Opera Limited (OPRA) Beats Expectations with Significant Ad Revenue Growth in Q1

Opera Limited (NASDAQ: OPRA) has reported a remarkable 40% increase in revenue for the first quarter of 2025, significantly exceeding market expectations. The company has also revised its full-year guidance upwards, reflecting its strong performance and optimistic outlook for the remainder of the year.

Opera Limited Reports Outstanding Results for Q1 2025, Advertising Revenue Up 63%

Opera Limited (NASDAQ: OPRA) has reported outstanding financial results for the first quarter of 2025, with revenue reaching $142.7 million, a 40% increase compared to the same period in 2024. This performance far exceeded the market expectations of $121.45 million. The company also reported an adjusted EBITDA of $32.3 million, representing a 23% margin, surpassing its prior guidance.

The company’s net income for the quarter was $18.3 million, a 23% increase from the previous year’s $14.8 million. However, the net income margin decreased slightly from 15% to 13%. Opera’s adjusted net income was $24.2 million, a 37% rise from $17.7 million in the first quarter of 2024, maintaining a stable margin of 17%.

Opera’s advertising revenue grew by 63% year-over-year to $95.6 million, constituting 67% of total revenue. Meanwhile, search revenue saw an 8% increase, reaching $46.6 million. The Opera GX gaming browser also contributed to this growth, with a 14% increase in monthly active users. The company’s diluted earnings per share were $0.20, with adjusted diluted earnings per share reaching $0.27, surpassing the expected EPS of $0.22.

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Opera Limited Raises Full-Year Guidance for Revenue, Adj. EBITDA

Following its impressive first-quarter results, Opera Limited has raised its full-year guidance for both revenue and adjusted EBITDA. The company now anticipates full-year revenue between $567 million and $582 million, reflecting a 20% year-over-year growth. Adjusted EBITDA is expected to range from $135 million to $140 million, with an anticipated margin of 24%.

For the second quarter of 2025, Opera projects revenue between $134 million and $138 million, representing a 24% growth at the midpoint. The adjusted EBITDA margin is expected to remain at 23%. This optimistic guidance is attributed to the continued scaling of Opera’s browser products and the Opera Ads platform, which have shown robust growth in the first quarter.

Opera’s management is confident in the company’s ability to navigate the market’s challenges, citing a diversified geographic presence and a strong product portfolio as key advantages. The company plans to leverage its technological advancements, such as the Opera Air browser and the AI-driven Browser Operator, to sustain its growth trajectory. As the year progresses, Opera aims to capitalize on emerging opportunities and maintain its position as a leading player in the internet consumer space.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.