Opera Limited (Nasdaq: OPRA) (“Opera”), one of the world’s leading
browser providers and an influential player in the field of content
platforms, today announced its unaudited consolidated financial
results for the quarter ended March 31, 2019.
|
First
quarter 2019 financial highlights |
|
|
First quarter |
|
Year-over- |
|
[US$ thousands, except for margins and per ADS amounts] |
2018 |
|
2019 |
|
year %change |
|
Revenue |
39,446 |
|
51,275 |
|
30.0 |
% |
|
|
|
|
|
|
|
Net income (loss) |
6,619 |
|
5,384 |
|
-18.7 |
% |
Margin |
16.8 |
% |
10.5 |
% |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1) |
15,613 |
|
11,038 |
|
-29.3 |
% |
Margin |
39.6 |
% |
21.5 |
% |
|
|
|
|
|
|
|
|
|
Adjusted net income (1) |
9,870 |
|
7,753 |
|
-21.5 |
% |
Margin |
25.0 |
% |
15.1 |
% |
|
|
|
|
|
|
|
|
|
Diluted net income per ADS,
US$ |
0.068 |
|
0.048 |
|
-29.1 |
% |
|
|
|
|
|
|
|
Diluted adjusted net income
per ADS, US$ (1) |
0.101 |
|
0.069 |
|
-31.7 |
% |
|
|
|
|
|
|
|
Mr. Frode Jacobsen, Opera’s CFO, said, “We are very pleased with
our strong first quarter results and our continued track record of
consistent execution and growth. Revenue grew 30% year-over-year,
exceeding the top-end of our guidance. MAUs grew both
quarter-over-quarter and year-over-year with Opera products now
surpassing 350 million monthly users. And finally, we exceeded the
top-end of our adjusted EBITDA guidance range while investing
significantly in future growth.
“Our efforts to build on our strong position in Africa and
emerging Asian markets, to create leadership beyond browsers, is
showing significant progress. Opera News has reached the 150
million monthly active user milestone, and our microlending fintech
offering, including OKash and other apps, is already delivering
over $25 million in annual run rate revenue. Further, we continue
to grow our browser user base, with high overall growth in the
first quarter and an expectation for the remainder of the year to
focus on markets where we believe that a differentiated offering
and high monetization will lead to financial upside.”
(1) Please see the separate section “About non-IFRS financial
measures” for the definitions of adjusted EBITDA and adjusted net
income.
First quarter 2019 user base and product
highlights(All comparisons are relative to the first
quarter of 2018 unless otherwise stated)
- Opera News average Monthly Active Users (“MAUs”) grew 66% to
149.9 million
- The Opera News app, launched in January 2018, reached
approximately 32 million average MAUs, up 62% from the prior
quarter
- Total smartphone average MAUs grew 20% to 221.6 million
- PC average MAUs grew 13% to 65 million
Mr. Lin Song, Opera’s COO, said, “We are pleased with our strong
user growth and continued product innovation this quarter. In
particular, we delivered user growth in both our smartphone and PC
browsers, and for Opera News, both on a quarter-over-quarter and
year-over-year basis. We now have 222 million average active
smartphone users and 65 million average PC users.
“We continue to prioritize growing our Opera News user base,
both through our browser offerings and the dedicated Opera News
app. This quarter, we reached 150 million monthly active users for
Opera News and our dedicated app exceeded 30 million monthly active
users, which represented 62% growth versus the prior quarter. These
strong results were underpinned by product improvements and
expanding local AI assisted editorial teams to new geographies,
from an initial focus on Nigeria, Kenya and South Africa, to the
Ivory Coast to better serve French speaking African countries, as
well as Egypt for North Africa. We have also expanded our presence
in India and Indonesia successfully following the same model.
Moreover, we have initiated additional marketing efforts, including
TV campaigns now running in Africa to bolster our strong momentum
and help us build Opera News into a large contributor to both
revenue and profit over the next several years, especially as
monetization builds.
