Opera Limited announces first quarter 2021 financial results, exceeds expectations for revenue growth and adjusted EBITDA
Opera Limited (NASDAQ: OPRA) reported strong Q1 2021 results with revenue rising 28% to $51.6 million. Net income turned positive at $0.6 million, compared to a $20.9 million loss in Q1 2020. Core search and advertising revenue grew 38% year-over-year. Adjusted EBITDA was $4.6 million, marking a significant turnaround from a loss last year. The company raised its full-year revenue expectations to between $230 million and $245 million, indicating optimism in its growth trajectory, especially in gaming and fintech sectors.
- Revenue increased 28% to $51.6 million in Q1 2021.
- Net income changed to $0.6 million from a $20.9 million loss in Q1 2020.
- Core search and advertising revenue grew 38% year-over-year.
- Adjusted EBITDA rose to $4.6 million from a loss last year.
- Full-year revenue guidance raised to $230-$245 million, a 44% increase at midpoint.
- Operating expenses increased 11% to $53.1 million.
- Continued cautious approach towards near-term financial expectations due to investment costs.
OSLO, Norway, April 27, 2021 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's largest internet consumer brands with hundreds of millions of users worldwide, today announced its unaudited consolidated financial results for the quarter ended March 31, 2021:
First quarter 2021 financial highlights
Three Months Ended March 31, | Year-over- | |||||||||||
[US$ thousands, except for margins and per ADS amounts] | 2020 | 2021 | year % change | |||||||||
Revenue | 40,194 | 51,583 | 28.3 | % | ||||||||
Net income (loss) | (20,859) | 639 | n.m. | |||||||||
Margin | -51.9 | % | 1.2 | % | ||||||||
Adjusted EBITDA (1) | (338) | 4,576 | n.m. | |||||||||
Margin | -0.8 | % | 8.9 | % | ||||||||
Adjusted net income (1) | (12,271) | 4,607 | n.m. | |||||||||
Margin | -30.5 | % | 8.9 | % | ||||||||
Diluted net income per ADS, US$ | (0.17) | 0.01 | n.m. | |||||||||
Diluted adjusted net income per ADS, US | (0.10) | 0.04 | n.m. | |||||||||
(1) Please see the separate section "About non-IFRS financial measures" for the definitions of adjusted EBITDA and adjusted net income. |
"Opera's financial outperformance this quarter is a welcome validation of our strategic approach to growth, and highlights our two complementary strengths," noted co-CEO Song Lin. "First, our core businesses are operating at greater scale across our key markets, with higher user engagement. As a consequence, user-driven search and advertising revenues accelerated to
First Quarter and Recent Business Highlights
- Core search and advertising growth rates accelerated to
38% year-over-year in Q1 driven by strong browser and news performance - Opera's monthly active user base increased by 16 million year-over-year in the first quarter; driven by
12% and14% year-over-year growth in core regions Africa and Europe, respectively - The Company reached 79 million average monthly PC users in the first quarter, up
17% year-over-year - The Opera GX browser user base now totals nearly 9 million users, up
190% year-over-year in March - Opera News revenue grew over
260% year-over-year and30% sequentially versus the fourth quarter. - Investments in our strategic growth initiatives continued; Opera News continues to scale in developed markets, we launched a cashback offering under the Dify brand in Europe, and we continued to build out the Opera gaming platform/community.
"In sum", continued Mr. Song, "we believe we have all the elements in place to enjoy sustained, strong long-term growth, accelerating our trajectory towards significant scale. Our core browsing business shows there is substantial room for growth and innovation: people want features optimized for the way they actually spend time online, whether it's shopping, gaming, looking for news, or simply trying to manage their digital lives with a sense of privacy and security. People have every right to expect more innovation, and more value, from the browsing experience, and the combination of our core businesses and new initiatives offer just that."
Business Outlook
Mr. Frode Jacobsen, Opera's CFO, said, "The continued acceleration of our core browser and Opera News products, both in terms of engagement and monetization, resulted in a first quarter that exceeded our already high expectations. Due to this we are raising our revenue expectations for the full year. Further, we remain extremely optimistic about the long-term prospects of our gaming, European fintech and Opera News in developed markets, but we continue to take a cautious approach as it relates to near-term financial expectations -- fully weighting potential investment, while only including small amounts of revenue contribution from new initiatives."
