Opera Reports Third Quarter 2024 Results with Acceleration Beyond Expectations, Raises Full-Year Outlook Again
Revenue grew 20% year-over-year to
Adjusted EBITDA of
Launched
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
"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
"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
Third Quarter and Nine Months 2024 Financial Highlights
|
|
|
Three Months Ended |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
||||||||||||
|
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) |
|
|
|
|
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
- 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
- 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
Net finance loss was
Income tax expense was
Net income was
Adjusted EBITDA was
Diluted earnings per ADS was
Net cash flow from operating activities was
Business Outlook
|
|
|
Fourth Quarter 2024 Guidance |
|
|
Full-Year 2024 Guidance |
|
|
Revenue |
|
|
|
|
|
|
|
Year-over-year revenue growth (1) |
|
21 |
% |
|
19 |
% |
|
Adjusted EBITDA (2) |
|
|
|
|
|
|
|
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
"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
Conference Call and Webcast Information
Opera's management will host a conference call to discuss the third quarter 2024 financial results at
We also provide announcements regarding our financial performance and other matters, including
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
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
|
|
||||||||||||||||
|
Consolidated Statement of Operations |
||||||||||||||||
|
(In thousands, except per share amounts, unaudited) |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
|
||||||||||||||||
|
Consolidated Statement of Comprehensive Income |
||||||||||||||||
|
(In thousands, unaudited) |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
|
||||||||
|
Consolidated Statement of Financial Position |
||||||||
|
(In thousands, unaudited) |
||||||||
|
|
||||||||
|
|
|
As of |
|
|
As of |
|
||
|
|
|
2023 |
|
|
2024 |
|
||
|
Assets: |
|
|
|
|
|
|
||
|
Property and equipment |
|
$ |
16,074 |
|
|
$ |
34,490 |
|
|
|
|
|
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 |
|
|
|
|
|
(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 |
|
|
|
||||||||||||||||||||||||||||
|
Consolidated Statement of Changes in Equity |
||||||||||||||||||||||||||||
|
(In thousands, except number of shares, unaudited) |
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
For the nine months ended |
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
Equity attributable to Opera shareholders |
|
||||||||||||||||||||||
|
|
|
Number |
|
|
Share |
|
|
Other |
|
|
|
|
|
Retained |
|
|
Foreign |
|
|
Total |
|
|||||||
|
As of |
|
|
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 |
|
|
88,672,238 |
|
|
$ |
18 |
|
|
$ |
717,610 |
|
|
$ |
(225,814) |
|
|
$ |
333,160 |
|
|
$ |
(5,515) |
|
|
$ |
819,458 |
|
|
|
||||||||||||||||||||||||||||
|
For the nine months ended |
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
Equity attributable to Opera shareholders |
|
||||||||||||||||||||||
|
|
|
Number |
|
|
Share |
|
|
Other |
|
|
|
|
|
Retained |
|
|
Foreign |
|
|
Total |
|
|||||||
|
As of |
|
|
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 |
|
|
88,480,154 |
|
|
$ |
18 |
|
|
$ |
647,204 |
|
|
$ |
(238,815) |
|
|
$ |
506,107 |
|
|
$ |
(2,823) |
|
|
$ |
911,692 |
|
|
|
||||||||||||||||
|
Consolidated Statement of Cash Flows |
||||||||||||||||
|
(In thousands, unaudited) |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
|
||||||||||||||||
|
Supplemental Financial Information |
||||||||||||||||
|
(In thousands, unaudited) |
||||||||||||||||
|
|
||||||||||||||||
|
Revenue |
||||||||||||||||
|
|
||||||||||||||||
|
The following table presents revenue disaggregated by type: |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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) |
|
|
|
||||||||||||||||
|
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
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