Opera Limited Q3 FY2025 earnings call

• AI Opportunities: Opera is capitalizing on AI in browsers, with Opera Neon as an early-stage look at future AI-powered browsing. Opera One, GX, and AL have AI solutions. Partnerships have increased public awareness of browser alternatives.
• Product Updates: Opera Neon is tailored for advanced users, Opera One and GX are being updated with AI features. MiniPay has grown noncustodial wallets and transactions. Opera GX has 33 million users and expanded offerings like smart home integration.
• Financial Strength: Third quarter revenue exceeded expectations, adjusted EBITDA was a new record, and the company remains profitable with solid cash generation.

In the third quarter, Opera achieved year-over-year revenue growth of 23%, reaching a new record of $152 million. The annualized ARPU crossed $2 per user, growing 28% year-over-year to $2.13. Adjusted EBITDA was $36.3 million. Opera GX ended the quarter with 33 million users, up 3% year-over-year, and a new annualized ARPU record of $3.69. MiniPay saw the number of noncustodial wallets grow to over 10.5 million, up from 9 million, and transactions increase to almost 310 million from 250 million.

• 2025 Revenue: Raised to $600 million to $603 million, representing 25% growth. Adjusted EBITDA guidance is $138 million to $141 million.
• Q4 Guidance: Revenue expected to be $162 million to $165 million, adjusted EBITDA $37.5 million to $40.5 million. The company expects continued growth and margin expansion in the fourth quarter.

Q: About Neon browser traction and go-to-market strategy A: Neon is invitation-based currently, with plans to open to the broader public soon. It's well-received with media coverage, and go-to-market focuses on engaging existing user base and positioning Neon with other free offerings Q: On e-commerce and Agentic commerce A: E-commerce revenue streams have scaled rapidly, and Opera is well-positioned in online advertising. Agentic commerce is seen as the future, with efficiency and cost-effectiveness being key advantages. MiniPay is part of this strategy with potential partnerships in stablecoin field Q: On advertising growth and partners A: Growth in advertising is driven by working with big e-commerce players by region in revenue share models. The company sees browsers in a good position compared to pure chat-based e-commerce solutions Q: On MiniPay monetization A: MiniPay is revenue-generating, with plans to invest revenue back into marketing and seek partnerships in stablecoin regions to drive further penetration Q: On GX user base and revenue A: GX has 33 million users and still has growth potential with new regions and product launches. Revenue can continue to grow even with a potentially flat user base due to AI upgrades and other product developments