Opera's Q1 2025 Earnings Call: Unpacking Contradictions in Growth Strategy and E-Commerce Dynamics

Growth drivers and strategic focus, ad tech growth and strategy, e-commerce advertising growth expectations, macro environment impact on GX revenue, and e-commerce growth and seasonality are the key contradictions discussed in Opera Limited's latest 2025Q1 earnings call.



Revenue Growth and E-commerce Impact:
- Opera Limited reported revenue of $143 million for Q1, marking a record and 40% year-over-year growth, surpassing the guided range of 28% to 31%.
- The growth was primarily driven by advertising revenue, which grew 63% year-over-year, with e-commerce opportunities contributing significantly to this growth.

Adjusted EBITDA and Profitability:
- Adjusted EBITDA reached $32 million, above the high end of the guided range, with a margin of 23%.
- The acceleration in top-line growth was achieved without sacrificing profit margins, demonstrating efficient revenue management.

User Base Stability and ARPU Growth:
- Opera's user base remained relatively stable with 293 million MAUs, and annualized ARPU grew 44% year-over-year.
- The increase in ARPU was driven by focusing on high-value users and improvements in product offerings like the introduction of AI capabilities to their browsers.

Browser Operator and AI Innovations:
- Opera introduced the Browser Operator feature, which enables AI-driven task completion within the browser environment.
- This innovation reflects Opera's continued focus on leveraging AI to enhance user experience and monetization capabilities.