Opera(OPRA)2025-04-28 20:59Financial Data and Key Metrics Changes - Revenue growth accelerated to 40% year over year in Q1 2025, up from 29% in Q4 2024, exceeding previous guidance of 28% to 31% [4][15] - Total revenue for Q1 2025 reached 32 million, with a margin of 23%, indicating increased profitability alongside revenue growth [6][15] Business Line Data and Key Metrics Changes - E-commerce was the fastest-growing vertical within advertising, achieving over 100% annualized growth, which offset typical seasonality [5][15] - Search revenue grew 8% year over year, indicating a slowdown compared to previous growth rates [5][32] - The user base remained stable at 293 million monthly active users (MAUs), with annualized ARPU increasing by 44% [7][15] Market Data and Key Metrics Changes - The U.S. market is experiencing greater uncertainty among advertisers, impacting growth potential [15][21] - The company has less exposure to U.S. e-commerce compared to competitors, suggesting significant growth opportunities ahead [22][63] Company Strategy and Development Direction - The company is focusing on high-value users and leveraging AI to optimize advertising and search revenue [6][10] - Opera is expanding its browser portfolio, including the introduction of AI-driven features, to enhance user experience and engagement [8][10] - The company aims to maintain aggressive growth in e-commerce while navigating macroeconomic challenges [21][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to grow despite a volatile macro environment, highlighting a strong track record of navigating challenges [13][21] - The company raised its full-year revenue guidance to DKK 567 million to DKK 582 million, reflecting confidence in continued growth [24][21] - Management noted that the advertising revenue is primarily performance-based, making it more resilient in uncertain economic conditions [22][67] Other Important Information - The company celebrated its 25th anniversary in 2025, emphasizing its long history of innovation and adaptation [13] - Opera 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 during the quarter - Management acknowledged that the 8% growth in search revenue is a slowdown but attributed it to a shift towards intent-based advertising, which is driving overall advertising growth [32][34] Question: Decline in GX ARPU - Management noted that the decline in GX ARPU is partly seasonal and that the introduction of AI and high-intent advertising options is expected to benefit overall revenue [32][36] Question: Impact of currency on growth - Management indicated that the strong U.S. dollar has been a headwind, estimating that growth would have been 5 to 6 percentage points higher on a constant currency basis [38] Question: E-commerce growth and seasonality - Management confirmed that the rapid growth of e-commerce has offset typical seasonality, but acknowledged that seasonality will still be a factor as the business matures [41][44] Question: Concerns about MAU count - Management clarified that the focus is on high ARPU users rather than total MAU count, emphasizing revenue generation over user numbers [46][48] Question: U.S. antitrust actions and broader ecosystem - Management expressed that ongoing antitrust discussions could benefit Opera by increasing focus on competition and innovation in the browser market [49][52] Question: E-commerce opportunity and geographic exposure - Management highlighted that the e-commerce segment is growing rapidly and that the U.S. market still holds significant potential for future growth [56][58] Question: Gating factors for e-commerce growth - Management stated that attracting performance-focused advertisers is key to expanding e-commerce revenue, with a focus on larger retailers initially [61][64]