Opera Reports Record Second Quarter 2022 Results
Opera Limited (NASDAQ: OPRA) reported a robust Q2 2022, with revenue rising 29% year-over-year to $77.8 million, driven by strong product portfolio growth. Adjusted EBITDA margin reached 21%. The company announced a buyback of 1.3 million ADSs and raised its 2022 revenue guidance to $313-$319 million, expecting 26% growth. Despite a net loss of $5.8 million, the average revenue per user surged 46% to $0.94. Cash and marketable securities totaled $187 million, bolstering financial stability.
- Revenue grew 29% year-over-year to $77.8 million.
- Adjusted EBITDA margin improved to 21%.
- Company raised 2022 revenue guidance to $313-$319 million.
- Average revenue per user increased by 46% to $0.94.
- Repurchased 1.3 million ADSs.
- Net loss of $5.8 million compared to a net income of $44.3 million in Q2 2021.
- Adjusted net loss of $3.4 million in the quarter.
Revenue and adjusted EBITDA both exceeded prior guidance ranges
Q2 revenue grew
Company repurchased 1.3 million ADSs during the quarter
Company raises 2022 guidance, expecting
OSLO, Norway, Aug. 30, 2022 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's largest internet consumer brands with hundreds of millions of users worldwide, today announced its unaudited consolidated financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Financial Highlights
Three Months Ended | Year- | Six Months Ended | Year- | |||||||||||||||||||||
[US$ thousands, except for margins and per ADS amounts] | 2021 | 2022 | % | 2021 | 2022 | % | ||||||||||||||||||
Revenue | 60,161 | 77,834 | 29.4 | % | 111,744 | 149,417 | 33.7 | % | ||||||||||||||||
Net income (loss) | 44,287 | (5,836) | n.m. | 44,926 | (15,271) | n.m. | ||||||||||||||||||
Margin | 73.6 | % | (7.5) | % | 40.2 | % | (10.2) | % | ||||||||||||||||
Adjusted EBITDA (1) | (1,015) | 16,569 | n.m. | 3,561 | 23,918 | n.m. | ||||||||||||||||||
Margin | (1.7) | % | 21.3 | % | 3.2 | % | 16.0 | % | ||||||||||||||||
Adjusted net income (loss) (1) | 49,144 | (3,364) | n.m. | 53,751 | (9,726) | n.m. | ||||||||||||||||||
Margin | 81.7 | % | (4.3) | % | 48.1 | % | (6.5) | % | ||||||||||||||||
Diluted net income (loss) per ADS, US$ | 0.38 | (0.05) | n.m. | 0.39 | (0.13) | n.m. | ||||||||||||||||||
Diluted adjusted net income (loss) per ADS, US$ (1) | 0.42 | (0.03) | n.m. | 0.46 | (0.08) | n.m. |
(1) | Please see the separate section "About Non-IFRS Financial Measures" for the definitions of adjusted EBITDA and adjusted net income (loss). |
"Despite a difficult macroeconomic backdrop, we delivered record revenue and continue to grow average revenue per user through a combination of product and high-value market initiatives" said Co-CEO Lin Song.
"We are mindful that the current economic environment remains uncertain, impacted by both macroeconomic pressures and geopolitical tensions. Still, we see a lot of room for continued growth, and we combine prudence with a continued strong focus on our growth strategy," continued Mr. Song.
Second Quarter and Recent Business Highlights
- Core search and advertising revenue grew
31% year-over-year, driven by the strong ARPU trend of our browser and news user base, as well as leveraging our strong advertiser demand beyond our own inventory through our Opera Ads platform. - Opera's average monthly active user base was 327 million MAUs in the quarter; with a continued directional shift towards higher ARPU markets. User growth was the strongest in the Americas, this time led by North America up
31% and South America up4.1% , while we continue to focus investments in emerging markets more specifically towards users that we believe will be monetizable. - In the second quarter, each user on average generated a record
$0.94 of revenue on an annualized basis, up46% compared to the second quarter of 2021. - The Opera GX gaming browser had over 17 million monthly active users across PC and mobile in the second quarter, with the underlying growth being partially offset by seasonality. Annualized ARPU of the GX browser is more than three times higher than the corporate average.
