Opera (OPRA) Q2 2024 earnings summary

Executive summary

• Revenue and adjusted EBITDA exceeded guidance, with Q2 revenue reaching up to $120 million and adjusted EBITDA up to $27 million, both reflecting a 24% margin.

• Growth was driven by product innovation, AI integration, and targeted user adoption, especially in high-value Western and gaming segments.

• Monetization is led by advertising and search, with a proven profitable growth model and 13 consecutive quarters of Rule of 40+ performance.

• Full-year revenue and adjusted EBITDA guidance raised to 17% growth and 24% margin at midpoints.

Financial highlights

• Q2 2024 revenue reached up to $120 million, with advertising revenue up to $65 million (20% YoY growth) and search revenue up to $45 million (15% YoY growth).

• Net income for Q2 was $19.3 million (18% margin), and diluted EPS was $0.22, up 46% year-over-year.

• ARPU grew 25% year-over-year to $1.46, and has increased 4.5x over four years, reaching $1.61 in Q2 2024.

• Operating cash flow was $17.4 million (65% of adjusted EBITDA); free cash flow from operations was $13.5 million (51% of adjusted EBITDA).

• Cash and cash equivalents at quarter end totaled $104.4 million.

Outlook and guidance

• Full-year 2024 revenue guidance is $461–$467 million (17% growth at midpoint); adjusted EBITDA guidance is $110–$113 million (24% margin at midpoint).

• Q3 2024 revenue expected at $119–$121 million (17% growth at midpoint); adjusted EBITDA at $27.0–$28.5 million (23% margin at midpoint).

• Focus remains on growing high-ARPU users in Western markets and leveraging AI-driven innovation.

• Marketing spend expected to increase in the second half to support new product launches and user acquisition.