Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 30%, exceeding the guidance of 22% to 26% and significantly higher than the 17% growth in the same quarter last year [5][17] - Adjusted EBITDA reached $32,000,000, surpassing the high end of previously issued guidance [7] - Operating cash flow was $33,000,000, representing 103% of adjusted EBITDA [19] - Free cash flow from operations was $29,000,000, or 91% of adjusted EBITDA [20] - Adjusted diluted EPS was $0.26 for the quarter [20] Business Line Data and Key Metrics Changes - Advertising revenue grew 44% year-over-year to $93,000,000, with e-commerce being the fastest-growing vertical, increasing over 100% year-over-year [6] - Search revenue returned to double-digit growth, up 11% year-over-year to $50,000,000 [6] - The user base for Opera GX reached 33,000,000 MAUs, an 11% increase year-over-year [12] Market Data and Key Metrics Changes - The company noted strong growth in the Western market, particularly in Europe, which contributed to user acquisition [35] - The e-commerce vertical is expected to continue growing, although comparisons will become more challenging in the second half of the year [71] Company Strategy and Development Direction - The company is focusing on AI integration within its browser, positioning itself as a key player in the emerging AI landscape [9][10] - Opera Neon, an AI browser, is set to be released, combining major AI use cases into a single user interface [10][11] - The company is also expanding its presence in the gaming sector with Opera GX and plans to soft launch in South Korea and Japan [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of advertising revenue despite macroeconomic volatility [18] - The company anticipates continued growth in search revenue and is optimistic about the broader search landscape evolving with AI [57] - Management acknowledged tariff-related headwinds but noted that global growth has offset these challenges [60][61] Other Important Information - The company has distributed $2.8 in dividends per share since January 2023 and has repurchased 30% of its outstanding stock in the previous three years [21] - MiniPay, a stablecoin wallet, has reached 9,000,000 activated wallets and exceeded 250 million transactions, indicating strong growth potential in the fintech space [15][50] Q&A Session Summary Question: What drove the sequential growth in the Western market user base? - Management indicated that seasonality and marketing strategies played a role, with expectations for more growth in Q3 and Q4 [33] Question: How should we think about the pricing and cost structure of Opera Neon? - Management stated that product marketing is the primary focus, with a combination of advertisement sponsorship and subscription models anticipated for monetization [44] Question: How does MiniPay monetize engagement? - MiniPay is generating revenue through ecosystem partnerships and integrations, leveraging its nature as a fintech product [50] Question: What are the expectations for search revenue growth? - Management expects search revenue to continue performing well, driven by changes in the broader search landscape and user engagement [57] Question: What is the outlook on tariff-related headwinds? - Management noted that while tariffs have created challenges, there is potential for recovery and growth as conditions stabilize [61] Question: How significant is the opportunity in launching Opera GX in South Korea and Japan? - Management sees strong potential in these markets, particularly due to partnerships with popular games like League of Legends [63]

Financial Performance & Guidance - Opera achieved 17 consecutive quarters of Rule of 40 performance, driven by organic growth[11] - The company's 2025 revenue guidance is $591 million, representing a 23% growth[14] - The 2025 adjusted EBITDA guidance is $138 million, with a 23% margin[20, 21] - Q3 2025 revenue guidance is $148 million, representing 20% growth[89] - Since 2020, Opera has returned approximately $477 million to shareholders[16, 17, 98] User Base & Monetization - Opera has approximately 289 million average monthly active users (MAUs) in Q2 2025[12, 13] - Western markets account for 58 million MAUs[13] - ARPU has grown 3.1x over the last 4 years[18, 19] - Advertising accounts for 65% of revenue in Q2 2025, with 44% year-over-year growth[66, 69] - Search accounts for 35% of revenue in Q2 2025, with 11% year-over-year growth[66, 73] Opera GX - Opera GX has 33 million users[45] - Opera GX users represent 8% penetration of web users[52]

