Opera Limited announces fourth quarter 2020 financial results, exceeds expectations for revenue growth and adjusted EBITDA
OSLO, Norway, Feb. 25, 2021 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's largest internet consumer brands with over 380 million monthly active users, today announced its unaudited consolidated financial results for the quarter ended December 31, 2020:
Fourth quarter 2020 financial highlights
Three Months Ended Year-over- Twelve Months Ended Year-
over-
December 31, December 31,
[US$ thousands, except for margins 2019 2020 year % 2019 2020 year %
and per ADS amounts]
change change
---
Revenue 48,763 50,446 3.5 177,078 165,274 -6.7
% %
Net income (loss) 21,973 25,404 15.6 57,899 176,052 204.1
% %
Margin 45.1 50.4 32.7 106.5
% % % %
Adjusted EBITDA (1) 6,752 14,271 111.4 24,233 25,188 3.9
% %
Margin 13.9 28.3 13.7 15.2
% % % %
Adjusted net income (1) 12,662 34,699 174.0 50,475 52,280 3.6
% %
Margin 25.9 68.8 27.9 31.6
% % % %
Diluted net income per ADS, US$ 0.18 0.22 20.2 0.51 1.48 188.0
% %
Diluted adjusted net income per ADS, US$ (1) 0.10 0.30 185.3 0.45 0.44 -1.9
% %
(1) Please see the separate
section "About non-IFRS
financial measures" for the
definitions of adjusted
EBITDA and adjusted net
income.
"These results demonstrate the potential for Opera to generate significant growth thanks to Opera's two complementary strengths," noted co-CEO Song Lin. "First, our core businesses - the Opera Browser, and Opera News - are operating at greater scale, with higher user engagement, in our key markets. This is a direct reflection of how well we're executing, and increases our ability to monetize. Combined with continued COVID-19 recovery, our user driven search and advertising revenues increased 22% versus the prior quarter, and 14% versus the year-ago quarter, representing a solid foundation and allowing us to offer an even stronger outlook for 2021. Second, the strategic investments we have made in adjacent categories, including gaming and fintech, leverage our core strengths and are significantly accelerating our overall growth potential. We're going to keep making these investments given their clear promise, high growth, and ability to deliver new revenue streams."
Fourth Quarter and Recent Business Highlights
-- Opera's monthly active user base increased by 29 million in 2020.
-- The Company reached 79 million average monthly PC users in the fourth
quarter, up 17% year-over-year (vs. up 10% year-over-year in the third
quarter).
-- The Opera GX browser user base now exceeds 7 million users, up 350%
year-over-year in December.
-- Opera News revenue grew over 150% year-over-year and 60% compared to the
third quarter.
-- Opera achieved record revenue on mobile. Opera recently launched an
in-browser messaging feature, Hype, in Africa, which is an example of a
feature aimed at increasing engagement within our Opera Mini browser.
Opera for Android, Opera's flagship mobile browser reached 79 million
users, doubling in 2.5 years.
-- Investment in our strategic growth initiatives continued, including the
recent acquisition of YoYo Games and creation of Opera Gaming, and the
launch of the Dify digital wallet and in-browser cashback offering,
broadening Opera's opportunities in gaming and ecommerce. In addition,
the huge success of Opera News in Africa has led to a decision to test
the product in several developed markets.
"In sum", continued Mr. Lin, "we are doing two things extremely well: operating our core businesses such that they continue to scale and create new paths to monetization, and simultaneously executing against our growth strategy. We're entering 2021 with good momentum and the possibility to generate what many had previously expected would be 2022 revenues. We believe we have all the elements in place to enjoy sustained, long-term growth."
Business Outlook
Mr. Frode Jacobsen, Opera's CFO, said, "Growth in our core business accelerated in the fourth quarter, leading us to raise our revenue growth expectations in 2021 from 25% to 39%, or $65 million above 2020, at the midpoint. We expect our core business to benefit from the additional economies of scale similar to what we experienced in the fourth quarter, but we are using this strength as an opportunity to accelerate growth through high return investments in our key initiatives -- European fintech, gaming and Opera News in developed markets -- which will impact near-term margins as we enter a new phase of accelerated growth."
