Core Viewpoint - Opera Limited has reported strong Q2'24 earnings, raising guidance for FY'24, indicating positive growth in advertising and search revenues. The stock has seen a significant increase following the earnings report, reflecting market confidence in the company's performance and future prospects [3][17]. Financial Performance - Revenue increased 17% year-over-year to $109.7 million [3] - Advertising revenue reached $65 million, up 20% year-over-year [3] - Search revenue was $45 million, up 15% year-over-year [3] - Net income rose to $19.303 million, a 43% increase year-over-year [3] - Earnings per share (EPADS) was $0.22, meeting analyst expectations [3] - Annualized average revenue per user (ARPU) increased 25% year-over-year to $1.46 [3] - Average users decreased slightly to 298 million from 304 million in Q1'24 [3] User Growth and Product Adoption - Opera GX, the browser targeted at gamers, added 500,000 users in the quarter, reaching 30 million monthly active users (MAUs) and achieving a year-over-year user growth of 27% [3][4] - Despite a seasonal decline in overall MAU figures, Opera GX's growth indicates strong demand for the product [3][4] Future Outlook - The company expects ARPU to rise 10% quarter-over-quarter to $1.61 for Q3'24 [6] - The ongoing partnership with Google for search services has been extended through 2025, indicating Opera's importance as a search partner [7] - OpenAI's new search engine, SearchGiPT, may present future opportunities for Opera in search distribution [8] Valuation - Opera is currently trading at 17x forward earnings, below the sector median of 23.86x, suggesting it is undervalued [10] - A conservative valuation model suggests a fair value of $21.41 using a 20x FY 2025 earnings multiple, with a potential upside to $25.46 based on sector median [10][13] Dividend and Ownership Concerns - The current dividend payout ratio is 67% of net income, raising concerns about sustainability [14] - Kunlun's ownership of approximately 72% of the company continues to be a concern for some investors due to its connection to China [16] Conclusion - Opera shares are considered significantly undervalued, with strong growth prospects and a potential lucrative search deal on the horizon. The current market conditions may present an ideal opportunity for investors [17]

Opera Limited Sponsored ADR (OPRA) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earning ...

Opera Limited Sponsored ADR (OPRA) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

The web browser developer's stock soared this week, and is now up 22% year to date. On the heels of big post-earnings gains Thursday, Opera (OPRA 11.51%) soared again Friday. The web browser developer's share price ended the session up 11.5%, according to data from S&P Global Market Intelligence. Thanks to comments from Federal Reserve Chairman Jerome Powell suggesting that interest rate cuts are on the way, Friday was a good day for the broader market. The S&P 500 index gained 1.1% while the Nasdaq Composi ...

An earnings beat and optimism over a more equal playing field for browsers spurred a rally. Shares of web browser company Opera (OPRA 9.51%) were rallying this week, up 23.3% through 11:25 a.m. ET Friday, according to data from S&P Global Market Intelligence. Opera delivered great news for shareholders this week, reporting strong second-quarter earnings that came in ahead of analyst expectations. In addition, commentary on the positive potential impact from recent regulations in Europe and the U.S. may have ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $110 million, representing a 17% year-over-year growth [4] - Adjusted EBITDA was $27 million, translating to a margin of 24%, exceeding guidance of $22 million to $25 million [4][18] - Average Revenue Per User (ARPU) grew by 25% year-over-year, now at an annualized $1.46 across products and geographies [4] Business Line Data and Key Metrics Changes - Advertising revenue reached $65 million, growing 20% year-over-year, driven by high-ARPU user growth and expanding monetization opportunities [4][5] - Search revenue was $45 million, up 15% year-over-year, indicating strong retention of engaged users [5] - Opera GX, the gaming browser, added 500,000 users in the quarter, achieving 30 million Monthly Active Users (MAUs) with a year-over-year growth of 27% [13] Market Data and Key Metrics Changes - Significant user adoption growth in the EU, particularly for Opera on Android and iOS, attributed to the Digital Markets Act (DMA) [7] - The company noted a flat sequential user base in Western markets, indicating potential seasonality or marketing spend adjustments [31] Company Strategy and Development Direction - The company is focusing on e-commerce opportunities as a key growth driver, with a strong emphasis on high-value user acquisition [18][22] - Continued investment in AI capabilities is expected to enhance user experience and monetization potential [14][15] - The launch of Opera One and Opera GX is aimed at increasing market share and user engagement, particularly in the gaming sector [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for the second half of 2024, raising full-year revenue guidance to $461 million to $467 million [22] - The company is cautiously optimistic about the holiday season, anticipating increased e-commerce activity [22] - Management highlighted the importance of regulatory changes, such as the DMA, in creating opportunities for independent players like Opera [28][29] Other Important Information - The company announced a semi-annual dividend of $0.40 per ADS, totaling $35.4 million [21] - Operating cash flow was $17.4 million, representing 65% of adjusted EBITDA, with free cash flow from operations at $13.5 million [20] Q&A Session Summary Question: Thoughts on the DMA and its implementation - Management believes the DMA has been beneficial for independent players and is working closely with the EU to ensure broader application of gatekeeper definitions [26][28] Question: Drivers of e-commerce trends - The company has built a sizable user base in high-value markets, allowing for new partnerships that drive meaningful traffic with high purchase intent [30] Question: User base trends in Western markets - Management noted a flat trend in Western markets due to a focus on high-value users and increased marketing costs [31] Question: Impact of regulatory shifts on product prioritization - Management sees regulatory shifts as beneficial, allowing for more investment in platforms like iOS and Windows [33][34] Question: Feedback on the Aria assistant and AI adoption - The application of AI is becoming more integrated into daily user experiences, positively impacting monetization [37][38] Question: Cost structure impact from AI initiatives - The company has been disciplined in managing operational costs related to AI, focusing on cost-effective solutions [41][44] Question: Returns from the AI cluster investment in Iceland - The AI cluster has been operational since Q2 and is being used for fine-tuning tasks, with positive revenue generation expected [46][47] Question: Expected impact of Google antitrust ruling on search revenue - Management believes that the focus should be on broader monetization opportunities beyond search, with a positive outlook for e-commerce revenue [48][49] Question: Growth potential of Opera GX - The user base of Opera GX is evenly split between Western and non-Western markets, with significant monetization potential in both [52] Question: Future opportunities in Latin America - Latin America is identified as a fast-growing market, with high hopes for user and advertising monetization growth [59]

Opera (NASDAQ:OPRA) just reported results for the second quarter of 2024. Opera reported earnings per share of 22 cents. This met the analyst estimate for EPS of 22 cents. The company reported revenue of $109.73 million. This was 1.10% better than the analyst estimate for revenue of $108.54 million. InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, ...

100 t would III " III W H 011 WI illi lle istanbulimage Investment Thesis Opera Limited (NASDAQ:OPRA), which provides the contentious tier-3 browser, reported solid results that beat on the top line and the bottom line and raised its fullyear guidance. What's more, the stock looks incredibly cheap at 10x this year's EBITDA, with no debt, all the while paying out a 6.1% dividend yield. But is this stock a value trap? I don't believe so. As such, I remain bullish on OPRA as I've done for some time. Rapid Reca ...

Revenue grew 17% year-over-year to $109.7 million, and exceeded the guidance range Adjusted EBITDA of $26.6 million, a 24% margin, also exceeded the guidance range Product lineup further strengthened with Opera One launched on iOS along with rapid innovation across platforms Company increases both revenue and adjusted EBITDA guidance for the year, now at 17% year-over-year growth at a 24% adjusted EBITDA margin at the midpoints OSLO, Norway, Aug. 22, 2024 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of ...