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Opera Reports Third Quarter 2024 Results with Acceleration Beyond Expectations, Raises Full-Year Outlook Again

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Opera (NASDAQ: OPRA) reported strong Q3 2024 results, with revenue growing 20% year-over-year to $123.2 million, exceeding guidance. Adjusted EBITDA reached $30.8 million with a 25% margin. Advertising revenue grew 26% to $76.8 million, while search revenue increased 13% to $46.3 million. The company reported 296 million monthly active users, with gaming browser Opera GX reaching 31.9 million users. Based on strong performance, Opera raised its full-year 2024 guidance, now expecting 19% year-over-year growth with revenue between $470-473 million and adjusted EBITDA of $112-114 million.

Opera (NASDAQ: OPRA) ha riportato risultati solidi per il terzo trimestre del 2024, con un fatturato in crescita del 20% rispetto all'anno precedente, raggiungendo 123,2 milioni di dollari, superando le previsioni. L'EBITDA rettificato ha toccato 30,8 milioni di dollari con un margine del 25%. I ricavi pubblicitari sono aumentati del 26% a 76,8 milioni di dollari, mentre i ricavi da ricerca sono cresciuti del 13% a 46,3 milioni di dollari. L'azienda ha riportato 296 milioni di utenti attivi mensili, con il browser di gioco Opera GX che ha raggiunto 31,9 milioni di utenti. Sulla base delle forti performance, Opera ha alzato le previsioni per l'intero anno 2024, ora prevedendo una crescita del 19% rispetto all'anno precedente, con un fatturato tra 470 e 473 milioni di dollari e un EBITDA rettificato di 112-114 milioni di dollari.

Opera (NASDAQ: OPRA) reportó resultados sólidos en el tercer trimestre de 2024, con ingresos creciendo un 20% interanual hasta alcanzar 123.2 millones de dólares, superando las expectativas. El EBITDA ajustado llegó a 30.8 millones de dólares con un margen del 25%. Los ingresos por publicidad crecieron un 26% hasta 76.8 millones de dólares, mientras que los ingresos por búsqueda aumentaron un 13% hasta 46.3 millones de dólares. La compañía reportó 296 millones de usuarios activos mensuales, con el navegador de juegos Opera GX alcanzando 31.9 millones de usuarios. Basándose en un rendimiento sólido, Opera elevó sus previsiones para todo el año 2024, ahora esperando un crecimiento del 19% interanual, con ingresos entre 470 y 473 millones de dólares y un EBITDA ajustado de 112-114 millones de dólares.

오페라 (NASDAQ: OPRA)는 2024년 3분기 강력한 실적을 발표하며, 연간 20% 성장하여 1억 2천 320만 달러의 매출을 기록하며 가이던스를 초과했습니다. 조정된 EBITDA는 3천 8백만 달러로 25%의 마진을 기록했습니다. 광고 수익은 26% 증가하여 7천 6백 80만 달러에 이르렀고, 검색 수익은 13% 증가하여 4천 6백 30만 달러가 되었습니다. 회사는 월간 활성 사용자 수가 2억 9천 6백만에 이르며, 게임 브라우저 Opera GX는 3천 190만 사용자를 기록했습니다. 강력한 성과를 바탕으로 오페라는 2024년 전체 연간 가이던스를 상향 조정하여 연간 19% 성장을 기대하며, 매출이 4억 7천-4억 7천 3백만 달러와 조정 EBITDA가 1억 1천 2백-1억 1천 4백만 달러에 이를 것으로 예상하고 있습니다.