For the full year 2021, Opera expects revenue of $220 million to $240 million, representing an increase of $30 million at the midpoint compared to prior guidance. Adjusted EBITDA is anticipated to be $10 million to $30 million.
For the first quarter 2021, Opera expects revenue of $47 million to $48 million, representing 18% year-over-year growth at the midpoint, roughly a 15 percentage point increase versus the fourth quarter. Adjusted EBITDA will be around breakeven as Opera invests aggressively in growth.
Nanobank and other investments
On a pro forma basis in the fourth quarter, Nanobank posted revenue of $46.0 million, up 32% compared to the third quarter, and disbursed 3.2 million loans representing $239 million in total value. Adjusted EBITDA was $13.8 million and post-tax profit was $12.3 million. The growth was primarily driven by strength in Indonesia and Mexico.
In terms of other investments, OPay continues to grow and scale its payment offerings. In December, OPay processed a gross transaction value of $2.0 billion on its platform, more than four-times the level in January 2020, and is in the process of launching in a new African geography. StarMaker continues to experience strong growth. Daily active users doubled in 2020 and fourth quarter revenues were at an annual run rate of over $130 million, more than three times the year-ago period.
Opera owns 42% of Nanobank, 13.1% of OPay and 19.35% of StarMaker.
Fourth quarter 2020 consolidated financial results
All comparisons in this section are relative to the fourth quarter of 2019 unless otherwise stated. Our former emerging markets fintech and retail revenues are not included in comparisons as they are classified as discontinued operations.
Revenue increased 3% to $50.4 million
-- Search revenue increased 13%, or 21% versus the third quarter 2020, to
$25.7 million due to strong PC user growth and as monetization recovered
from COVID-19.
-- Advertising revenue increased 16%, or 23% versus the third quarter 2020,
to $23.3 million due to strong Opera News monetization and ad
monetization increases.
-- Technology licensing and other revenue was $1.5 million. This declined
$4.5 million compared to the previous year as Opera has been phasing out
low-margin professional services for an investee.
Operating expenses decreased 6% to $46.4 million.
-- Cost of revenue was $2.7 million, a decrease of 38%. Within this total,
$1.9 million related to the browser and news business area and $0.8
million related to other revenue.
-- Personnel expenses, including share-based remuneration, were $15.6
million, an 8% decrease. This expense consists of cash-based
compensation expense of $14.6 million, and $1.0 million of share-based
remuneration expense.
-- Marketing and distribution expenses were $12.3 million, a decrease of
6%.
-- Depreciation and amortization expenses were $5.9 million, flat
year-over-year.
-- Other operating expenses were $5.9 million, a 31% decrease driven by
reduced travel and general reductions.
-- Non-recurring costs were $3.3 million and predominantly related to the
dissolution of the Powerbets joint venture.
Operating profit was $8.0 million, representing an operating margin of 16%, compared to operating loss of $0.7 million and a negative 1% margin during the fourth quarter of 2019. The increase was primarily due to lower operating expenses and the shift away from "technology licensing and other" revenue.
Other items include share of net profit of associates and joint ventures of $5.2 million, predominantly related to Nanobank, and an $8.0 million increase in the fair value of preferred shares in Starmaker and OPay following year-end assessments. Further, net finance income was $6.6 million, primarily related to marketable securities held as part of our treasury function.
Income tax expense was $0.1 million in the quarter.
Net income was $25.4 million, comprising $27.7 million in profits from continued operations and $2.3 million loss from discontinued operations following an adjustment to the initial valuation of our shares in Nanobank. This compared to a net income of $22.0 million in the fourth quarter of 2019.
Net income per ADS was $0.22 in the quarter. Each ADS represents two shares in Opera Limited. In the quarter, the average number of shares outstanding was 229.5 million, corresponding to 114.8 million ADSs.