- At the end of the second quarter our cash and marketable securities were
$187 million . Combined with$173 million of receivables from the sale of Nanobank and Star X, this adds to a total of$360 million . We also continue to hold our6.44% equity stake in OPay as an asset held for sale. - During the quarter, the company repurchased 1.26 million ADSs at an average price of
$5.30 , for a total spend of$6.7 million , leaving$39 million or nearly80% of our existing buyback authorization remaining.
Business Outlook
"Our core business continues to generate revenue at levels greater than anticipated, at the same time we are moderating certain of our expenses, resulting in higher than expected EBITDA margins," said CFO Frode Jacobsen. "Despite macroeconomic uncertainties, Opera is performing exceptionally well, and we feel confident in increasing our guidance for the year."
For the full year of 2022, Opera expects revenue of
For the third quarter of 2022, Opera expects revenue of
Other Updates
During the quarter, we collected the first installment of
In connection with the sale of our stake in Nanobank, we and the buyer have agreed to make certain modifications to the sales agreement. The purchase price will be paid in 16 quarterly installments with the final installment due in Q2 2026, offset by a
Opera has collected the first installment in full, of which
Second Quarter 2022 Consolidated Financial Results
All comparisons in this section are relative to the second quarter of 2021 unless otherwise stated.
Revenue increased
- Search revenue increased by
13% to$33.7 million driven in particular by the growth of our PC footprint in western markets. - Advertising revenue increased by
49% to$43.1 million , benefitting also from monetization growth within Opera News and our audience extension supported by the Opera Ads platform. - Technology licensing and other revenue was
$1.0 million .
Operating expenses decreased by
- Combined technology and platform fees, content cost and cost of inventory sold was
$11.8 million , or15% of revenue. Our audience extension carries inventory cost, but insignificant incremental expenses otherwise. - Personnel expenses, including share-based remuneration, were
$19.1 million , a3% increase. This expense consists of cash-based compensation expense of$17.6 million , a6% increase year-over-year, and share-based remuneration expense of$1.5 million . - Marketing and distribution expenses were
$25.3 million , a decrease of28% year-over-year, or26% sequentially versus the prior quarter and reflecting a prudent response to macroeconomic conditions. - Depreciation and amortization expenses were
$3.4 million , a33% decrease year-over-year but relatively stable versus the prior quarter. - All other operating expenses were
$7.0 million , a5% increase.
Operating profit was
Other items in the quarter include a finance expense of
Income tax expense was
Net loss was
Net loss per ADS was
Adjusted EBITDA was
Adjusted net loss was
Adjusted net loss per ADS was
We have posted Opera's unaudited financial historical results by quarter since 2019 at https://investor.opera.com.
Conference Call
Opera's management will host a conference call to discuss the second quarter 2022 financial results on Tuesday, August 30th at 8:00 am Eastern Time (EDT). Listeners may access the call by dialing the following numbers:
United States: +1 877-830-2597
China: +10-800-714-1507 or +10-800-140-1382
Hong Kong: +80-090-1494
Norway: +47 80-01-3780
United Kingdom: +44 0-808-101-1183
International: +1 785-424-1877
Confirmation Code: OPRAQ222
A live webcast of the conference call will be posted at https://investor.opera.com.
We will be tweeting highlights from our prepared remarks. Please follow along @InvestorOpera.
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 (loss), 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 equity-accounted investees, fair value loss (gain) from investments, depreciation and amortization, impairment of non-financial assets, impairment of equity-accounted investees, share-based remuneration, credit loss expense related to divested joint venture, non-recurring expenses, less other operating income and (profit) loss from discontinued operations.
We define adjusted net income (loss) as net income (loss) excluding share-based remuneration, amortization cost related to acquired intangible assets, amortization of Nanobank intangible assets, credit loss expense related to divested joint venture and other non-recurring expenses, and (profit) loss from discontinued operations, adjusted for the associated tax benefit related to such items.
