Opera (OPRA) Q3 2024 earnings summary

Executive summary

• Revenue reached $123.2 million in Q3 2024, up 20% year-over-year, surpassing guidance and expectations.

• Adjusted EBITDA was $31 million (25% margin), exceeding guidance.

• Strong momentum in e-commerce and travel advertising, with e-commerce initiatives driving significant gains.

• User growth and engagement in Western markets led to higher ARPU, especially among high-value users.

• Product innovation continued with the launch of Opera One R2 and enhanced AI integration.

Financial highlights

• Advertising revenue was $77 million, up 26% year-over-year, comprising 62% of total revenue.

• Search revenue reached $46.3 million, up 13% year-over-year.

• Annualized ARPU hit a record $1.66, up 27% year-over-year.

• Operating cash flow was $34.9 million (113% of adjusted EBITDA); free cash flow from operations was $29.7 million.

• Net income was $17.9 million (15% margin), with diluted earnings per ADS at $0.20.

Outlook and guidance

• Q4 2024 revenue guidance is $135–$138 million, representing 21% year-over-year growth at the midpoint.

• Q4 Adjusted EBITDA guidance is $30–$32 million, with a 23–24% margin.

• Full-year 2024 revenue guidance raised to $470–$473 million (19% growth at midpoint); Adjusted EBITDA guidance increased to $112–$114 million (24% margin).

• Marketing spend to increase in Q4, especially to support new product launches.

• Management reaffirmed guidance for Q4 and full-year 2024, focusing on high-ARPU users and leveraging AI and gaming trends.