Opera(US:OPRA)2024-02-29 15:26Financial Data and Key Metrics Changes - The company reported Q4 2023 revenue of $113 million, representing a 17% year-over-year growth, and full-year revenue of $397 million, up 20% year-over-year [16][25][27] - Adjusted EBITDA for Q4 was $28 million, exceeding expectations, with a full-year adjusted EBITDA of $94 million, resulting in a 24% margin [16][25][27] - Annualized ARPU reached a record high of $1.44 in Q4, up 22% year-over-year and 10% sequentially [17] Business Line Data and Key Metrics Changes - Advertising revenue in Q4 was $68 million, growing 20% year-over-year, and accounted for 60% of total revenue [19] - Search revenue was $45 million in Q4, up 15%, indicating strong performance despite market maturity [19] - Opera GX user base reached 27.8 million, with annualized ARPU increasing to $3.51, up 6% from Q3 [23] Market Data and Key Metrics Changes - The company observed growth in both Western and non-Western markets, with a notable increase in high ARPU users in emerging markets due to Opera GX [25][27] - Brazil has emerged as a significant market for Opera GX, following the US, with high ARPU among PC gamers [23][36] Company Strategy and Development Direction - The company aims to integrate Aria, its browser AI, into the browsing experience to enhance user engagement and monetization opportunities [2][20] - Continued focus on high ARPU users and expansion of Opera Ads is expected to drive revenue growth [4][22] - The launch of a new green data center in Iceland is part of the company's strategy to enhance its AI infrastructure [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2024, guiding revenue between $450 million to $465 million, representing a 15% growth at the midpoint [4][32] - The company is optimistic about the potential for growth in iOS markets due to regulatory changes allowing third-party browser engines [24][47] - Management highlighted the importance of balancing investments in growth while maintaining operating leverage [46] Other Important Information - The company completed a buyback program, repurchasing 1.15 million ADSs, fulfilling a $50 million buyback initiated in early 2022 [29] - The updated fair value of the company's stake in OPay increased to $269 million, reflecting strong user growth and revenue performance [28] Q&A Session Summary Question: What is the potential for expanding the user base in high-value markets? - Management indicated that there is significant room for growth in high ARPU markets like the US and Western Europe, with Brazil showing promising growth for Opera GX users [35][36] Question: Is there any risk of cutting the dividend? - Management reassured that there are no plans to cut the dividend, emphasizing strong cash generation and the desire to potentially increase it in the future [37] Question: How will the opening of competition by Apple affect growth? - Management noted that while it is still early, the regulatory changes could allow for greater competition and growth in iOS markets, which is a positive development [45][47] Question: What are the key investments for 2024? - Management highlighted the focus on high-value users and the integration of AI as key areas for investment while maintaining operating leverage [46] Question: What new advertiser verticals are being targeted? - Management mentioned that e-commerce and fintech are potential new verticals, focusing on high-intent user events for monetization [58][59]