We believe that adjusted EBITDA and adjusted net income (loss) 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," "may," "expect," "believe," "anticipate," "intend," "aim," "estimate," "intend," "seek," "plan," "potential," "continue," "ongoing," "target," "guidance," "is/are likely to," "future" and similar statements. Among other things, management's quotations and the Business outlook section contain forward-looking statements. The Company may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. 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 conflict in Ukraine and the COVID-19 pandemic, as well as resulting changes in consumer behaviors; the outcome of regulatory processes or litigation; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company's expectations regarding demand for and market acceptance of its 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, products and services and/or upgrade its existing technologies, products and services; 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 the Company has business. All information provided in this press release is as of the date hereof and is based on assumptions that the Company believes to be reasonable as of this date, and it 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 SEC, including its annual reports on Form 20-F.
About Opera
Opera is a global web innovator. Opera's browsers, gaming, Web3 and news products 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.
Learn more about Opera at www.investor.opera.com or on Twitter @InvestorOpera.
Unaudited Consolidated Statement of Operations | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
[US$ thousands, except per ADS and share amounts] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Revenue | 60,161 | 77,834 | 111,744 | 149,417 | ||||||||||||
Other operating income | 96 | 70 | 154 | 242 | ||||||||||||
Operating expenses: | ||||||||||||||||
Technology and platform fees | (1,112) | (1,064) | (1,984) | (2,284) | ||||||||||||
Content cost | (741) | (1,059) | (1,586) | (2,103) | ||||||||||||
Cost of inventory sold | (798) | (9,719) | (1,244) | (15,504) | ||||||||||||
Personnel expenses including share-based remuneration | (18,461) | (19,071) | (35,556) | (35,499) | ||||||||||||
Marketing and distribution expenses | (35,301) | (25,285) | (58,658) | (59,424) | ||||||||||||
Credit loss expense | (320) | (67) | (306) | (111) | ||||||||||||
Depreciation and amortization | (5,080) | (3,421) | (10,117) | (7,011) | ||||||||||||
Non-recurring expenses | - | (500) | - | (1,208) | ||||||||||||
Other operating expenses | (6,359) | (6,477) | (11,819) | (13,933) | ||||||||||||
Total operating expenses | (68,173) | (66,664) | (121,271) | (137,077) | ||||||||||||
Operating profit (loss) | (7,916) | 11,240 | (9,374) | 12,582 | ||||||||||||
Share of net loss of equity-accounted investees | (2,339) | - | (2,484) | (6) | ||||||||||||
Fair value gain on investments | 57,500 | - | 57,500 | - | ||||||||||||
Net finance income (expense): | ||||||||||||||||
Finance income | 16 | 2,282 | 1,733 | 2,437 | ||||||||||||
Finance expense | (3,548) | (15,341) | (3,991) | (25,288) | ||||||||||||
Net foreign exchange loss | (1,378) | (276) | (1,239) | (648) | ||||||||||||
Net finance expense | (4,911) | (13,334) | (3,498) | (23,498) | ||||||||||||
Profit (loss) before income taxes | 42,334 | (2,094) | 42,145 | (10,922) | ||||||||||||
Income tax (expense) benefit | 1,953 | (3,742) | 2,781 | (4,350) | ||||||||||||
Net income (loss) attributable to owners of the parent | 44,287 | (5,836) | 44,926 | (15,271) | ||||||||||||
Weighted-average number of ordinary shares outstanding: | ||||||||||||||||