“When it comes to monetization, a top priority is to build our
monetization capabilities in order to achieve stronger ARPUs in
emerging markets. Just last week, we launched Opera Ads. Based on
user intent and contextual relevance, Opera Ads offers an
intelligent advertising solution to digital agencies, advertisers
and brands to connect and engage directly with the Opera audiences.
Opera Ads is available in both traditional and programmatic buying
models, and would be a strong alternative to advertisers in key
regions where we are big, e.g. sub-Saharan Africa. We have had
early pilot programs on Opera Ads already with our key partners,
where we are able to see significant growth potentials. While we
still focus on product improvement and user growth, getting
monetization right in our dedicated Opera News app is of high
strategic importance to us. We are encouraged by early success,
with per daily active user advertising revenue increasing by over
30% over the prior quarter. We expect the combination of Opera Ads,
increased ad serving in Opera News and other initiatives to benefit
monetization and lead to acceleration in our year-over-year
advertising growth rates during the remainder of the year.
“We are also pleased with the strong results obtained within
OKash, the fintech business that was acquired by Opera at the end
of 2018. We have made tremendous progress scaling the business,
taking it to nearly four times the size it was in the fourth
quarter of 2018. As a result, we exceeded our expectations both in
terms of revenue and profit contribution. We believe there is
tremendous potential to scale the platform further and we are
planning to expand our offering beyond Kenya in the second half of
the year, again benefiting from our browser footprint and strong
brand.
“On the browser side, we continue to focus on product
differentiation, including privacy and security. Opera for Android,
which is a high-end alternative to default browsers, is now
launched with a free and easy to use VPN, seeing a year-to-year
growth of 38% and quarter-to-quarter growth of 15%. We have also
published a redesigned PC browser codenamed R3, becoming the first
PC browser with Web 3 support, powering a year-to-year PC
browser MAU growth of 14% in a mature market. Opera has always
led the way with innovation - and we are always working on the next
improvement we can bring to our current and new users.”
Business outlook
Mr. Frode Jacobsen, Opera’s CFO, said, “In light of the success
we achieved during the first quarter and the large opportunities in
front of us, we have quantified our investment expectations and
believe it is prudent to focus on accelerating growth in the
near-term. We expect this move will build scale faster, support a
higher revenue base and lead to higher profit in future years than
we would have otherwise achieved. As such, we expect to make
additional investments of approximately $35 - $40 million in
incremental marketing and distribution over the remainder of 2019.
Much of this will focus on Opera News, where we believe strongly in
the strategic benefit of accelerating user adoption in our priority
markets. In parallel, we will be focused on monetization
capabilities to maximize our long-term returns. Given our strong
momentum and increased investment, we are increasing the midpoint
of our 2019 revenue growth guidance by 500 basis points to 36%
versus 2018 and expect second quarter revenue growth rates to
accelerate to 33% to 43%, compared to 30% in the first
quarter.”
As a result, Opera expects full year and second quarter 2019
revenue and adjusted EBITDA to be in the following ranges:
Full Year:
- Revenue of $230 - $240 million, or 34% - 39% year-over-year, an
increase from our previous guidance of $220 - $230 million.
- Adjusted EBITDA of $30 - $45 million, which includes
approximately $35 - $40 million of incremental marketing
investments over the remainder of 2019.
Second Quarter:
- Revenue of $53 - $57 million, or 33% - 43% growth versus
the second quarter of 2018, representing an acceleration in revenue
growth compared to the first quarter. Advertising and fintech
revenues are expected to be the most important growth drivers.
- Adjusted EBITDA of $2 - $5 million. This includes a
further increase of marketing investments in Opera News and
browsers compared to the recent quarter.
First quarter 2019 consolidated financial
results
All comparisons in this section are relative to the first
quarter of 2018 unless otherwise stated.
Revenue increased 30.0% to $51.3 million.
- Search revenue increased 1.8% to $20.6 million, or increased by
an estimated 5.3% on a constant currency basis. Growth was stronger
on the PC platform, while we have focused on growing Opera News
adoption on mobile.
