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 has launched Opera Translate, a built-in translation feature for its browsers Opera One and Opera GX, aimed at breaking down language barriers for users globally [1][2] - The translation feature supports over 40 languages and is designed to enhance user experience by allowing instant translation of web pages [2][3] - Opera GX has introduced custom animated cursors and improved tab management features, enhancing personalization and usability for gamers [5][10] Opera Translate - Opera Translate is integrated natively into Opera One and Opera GX, detecting different languages on web pages and offering instant translation [2] - The feature is powered by Lingvanex's AI technology and ensures data privacy by processing translations on Opera's European servers [3] - Users can choose to translate pages once or set preferences for automatic translation of specific languages [2] Opera One Updates - Opera One has improved its Split Screen feature, allowing users to access the toolbar in each tab while in Split Screen mode [4][8] - The update includes the ability to group tabs into Tab Islands, enhancing organization and navigation [10] - Users can now save entire Tab Islands as Speed Dials for easier access to frequently used tabs [10][15] Opera GX Enhancements - Opera GX has launched a "Browser Booster" update, introducing fully customizable animated cursors, enhancing the aesthetic experience for users [5][14] - The update includes over 30 cursor packs available for easy application without the need for third-party tools [5][15] - Tab Islands feature is now stable, allowing users to name and color-code their tab groups for better organization [10][15] User Experience Focus - The introduction of custom cursors aims to provide visual consistency across the browser, enhancing the overall user experience [7][14] - The updates reflect Opera's commitment to user-centric design, catering to the needs of gamers and general users alike [6][17] - Opera continues to innovate by integrating features that prioritize both functionality and personalization [16][17]

Core Insights - Opera Limited has launched a revamped version of its premium VPN service, VPN Pro, which offers device-wide protection and privacy for users on multiple devices [1][5] - The upgraded VPN Pro features improved server infrastructure, providing a minimum of 10Gb/s connectivity and access to 48 global locations, an increase of 15 locations from the previous version [2] - The new VPN Pro integrates the Lightway protocol, enhancing security and reliability while ensuring faster performance and battery efficiency, with built-in post-quantum protection [3][4] Product Features - VPN Pro allows users to protect up to six devices, including Windows, MacOS, and Android, and is available on Opera One, Opera GX, and Opera for Android [1][5] - The service maintains a strict no-log policy, ensuring that user data, personal information, and browsing activity are not collected or stored [4] - Existing users will automatically upgrade to the new version, while new users can try the enhanced service with a 7-day free trial [5] Company Background - Opera is a user-centric software company focused on providing a secure and innovative internet browsing experience, with a significant user base across mobile and desktop platforms [6] - Founded in 1995 and headquartered in Oslo, Norway, Opera is publicly traded on the Nasdaq under the ticker symbol OPRA [6]

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]

Financial Data and Key Metrics Changes - Revenue growth increased from 29% in Q4 2024 to 40% in Q1 2025, translating to revenue of $143 million for Q1 2025, exceeding previous guidance [5][6] - Adjusted EBITDA reached $32 million with a margin of 23%, indicating profitability alongside revenue growth [7][18] - Annualized ARPU grew by 44% year over year, reflecting a focus on high-value users [8] Business Line Data and Key Metrics Changes - Advertising revenue grew by 63% in Q1 2025, now representing two-thirds of total revenue, with e-commerce being the fastest-growing vertical at over 100% annualized growth [6][8] - Search revenue was $7 million, growing 8% year over year, indicating a stable growth despite a shift towards e-commerce [6][30] Market Data and Key Metrics Changes - The user base remained stable at 293 million MAUs, with a focus on high ARPU potential users [8][47] - The U.S. market is seen as having significant growth potential in e-commerce, with the company having less exposure compared to competitors [22][64] Company Strategy and Development Direction - The company aims to leverage AI for optimizing user intent and enhancing advertising effectiveness, which is expected to drive future growth [7][50] - Opera is focusing on performance-based advertising, which is more resilient in volatile market conditions, allowing for continued growth [22][67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic volatility but expressed confidence in the company's ability to navigate these challenges and capitalize on growth opportunities [21][24] - The company raised its full-year revenue guidance to DKK 567 million to DKK 582 million, reflecting optimism about continued growth [24][25] Other Important Information - The company celebrated its anniversary and highlighted its history of navigating market disruptions and competition [13][14] - The company has distributed $2.4 in dividends per share since January 2023, indicating a commitment to returning value to shareholders [21] Q&A Session Summary Question: Search growth slowdown and its impact - Management noted that the shift towards intent-based advertising is influencing search growth, which is still expected to grow strongly in the future [30][34] Question: Impact of currency on growth - The strong U.S. dollar has been a headwind, with growth estimated to be 5-6 percentage points higher on a constant currency basis [38] Question: E-commerce growth and seasonality - E-commerce growth has been strong enough to offset typical seasonality, but management expects some seasonality to return as the business matures [41][44] Question: User base concerns - The focus is on high ARPU users rather than total MAUs, with management confident in revenue growth despite a slight decline in user numbers [47] Question: U.S. antitrust actions and their impact - Management sees potential benefits from increased competition and focus on user intent, positioning Opera favorably in the evolving ecosystem [48][50] Question: E-commerce advertiser diversification - The e-commerce opportunity is growing rapidly, with a focus on performance-based partnerships, particularly in the U.S. market [56][64]

Core Insights - Opera Limited (OPRA) is expected to report first-quarter 2025 earnings on April 28, with anticipated revenues between $130 million and $133 million, reflecting a 29% year-over-year growth [1] - The consensus estimate for earnings is set at 26 cents per share, indicating a significant year-over-year increase of 52.94% [2] Revenue Growth Factors - The advertising business is projected to have continued its strong performance, growing 38% year-over-year in Q4 2024, driven by e-commerce segments and performance-based advertising models [3] - Solid growth in Western markets, particularly in Europe and the U.S., is attributed to increased iOS downloads and favorable regulatory shifts [4] User Engagement and Technology - Investments in AI technologies and the integration of AI features into new browser versions like Opera R2 and Opera One have enhanced user experience and engagement [5] - Opera GX, the gaming browser, has seen a 22% year-over-year increase in its user base, reaching 33.9 million monthly active users, contributing to revenue growth [6] Operational Considerations - Rising operational expenses, which increased from 27.1% in Q4 2024, may impact overall profitability in the upcoming quarter [7] Earnings Expectations - Opera Limited currently has an Earnings ESP of 0.00% and a Zacks Rank 1 (Strong Buy), indicating mixed signals regarding the likelihood of an earnings beat [8]