opra20231020_6k.htm

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 


 

FORM 6-K

 


 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October 2023

 

Commission File Number: 001-38588

 


 

OPERA LIMITED

 


 

Vitaminveien 4,

0485 Oslo, Norway

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☑        Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

 

 

Exhibit 99.1

Press release -- Opera reports both revenue and adjusted EBITDA above guidance in its third quarter 2023 results

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 Opera Limited

 

 

 

 

 

 

By:

/s/  James Yahui Zhou

 

 

Name:

James Yahui Zhou

 

 

Title:

Chairman of the Board and

 

    Chief Executive Officer  

 

Date: October 26, 2023

 

 
HTML Editor

Exhibit 99.1

 

Opera Reports Both Revenue and Adjusted EBITDA Above Guidance in its Third Quarter 2023 Results

 

11th consecutive quarter of 20+% revenue growth, exceeding the high end of previously issued guidance on both revenue and adjusted EBITDA

 

Delivered $103 million quarterly revenue, with adjusted EBITDA margin of 23%

 

Raises both revenue and adjusted EBITDA guidance above the previous ranges

 

Returned $53 million to its shareholders through dividend and share repurchases in the quarter

 

OSLO, Norway, October 26, 2023 /PRNewswire/ – Opera Limited (NASDAQ: OPRA), one of the world’s major browser developers and a leading internet consumer brand, announced its unaudited financial results for the quarter ended September 30, 2023.

 

Third Quarter and Nine Months 2023 Financial Highlights

 

   

Three Months Ended September 30,

   

Year-over-

   

Nine Months Ended September 30,

   

Year-over-

 

(In thousands, except percentages and per share amounts, unaudited)

 

2022

   

2023

    year % change    

2022

   

2023

    year % change  

Revenue

  $ 85,347     $ 102,639       20 %   $ 234,765     $ 283,824       21 %
                                                 

Net income (loss)

  $ 9,384     $ 16,836       79 %   $ (5,887 )   $ 45,851       NM  

Margin

    11.0 %     16.4 %             (2.5 )%     16.2 %        
                                                 

Adjusted EBITDA (1)

  $ 21,382     $ 23,752       11 %   $ 45,300     $ 65,955       46 %

Margin

    25.1 %     23.1 %             19.3 %     23.2 %        
                                                 

Diluted earnings per ADS (2)

  $ 0.08     $ 0.18       131 %   $ (0.05 )   $ 0.50       NM  
                                                 

Free cash flow from operations (1)

  $ 15,031     $ 13,418       (11 )%   $ 22,567     $ 49,951       121 %

 


(1) See "Non-IFRS Financial Measures" and "Reconciliations of Non-IFRS Financial Measures" sections below for explanations and reconciliations of non-IFRS financial measures.

(2) Opera Limited has American depositary shares (ADSs) listed on the Nasdaq Global Select Market, each representing two ordinary shares in the company.

 

 

“With the best product portfolio in our company's history, we were able to generate record revenue of $102.6 million and adjusted EBITDA of $23.8 million, both well ahead of the top end of our guidance ranges, and setting us up for a continued strong trajectory,” said co-CEO Lin Song.

 

“Our strong quarterly results are fueled by our operational execution. During the third quarter, Opera GX reached a new record of 26 million MAUs, our user base continued growing among high-ARPU users, and we kept expanding the number of people that have access to Aria, our browser AI. Across our products, we maintain a high pace of innovation to deliver the best possible browsing experience to our users,” continued Mr. Song.

 

 

Third Quarter and Recent Business Highlights

 

 

Advertising revenue grew 24% year-over-year, and now constitutes 59% of total revenue. This revenue category benefits from both our browser monetization trajectory as well as the expansion of our Opera Ads platform.

 

Search revenue grew 15% year-over-year. The growth in search revenue continues to be driven by our focus on users with the highest monetization potential in Western markets.

 

Opera had 311 million monthly active users (MAUs) in the third quarter of 2023, with user growth in North America and Europe being offset by reductions in low-ARPU user numbers in emerging markets.

