Opera Reports Record Third Quarter 2022 Results
Opera Limited (NASDAQ: OPRA) reported a strong Q3 2022, with revenues reaching $85.3 million, a 28% year-over-year increase, and an adjusted EBITDA margin of 25%. The company generated significant gains from its gaming browser GX, contributing to high ARPU in the Americas and Europe. Opera announced a major repurchase of 23.4 million ADS equivalents and raised its 2022 revenue guidance to $323-326 million. Despite these successes, net income fell 60% to $9.4 million. The company maintains a strong cash position of $201 million.
- Q3 revenue increased by 28% year-over-year to $85.3 million.
- Adjusted EBITDA margin rose to 25% from 12.3% year-over-year.
- Core search and advertising revenue grew by 29% year-over-year.
- Major share repurchase of 23.4 million ADS equivalents announced.
- Increased 2022 revenue guidance to $323-326 million.
- Net income decreased by 60.1% to $9.4 million compared to Q3 2021.
- Adjusted net income fell 60.6% to $11.8 million.
Revenue and adjusted EBITDA both exceeded prior guidance ranges, with gaming browser GX key driver of high ARPU users in the Americas and Europe
Q3 revenue grew
Company announced a major repurchase of 23.4 million ADS equivalents that closed in October, in addition to 0.9 million ADSs repurchased in the market during Q3
Company raises 2022 guidance, expecting
OSLO, Norway, Oct. 27, 2022 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's major browser developers and a leading internet consumer brand, today announced its unaudited consolidated financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights
Three Months | Year- | Nine Months | Year- | |||||||||||||||||||||
[US$ thousands, except for margins and per ADS amounts] | 2021 | 2022 | % Change | 2021 | 2022 | % Change | ||||||||||||||||||
Revenue | 66,620 | 85,347 | 28.1 | % | 178,365 | 234,765 | 31.6 | % | ||||||||||||||||
Net income (loss) | 23,500 | 9,384 | (60.1) | % | 68,426 | (5,887) | n.m. | |||||||||||||||||
Margin | 35.3 | % | 11.0 | % | 38.4 | % | (2.5) | % | ||||||||||||||||
Adjusted EBITDA (1) | 8,197 | 21,382 | 160.9 | % | 11,759 | 45,300 | 285.2 | % | ||||||||||||||||
Margin | 12.3 | % | 25.1 | % | 6.6 | % | 19.3 | % | ||||||||||||||||
Adjusted net income (1) | 29,816 | 11,759 | (60.6) | % | 83,567 | 2,033 | (97.6) | % | ||||||||||||||||
Margin | 44.8 | % | 13.8 | % | 46.9 | % | 0.9 | % | ||||||||||||||||
Diluted net income (loss) per ADS, US$ | 0.20 | 0.08 | (59.3) | % | 0.59 | (0.05) | n.m. | |||||||||||||||||
Diluted adjusted net income per ADS, US$ (1) | 0.26 | 0.10 | (59.8) | % | 0.72 | 0.02 | (97.5) | % |
(1) Please see the separate section "About non-IFRS financial measures" for the definitions of adjusted EBITDA and adjusted net income. |
"Once again, Opera was able to deliver record revenue at a profitability level well ahead of our expectations, by remaining focused on operational excellence despite continuing macro headwinds," said Co-CEO Song Lin.
"While the macroeconomic outlook remains highly uncertain, we are pleased to yet again observe that our strategic choice to focus product innovation around high-ARPU users in the US and in Europe continues to drive strong underlying performance. The substantial revenue growth and profitability expansion we report today exceed our earlier increased guidance and demonstrate the growth potential of our core strategy even in turbulent times. Finally, I would like to add how excited I am to join the Board of Directors and continue to shape the direction of our company," continued Mr. Song.