Basic, millions (1) | 230.29 | 229.50 | 230.28 | 230.56 | ||||||||||||
Diluted, millions (2) | 231.51 | 229.50 | 231.54 | 230.56 | ||||||||||||
Earnings per ADS and per share for net income (loss): | ||||||||||||||||
Basic earnings per ADS, US$ | 0.38 | (0.05) | 0.39 | (0.13) | ||||||||||||
Diluted earnings per ADS, US$ | 0.38 | (0.05) | 0.39 | (0.13) | ||||||||||||
Basic earnings per share, US$ | 0.19 | (0.03) | 0.20 | (0.07) | ||||||||||||
Diluted earnings per share, US$ | 0.19 | (0.03) | 0.19 | (0.07) |
(1) | As of June 30, 2022, the total number of shares outstanding for Opera Limited was 228,240,012, equivalent to 114,120,006 ADSs. |
(2) | Includes the net dilutive impact of employee equity grants. For the three- and six-months periods ended June 30, 2022, diluted weighted-average number of ordinary shares outstanding exclude the effects of 1,916,775 ADSs that will be issued at the vesting of employee equity grants because these potential shares would have had anti-dilutive effects on the diluted net loss per ADS and per share. |
Unaudited Consolidated Statement of Comprehensive Income | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Net income (loss) | 44,287 | (5,836) | 44,926 | (15,271) | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Items that may be reclassified to the Statement of Operations in subsequent periods (net of tax): | ||||||||||||||||
Exchange differences on translation of foreign operations | 2,013 | (2,073) | 697 | (2,841) | ||||||||||||
Reclassification of share of other comprehensive income (loss) of equity-accounted investees | - | - | - | 708 | ||||||||||||
Other comprehensive income (loss) | 2,013 | (2,073) | 697 | (2,133) | ||||||||||||
Total comprehensive income (loss) attributable to owners of the parent | 46,300 | (7,908) | 45,623 | (17,403) |
Unaudited Consolidated Statement of Financial Position | ||||||||
As of December 31, | As of June 30, | |||||||
[US$ thousands] | 2021 | 2022 | ||||||
Assets: | ||||||||
Property and equipment | 12,263 | 11,344 | ||||||
Intangible assets | 103,627 | 103,170 | ||||||
Goodwill | 430,378 | 429,492 | ||||||
Non-current receivables from sale of investments | - | 99,707 | ||||||
Non-current investments and financial assets | 2,883 | 2,750 | ||||||
Deferred tax assets | 2,323 | 2,206 | ||||||
Total non-current assets | 551,474 | 648,669 | ||||||
Trade receivables | 43,864 | 48,790 | ||||||
Current receivables from sale of investments | - | 73,018 | ||||||
Other current receivables | 18,538 | 4,166 | ||||||
Prepayments | 9,192 | 7,635 | ||||||
Marketable securities | 78,135 | 47,472 | ||||||
Cash and cash equivalents | 102,876 | 139,400 | ||||||
Total cash, cash equivalents, and marketable securities | 181,011 | 186,872 | ||||||
Assets held for sale | 288,379 | 84,600 | ||||||
Total current assets | 540,986 | 405,081 | ||||||
Total assets | 1,092,460 | 1,053,750 | ||||||
Equity: | ||||||||
Share capital | 24 | 24 | ||||||
Other paid in capital | 764,381 | 754,513 | ||||||
Retained earnings | 249,155 | 237,370 | ||||||
Foreign currency translation reserve | (520) | (2,653) | ||||||
Total equity attributable to owners of the parent | 1,013,039 | 989,254 | ||||||
Liabilities: | ||||||||
Non-current lease liabilities and other loans | 2,081 | 811 | ||||||
Deferred tax liabilities | 6,532 | 7,876 | ||||||
Other non-current liabilities | 23 | 20 | ||||||
Total non-current liabilities | 8,635 | 8,708 | ||||||
Trade and other payables | 38,378 | 38,752 | ||||||
Current lease liabilities and other loans | 11,427 | 2,549 | ||||||
Income tax payable | 763 | 3,583 | ||||||
Deferred revenue | 1,092 | 1,868 | ||||||
Other current liabilities | 19,125 | 9,036 | ||||||
Total current liabilities | 70,786 | 55,788 | ||||||