For the full year 2021, Opera now expects revenue of
For the second quarter 2021, Opera expects revenue of
Nanobank and other investments
Nanobank posted revenue of
In terms of other investments, OPay's total payment volume continues to grow and has increased from December 2020 levels of
Opera owns
First quarter 2021 consolidated financial results
All comparisons in this section are relative to the first quarter of 2020 unless otherwise stated. Our former emerging markets fintech and retail revenues are not included in comparisons as they are classified as discontinued operations.
Revenue increased
- Search revenue increased
36% to$26.7 million due to strong PC user growth and as monetization continued to improve. - Advertising revenue increased
40% to$24.3 million due to strong Opera News monetization and ad monetization increases. - Technology licensing and other revenue was
$1.4 million . This declined$2.3 million compared to the previous year as Opera has been phasing out low-margin professional services for an investee.
Operating expenses increased
- Combined technology and platform fees, content cost and cost of inventory sold was
$2.2 million , a30% increase driven by increased costs of third-party ad inventory. - Personnel expenses, including share-based remuneration, were
$17.1 million , a4% increase. This expense consists of cash-based compensation expense of$16.0 million , and$1.1 million of share-based remuneration expense. - Marketing and distribution expenses were
$23.4 million , an increase of61% driven by increased spend towards new initiatives, primarily Opera News in developed markets. - Depreciation and amortization expenses were
$5.0 million , up8% . - Other operating expenses were
$5.5 million , a23% decrease driven by general reductions across several smaller cost categories.
Operating loss was
Other items include share of net loss of associates and joint ventures of
Income tax benefit was
Net income was
Net income per ADS was
Adjusted EBITDA was
Adjusted net income was
Adjusted net income per ADS was
We have posted unaudited supplemental information at https://investor.opera.com, including: 1) Opera's financial historical results by quarter since 2019; and 2) Nanobank financial results by quarter since 2019 (pro forma prior to August 19, 2020). The presentation of Opera's previous results includes certain reclassifications, most notably eliminating the prior "cost of revenue" line item to present all costs by nature, and certain fair value adjustments for year-end 2020. In sum, prior period revenue and adjusted EBITDA is not affected, while 2020 net income increased by
We are in an advanced stage of completing our annual report on Form 20-F. We anticipate, however, using the extra time afforded by SEC Rule 12b-25. Our investee Nanobank is conducting its first annual closing of IFRS figures across all active markets, and related external audit under PCAOB auditing standards, upon which we intend to rely. In particular, Nanobank's location in India has seen process impacts of the local COVID-19 resurgence affecting both Nanobank staff and its external audit team, resulting in significant delays in completing all required processes.
Conference call
Opera's management will host a conference call to discuss the first quarter 2021 financial results on Tuesday, April 27th at 8:00 am Eastern Time (EDT) (2:00 PM Central European Time, 9:00 PM Beijing/Hong Kong time). Listeners may access the call by dialing the following numbers:
United States: +1 833 570-1161
China: +86 400 682 8609
Hong Kong: +852 5819 4851
Norway: +47 2396 4173
United Kingdom: +44 (0)203 107 0289
International: +1 918 922-6511
Confirmation Code: 3686713
A live webcast of the conference call will be posted at https://investor.opera.com.
About non-IFRS financial measures
To supplement our consolidated financial statements, which are prepared and presented based on IFRS, we use adjusted EBITDA and adjusted net income, both non-IFRS financial measures, to understand and evaluate our core operating performance. These non-IFRS financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS.
We define adjusted EBITDA as net income (loss) excluding income tax expense (benefit), net finance expense (income), share of net loss (income) of associates and joint ventures, restructuring costs, depreciation and amortization, share-based remuneration, other income, non-recurring expenses and discontinued operations.
We define adjusted net income as net income excluding share-based remuneration, amortization of acquired intangible assets, non-recurring expenses and discontinued operations, net of associated income tax adjustments.
We believe that adjusted EBITDA and adjusted net income provide useful information to investors and others in understanding and evaluating our operating results. These non-IFRS financial measures adjust for the impact of items that we do not consider indicative of the operational performance of our business. While we believe that these non-IFRS financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared and presented in accordance with IFRS. Please refer to our financial statements at the end of this announcement for a table reconciling our non-IFRS financial measures to net income (loss), the most directly comparable IFRS financial measure.