Third Quarter and Recent Business Highlights
- Core search and advertising revenue grew
29% year-over-year, driven by the ongoing ARPU trend of our browser and news user base as well as our Opera Ads platform. - Opera's average monthly active user base was 321 million MAUs in the quarter, with underlying growth continuing to be strongest in the Americas. As our focus on monetizable users in emerging markets mature, we are starting to see signs of user base stabilization in these regions at significantly higher ARPU levels.
- In the third quarter, each user on average generated a record
$1.06 of revenue on an annualized basis, exceeding the one-dollar milestone following41% growth versus the third quarter of 2021. - The Opera GX gaming browser had over 18 million monthly active users across PC and mobile in the third quarter, with the underlying growth being partially offset by seasonality.
- Towards the end of the quarter, Opera announced that it had reached an agreement with its pre-IPO shareholder, 360, to acquire its 23.4 million ADS equivalents or
20.6% stake in Opera for$128.6 million , financed by our strong balance sheet. Subsequent to the end of the quarter the transaction closed, and 360 is no longer a shareholder in Opera. - During the quarter, the company conducted open market repurchases of 0.9 million ADSs at an average price of
$4.84 , for a total spend of$4.4 million , leaving$35 million or nearly70% of our existing buyback authorization remaining. Net of the transaction with 360 and repurchases to date in Q4, the total number of ADS equivalents outstanding is now 89,693,168. - At the end of the third quarter our cash and marketable securities were
$201 million . Combined with present value receivables of$168 million from the sale of Nanobank and Star X, this adds to a total of$369 million , or$241 million net of the subsequent payment for 360's stake. We also continue to hold our6.44% equity stake in OPay as an asset held for sale.
Business Outlook
"Both our search and advertising revenues supported our continued strong growth trajectory driven by our focus on high value users and broadened monetization in all regions. Revenue outperformance combined with lower-than-expected marketing expenses resulted in higher-than-expected EBITDA," said CFO Frode Jacobsen. "On top of our strong operating performance, we remain committed to returning capital to shareholders. In total Opera has bought back more than
For the full year of 2022, Opera expects revenue of
For the fourth quarter of 2022, Opera expects revenue of
Third Quarter 2022 Consolidated Financial Results
All comparisons in this section are relative to the third quarter of 2021 unless otherwise stated.
Revenue increased
- Search revenue increased by
15% to$35.4 million , driven in by the growth of our PC footprint in western markets, particularly in North America. - Advertising revenue increased by
41% to$49.1 million , benefiting from the audience extension supported by our Opera Ads platform in addition to the growth in our western PC footprint. - Technology licensing and other revenue was
$0.8 million .
Operating expenses increased by
- Combined technology and platform fees, content cost and cost of inventory sold was
$15.7 million , or18% of revenue. - Personnel expenses, including share-based remuneration, were
$18.0 million , a15% decrease. This expense consists of cash-based compensation expense of$16.1 million , a7% decrease year-over-year mainly due to strengthening of the US dollar, and share-based remuneration expense of$1.8 million . - Marketing and distribution expenses were
$26.0 million , a decrease of20% year-over-year, or a3% sequential increase versus the prior quarter. - Depreciation and amortization expenses were
$3.4 million , a30% decrease year-over-year but stable versus the prior quarter. - All other operating expenses were
$6.1 million , a10% increase year-over-year but a14% decrease versus the prior quarter.
Operating profit was
Net finance expense was
Income tax expense 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 Opera's unaudited financial results by quarter since 2019 at https://investor.opera.com.
Conference Call
Opera's management will host a conference call to discuss the third quarter 2022 financial results on Thursday, October 27th at 8:00 am Eastern Time (EDT). Listeners may access the call by dialing the following numbers:
United States: +1 877-830-2596
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: +1 785-424-1744
Confirmation Code: OPRAQ322
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 on Twitter @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's 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 and the industry in which it operates. 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 market (OPRA). Download the Opera browser from www.opera.com.
Learn more about Opera at https://investor.opera.com or on Twitter @InvestorOpera.