Core Insights - Opera Limited reported a 30% year-over-year revenue growth to $143.0 million, exceeding guidance [1][8] - Adjusted EBITDA reached $32.1 million, representing a 22% margin, also surpassing expectations [1][13] - The company raised its full-year revenue guidance to $585 – 597 million with a 23% adjusted EBITDA margin at the midpoints [1][21] Financial Performance - Revenue for the second quarter of 2025 was $143.0 million, a 30% increase from $109.7 million in the same quarter of 2024 [4][8] - Net income decreased by 19% to $15.7 million, with a net income margin of 11% compared to 18% in Q2 2024 [4][13] - Adjusted net income increased by 14% to $23.7 million, with an adjusted net income margin of 17% [4][13] - Adjusted EBITDA rose by 21% to $32.1 million, with a margin of 22% [4][13] Revenue Breakdown - Advertising revenue grew by 44% year-over-year to $92.9 million, accounting for 65% of total revenue [12] - Search revenue increased by 11% year-over-year to $49.6 million, representing 35% of total revenue [12] - The annualized average revenue per user (ARPU) was $1.97, a 35% increase compared to Q2 2024 [12] Operating Expenses - Operating expenses increased by 40% to $124.9 million [9] - Share-based compensation expenses surged by 354% to $8.8 million due to the granting of approximately 1.9 million share-equivalent RSUs [12] - Personnel expenses, excluding share-based compensation, rose by 5% to $18.7 million [12] Cash Flow and Dividends - Net cash flow from operating activities was $33.1 million, representing 103% of adjusted EBITDA [12][14] - Free cash flow from operations was $29.1 million, or 91% of adjusted EBITDA [14] - A dividend of $0.40 per share was announced and paid in July [12] Business Outlook - The company anticipates continued growth in AI-powered intent-based advertising, particularly in e-commerce [2] - Opera expects to maintain momentum in search revenue, contributing to the raised guidance for the year [17]

Financial Performance - Opera Limited is expected to report second-quarter earnings of 26 cents per share, a decrease from 44 cents per share in the same period last year [1] - The company projects quarterly revenue of $137.44 million, up from $109.73 million a year earlier [1][2] Analyst Ratings - Goldman Sachs analyst Eric Sheridan maintained a Buy rating but reduced the price target from $26 to $22.5 [8] - Piper Sandler analyst James Callahan initiated coverage with an Overweight rating and a price target of $25 [8] - TD Cowen analyst Lance Vitanza maintained a Buy rating and increased the price target from $25 to $28 [8] - B. Riley Securities analyst Lee Krowl reiterated a Buy rating and raised the price target from $24 to $25 [8] Stock Performance - Opera shares increased by 6% to close at $16.32 [3]

Core Insights - The Zacks Internet - Content industry is facing challenges due to adverse macroeconomic conditions affecting ad spending, which is the primary revenue source for industry participants [1] - Despite these challenges, there is solid demand for digital offerings, particularly in video content and cloud-based applications, aided by the proliferation of AI and Generative AI [1] - Companies like Yelp and Opera Limited are expanding their presence in social media, display, connected TV, and search, contributing to top-line growth [1] Industry Description - The Zacks Internet - Content industry includes providers of video encoding platforms, personal services, Internet content, staffing, publishing, and online travel companies [2] - Advertising remains a major revenue source, prompting companies to enhance their digital presence and expand across various platforms [2] - The industry is experiencing rapid changes in consumer behavior and ongoing digitalization, with significant players located in the U.S., Israel, the U.K., Germany, Russia, and China [2] Trends Shaping the Industry - There is a growing demand for digital offerings, driven by technological advancements and the introduction of new products and services [3] - The proliferation of smart devices and increased automation in application development are positive indicators for industry growth [3] Industry Prospects - Marketing efforts are being intensified to boost website traffic, with advertising and subscriptions as key revenue sources [4] - The industry is sensitive to consumer spending trends, particularly during holiday seasons, but faces headwinds from macroeconomic challenges, persistent inflation, and higher interest rates [4] Regulatory Environment - Increased regulatory pressure is impacting industry participants, especially in China and the EU, with regulations affecting direct advertising and data protection [5] - The implementation of the Digital Markets Act in the EU aims to curb the market power of large online platforms, adding to the challenges faced by Internet content providers [5] Industry Ranking and Performance - The Zacks Internet - Content industry ranks 194, placing it in the bottom 21% of over 250 Zacks industries, indicating dull near-term prospects [6][7] - The industry's earnings outlook is negative, with a 2.8% decline in the Zacks Consensus Estimate for 2025 earnings since November 30, 2024 [8] Market Performance - The industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, returning 6.1% over the past year versus 18.1% and 25.3% respectively [10] Current Valuation - The industry is currently trading at a trailing 12-month price-to-sales ratio of 6.49X, higher than the S&P 500's 5.62X but lower than the sector's 8.31X [13] Notable Companies - **Yelp**: Benefiting from higher ad spending and improved customer retention, but shares have declined 20.9% year-to-date [16][17] - **Opera Limited**: Experiencing an 8% year-over-year increase in search revenues, with a stable user base of 293 million, but shares have dropped 17.1% year-to-date [19][20]

Core Viewpoint - Opera Limited is set to release its second quarter 2025 financial results on August 19, 2025, before the market opens, indicating a focus on transparency and investor communication [1]. Financial Results Announcement - The financial results will be available on Opera's investor relations website, emphasizing the company's commitment to providing accessible information to stakeholders [1]. - A conference call to discuss the financial results will take place on the same day at 8:00 a.m. ET, allowing for direct engagement with management [2]. Company Overview - Opera is a user-centric software company that aims to enhance internet browsing experiences across various devices, with a significant user base utilizing its web browsers for their unique and secure features [2]. - Founded in 1995 and headquartered in Oslo, Norway, Opera is publicly traded on the Nasdaq stock exchange under the ticker symbol "OPRA," highlighting its established presence in the market [2].

