Opera Limited ((OPRA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Opera Limited’s recent earnings call painted a predominantly positive picture, highlighting the company’s robust revenue growth and successful product launches. Despite facing some challenges, such as tariff-related headwinds and the need for localization in new markets, the company has managed to offset these issues with significant achievements and an optimistic outlook.
Strong Revenue Growth
Opera Limited reported an impressive year-over-year revenue growth of 30%, surpassing their initial guidance of 22% to 26%. This marks the 17th consecutive quarter that Opera has maintained its status as a Rule of 40 company, showcasing its consistent ability to balance growth and profitability.
Advertising Revenue Increase
The company experienced a remarkable 44% increase in advertising revenue, reaching $93 million. E-commerce emerged as the fastest-growing vertical, continuing its trend of over 100% year-over-year growth, demonstrating Opera’s strong positioning in the digital advertising space.
Search Revenue Recovery
Search revenue saw a resurgence with an 11% year-over-year increase, totaling $50 million. This growth was driven by a strategic shift in the user base towards regions with higher average revenue per user (ARPU), enhancing the company’s revenue streams.
Opera GX User Growth
The Opera GX user base expanded by 11% year-over-year, reaching 33 million monthly active users (MAUs). With an annualized ARPU of $3.47, this growth underscores the platform’s increasing popularity and monetization potential.
MiniPay Success
MiniPay, Opera’s non-custodial wallet, has seen rapid adoption, with 9 million activated wallets and over 250 million transactions. This positions MiniPay as one of the fastest-growing wallets globally, highlighting Opera’s innovative approach in the fintech sector.
Positive Financial Results
Opera Limited reported an adjusted EBITDA of $32 million, exceeding guidance, alongside an operating cash flow of $33 million, representing 103% of adjusted EBITDA. These results reflect the company’s strong financial health and operational efficiency.
Guidance Increase
Opera Limited has raised its 2025 revenue guidance to between $585 million and $597 million, indicating a growth of 22% to 24% over 2024. The company also anticipates margin expansion, with adjusted EBITDA projected to be between $136 million and $140 million.
Tariff-Related Headwinds
Despite facing tariff-related challenges in the U.S. e-commerce sector, Opera has managed to largely offset these impacts through global opportunities, maintaining a positive revenue trajectory.
Challenges in South Korea and Japan
The soft launch of Opera GX in South Korea and Japan has highlighted the need for further localization. While early-stage results are not yet fully clear, the company is committed to adapting its offerings to meet local market demands.
Forward-Looking Guidance
Looking ahead, Opera Limited has set ambitious targets for 2025, with a projected revenue range of $585 million to $597 million, reflecting a 22% to 24% growth over the previous year. The company also aims to achieve an adjusted EBITDA margin of 23.4% at the midpoint, underscoring its confidence in continued financial and operational success.
In conclusion, Opera Limited’s earnings call conveyed a strong and positive sentiment, with significant achievements in revenue growth, advertising, and product innovation. The company’s raised guidance and strategic focus on emerging technologies and markets position it well for future success, despite some challenges in localization and tariff-related headwinds.