Adjusted EBITDA was $14.3 million, representing a 28% adjusted EBITDA margin, compared to adjusted EBITDA of $6.8 million in the fourth quarter 2019. Adjusted EBITDA excludes share-based remuneration and non-recurring expenses, as well as other income and discontinued operations.
Adjusted net income was $34.7 million in the quarter, compared to adjusted net income of $12.7 million in fourth quarter 2019. Adjusted net income excludes share-based remuneration, non-recurring expenses, discontinued operations and amortization of intangible assets related to acquisitions.
Adjusted net income per ADS was $0.30 in the quarter.
Share repurchases were 0.9 million ADSs in the quarter for a total spend of $8.2 million. In 2020, we repurchased 5.9 million ADSs for a total spend of $49.0 million.
Discontinued operations include Opera's retail business, which was discontinued following a strategic assessment as it had not been profit generating, and Opera's former emerging markets fintech business, which was contributed to Nanobank on August 19, 2020. Opera owns 42% of Nanobank as of December 31, 2020.
We have posted unaudited supplemental information at https://investor.opera.com, including: 1) Opera's financial historical results by quarter over 2019 and 2020, reflecting microlending and retail as discontinued operations; and 2) Nanobank financial results by quarter over 2019 and 2020 (pro forma prior to August 19, 2020).
Conference call
Opera's management will host a conference call to discuss the fourth quarter 2020 financial results on Thursday, February 25th at 8:00 am Eastern Time (EST) (2:00 PM Central European Time, 9:00 PM Beijing/Hong Kong time). Listeners may access the call by dialing the following numbers:
United States: +1 833 570-1161
China: +86 400 682 8609
Hong Kong: +852 5819 4851
Norway: +47 2396 4173
United Kingdom: +44 (0)203 107 0289
International: +1 918 922-6511
Confirmation Code: 6964699
A live webcast of the conference call will be posted at https://investor.opera.com.
About non-IFRS financial measures
To supplement our consolidated financial statements, which are prepared and presented based on IFRS, we use adjusted EBITDA and adjusted net income, both non-IFRS financial measures, to understand and evaluate our core operating performance. These non-IFRS financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS.
We define adjusted EBITDA as net income (loss) excluding income tax expense (benefit), net finance expense (income), share of net loss (income) of associates and joint ventures, restructuring costs, depreciation and amortization, share-based remuneration, other income, non-recurring expenses and discontinued operations.
We define adjusted net income as net income excluding share-based remuneration, amortization of acquired intangible assets, non-recurring expenses and discontinued operations, net of associated income tax adjustments.
We believe that adjusted EBITDA and adjusted net income provide useful information to investors and others in understanding and evaluating our operating results. These non-IFRS financial measures adjust for the impact of items that we do not consider indicative of the operational performance of our business. While we believe that these non-IFRS financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared and presented in accordance with IFRS. Please refer to our financial statements at the end of this announcement for a table reconciling our non-IFRS financial measures to net income (loss), the most directly comparable IFRS financial measure.
Safe harbor statement
This press release contains statements of a forward-looking nature. These statements, including statements relating to the Company and its investees' 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," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. Among other things, management's quotations and the Business outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company, its investees, and the industry in which they operate. Potential risks and uncertainties include, but are not limited to, those relating to: the duration and development of the COVID-19 pandemic as well as changes in consumer behaviours as a result of such pandemic; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company and its investees' expectations regarding demand for and market acceptance of their brands, platforms and services; Company's expectations regarding growth in its user base, user retention and level of engagement; Company's ability to attract, retain and monetize users; Company's ability to continue to develop new technologies and/or upgrade its existing technologies; 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 Company or its investees have businesses. All information provided in this press release is as of the date hereof, and the Company 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 U.S. Securities and Exchange Commission, including its annual reports on Form 20-F.
About Opera
Opera is a global web innovator. Opera's browsers, news products and fintech solutions are the trusted choice of more than 380 million monthly active users worldwide. Opera is headquartered in Oslo, Norway and listed on the NASDAQ stock exchange (OPRA).
