Opera Ltd. Q1 FY2025 earnings call

• Revenue growth: First quarter revenue grew 40% YOY to $143 million, outperforming prior guidance, driven by advertising and e-commerce. Advertising revenue was $96 million, with e-commerce as the fastest growing vertical. Search revenue was $47 million, growing 8%. • Profitability: Adjusted EBITDA was $32 million, with a margin of 23%, showing accelerated top-line growth without sacrificing profit margins. • Product updates: Significant updates to Opera One and GX, browser operator demo showcasing travel bookings and flower ordering, and Opera Air launched with over 0.5 million downloads in its first two months. • User focus: Focus on users with high value potential, maintaining 293 million MAUs.

In the first quarter of 2025, Opera's revenue was $143 million, a record for the quarter. Advertising revenue was $96 million, growing 3% and representing two-thirds of total revenue. Search revenue was $47 million, growing 8% year-over-year. Adjusted EBITDA was $32 million with a margin of 23%. The user base remained relatively stable at 293 million MAUs.

• Raised 2025 revenue guidance to $567 million to $582 million (20% midpoint growth) from prior $555 million to $570 million. • Adjusted EBITDA guidance for 2025 is $135 million to $140 million. • Q2 2025 revenue guidance is $134 million to $138 million, with adjusted EBITDA guidance of $30 million to $32 million.

• Macro volatility affecting the market, particularly in the U.S. where advertisers face greater uncertainty. • Currency headwinds, with the U.S. dollar acting as a headwind in constant currency, estimated to reduce growth by 5-6 percentage points in constant currency terms.

Q: How to think about search growth slowing and its impact on full year?

A: Shift to intent-based targeting and advertisement, with e-commerce growth offsetting seasonality, but overall optimistic about continued growth.

Q: On GX ARPU decline and currency?

A: GX ARPU affected by seasonality and AI-driven intent placement; currency (U.S. dollar) acts as a headwind, with growth 5-6 percentage points higher on constant currency.