Total liabilities | 79,421 | 64,496 | ||||||
Total equity and liabilities | 1,092,460 | 1,053,750 |
Unaudited Consolidated Statement of Changes in Equity | ||||||||||||||||||||
For the six months ended June 30, 2021: | ||||||||||||||||||||
[US$ thousands] | Share | Other paid | Retained | Foreign | Total equity | |||||||||||||||
As of December 31, 2020 | 24 | 765,129 | 283,334 | 408 | 1,048,895 | |||||||||||||||
Net income | - | - | 44,926 | - | 44,926 | |||||||||||||||
Other comprehensive income | - | - | - | 697 | 697 | |||||||||||||||
Total comprehensive income | - | - | 44,926 | 697 | 45,623 | |||||||||||||||
Acquisition of treasury shares | - | (749) | - | - | (749) | |||||||||||||||
Share-based remuneration | - | - | 2,450 | - | 2,450 | |||||||||||||||
As of June 30, 2021 | 24 | 764,381 | 330,710 | 1,105 | 1,096,217 |
For the six months ended June 30, 2022: | ||||||||||||||||||||
[US$ thousands] | Share | Other paid | Retained | Foreign | Total equity | |||||||||||||||
As of December 31, 2021 | 24 | 764,381 | 249,155 | (520) | 1,013,039 | |||||||||||||||
Net loss | - | - | (15,271) | - | (15,271) | |||||||||||||||
Other comprehensive loss | - | - | - | (2,133) | (2,133) | |||||||||||||||
Total comprehensive loss | - | - | (15,271) | (2,133) | (17,404) | |||||||||||||||
Acquisition of treasury shares | - | (9,868) | - | - | (9,868) | |||||||||||||||
Share-based remuneration | - | - | 3,487 | - | 3,487 | |||||||||||||||
As of June 30, 2022 | 24 | 754,513 | 237,371 | (2,653) | 989,254 |
Unaudited Consolidated Statement of Cash Flows | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Profit (loss) before income taxes | 42,334 | (2,094) | 42,145 | (10,922) | ||||||||||||
Adjustments to reconcile profit (loss) before income taxes to net cash flow: | ||||||||||||||||
Share-based payment expense | 1,717 | 1,520 | 2,450 | 3,487 | ||||||||||||
Depreciation and amortization | 5,080 | 3,421 | 10,117 | 7,011 | ||||||||||||
Share of net loss of equity-accounted investees | 2,628 | - | 2,484 | 6 | ||||||||||||
Fair value gain on investments | (57,500) | - | (57,500) | - | ||||||||||||
Net finance expense | 4,773 | 13,334 | 3,498 | 23,498 | ||||||||||||
Other adjustments | (1,630) | (265) | (1,382) | (747) | ||||||||||||
Changes in working capital: | ||||||||||||||||
Change in trade and other receivables | (4,384) | (6,029) | (4,170) | (5,318) | ||||||||||||
Change in prepayments | (2,315) | 41 | 847 | 550 | ||||||||||||
Change in inventories | (24) | (113) | (21) | (699) | ||||||||||||
Change in loans to customers | 17 | - | 5 | 2 | ||||||||||||
Change in trade and other payables | 10,779 | (9,164) | 17,595 | 374 | ||||||||||||
Change in deferred revenue | (63) | (727) | 105 | 776 | ||||||||||||
Change in other liabilities | 5,285 | 2,176 | (1,440) | (3,160) | ||||||||||||
Income taxes (paid) received | (448) | (477) | (1,207) | 230 | ||||||||||||
Net cash flow from operating activities | 6,252 | 1,624 | 13,527 | 15,088 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of equipment | 139 | (2,477) | (884) | (2,593) | ||||||||||||
Development expenditure | (1,216) | (2,081) | (2,068) | (2,923) | ||||||||||||
Acquisition of subsidiary, net of cash acquired | - | - | (9,008) | - | ||||||||||||
Proceeds from sale of shares in associates | 50,000 | 32,879 | 50,000 | 32,879 | ||||||||||||
Net sale (purchase) of listed equity instruments | (17,439) | 247 | (3,522) | 7,044 | ||||||||||||
Interest income received | 16 | 31 | 21 | 33 | ||||||||||||
Net cash flow from investing activities | 31,500 | 28,600 | 34,539 | 34,441 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Acquisition of treasury shares | - | (6,823) | (748) | (9,868) | ||||||||||||