 

In the third quarter of 2023, annualized ARPU was $1.31, an increase of 24% versus the third quarter of 2022.

 

The Opera GX gaming browser had 26.1 million MAUs across PC and mobile in the quarter, up 10% from 23.7 million in the second quarter.

 

Paid our first recurring semi-annual dividend of $0.40 per ADS in July, and repurchased 1.2 million ADS at a cost of $17.2 million during the third quarter.

 

 

 

Business Outlook

 

“We are excited about the momentum in our business, and how our strategy enables the combination of both revenue scaling and healthy profitability that directly benefits our shareholders through a recurring dividend program and share repurchases. Our year-over-year growth rates were strongest at the end of the quarter, translating to a solidified trajectory as we look to the fourth quarter and a significant upwards revision of our guidance for the year,” said Frode Jacobsen, CFO.

 

For the full year of 2023, Opera is raising its revenue guidance to be $394 - 397 million, up from the previously issued $380 - 390 million. We guide adjusted EBITDA to be $88 - 90 million, or a 23% margin at the midpoints, up from $80 - 84 million.

 

For the fourth quarter, we guide revenue of $110 - 113 million or 16% year-over-year growth at the midpoint, up from $102 - 109 million implied in our prior guidance. Adjusted EBITDA is guided to be $22 - 24 million, or a 21% margin at the midpoint, up from $19.3 - 21.3 implied in our prior guidance.

 

 

Third Quarter 2023 Financial Results

 

All comparisons in this section are relative to the third quarter of 2022 unless otherwise stated.

 

Revenue increased by 20% to $102.6 million.

 

Advertising revenue increased by 24% to $60.8 million.

 

Search revenue increased by 15% to $40.8 million.

 

Technology licensing and other revenue was $1.0 million.

 

Operating expenses increased by 25% to $86.6 million.

 

Combined technology and platform fees, content cost and cost of inventory sold were $25.2 million, or 25% of revenue.

 

Personnel expenses, including share-based remuneration, were $20.7 million. This expense consists of cash-based compensation expense of $17.5 million, an 8% increase year-over-year, and share-based remuneration expense of $3.2 million. Share-based remuneration includes grants made by Opera’s majority shareholder, which represents an expense in the P&L even though Opera has no obligation in connection with these grants, and they do not represent dilution for Opera’s shareholders.

 

Marketing and distribution expenses were $28.4 million, an increase of 9%.

 

Depreciation and amortization expenses were $3.2 million, a 7% decrease.

 

The quarter included impairment expense of $0.6 million related to a non-core intangible asset, and non-recurring expenses of $0.7 million related to the filing of an F-3 registration statement and the secondary offering conducted in September.

 

Other operating expenses were $7.7 million, a 28% increase which includes elevated professional services fees in connection with Opera’s strengthening of its framework for internal controls over financial reporting.

 

Operating profit was $16.1 million, representing a 16% margin, compared to an operating profit of $16.2 million in the third quarter of 2022.

 

Net finance income was $1.0 million, inclusive of interest income on bank deposits and time-value changes of our Star X receivable, compared to a net finance expense of $1.6 million in the third quarter of 2022.

 

Income tax expense was $0.2 million, compared to $5.2 million in the third quarter of 2022, benefiting from the recognition of a deferred tax asset relating to prior share based remuneration expenses, which reduces future tax payments.

 

Net income was $16.8 million, representing a 16% margin, compared to net income of $9.4 million in the third quarter of 2022.

 

Basic earnings per ADS was $0.19 in the third quarter of 2023, compared to basic earnings per ADS of $0.08 in the third quarter of 2022. In the third quarter of 2023, the weighted average number of ordinary shares outstanding was 179.3 million, corresponding to 89.65 million ADSs.

 

Adjusted EBITDA was $23.8 million, representing a 23% margin, compared to adjusted EBITDA of $21.4 million in the third quarter of 2022.