- Advertising revenue increased 9.5% to $14.1 million, or
increased by an estimated 10.2% on a constant currency basis.
Advertising revenue growth was driven by
both smartphone and PC products, however, we expect an
acceleration of this revenue stream through 2019 as our new product
monetization efforts pick up scale.
- Fintech revenue was $6.5 million. This business has performed
ahead of our expectations as we were able to nearly quadruple its
scale from the prior quarter when Opera acquired it.
- Retail revenue was $6.8 million. We continue to expect retail
revenue to stabilize around this level in the near-term prior to
potentially exploring a wider retail opportunity.
- Technology licensing and other revenue decreased 48% to $3.3
million, in line with expectations as we prioritized other scalable
revenue types.
Operating expenses increased 54.4% to $45.8
million. Operating expenses represented 89.4% of operating revenue
in first quarter of 2019, compared to 75.2% in the first quarter of
2018.
- Cost of revenue was $7.8 million, compared to $0.7 million in
the first quarter of 2018. Within the total, $6.8 million related
to retail revenue, $0.5 million related to microlending and $0.6
million related to the browser and news business area.
- Personnel expenses, including share-based remuneration, were
$11.1 million, a 0.1% decline. This expense consists of cash-based
compensation expense of $9.7 million, an 11.6% increase, largely
explained by increased headcount, and share-based remuneration
expense of $1.4 million, a 41.3% decrease from $2.4 million. The
reduction in share-based remuneration was primarily related to a
decrease in related social security costs.
- Marketing and distribution expenses were $14.7 million, an
increase of 100.1% following our decision to further invest in
accelerating our growth in 2019.
- Credit loss expense was $1.9 million, of which $1.7 million
related to our fintech microlending business, compared to a gain of
$0.2 million from accrual reversals in the first quarter of
2018.
- Depreciation and amortization expenses were $4.1 million, a
22.3% increase. The increase is largely the result of the adoption
of IFRS 16 Leases on January 1, 2019.
- Other expenses were $6.2 million, a 15.5% decrease.
Operating profit was $5.5 million in the
quarter, representing an operating margin of 10.6%, compared to
$9.8 million and a 24.8% margin in the first quarter of 2018. The
decline was largely due to the increased investment in marketing
and distribution activities in the quarter.
Income tax expense was $0.7 million in the
quarter, compared to $2.3 million in the first quarter of 2018. Our
effective tax rate was 12.1% in the first quarter of 2019. The
reduction in the Norwegian statutory tax rate from 23% in 2018 to
22% in 2019 as well as the effect of lower tax rates applied by
subsidiaries in the group contributed to the reduced tax expense in
the quarter.
Net income was $5.4 million in the quarter,
compared to $6.6 million in first quarter of 2018.
Net income per ADS was $0.049 in the quarter,
and $0.048 on a diluted basis. Adjusted net income per
ADS was $0.071 in the quarter, and $0.069 on a diluted
basis. Each ADS represents two shares in Opera Limited. In the
quarter, the average number of shares outstanding was 218.78
million, corresponding to 109.39 million ADSs.
Adjusted EBITDA was $11.0 million, representing
a 21.5% adjusted EBITDA margin compared to $15.6 million in first
quarter of 2018, representing a 39.6% margin. Adjusted EBITDA
excludes share-based remuneration.
Adjusted Net Income was $7.8 million in the
quarter, representing a 15.1% adjusted net margin compared to $9.9
million in first quarter of 2018, representing a 25.0% margin.
Adjusted net income excludes share-based remuneration and
amortization of intangible assets related to acquisitions (all of
which relates to the Opera privatization in 2016). Adjusted net
income further includes partially offsetting reversals of the tax
impacts of the foregoing adjustments.
Conference call
Opera’s management team will host a conference call at 8:00 AM
U.S. Eastern Time (2:00 PM Central European Time, 9:00 PM
Beijing/Hong Kong time) on Wednesday, May 22, 2019.