Unaudited Consolidated Statement of Operations
Three Months Ended | Nine Months Ended | |||||||||||||||
[US$ thousands, except per ADS and share amounts] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Revenue | 66,620 | 85,347 | 178,365 | 234,765 | ||||||||||||
Other operating income | 64 | 80 | 218 | 322 | ||||||||||||
Operating expenses: | ||||||||||||||||
Technology and platform fees | (1,191) | (1,037) | (3,175) | (3,321) | ||||||||||||
Content cost | (926) | (841) | (2,512) | (2,944) | ||||||||||||
Cost of inventory sold | (1,220) | (13,868) | (2,464) | (29,372) | ||||||||||||
Personnel expenses including share-based remuneration | (21,226) | (17,994) | (56,782) | (53,493) | ||||||||||||
Marketing and distribution expenses | (32,317) | (26,005) | (90,975) | (85,429) | ||||||||||||
Credit loss expense | (79) | (299) | (385) | (410) | ||||||||||||
Depreciation and amortization | (4,928) | (3,438) | (15,045) | (10,449) | ||||||||||||
Non-recurring expenses | - | - | - | (1,208) | ||||||||||||
Other operating expenses | (5,417) | (5,770) | (17,236) | (19,703) | ||||||||||||
Total operating expenses | (67,303) | (69,252) | (188,574) | (206,329) | ||||||||||||
Operating profit (loss) | (618) | 16,175 | (9,991) | 28,758 | ||||||||||||
Share of net loss of equity-accounted investees | (2,412) | - | (4,896) | (6) | ||||||||||||
Fair value gain on investments | 27,960 | - | 85,460 | - | ||||||||||||
Net finance income (expense): | ||||||||||||||||
Finance income | 4 | 2,545 | 26 | 4,982 | ||||||||||||
Finance expense | (779) | (4,747) | (3,058) | (30,035) | ||||||||||||
Net foreign exchange gain (loss) | (267) | 578 | (1,506) | (70) | ||||||||||||
Net finance expense | (1,042) | (1,624) | (4,539) | (25,122) | ||||||||||||
Profit before income taxes | 23,888 | 14,551 | 66,034 | 3,629 | ||||||||||||
Income tax (expense) benefit | (388) | (5,167) | 2,392 | (9,516) | ||||||||||||
Net income (loss) attributable to owners of the parent | 23,500 | 9,384 | 68,426 | (5,887) | ||||||||||||
Weighted-average number of ordinary shares outstanding: | ||||||||||||||||
Basic, millions (1) | 230.29 | 227.35 | 230.28 | 229.48 | ||||||||||||
Diluted, millions (2) | 232.26 | 227.94 | 232.52 | 229.48 | ||||||||||||
Earnings per ADS and per share for net income (loss): | ||||||||||||||||
Basic earnings per ADS, US$ | 0.20 | 0.08 | 0.59 | (0.05) | ||||||||||||
Diluted earnings per ADS, US$ | 0.20 | 0.08 | 0.59 | (0.05) | ||||||||||||
Basic earnings per share, US$ | 0.10 | 0.04 | 0.30 | (0.03) | ||||||||||||
Diluted earnings per share, US$ | 0.10 | 0.04 | 0.29 | (0.03) |
(1) As of September 30, 2022, the total number of shares outstanding for Opera Limited was 226,436,540, equivalent to 113,218,270 ADSs. |
(2) Includes the net dilutive impact of employee equity grants. For the nine-month period ended September 30, 2022, diluted weighted-average number of ordinary shares outstanding excludes the effect of 1,891,275 ADSs that will be issued at the vesting of employee equity grants because these potential shares would have had an anti-dilutive effect on the diluted net loss per ADS and per share. |
Unaudited Consolidated Statement of Comprehensive Income
Three Months Ended | Nine Months Ended | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Net income (loss) | 23,500 | 9,384 | 68,426 | (5,887) | ||||||||||||
