Opera reports fourth quarter and full-year 2021 Results

February 17, 2022 at 7:00 AM EST
PDF Version
Both revenue and adjusted EBITDA exceeded expectations
Q4 revenue grew 45% year-over-year driven by strong product portfolio and growth in high ARPU markets
Company announced a $50 million buyback program
Company issues 2022 guidance for revenue growth of 22% and adjusted EBITDA growth of 97% with a 18% margin at the midpoint

OSLO, Norway, Feb. 17, 2022 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's largest internet consumer brands with hundreds of millions of users worldwide, today announced its unaudited consolidated financial results for the quarter ended December 31, 2021.

Fourth quarter and full year 2021 financial highlights

   

Three Months Ended December 31,

    

Year-over-

    

Twelve Months Ended December 31,

    

Year-over-

  

[US$ thousands, except for margins and per ADS amounts]

  

2020

    

2021

    

year %
change  

    

2020

    

2021

    

year %
change  

  

Revenue

    

50,229

      

72,626

      

44.6

%

    

165,056

      

250,991

      

52.1

%
                                                 

Net income (loss)

    

28,527

      

(84,209)

      

-395.2

%

    

179,174

      

(15,784)

      

-108.8

%

Margin

    

56.8

%

    

-115.9

%

            

108.6

%

    

-6.3

%

        
                                                 

Adjusted EBITDA (1)

    

14,052

      

16,091

      

14.5

%

    

24,969

      

27,850

      

11.5

%

Margin

    

28.0

%

    

22.2

%

            

15.1

%

    

11.1

%

        
                                                 

Adjusted net income (loss) (1)

    

45,298

      

(77,906)

      

-272.0

%

    

62,876

      

5,661

      

-91.0

%

Margin

    

90.2

%

    

-107.3

%

            

38.1

%

    

2.3

%

        
                                                 

Diluted net income (loss) per ADS, US$

    

0.25

      

(0.73)

      

-395.5

%

    

1.51

      

(0.14)

      

-109.0

%
                                                 

Diluted adjusted net income (loss) per ADS, US$ (1)

    

0.38

      

(0.68)

      

-279.1

%

    

0.53

      

0.05

      

-90.8

%
   

(1) Please see the separate section "About non-IFRS financial measures" for the definitions of adjusted EBITDA and adjusted net income.         

"We're very excited that both revenue and adjusted EBITDA came in ahead of expectations, closing out a very strong 2021", said Co-CEO Song Lin. "Looking back, we can conclude that our investments in marketing to accelerate our growth trajectory and strengthen our position in higher-ARPU markets, and investments in our strong and growing product portfolio, have paid off."

"Even more encouragingly, as we look ahead, we have every expectation that we will continue a healthy growth trajectory from this elevated scale, with margins continuing to normalize."

Fourth Quarter and Recent Business Highlights

  • Core search and advertising revenue growth rates grew 47% year-over-year in the fourth quarter, driven by strong browser and news performance.
  • Opera's average monthly active user base was 344 million MAUs in the quarter; with a continued directional shift towards higher ARPU markets. User growth was the strongest in the Americas, this time led by Latin America up 35% and North America up 22%, while we continue to focus investments in emerging markets more specifically towards users that are monetizable.
  • In the fourth quarter, each user on average generated a record 83 cents of revenue on an annualized basis, up 11% sequentially, and up 62% compared to the fourth quarter of 2020.
  • The Opera GX gaming browser had over 14 million monthly active users across PC and mobile during the fourth quarter.
  • The beta version of the Opera Web 3.0 browser was released as the newest addition to our family of browsers.
  • Our equity-accounted investee Nanobank has experienced a prolonged period of inability to operate in India, and as a result we have impaired all assets and intangible values related to its Indian subsidiary, totaling $82.6 million and resulting in a negative net income for the year.
  • Opera announced a $50 million stock buyback program that is in effect for the next two years.

Business Outlook

"We are very pleased that the strategy we have embarked on is already paying off," said CFO Frode Jacobsen. "It is encouraging that our margins normalized faster than anticipated as our investments in the business have resulted in revenue growth ahead of plan."

