Opera Limited Q2 FY2025 earnings call

• Financials: Second quarter revenue grew 30% y-o-y, ahead of guidance. 17th straight quarter as a Rule of 40 company. Advertising revenue up 44%, e-commerce in Advertising up over 100% y-o-y, Search revenue up 11% y-o-y. - AI Browser (Neon): Set to launch in fall, combines AI use cases with Opera browser's native functionality, targeting knowledge workers. - Opera GX: 33 million MAUs, updated with enhanced tab management, soft launching in South Korea with Japan to follow. - MiniPay: Stablecoin-based wallet with 9 million activated wallets, over 250 million transactions, expanding globally.

The second quarter saw year-over-year revenue growth of 30%. Advertising revenue grew 44% y-o-y to $93 million, with e-commerce within Advertising growing over 100% y-o-y. Search revenue was up 11% y-o-y to $50 million. Opera GX had 33 million MAUs in Q2, up 11% y-o-y with an annualized ARPU of $3.47. MiniPay reached 9 million activated wallets and exceeded 250 million transactions, among the fastest-growing non-custodial wallets globally.

For 2025, revenue is guided at $585M - $597M (22%-24% growth). Adjusted EBITDA is guided at $136M - $140M. Q3 revenue is guided at $146M - $149M (20% growth at midpoint), adjusted EBITDA $34M - $36M.

• Tariff uncertainty impacting e-commerce growth. - Currency fluctuations affecting cost base. - Volatility in cash conversion on a quarterly basis.

Q: On Western market user base vs GX growth.

A: Seasonality and ROI-driven focus, AI helping in Western markets.

Q: Neon product and browser landscape.

A: Browser as preferred AI platform, product-market fit focus, using big language models.

Q: MiniPay monetization.

A: Natural monetization through ecosystem partnerships, similar to Search's model.

Q: Tariff headwinds and Opera GX launch in Asia.

A: Headwinds offset by global growth, GX launch in Asia early stage with monetization potential.

Q: Neon tech stack.

A: Uses big language models from other companies, focuses on context and browser integration.

Q: Perplexity and browser installed base.

A: Opera is a big independent browser with 300M MAUs, involved in relevant discussions.