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 | (1,415) | (2,412) | (719) | (5,253) | ||||||||||||
Reclassification of share of other comprehensive income (loss) of equity-accounted investees | - | - | - | 708 | ||||||||||||
Other comprehensive loss | (1,415) | (2,412) | (719) | (4,545) | ||||||||||||
Total comprehensive income (loss) attributable to owners of the parent | 22,085 | 6,973 | 67,708 | (10,431) | ||||||||||||
Unaudited Consolidated Statement of Financial Position
As of | As of | |||||||
[US$ thousands] | 2021 | 2022 | ||||||
Assets: | ||||||||
Property and equipment | 12,263 | 11,334 | ||||||
Intangible assets | 103,627 | 103,415 | ||||||
Goodwill | 430,378 | 428,833 | ||||||
Non-current receivables from sale of investments | - | 136,142 | ||||||
Non-current investments and financial assets | 2,883 | 2,620 | ||||||
Deferred tax assets | 2,323 | 2,068 | ||||||
Total non-current assets | 551,475 | 684,411 | ||||||
Trade receivables | 43,864 | 54,441 | ||||||
Current receivables from sale of investments | - | 31,955 | ||||||
Other current receivables | 18,538 | 8,301 | ||||||
Prepayments | 9,192 | 7,218 | ||||||
Marketable securities | 78,135 | 35,273 | ||||||
Cash and cash equivalents | 102,876 | 166,071 | ||||||
Total cash, cash equivalents, and marketable securities | 181,011 | 201,344 | ||||||
Assets held for sale | 288,379 | 84,600 | ||||||
Total current assets | 540,986 | 387,859 | ||||||
Total assets | 1,092,460 | 1,072,270 | ||||||
Equity: | ||||||||
Share capital | 24 | 24 | ||||||
Other paid in capital | 764,381 | 750,134 | ||||||
Retained earnings | 249,155 | 248,495 | ||||||
Foreign currency translation reserve | (520) | (5,065) | ||||||
Total equity attributable to owners of the parent | 1,013,039 | 993,588 | ||||||
Liabilities: | ||||||||
Non-current lease liabilities and other loans | 2,081 | 556 | ||||||
Deferred tax liabilities | 6,532 | 8,977 | ||||||
Other non-current liabilities | 23 | 29 | ||||||
Total non-current liabilities | 8,635 | 9,562 | ||||||
Trade and other payables | 38,378 | 41,012 | ||||||
Current lease liabilities and other loans | 11,427 | 3,378 | ||||||
Income tax payable | 763 | 7,076 | ||||||
Deferred revenue | 1,092 | 1,509 | ||||||
Other current liabilities | 19,125 | 16,145 | ||||||
Total current liabilities | 70,786 | 69,120 | ||||||
Total liabilities | 79,421 | 78,683 | ||||||
Total equity and liabilities | 1,092,460 | 1,072,270 | ||||||
Unaudited Consolidated Statement of Changes in Equity
For the nine months ended September 30, 2021:
[US$ thousands] | Share | Other | Retained | Foreign | Total | |||||||||||||||
As of December 31, 2020 | 24 | 765,129 | 283,334 | 408 | 1,048,895 | |||||||||||||||
Net income | - | - | 68,426 | - | 68,426 | |||||||||||||||
Other comprehensive loss | - | - | - | (719) | (719) | |||||||||||||||
Total comprehensive income (loss) | - | - | 68,426 | (719) | 67,707 | |||||||||||||||
Acquisition of treasury shares | - | (749) | - | - | (749) | |||||||||||||||
Share-based remuneration | - | - | 6,114 | - | 6,114 | |||||||||||||||
As of September 30, 2021 | 24 | 764,381 | 357,873 | (311) | 1,121,967 |
For the nine months ended September 30, 2022:
[US$ thousands] | Share | Other | Retained | Foreign | Total | |||||||||||||||
As of December 31, 2021 | 24 | 764,381 | 249,155 | (520) | 1,013,039 | |||||||||||||||
Net loss | - | - | (5,887) | - | (5,887) | |||||||||||||||