For the first quarter of 2022, Opera expects revenue of $67 million to $70 million, representing 33% year-over-year growth at the midpoint and reflecting normal seasonality, while benefiting from the additional scale we built throughout 2021. Adjusted EBITDA is expected to be between $4 million and $7 million.

For the full year of 2022, Opera expects revenue of $300 million to $310 million, representing a 22% year-over-year increase at the midpoint. We expect adjusted EBITDA to be between $50 million and $60 million, or an 18% margin at the midpoint, versus 11% for 2021. Our 2022 results are expected to benefit from the continued growth of our products in Western markets as well as the continuation of underlying ARPU improvements across all of our regions.

Other updates

Opera holds valuable investments in OPay (6.44%), StarMaker (19.35%), and Nanobank (42.35%).

Nanobank, our equity-accounted investee which provides microlending services in several emerging markets, saw record activity in all of its active markets except for India. As we noted in our third quarter report, Nanobank's Indian subsidiary became subject to inspection by the Ministry of Finance of India and now by its regulator, with particular focus on the fees paid for use of technology and platform infrastructure that is developed centrally by Nanobank for use across all of its operating markets. That process has taken months, and is still ongoing. Pending a resolution, a substantial portion of the funds of Nanobank's Indian subsidiary have been subject to seizure, effectively halting its entire Indian operation. As a consequence of the prolonged situation and lack of clarity, Nanobank has recognized material provisions and impairments in the fourth quarter to bring the book value of its Indian subsidiary to zero; consequently we have impaired our investment in Nanobank to reflect the circumstances. That led to substantial non-cash losses in the quarter, partially offsetting the accounting gain associated with the creation of Nanobank in the third quarter of 2020. While we are taking an appropriate approach in our financial statements, Nanobank remains highly engaged to facilitate a return of operations.

Fourth quarter 2021 consolidated financial results

All comparisons in this section are relative to the fourth quarter of 2020 unless otherwise stated.

Revenue increased 45% to $72.6 million in the quarter.

  • Search revenue increased by 35% to $34.8 million driven by both PC and mobile browser monetization growth.
  • Advertising revenue increased by 59% to $36.7 million, predominantly fueled by monetization growth within Opera News, our ad tech platform and our mobile browsers.
  • Technology licensing and other revenue was $1.2 million.

Operating expenses increased by 31% to $70.6 million.

  • Combined technology and platform fees, content cost and cost of inventory sold was $5.5 million, a 150% increase following the scaling of associated revenues.
  • Personnel expenses, including share-based remuneration, were $18.0 million, a 13% increase. This expense consists of cash-based compensation expense of $14.9 million, nearly flat year-over-year, and $3.1 million of share-based remuneration expense.
  • Marketing and distribution expenses were $30.3 million, an increase of $18.0 million or 146% versus the fourth quarter of 2020, while representing a slight decline compared to the immediate prior quarters.
  • Depreciation and amortization expenses were $4.6 million, a 22% decrease as relevant asset bases declined over time.
  • Impairment of non financial assets of $6.4 million were mainly related to our decision to close our fintech office in Tallinn.
  • Other operating expenses were $5.7 million, a 16% decrease predominantly driven by reductions in credit loss expenses and professional services.

Operating profit was $2.2 million compared to an operating profit of $2.4 million in the fourth quarter of 2020.

Other items in the quarter include a total impairment of $82.6 million related to the Indian subsidiary of Nanobank. $62.1 million of this amount is recorded in a new line item called impairment of associates and joint ventures and the remaining $20.5 million is included as the main component in our share of net loss of associates and joint ventures.

Income tax expense was $2.4 million in the quarter.

Net loss was $84.2 million. This compared to a net income of $28.5 million in the fourth quarter of 2020.

Net loss per ADS was $0.73 in the quarter. Each ADS represents two shares in Opera Limited. In the quarter, the average number of shares outstanding was 230.3 million, corresponding to 115.1 million ADSs.

Adjusted EBITDA was $16.1 million, representing a 22% adjusted EBITDA margin, compared to adjusted EBITDA of $14.1 million in the fourth quarter of 2020. Adjusted EBITDA excludes share-based remuneration and non-recurring expenses, as well as other income and discontinued operations.