Opera (NASDAQ: OPRA) a annoncé des résultats solides pour le troisième trimestre 2024, avec un chiffre d'affaires en hausse de 20% par rapport à l'année précédente, atteignant 123,2 millions de dollars, dépassant les prévisions. L'EBITDA ajusté a atteint 30,8 millions de dollars avec une marge de 25%. Les revenus publicitaires ont augmenté de 26% à 76,8 millions de dollars, tandis que les revenus de recherche ont augmenté de 13% à 46,3 millions de dollars. La société a rapporté 296 millions d'utilisateurs actifs mensuels, avec le navigateur de jeux Opera GX atteignant 31,9 millions d'utilisateurs. Sur la base de performances solides, Opera a relevé ses prévisions pour l'année 2024, s'attendant désormais à une croissance de 19% par rapport à l'année précédente, avec un chiffre d'affaires compris entre 470 et 473 millions de dollars et un EBITDA ajusté de 112-114 millions de dollars.

Opera (NASDAQ: OPRA) berichtete starke Ergebnisse im dritten Quartal 2024, mit einem Umsatzwachstum von 20% im Jahresvergleich auf 123,2 Millionen Dollar, was die Prognosen übertraf. Das bereinigte EBITDA erreichte 30,8 Millionen Dollar bei einer Marge von 25%. Die Werbeeinnahmen stiegen um 26% auf 76,8 Millionen Dollar, während die Sucherträge um 13% auf 46,3 Millionen Dollar zunahmen. Das Unternehmen meldete 296 Millionen monatlich aktive Nutzer, wobei der Gaming-Browser Opera GX 31,9 Millionen Nutzer erreichte. Aufgrund der starken Leistung erhöhte Opera die Jahresprognose für 2024 und erwartet nun ein Wachstum von 19% im Jahresvergleich, mit einem Umsatz zwischen 470 und 473 Millionen Dollar und einem bereinigten EBITDA von 112-114 Millionen Dollar.

Positive
  • Revenue grew 20% YoY to $123.2 million, exceeding guidance
  • Advertising revenue increased 26% YoY to $76.8 million
  • Adjusted EBITDA grew 30% YoY to $30.8 million
  • Operating profit margin improved to 19% from 16% YoY
  • Net cash flow from operations increased 115% YoY to $34.9 million
  • Raised full-year guidance with revenue now expected at $470-473 million
Negative
  • Net income margin slightly decreased to 15% from 16% YoY
  • Operating expenses increased 16% to $100.7 million

Insights

Opera's Q3 2024 results showcase impressive growth with $123.2 million in revenue, up 20% YoY and adjusted EBITDA of $30.8 million at a healthy 25% margin. Key highlights include:

  • Advertising revenue grew 26% to $76.8 million, demonstrating strong monetization
  • Search revenue increased 13% to $46.3 million
  • ARPU jumped 27% YoY to $1.66
  • Operating cash flow more than doubled to $34.9 million

The raised full-year guidance targeting 19% revenue growth signals management's confidence in continued momentum. Strong cash generation and healthy margins indicate sustainable growth trajectory.

Opera's strategic focus on high-value users and AI integration is paying off. The Opera GX gaming browser reached 31.9 million MAUs, growing 22% YoY, while the new Opera One R2 release strengthens the company's competitive position. Despite total MAUs at 296 million showing some decline in low-value emerging market users, the shift toward premium users is driving significant ARPU gains. The company's ability to deliver targeted, high-intent traffic to advertisers while expanding its product portfolio positions it well for continued growth in the browser market.

Revenue grew 20% year-over-year to $123.2 million, and exceeded the guidance range

Adjusted EBITDA of $30.8 million, a 25% margin, also exceeded the guidance range

Launched Opera One R2, a reimagined and updated version of Opera's flagship browser, bringing improvements to AI, tab management and multimedia

Raises both revenue and adjusted EBITDA full-year guidance, now at 19% year-over-year growth at the midpoint with a corresponding increase in adjusted EBITDA expectations 

OSLO, Norway, Oct. 29, 2024 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's major browser developers and a leading internet consumer brand, today announced financial results for the quarter ended September 30, 2024.

"The third quarter of 2024 demonstrated the sustained growth performance of our business, with an acceleration of revenue growth well beyond our expectations fueled by our ability to promote our advertising partners to an engaged and increasingly valuable user base. Our revenue overperformance led to another quarter of adjusted EBITDA also exceeding the high end of our guidance," said co-CEO Lin Song.

