Opera(US:OPRA)2025-11-18 19:17Summary of Opera's Conference Call Company Overview - Company: Opera - Industry: Internet Browsers - Headquarters: Norway - User Base: Approximately 300 million monthly users - Public Since: 2018 - CAGR Growth: Over 20% since going public - Profitability: The company is profitable and pays a dividend with a recurring yield exceeding 5% [3][30][29] Core Business and Monetization - Primary Product: Opera browser, with a focus on driving traffic to partners such as search engines and advertisers [3][4] - New Product: Neon browser, which offers advanced agentic capabilities for a monthly subscription, targeting enthusiasts who want more control and automation in their browsing experience [11][12] Competitive Landscape - Emerging Competitors: AI-native companies like Perplexity and OpenAI are entering the browser space, which Opera views as an opportunity rather than a threat [4][5] - Differentiation Strategy: Opera aims to remain agnostic and independent, allowing users to utilize multiple AI platforms without being locked into one [6][30] Technological Advancements - AI Integration: Opera uses a combination of models, including Gemini and ChatGPT, to enhance user experience and browser capabilities [7][10] - Agentic Capabilities: The browser is designed to assist users in tasks such as research and e-commerce, with the goal of improving efficiency and user satisfaction [13][24] Revenue Streams - Query Revenue: Approximately one-third of revenue comes from query revenue, which has seen a tripling in growth over the past year [16][18] - Advertising Revenue: Roughly two-thirds of revenue, with e-commerce advertising growing rapidly, expected to represent half of advertising revenue by Q4 [19][21] - Performance-Based Advertising: Opera focuses on performance-based advertising, which is seen as more beneficial for partners compared to traditional display advertising [20][21] E-commerce Strategy - Key Partners: Major e-commerce partners include Amazon, Booking, Temu, and Shein, with a focus on driving traffic to these platforms [22][21] - User Engagement: The browser aims to present users with options while allowing agents to facilitate transactions, ensuring that advertising opportunities remain intact [23][25] Financial Discipline and Future Outlook - Profitability: Opera maintains a strong EBITDA margin of 24% and has returned approximately $500 million to shareholders since 2020 through buybacks and dividends [33][47] - Opay Stake: Opera holds a 9.4% stake in Opay, a successful mobile wallet in Nigeria, which is expected to go public, potentially generating significant gains for Opera [40][42] New Initiatives - MiniPay: A non-custodial wallet focused on stablecoins, aimed at emerging markets, which has quickly grown to 10 million wallets [34][35] - Market Positioning: Opera positions MiniPay as a trusted solution in regions where it has established a long-standing presence [36][38] Misunderstandings in the Market - Market Perception: Opera is not a direct competitor to large language models (LLMs) but rather aims to integrate and enhance user experiences through its browser [28][30] - Partnerships: The company emphasizes the importance of long-term partnerships, particularly with Google, which have been beneficial for its business model [31][32] This summary encapsulates the key points discussed during the conference call, highlighting Opera's strategic positioning, technological advancements, revenue generation, and future outlook in the competitive landscape of internet browsers.