Summary of Opera Limited's Q3 Conference Call Company Overview - **Company**: Opera Limited - **Industry**: Internet and Technology - **Core Business**: Transitioned from a browser company to a diversified consumer internet platform, including search, advertising, and fintech services - **Monthly Active Users**: Approximately 300 million, representing about 6% of the global internet user base [3][6] Financial Highlights - **Revenue Guidance for 2025**: Expected to be around $600 million with an Adjusted EBITDA of $140 million [4] - **Dividend Policy**: Opera pays a recurring dividend every six months, yielding approximately 5%-6% [4] - **Share Buybacks**: Totaling about $500 million since 2020 [4] - **Revenue Composition**: 37% from query-based revenue and two-thirds from advertising [16] Product Innovation and Development - **Browser Variants**: Multiple versions of the Opera browser tailored for different user segments, including Opera One for general users, GX for gamers, and Opera Neon for a unique browsing experience [5][11] - **AI Integration**: Early adopter of integrating large language models (LLMs) into its products, enhancing user experience through features like Opera AI, which assists users in tasks across websites [7][9] - **Gaming Browser**: The GX browser is specifically designed for gamers, featuring optimizations for performance and user experience [11][12] Market Position and Growth Potential - **User Base Growth**: Significant potential for growth in the gaming segment, with a 10x potential in Western markets [12] - **Emerging Markets**: Launched MiniPay, a non-custodial wallet for stablecoins, which has rapidly grown to over 12 million wallets and 360 million transactions [13] - **Brand Awareness**: 44% awareness in the U.S., 60% in the U.K., and 70% in Germany, indicating room for growth in brand recognition [15] Revenue Streams and Advertising Model - **Advertising Model**: Primarily performance-based, with revenue generated through partnerships and user engagement [31][32] - **Long-standing Partnerships**: Maintains a 20-year partnership with Google for search-related revenue [17] Challenges and Market Dynamics - **Concerns about Fraud**: Addressed concerns regarding fraudulent activities in the advertising space, emphasizing the importance of genuine user traffic [24][25] - **Impact of AI on Browsing**: Discussed potential risks of generative AI affecting traditional search and advertising models, but emphasized the unique value of the Opera browser in enhancing user experience [33][34] Financial Health and Strategy - **Profitability**: Stable profit margins with a guided EBITDA margin of 23% for the year [19] - **Cash Flow Management**: High conversion from EBITDA to cash flow, with no financial debt and a solid cash position [21][22] - **Investment vs. Profitability**: Balancing growth investments with profitability, receiving mixed feedback from stakeholders on the approach [20][21] Conclusion - Opera Limited is positioned as a significant player in the internet and technology sector, leveraging innovation and a diversified product portfolio to drive growth. The company maintains a strong financial profile with a focus on user engagement and market expansion, particularly in gaming and fintech services.

Core Insights - Opera has launched Opera Neon, an experimental AI-powered browser aimed at AI power users, now available to the public after a closed "Founders" phase [1][2][4] - The subscription for Opera Neon is priced at $19.90 per month, providing access to advanced AI models and features [3][8] Product Overview - Opera Neon is designed to utilize AI agents for performing tasks and coding web applications, distinguishing it from standard web browsers [2] - The browser integrates top-tier AI models, including Gemini 3 Pro and GPT 5.1, into a single workspace, allowing users to avoid multiple subscriptions [5][10] Community Engagement - Subscribers gain access to an exclusive Discord community for testing features, discussing product development, and influencing the browser's roadmap [7] Availability and Features - Opera Neon is available for download at $19.90 per month, while Opera's main browsers continue to offer free AI features [8] - Current features include tools for booking trips, building websites, generating videos, and conducting deep research with the ODRA agent [10]

Core Insights - Opera (OPRA) is launching new AI capabilities across its web browsers, including Opera One, Opera GX, and Neon, in response to increasing competition in the tech industry to enhance user browsing experiences [1] Group 1 - The new AI features aim to make browsing more agentic, indicating a shift towards more interactive and personalized user experiences [1]