"Our excitement for the path ahead is supported by the combination of expanding monetization opportunities paired with the strength of our product portfolio. With the recent release of our flagship Opera One R2 browser, we enter the fourth quarter with a fresh and unique browser lineup across platforms, and we are enthusiastic about our plans to keep raising consumer awareness about Opera and our products," continued Mr. Song.

Third Quarter and Nine Months 2024 Financial Highlights



Three Months Ended
 September 30,






Nine Months Ended
 September 30,





In thousands, except percentages and per share amounts


2023



2024



% Change



2023



2024



% Change


Revenue


$

102,639



$

123,210




20

%


$

283,824



$

334,815




18

%




















Net income


$

16,836



$

17,940




7

%


$

45,851



$

52,082




14

%

Net income margin



16

%



15

%






16

%



16

%























Adjusted net income (1)


$

17,399



$

22,884




32

%


$

51,155



$

61,335




20

%

Adjusted net income margin



17

%



19

%






18

%



18

%























Adjusted EBITDA (1)


$

23,752



$

30,797




30

%


$

65,955



$

82,316




25

%

Adjusted EBITDA margin



23

%



25

%






23

%



25

%























Diluted earnings per ADS (2)


$

0.18



$

0.20




11

%


$

0.50



$

0.58




16

%

Diluted adjusted earnings per ADS (1, 2)


$

0.19



$

0.26




34

%


$

0.57



$

0.69




20

%




















Net cash flow from operating activities


$

16,233



$

34,896




115

%


$

57,477



$

83,334




45

%

As percent of adjusted EBITDA



68

%



113

%






87

%



101

%























Free cash flow from operations (1)


$

13,418



$

29,739




122

%


$

49,951



$

51,555




3

%

As percent of adjusted EBITDA



56

%



97

%






76

%



63

%






_______________

(1)

See the sections below titled "Non-IFRS Financial Measures" and "Reconciliations of Non-IFRS Financial Measures" for explanations and reconciliations of non-IFRS financial measures.

(2)

Opera Limited has American depositary shares (ADSs) listed on the Nasdaq Global Select Market, each representing two ordinary shares.



Third Quarter 2024 and Recent Business Highlights

  • Solid monetization performance of our browsers, along with continuing growth of our Opera Ads platform and our ability to deliver targeted, high purchase intent traffic to our advertising partners, resulted in advertising revenue growing 26% year-over-year to $76.8 million, or 62% of total revenue.
  • Search revenue grew 13% year-over-year, driven by our ongoing focus on users with potential for the greatest monetization.
  • Opera had 296 million average monthly active users (MAUs) in the quarter, with continued growth in high-ARPU users continuing to be offset primarily by a decline of feature phone users in emerging markets.
  • Annualized ARPU was $1.66, an increase of 27% versus the third quarter of 2023.
  • The Opera GX gaming browser had 31.9 million average MAUs in the quarter across PC and mobile, up 22% year-over-year.
  • Opera paid a semi-annual dividend of $0.40 per ADS in July.
  • Net cash flow from operating activities was $34.9 million. At quarter-end, cash and cash equivalents totaled $106.0 million.

Third Quarter 2024 Financial Results

All comparisons in this section are relative to the third quarter of 2023 unless otherwise stated.

Revenue increased 20% to $123.2 million.

  • Advertising revenue increased 26% to $76.8 million.
  • Search revenue increased 13% to $46.3 million.
  • Technology licensing and other revenue was $0.1 million.

Operating expenses increased 16% to $100.7 million.

  • Combined technology and platform fees, content cost and cost of inventory sold were $33.1 million, or 27% of revenue.
  • Personnel expenses, including share-based compensation, totaled $23.2 million. Cash-based compensation expense was $19.1 million, a 9% increase year-over-year, whereas share-based compensation expense was $4.1 million. The share-based compensation expense includes equity awards granted by Opera's majority shareholder to employees of Opera even though Opera does not have any obligation to settle the awards, and such awards do not lead to dilution for Opera shareholders.
  • Marketing and distribution expenses increased 14% to $32.5 million.
  • Depreciation and amortization increased 29% to $4.1 million, primarily due to the AI data cluster acquired earlier this year.
  • All other operating expenses decreased 14% to $7.7 million, driven by non-recurring expenses and impairments of non-financial assets relevant only in the comparable quarter, and other items remaining stable in totality.

