Q2 2024 Opera Ltd Earnings Call Transcript
Key Points
- Opera Ltd (OPRA) reported second-quarter revenue of $110 million, a 17% year-over-year increase, surpassing expectations.
- Adjusted EBITDA for the quarter was $27 million, translating to a 24% margin, also exceeding guidance.
- Advertising revenue grew by 20% year-over-year to $65 million, driven by high-ARPU user growth and expanding monetization opportunities.
- Opera GX, the gaming browser, saw a 27% year-over-year user growth, reaching over 30 million monthly active users.
- The company raised its full-year revenue guidance to $461 million to $467 million, reflecting strong performance and a solidified outlook for the second half of the year.
- Foreign exchange (FX) headwinds impacted year-over-year growth, which would have been 25% on a constant currency basis.
- Marketing costs are expected to increase in the second half of the year, potentially impacting margins.
- The Western market user base remained flat sequentially, indicating potential seasonality or insufficient marketing spend.
- The company faces ongoing regulatory challenges, particularly with the Digital Markets Act (DMA) and its implications for default browser settings.
- There is uncertainty regarding the long-term impact of the Google antitrust ruling on search revenue, which could affect future financial performance.
Good day and welcome to the Opera Limited second-quarter 2024 earnings call. (Operator Instructions)
I would now like to turn the call over to your speaker today, Matt Wolfson, Head of Investor Relations. Please begin.
Thank you for joining us. This morning, I am joined by our co-CEO, Song Lin; and our CFO, Frode Jacobsen.
Before I hand over the call to Song Lin, I would like to remind you that some of the statements that we make today regarding our business, operations, and financial performance may be considered forward looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to the Safe Harbor statement in our earnings release and our Form 20-F including the risk factors. We undertake no obligation to update any forward-looking statement.
During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is
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