Core Insights - Opera is launching Opera Neon, the first AI agentic browser, aimed at transforming web browsing from a passive experience to a proactive one that completes tasks for users [1][3][6] - The need for this innovation stems from the inefficiency of current browsing methods, where knowledge workers switch between apps over 1,000 times a day, and consumers spend significant time on multi-step tasks [3][4] - Opera believes that agentic browsing could automate up to 30% of work hours, potentially creating billions in value [3][4] Company Overview - Opera is a user-centric software company founded in 1995 and headquartered in Oslo, Norway, listed on the Nasdaq under the ticker symbol OPRA [8] - The company has been integrating AI into its flagship browser since 2023, with features like the Aria browser AI already in use by millions [6][8] Product Features - Opera Neon will autonomously navigate and execute tasks across various platforms, such as Jira, Slack, and Google Docs, effectively reducing manual work [5][6] - The browser is designed to understand user goals and execute actions reliably, marking a significant evolution in human-computer interaction [4][7]

Group 1 - Li Xiang, CEO of Li Auto, reflects on being ousted by a trusted partner during a financial crisis at Autohome in 2008, ultimately choosing reconciliation over resentment [4][5][6] - Li Xiang emphasizes the importance of understanding others' perspectives to avoid self-harm and achieve personal peace [5][6] Group 2 - Former Vice President of Product at Haomo.ai, Cai Na, has joined Momenta, bringing valuable experience from her previous roles [9][10] - Momenta aims to achieve profitability by 2026 and is involved in various autonomous driving projects [10] Group 3 - Li Auto's new electric SUV, the Li i8, has undergone rigorous safety testing, showcasing its structural integrity during crash tests [11] - Controversy arose when the truck used in the testing was identified as a Chenglong truck, leading to safety concerns and legal responses from the truck manufacturer [11] Group 4 - Alibaba has adjusted its stock vesting schedule for new employees to 15%, 25%, 30%, and 30% over four years, effective from April 1, 2024 [14][15] - This change aims to provide more immediate stock benefits to employees compared to the previous vesting schedule [14][15] Group 5 - ByteDance's AI programming tool, Trae, has been accused of unauthorized data collection, prompting concerns over user privacy [16][17] - ByteDance responded by stating that data collection practices are in line with industry standards and do not involve personal identification [17] Group 6 - Xiaomi's new end-to-end driving assistance system for its SU7 series has been launched, with a reminder that it is not equivalent to full autonomous driving [13] - The system has seen significant improvements in highway scenarios, but users are urged to remain attentive while driving [13] Group 7 - Stellantis reported a net loss of €2.3 billion in the first half of the year, with a 13% decline in net revenue compared to the previous year [35][36] - The company faces challenges in various markets, including China and India, and plans to launch several new models by the end of the year [36][37] Group 8 - Samsung is reconsidering a $7 billion investment in advanced packaging production in Texas, driven by demand for advanced process chips [44] - This move aligns with the growing need for localized chip production in the U.S. market, particularly for companies like Tesla [44]

Core Viewpoint - Opera has filed a lawsuit against Microsoft with Brazil's antitrust agency CADE, accusing Microsoft of unfair advantages with its Edge browser [1] Group 1: Legal Actions - Opera previously complained to the European Commission in December 2007, alleging that Microsoft bundled Internet Explorer with the Windows operating system, resulting in a fine of €561 million against Microsoft [1] - The latest statement from Opera's General Counsel, Aaron McParlan, indicates that Microsoft is obstructing competition in the browser market on Windows [1] Group 2: Market Competition - Opera claims that Microsoft prevents other browsers from being pre-installed on Windows devices and restricts users' ability to download and use alternative browsers [1]

Core Insights - Opera Limited (NASDAQ: OPRA) has experienced significant stock price growth but lacked long-term investment rationale until recent analyses of growth opportunities in technology sectors emerged [1]. Group 1: Company Overview - Opera Limited has been relatively unnoticed in the market despite its explosive stock price growth [1]. - The company is now being analyzed for its growth potential in relation to current and future technology trends [1]. Group 2: Analyst Perspective - The analyst has a beneficial long position in Opera Limited shares, indicating confidence in the company's future performance [2]. - The article reflects the analyst's personal opinions and is not influenced by external compensation [2].