 

Free cash flow from operations was $13.4 million, compared to $15.0 million in the third quarter of 2022. The revenue strength within the quarter, combined with a relatively stable level of marketing spend, translated to a $6.7 million working capital increase within the quarter. Year-to-date, free cash flow from operations totaled $50.0 million, compared to $22.6 million in the first three quarters of 2022.

 

We have posted Opera’s unaudited financial results by quarter since 2019 at https://investor.opera.com/financial-information/quarterly-results.

 

 

 

Conference Call

 

Opera’s management will host a conference call to discuss the third quarter 2023 financial results on Thursday, October 26th at 8:00 am Eastern Time (EDT). Listeners may access the call by dialing the following numbers:

 

United States: +1 800-895-3361

China: +10-800-714-1507 or +10-800-140-1382

Hong Kong: +80-090-1494

Norway: +47 80-01-3780

United Kingdom: +44 0-808-101-1183

International: +1 785-424-1062

Confirmation Code: OPRAQ323

 

A live webcast of the conference call will be posted at https://investor.opera.com.

 

We will be tweeting highlights from our prepared remarks. Please follow along on Twitter/X, @InvestorOpera.

 

 

Non-IFRS Financial Measures

 

We collect and analyze operating and financial data to evaluate the health of our business and assess our performance. In addition to revenue, net income (loss), net cash flow from operating activities and other financial measures under IFRS, we use adjusted EBITDA and, starting from 2023, free cash flow from operations, which are described below, to evaluate our business. We use these non-IFRS financial measures for financial and operational decision-making and as means to evaluate period-to-period comparisons. While these non-IFRS financial measures should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with IFRS, we believe that adjusted EBITDA provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of recurring core business operating results, and that free cash flow from operations provides useful information regarding how cash provided by operating activities compares to the investments required to maintain and grow our business.

 

We believe these non-IFRS financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. Accordingly, we believe that these non-IFRS financial measures provide useful information to investors and others in understanding and evaluating our operating results and liquidity in the same manner as our management team and Board of Directors. Our calculation of these non-IFRS financial measures may differ from similarly-titled non-IFRS measures, if any, reported by our peers. In addition, our non-IFRS financial measures may be limited in their usefulness because they do not present the full economic effect of expenses and cash flows mentioned below. We compensate for these limitations by providing a reconciliation of our non-IFRS financial measures to the most closely related IFRS financial measures. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view adjusted EBITDA and free cash flow from operations in conjunction with net income (loss) and net cash flow from operating activities.

 

We define adjusted EBITDA as net income (loss) excluding (i) profit (loss) from discontinued operations, (ii) income tax (expense) benefit, (iii) net finance income (expense), (iv) share of net income (loss) of equity-accounted investees, (v) impairment of equity-accounted investees, (vi) fair value gain (loss) on investments, (vii) depreciation and amortization, (viii) impairment of non-financial assets, (ix) share-based remuneration, including related social security costs, (x) non-recurring expenses, and (xi) other operating income.

 

We define free cash flow from operations as net cash flows from (used in) operating activities less (i) purchases of fixed and intangible assets, (ii) development expenditure and (iii) payment of lease liabilities.

 

 

 

Safe Harbor Statement

 

This press release contains statements of a forward-looking nature. These statements, including statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “may,” “expect,” “believe,” “anticipate,” “intend,” “aim,” “estimate,” “seek,” “plan,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely to,” “future” and similar statements. Among other things, management’s quotations and the Business outlook section contain forward-looking statements. The Company may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which it operates. Potential risks and uncertainties include, but are not limited to, those relating to: the duration and development of international conflicts, such as the war in Ukraine, and related economic sanctions, as well as resulting changes in consumer behaviors; the outcome of regulatory processes or litigation; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company’s expectations regarding demand for and market acceptance of its brands, platforms and services; Company’s expectations regarding growth in its user base, user retention and level of engagement; changes in consumer behavior, for example from increased adoption of AI powered services; Company’s ability to attract, retain and monetize users; Company’s ability to continue to develop new technologies, products and services and/or upgrade its existing technologies, products and services; quarterly variations in Company’s operating results caused by factors beyond its control; and global macroeconomic conditions and their potential impact in the markets in which the Company has business. All information provided in this press release is as of the date hereof and is based on assumptions that the Company believes to be reasonable as of this date, and it undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Opera is included in the Company’s filings with the SEC, including its annual reports on Form 20-F.