Safe harbor statement
This press release contains statements of a forward-looking nature. These statements, including statements relating to the Company and its investees' future financial and operating results, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. Among other things, management's quotations and the Business outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company, its investees, and the industry in which they operate. Potential risks and uncertainties include, but are not limited to, those relating to: the duration and development of the COVID-19 pandemic as well as changes in consumer behaviors as a result of such pandemic; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company and its investees' expectations regarding demand for and market acceptance of their brands, platforms and services; Company's expectations regarding growth in its user base, user retention and level of engagement; Company's ability to attract, retain and monetize users; Company's ability to continue to develop new technologies and/or upgrade its existing technologies; quarterly variations in Company's operating results caused by factors beyond its control; and global macroeconomic conditions and their potential impact in the markets in which Company or its investees have businesses. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Opera is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F.
About Opera
Opera is a global web innovator. Opera's browsers, news products and fintech solutions are the trusted choice of hundreds of millions of users worldwide. Opera is headquartered in Oslo, Norway and listed on the NASDAQ stock exchange (OPRA). Download the Opera browser from www.opera.com.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
Three Months Ended March 31, | ||||||||
[US$ thousands, except per share and ADS amounts] | 2020 | 2021 | ||||||
Revenue | 40,194 | 51,583 | ||||||
Other income | - | 58 | ||||||
Operating expenses | ||||||||
Technology and platform fees | (547) | (873) | ||||||
Content cost | (1,075) | (845) | ||||||
Cost of inventory sold | (49) | (446) | ||||||
Personnel expenses including share-based remuneration | (16,453) | (17,096) | ||||||
Marketing and distribution expenses | (14,526) | (23,357) | ||||||
Credit loss expense | (1,244) | 14 | ||||||
Depreciation and amortization | (4,657) | (5,037) | ||||||
Non-recurring expenses | (2,072) | - | ||||||
Other expenses | (7,113) | (5,460) | ||||||
Total operating expenses | (47,735) | (53,099) | ||||||
Operating profit (loss) | (7,544) | (1,457) | ||||||
Share of net income (loss) of associates and joint ventures | (664) | (145) | ||||||
Change in fair value of preferred shares in associates | - | - | ||||||
Net finance income (expense) | ||||||||
Finance income | (11) | 1,717 | ||||||
Finance expense | (5,920) | (442) | ||||||
Net foreign exchange gain (loss) | (280) | 139 | ||||||
Net finance income (expense) | (6,211) | 1,413 | ||||||
Profit before income taxes | (14,420) | (189) | ||||||
Income tax (expense) benefit | (1,549) | 828 | ||||||
Profit from continuing operations | (15,969) | 639 | ||||||
Profit (loss) from discontinued operations | (4,892) | - | ||||||
Net income | (20,859) | 639 | ||||||
Net income attributable to: | ||||||||
Equity holders of the parent | (20,859) | 639 | ||||||
Non-controlling interests | - | - | ||||||
Total net income attributed | (20,859) | 639 | ||||||
Weighted average number of ordinary shares outstanding | ||||||||
Basic, millions(1) | 238.29 | 230.25 | ||||||
Diluted, millions(2) | 241.64 | 232.69 | ||||||
Profit per ordinary share from continuing operations | ||||||||
Basic, US$ | (0.07) | 0.00 | ||||||
Diluted, US$ | (0.07) | 0.00 | ||||||
Profit per ADS from continuing operations | ||||||||
Basic, US$ | (0.13) | 0.01 | ||||||
Diluted, US$ | (0.13) | 0.01 | ||||||
Net income per ordinary share | ||||||||
Basic, US$ | (0.09) | 0.00 | ||||||
Diluted, US$ | (0.09) | 0.00 | ||||||
Net income per ADS | ||||||||
Basic, US$ | (0.18) | 0.01 | ||||||
Diluted, US$ | (0.17) | 0.01 | ||||||