Proceeds from loans and borrowings | (1,147) | - | - | - | ||||||||||||
Interests on loans and borrowings | (89) | (34) | (168) | (103) | ||||||||||||
Repayment of loans and borrowings | (348) | (96) | (348) | (184) | ||||||||||||
Payment of lease liabilities | (846) | (1,040) | (1,906) | (2,036) | ||||||||||||
Net cash flow used in financing activities | (2,431) | (7,992) | (3,170) | (12,192) | ||||||||||||
Net change in cash and cash equivalents | 35,322 | 22,231 | 44,896 | 37,338 | ||||||||||||
Cash and cash equivalents at beginning of period | 143,297 | 117,786 | 134,168 | 102,876 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (138) | (616) | (584) | (815) | ||||||||||||
Cash and cash equivalents at end of period | 178,481 | 139,400 | 178,481 | 139,400 |
Financial Details by Business Area | ||||||||||||
The tables below specify the contribution by each business area. | ||||||||||||
[US$ thousands] | Three Months Ended June 30, 2021 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 29,782 | - | 29,782 | |||||||||
Advertising | 28,935 | 7 | 28,942 | |||||||||
Technology licensing and other revenue | - | 1,436 | 1,436 | |||||||||
Total revenue | 58,717 | 1,443 | 60,161 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (930) | (182) | (1,112) | |||||||||
Content cost | (730) | (11) | (741) | |||||||||
Cost of inventory sold | (798) | - | (798) | |||||||||
Marketing and distribution expenses | (35,085) | (216) | (35,301) | |||||||||
Credit loss expense | (316) | (4) | (320) | |||||||||
Total direct expenses | (37,859) | (413) | (38,273) | |||||||||
Contribution by business area | 20,858 | 1,030 | 21,888 |
[US$ thousands] | Three Months Ended June 30, 2022 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 33,734 | - | 33,734 | |||||||||
Advertising | 43,077 | 7 | 43,085 | |||||||||
Technology licensing and other revenue | 298 | 718 | 1,016 | |||||||||
Total revenue | 77,109 | 725 | 77,834 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (1,064) | - | (1,064) | |||||||||
Content cost | (1,059) | - | (1,059) | |||||||||
Cost of inventory sold | (9,719) | - | (9,719) | |||||||||
Marketing and distribution expenses | (25,196) | (89) | (25,285) | |||||||||
Credit loss expense | (67) | (1) | (67) | |||||||||
Total direct expenses | (37,105) | (90) | (37,195) | |||||||||
Contribution by business area | 40,003 | 636 | 40,639 |
[US$ thousands] | Six Months Ended June 30, 2021 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 56,507 | - | 56,507 | |||||||||
Advertising | 52,340 | 32 | 52,372 | |||||||||
Technology licensing and other revenue | - | 2,864 | 2,864 | |||||||||
Total revenue | 108,847 | 2,897 | 111,744 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (1,649) | (335) | (1,984) | |||||||||
Content cost | (1,564) | (22) | (1,586) | |||||||||
Cost of inventory sold | (1,244) | - | (1,244) | |||||||||
Marketing and distribution expenses | (58,250) | (408) | (58,658) | |||||||||
Credit loss expense | (270) | (36) | (306) | |||||||||
Total direct expenses | (62,978) | (801) | (63,779) | |||||||||
Contribution by business area | 45,869 | 2,096 | 47,965 |
[US$ thousands] | Six Months Ended June 30, 2022 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 65,760 | - | 65,760 | |||||||||
Advertising | 81,521 | 14 | 81,535 | |||||||||
Technology licensing and other revenue | 646 | 1,476 | 2,122 | |||||||||
Total revenue | 147,927 | 1,490 | 149,417 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (2,284) | - | (2,284) | |||||||||
Content cost | (2,103) | - | (2,103) | |||||||||
Cost of inventory sold | (15,504) | - | (15,504) | |||||||||
Marketing and distribution expenses | (59,238) | (187) | (59,424) | |||||||||