The dial-in details for the live conference call are:
United States: +1 (877) 506-7703China: +86 400 682 8609Hong
Kong: +852 3011 4522Norway: +47 2231 0524United Kingdom: +44 (0)203
107 0289International: +1 (786) 815-8450Confirmation Code:
3690717
A live webcast of the conference call will be posted at
https://investor.opera.com.
About non-IFRS financial measures
To supplement our consolidated financial statements, which are
prepared and presented based on IFRS, we use adjusted EBITDA and
adjusted net income, both non-IFRS financial measures, to
understand and evaluate our core operating performance. These
non-IFRS financial measures, which may differ from similarly titled
measures used by other companies, are presented to enhance
investors’ overall understanding of our financial performance and
should not be considered a substitute for, or superior to, the
financial information prepared and presented in accordance with
IFRS.
We define adjusted EBITDA as net income (loss) excluding income
tax expense (benefit), net finance expense (income), share of net
loss (income) of associates and joint ventures, restructuring
costs, depreciation and amortization, share-based remuneration and
expensed costs related to our recent initial public offering, less
other income.
We define adjusted net income as net income excluding
share-based remuneration, amortization of acquired intangible
assets, and expensed costs related to our recent initial public
offering.
We believe that adjusted EBITDA and adjusted net income provide
useful information to investors and others in understanding and
evaluating our operating results. These non-IFRS financial measures
adjust for the impact of items that we do not consider indicative
of the operational performance of our business. While we believe
that these non-IFRS financial measures are useful in evaluating our
business, this information should be considered as supplemental in
nature and is not meant as a substitute for the related financial
information prepared and presented in accordance with IFRS. Please
refer to our financial statements at the end of this announcement
for a table reconciling our non-IFRS financial measures to net
income (loss), the most directly comparable IFRS financial
measure.
Safe harbor statement
This press release contains statements of a forward-looking
nature. These statements, including statements relating to the
Company’s future financial and operating results, are made under
the “safe harbor” provisions of the U.S. Private Securities
Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as “will,”
“expects,” “believes,” “anticipates,” “intends,” “estimates” and
similar statements. Among other things, management’s quotations and
the Business outlook section contain forward-looking statements.
These forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations,
assumptions, estimates and projections about Opera and the
industry. Potential risks and uncertainties include, but are not
limited to, those relating to its goals and strategies; its
expected development and launch, and market acceptance, of its
products and services; its expectations regarding demand for and
market acceptance of our brand, platforms and services; our
expectations regarding growth in our user base and level of
engagement; its ability to attract, retain and monetize users; its
ability to continue to develop new technologies and/or upgrade our
existing technologies and quarterly variations in its operating
results caused by factors beyond its control and global
macroeconomic conditions and its potential impact in the markets it
has businesses. All information provided in this press release is
as of the date hereof, and Opera undertakes no obligation to update
any forward-looking statements to reflect subsequent occurring
events or circumstances, or changes in its expectations, except as
may be required by law. Although Opera believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that its expectations will turn
out to be correct, and investors are cautioned that actual results
may differ materially from the anticipated results. Further
information regarding risks and uncertainties faced by Opera is
included in Opera’s filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form F-1 filed
in connection with its initial public offering.
About Opera
Founded in 1995 in Norway, Opera delivers browsers and AI-driven
digital content platforms to more than 350 million people
worldwide. The company remains one of the most innovative browser
creators in the world. Opera is listed on Nasdaq under the OPRA
ticker symbol.
