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Opera Ltd (OPRA)
NASDAQ:OPRA
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Opera
(NASDAQ:OPRA)
Rating:73Outperform
Price Target:
$19.00
▲(10.47%Upside)
Positive Factors
Financial Performance
Opera posted a robust quarter, beating the top and bottom lines and exceeding guidance mainly due to strong ad-tech results.
Monetization Strategy
AI-driven enhancements and iOS expansion strengthen engagement and monetization, supporting multi-year growth.
User Engagement
Opera's focus on higher-value users in developed markets positions it for sustained, profitable growth.
Negative Factors
Market Competition
Opera's unique position as a browser, growth in higher ARPU user segments, and ramping of new ad products are key strengths but face competitive challenges.
Regulatory Challenges
Multiple catalysts are anticipated, including the resolution of Google regulatory matters, which could impact operations.
Valuation Concerns
Opera's valuation is described as compelling at approximately 9x '26E EBITDA, but market conditions might affect perceived value.
Opera (OPRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.53B
Dividend Yield4.53%
Average Volume (3M)556.37K
Price to Earnings (P/E)23.9
Beta (1Y)1.37
Revenue Growth26.71%
EPS Growth-23.67%
CountryUS
Employees599
SectorCommunication Services
Sector Strength76
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.20
Shares Outstanding89,500,854
10 Day Avg. Volume580,410
30 Day Avg. Volume556,369
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)0.90
Price to Sales (P/S)0.00
P/FCF Ratio10.07
Enterprise Value/Market Cap0.49
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit2.79
Enterprise Value/Ebitda1.19
Forecast
1Y Price Target
$27.50Price Target Upside59.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Opera Business Overview & Revenue Model
Company DescriptionOpera Limited, together with its subsidiaries, provides mobile and PC web browsers. It operates in two segments, Browser and News, and Other. The company offers mobile browser products, such as Opera Mini, Opera for Android and iOS, Opera GX Mobile, and Opera Touch; PC browsers, including Opera for Computers and Opera GX; and Opera News, an AI-powered personalized news discovery and aggregation service. It also provides browser-based cashback rewards under the Dify brand name; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates online marketing platforms, including Opera Ads, an online advertising platform; and Opera Ads Manager, designs to create, manage, and report on digital advertising campaigns in one place allowing advertisers to reach customers. It operates in Ireland, Singapore, Russia, and internationally. The company was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Limited.
How the Company Makes MoneyOpera makes money primarily through partnerships and licensing agreements with search engines, which pay Opera for directing user queries through their search services. Additionally, the company generates revenue through advertising within its browser and news applications, as well as through premium services and features available to users. Opera's fintech solutions, particularly in emerging markets, also serve as a growing source of income, leveraging digital payment services and other financial products.
Opera Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 13.01%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong start to 2025 with record revenue growth, significant advertising and e-commerce performance, and innovative product launches. However, there were some concerns regarding the slowdown in search revenue growth, stable yet declining MAU numbers, and a slight decrease in GX ARPU.Q1-2025 Updates
Positive Updates
Record Revenue Growth
Year-over-year revenue growth increased from 29% in Q4 2024 to 40% in Q1 2025, surpassing the previously guided range of 28% to 31%. This resulted in a record first-quarter revenue of $143 million.
Advertising Revenue Surge
Advertising revenue grew 3% in Q1, reaching $96 million and now represents two-thirds of total revenue. E-commerce was the fastest-growing vertical with over 100% annualized growth.
Strong EBITDA and Profitability
Adjusted EBITDA was $32 million, exceeding the high end of previously issued guidance, with a corresponding margin of 23%.
Innovative Product Launches
Opera became the first major browser to present AI agentic browsing through the browser operator, showcasing its ability to perform tasks like travel bookings and online purchases. Opera Air was also launched, targeting users in Western markets.
Significant ARPU Increase
Annualized ARPU grew 44% year-over-year, reflecting successful monetization strategies.
Negative Updates
Search Revenue Growth Slowdown
Search revenue grew 8% year-over-year, which is a slowdown compared to previous growth in the teens.
Stable but Declining MAUs
The user base remained stable at 293 million MAUs, but there is a slight downward trend indicating potential challenges in user acquisition or retention.
GX ARPU Decline
Opera GX's annualized ARPU was $3.41, slightly down from the seasonal peak of Q4.