Operating profit was $23.2 million, representing a 19% margin, compared to an operating profit of $16.1 million and a margin of 16% in the third quarter of 2023.

Net finance loss was $0.4 million, a result of foreign exchange loss of $1.1 million, offset by $0.7 million in net interest income.

Income tax expense was $4.8 million, corresponding to an effective tax rate of 21%, or 16% of adjusted EBITDA, and compared to an income tax expense of $0.2 million in the third quarter of 2023 in which a deferred tax asset relating to prior share-based compensation expense was recognized.

Net income was $17.9 million, representing a 15% margin, compared to net income of $16.8 million and a margin of 16% in the third quarter of 2023. Adjusted net income, a new metric highlighting the underlying profitability of our core operations, was $22.9 million, representing an 19% margin, compared to adjusted net income of $17.4 million and a margin of 17% in the third quarter of 2023. The adjusted net income of prior quarters are published within the Excel file containing our historical results.

Adjusted EBITDA was $30.8 million, representing a 25% margin, compared to adjusted EBITDA of $23.8 million, representing a 23% margin, in the third quarter of 2023.

Diluted earnings per ADS was $0.20, whereas diluted adjusted earnings per ADS was $0.26. The diluted weighted average number of ADSs outstanding was 89.5 million. As of September 30, 2024, a total of 88,480,154 ADS equivalents were outstanding.

Net cash flow from operating activities was $34.9 million, or 113% of adjusted EBITDA. Free cash flow from operations was $29.7 million, or 97% of adjusted EBITDA.

Business Outlook



Fourth Quarter 2024 Guidance



Full-Year 2024 Guidance


Revenue


$135 – 138 million



$470 – 473 million


Year-over-year revenue growth (1)


21

%


19

%

Adjusted EBITDA (2)


$30 – 32 million



$112 – 114 million


Adjusted EBITDA margin (1)


23

%


24

%



_______________

(1)

The percentages shown for revenue growth and adjusted EBITDA margin have been calculated based on the midpoints of the revenue and adjusted EBITDA guidance.

(2)

See the section below titled "Non-IFRS Financial Measures" for explanations of non-IFRS financial measures.



"With the momentum in our business, we once again raise our guidance for 2024. Our updated revenue range now starts well above the high-end of our former guidance range, and our adjusted EBITDA guidance is raised to represent the same margin expansion as previously guided, but on a greater revenue base. We enter the seasonally strongest fourth quarter with excitement about the potential of our product portfolio and our commercial opportunities, and how that will ultimately translate into a healthy starting position for 2025," said Frode Jacobsen, CFO.

"For the fourth quarter, we guide to a continued and more pronounced acceleration of our year-over-year growth rate than implied in our earlier guidance, with strong underlying profitability allowing us to step up marketing efforts around our new product releases beyond earlier expectations," continued Mr. Jacobsen.

Conference Call and Webcast Information

Opera's management will host a conference call to discuss the third quarter 2024 financial results at 8:00 a.m. ET today. The live webcast of the conference call can be accessed at our investor relations website at investor.opera.com, along with the earnings press release and financial tables. Following the call, a replay will be available at the same website.

We also provide announcements regarding our financial performance and other matters, including SEC filings, press releases, slide presentations, business blogs and information on corporate governance, on our investor relations website at investor.opera.com.