Adjusted net loss was $77.9 million in the quarter, compared to adjusted net income of $45.3 million in the fourth quarter of 2020. Adjusted net income excludes share-based remuneration, non-recurring expenses, discontinued operations and amortization of intangible assets related to acquisitions.

Adjusted net loss per ADS was $0.67 in the quarter.

We have posted unaudited supplemental information at https://investor.opera.com, including: 1) Opera's financial historical results by quarter since 2019; and 2) Nanobank financial results by quarter since 2019 (pro forma prior to August 19, 2020).

Conference call

Opera's management will host a conference call to discuss the fourth quarter 2021 financial results on Thursday, February 17th 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: +1 877-895-3361
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: OPRAQ421

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 @InvestorOpera.

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, other loss (income) from long-term investments, impairments, depreciation and amortization, share-based remuneration, non-recurring expenses, and excluding other income and profit (loss) from discontinued operations.

We define adjusted net income as net income (loss) excluding share-based remuneration, amortization cost related to acquired intangible assets, amortization of Nanobank intangible assets, non-recurring expenses, and excluding profit (loss) from discontinued operations, adjusted for the associated tax benefit related to such items.

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," "may," "expect," "believe," "anticipate," "intend," "aim," "estimate," "intend," "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, 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 behaviors as a result of such pandemic; 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 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, 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 Company or its investees have businesses. 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 global web innovator. Opera's browsers, news products and fintech solutions are the trusted choice of hundreds of millions of users worldwide. Opera is headquartered in Oslo, Norway and listed on the NASDAQ stock exchange (OPRA). Download the Opera browser from www.opera.com.

Learn more about Opera at www.investor.opera.com or on Twitter @InvestorOpera.

 

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 
   

  Three Months Ended
December 31,

    

Twelve Months Ended
December 31,

  

[US$ thousands, except per share and ADS amounts]

  

2020

    

2021

    

2020

    

2021

  

Revenue

    

50,229

      

72,626

      

165,056

      

250,991

  

Other income

    

5,974

      

248

      

11,542

      

466

  

Operating expenses:

                                

Technology and platform fees

    

(941)

      

(1,297)

      

(3,315)

      

(4,472)

  

Content cost

    

(842)

      

(1,200)

      

(4,312)

      

(3,712)

  

Cost of inventory sold

    

(431)

      

(3,043)

      

(700)

      

(5,507)

  

Personnel expenses including share-based remuneration

    

(15,782)

      

(18,043)

      

(62,103)

      

(74,825)

  

Marketing and distribution expenses

    

(12,318)

      

(30,344)

      

(47,860)

      

(121,319)

  

Credit loss expense

    

(607)

      

(172)

      

(1,849)

      

(557)

  

Credit loss expense related to divested joint venture

    

(10,476)

      

-

      

(10,476)

      

-

  

Depreciation and amortization

    

(5,877)

      

(4,555)

      

(20,234)

      

(19,600)

  

Impairment of non-financial assets

    

-

      

(6,414)

      

-

      

(6,414)

  

Non-recurring expenses

    

(321)

      

-

      

(3,543)

      

-

  

Other expenses

    

(6,248)

      

(5,567)

      

(24,654)

      

(22,802)

  

Total operating expenses

    

(53,843)

      

(70,634)

      

(179,046)

      

(259,208)

  

Operating profit (loss)

    

2,360

      

2,240

      

(2,448)

      

(7,751)

  

Share of net income (loss) of associates and joint ventures

    

3,327

      

(21,779)

      

2,005

      

(26,675)

  

Fair value gain from associates and other long-term investments

    

18,000

      

4,733

      

24,000

      

90,193

  

Impairment of associates and joint ventures

    

-

      

(62,089)

      

-

      

(62,089)

  

Net finance income (expense):

                                

Finance income

    

5,166

      

97

      

13,633

      

123

  

Finance expense

    

(30)

      

(3,853)

      

(516)

      

(6,912)

  

Net foreign exchange gain (loss)

    

1,421

      

(308)

      

