Pretty much everyone has heard about Opera by now, considering the gigantic growth that the browser had over these last few years.
It is currently among the top browsers in the world, with over 350 million active users recorded right before the end of 2021, and is also one of the safest browsers out there.
The company behind this masterpiece, Opera Ltd., recently announced its unaudited consolidated financial results for the first quarter of 2022, which ended on March 31.
Opera’s co-CEO Song Lin confirmed that Opera’s performance in 2022 is off to a great start, stating that the results are ahead of expectations in terms of product portfolio, monetization, and financial results.
What Are Opera’s 1st Q Results For 2022?
Opera officials also mentioned that due to earlier than expected core revenue generation, the company has actually exceeded the top of its guidance range for both revenue and adjusted EBITDA.
However, we’re sure that you want more details about this, so we are about to take a more in-depth look at these numbers for a better understanding.
According to the report, core search and advertising revenue have increased by 41% in this first quarter, thanks to a strong ARPU trend for the browser and news user base.
This is also based on Opera’s strong advertiser demand that goes beyond its inventory, through the Opera advertising platform.
The Opera browser actually had an average monthly active user base of 339 million monthly active users in this first quarter.
Available information points out that user growth was strongest in the US, with North America recording a 15% increase, followed by South America with 10%.
There’s also an Opera GX gaming browser, as we all know, which had over 16 million monthly active users across PC and mobile in the first quarter.
These stats represent a continued healthy trajectory with 14% sequential growth compared to the previous quarter.
Opera Ltd. also sold its minority stake in Nanobank and Star X, a transaction that represents cash proceeds of $211 million receivable without contingencies.
It’s important to stress the fact that the second sale, out of the above-mentioned ones, took place after the end of the quarter.
Furthermore, $182 million in cash and marketable securities at the end of Q1 were also present in the report, with the mention that the company continues to hold our 6.44% stake in OPay.
And, during the first quarter of 2022, Opera Ltd. proceeded to repurchase 569 thousand ADS at an average price of $5.33.
The total value of the ads amounted to $3 million while leaving $47 million remaining under the current buyback authorization.
Not to mention that the company provided support for most of the major blockchain ecosystems in Opera Wallet, and it released a beta version for the Opera Web3 browser.
What expectations are there for the rest of 2022?
Since the first-quarter results were impressive, expectations are clearly high for the rest of the year.
In fact, Opera is expecting a revenue of $300-$310 million for the rest of 2022 which, judging from the present numbers, is totally doable.
To be more exact, this actually represents an increase of 22%/midpoint, and of course an adjusted EBITDA somewhere between $50-$60 million/midpoint.
As far as the second quarter of 2022 goes, Opera Ltd. predicts revenue of $71-$74 million. Any person that is good with numbers can tell that that is a 21% year-over-year growth/midpoint.
For the second quarter, the adjusted EBITDA is expected to be situated between $8-$12 million, which is no more than a 14% margin at the midpoint.
These numbers are completely realistic and Opera totally has the resources and knowledge to pull this off, so it will be interesting to observe.
What is your first impression of the first quarter numbers presented by Opera Ltd. for 2022? Share your thoughts with us in the comments section below.