This Technology Stock Has Shot Up 47% in Just 3 Months, and It Remains an Incredible Buy Even Now

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