Opera Limited's Q4 2024: Key Contradictions in Advertising Growth, AI Strategy, and Search Revenue Insights

These are the key contradictions discussed in Opera Limited's latest 2024Q4 earnings call, specifically including: Advertising Revenue Growth Expectations, AI Strategy, Search and Advertising Revenue Growth, AI Integration Impact, Search Revenue Growth and Google Renewal, and iOS Penetration and Market Growth Opportunities:



Revenue and Market Growth:
- Opera Limited reported 29% year-over-year revenue growth in Q4 2024, exceeding guidance by 800 basis points.
- This growth was driven by accelerated e-commerce opportunities, strong product launches, and user growth in high-ARPU regions, particularly North America and Europe.

Advertising Revenue Surge:
- Advertising revenue hit $93 million in Q4, with a 38% year-over-year increase, marking a significant acceleration from the 26% growth in Q3.
- This surge was fueled by Opera Ads' intent-based audience monetization, leveraging vast interest and intent signals, which proved successful in e-commerce and travel verticals.

Product Innovation and User Engagement:
- Opera's user base for its popular gaming browser, Opera GX, grew to 33.9 million MAUs in Q4, up 2 million from Q3 and 22% year-over-year.
- The growth was attributed to new product releases, enhanced features, and increased engagement in the GX community, including a 36% increase in the number of games available on the GX.games site.

Operational and Financial Performance:
- Adjusted EBITDA reached $33 million in Q4, representing 23% of revenue, above the high end of guidance.
- This was achieved by scaling marketing efforts effectively, especially in Q4, with a focus on product launches and maintaining attractive ROI on marketing spend.