(1) As of March 31, 2021, the total number of shares outstanding for Opera Limited was 230,291,732 , equivalent to 115,145,866 ADSs. |
(2) Includes the net dilutive impact of employee equity awards, all of which are dilutive. |
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||
Three Months Ended March 31, | ||||||||
[US$ thousands] | 2020 | 2021 | ||||||
Net income | (20,859) | 639 | ||||||
Other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods (net of tax) | ||||||||
Exchange differences on translation of foreign operations | 301 | (1,316) | ||||||
Net other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods | 301 | (1,316) | ||||||
Total comprehensive income | (20,558) | (677) | ||||||
Total comprehensive income attributable to: | ||||||||
Equity holders of the parent | (20,558) | (677) | ||||||
Non-controlling interests | - | - | ||||||
Total comprehensive income attributed | (20,558) | (677) | ||||||
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||||
As of December 31, | As of March 31, | |||||||
[US$ thousands] | 2020 | 2021 | ||||||
ASSETS | ||||||||
Non-current assets | ||||||||
Furniture, fixtures and equipment | 18,167 | 16,650 | ||||||
Intangible assets | 111,954 | 113,786 | ||||||
Goodwill | 424,961 | 431,391 | ||||||
Investments in associates and joint ventures | 369,576 | 370,387 | ||||||
Non-current financial assets | 1,490 | 1,445 | ||||||
Deferred tax assets | 4,383 | 3,933 | ||||||
Total non-current assets | 930,531 | 937,592 | ||||||
Current assets | ||||||||
Trade receivables | 29,027 | 31,288 | ||||||
Loans to customers | 68 | 80 | ||||||
Other receivables | 10,750 | 8,275 | ||||||
Prepayments | 9,061 | 5,899 | ||||||
Inventories | - | 21 | ||||||
Other current financial assets | 856 | - | ||||||
Marketable securities | - | - | ||||||
Cash and cash equivalents | 134,168 | 143,297 | ||||||
Total cash, cash equivalents, and marketable securities | 134,168 | 143,297 | ||||||
Total current assets | 183,929 | 188,859 | ||||||
TOTAL ASSETS | 1,114,460 | 1,126,452 | ||||||
EQUITY AND LIABILITIES | ||||||||
Equity | ||||||||
Share capital | 24 | 24 | ||||||
Other paid in capital | 765,129 | 764,381 | ||||||
Retained earnings | 287,246 | 288,618 | ||||||
Foreign currency translation reserve | 1,343 | 27 | ||||||
Equity attributed to equity holders of the parent | 1,053,743 | 1,053,049 | ||||||
Non-controlling interests | - | - | ||||||
Total equity | 1,053,743 | 1,053,049 | ||||||
Non-current liabilities | ||||||||
Non-current lease liabilities and other loans | 3,584 | 4,529 | ||||||
Deferred tax liabilities | 11,745 | 11,192 | ||||||
Other non-current liabilities | 68 | 193 | ||||||
Total non-current liabilities | 15,397 | 15,913 | ||||||
Current liabilities | ||||||||
Trade and other payables | 25,454 | 32,269 | ||||||
Current lease liabilities and other loans | 5,389 | 4,531 | ||||||
Income tax payable | 1,094 | 902 | ||||||
Deferred revenue | 345 | 513 | ||||||
Other current liabilities | 13,040 | 19,274 | ||||||
Total current liabilities | 45,320 | 57,489 | ||||||
Total liabilities | 60,717 | 73,402 | ||||||
TOTAL EQUITY AND LIABILITIES | 1,114,460 | 1,126,452 | ||||||
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||||||||||||||
[US$ thousands] | Share capital | Other paid in capital | Retained earnings | Foreign currency translation reserve | Total equity | |||||||||||||||
As of December 31, 2019 | 24 | 814,177 | 99,513 | (1,508) | 912,206 | |||||||||||||||
Net income | - | - | (20,859) | - | (20,859) | |||||||||||||||
Other comprehensive income (loss) | - | - | - | (2,575) | (2,575) | |||||||||||||||
Total comprehensive income (loss) | - | - | (20,859) | (2,575) | (23,434) | |||||||||||||||
Acquisition of treasury shares | - | (5,490) | - | - | (5,490) | |||||||||||||||
Share-based remuneration expense | - | - | 957 | - | 957 | |||||||||||||||
As of March 31, 2020 | 24 | 808,687 | 79,611 | (4,083) | 884,239 | |||||||||||||||
[US$ thousands] | Share capital | Other paid in capital | Retained earnings | Foreign currency translation reserve | Total equity | |||||||||||||||