Non-IFRS Financial Measures

We collect and analyze operating and financial data to evaluate the health of our business and assess our performance. In addition to revenue, net income, net cash flow from operating activities and other financial measures under IFRS Accounting Standards, we use adjusted net income, adjusted net income margin, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin and free cash flow from operations to evaluate our business. We use these non-IFRS financial measures for financial and operational decision-making and as means to evaluate period-to-period comparisons. We believe adjusted net income and adjusted earnings per share, adjusted EBITDA and adjusted EBITDA margin provide meaningful supplemental information regarding our financial performance by excluding certain items that may not be indicative of recurring core business operating results. We believe that free cash flow from operations provides useful information regarding our liquidity, including ability to generate cash from business operations that is available for acquisitions and other investments, and for distributions to our shareholders.

We define adjusted net income as net income excluding (i) profit (loss) from discontinued operations, (ii) gain (loss) on investments in unconsolidated entities, (iii) non-recurring expenses, (iv) impairment of non-financial assets, (v) amortization of acquired intangible assets, (vi) share-based compensation expense, and (vii) the income tax effect of these adjustments. Adjusted net income margin is calculated as adjusted net income divided by revenue, whereas adjusted earnings per share is calculated as adjusted net income divided by the weighted average number of shares outstanding.

We define adjusted EBITDA as net income excluding (i) profit (loss) from discontinued operations, (ii) income tax expense, (iii) net finance income (expense), (iv) gain (loss) on long-term investments in unconsolidated entities, (v) non-recurring expenses, (vi) impairment of non-financial assets, (vii) depreciation and amortization, (viii) share-based compensation expense, and (ix) other operating income. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.

We define free cash flow from operations as net cash flows from (used in) operating activities less (i) purchases of fixed and intangible assets, (ii) development expenditure and (iii) payment of lease liabilities.

We believe the non-IFRS financial measures defined above are useful to investors both because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and they are used by our institutional investors and the analyst community to help them analyze the health of our business. However, these non-IFRS financial measures should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with IFRS Accounting Standards. Our calculations of adjusted net income, adjusted net income margin, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin and free cash flow from operations may differ from similarly-titled non-IFRS measures, if any, reported by our peers. In addition, the non-IFRS financial measures may be limited in their usefulness because they do not present the full economic effects of certain items of income, expenses and cash flows. We compensate for these limitations by providing reconciliations of our non-IFRS financial measures to the most closely related financial measures in IFRS Accounting Standards. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view our reported non-IFRS financial measures in conjunction with net income and net cash flow from operating activities.

For reconciliations of these non-IFRS financial measures to the most directly comparable financial measures prepared in accordance with IFRS Accounting Standards, please see the section titled "Reconciliations of Non-IFRS Financial Measures" included at the end of this earnings press release.

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," "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 international wars and conflicts, such as in Ukraine and the Middle East, and related economic sanctions, 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; changes in consumer behavior, for example from increased adoption of AI powered services; 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 user-centric and innovative software company focused on enabling the best possible internet browsing experience across all devices. Hundreds of millions use the Opera web browsers for their unique and secure features on their mobile phones and desktop computers. Founded in 1995, and headquartered in Oslo, Norway, Opera is a public company listed on the Nasdaq stock exchange under the ticker symbol "OPRA". Download the Opera web browser and access other Opera products from opera.com. Learn more about Opera at investor.opera.com.

Opera Limited

Consolidated Statement of Operations

(In thousands, except per share amounts, unaudited)




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Revenue


$

102,639



$

123,210



$

283,824



$

334,815


Other operating income



8




654




188




2,278


Operating expenses:













Technology and platform fees



(736)




(1,841)




(2,691)




(7,497)


Content cost



(1,181)




(897)




(3,164)




(2,767)


Cost of inventory sold



(23,332)




(30,377)




(58,855)




(74,523)


Personnel expenses including share-based compensation



(20,710)




(23,184)




(62,133)




(61,889)


Marketing and distribution expenses



(28,406)




(32,516)




(79,799)




(91,007)


Credit loss expense



(192)




45




(2,638)




252


Depreciation and amortization



(3,205)




(4,146)




(9,940)




(11,229)


Impairment of non-financial assets



(565)




(4)




(565)




(4)


Non-recurring expenses



(689)







(689)





Other operating expenses



(7,552)




