Opera Q1 rev up 40% YoY to $142.7mln, raises FY23 guidance.

• Opera Q1 revenue grows 40% YoY to $142.7mln, beating guidance.• Adjusted EBITDA reaches $32.3mln, a 23% margin, exceeding guidance.• Opera raises full-year guidance for revenue and adjusted EBITDA.• Q2 2025 revenue guidance set at $134-138mln (+24%).• Adjusted EBITDA margin expected at 23% in Q2 2025.

Opera Limited (OPRA) has reported robust first-quarter (Q1) 2025 financial results, showcasing significant growth and profitability. The company's revenue surged by 40% year-over-year (YoY) to $142.7 million, beating its guidance range of $130 million to $133 million. This impressive performance was driven by strong growth in the advertising business, which contributed $95.6 million in revenue, a 63% increase from the previous year. Search revenue also grew by 8% to $46.6 million [3].

Adjusted EBITDA reached $32.3 million, representing a 23% margin, which exceeded the guidance of 22%. The company's net income increased by 23% to $18.3 million. Operating expenses rose by 47% to $121.6 million, reflecting planned investments in share-based compensation and technology. The company's monthly active users (MAUs) reached 293 million, with annualized revenue per user (ARPU) jumping 45% to $1.94. The gaming-focused Opera GX browser continued its growth trajectory, reaching 34 million MAUs, a 14% increase from the previous year [3].

Opera Limited has also raised its full-year 2025 guidance. The company now projects revenue of $567-582 million, up from the previous guidance of $520-545 million. Adjusted EBITDA is expected to reach $135-140 million, compared to the previous guidance of $110-120 million. For Q2 2025, Opera expects revenue of $134-138 million, with an adjusted EBITDA margin of 23% [3].

The company's growth was driven by the continued strength in its advertising business, strong performance in e-commerce segments, and rising user awareness, particularly in Western markets. Opera Limited's investments in AI technologies and product innovation, such as the launch of Opera Air and the Browser Operator, also contributed to the impressive results [1].

However, rising operational expenses and potential macroeconomic volatility may impact the company's profitability in the coming quarters. Nevertheless, Opera Limited's strong performance in Q1 2025 and its raised full-year guidance indicate a positive outlook for the company.

References:
[1] https://www.nasdaq.com/articles/opera-limited-report-q1-earnings-whats-store-stock
[2] https://ca.finance.yahoo.com/news/akzo-nobel-nv-akzof-q1-070054189.html
[3] https://www.stocktitan.net/news/OPRA/opera-reports-40-revenue-growth-in-the-first-quarter-2025-raises-xj22a2zjcjyo.html

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