Opera Ltd. Q4 FY2024 earnings call

• Business and revenue momentum: E - commerce opportunities have driven growth that has exceeded expectations. Year - over - year revenue growth shifted from 17% in the first half of 2024 to 29% in the fourth quarter, surpassing the guidance. - User growth: Western market user count increased by 3.5 million. North America and Europe now account for nearly 19% of the user base. The annualized ARPU reached $1.98, a record figure. - Product releases: The latest versions of Opera GX and Opera One were launched. New releases offer users the latest features and design elements, generate media coverage, and optimize the onboarding experience. Opera Air, a PC browser focused on mindfulness, was introduced. - Opera Ads: It had a strong fourth quarter, driven by intent - based audience monetization, which makes use of intent signals and partner inventories.

In the fourth quarter, advertising revenue was $93 million, showing a 38% year - over - year growth. Search revenue stood at $52 million, with a 17% year - over - year increase. iOS user growth in 2024 was over 30%, and Opera more than doubled its user count in the EU. Opera GX had a Q4 user base of 33.9 million MAUs, which was a 22% year - over - year rise. The annualized ARPU grew by 33% year - over - year to $1.98, reaching a record high.

• For Q1 2025: There is an expectation of a continued 29% year - over - year revenue growth at the midpoint, with a revenue range of $130 million to $133 million. The adjusted EBITDA is expected to be in the range of $28 million to $30 million. - For 2025 full - year: The revenue is anticipated to be between $555 million and $570 million, and the adjusted EBITDA is expected to be in the range of $132 million to $138 million.

Statements regarding the business, operations, and financial performance are forward - looking and are subject to numerous risks and uncertainties. Actual results may differ significantly. Reference should be made to the safe - harbor statement in the earnings press release and the Annual Report, which include risk factors.

Q: Based on the remarks, talk about the rise of Agentic AI and how the product and platform might evolve.

A: Song Lin stated that as a browser, they are more concerned with how to design the best way for user interaction and agent efficiency using the browser architecture. There are upcoming PI releases, and AI is integrated into various workflows.

Q: Talk about the strengthened search and Google renewal.

A: Frode Jacobsen mentioned that search experienced strong growth. Regarding Google renewal, they expect to extend the partnership in the second half of 2025.

Q: Talk about the growth drivers of the ad tech business.

A: Song Lin said it is about deepening relationships, especially around e - commerce, and good execution with the help of AI has led to more budget than anticipated.

Q: Talk about iOS penetration in Europe and the U.S.

A: Song Lin said there were spikes in both Europe and the U.S. Europe is driving more open competition, and the U.S. is also seeing growth.

Q: Talk about the trend of the search versus advertising revenue split.

A: Frode Jacobsen said search growth is less volatile, and the growth rate of advertising will remain higher than that of search.

Q: Talk about the seasonality of the advertising business and customer concentration.

A: Frode Jacobsen said bigger sequential movements are likely in the second half of 2025, and customer concentration is more diversified.

Q: Talk about the view on DeepSeek and the search function in the browser.

A: Song Lin said they have incorporated DeepSeek into their models. They believe that search will become smarter within the browser context regardless of the interaction form.