833

      

(1,814)

  

Net finance income (expense)

    

6,557

      

(4,064)

      

13,950

      

(8,603)

  

Profit (loss) before income taxes

    

30,244

      

(80,959)

      

37,507

      

(14,925)

  

Income tax (expense) benefit

    

558

      

(2,435)

      

(75)

      

(43)

  

Profit (loss) from continuing operations

    

30,803

      

(83,394)

      

37,432

      

(14,968)

  

Profit (loss) from discontinued operations

    

(2,276)

      

(816)

      

141,742

      

(816)

  

Net income (loss) attributable to owners of the parent

    

28,527

      

(84,209)

      

179,174

      

(15,784)

  
                                 

Weighted average number of ordinary shares outstanding:

                                

Basic, millions (1)

    

229.54

      

230.29

      

234.57

      

230.28

  

Diluted, millions (2)

    

232.49

      

230.29

      

237.39

      

230.28

  

Earnings per ADS and per share for profit (loss) from continuing operations:

                                

Basic earnings per ADS, US$

    

0.27

      

(0.72)

      

0.32

      

(0.13)

  

Basic earnings per share, US$

    

0.13

      

(0.36)

      

0.16

      

(0.06)

  

Diluted earnings per ADS, US$

    

0.26

      

(0.72)

      

0.32

      

(0.13)

  

Diluted earnings per share, US$

    

0.13

      

(0.36)

      

0.16

      

(0.06)

  

Earnings per ADS and per share for net income (loss):

                                

Basic earnings per ADS, US$

    

0.25

      

(0.73)

      

1.53

      

(0.14)

  

Basic earnings per share, US$

    

0.12

      

(0.37)

      

0.76

      

(0.07)

  

Diluted earnings per ADS, US$

    

0.25

      

(0.73)

      

1.51

      

(0.14)

  

Diluted earnings per share, US$

    

0.12

      

(0.37)

      

0.75

      

(0.07)

  
 

(1) As of December 31, 2021, the total number of shares outstanding for Opera Limited was 230,291,732, equivalent to 115,145,866 ADSs.
 

(2) Includes the net dilutive impact of employee equity awards. In 2021, including the fourth quarter, potential ordinary shares issuable upon the vesting of employee equity awards have an antidilutive impact on the amounts for diluted earnings per ADS and per share, and are thus excluded.

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
 
   

Three Months Ended
December 31,

    

Twelve Months Ended
December 31,

  

[US$ thousands]

  

2020

    

2021

    

2020

    

2021

  

Net income (loss)

    

28,527

      

(84,209)

      

179,174

      

(15,784)

  

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

    

944

      

(437)

      

42

      

(1,156)

  

Reclassification of exchange differences on loss of control

    

2,936

      

-

      

2,936

      

-

  

Share of other comprehensive income (loss) of associates and joint ventures

    

(935)

      

227

      

(935)

      

227

  

Other comprehensive income (loss)

    

2,945

      

(210)

      

2,043

      

(928)

  

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

    

31,473

      

(84,419)

      

181,217

      

(16,711)

  

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
 
   

As of December 31,

  

[US$ thousands]

  

2020

    

2021

  

Assets:

                

Property and equipment

    

18,167

      

12,263

  

Intangible assets

    

111,954

      

103,627

  

Goodwill

    

424,961

      

429,588

  

Investments in associates and joint ventures

    

364,946

      

233,505

  

Other long-term investments

    

-

      

85,497

  

Non-current receivables

    

1,490

      

1,980

  

Deferred tax assets

    

4,383

      

2,323

  

Total non-current assets

    

925,901

      

868,784

  
                 

Trade receivables

    

28,809

      

43,864

  

Other current receivables

    

11,674

      

18,538

  

Prepayments

    

9,061

      

9,192

  

Marketable securities

    

-

      

78,135

  

Cash and cash equivalents

    

134,168

      

102,876

  

Total cash, cash equivalents, and marketable securities

    

134,168

      

181,011

  

Total current assets

    

183,712

      

252,607

  

Total assets

    

1,109,612

      

1,121,391

  
                 

Equity:

                

Share capital

    