As of December 31, 2020 | 24 | 765,129 | 287,246 | 1,343 | 1,053,743 | |||||||||||||||
Net income | - | - | 639 | - | 639 | |||||||||||||||
Other comprehensive income | - | - | - | (1,316) | (1,316) | |||||||||||||||
Total comprehensive income | - | - | 639 | (1,316) | (677) | |||||||||||||||
Acquisition of treasury shares | - | (749) | - | - | (749) | |||||||||||||||
Share-based remuneration expense | - | - | 733 | - | 733 | |||||||||||||||
As of March 31, 2021 | 24 | 764,381 | 288,618 | 27 | 1,053,049 | |||||||||||||||
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
Three Months Ended March 31, | ||||||||
[US$ thousands] | 2020 | 2021 | ||||||
Cash flow from operating activities | ||||||||
Net income (loss) before income taxes | (24,816) | (189) | ||||||
Income taxes paid | (30) | (759) | ||||||
Depreciation and amortization | 4,739 | 5,037 | ||||||
Share of net loss (income) of associates and joint ventures | 664 | (145) | ||||||
Equity component of share-based payment expense | 957 | 733 | ||||||
Net finance income (expense) | 8,292 | (1,275) | ||||||
Change in inventories | 423 | 3 | ||||||
Change in trade and other receivables | 5,413 | 214 | ||||||
Change in loans to customers | 48,131 | (12) | ||||||
Change in trade and other payables | 9,100 | 6,816 | ||||||
Change in deferred revenue | 5,647 | 168 | ||||||
Change in prepayments | (9,076) | 3,162 | ||||||
Change in other liabilities | 6,761 | (6,725) | ||||||
Other | (4,783) | 248 | ||||||
Net cash flow from (used in) operating activities | 51,422 | 7,275 | ||||||
Cash flow from investment activities | ||||||||
Purchase of intangibles assets | (358) | - | ||||||
Purchase of equipment | (1,411) | (1,023) | ||||||
Acquisition of subsidiary, net of cash acquired | (4,882) | (9,008) | ||||||
Disbursement of short-term loans | (4,497) | - | ||||||
Repayment of short-term loans | 4,497 | - | ||||||
Deposit of collateral for loan facility | (1,000) | - | ||||||
Net sale (purchase) of listed equity instruments | (6,119) | 13,917 | ||||||
Development expenditure | (1,577) | (852) | ||||||
Interest income received | 145 | 6 | ||||||
Net cash flow from (used in) investing activities | (15,202) | 3,039 | ||||||
Cash flow from financing activities | ||||||||
Acquisition of treasury shares | (5,490) | (748) | ||||||
Proceeds from loans and borrowings | 7,795 | 1,147 | ||||||
Interests on loans and borrowings | (766) | (79) | ||||||
Repayment of loans and borrowings | (5,571) | - | ||||||
Payment of lease liabilities | (1,698) | (1,060) | ||||||
Net cash flow from (used in) financing activities | (5,731) | (740) | ||||||
Net change in cash and cash equivalents | 30,490 | 9,575 | ||||||
Cash and cash equivalents at beginning of period | 139,487 | 134,168 | ||||||
Net foreign exchange difference | (152) | (446) | ||||||
Cash and cash equivalents at end of period | 169,826 | 143,297 | ||||||
Financial details by business area | ||||||||||||
The tables below specify the contribution by each business area: | ||||||||||||
[US$ thousands] | Three Months Ended March 31, 2020 | |||||||||||
Business area | Browser and News | Other | Total | |||||||||
Revenue categories | ||||||||||||
Search | 19,664 | - | 19,664 | |||||||||
Advertising | 16,752 | - | 16,752 | |||||||||
Technology licensing and other revenue | - | 3,779 | 3,779 | |||||||||
Total revenue | 36,416 | 3,779 | 40,194 | |||||||||
Technology and platform fees | (547) | (547) | ||||||||||
Content cost | (1,075) | (1,075) | ||||||||||
Cost of inventory sold | - | (49) | (49) | |||||||||
Other cost of revenue (1) | (56) | (1,106) | (1,162) | |||||||||
Marketing and distribution expenses | (14,277) | (249) | (14,526) | |||||||||
Credit loss expense | (320) | (924) | (1,244) | |||||||||
Direct expenses | (16,275) | (2,328) | (18,603) | |||||||||
Contribution by business area | 20,141 | 1,451 | 21,593 | |||||||||
(1) Includes expenses presented separately in the Statement of Operations as part of personnel and other expenses, including audit, legal and other advisory services, that were included in the cost invoiced certain customers and previously reported as Cost of revenue. |