Investor Relations Contact:
Derrick Nuemaninvestor-relations@opera.com or (408) 596-3055
For media enquiries, please contact: press-team@opera.com
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS |
|
|
Three Months Ended March 31, |
|
Three Months Ended March 31, |
|
[US$ thousands, except per
share and ADS amounts] |
2018 |
|
2019 |
|
Revenue |
39,446 |
|
51,275 |
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
Cost of revenue |
(678 |
) |
(7,796 |
) |
Personnel expenses including
share-based remuneration |
(11,110 |
) |
(11,104 |
) |
Marketing and distribution
expenses |
(7,338 |
) |
(14,686 |
) |
Credit loss expense |
215 |
|
(1,856 |
) |
Depreciation and
amortization |
(3,388 |
) |
(4,142 |
) |
Other expenses |
(7,370 |
) |
(6,232 |
) |
Total operating
expenses |
(29,669 |
) |
(45,815 |
) |
|
|
|
|
|
Operating profit
(loss) |
9,776 |
|
5,460 |
|
|
|
|
|
|
Share of net income (loss) of
associates and joint ventures |
(1,009 |
) |
(1,024 |
) |
|
|
|
|
|
Net finance income
(expense) |
|
|
|
|
Finance income |
95 |
|
1,692 |
|
Finance expense |
(34 |
) |
(154 |
) |
Net foreign exchange gain
(loss) |
81 |
|
153 |
|
Net finance income
(expense) |
142 |
|
1,691 |
|
|
|
|
|
|
Net income (loss)
before income taxes |
8,909 |
|
6,126 |
|
Income tax (expense)
benefit |
(2,289 |
) |
(742 |
) |
Net income
(loss) |
6,619 |
|
5,384 |
|
|
|
|
|
|
Net income (loss)
attributable to: |
|
|
|
|
Equity holders of the
parent |
6,619 |
|
5,384 |
|
Non-controlling interests |
- |
|
- |
|
Total net income
(loss) attributed |
6,619 |
|
5,384 |
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding |
|
|
|
|
Basic, millions(1) |
190.25 |
|
218.78 |
|
Diluted, millions(2) |
195.33 |
|
223.96 |
|
|
|
|
|
|
Net income (loss) per
ordinary share |
|
|
|
|
Basic, US$ |
0.035 |
|
0.025 |
|
Diluted, US$ |
0.034 |
|
0.024 |
|
|
|
|
|
|
Net income (loss) per
ADS |
|
|
|
|
Basic, US$ |
0.070 |
|
0.049 |
|
Diluted, US$ |
0.068 |
|
0.048 |
|
|
(1) Assuming 200
million shares in Opera Limited were outstanding for all periods
presented prior to the Initial Public Offering (IPO), less
9.75 million shares that were surrendered by two shareholders upon
completion of the IPO. As of March 31, 2019, the total number
of shares outstanding for Opera Limited was 220,576,326, equivalent
to 110,288,163 ADSs. |
|
(2) Includes the
net dilutive impact of employee equity awards. |
|
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS) |
|
|
Three Months Ended March 31, |
|
Three Months Ended March 31, |
|
[US$ thousands] |
2018 |
|
2019 |
|
Net income
(loss) |
6,619 |
|
5,384 |
|
|
|
|
|
|
Other comprehensive
income (loss) that may be reclassified to the Statement of
Operations in subsequent periods (net of tax) |
|
|
|
|
Exchange differences on
translation of foreign operations |
404 |
|
(345 |
) |
Share of other comprehensive
income (loss) of associates and joint ventures |
- |
|
(34 |
) |
Net other
comprehensive income (loss) that may be reclassified to the
Statement of Operations in subsequent periods |
404 |
|
(379 |
) |
Total comprehensive
income (loss) |
7,024 |
|
5,005 |
|
|
|
|
|
|
Total comprehensive
income (loss) attributable to: |
|
|
|
|
