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].

Summary of Opera FY Conference Call - September 10, 2025 Company Overview - **Company**: Opera (NasdaqGS: OPRA) - **Industry**: Consumer Internet, Browser Development - **User Base**: Approximately 300 million users - **Revenue**: Approximately $600 million, growing over 20% year-over-year [2][3] Core Products - **Opera One**: Targeted at tech-savvy and design-oriented users [4] - **Opera GX**: Designed specifically for gamers, featuring high engagement and the highest Average Revenue Per User (ARPU) [5][6] Financial Performance - **EBITDA**: Positive around 23% with good cash conversion [3] - **Advertising Growth**: Over 100% year-over-year growth in e-commerce initiatives, with a focus on major partners like Amazon [10][12] - **Search Revenue**: Accounts for roughly one-third of total revenue, typically outgrowing Google's search revenue [20][21] Market Position and Strategy - **Market Share**: 4% in key regions, with significant growth potential [12] - **User Acquisition**: Focus on high ARPU user bases, particularly in Western markets [21] - **Advertising Strategy**: Performance-based partnerships with major global and regional players [15] Competitive Landscape - **Google Antitrust Case**: Recent ruling allows Google to continue paying revenue shares to traffic sources like Opera, which is beneficial for Opera's search revenue [24][28] - **Browser Competition**: Opera differentiates itself by focusing on niche markets rather than competing for the majority market share [4][43] Innovations and Future Growth - **AI Integration**: Launching a native AI browser called Neon, which enhances user productivity and monetization opportunities [37][38] - **MiniPay**: A stablecoin wallet with 9 million wallets and 250 million transactions, showing rapid growth in emerging markets [47][48] Capital Return Strategy - **Shareholder Returns**: Nearly $500 million returned since 2020 through buybacks and dividends, with a focus on maintaining a recurring dividend [58][59] Key Takeaways - Opera is positioned for continued growth in the browser market, leveraging its unique products and strong user engagement - The company is actively expanding its advertising and e-commerce initiatives, with a focus on high-value partnerships - Innovations in AI and financial services like MiniPay are expected to drive future growth and enhance user experience

Summary of Opera's 2025 Conference Call Company Overview - **Company**: Opera (NasdaqGS: OPRA) - **Industry**: Web Browsers and Internet Services - **User Base**: Approximately 300 million monthly users, with a significant presence in both emerging and Western markets [4][6] - **Revenue**: Close to $600 million, with a growth guidance of 23% for the year [4][5] Key Points and Arguments User Demographics and Growth - **Geographic Split**: 20% of users in Western markets, up from 6-7% previously, indicating successful market penetration [6][12] - **ARPU Growth**: Average Revenue Per User (ARPU) has tripled over the past four years, driven by higher monetization in Western markets [6][12] - **Target Audience**: Focus on tech-savvy users who appreciate feature-rich browsers, particularly in the gaming segment [6][10] Competitive Landscape - **EU Regulations**: The Digital Markets Act has positively impacted Opera, leading to a doubling of new iOS users in the EU [12][13] - **U.S. Market**: Ongoing partnership with Google for search revenue, with no expected changes following recent regulatory rulings [15][19] Artificial Intelligence Integration - **AI Features**: Introduction of AI functionalities in the flagship browser, Opera One, allowing users to interact with an AI agent [20][21] - **Opera Neon**: Upcoming AI-native browser designed to enhance user experience by integrating AI capabilities directly into the browsing process [24][27] Gaming Browser Opportunity - **User Base**: 33 million users of the gaming browser (Opera GX), with an average ARPU of $3.50, representing about 20% of total revenue [32][33] - **Market Expansion**: Plans to expand into key Asian markets like Japan and South Korea, which present significant growth potential [32][33] Growth Investments and Financial Strategy - **Investment Focus**: Prioritizing high-value user growth and product development, particularly for Opera One and Opera GX [34][41] - **Capital Return**: Nearly $500 million returned to shareholders since 2020, with a preference for dividends over buybacks to maintain liquidity [40][41] Future Outlook - **Strategic Priorities**: Focus on leveraging AI and enhancing browser capabilities to attract more users and increase brand awareness [44][47] - **Long-term Vision**: Emphasis on the evolving role of browsers in users' daily lives, with aspirations to innovate and provide alternatives in the market [46][47] Additional Important Insights - **Marketing Effectiveness**: Data-driven marketing strategies are in place to assess ROI and optimize campaigns for user acquisition [35][36] - **AI Partnerships**: Collaborations with Google and OpenAI for backend AI functionalities, while maintaining control over local processing [29][30] This summary encapsulates the key insights from Opera's conference call, highlighting the company's strategic direction, market positioning, and future growth opportunities.

Summary of Opera (OPRA) 2025 Conference Call Company Overview - **Company**: Opera - **Industry**: Internet and Software - **Monthly Active Users**: 289 million globally [1][8] - **Revenue Guidance**: Close to $600 million for the year, with a growth rate of approximately 23% [8][55] - **Profitability**: Company has maintained a "Rule of 40" status for 16-17 quarters, balancing growth and profitability [8] Product Portfolio - **Browsers**: Opera has developed a portfolio of browsers catering to different user needs, including Opera One, GX (for gamers), Air (mindfulness-focused), and Neon (AI-oriented) [21][27] - **AI Integration**: Opera Neon aims to integrate AI functionalities directly into the browsing experience, enhancing productivity for users [29][32] - **Target Audience**: Focus on tech-savvy users and specific segments like gamers, rather than a broad audience [27][54] Market Dynamics - **Partnership with Google**: Opera has a long-standing partnership with Google, which accounts for about one-third of its total revenue. Recent rulings allow Google to continue paying for traffic, which is beneficial for Opera [10][14] - **Browser Market**: The browser market is gaining more attention, with Opera positioning itself as a valuable player in the space, especially as AI companies highlight the importance of browsers [18][20] Financial Performance - **Revenue Composition**: Advertising revenue has grown significantly, now accounting for two-thirds of total revenue, while search revenue has become a smaller portion [71] - **ARPU Growth**: The average revenue per user (ARPU) has quadrupled over the past four years, with a 30% increase in the Western user base [55] Marketing Strategy - **Brand Awareness**: Opera spends approximately 30% of its revenue on marketing, focusing on influencers and tech media to build brand identity [59][60] - **Targeted Marketing**: The company targets specific user groups, such as gamers, to improve retention and engagement [66] Future Outlook - **Product Launch**: Opera Neon is set to launch soon, with expectations that it will leverage AI to enhance user productivity [43][45] - **E-commerce Growth**: E-commerce partnerships have seen over 100% year-over-year growth, indicating a strong revenue potential moving forward [76] Additional Insights - **User Base Strategy**: Opera has shifted focus from feature phone users in emerging markets to higher ARPU potential users in developed regions [53] - **Predictability in Revenue**: The company has a high degree of predictability in revenue generation due to the vast amounts of data collected from user interactions [78] Conclusion - **Overall Positioning**: Opera is strategically positioned in the browser market with a diverse product portfolio and a strong focus on integrating AI to enhance user experience. The company is also leveraging its long-term partnership with Google to maintain revenue growth and market presence.

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]