[US$ thousands] | Three Months Ended March 31, 2021 | |||||||||||
Business area | Browser and News | Other | Total | |||||||||
Revenue categories | ||||||||||||
Search | 26,725 | - | 26,725 | |||||||||
Advertising | 22,763 | 667 | 23,430 | |||||||||
Technology licensing and other revenue | - | 1,428 | 1,428 | |||||||||
Total revenue | 49,488 | 2,095 | 51,583 | |||||||||
Technology and platform fees | (719) | (153) | (873) | |||||||||
Content cost | (834) | (11) | (845) | |||||||||
Cost of inventory sold | (446) | (446) | ||||||||||
Marketing and distribution expenses | (23,165) | (192) | (23,357) | |||||||||
Credit loss expense | 46 | (32) | 14 | |||||||||
Direct expenses | (24,672) | (834) | (25,506) | |||||||||
Contribution by business area | 24,816 | 1,261 | 26,077 | |||||||||
Personnel expenses including share-based remuneration | ||||||||
The table below specifies the amounts of personnel expenses including share-based remuneration: | ||||||||
[US$ thousands] | Three Months Ended March 31, | |||||||
Personnel expenses including share-based remuneration | 2020 | 2021 | ||||||
Personnel expenses excluding share-based remuneration | 15,978 | 16,041 | ||||||
Share-based remuneration, including related social security costs | 475 | 1,054 | ||||||
Total | 16,453 | 17,096 | ||||||
Other expenses | ||||||||
The table below specifies the nature of other expenses: | ||||||||
[US$ thousands] | Three Months Ended March 31, | |||||||
Other expenses | 2020 | 2021 | ||||||
Hosting | 2,208 | 1,843 | ||||||
Audit, legal and other advisory services | 1,949 | 1,496 | ||||||
Software license fees | 407 | 414 | ||||||
Rent and other office expense | 602 | 866 | ||||||
Travel | 678 | 79 | ||||||
Other | 1,269 | 763 | ||||||
Total | 7,113 | 5,461 | ||||||
Non-IFRS financial measures | ||||||||
Three Months Ended March 31, | ||||||||
[US$ thousands, except per share and ADS amounts] | 2020 | 2021 | ||||||
Reconciliation of net income (loss) to adjusted EBITDA | ||||||||
Net income (loss) | (20,859) | 639 | ||||||
Add: Income tax expense (benefit) | 1,549 | (828) | ||||||
Add: Net finance expense (income) | 6,211 | (1,413) | ||||||
Add: Share of net loss (income) of associates and joint ventures | 664 | 145 | ||||||
Add: Change in fair value of preferred shares in associates | - | - | ||||||
Add: Depreciation and amortization | 4,657 | 5,037 | ||||||
Add: Share-based remuneration | 475 | 1,054 | ||||||
Add: Non-recurring expenses | 2,072 | - | ||||||
Less: Other income | - | (58) | ||||||
Less: Profit (loss) from discontinued operations | 4,892 | - | ||||||
Adjusted EBITDA | (338) | 4,576 | ||||||
Reconciliation of net income (loss) to adjusted net income | ||||||||
Net Income (loss) | (20,859) | 639 | ||||||
Add: Share-based remuneration | 475 | 1,054 | ||||||
Add: Amortization of acquired intangible assets | 1,337 | 1,571 | ||||||
Add: Amortization of Nanobank intangible assets(1) | - | 1,759 | ||||||
Add: Non-recurring expenses | 2,072 | - | ||||||
Income tax adjustment (2) | (188) | (416) | ||||||
Less: Profit (loss) from discontinued operations | 4,892 | - | ||||||
Adjusted net income | (12,271) | 4,607 | ||||||
Weighted average number of ordinary shares outstanding | ||||||||
Basic, millions | 238.29 | 230.25 | ||||||
Diluted, millions | 241.64 | 232.69 | ||||||
Adjusted net income (loss) per ordinary share | ||||||||
Basic, US$ | (0.05) | 0.02 | ||||||
Diluted, US$ | (0.05) | 0.02 | ||||||
Adjusted net income (loss) per ADS | ||||||||
Basic, US$ | (0.10) | 0.04 | ||||||
Diluted, US$ | (0.10) | 0.04 | ||||||
(1) The amortization of Nanobank intangible assets is included in the line "Share of net income (loss) of associates and joint ventures". |
(2) Reversal of tax benefit related to the social security cost component of share-based remuneration and deferred taxes on the amortization of acquired intangible assets. |
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SOURCE Opera Limited