(7,758)




(20,974)




(23,723)


Total operating expenses



(86,569)




(100,678)




(241,449)




(272,389)


Operating profit



16,078




23,185




42,563




64,703


Net finance income (expense):













Finance income



1,154




784




7,877




2,583


Finance expense



(92)




(117)




(545)




(432)


Net foreign exchange gain (loss)



(86)




(1,067)




590




(2,472)


Net finance income (expense)



976




(400)




7,922




(321)


Income before income taxes



17,054




22,786




50,485




64,382


Income tax expense



(218)




(4,846)




(4,635)




(12,300)


Net income attributable to Opera shareholders


$

16,836



$

17,940



$

45,851



$

52,082















Earnings per American depositary share (ADS):













Basic


$

0.19



$

0.20



$

0.51



$

0.59


Diluted


$

0.18



$

0.20



$

0.50



$

0.58


Weighted-average number of ADSs outstanding:













Basic



89,653




88,472




89,777




88,458


Diluted



91,214




89,487




91,309




89,482


 

Opera Limited

Consolidated Statement of Comprehensive Income

(In thousands, unaudited)




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Net income


$

16,836



$

17,940



$

45,851



$

52,082


Other comprehensive income (loss):













Items that may be reclassified to the statement of operations:













Exchange differences on translation of foreign operations



(962)




1,469




(2,129)




1,304


Other comprehensive income (loss)



(962)




1,469




(2,129)




1,304


Total comprehensive income attributable to Opera shareholders


$

15,874



$

19,409



$

43,721



$

53,386


 

Opera Limited

Consolidated Statement of Financial Position

(In thousands, unaudited)




As of December 31,



As of September 30,




2023



2024


Assets:







Property and equipment


$

16,074



$

34,490


Goodwill



429,856




430,274


Intangible assets



99,070




97,452


Investment in OPay



253,300




253,300


Other non-current investments and financial assets



3,049




2,626


Deferred tax assets



1,133




1,099


Total non-current assets



802,482




819,241


Trade receivables



69,382




75,004


Current receivables from sale of investments



32,797





Other current receivables



7,760




4,155


Cash and cash equivalents



93,863




106,005


Other current assets



4,660




8,261


Total current assets



208,461




193,424


Total assets


$

1,010,943



$

1,012,665









Equity:







Share capital


$

18



$

18


Other paid in capital



717,610




647,204


Treasury shares



(238,815)




(238,815)


Retained earnings



445,164




506,107


Foreign currency translation reserve



(4,127)




(2,823)


Total equity attributable to Opera shareholders



919,850




911,692


Liabilities:







Non-current lease liabilities



6,776




5,438


Deferred tax liabilities



2,813




3,537


Other non-current liabilities



94




69


Total non-current liabilities



9,682




9,045


Trade and other payables



52,247




63,678


Current lease liabilities



3,770




3,523


Income tax payable



1,838




8,178


Deferred revenue



10,272




3,471


Other current liabilities



13,285




13,079


Total current liabilities



81,411




91,929


Total liabilities



91,093




100,973


Total equity and liabilities


$

1,010,943



$

1,012,665


 

Opera Limited

Consolidated Statement of Changes in Equity

(In thousands, except number of shares, unaudited)


For the nine months ended September 30, 2023:







Equity attributable to Opera shareholders




Number
of ADSs
outstanding



Share
capital



Other
paid in
capital



Treasury
shares



Retained
earnings



Foreign
currency
translation
reserve



Total
equity


As of January 1, 2023



89,215,121



$

18



$

824,832



$

(206,514)



$

273,263



$

(3,385)



$

888,213


Net income















45,851







45,851


Other comprehensive loss


















(2,129)




(2,129)


Share-based compensation, net of tax















14,046







14,046


Issuance of shares upon exercise of RSUs and options



1,068,509










394










394


Acquisition of treasury shares



(1,611,392)










(19,694)










(19,694)


Dividends









(107,222)













(107,222)


As of September 30, 2023



88,672,238



$

18



$

717,610



$

(225,814)



