"In the fourth quarter, Opera recorded 22% revenue growth to $177.2 million, while adjusted EPS grew just 9% to $0.30. In the press release, management pointed to some increased personnel expenses that was abnormal in the quarter due to quarterly fluctuations, which otherwise depressed net margins."
"Also encouraging was the announcement of a $300 million share repurchase program, which amounts to 22% of Opera's market cap, even after today's jump. Opera also has $155 million in cash and no debt, and already pays a hefty dividend, with a yield of 6.4% at today's stock price."
"Opera's management has made an effort to pivot the company toward higher-paying "Western" users that generate higher average revenue per user, and that strategy appears to be paying off. ARPU was $2.49 in the quarter, up 26% year-over-year, more than offsetting the 3.8% year-over-year decline in overall users to 284.3 million."
Opera, a digital advertising company specializing in internet browsers, reported fourth-quarter revenue growth of 22% to $177.2 million, though adjusted EPS grew only 9% to $0.30 due to increased personnel expenses. Management provided optimistic guidance for 17-20% revenue growth in the coming year with stable EBITDA margins. The company authorized a $300 million share repurchase program representing 22% of market capitalization. Opera maintains a strong balance sheet with $155 million in cash, no debt, and a 6.4% dividend yield. The company's strategy focuses on in-browser advertising and query revenue from direct searches and LLM interactions. Average revenue per user increased 26% year-over-year to $2.49, while Western users grew by 2 million to 60 million total, offsetting a 3.8% overall user decline.
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