Equity holders of the
parent |
7,024 |
|
5,005 |
|
Non-controlling interests |
- |
|
- |
|
Total comprehensive
income (loss) attributed |
7,024 |
|
5,005 |
|
|
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION |
|
|
As of December 31, |
|
As of March 31, |
|
[US$ thousands] |
2018 |
|
2019 |
|
ASSETS |
|
|
|
|
Non-current
assets |
|
|
|
|
Furniture, fixtures and equipment |
12,162 |
|
26,293 |
|
Intangible assets |
115,444 |
|
114,506 |
|
Goodwill |
421,578 |
|
421,578 |
|
Investments in associates and joint ventures |
35,060 |
|
36,402 |
|
Other financial assets |
2,025 |
|
2,531 |
|
Deferred tax assets |
944 |
|
585 |
|
Total non-current
assets |
587,213 |
|
601,896 |
|
|
|
|
|
|
Current
assets |
|
|
|
|
Trade receivables |
37,468 |
|
38,959 |
|
Loans to customers |
3,092 |
|
10,269 |
|
Other receivables |
4,031 |
|
3,146 |
|
Prepayments |
14,372 |
|
11,330 |
|
Other financial assets |
1,254 |
|
7,398 |
|
Cash and cash equivalents |
177,873 |
|
169,846 |
|
Total current
assets |
238,090 |
|
240,946 |
|
TOTAL
ASSETS |
825,303 |
|
842,842 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
|
Equity |
|
|
|
|
Share capital |
22 |
|
22 |
|
Other paid in capital |
738,690 |
|
732,910 |
|
Retained earnings |
36,432 |
|
43,014 |
|
Foreign currency translation reserve |
316 |
|
(63 |
) |
Equity attributed to
equity holders of the parent |
775,460 |
|
775,884 |
|
Non-controlling interests |
- |
|
- |
|
Total
equity |
775,460 |
|
775,884 |
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
Lease liabilities and other loans |
2,271 |
|
11,981 |
|
Deferred tax liabilities |
13,358 |
|
14,088 |
|
Other non-current liabilities |
212 |
|
368 |
|
Total non-current
liabilities |
15,841 |
|
26,437 |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
Trade and other payables |
17,957 |
|
23,824 |
|
Lease liabilities and other loans |
2,490 |
|
6,356 |
|
Income tax payable |
1,920 |
|
1,904 |
|
Deferred revenue |
1,932 |
|
1,455 |
|
Other current liabilities |
9,701 |
|
6,983 |
|
Total current
liabilities |
34,002 |
|
40,521 |
|
|
|
|
|
|
Total
liabilities |
49,843 |
|
66,958 |
|
TOTAL EQUITY AND
LIABILITIES |
825,303 |
|
842,842 |
|
|
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY |
|
[US$ thousands] |
Share capital (1) |
|
Other paid incapital
(1) |
|
Retainedearnings |
|
Foreigncurrencytranslationreserve |
|
Total equity |
|
As of December 31,
2017, as previously reported |
19 |
|
576,512 |
|
5,366 |
|
1,605 |
|
583,503 |
|
Impact of new accounting
standards |
- |
|
- |
|
(629 |
) |
- |
|
(629 |
) |
As of January 1, 2018,
restated |
19 |
|
576,512 |
|
4,737 |
|
1,605 |
|
582,874 |
|
Net income (loss) |
- |
|
- |
|
6,619 |
|
- |
|
6,619 |
|
Other comprehensive income
(loss) |
- |
|
- |
|
- |
|
404 |
|
404 |
|
Total comprehensive
income (loss) |
- |
|
- |
|
6,619 |
|
404 |
|
7,023 |
|
Share-based remuneration
expense |
- |
|
- |
|
1,369 |
|
- |
|
1,369 |
|
As of March 31,
2018 |
19 |
|
576,512 |
|
12,726 |
|
2,009 |
|
591,266 |
|
[US$ thousands] |
Share capital (1) |
|
Other paid incapital
(1) |
|
Retainedearnings |
|
Foreigncurrencytranslationreserve |
|
Total equity |
|
As of December 31,
2018 |
22 |
|
738,690 |
|
36,432 |
|