$

333,160



$

(5,515)



$

819,458


 


For the nine months ended September 30, 2024:







Equity attributable to Opera shareholders




Number
of ADSs
outstanding



Share
capital



Other
paid in
capital



Treasury
shares



Retained
earnings



Foreign
currency
translation
reserve



Total
equity


As of January 1, 2024



87,518,284



$

18



$

717,610



$

(238,815)



$

445,164



$

(4,127)



$

919,850


Net income















52,082







52,082


Other comprehensive income


















1,304




1,304


Share-based compensation, net of tax















8,861







8,861


Issuance of shares upon exercise of RSUs



961,870




















Dividends









(70,406)













(70,406)


As of September 30, 2024



88,480,154



$

18



$

647,204



$

(238,815)



$

506,107



$

(2,823)



$

911,692


 

Opera Limited

Consolidated Statement of Cash Flows

(In thousands, unaudited)




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Cash flows from operating activities:













Income before income taxes


$

17,054



$

22,786



$

50,485



$

64,382


Adjustments to reconcile income before income taxes to net cash flow from operating activities:













Net finance (income) expense



(976)




400




(7,922)




321


Impairment of non-financial assets



565




4




565




4


Depreciation and amortization



3,205




4,146




9,940




11,229


Share-based compensation



3,815




3,554




10,989




7,775


Other adjustments



(273)




(300)




(65)




290


Changes in working capital:













Trade and other receivables



(5,097)




(8,519)




(3,059)




(1,987)


Other current assets



(1,279)




(136)




(1,693)




1,187


Trade and other payables



(407)




10,686




(102)




11,432


Deferred revenue



(1,657)




(1,658)




2,193




(6,800)


Other liabilities



1,753




4,021




170




(231)


Income taxes paid



(470)




(87)




(4,022)




(4,268)


Net cash flow from operating activities



16,233




34,896




57,477




83,334


Cash flows from investing activities:













Purchase of equipment



(741)




(1,845)




(1,279)




(23,310)


Development expenditure



(1,189)




(2,271)




(3,304)




(5,391)


Sale of long-term investments












500


Net sale of short-term investments









23,414





Interest received



840




773




2,273




2,417


Net cash flow from (used in) investing activities



(1,090)




(3,343)




21,105




(25,784)


Cash flows from financing activities:













Acquisition of treasury shares



(17,230)







(19,694)





Dividends paid



(10,832)




(27,569)




(23,105)




(37,443)


Proceeds from exercise of share options









394





Repayment of borrowings



(46)







(203)





Payment of lease liabilities



(884)




(1,041)




(2,943)




(3,078)


Interest paid



(92)




(117)




(243)




(389)


Net cash flow used in financing activities



(29,084)




(28,726)




(45,795)




(40,910)


Net change in cash and cash equivalents



(13,942)




2,826




32,786




16,640


Cash and cash equivalents at beginning of period



98,155




104,356




52,414




93,863


Effect of exchange rate changes on cash and cash equivalents



(709)




(1,177)




(1,696)




(4,498)


Cash and cash equivalents at end of period


$

83,505



$

106,005



$

83,505



$

106,005


 

Opera Limited

Supplemental Financial Information

(In thousands, unaudited)


Revenue


The following table presents revenue disaggregated by type:




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Advertising


$

60,800



$

76,844



$

163,147



$

200,123


Search



40,820




46,265




117,464




133,951


Technology licensing and other revenue



1,019




100




3,213




740


Total revenue


$

102,639



$

123,210



$

283,824



$

334,815


 

Personnel Expenses Including Share-based Compensation


The table below specifies personnel expenses including share-based compensation:




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Personnel expenses, excluding share-based compensation


$

(17,488)



$

(19,069)



$

(49,747)



$

(53,232)


Share-based compensation expense for Opera-granted awards (1)



(1,179)




(2,526)




(7,614)




(4,258)


Share-based compensation expense for parent-granted awards (2)



(2,043)




(1,589)




(4,771)




(4,399)


Total personnel expenses including share-based compensation


$

(20,710)



$

(23,184)



$

(62,133)



$

(61,889)




_______________

(1)

The cost of social security contributions payable in connection with equity awards is presented as part of the share-based compensation expense.