Other comprehensive loss | - | - | - | (4,545) | (4,545) | |||||||||||||||
Total comprehensive loss | - | - | (5,887) | (4,545) | (10,432) | |||||||||||||||
Acquisition of treasury shares | - | (14,247) | - | - | (14,247) | |||||||||||||||
Share-based remuneration | - | - | 5,227 | - | 5,227 | |||||||||||||||
As of September 30, 2022 | 24 | 750,134 | 248,495 | (5,065) | 993,588 | |||||||||||||||
Unaudited Consolidated Statement of Cash Flows
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Profit before income taxes | 23,888 | 14,551 | 66,034 | 3,629 | ||||||||||||
Adjustments to reconcile profit (loss) before income taxes to net cash flow: | ||||||||||||||||
Share-based payment expense | 3,663 | 1,740 | 6,114 | 5,227 | ||||||||||||
Depreciation and amortization | 4,928 | 3,438 | 15,045 | 10,449 | ||||||||||||
Share of net loss of equity-accounted investees | 2,412 | - | 4,896 | 6 | ||||||||||||
Fair value gain on investments | (27,960) | - | (85,460) | - | ||||||||||||
Net finance expense | 1,042 | 1,624 | 4,539 | 25,122 | ||||||||||||
Other adjustments | 265 | (739) | (1,117) | (1,486) | ||||||||||||
Changes in working capital: | ||||||||||||||||
Change in trade and other receivables | (3,754) | (4,961) | (7,923) | (10,278) | ||||||||||||
Change in prepayments | (2,389) | 416 | (1,542) | 967 | ||||||||||||
Change in inventories | 22 | (888) | - | (1,586) | ||||||||||||
Change in loans to customers | 9 | - | 14 | - | ||||||||||||
Change in trade and other payables | (6,458) | 2,260 | 11,137 | 2,634 | ||||||||||||
Change in deferred revenue | 138 | (359) | 243 | 417 | ||||||||||||
Change in other liabilities | 892 | 1,048 | (548) | (2,112) | ||||||||||||
Income taxes (paid) received | (134) | (97) | (1,341) | 133 | ||||||||||||
Net cash flow from (used in) operating activities | (3,436) | 18,032 | 10,091 | 33,120 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of equipment | (100) | (165) | (984) | (2,758) | ||||||||||||
Development expenditure | (1,292) | (1,988) | (3,360) | (4,911) | ||||||||||||
Acquisition of subsidiary, net of cash acquired | - | - | (9,008) | - | ||||||||||||
Proceeds from sale of shares in former associates | - | 4,000 | 50,000 | 36,879 | ||||||||||||
Net sale (purchase) of listed equity instruments | (81,313) | 12,191 | (84,835) | 19,235 | ||||||||||||
Interest income received | - | 765 | 21 | 799 | ||||||||||||
Net cash flow from (used in) investing activities | (82,705) | 14,804 | (48,166) | 49,245 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Acquisition of treasury shares | (1) | (4,379) | (749) | (14,247) | ||||||||||||
Interests on loans and borrowings | (75) | (42) | (243) | (145) | ||||||||||||
Repayment of loans and borrowings | (63) | (124) | (411) | (308) | ||||||||||||
Payment of lease liabilities | (1,878) | (848) | (3,784) | (2,884) | ||||||||||||
Net cash flow used in financing activities | (2,018) | (5,393) | (5,188) | (17,584) | ||||||||||||
Net change in cash and cash equivalents | (88,158) | 27,442 | (43,263) | 64,781 | ||||||||||||
Cash and cash equivalents at beginning of period | 178,481 | 139,400 | 134,168 | 102,876 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (358) | (771) | (942) | (1,586) | ||||||||||||
Cash and cash equivalents at end of period | 89,964 | 166,071 | 89,964 | 166,071 | ||||||||||||
Financial Details by Business Area
The tables below specify the contribution by each business area.