24

      

24

  

Other paid in capital

    

765,129

      

764,381

  

Retained earnings

    

283,334

      

277,335

  

Foreign currency translation reserve

    

408

      

(520)

  

Total equity attributable to owners of the parent

    

1,048,895

      

1,041,220

  
                 

Liabilities:

                

Non-current lease liabilities and other loans

    

3,584

      

2,081

  

Deferred tax liabilities

    

11,745

      

6,532

  

Other non-current liabilities

    

68

      

23

  

Total non-current liabilities

    

15,397

      

8,635

  
                 

Trade and other payables

    

25,454

      

38,753

  

Current lease liabilities and other loans

    

5,389

      

11,427

  

Income tax payable

    

1,094

      

763

  

Deferred revenue

    

345

      

1,092

  

Other current liabilities

    

13,040

      

19,500

  

Total current liabilities

    

45,320

      

71,536

  

Total liabilities

    

60,717

      

80,171

  

Total equity and liabilities

    

1,109,612

      

1,121,391

  

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

  
                                         

[US$ thousands]

  

Share
capital

    

Other paid
in capital

    

Retained
earnings

    

Foreign
currency
translation
reserve

    

Total equity
attributable
to owners of
the parent

 

As of December 31, 2019

    

24

      

814,177

      

99,513

      

(1,508)

      

912,206

  

Net income

    

-

      

-

      

179,174

      

-

      

179,174

  

Other comprehensive income

    

-

      

-

      

-

      

2,043

      

2,043

  

Total comprehensive income

    

-

      

-

      

179,174

      

2,043

      

181,217

  

Reclassification of foreign currency translation reserve

    

-

      

-

      

126

      

(126)

      

-

  

Acquisition of treasury shares

    

-

      

(49,049)

      

-

      

-

      

(49,049)

  

Share-based remuneration expense

    

-

      

-

      

4,521

      

-

      

4,521

  

As of December 31, 2020

    

24

      

765,129

      

283,334

      

408

      

1,048,895

  

Net loss

    

-

      

-

      

(15,784)

      

-

      

(15,784)

  

Other comprehensive loss

    

-

      

-

      

-

      

(928)

      

(928)

  

Total comprehensive loss

    

-

      

-

      

(15,784)

      

(928)

      

(16,712)

  

Acquisition of treasury shares

    

-

      

(749)

      

-

      

-

      

(749)

  

Share-based remuneration expense

    

-

      

-

      

9,785

      

-

      

9,785

  

As of December 31, 2021

    

24

      

764,381

      

277,336

      

(520)

      

1,041,220

  

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

  
                                 
   

Three Months Ended
December 31,

    

Twelve Months Ended
December 31,

  

[US$ thousands]

  

2020

    

2021

    

2020

    

2021

  

Cash flow from operating activities:

                                

Profit (loss) before income taxes from continuing operations

    

28,996

      

(80,959)

      

37,507

      

(14,925)

  

Profit (loss) before income taxes from discontinued operations

    

515

      

(1,053)

      

139,792

      

(1,053)

  

Adjustments to reconcile profit before income taxes to net cash flows:

    

-

                          

Depreciation and amortization

    

5,879

      

4,555

      

20,390

      

19,600

  

Impairment of non-financial assets

    

-

      

6,414

      

-

      

6,414

  

Share of net loss (income) of associates and joint ventures

    

(3,327)

      

21,779

      

(2,005)

      

26,675

  

Fair value gain from associates and other long-term investments

    

(18,000)

      

(4,733)

      

(24,000)

      

(90,193)

  

Impairment of associates and joint ventures

            

62,089

      

-

      

62,089

  

Equity component of share-based payment expense

    

886

      

3,672

      

4,521

      

9,785

  

Gain on disposal of emerging market fintech operations

    

680

      

-

      

(151,368)

      

-

  

Impact of divestment of joint venture

    

1,834

      

-

      

1,834

      

-

  

Net finance income (expense)

    

(4,587)

      

4,064

      

(11,980)

      

8,603

  

Other adjustments

    

(2,971)

      

(715)

      

(1,466)

      

(1,833)

  