316 |
|
775,460 |
|
Impact of implementing IFRS 16
Leases |
- |
|
- |
|
64 |
|
- |
|
64 |
|
As of January 1, 2019,
restated |
22 |
|
738,690 |
|
36,496 |
|
316 |
|
775,524 |
|
Net income (loss) |
- |
|
- |
|
5,384 |
|
- |
|
5,384 |
|
Other comprehensive income
(loss) |
- |
|
- |
|
- |
|
(379 |
) |
(379 |
) |
Total comprehensive
income (loss) |
- |
|
- |
|
5,384 |
|
(379 |
) |
5,005 |
|
Acquisition of treasury
shares |
- |
|
(5,780 |
) |
- |
|
- |
|
(5,780 |
) |
Share-based remuneration
expense |
- |
|
- |
|
1,134 |
|
- |
|
1,134 |
|
As of March 31,
2019 |
22 |
|
732,910 |
|
43,014 |
|
(63 |
) |
775,884 |
|
|
(1) The amounts
of share capital and other paid in capital have been amended by
reclassifying amounts between the two equity components. |
|
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS |
|
|
Three Months Ended March 31, |
|
Three Months Ended March 31, |
|
[US$ thousands] |
2018 |
|
2019 |
|
Net cash flow from (used in)
operating activities |
4,137 |
|
9,106 |
|
Net cash flow from (used in)
investing activities |
2,451 |
|
(9,694 |
) |
Net cash flow from (used in)
financing activities |
(1,050 |
) |
(7,495 |
) |
|
|
|
|
|
Net change in cash and
cash equivalents |
5,538 |
|
(8,083 |
) |
|
|
|
|
|
Cash and cash equivalents at
beginning of period |
33,207 |
|
177,873 |
|
Net foreign exchange
difference |
555 |
|
56 |
|
Cash and cash
equivalents at end of period |
39,300 |
|
169,846 |
|
|
Financial details by business area
The tables below specify the contribution by each business
area:
|
[US$ thousands] |
|
Three Months Ended March 31, 2018 |
|
Business area |
|
Browser and News |
|
Fintech |
|
Retail |
|
Other |
|
Total |
|
Revenue
categories |
|
|
|
|
|
|
|
|
|
|
|
Search |
|
20,217 |
|
- |
|
- |
|
- |
|
20,217 |
|
Advertising |
|
12,916 |
|
- |
|
- |
|
- |
|
12,916 |
|
Airtime and handsets |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Technology licensing and other
revenue |
|
- |
|
- |
|
- |
|
6,313 |
|
6,313 |
|
Origination fees and
interest |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total
revenue |
|
33,133 |
|
- |
|
- |
|
6,313 |
|
39,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
(678 |
) |
- |
|
- |
|
- |
|
(678 |
) |
Marketing and distribution
expenses |
|
(7,338 |
) |
- |
|
- |
|
- |
|
(7,338 |
) |
Credit loss expense |
|
215 |
|
- |
|
- |
|
- |
|
215 |
|
Direct
expenses |
|
(7,801 |
) |
- |
|
- |
|
- |
|
(7,801 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Contribution by
business area |
|
25,332 |
|
- |
|
- |
|
6,313 |
|
31,645 |
|
[US$ thousands] |
|
Three Months Ended March 31, 2019 |
|
Business area |
|
Browser and News |
|
Fintech |
|
Retail |
|
Other |
|
Total |
|
Revenue
categories |
|
|
|
|
|
|
|
|
|
|
|
Search |
|
20,584 |
|
- |
|
- |
|
- |
|
20,584 |
|
Advertising |
|
14,142 |
|
- |
|
- |
|
- |
|
14,142 |
|
Airtime and handsets |
|
- |
|
- |
|
6,819 |
|
- |
|
6,819 |
|
Technology licensing and other
revenue |
|
- |
|
- |
|
- |
|
3,266 |
|
3,266 |
|
Origination fees and
interest |
|
- |
|
6,464 |
|
- |
|
- |
|
6,464 |
|
Total
revenue |
|
34,726 |
|
6,464 |
|
6,819 |
|
3,266 |
|
51,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
(565 |
) |
(478 |
) |
(6,753 |
