 296 million monthly active users (MAUs) in Q4 2024, with 268 million from its browser products[173]. - The Opera News platform achieved 368 million average MAUs in Q4 2024, including 27 million from standalone news apps[177]. - The Opera GX gaming browser reached 34 million MAUs in Q4 2024, highlighting its growth in the gaming segment[176]. - The company experienced a 9.9% increase in its total user base in Western markets from Q4 2023 to Q4 2024, while emerging markets saw an 8.5% decrease[183]. - Opera Mini averaged 113 million users worldwide during Q4 2024, with over 79 million MAU in its Android version alone[194]. Legal and Regulatory Risks - The company is exposed to risks related to AI technologies, including potential reputational harm and legal liabilities[40]. - The company has been subject to intellectual property infringement claims, which could be costly and time-consuming to defend[31]. - The company is subject to various legal and regulatory risks when expanding into diverse and fragmented markets[44]. - The company faces risks related to litigation, including intellectual property claims, which have increased as its products and services have grown in complexity[65]. - The company is subject to various laws and regulations regarding user privacy and data protection, particularly in the European Economic Area, which could impact business operations[97]. Competition and Market Position - The company faces intense competition from major players like Google, Apple, and Microsoft, which may affect its market position[34]. - The company’s ability to compete effectively depends on various factors, including the usefulness and reliability of its products compared to competitors[38]. - The company relies on third-party distribution channels, including Google Play and Apple's App Store, which may change unilaterally and affect product availability[117]. Investment and Capital Needs - The company may require additional capital for future growth and investments, which may not be available on favorable terms[55]. - The company has invested in OPay, a fintech company focused on financial inclusion in emerging markets, particularly Nigeria and Egypt[51]. - The carrying amount of the investment in OPay was $258.3 million as of December 31, 2024, with unrealized fair value gains of $89.8 million in 2023 and $5.0 million in 2024[86]. Operational Challenges - The company is affected by macroeconomic and geopolitical conditions, including the unpredictable impacts of the war in Ukraine[26]. - The ongoing war in Ukraine has resulted in significant volatility in financial markets and has affected the company's operations and future financial performance[60]. - The company may face service interruptions due to reliance on third-party data centers and cloud services, which could impact user experience and revenue[119]. - The company may need to invest substantially to improve performance and prevent service disruptions[105]. Cybersecurity and Data Protection - Cybersecurity threats, including data breaches and hacking attempts, pose significant risks to the company's operations and user trust[98]. - The company has not suffered material costs from cybersecurity incidents to date, but future breaches could adversely impact user willingness to use its services[100]. - The company is exposed to potential claims regarding open source software, which could lead to litigation and additional costs[92]. Corporate Governance and Shareholder Rights - The company qualifies as a "controlled company" under Nasdaq rules, which may exempt it from certain corporate governance requirements, potentially affecting public shareholders[143]. - Shareholders of the company have limited rights to inspect corporate records under Cayman Islands law, which may hinder their ability to obtain necessary information[152]. - The company's memorandum and articles of association contain anti-takeover provisions that could limit shareholders' opportunities to sell shares at a premium[150]. Miscellaneous - The company launched MiniPay, a non-custodial stablecoin wallet built on the Celo blockchain, in September 2023[36]. - The company adopted a recurring semi-annual cash dividend program, with the first dividend of $0.40 per ADS paid on June 30, 2023, and subsequent dividends declared for January 3, 2024, July 2, 2024, and January 6, 2025[136]. - The company has extended its search distribution agreement with Google until December 31, 2026, and renewed its agreement with Yandex effective January 1, 2025[210].

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Opera Limited’s (OPRA) shares have lost 15.1% year to date (YTD), underperforming the broader Zacks Computer and Technology sector’s 11.7% decline and the Zacks Internet - Content industry’s drop of 8.4%.OPRA has underperformed its industry peers, RELX (RELX) , Yelp (YELP) and Perion Network (PERI) .Over the same time frame, RELX shares have risen 11.6%, while Yelp and Perion Network shares have lost 1.4% and 2.7%, respectively.This underperformance raises the question of whether investors should cut their ...