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
[US$ thousands, except per
share and ADS amounts] 2019 2020 2019 2020
---
Revenue 48,763 50,446 177,078 165,274
Other income 3,910 9,479
Operating expenses
Cost of revenue (4,384) (2,710) (14,239) (12,112)
Personnel expenses
including share-based
remuneration (16,998) (15,606) (51,283) (59,936)
Marketing and distribution
expenses (13,148) (12,318) (64,883) (47,860)
Credit loss expense (380) (607) (580) (1,849)
Depreciation and
amortization (5,969) (5,876) (18,843) (20,234)
Non-recurring expenses (3,321) (6,543)
Other expenses (8,577) (5,929) (27,787) (23,037)
Total operating expenses (49,455) (46,367) (177,614) (171,570)
Operating profit (loss) (692) 7,990 (537) 3,182
Share of net income (loss)
of associates and joint
ventures 837 5,187 (3,818) 3,865
Change in fair value of
preferred shares in
associates 6,992 8,000 37,900 14,000
Net finance income
(expense)
Finance income 6,561 5,166 10,532 13,633
Finance expense (184) (30) (655) (516)
Net foreign exchange gain
(loss) 467 1,421 (25) 833
Net finance income
(expense) 6,844 6,557 9,851 13,950
Profit before income taxes 13,981 27,735 43,396 34,997
Income tax (expense)
benefit (3,793) (56) (2,658) (689)
Profit from continuing
operations 10,188 27,680 40,739 34,310
Profit (loss) from
discontinued operations 11,784 (2,276) 17,161 141,742
Net income 21,973 25,404 57,899 176,052
Net income attributable to:
Equity holders of the
parent 21,973 25,404 57,899 176,052
Non-controlling interests
Total net income attributed 21,973 25,404 57,899 176,052
Weighted average number of
ordinary shares
outstanding
Basic, millions(1) 237.44 229.54 224.63 234.57
Diluted, millions(2) 241.76 232.49 224.83 237.39
Profit per ordinary share
from continuing operations
Basic, US$ 0.04 0.12 0.18 0.15
Diluted, US$ 0.04 0.12 0.18 0.14
Profit per ADS from
continuing operations
Basic, US$ 0.09 0.24 0.36 0.29
Diluted, US$ 0.08 0.24 0.36 0.29
Net income per ordinary
share
Basic, US$ 0.09 0.11 0.26 0.75
Diluted, US$ 0.09 0.11 0.25 0.74
Net income per ADS
Basic, US$ 0.19 0.22 0.52 1.50
Diluted, US$ 0.18 0.22 0.51 1.48
As of December 31, 2020, the
total number of shares
outstanding for Opera Limited
was 228,285,684, equivalent to
(1) 114,142,842 ADSs.
(2) Includes the net dilutive impact
of employee equity awards, all
of which are dilutive.