 

 

About Opera

 

Opera is a user-centric and innovative software company focused on enabling the best possible internet browsing experience across all devices. Hundreds of millions use the Opera web browsers for their unique and secure features on their mobile phones and desktop computers. Founded in 1995, and headquartered in Oslo, Norway, Opera is a public company listed on the Nasdaq stock exchange under the ticker symbol “OPRA”. Download the Opera web browser and access other Opera products from opera.com. Learn more about Opera at investor.opera.com and on X @InvestorOpera.

 

 

Contacts

 

Investor relations:

Matthew Wolfson

investor-relations@opera.com

 

Media:

press-team@opera.com

 

 

 

Opera Limited

Consolidated Statement of Operations

(In thousands, except number of shares which are reflected in millions and per share amounts, unaudited)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Revenue

  $ 85,347     $ 102,639     $ 234,765     $ 283,824  

Other operating income

    80       8       322       188  

Operating expenses:

                               

Technology and platform fees

    (1,037 )     (736 )     (3,321 )     (2,691 )

Content cost

    (841 )     (1,181 )     (2,944 )     (3,164 )

Cost of inventory sold

    (13,868 )     (23,332 )     (29,372 )     (58,855 )

Personnel expenses including share-based remuneration

    (17,994 )     (20,710 )     (53,493 )     (62,133 )

Marketing and distribution expenses

    (26,005 )     (28,406 )     (85,429 )     (79,799 )

Credit loss expense

    (299 )     (192 )     (410 )     (2,638 )

Depreciation and amortization

    (3,438 )     (3,205 )     (10,449 )     (9,940 )

Impairment of non-financial assets

    -       (565 )     -       (565 )

Non-recurring expenses

    -       (689 )     (1,208 )     (689 )

Other operating expenses

    (5,770 )     (7,552 )     (19,703 )     (20,974 )

Total operating expenses

    (69,252 )     (86,569 )     (206,329 )     (241,449 )

Operating profit (loss)

    16,175       16,078       28,758       42,563  

Share of net loss of equity-accounted investees

    -       -       (6 )     -  

Net finance income (expense):

                               

Finance income

    2,545       1,154       4,982       7,877  

Finance expense

    (4,747 )     (92 )     (30,035 )     (545 )

Net foreign exchange gain (loss)

    578       (86 )     (70 )     590  

Net finance income (expense)

    (1,624 )     976       (25,122 )     7,922  

Profit (loss) before income taxes

    14,551       17,054       3,629       50,485  

Income tax (expense) benefit

    (5,167 )     (218 )     (9,516 )     (4,635 )

Net income (loss) attributable to owners of the parent

  $ 9,384     $ 16,836     $ (5,887 )   $ 45,851  
                                 

Weighted-average number of shares outstanding:

                               

Basic, ADS equivalent

    113.68       89.65       114.74       89.78  

Diluted, ADS equivalent

    113.97       91.21       114.74       91.31  

Basic, ordinary shares

    227.35       179.31       229.48       179.55  

Diluted, ordinary shares

    227.94       182.43       229.48       182.62  
                                 

Earnings per ADS and per ordinary share:

                               

Basic earnings per ADS

  $ 0.08     $ 0.19     $ (0.05 )   $ 0.51  

Diluted earnings per ADS

  $ 0.08     $ 0.18     $ (0.05 )   $ 0.50  

Basic earnings per ordinary share

  $ 0.04     $ 0.09     $ (0.03 )   $ 0.26  

Diluted earnings per ordinary share

  $ 0.04     $ 0.09     $ (0.03 )   $ 0.25  

 