Core Insights - Opera is enhancing its browser capabilities by integrating advanced AI features, providing over 80 million users with free access to the latest Opera browser AI through its Opera One, Opera GX, and Opera Neon browsers [1][2][3] AI Integration and Features - The new Opera AI functions as a side panel, allowing users to interact with it in relation to any webpage, enabling tasks such as research, content summaries, and comparisons across tabs [2] - The AI engine has been redesigned for improved speed, delivering responses 20% faster, and includes features for voice input/output and file analysis across various formats [2] - Privacy features are emphasized, giving users control over the context shared with Opera AI [2] Partnership with Google - The partnership with Google is crucial for Opera, allowing the integration of the latest Gemini models into its browser AI, enhancing user experience with native search and AI features [3][4] - This collaboration is seen as a step towards setting new standards for AI-powered user experiences in browsing [4] Market Performance and User Engagement - Opera reported a 17% annual increase in query revenue, indicating successful monetization of user-initiated actions beyond traditional search, reflecting the growing use of AI tools [3] - The browser is positioned as a key interface for AI, leveraging real-time context from users' browsing activities to provide more relevant assistance [5] Future Outlook - The shift towards AI-powered search is expected to drive deeper user engagement, aligning with Opera's long-term strategy to enhance user experience through innovative products [6]

Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 23%, reaching a record $152 million in the third quarter, exceeding the guidance of 18%-21% growth [11][12] - Annualized ARPU crossed $2 per user, growing 28% year over year to $2.13 [11] - Adjusted EBITDA reached $36.3 million, marking a new quarterly record and an adjusted EBITDA margin of 24% [11][12] Business Line Data and Key Metrics Changes - MiniPay's non-custodial wallets grew to over 10.5 million, with transactions increasing to almost 310 million [16] - Opera GX ended the quarter with 33 million users, up 3% year over year, and achieved a new ARPU record of $3.69 [17] Market Data and Key Metrics Changes - E-commerce revenue streams have doubled year-over-year, indicating strong growth potential [34] - Advertising revenue grew 27% year-over-year to $95.9 million, with e-commerce being the primary driver [22] Company Strategy and Development Direction - The company is focusing on AI integration within its browsers, particularly with the launch of Opera Neon, which aims to enhance user experience through advanced AI functionalities [10][15] - The strategic positioning emphasizes a browser-agnostic approach to AI, allowing users to utilize various large language models without being locked into a single provider [9][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, raising the revenue guidance for 2025 to $600 million-$603 million, reflecting a 25% growth over 2024 [25][26] - The company is well-positioned to capitalize on the increasing demand for alternative browsers as users consider switching [11][12] Other Important Information - The company was recognized by Fortune magazine as one of the 100 fastest-growing companies in 2025 based on revenue, profits, and stock returns [12] - The launch of Opera Neon is seen as a significant step towards transforming web browsing, with a focus on user feedback and community building [31][33] Q&A Session Summary Question: What traction has Opera Neon seen since its launch? - The launch has been well-received, with significant media coverage and positive feedback from early users, although it remains invitation-based for now [31][33] Question: How does the company view the growth of e-commerce? - E-commerce revenue streams have been rapidly scaling, with expectations of continued growth as the company is still under-indexing in the online advertising market [34] Question: What are the adoption trends for the Neon browser? - Early feedback indicates that users appreciate the efficiency and task-based architecture of Neon, which allows for faster execution of tasks compared to competitors [39][40] Question: How is the current demand environment for digital advertising? - The company sees a growing trend in performance-based e-commerce advertising, with year-over-year growth exceeding 100% [48] Question: What is the outlook for MiniPay's growth? - MiniPay is already generating revenue and is expected to expand further through partnerships, with plans to enhance its integration into various markets [50][71] Question: What are the competitive advantages of Opera Neon? - The browser's horizontal approach allows it to work with various AI models, providing users with flexibility and efficiency without being locked into a single provider [68]

Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 23%, reaching a record $152 million in the third quarter, exceeding the guidance of 18% to 21% growth [10][19] - The annualized ARPU crossed $2 per user, growing 28% year over year to $2.13 [10] - Adjusted EBITDA reached $36.3 million, marking a new quarterly record and translating to an adjusted EBITDA margin of 24% [10][19] - The updated revenue guidance for 2025 is now between $600 million and $603 million, representing a 25% growth over 2024 [24] Business Line Data and Key Metrics Changes - MiniPay has grown the number of non-custodial wallets to over 10.5 million, up from 9 million, with transactions increasing to almost 310 million from 250 million [16] - Opera GX ended the quarter with 33 million users, up 3% year over year, and achieved a new ARPU record of $3.69 on an annualized basis [17] Market Data and Key Metrics Changes - E-commerce revenue streams have doubled year-over-year, indicating strong growth potential in this segment [33] - Advertising revenue grew 27% year-over-year to $95.9 million, with e-commerce being the primary driver [21] Company Strategy and Development Direction - The company is focusing on AI integration within its browsers, particularly with the launch of Opera Neon, which showcases a task-based system for AI assistance [12][14] - Opera aims to maintain a competitive edge by being agnostic to underlying large language models, allowing for a more flexible and user-friendly browsing experience [6][63] - The company is positioning itself to capture a growing segment of users who are considering switching browsers, emphasizing innovation and reliability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strategic position in the evolving AI landscape and the potential for growth in browser usage [4][10] - The company noted that the broader recognition of web browsers' strategic importance is increasing, with significant investments from AI companies [5] - Management highlighted the importance of user feedback in shaping the future of Opera Neon and the overall product strategy [30][40] Other Important Information - The company was recognized by Fortune magazine as one of the 100 fastest-growing companies in 2025 based on revenue, profits, and stock returns [11] - The company maintains a solid financial position with cash at $119 million and no financial debt [23] Q&A Session Summary Question: What traction has Opera Neon seen since its launch? - The launch of Opera Neon has been well received, with significant media coverage and positive feedback from early users, although it remains invitation-based for now [30][32] Question: How does the company view the growth of e-commerce? - E-commerce revenue streams have been rapidly scaling, with expectations of continued growth as the company develops deeper partnerships with leading players in the market [33][34] Question: What is the current demand environment for digital advertising? - The demand for performance-based e-commerce advertising remains strong, with the company experiencing over 100% year-over-year growth in this segment [47][48] Question: What are the plans for MiniPay's growth and monetization? - MiniPay is already generating revenue through partnerships, with plans to reinvest earnings into marketing and expanding its user base [66] Question: What is the outlook for Opera GX's user base? - While the user base for Opera GX has plateaued, there are still growth opportunities in various regions, and the company is optimistic about future developments [68]

Q3 2025 INVESTOR PRESENTATION OPERA October 2025 OPERA INVESTOR PRESENTATION / 2 October 2025 SAFE HARBOR STATEMENT & DISCLAIMERS This presentation has been prepared by Opera Limited (the "Company") for investors, solely for informational purposes. This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act ...

