Opera Limited ((OPRA)) has held its Q1 earnings call. Read on for the main highlights of the call.
Opera Limited’s recent earnings call painted a picture of robust growth and innovation, setting a positive tone for the start of 2025. The company reported record revenue growth, driven by impressive advertising and e-commerce performance, alongside groundbreaking product launches. However, there were some concerns about the slowdown in search revenue growth, stable yet declining monthly active users (MAUs), and a slight decrease in GX ARPU.
Record Revenue Growth
Opera Limited achieved a remarkable year-over-year revenue growth of 40% in Q1 2025, surpassing its previous guidance range of 28% to 31%. This resulted in a record first-quarter revenue of $143 million, highlighting the company’s strong financial performance.
Advertising Revenue Surge
Advertising revenue saw a 3% increase in Q1, reaching $96 million and now constitutes two-thirds of the total revenue. E-commerce emerged as the fastest-growing vertical, boasting over 100% annualized growth, underscoring Opera’s strategic focus on expanding its digital advertising footprint.
Strong EBITDA and Profitability
Opera reported an adjusted EBITDA of $32 million, exceeding the high end of its previously issued guidance, with a corresponding margin of 23%. This demonstrates the company’s ability to accelerate top-line growth while maintaining profitability.
Innovative Product Launches
Opera became the first major browser to introduce AI agentic browsing, allowing users to perform tasks such as travel bookings and online purchases directly through the browser. Additionally, Opera Air was launched, targeting users in Western markets, showcasing the company’s commitment to innovation.
Significant ARPU Increase
The annualized ARPU grew by 44% year-over-year, reflecting Opera’s successful monetization strategies and its ability to extract more value from its user base.
Search Revenue Growth Slowdown
Search revenue experienced an 8% year-over-year growth, marking a slowdown compared to previous growth rates in the teens. This indicates potential challenges in maintaining the momentum in this segment.
Stable but Declining MAUs
The user base remained stable at 293 million MAUs, but there is a slight downward trend, suggesting potential challenges in user acquisition or retention that Opera may need to address.
GX ARPU Decline
Opera GX’s annualized ARPU was reported at $3.41, slightly down from the seasonal peak of Q4, indicating a need for strategies to boost user engagement and monetization in this segment.
Forward-Looking Guidance
Looking ahead, Opera raised its full-year revenue guidance to a range of $567 million to $582 million, reflecting a 20% annual growth at the midpoint. The company also adjusted its EBITDA guidance to $135 million to $140 million. Despite potential macroeconomic challenges, Opera expects continued growth in both advertising and e-commerce sectors.
In summary, Opera Limited’s earnings call highlighted a strong start to 2025 with record revenue growth and innovative product launches. While there are some concerns regarding search revenue and user base trends, the company’s forward-looking guidance remains optimistic, projecting continued growth and profitability.