Opera NASDAQ: OPRA reported second-quarter revenue and adjusted EBITDA above its guidance range, citing broad-based growth in advertising and carrier revenue, higher engagement from AI-enabled browser features and continued expansion of its advertising platform.
Revenue rose 25% year over year to $178.1 million, while adjusted EBITDA increased 32% to a quarterly record of $42.4 million. The adjusted EBITDA margin was 24%. Adjusted net income grew 27% to $30 million, and adjusted diluted earnings per share rose 25% to $0.33.
CEO Song Lin said the company’s position as an independent browser provider gives it an opportunity to connect users with a range of AI services rather than betting on a single AI platform or infrastructure provider. Opera had 188 million monthly active users during the quarter and said its broader addressable audience, including third-party and white-label inventory, surpassed 700 million people, up from more than 500 million six months earlier.
Advertising and query revenue drive growth
Advertising revenue increased 27% year over year to $115 million, while carrier revenue grew 21% to $62 million. Lin said e-commerce was a major contributor to advertising growth, with the company planning additional high-intent formats, including AI-supported price comparisons.
Opera’s in-house commerce platform works with more than 100 merchants and includes more than 100 million products, according to Lin. The company also identified travel as another potential advertising vertical and said it has begun campaigns extending beyond Opera’s owned user base.
Lin said Opera’s performance-based campaigns have encouraged partners to expand their work with the company. He attributed the rise in total audience reach partly to new partnerships, including with AI-related services such as AI-generated video and AI social platforms.
Query revenue, which includes monetization associated with users’ proactive intent and search behavior, continued to grow faster than underlying search-market benchmarks, management said. Lin said users who engage with AI tools inside Opera’s browsers spend more time browsing and conduct more searches than users who do not engage with AI.
In Western markets, query revenue grew 39% year over year, compared with 31% globally, according to Lin. CFO Frode Jacobsen said search revenue was driven primarily by higher value per search, although increased searches per user also contributed, particularly on smartphones. He added that non-search query revenue was growing more than 200% year over year, though it remained in the single-digit millions of dollars.
AI integrations and user growth
During the quarter, Opera announced Browser Connector, which allows users to connect AI services including Anthropic’s Claude and OpenAI’s ChatGPT to the Opera browser. Lin said the feature enables those services to understand live browsing context and interact with the browser on users’ behalf.
The company also launched Opera Browser CLI, an open-source command-line interface designed to let developers and AI automation tools interact with a live browser. Lin characterized the initiatives as part of Opera’s strategy to make the browser an open interface and programmable infrastructure for AI workflows.
Opera’s Western user base rose 4% year over year to 61 million monthly active users. Mobile users in Western markets grew 8%, while the company continued to phase out lower-ARPU users in its Asia home market. The mix shift helped raise annualized average revenue per user by 25% to $2.46.
Management highlighted growth in competitive mobile markets. Combined Android and iOS monthly active users rose 66% in the United Kingdom and 40% in the United States over the past year, while Opera One for iOS grew 42% across Europe.
Opera GX reached 7.7 million monthly active users after adding nearly 2 million users during the quarter. Lin said the growth reflected continued AI integration as well as deeper connections with gaming ecosystems, including partnerships that offer in-game items and rewards. He cautioned that July and August are seasonally slower periods for GX because users are less likely to be at their computers during summer holidays.
MiniPay expands stablecoin services
MiniPay, Opera’s self-custodial stablecoin wallet, added 3 million wallet activations during the quarter, bringing its total to 18 million wallets. Transactions reached 518 million, including 88 million since the company’s prior update. MiniPay is now available in more than 66 countries and offers more than 57 mini apps.
In June, MiniPay launched a card with Visa that allows users to spend stablecoin holdings. The card is available across the European Union and is being introduced gradually in supported markets in Africa, Latin America and Asia.
Lin said MiniPay remains in an early stage of development but is already profitable. He said the company is focused on building the infrastructure and partnerships needed to scale the service, with monetization potential tied to transaction volume and take rates as the network expands.
Guidance raised as capital returns continue
Opera raised its full-year outlook following its second-quarter performance and expectations for additional upside in the second half. The company now expects:
- Full-year revenue of $734 million to $742 million, representing 20% growth at the midpoint.
- Full-year adjusted EBITDA of $172 million to $175 million, with a 24% margin at the midpoint.
- Third-quarter revenue of $181 million to $183 million, representing 19% to 20% growth.
- Third-quarter adjusted EBITDA of $41 million to $43 million, implying a 23% margin at the midpoint.
Jacobsen said cost of revenue represented 38% of second-quarter revenue and is expected to be about 39% for the full year as advertising seasonality affects quarterly percentages. The company expects marketing spending to remain around the second-quarter level, while cash-based compensation is expected to decline modestly from the quarter.
Operating cash flow was $22 million in the second quarter, and free cash flow from operations was $17 million. Opera converted 76% of adjusted EBITDA into operating cash flow and 62% into free cash flow from operations year to date.
The company paid a semiannual dividend of $0.40 per share in July, totaling $35.6 million. During the second quarter, it repurchased 636,000 shares for $11.1 million at an average price of $17.44 per share. Since 2020, Opera said it has returned $577 million to shareholders through dividends and share repurchases.
About Opera (NASDAQ:OPRA)
Opera Limited NASDAQ: OPRA is a global software and internet services company best known for its cross-platform web browsers, including the flagship Opera Browser, Opera Mini for mobile devices and Opera GX designed for the gaming community. The company integrates features such as ad blocking, built-in VPN services and a cryptocurrency wallet into its desktop and mobile applications, aiming to deliver fast, secure and feature-rich browsing experiences to hundreds of millions of users worldwide.
Beyond its consumer-facing browsers, Opera operates Opera News, a personalized content and news aggregation platform with a strong presence in Africa and Asia, and Opera Ads, a digital advertising network that leverages user-behavior data to provide targeted ad placements across devices.
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