[US$ thousands] | Three Months Ended September 30, 2021 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 30,703 | - | 30,703 | |||||||||
Advertising | 34,863 | 9 | 34,872 | |||||||||
Technology licensing and other revenue | - | 1,045 | 1,045 | |||||||||
Total revenue | 65,566 | 1,054 | 66,620 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (986) | (205) | (1,191) | |||||||||
Content cost | (926) | - | (926) | |||||||||
Cost of inventory sold | (1,220) | - | (1,220) | |||||||||
Marketing and distribution expenses | (31,991) | (326) | (32,317) | |||||||||
Credit loss expense | (79) | - | (79) | |||||||||
Total direct expenses | (35,201) | (531) | (35,732) | |||||||||
Contribution by business area | 30,365 | 523 | 30,888 |
[US$ thousands] | Three Months Ended September 30, 2022 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 35,368 | - | 35,368 | |||||||||
Advertising | 49,138 | 7 | 49,145 | |||||||||
Technology licensing and other revenue | 128 | 707 | 834 | |||||||||
Total revenue | 84,634 | 714 | 85,347 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (1,037) | - | (1,037) | |||||||||
Content cost | (841) | - | (841) | |||||||||
Cost of inventory sold | (13,868) | - | (13,868) | |||||||||
Marketing and distribution expenses | (25,877) | (128) | (26,005) | |||||||||
Credit loss expense | (291) | (8) | (299) | |||||||||
Total direct expenses | (41,914) | (136) | (42,050) | |||||||||
Contribution by business area | 42,719 | 578 | 43,297 |
[US$ thousands] | Nine Months Ended September 30, 2021 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 87,210 | - | 87,210 | |||||||||
Advertising | 87,203 | 41 | 87,244 | |||||||||
Technology licensing and other revenue | - | 3,909 | 3,909 | |||||||||
Total revenue | 174,413 | 3,950 | 178,365 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (2,635) | (539) | (3,175) | |||||||||
Content cost | (2,490) | (22) | (2,512) | |||||||||
Cost of inventory sold | (2,464) | - | (2,464) | |||||||||
Marketing and distribution expenses | (90,241) | (734) | (90,975) | |||||||||
Credit loss expense | (349) | (36) | (385) | |||||||||
Total direct expenses | (98,179) | (1,332) | (99,511) | |||||||||
Contribution by business area | 76,234 | 2,618 | 78,853 |
[US$ thousands] | Nine Months Ended September 30, 2022 | |||||||||||
Business area | Browser and | Other | Total | |||||||||
Revenue categories: | ||||||||||||
Search | 101,128 | - | 101,128 | |||||||||
Advertising | 130,659 | 22 | 130,680 | |||||||||
Technology licensing and other revenue | 773 | 2,183 | 2,956 | |||||||||
Total revenue | 232,561 | 2,204 | 234,765 | |||||||||
Direct expenses: | ||||||||||||
Technology and platform fees | (3,320) | - | (3,321) | |||||||||
Content cost | (2,944) | - | (2,944) | |||||||||
Cost of inventory sold | (29,372) | - | (29,372) | |||||||||
Marketing and distribution expenses | (85,115) | (314) | (85,429) | |||||||||
Credit loss expense | (405) | (5) | (410) | |||||||||
Total direct expenses | (121,157) | (320) | (121,477) | |||||||||
Contribution by business area | 111,404 | 1,884 | 113,288 | |||||||||
Personnel Expenses Including Share-based Remuneration
The table below specifies the amounts of personnel expenses including share-based remuneration.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Personnel expenses, excluding share-based remuneration | 17,274 | 16,146 | 49,860 | 48,286 | ||||||||||||
Share-based remuneration, including related social security costs | 3,952 | 1,848 | 6,923 | 5,207 | ||||||||||||
Total personnel expenses including share-based remuneration | 21,226 | 17,994 | 56,782 | 53,493 | ||||||||||||
Other Operating Expenses
The table below specifies the nature of other operating expenses.