(2)

Kunlun, the ultimate parent of Opera, has granted equity awards to Opera employees as compensation for services provided to Opera. Opera does not have any obligation to settle the awards granted by Kunlun and such awards do not lead to dilution for Opera shareholders.



 

Other Operating Expenses


The following table specifies other operating expenses:




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Hosting


$

(2,580)



$

(3,417)



$

(7,612)



$

(9,234)


Audit, legal and other advisory services



(1,881)




(1,600)




(5,118)




(5,788)


Software license fees



(962)




(804)




(2,429)




(3,256)


Rent and other office expenses



(810)




(593)




(2,036)




(1,764)


Travel



(454)




(518)




(1,324)




(1,465)


Other



(865)




(826)




(2,454)




(2,216)


Total other operating expenses


$

(7,552)



$

(7,758)



$

(20,974)



$

(23,723)


 

Opera Limited

Reconciliations of Non-IFRS Financial Measures

(In thousands, unaudited)


The following table presents a reconciliation of net income to adjusted net income:




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Net income


$

16,836



$

17,940



$

45,851



$

52,082


Add (deduct):













Fair value (gain) on short-term investments (1)









(3,243)





Non-recurring expenses



689







689





Impairment of non-financial assets



565




4




565




4


Amortization of acquired intangible assets



645




645




1,935




1,935


Share-based compensation expense



3,222




4,115




12,385




8,657


Income tax effect on adjustments



(4,558)




180




(7,027)




(1,344)


Adjusted net income


$

17,399



$

22,884



$

51,155



$

61,335




_______________

(1)

The fair value gain on short-term investments was presented as part of finance income in the Statement of Operations.



 

The following table is a reconciliation of net income to adjusted EBITDA:




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Net income


$

16,836



$

17,940



$

45,851



$

52,082


Add (deduct):













Income tax expense



218




4,846




4,635




12,300


Net finance (income) expense



(976)




400




(7,922)




321


Non-recurring expenses



689







689





Impairment of non-financial assets



565




4




565




4


Depreciation and amortization



3,205




4,146




9,940




11,229


Share-based compensation expense



3,222




4,115




12,385




8,657


Other operating income



(8)




(654)




(188)




(2,278)


Adjusted EBITDA


$

23,752



$

30,797



$

65,955



$

82,316


 

The table below reconciles net cash flow from operating activities to free cash flow from operations:




Three Months Ended
 September 30,



Nine Months Ended
 September 30,




2023



2024



2023



2024


Net cash flow from operating activities


$

16,233



$

34,896



$

57,477



$

83,334


Deduct:













Purchase of equipment



(741)




(1,845)




(1,279)




(23,310)


Development expenditure



(1,189)




(2,271)




(3,304)




(5,391)


Payment of lease liabilities



(884)




(1,041)




(2,943)




(3,078)


Free cash flow from operations


$

13,418



$

29,739



$

49,951



$

51,555


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/opera-reports-third-quarter-2024-results-with-acceleration-beyond-expectations-raises-full-year-outlook-again-302289835.html

SOURCE Opera Limited

FAQ

What was Opera's (OPRA) revenue growth in Q3 2024?

Opera reported revenue growth of 20% year-over-year, reaching $123.2 million in Q3 2024.

How many monthly active users did Opera (OPRA) have in Q3 2024?

Opera had 296 million average monthly active users (MAUs) in Q3 2024.

What is Opera's (OPRA) updated revenue guidance for full-year 2024?

Opera raised its full-year 2024 revenue guidance to $470-473 million, representing 19% year-over-year growth at the midpoint.

How much did Opera's (OPRA) advertising revenue grow in Q3 2024?

Opera's advertising revenue grew 26% year-over-year to $76.8 million in Q3 2024.

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