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Three Months Ended Twelve Months Ended
December 31, December 31,
[US$ thousands] 2019 2020 2019 2020
---
Net income 21,973 25,404 57,899 176,052
Other comprehensive income (loss)
that may be reclassified to the
Statement of Operations in
subsequent periods (net of tax)
Exchange differences on
translation of foreign operations 301 944 (1,790) 42
Reclassification of exchange
differences on loss of control (151) 7 2,936
Share of other comprehensive
income (loss) of associates and
joint ventures (41)
Net other comprehensive income
(loss) that may be reclassified
to the Statement of Operations in
subsequent periods 301 793 (1,824) 2,978
Total comprehensive income 22,274 26,198 56,075 179,031
Total comprehensive income
attributable to:
Equity holders of the parent 22,274 26,198 56,075 179,031
Non-controlling interests
Total comprehensive income
attributed 22,274 26,198 56,075 179,031
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31,
[US$ thousands] 2019 2020
---
ASSETS
Non-current assets
Furniture, fixtures and
equipment 26,053 18,167
Intangible assets 110,807 111,954
Goodwill 421,578 424,961
Investments in associates
and joint ventures 76,300 359,576
Non-current financial
assets 1,351 1,490
Deferred tax assets 6,204 3,996
Total non-current assets 642,293 920,144
Current assets
Trade receivables 49,371 32,606
Loans to customers 93,115 68
Other receivables 59,112 10,750
Prepayments 25,809 9,061
Inventories 7,752
Other current financial
assets 1,535 856
Marketable securities 42,146
Cash and cash equivalents 139,487 134,168
Total cash, cash
equivalents, and
marketable securities 181,633 134,168
Total current assets 418,327 187,508
TOTAL ASSETS 1,060,620 1,107,652
EQUITY AND LIABILITIES
Equity
Share capital 24 24
Other paid in capital 814,177 765,129
Retained earnings 99,513 280,211
Foreign currency
translation reserve (1,508) 1,343
Equity attributed to equity
holders of the parent 912,206 1,046,707
Non-controlling interests
Total equity 912,206 1,046,707
Non-current liabilities
Non-current lease
liabilities and other
loans 9,181 3,584
Deferred tax liabilities 10,526 11,745
Other non-current
liabilities 137 68
Total non-current
liabilities 19,844 15,397
Current liabilities
Trade and other payables 57,125 25,454
Current lease liabilities
and other loans 47,793 5,389
Income tax payable 7,803 1,321
Deferred revenue 708 345
Other current liabilities 15,142 13,040
Total current liabilities 128,570 45,548
Total liabilities 148,414 60,945
TOTAL EQUITY AND
LIABILITIES 1,060,620 1,107,652
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
[US$ thousands] Share Other paid Retained Foreign Total equity
capital in capital earnings currency
translation
reserve
---
As of December 31, 2018, as
previously reported 22 738,690 36,432 316 775,460
Impact of implementing IFRS 16
Leases 64 64
As of January 1, 2019, restated 22 738,690 36,496 316 775,524
Net income 57,899 57,899
Other comprehensive income (loss) (1,824) (1,824)
Total comprehensive income (loss) 57,899 (1,824) 56,075
Contribution of equity, net of
transaction costs 2 81,267 81,267
Acquisition of treasury shares (5,780) (5,780)
Share-based remuneration expense 5,118 5,118
As of December 31, 2019 24 814,177 99,513 (1,508) 912,206
[US$ thousands] Share Other paid Retained Foreign Total equity
capital in capital earnings currency
translation
reserve
---
As of December 31, 2019 24 814,177 99,513 (1,508) 912,206
Net income 176,052 176,052
Other comprehensive
income 2,978 2,978
Total comprehensive
income 176,052 2,978 179,030
Acquisition of treasury
shares (49,049) (49,049)
Reclassification of
foreign currency
translation reserve 126 (126)
Share-based remuneration
expense 4,521 4,521
As of December 31, 2020 24 765,129 280,211 1,343 1,046,708
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Three Months Ended Twelve Months Ended
December 31, December 31,
[US$ thousands] 2019 2020 2019 2020
---
Cash flow from operating
activities
