Opera Q4: Tops Quarter Backed By PC Footprint In West, Opera Ads

Opera Ltd OPRA reported fourth-quarter FY22 revenue growth of 32.6% year-on-year to $96.27 million Monday, beating the consensus of $90.24 million.

• Search revenue increased by 12% Y/Y to $39 million, driven by PC footprint in western markets.
• Advertising revenue rose 55% Y/Y to $56.8 million, supported by the Opera Ads platform.
• Technology licensing and other revenue was $0.5 million.
• Opera reached 324 million monthly active users. The Opera GX browser user base had over 20 million users across PC and mobile.
• Operating expenses increased 22% Y/Y. The adjusted EBITDA margin was flattish at 23.8%.
• Adjusted EPS of $0.27 beat the consensus of $0.17.
• Opera held $118.66 million in cash and equivalents and generated $23.5 million in operating cash flow.
• Co-CEO Song Lin said, "In a year with a great deal of geo-political and macroeconomic uncertainty, Opera delivered 32% revenue growth for FY 2022 and increased its adjusted EBITDA margin to 21%, up 9 percentage points versus 2021. Building upon the success we have experienced by focusing on users which yield greater monetization opportunities, whether due to geographic focus and platform broadening or through high engagement products such as the Opera GX browser, we have driven ARPU to new highs."
• "And finally, our consistent discipline around operating expenses ensured healthy margin expansion in accordance with our plans," continued Mr. Song.
• Outlook: Opera expects Q1 revenue of $83 million - $85 million.
• It sees FY23 revenue of $370 million - $390 million.

Price Action: OPRA shares closed lower by 0.14% at $7.31 on Friday.

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