Changes in working capital:

                                

Change in inventories

    

179

      

24

      

7,752

      

24

  

Change in trade and other receivables

    

1,985

      

541

      

22,101

      

(7,383)

  

Change in loans to customers

    

1,631

      

53

      

75,064

      

68

  

Change in trade and other payables

    

(605)

      

2,162

      

(25,135)

      

13,300

  

Change in deferred revenue

    

(2,404)

      

505

      

(346)

      

747

  

Change in prepayments

    

4,645

      

1,410

      

12,032

      

(132)

  

Change in other liabilities

    

4,037

      

776

      

(1,482)

      

229

  

Income taxes paid

    

(1,886)

      

(4,112)

      

(9,887)

      

(5,452)

  

Net cash flow from (used in) operating activities

    

17,487

      

16,473

      

93,324

      

26,564

  

Cash flow from investment activities:

                                

Purchase of intangibles assets

    

(8)

      

-

      

(2,286)

      

-

  

Purchase of equipment

    

(165)

      

(75)

      

(2,484)

      

(1,060)

  

Acquisition of subsidiary, net of cash acquired

            

-

      

(4,882)

      

(9,008)

  

Cash transferred upon loss of control over emerging market fintech operations

    

-

      

-

      

(39,260)

      

-

  

Release of escrow account

    

-

      

-

      

1,000

      

-

  

Deposit of collateral for subsidiaries' loan facility

    

-

      

-

      

(1,000)

      

-

  

Disbursement of short-term loans

    

-

      

-

      

(6,332)

      

-

  

Repayment of short-term loans

    

-

      

-

      

6,332

      

-

  

Investment in, and loans to associates and joint ventures

    

(440)

      

-

      

(440)

      

-

  

Net sale (purchase) of listed equity instruments

    

61,624

      

-

      

58,535

      

(84,835)

  

Proceeds from sale of shares in associate

    

-

      

-

      

-

      

50,000

  

Interest income received

    

(205)

      

14

      

326

      

35

  

Development expenditure

    

(615)

      

(1,476)

      

(6,553)

      

(4,836)

  

Net cash flow from (used in) investing activities

    

60,191

      

(1,537)

      

2,956

      

(49,703)

  

Cash flows from financing activities:

                                

Acquisition of treasury shares

    

(8,194)

      

-

      

(49,049)

      

(749)

  

Proceeds from loans and borrowings

    

-

      

-

      

6,905

      

-

  

Interests on loans and borrowings

    

(75)

      

(73)

      

(1,752)

      

(316)

  

Repayment of loans and borrowings

    

305

      

(87)

      

(52,874)

      

(499)

  

Payment of lease liabilities

    

(426)

      

(1,334)

      

(4,202)

      

(5,119)

  

Net cash flow from (used in) financing activities

    

(8,390)

      

(1,495)

      

(100,972)

      

(6,683)

  

Net change in cash and cash equivalents

    

69,288

      

13,441

      

(4,692)

      

(29,822)

  

Cash and cash equivalents at beginning of period

    

64,416

      

89,964

      

139,487

      

134,168

  

Net foreign exchange difference

    

465

      

(530)

      

(627)

      

(1,472)

  

Cash and cash equivalents at end of period

    

134,168

      

102,876

      

134,168

      

102,876

  

 

Financial details by business area
 

The tables below specify the contribution by each business area:
 

[US$ thousands]

  

Three Months Ended December 31, 2020

  

Business area

  

Browser and
News

    

Other

    

Total

  

Revenue categories:

                        

Search

    

25,653

      

-

      

25,653

  

Advertising

    

23,083

      

-

      

23,083

  

Technology licensing and other revenue

    

-

      

1,492

      

1,492

  

Total revenue

    

48,736

      

1,492

      

50,229

  

Direct expenses:

                        

Technology and platform fees

    

(941)

      

-

      

(941)

  

Content cost

    

(842)

      

-

      

(842)

  

Cost of inventory sold

    

-

      

(431)

      

(431)

  

Other cost of revenue (1)

    

(42)

      

(516)

      

(558)

  

Marketing and distribution expenses

    

(12,068)

      

(250)

      

(12,318)

  

Credit loss expense

    

(494)

      

-

      

(494)

  

Total direct expenses

    

(14,387)

      

(1,197)

      

(15,584)

  

Contribution by business area

    

34,349

      

295

      

34,645

  
 

(1) Includes expenses presented separately in the Statement of Operations as part of personnel and other expenses, including audit, legal and other advisory services, that were included in the cost invoiced certain customers.