Net income (loss) before
income taxes from
continuing operations 13,981 27,735 43,396 34,997
Net income (loss) before
income taxes from
discontinued operations 12,621 (734) 20,124 139,792
Income taxes paid (8,503) (1,886) (9,870) (9,887)
Depreciation and
amortization 6,000 5,879 18,934 20,390
Share of net loss (income)
of associates and joint
ventures (837) (5,187) 3,818 (3,865)
Change in fair value of
preferred shares in
associates and joint
ventures (6,992) (8,000) (37,900) (14,000)
Equity component of share-
based payment expense 1,478 886 5,118 4,521
Gain on disposal of fintech
segment (152,048)
Net finance income (expense) (6,028) (6,557) (8,756) (13,950)
Change in inventories (5,820) 179 (7,752) 7,752
Change in trade and other
receivables (3,691) (544) (14,206) 19,572
Change in loans to customers (37,607) (68) (90,023) 73,365
Change in trade and other
payables 15,583 (605) 39,168 (25,135)
Change in deferred revenue (451) (2,404) (1,224) (346)
Change in prepayments 1,048 4,645 (11,437) 12,032
Change in other liabilities 2,322 4,036 5,441 (1,482)
Other 44 112 706 1,616
Net cash flow from (used in)
operating activities (16,852) 17,487 (44,464) 93,324
Cash flow from investment
activities
Purchase of intangibles
assets (8) (2,286)
Proceeds from sales of
equipment and intangible
assets 6 6
Purchase of equipment (1,714) (165) (8,868) (2,484)
Investment in, and loans to
associates and joint
ventures (911) (440) (6,550) (440)
Acquisition of subsidiary,
net of cash acquired (4,882)
Disbursement of short-term
loans (4,497)
Cash transferred with Okash
Group (39,260)
Release of escrow account 1,000
Repayment of short-term
loans 4,497
Repayment of loans to
associates and joint
ventures 726
Deposit of collateral for
loan facility (52,878) (52,878) (1,000)
Net sale (purchase) of
listed equity instruments 10,423 61,624 (35,250) 58,535
Development expenditure (964) (615) (4,173) (6,553)
Interest income received (205) 326
Net cash flow from (used in)
investing activities (46,038) 60,191 (106,987) 2,956
Cash flow from financing
activities
Acquisition of treasury
shares (8,194) (5,780) (49,049)
Proceeds from loans and
borrowings 21,543 43,163 6,905
Interests on loans and
borrowings (797) (75) (1,184) (1,752)
Proceeds from issues of
equity instruments 10,778 82,630
Repayment of loans and
borrowings (172) 305 (1,509) (52,874)
Transaction costs on issue
of equity instruments (497) (1,364)
Payment of lease liabilities (426) (2,755) (4,202)
Net cash flow from (used in)
financing activities 30,855 (8,390) 113,200 (100,972)
Net change in cash and cash
equivalents (32,034) 69,288 (38,248) (4,692)
Cash and cash equivalents at
beginning of period 170,697 64,416 177,873 139,487
Net foreign exchange
difference 825 465 (137) (627)
Cash and cash equivalents at
end of period 139,487 134,168 139,487 134,168
Financial details by business area
The tables below specify the contribution by each business area:
[US$ thousands] Three Months Ended December 31, 2019
Business area Browser and Other Total
News
---
Revenue categories
Search 22,641 22,641
Advertising 20,164 20,164
Technology licensing and
other revenue 5,958 5,958
Total revenue 42,805 5,958 48,763
Cost of revenue (1,030) (3,354) (4,384)
Marketing and distribution
expenses (13,148) (13,148)
Credit loss expense (249) (131) (380)
Direct expenses (14,427) (3,485) (17,912)
Contribution by business
area 28,378 2,473 30,852
[US$ thousands] Three Months Ended December 31, 2020
Business area Browser and Other Total
News
---
Revenue categories
Search 25,653 25,653
Advertising 23,121 180 23,301
Technology
licensing and
other revenue 1,492 1,492
Total revenue 48,774 1,672 50,446
Cost of revenue (1,873) (837) (2,710)
Marketing and
distribution
expenses (12,068) (250) (12,318)
Credit loss
expense (34) (573) (607)
Direct expenses (13,975) (1,660) (15,635)
Contribution by
business area 34,799 12 34,810
[US$ thousands] Twelve Months Ended December 31, 2019
Business area Browser and Other Total
News
---
Revenue categories