 

 

Opera Limited

Consolidated Statement of Comprehensive Income

(In thousands, unaudited)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Net income (loss)

  $ 9,384     $ 16,836     $ (5,887 )   $ 45,851  

Other comprehensive income (loss):

                               

Items that may be reclassified to the statement of operations in subsequent periods (net of tax):

                               

Exchange differences on translation of foreign operations

    (2,412 )     (962 )     (5,253 )     (2,129 )

Reclassification of share of other comprehensive income (loss) of equity-accounted investees

    -       -       708       -  

Other comprehensive income (loss)

    (2,412 )     (962 )     (4,545 )     (2,129 )

Total comprehensive income (loss) attributable to owners of the parent

  $ 6,973     $ 15,874     $ (10,431 )   $ 43,721  

 

 

 

Opera Limited

Consolidated Statement of Financial Position

(In thousands, unaudited)

 

   

As of December 31,

   

As of September 30,

 
   

2022

   

2023

 

Assets:

               

Property and equipment

  $ 14,623     $ 14,565  

Intangible assets

    99,983       97,769  

Goodwill

    429,445       429,509  

Non-current receivables from sale of investments

    76,305       -  

Non-current investments and financial assets

    2,643       2,530  

Deferred tax assets

    1,473       1,708  

Total non-current assets

    624,473       546,081  
                 

Trade receivables

    57,923       60,070  

Current receivables from sale of investments

    56,347       32,449  

Other current receivables

    17,247       5,167  

Prepayments

    3,932       10,226  

Marketable securities

    66,250       -  

Cash and cash equivalents

    52,414       83,505  

Total cash, cash equivalents, and marketable securities

    118,664       83,505  

Assets held for sale

    86,100       163,462  

Total current assets

    340,213       354,879  

Total assets

  $ 964,686     $ 900,959  
                 

Equity:

               

Share capital

  $ 18     $ 18  

Other paid in capital

    824,832       824,832  

Treasury shares

    (206,514 )     (225,814 )

Retained earnings

    273,262       225,937  

Foreign currency translation reserve

    (3,385 )     (5,515 )

Total equity attributable to owners of the parent

    888,213       819,458  
                 

Liabilities:

               

Non-current lease liabilities and other loans

    4,723       5,594  

Deferred tax liabilities

    7,352       232  

Other non-current liabilities

    68       67  

Total non-current liabilities

    12,143       5,893  
                 

Trade and other payables

    46,937       46,835  

Deferred revenue

    995       3,188  

Current lease liabilities and other loans

    3,112       2,888  

Income tax payable

    1,133       10,374  

Other current liabilities

    12,152       12,323  

Total current liabilities

    64,330       75,608  

Total liabilities

    76,472       81,501  

Total equity and liabilities

  $ 964,686     $ 900,959  

 

 

 

Opera Limited

Consolidated Statement of Changes in Equity

(In thousands, except number of shares, unaudited)

 

For the nine months ended September 30, 2022:

 

   

Number of shares outstanding

   

Equity attributable to owners of the parent

 
   

Ordinary shares

   

ADS equivalent

   

Share capital

   

Other paid in capital

   

Treasury shares

   

Retained earnings

   

Foreign currency translation reserve

   

Total equity

 

As of January 1, 2022

    230,291,732       115,145,866     $ 24     $ 824,832     $ (60,453 )   $ 249,155     $ (520 )   $ 1,013,039  

Net income (loss)

    -       -       -       -       -       (5,887 )     -       (5,887 )

Other comprehensive income (loss)

    -       -       -       -       -       -       (4,545 )     (4,545 )

Share-based remuneration

    -       -       -       -       -       5,227       -       5,227  

Issuance of shares upon exercise of RSUs and options

    1,597,500       798,750       -       -       -       -       -       -  

Acquisition of treasury shares

    (5,452,692 )     (2,726,346 )     -       -       (14,247 )     -       -       (14,247 )

