Opera (OPRA) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $123.2 million, up 20% year-over-year, with both revenue and Adjusted EBITDA surpassing guidance.

• Continued innovation in browser products, including the launch of Opera One R2 with enhanced AI and productivity features.

• Focused on high-value, high-ARPU users, especially in Western markets, leading to significant ARPU growth.

• 14 consecutive quarters of Rule of 40+ performance, combining revenue growth and adjusted EBITDA margin.

• Full-year 2024 revenue and adjusted EBITDA guidance raised, targeting 19% year-over-year growth at midpoint.

Financial highlights

• Q3 2024 revenue reached $123.2 million, a 20% year-over-year increase; annualized ARPU grew 27% to $1.66.

• Adjusted EBITDA was $31 million (25% margin); net income was $17.9 million (15% margin).

• Advertising revenue was $77 million, up 26% year-over-year, making up 62% of total revenue; search revenue was $46.3 million, up 13%.

• Operating cash flow hit an all-time high at $34.9 million (113% of adjusted EBITDA); free cash flow from operations was $29.7 million (97% of adjusted EBITDA).

• Cash and cash equivalents at quarter-end totaled $106.0 million.

Outlook and guidance

• Q4 2024 revenue guidance is $135–$138 million (21% year-over-year growth); adjusted EBITDA guidance is $30–$32 million.

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

• Management reaffirmed guidance and remains focused on high-ARPU user growth and leveraging AI and gaming trends.

• Marketing spend to increase in Q4 to support new product launches and capitalize on seasonal opportunities.