 

[US$ thousands]

  

Three Months Ended December 31, 2021

  

Business area

  

Browser and
News

    

Other

    

Total

  

Revenue categories:

                        

Search

    

34,751

      

-

      

34,751

  

Advertising

    

37,309

      

(643)

      

36,666

  

Technology licensing and other revenue

    

2,182

      

(972)

      

1,210

  

Total revenue

    

74,242

      

(1,615)

      

72,626

  

Direct expenses:

                        

Technology and platform fees

    

(1,264)

      

(32)

      

(1,297)

  

Content cost

    

(1,222)

      

22

      

(1,200)

  

Cost of inventory sold

    

(3,488)

      

445

      

(3,043)

  

Marketing and distribution expenses

    

(30,519)

      

175

      

(30,344)

  

Credit loss expense

    

(208)

      

36

      

(172)

  

Total direct expenses

    

(36,701)

      

646

      

(36,055)

  

Contribution by business area

    

37,541

      

(969)

      

36,572

  

 

[US$ thousands]

  

Twelve Months Ended December 31, 2020

  

Business area

  

Browser and
News

    

Other

    

Total

  

Revenue categories:

                        

Search

    

84,180

      

-

      

84,180

  

Advertising

    

71,292

      

216

      

71,508

  

Technology licensing and other revenue

    

-

      

9,368

      

9,368

  

Total revenue

    

155,472

      

9,584

      

165,056

  

Direct expenses:

                        

Technology and platform fees

    

(3,315)

      

-

      

(3,315)

  

Content cost

    

(4,312)

      

-

      

(4,312)

  

Cost of inventory sold

    

-

      

(700)

      

(700)

  

Other cost of revenue

    

140

      

(3,925)

      

(3,785)

  

Marketing and distribution expenses

    

(47,042)

      

(818)

      

(47,860)

  

Credit loss expense

    

(568)

      

(1,281)

      

(1,849)

  

Total direct expenses

    

(55,098)

      

(6,724)

      

(61,822)

  

Contribution by business area

    

100,374

      

2,860

      

103,234

  

 

[US$ thousands]

  

Twelve Months Ended December 31, 2021

  

Business area

  

Browser and
News

    

Other

    

Total

  

Revenue categories:

                        

Search

    

121,961

      

-

      

121,961

  

Advertising

    

123,870

      

40

      

123,910

  

Technology licensing and other revenue

    

2,182

      

2,937

      

5,120

  

Total revenue

    

248,013

      

2,978

      

250,991

  

Direct expenses:

                        

Technology and platform fees

    

(3,899)

      

(573)

      

(4,472)

  

Content cost

    

(3,712)

      

-

      

(3,712)

  

Cost of inventory sold

    

(5,506)

      

(1)

      

(5,507)

  

Marketing and distribution expenses

    

(120,760)

      

(559)

      

(121,319)

  

Credit loss expense

    

(557)

      

-

      

(557)

  

Total direct expenses

    

(134,434)

      

(1,132)

      

(135,566)

  

Contribution by business area

    

113,579

      

1,846

      

115,425

  

 

Personnel expenses including share-based remuneration
 

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

[US$ thousands]

  

Three Months Ended
December 31,

    

Twelve Months Ended
December 31,

  

Personnel expenses including share-based remuneration

  

2020

    

2021

    

2020

    

2021

  

Personnel expenses excluding share-based remuneration

    

14,790

      

14,913

      

57,397

      

64,772

  

Share-based remuneration, including related social security costs

    

992

      

3,130

      

4,706

      

10,053

  

Total

    

15,782

      

18,043

      

62,103

      

74,825

  

 

Other expenses
 

The table below specifies the nature of other expenses:
 