As of September 30, 2022

    226,436,540       113,218,270     $ 24     $ 824,832     $ (74,700 )   $ 248,495     $ (5,065 )   $ 993,588  

 

 

For the nine months ended September 30, 2023:

 

   

Number of shares outstanding

   

Equity attributable to owners of the parent

 
   

Ordinary shares

   

ADS equivalent

   

Share capital

   

Other paid in capital

   

Treasury shares

   

Retained earnings

   

Foreign currency translation reserve

   

Total equity

 

As of January 1, 2023

    178,430,242       89,215,121     $ 18     $ 824,832     $ (206,514 )   $ 273,263     $ (3,385 )   $ 888,213  

Net income (loss)

    -       -       -       -       -       45,851       -       45,851  

Other comprehensive income (loss)

    -       -       -       -       -       -       (2,129 )     (2,129 )

Share-based remuneration, net of tax

    -       -       -       -       -       14,046       -       14,046  

Issuance of shares upon exercise of RSUs and options

    2,137,018       1,068,509       -       -       394       -       -       394  

Dividends

    -       -       -       -       -       (107,222 )     -       (107,222 )

Acquisition of treasury shares

    (3,222,784 )     (1,611,392 )     -       -       (19,694 )     -       -       (19,694 )

As of September 30, 2023

    177,344,476       88,672,238     $ 18     $ 824,832     $ (225,814 )   $ 225,937     $ (5,515 )   $ 819,458  

 

 

 

Opera Limited

Consolidated Statement of Cash Flows

(In thousands, unaudited)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Cash flows from operating activities:

                               

Profit (loss) before income taxes

  $ 14,551     $ 17,054     $ 3,629     $ 50,485  

Adjustments to reconcile profit (loss) before income taxes to net cash flow:

                               

Share-based payment expense

    1,740       3,815       5,227       10,989  

Depreciation and amortization

    3,438       3,205       10,449       9,940  

Impairment of non-financial assets

    -       565       -       565  

Share of net loss of equity-accounted investees

    -       -       6       -  

Net finance (income) expense

    1,624       (976 )     25,122       (7,922 )

Other adjustments

    (739 )     (273 )     (1,486 )     (65 )

Changes in working capital:

                               

Change in trade and other receivables

    (4,961 )     (4,808 )     (10,278 )     (2,423 )

Change in prepayments

    416       (1,279 )     967       (1,693 )

Change in inventories

    (888 )     (289 )     (1,586 )     (638 )

Change in trade and other payables

    2,260       (407 )     2,634       (102 )

Change in deferred revenue

    (359 )     (1,657 )     417       2,193  

Change in other liabilities

    1,048       1,753       (2,112 )     170  

Income taxes (paid) received

    (97 )     (470 )     133       (4,022 )

Net cash flow from (used in) operating activities

    18,032       16,233       33,120       57,477  

Cash flows from investing activities:

                               

Purchase of equipment

    (165 )     (741 )     (2,758 )     (1,279 )

Development expenditure

    (1,988 )     (1,189 )     (4,911 )     (3,304 )

Proceeds from sale of shares in former associates

    4,000       -       36,879       -  

Net sale (purchase) of listed equity instruments

    12,191       -       19,235       23,414  

Interest income received

    765       840       799       2,273  

Net cash flow from (used in) investing activities

    14,804       (1,090 )     49,245       21,105  

Cash flows from financing activities:

                               

Acquisition of treasury shares

    (4,379 )     (17,230 )     (14,247 )     (19,694 )

Proceeds from exercise of share options

    -       -       -       394  

Dividends paid

    -       (10,832 )     -       (23,105 )

Interests on loans and borrowings

    (42 )     (92 )     (145 )     (243 )

Repayment of loans and borrowings

    (124 )     (46 )     (308 )     (203 )

Payment of lease liabilities

    (848 )     (884 )     (2,884 )     (2,943 )

Net cash flow from (used in) financing activities

    (5,393 )     (29,084 )     (17,584 )     (45,795 )

