The following is a summary of the Opera Limited (OPRA) Q1 2024 Earnings Call Transcript:
Financial Performance:
Opera reported a revenue of $102 million for Q1 2024, surpassing its initial forecast.
A notable increase was observed in both search and advertising revenue, rising by 14% to $43 million, and by 21% to $59 million respectively.
The company's adjusted EBITDA stands at $25 million, marking a margin of 24%.
Opera's 9.4% stake in OPay has an estimated worth of $253 million.
Revenue targets for Q2 stand between $107 million to $109 million, while adjusted EBITDA is expected to be $22 million to $25 million.
The company exhausted their last $50 million buyback plan.
Marketing spend is set to increase by $1 million to $2 million per quarter for the rest of the year, following a 2% decrease from Q4 in Q1's expenditure, which aligns with earlier expectations.
Business Progress:
Opera observed user growth in high ARPU markets, with the annualized ARPU going up by 24% to $1.34.
Success was noted in the implementation of new features like the AI feature, Aria, and the GX browser, hitting 29.5 million users.
The company is preparing for iOS investments following the enforcement of the Digital Markets Act in the EU.
Opera's AI cloud store in Iceland, which is powered entirely by renewable energy, is completely functional. The company foresees continued growth while maintaining a yearly adjusted EBITDA margin of 24%.
The company's AI-focused browser, Opera One, has been expanded to support 150 local models, with the most popular ones being Llama, Gamma, and Llama 3.
Following DMA implementation, more users are defaulting to the Opera browser, causing an uptake in user activities.
Efforts will be continued to elevate awareness and recognition of Opera GX in new territories.
More details: Opera IR
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