Core Viewpoint - Opera's shares increased following a significant revenue surge and positive guidance, despite a year-to-date decline in stock price [1] Group 1: Company Overview - Opera operates a range of web and mobile browsers aimed at optimizing speed and battery life, with a focus on emerging markets and higher-valued users from developed markets [2] - The fastest-growing browser is Opera GX, which is tailored for gaming performance [2] Group 2: Revenue and Growth - In Q1, Opera's revenue surged 40% to $142.7 million, exceeding guidance of $130 million to $133 million [4] - Advertising revenue increased by 63% to $95.6 million, while search revenue rose 8% to $46.6 million [4] - E-commerce led the advertising growth, with revenue from this vertical more than doubling [5] Group 3: User Metrics and Innovations - The annualized average revenue per user (ARPU) increased by 45% year over year to $1.94, although monthly active users (MAU) decreased by 4% from 304 million to 293 million [6] - Opera GX's user base grew by 14% in the quarter to 34 million MAUs [6] - The new Opera Air browser targeting Western users was downloaded 500,000 times in its first two months [7] - Opera introduced agentic AI features in its Browser Operator to assist users with tasks like travel bookings [8] Group 4: Profitability and Future Guidance - Adjusted EPS rose 35% to $0.27, and adjusted EBITDA climbed 29% to $32.3 million [9] - For Q2, the company forecasts revenue growth of around 24%, projecting between $134 million to $138 million [9] - Full-year revenue guidance was raised to a range of $567 million to $582 million, indicating a 20% annual growth at the midpoint [10] Group 5: Market Position and Valuation - Opera is optimistic about navigating the uncertain macro environment and sees potential opportunities from big tech antitrust cases [11] - The stock trades at a forward P/E ratio of 14.6 times with a projected 20% revenue growth, indicating it is not expensive [13] - The company holds $103.5 million in net cash and an investment in OPay valued at $258.3 million, which is a fast-growing fintech company in Africa [13][14]

Group 1 - Opera Ltd (NASDAQ: OPRA) reported a first-quarter earnings beat and raised its fiscal-year forecast for 2025, leading to a 4.4% increase in share price to $16.21 [1] - The stock has gained 13.1% over the past five trading sessions, although it remains below its 18-month high of $22.50 reached on February 18 [1] - Year-to-date, OPRA shares are down 14.6%, but they have increased by 21% year-over-year [1] Group 2 - All analysts covering OPRA maintain "buy" ratings, with only 2.2% of the stock's float sold short, despite a 35% increase in short interest recently [2] - The options market for OPRA has become active, with call options trading at three times the average intraday volume and put options trading at eight times the average [3] - The July 17.50 call option is seeing significant selling activity, along with the popular May 17.50 call option [3]