Core Insights - Opera Limited reported a revenue growth of 23% year-over-year, reaching $151.9 million, which exceeded the guidance range [1][4] - Adjusted EBITDA for the quarter was $36.3 million, representing a 24% margin, also surpassing the guidance range [1][4] - The company raised its full-year revenue guidance to $600 - 603 million, indicating a 25% growth at the midpoint, and adjusted EBITDA guidance to $138 - 141 million, with a 23% margin at the midpoints [1][13] Financial Performance - Revenue for the third quarter of 2025 was $151.9 million, up from $123.2 million in the same quarter of 2024, marking a 23% increase [4][7] - Net income for the quarter was $18.6 million, a slight increase from $17.9 million in Q3 2024, resulting in a net income margin of 12% [10][11] - Adjusted net income rose to $26.8 million, reflecting a 17% increase compared to $22.9 million in Q3 2024, with an adjusted net income margin of 18% [11][10] Revenue Breakdown - Query revenue grew 17% year-over-year to $55.6 million, accounting for 37% of total revenue [8] - Advertising revenue increased by 27% to $95.9 million, representing 63% of total revenue, driven by strong momentum from e-commerce partners [8][7] - The average revenue per user (ARPU) increased by 28% year-over-year to $2.13, with 284 million average monthly active users (MAUs) [8] Product Developments - The company launched Opera Neon, a premium subscription-based browser featuring advanced AI-driven capabilities [3] - New versions of Opera's flagship and GX gaming browsers are set to launch with upgraded free browser AI, enhancing user experience [3] - MiniPay wallets saw a 175% year-over-year increase in activations, surpassing 10 million since launch, facilitating approximately 290 million peer-to-peer transactions worth over $300 million [8] Business Outlook - For the fourth quarter of 2025, Opera expects revenue between $162 - 165 million, indicating a year-over-year growth of 12% [13] - The adjusted EBITDA guidance for Q4 is set at $37.5 - 40.5 million, with an expected adjusted EBITDA margin of 24% [13] - The company anticipates continued annual growth expansion, projecting a 25% growth rate at the midpoint for 2025 [15]

Core Insights - Opera is enhancing its browser portfolio with upcoming AI upgrades, complementing its premium Opera Neon AI browser for advanced users [1][4] Company Overview - Opera has over 30 years of experience in developing superior browser products, with hundreds of millions of monthly active users [2] - The company has achieved accelerating revenue growth and healthy profitability while expanding its browser AI capabilities at no cost to users [2] AI Integration - Since May 2023, Opera users have had access to the free AI assistant, Aria, powered by OpenAI's GPT models and Google's Gemini models, integrated into various Opera browsers [3] - Upcoming versions of Opera's flagship browsers will feature an upgraded free browser AI, offering faster models, better integration, and higher usage limits [4] Premium Offering - Opera has launched the new Opera Neon browser, designed for power users who require advanced AI capabilities, allowing task delegation and complex project management [5][6] - The Tasks feature in Opera Neon enables users to work on multiple projects simultaneously, with AI agents assisting in various tasks [5] User Accessibility - Opera's two-tier approach provides users with access to everyday AI in free browsers and a premium AI-powered experience through Opera Neon [7]

Core Thesis - Opera Limited is viewed positively due to its strong growth, innovative products, and attractive valuation, presenting a compelling investment opportunity in the mid-cap software sector [1][4]. Company Overview - Opera Limited is a global software and internet company founded in 1995, listed on Nasdaq, and focuses on delivering browsers and AI-driven products [2]. - The company has a diversified portfolio including Opera One, Opera GX, Opera Mini, and Opera Neon, catering to various user segments [2]. - As of Q2 2025, Opera reported 289 million monthly active users, with 206 million on mobile and 83 million on desktop, including 58 million in high-value Western markets [2]. Financial Performance - In Q2 2025, Opera's advertising revenue increased by 44% year-over-year, while search revenue grew by 11%, leading to an annualized ARPU of $1.97 [3]. - The company's MiniPay stablecoin wallet saw a 255% increase in activations, and VPN Pro upgrades contributed to monetization efforts [3]. - Opera has returned $477 million to shareholders since 2020 through buybacks and dividends, and holds $392 million in cash and investments, including a $258 million stake in OPay [3]. Valuation and Market Position - Despite facing challenges such as declining gross margins and rising operating expenses, Opera's valuation remains attractive, trading below five-year averages with a PEG ratio of 0.93 [4]. - The stock offers a 42% upside to its fair value of $33.32, supported by strong solvency, diversified revenue streams, and high ARPU growth [4]. - The company has maintained 17 consecutive quarters above the Rule of 40, indicating scalable and profitable growth [3][4]. Recent Developments - The bullish thesis on Opera has been reinforced by its core browser strength, user growth in Opera GX, and disciplined shareholder returns, with the stock appreciating approximately 10% since March 2025 [5]. - The emphasis on AI integration, MiniPay growth, and consistent performance under the Rule of 40 highlights the company's ongoing potential [5].