) |
- |
|
(7,796 |
) |
Marketing and distribution
expenses |
|
(14,180 |
) |
(506 |
) |
- |
|
- |
|
(14,686 |
) |
Credit loss expense |
|
(132 |
) |
(1,724 |
) |
- |
|
- |
|
(1,856 |
) |
Direct
expenses |
|
(14,876 |
) |
(2,709 |
) |
(6,753 |
) |
- |
|
(24,338 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Contribution by
business area |
|
19,850 |
|
3,755 |
|
66 |
|
3,266 |
|
26,937 |
|
|
Personnel expenses including share-based
remuneration
The table below specifies the amounts of personnel expenses
including share-based remuneration:
|
|
|
|
|
|
[US$ thousands] |
|
Three Months Ended March 31, |
|
Three Months Ended March 31, |
|
Personnel expenses including share-based
remuneration |
|
2018 |
|
2019 |
|
Personnel expenses excluding
share-based remuneration |
|
8,661 |
|
9,667 |
|
Share-based remuneration,
including related social security costs |
|
2,449 |
|
1,437 |
|
Total |
|
11,110 |
|
11,104 |
|
|
Other expenses
The table below specifies the nature of other expenses:
|
[US$ thousands] |
|
Three Months Ended March 31, |
|
Three Months Ended March 31, |
|
Other expenses |
|
2018 |
|
2019 |
|
Hosting |
|
2,618 |
|
1,527 |
|
Audit, legal and other
advisory services |
|
2,248 |
|
1,634 |
|
Software license fees |
|
380 |
|
552 |
|
Rent and other office
expenses |
|
1,122 |
|
1,124 |
|
Travel |
|
520 |
|
579 |
|
Other |
|
483 |
|
817 |
|
Total |
|
7,370 |
|
6,232 |
|
|
Non-IFRS financial measures
The following table presents reconciliations of adjusted EBITDA
and adjusted net income to net income (loss), the most directly
comparable IFRS financial measure, for the periods indicated:
|
|
Three Months Ended March 31, |
|
Three Months Ended March 31, |
|
[US$ thousands, except per
share and ADS amounts] |
2018 |
|
2019 |
|
Reconciliation of net income
(loss) to adjusted EBITDA |
|
|
|
|
Net income
(loss) |
6,619 |
|
5,384 |
|
Add: Income tax expense
(benefit) |
2,289 |
|
742 |
|
Add: Net finance expense
(income) |
(142 |
) |
(1,691 |
) |
Add: Share of net loss
(income) of associates and joint ventures |
1,009 |
|
1,024 |
|
Add: Depreciation and
amortization |
3,388 |
|
4,142 |
|
Add: Share-based
remuneration |
2,449 |
|
1,437 |
|
Adjusted
EBITDA |
15,613 |
|
11,038 |
|
|
|
|
|
|
Reconciliation of net income
(loss) to adjusted net income |
|
|
|
|
Net Income
(loss) |
6,619 |
|
5,384 |
|
Add: Share-based
remuneration |
2,449 |
|
1,437 |
|
Add: Amortization of acquired
intangible assets |
1,280 |
|
1,280 |
|
Income tax adjustment (1) |
(478 |
) |
(348 |
) |
Adjusted net
income |
9,870 |
|
7,753 |
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding |
|
|
|
|
Basic, millions |
190.25 |
|
218.78 |
|
Diluted, millions |
195.33 |
|
223.96 |
|
|
|
|
|
|
Adjusted net income
(loss) per ordinary share |
|
|
|
|
Basic, US$ |
0.052 |
|
0.035 |
|
Diluted, US$ |
0.051 |
|
0.035 |
|
|
|
|
|
|
Adjusted net income
(loss) per ADS |
|
|
|
|
Basic, US$ |
0.104 |
|
0.071 |
|
Diluted, US$ |
0.101 |
|
0.069 |
|
|
(1) Reversal of
tax benefit related to the social security cost component of
share-based remuneration and deferred taxes on
the amortization of acquired intangible assets. |
|
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