Search 86,155 86,155
Advertising 68,813 68,813
Technology
licensing and
other revenue 22,111 22,111
Total revenue 154,968 22,111 177,078
Cost of revenue (2,642) (11,597) (14,239)
Marketing and
distribution
expenses (64,685) (198) (64,883)
Credit loss
expense (448) (132) (580)
Direct expenses (67,776) (11,927) (79,702)
Contribution by
business area 87,192 10,184 97,376
[US$ thousands] Twelve Months Ended December 31, 2020
Business area Browser and Other Total
News
---
Revenue categories
Search 84,180 84,180
Advertising 71,510 216 71,726
Technology
licensing and
other revenue 9,368 9,368
Total revenue 155,690 9,584 165,274
Cost of revenue (7,487) (4,625) (12,112)
Marketing and
distribution
expenses (47,042) (818) (47,860)
Credit loss
expense (568) (1,281) (1,849)
Direct expenses (55,097) (6,724) (61,821)
Contribution by
business area 100,593 2,860 103,453
Personnel expenses including share-based remuneration
The table below specifies the amounts of personnel expenses including share-based remuneration:
[US$ thousands] Three Months Ended Twelve Months Ended
December 31, December 31,
Personnel expenses including
share-based remuneration 2019 2020 2019 2020
---
Personnel expenses excluding
share-based remuneration 15,523 14,614 45,355 55,230
Share-based remuneration,
including related social
security costs 1,475 992 5,928 4,706
Total 16,998 15,606 51,283 59,936
Other expenses
The table below specifies the nature of other expenses:
[US$ thousands] Three Months Ended Twelve Months Ended
December 31, December 31,
Other expenses 2019 2020 2019 2020
---
Hosting 1,873 2,115 7,151 8,056
Audit, legal and
other advisory
services 1,598 1,529 6,742 5,837
Software license fees 385 432 2,169 1,882
Rent and other office
expense 949 1,015 4,175 3,318
Travel 1,549 209 3,903 1,304
Other 2,222 628 3,645 2,640
Total 8,576 5,929 27,787 23,037
Non-IFRS financial measures
Three Months Ended Twelve Months Ended
December 31, December 31,
[US$ thousands, except per
share and ADS amounts] 2019 2020 2019 2020
---
Reconciliation of net income
(loss) to adjusted EBITDA
---
Net income (loss) 21,973 25,404 57,899 176,052
Add: Income tax expense
(benefit) 3,793 56 2,658 689
Add: Net finance expense
(income) (6,844) (6,557) (9,851) (13,950)
Add: Share of net loss
(income) of associates and
joint ventures (837) (5,187) 3,818 (3,865)
Add: Change in fair value of
preferred shares in
associates (6,992) (8,000) (37,900) (14,000)
Add: Depreciation and
amortization 5,969 5,876 18,843 20,234
Add: Share-based
remuneration 1,475 992 5,928 4,706
Add: Non-recurring expenses 3,321 6,543
Less: Other income (3,910) (9,479)
Less: Profit (loss) from
discontinued operations (11,784) 2,276 (17,161) (141,742)
Adjusted EBITDA 6,752 14,271 24,233 25,188
Reconciliation of net income
(loss) to adjusted net
income
---
Net Income (loss) 21,973 25,404 57,899 176,052
Add: Share-based
remuneration 1,483 992 5,928 4,706
Add: Amortization of acquired
intangible assets 1,280 1,341 5,120 5,356
Add: Amortization of Nanobank
intangible assets(1) 1,684 2,584
Add: Non-recurring expenses 3,321 6,543
Income tax adjustment (2) (305) (319) (1,311) (1,218)
Less: Profit (loss) from
discontinued operations (11,784) 2,276 (17,161) (141,742)
Adjusted net income 12,662 34,699 50,475 52,280
Weighted average number of
ordinary shares outstanding
Basic, millions 237.44 229.54 224.63 234.57
Diluted, millions 241.76 232.49 224.83 237.39
Adjusted net income (loss)
per ordinary share
Basic, US$ 0.05 0.15 0.22 0.22
Diluted, US$ 0.05 0.15 0.22 0.22
Adjusted net income (loss)
per ADS
Basic, US$ 0.11 0.30 0.44 0.45
Diluted, US$ 0.10 0.30 0.45 0.44
(1) The amortization of Nanobank intangible
assets is included in the line "Share
of net income (loss) of associates and
joint ventures".
(2) Reversal of tax benefit related to the
social security cost component of
share-based remuneration and deferred
taxes on the amortization of acquired
intangible assets.
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SOURCE Opera Limited