Credit loss expense | (114) | 3 | (111) | |||||||||
Total direct expenses | (79,242) | (184) | (79,426) | |||||||||
Contribution by business area | 68,685 | 1,306 | 69,991 |
Personnel Expenses Including Share-based Remuneration | ||||||||||||||||
The table below specifies the amounts of personnel expenses including share-based remuneration. | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Personnel expenses, excluding share-based remuneration | 16,544 | 17,593 | 32,585 | 32,140 | ||||||||||||
Share-based remuneration, including related social security costs | 1,917 | 1,477 | 2,971 | 3,359 | ||||||||||||
Total personnel expenses including share-based remuneration | 18,461 | 19,071 | 35,556 | 35,499 |
Other Operating Expenses | ||||||||||||||||
The table below specifies the nature of other operating expenses. | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Hosting | 1,910 | 2,288 | 3,753 | 4,526 | ||||||||||||
Audit, legal and other advisory services | 2,447 | 1,489 | 3,943 | 4,491 | ||||||||||||
Software license fees | 475 | 494 | 889 | 964 | ||||||||||||
Rent and other office expense | 758 | 1,008 | 1,624 | 1,891 | ||||||||||||
Travel | 109 | 422 | 188 | 572 | ||||||||||||
Other | 660 | 776 | 1,423 | 1,490 | ||||||||||||
Total other operating expenses | 6,359 | 6,477 | 11,819 | 13,933 |
Non-IFRS Financial Measures | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
[US$ thousands, except per ADS and share amounts] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Reconciliation of net income (loss) to adjusted EBITDA: | ||||||||||||||||
Net income (loss) | 44,287 | (5,836) | 44,926 | (15,271) | ||||||||||||
Add (deduct): | ||||||||||||||||
Income tax expense (benefit) | (1,953) | 3,742 | (2,781) | 4,350 | ||||||||||||
Net finance expense | 4,911 | 13,334 | 3,498 | 23,498 | ||||||||||||
Share of net loss of equity-accounted investees | 2,339 | - | 2,484 | 6 | ||||||||||||
Depreciation and amortization | 5,080 | 3,421 | 10,117 | 7,011 | ||||||||||||
Share-based remuneration | 1,917 | 1,477 | 2,971 | 3,359 | ||||||||||||
Non-recurring expenses | - | 500 | - | 1,208 | ||||||||||||
Fair value gain on investments | (57,500) | - | (57,500) | - | ||||||||||||
Other operating income | (96) | (70) | (154) | (242) | ||||||||||||
Adjusted EBITDA | (1,015) | 16,569 | 3,561 | 23,918 | ||||||||||||
Reconciliation of net income (loss) to adjusted net income (loss): | ||||||||||||||||
Net Income (loss) | 44,287 | (5,836) | 44,926 | (15,271) | ||||||||||||
Add (deduct): | ||||||||||||||||
Share-based remuneration | 1,917 | 1,477 | 2,971 | 3,359 | ||||||||||||
Amortization of acquired intangible assets | 1,571 | 645 | 3,142 | 1,290 | ||||||||||||
Amortization of Nanobank intangible assets (1) | 1,759 | - | 3,518 | - | ||||||||||||
Non-recurring expenses | - | 500 | - | 1,208 | ||||||||||||
Income tax adjustment (2) | (389) | (151) | (805) | (312) | ||||||||||||
Adjusted net income (loss) | 49,144 | (3,364) | 53,751 | (9,726) | ||||||||||||
Adjusted net income (loss) per ADS and per share: | ||||||||||||||||
Basic adjusted net income (loss) per ADS, US$ | 0.43 | (0.03) | 0.47 | (0.08) | ||||||||||||
Diluted adjusted net income (loss) per ADS, US$ | 0.42 | (0.03) | 0.46 | (0.08) | ||||||||||||
Basic adjusted net income (loss) per share, US$ | 0.21 | (0.01) | 0.23 | (0.04) | ||||||||||||
Diluted adjusted net income (loss) per share, US$ | 0.21 | (0.01) | 0.23 | (0.04) |
1) | The amortization of Nanobank intangible assets was included in the line "Share of net income (loss) of equity-accounted investees". |
(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
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