Opera Limited ((OPRA)) has held its Q4 earnings call. Read on for the main highlights of the call.
Opera Limited’s recent earnings call exuded a strong positive sentiment, highlighting significant revenue and user growth in high-ARPU regions. The company showcased its success through product innovations and a surge in advertising revenue, despite increased costs and marketing expenditures. The financial performance not only surpassed guidance but also set an optimistic outlook for 2025.
Strong Revenue Growth
Opera Limited reported an impressive year-over-year revenue growth, accelerating from 17% in the first half of 2024 to 29% in Q4. This growth exceeded the company’s guidance by 800 basis points, showcasing Opera’s robust financial health and strategic execution.
Advertising Revenue Surge
The company experienced a significant surge in advertising revenue, reaching $93 million in Q4. This represents a 38% year-over-year growth, largely driven by e-commerce opportunities within Opera Ads, underscoring the effectiveness of the company’s advertising strategies.
User Growth in High-ARPU Regions
Opera’s user base in Western markets expanded by 3.5 million, with North America and Europe now accounting for nearly 19% of the total user base, up from 16% a year ago. This growth in high-ARPU regions is a testament to Opera’s successful market penetration strategies.
High ARPU Growth
The annualized ARPU saw a remarkable 33% year-over-year increase to $1.98, marking the highest ARPU growth in two years. This reflects Opera’s ability to enhance monetization per user effectively.
Product Innovations
Opera introduced new versions of Opera GX and Opera One, featuring AI capabilities and revamped designs. These innovations have contributed to user growth and positioned Opera as a leader in browser technology.
Opera GX User Growth
The user base of Opera GX grew to 33.9 million monthly active users, marking a 22% year-over-year increase. This growth highlights the increasing popularity and adoption of Opera GX among users.
Positive EBITDA Performance
Opera’s adjusted EBITDA surpassed the high end of the guidance range, reaching $33 million with a 23% margin. This performance underscores the company’s operational efficiency and profitability.
Cost of Revenue Increase
The cost of revenue items increased to $48 million, or 33% of revenue, scaling with revenue overperformance. While this presents a margin percentage headwind, it reflects the company’s investment in sustaining growth.
High Marketing Spend
Marketing expenditures rose to $41 million in Q4, driven by new product releases. This strategic investment is aimed at bolstering Opera’s market presence and user acquisition.
Forward-Looking Guidance
Looking ahead, Opera Limited provided optimistic guidance, projecting continued revenue growth into Q1 2025 with a 29% year-over-year increase. The company expects adjusted EBITDA between $28 million to $30 million. For the full year 2025, Opera anticipates revenue between $555 million and $570 million, with an adjusted EBITDA margin of 24%. Upcoming product innovations, particularly in AI, are expected to drive future growth.
In summary, Opera Limited’s earnings call reflected a strong positive sentiment, highlighting impressive financial performance and strategic growth initiatives. The company’s achievements in revenue and user growth, coupled with innovative product developments, set a promising outlook for the future.