[US$ thousands]

  

Three Months Ended December 31,

    

Twelve Months Ended December 31,

  

Other expenses

  

2020

    

2021

    

2020

    

2021

  

Hosting

    

2,114

      

1,933

      

8,056

      

7,647

  

Audit, legal and other advisory services

    

1,828

      

1,351

      

7,265

      

6,579

  

Software license fees

    

432

      

451

      

1,882

      

1,782

  

Rent and other office expense

    

1,016

      

786

      

3,318

      

3,152

  

Travel

    

209

      

223

      

1,304

      

542

  

Other

    

649

      

822

      

2,827

      

3,101

  

Total

    

6,248

      

5,567

      

24,654

      

22,802

  

 

Non-IFRS financial measures
 
   

Three Months Ended
December 31,

    

Twelve Months Ended
December 31,

  

[US$ thousands, except per share and ADS amounts]

  

2020

    

2021

    

2020

    

2021

  

Reconciliation of net income (loss) to adjusted EBITDA:

                                

Net income (loss)

    

28,527

      

(84,209)

      

179,174

      

(15,784)

  

Add: Income tax expense (benefit)

    

(558)

      

2,435

      

75

      

43

  

Add: Net finance expense (income)

    

(6,557)

      

4,064

      

(13,950)

      

8,603

  

Add: Share of net loss (income) of associates and joint ventures

    

(3,327)

      

21,779

      

(2,005)

      

26,675

  

Add: Other loss (income) from long-term investments

    

(18,000)

      

(4,733)

      

(24,000)

      

(90,193)

  

Add: Depreciation and amortization

    

5,877

      

4,555

      

20,234

      

19,600

  

Add: Impairment of non-financial assets

    

-

      

6,414

      

-

      

6,414

  

Add: Impairment of associates and joint ventures

    

-

      

62,089

      

-

      

62,089

  

Add: Share-based remuneration

    

992

      

3,130

      

4,706

      

10,053

  

Add: Credit loss expense related to divested joint venture

    

10,476

      

-

      

10,476

      

-

  

Add: Non-recurring expenses

    

321

      

-

      

3,543

      

-

  

Less: Other income

    

(5,974)

      

(248)

      

(11,542)

      

(466)

  

Less: (Profit) loss from discontinued operations

    

2,276

      

816

      

(141,742)

      

816

  

Adjusted EBITDA

    

14,052

      

16,091

      

24,969

      

27,850

  
                                 

Reconciliation of net income (loss) to adjusted net income (loss):

                                

Net Income (loss)

    

28,527

      

(84,209)

      

179,174

      

(15,784)

  

Add: Share-based remuneration

    

992

      

3,130

      

4,706

      

10,053

  

Add: Amortization of acquired intangible assets

    

1,341

      

907

      

5,354

      

4,906

  

Add: Amortization of Nanobank intangible assets (1)

    

1,684

      

1,759

      

2,584

      

7,037

  

Add: Non-recurring expenses

    

10,797

      

-

      

14,019

      

-

  

Income tax adjustment (2)

    

(319)

      

(309)

      

(1,219)

      

(1,366)

  

Less: (Profit) loss from discontinued operations

    

2,276

      

816

      

(141,742)

      

816

  

Adjusted net income (loss)

    

45,298

      

(77,906)

      

62,876

      

5,661

  
                                 

Adjusted net income (loss) per ADS and per share:

                                

Basic adjusted net income (loss) per ADS, US$

    

0.38

      

(0.68)

      

0.54

      

0.05

  

Basic adjusted net income (loss) per share, US$

    

0.20

      

(0.34)

      

0.28

      

0.02

  

Diluted adjusted net income (loss) per ADS, US$

    

0.38

      

(0.68)

      

0.53

      

0.05

  

Diluted adjusted net income (loss) per share, US$

    

0.19

      

(0.34)

      

0.26

      

0.02

  
 

(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.

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/opera-reports-fourth-quarter-and-full-year-2021-results-301484710.html

SOURCE Opera Limited

Investor Relations Contact: Matthew Wolfson, investor-relations@opera.com; For media enquiries, please contact: press-team@opera.com