Company Guidance
During the Opera Limited First Quarter 2025 Earnings Call, the company reported impressive financial results that exceeded expectations. The company achieved a 40% year-over-year revenue growth, surpassing its previous guidance range of 28% to 31%. This translated to a record revenue of $143 million for the first quarter. Advertising revenue, which grew by 3% and reached $96 million, accounted for two-thirds of total revenue, with e-commerce being the fastest-growing vertical at over 100% annualized growth. Search revenue also saw an 8% increase to $47 million. Adjusted EBITDA was reported at $32 million, with a margin of 23%, highlighting the company’s ability to accelerate top-line growth without sacrificing profitability. The user base remained stable at 293 million monthly active users (MAUs), and annualized ARPU grew by 44% year-over-year. Opera also highlighted the successful product launches and updates, including AI implementations in its browsers. Looking ahead, Opera raised its full-year revenue guidance to $567 million to $582 million, reflecting a 20% annual growth at the midpoint, and adjusted EBITDA guidance to $135 million to $140 million. The company expects continued growth in both advertising and e-commerce, despite potential macroeconomic challenges.Opera Financial Statement Overview
Summary
Opera shows strong revenue and profit growth, efficient cost management, and robust operational performance. The balance sheet is well-capitalized with low debt, and cash flow generation is strong, supporting future growth initiatives.Income Statement
Opera's income statement shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue of $522.4 million, reflecting a significant growth from the previous year. The gross profit margin is high, indicating efficient cost management relative to revenues. Net profit margin has improved, showcasing increased profitability. EBIT and EBITDA margins are healthy, suggesting robust operational performance.85
Very Positive
Balance Sheet
Opera's balance sheet demonstrates solid financial health with a low debt-to-equity ratio, indicating low leverage risk. The equity ratio is strong, reflecting a stable capitalization structure. Return on equity is improving, highlighting effective use of equity to generate profits. The balance sheet stability supports long-term financial sustainability.78
Positive
Cash Flow
Opera's cash flow statement reveals a positive free cash flow with growth over the prior period, indicating good cash generation capabilities. The operating cash flow to net income ratio is strong, supporting the quality of earnings. Free cash flow to net income ratio also indicates effective conversion of profits into cash, which is vital for reinvestment and shareholder returns.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 480.65M | 396.75M | 331.04M | 250.99M | 165.27M |
| Gross Profit | 268.43M | 207.40M | 276.45M | 237.30M | 153.16M |
| EBITDA | 107.96M | 173.98M | 39.68M | 10.05M | 56.50M |
| Net Income | 80.77M | 153.30M | 15.04M | -14.97M | 34.31M |
Balance Sheet | |||||
| Total Assets | 1.06B | 1.01B | 964.69M | 1.12B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 126.80M | 93.86M | 118.66M | 181.01M | 135.02M |
| Total Debt | 9.59M | 10.55M | 7.83M | 13.51M | 8.97M |
| Total Liabilities | 115.48M | 91.09M | 76.47M | 80.17M | 60.95M |
| Stockholders Equity | 940.10M | 919.85M | 888.21M | 1.04B | 1.05B |
Cash Flow | |||||
| Free Cash Flow | 81.63M | 76.36M | 46.69M | 20.67M | 82.00M |
| Operating Cash Flow | 104.98M | 82.76M | 56.66M | 26.56M | 93.32M |
| Investing Cash Flow | -27.11M | 20.00M | 44.45M | -49.70M | 2.96M |
| Financing Cash Flow | -42.15M | -59.84M | -150.58M | -6.68M | -100.97M |
Opera Technical Analysis
Negative
17.20
Price Trends
18.20
Negative
17.19
Positive
17.51
Negative
Market Momentum
-0.24
Positive
38.11
Neutral
10.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRA, the sentiment is Negative. The current price of 17.2 is below the 20-day moving average (MA) of 18.54, below the 50-day MA of 18.20, and below the 200-day MA of 17.51, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of 10.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPRA.
Opera Risk Analysis
Opera disclosed 61 risk factors in its most recent earnings report. Opera reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Opera Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.61B | 7.63 | 10.79% | 8.05% | 0.83% | 22.06% | |
73 Outperform | $1.53B | 23.92 | 9.18% | 4.53% | 26.71% | -23.67% | |
69 Neutral | $814.82M | 16.27 | 5.05% | ― | -16.79% | ― | |
69 Neutral | $1.09B | 87.40 | 1.35% | ― | 16.62% | ― | |
68 Neutral | $3.24B | ― | -15.07% | ― | -18.11% | -516.37% | |
62 Neutral | $42.18B | -1.56 | -12.06% | 2.81% | 2.10% | -71.01% | |
55 Neutral | $277.24M | ― | -14.61% | ― | 4.15% | -394.93% |
* Communication Services Sector Average
Performance Comparison
OPRA
Opera
17.20
5.72
49.83%
ANGI
Angi
16.96
-5.34
-23.95%
WB
Weibo
10.19
3.28
47.47%
IAC
IAC/InteractiveCorp.
40.65
-1.99
-4.67%
TBLA
Taboola.com
3.33
-0.12
-3.48%
TEAD
Teads Holding
2.95
-1.85
-38.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.