Three Months Ended | Nine Months Ended | |||||||||||||||
[US$ thousands] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Hosting | 1,960 | 2,343 | 5,713 | 6,869 | ||||||||||||
Audit, legal and other advisory services | 1,286 | 899 | 5,228 | 5,390 | ||||||||||||
Software license fees | 442 | 578 | 1,331 | 1,542 | ||||||||||||
Rent and other office expense | 743 | 774 | 2,367 | 2,665 | ||||||||||||
Travel | 131 | 477 | 319 | 1,049 | ||||||||||||
Other | 856 | 698 | 2,279 | 2,188 | ||||||||||||
Total other operating expenses | 5,417 | 5,770 | 17,236 | 19,703 | ||||||||||||
Non-IFRS Financial Measures
Three Months Ended | Nine Months Ended | |||||||||||||||
[US$ thousands, except per ADS and share amounts] | 2021 | 2022 | 2021 | 2022 | ||||||||||||
Reconciliation of net income (loss) to adjusted EBITDA | ||||||||||||||||
Net income (loss) | 23,500 | 9,384 | 68,426 | (5,887) | ||||||||||||
Add (deduct): | ||||||||||||||||
Income tax expense (benefit) | 388 | 5,167 | (2,392) | 9,516 | ||||||||||||
Net finance expense | 1,042 | 1,624 | 4,539 | 25,122 | ||||||||||||
Share of net loss of equity-accounted investees | 2,412 | - | 4,896 | 6 | ||||||||||||
Depreciation and amortization | 4,928 | 3,438 | 15,045 | 10,449 | ||||||||||||
Share-based remuneration | 3,952 | 1,848 | 6,923 | 5,207 | ||||||||||||
Non-recurring expenses | - | - | - | 1,208 | ||||||||||||
Fair value gain on investments | (27,960) | - | (85,460) | - | ||||||||||||
Other operating income | (64) | (80) | (218) | (322) | ||||||||||||
Adjusted EBITDA | 8,197 | 21,382 | 11,759 | 45,300 | ||||||||||||
Reconciliation of net income (loss) to adjusted net income | ||||||||||||||||
Net Income (loss) | 23,500 | 9,384 | 68,426 | (5,887) | ||||||||||||
Add (deduct): | ||||||||||||||||
Share-based remuneration | 3,952 | 1,848 | 6,923 | 5,207 | ||||||||||||
Amortization of acquired intangible assets | 857 | 645 | 3,999 | 1,935 | ||||||||||||
Amortization of Nanobank intangible assets (1) | 1,759 | - | 5,277 | - | ||||||||||||
Non-recurring expenses | - | - | - | 1,208 | ||||||||||||
Income tax adjustment (2) | (252) | (118) | (1,057) | (430) | ||||||||||||
Adjusted net income | 29,816 | 11,759 | 83,567 | 2,033 | ||||||||||||
Adjusted net income per ADS and per share: | ||||||||||||||||
Basic adjusted net income per ADS, US$ | 0.26 | 0.10 | 0.73 | 0.02 | ||||||||||||
Diluted adjusted net income per ADS, US$ | 0.26 | 0.10 | 0.72 | 0.02 | ||||||||||||
Basic adjusted net income per share, US$ | 0.13 | 0.05 | 0.36 | 0.01 | ||||||||||||
Diluted adjusted net income per share, US$ | 0.13 | 0.05 | 0.36 | 0.01 |
(1) The amortization of Nanobank intangible assets is 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. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/opera-reports-record-third-quarter-2022-results-301661012.html
SOURCE Opera Limited
FAQ
What were Opera Limited's Q3 2022 revenue and net income figures?
How much did Opera Limited increase its revenue guidance for 2022?
What was the adjusted EBITDA margin for Opera Limited in Q3 2022?
How many ADS equivalents did Opera Limited repurchase recently?