Opera (OPRA) Q4 2024 earnings summary

Executive summary

• Achieved 29% year-over-year revenue growth in Q4 2024 to $145.8M, surpassing guidance, with full-year revenue up 21% to $480.6M.

• Advertising revenue grew 38% year-over-year, with e-commerce within Opera Ads up 17% and search revenue up 17%.

• User base stable at 296M MAUs, with Western markets and Opera GX browser driving high-ARPU user growth; Opera GX MAUs reached 34M, up 22% year-over-year.

• Product innovation included launches of Opera One R2, Opera GX facelift, Opera Aria/Air, and strong AI feature integration.

• Opera maintained 15 consecutive quarters of Rule of 40+ performance, highlighting consistent growth and profitability.

Financial highlights

• Adjusted EBITDA for Q4 was $33M (23% margin), exceeding guidance; full-year adjusted EBITDA was $115.3M (24% margin).

• Q4 advertising revenue was $93.3M (64% of total); search revenue was $52.3M (36% of total).

• Net cash flow from operating activities was $21.6M in Q4 and $105.0M for 2024 (91% conversion from adjusted EBITDA).

• Free cash flow from operations was $70.2M for 2024, or 77% of adjusted EBITDA excluding a $19.1M AI cluster investment.

• Returned ~$442M to shareholders since 2020 through buybacks and dividends.

Outlook and guidance

• Q1 2025 revenue guidance is $130–133M (+29% year-over-year); adjusted EBITDA: $28–30M (22% margin).

• Full-year 2025 revenue guidance: $555–570M (+17% year-over-year); adjusted EBITDA: $132–138M (24% margin).

• 2025 guidance includes maintaining healthy EBITDA margins and scaling user engagement in Western markets.

• Marketing costs expected to grow in the low teens percentage year-over-year, with stepwise increases through 2025.

• Management expects continued elevated growth, especially in advertising, and strong product momentum.