Net change in cash and cash equivalents

    27,442       (13,942 )     64,781       32,786  

Cash and cash equivalents at beginning of period

    139,400       98,155       102,876       52,414  

Effect of exchange rate changes on cash and cash equivalents

    (771 )     (709 )     (1,586 )     (1,696 )

Cash and cash equivalents at end of period

  $ 166,071     $ 83,505     $ 166,071     $ 83,505  

 

 

 

Opera Limited

Supplemental Financial Information

(In thousands, unaudited)

 

Revenue

 

The table below specifies the amounts of the different types of revenue:

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Advertising

  $ 49,145     $ 60,800     $ 130,680     $ 163,147  

Search

    35,368       40,820       101,128       117,464  

Technology licensing and other revenue

    834       1,019       2,956       3,213  

Total revenue

  $ 85,347     $ 102,639     $ 234,765     $ 283,824  

 

 

Personnel Expenses Including Share-based Remuneration

 

The table below specifies the amounts of personnel expenses including share-based remuneration:

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Personnel expenses, excluding share-based remuneration

  $ 16,146     $ 17,488     $ 48,286     $ 49,747  

Share-based remuneration, including related social security costs (1)

    1,848       3,222       5,207       12,385  

Total personnel expenses including share-based remuneration

  $ 17,994     $ 20,710     $ 53,493     $ 62,133  

 


(1) Kunlun, the ultimate parent of Opera, has made equity grants to employees of Opera as compensation for services these employees provide to Opera. Opera does not have any obligation to settle the awards granted by Kunlun and such grants do not lead to dilution for Opera’s shareholders. Share-based remuneration expense related to awards granted by Kunlun to employees of Opera was nil and $2.0 million for the three months ended September 30, 2022 and 2023, respectively, and nil and $4.8 million for the nine months ended September 30, 2022 and 2023, respectively.

 

 

Other Operating Expenses

 

The table below specifies the nature of other operating expenses:

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Hosting

  $ 2,343     $ 2,580     $ 6,869     $ 7,612  

Audit, legal and other advisory services

    899       1,881       5,390       5,118  

Software license fees

    579       962       1,542       2,429  

Rent and other office expenses

    774       810       2,665       2,036  

Travel

    477       454       1,049       1,324  

Other

    698       865       2,188       2,455  

Total other operating expenses

  $ 5,770     $ 7,552     $ 19,703     $ 20,974  

 

 

 

Opera Limited

Reconciliations of Non-IFRS Financial Measures

(In thousands, unaudited)

 

The table below reconciles net income (loss) to adjusted EBITDA:

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Net income (loss)

  $ 9,384     $ 16,836     $ (5,887 )   $ 45,851  

Add (deduct):

                               

Income tax expense (benefit)

    5,167       218       9,516       4,635  

Net finance expense (income)

    1,624       (976 )     25,122       (7,922 )

Share of net loss of equity-accounted investees

    -       -       6       -  

Depreciation and amortization

    3,438       3,205       10,449       9,940  

Impairment of non-financial assets

    -       565       -       565  

Share-based remuneration, including related social security costs

    1,848       3,222       5,207       12,385  

Non-recurring expenses

    -       689       1,208       689  

Other operating income

    (80 )     (8 )     (322 )     (188 )

Adjusted EBITDA

  $ 21,382     $ 23,752     $ 45,300     $ 65,955  

 

 

The table below reconciles net cash flow from operating activities to free cash flow from operations:

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2023

   

2022

   

2023

 

Net cash flow from operating activities

  $ 18,032     $ 16,233     $ 33,120     $ 57,477  

Deduct:

                               

Purchase of equipment

    (165 )     (741 )     (2,758 )     (1,279 )

Development expenditure

    (1,988 )     (1,189 )     (4,911 )     (3,304 )

Payment of lease liabilities

    (848 )     (884 )     (2,884 )     (2,943 )

Free cash flow from operations

  $ 15,031     $ 13,418     $ 22,567     $ 49,951