Opera Reports Record Third Quarter 2022 Results

October 27, 2022 at 7:00 AM EDT

Revenue and adjusted EBITDA both exceeded prior guidance ranges, with gaming browser GX key driver of high ARPU users in the Americas and Europe

Q3 revenue grew 28% year-over-year, with adjusted EBITDA margin reaching 25% in the quarter

Company announced a major repurchase of 23.4 million ADS equivalents that closed in October, in addition to 0.9 million ADSs repurchased in the market during Q3

Company raises 2022 guidance, expecting 29% revenue growth at a 19% adjusted EBITDA margin at the midpoint

OSLO, Norway, Oct. 27, 2022 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's major browser developers and a leading internet consumer brand, today announced its unaudited consolidated financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial Highlights

   

Three Months
Ended September 30,

   

Year-
over-year

   

Nine Months
Ended September 30,

   

Year-
over-year

 

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

 

2021

   

2022

   

% Change

   

2021

   

2022

   

% Change

 

Revenue

   

66,620

     

85,347

     

28.1

%

   

178,365

     

234,765

     

31.6

%

                                                 

Net income (loss)

   

23,500

     

9,384

     

(60.1)

%

   

68,426

     

(5,887)

     

n.m.

 

Margin

   

35.3

%

   

11.0

%

           

38.4

%

   

(2.5)

%

       
                                                 

Adjusted EBITDA (1)

   

8,197

     

21,382

     

160.9

%

   

11,759

     

45,300

     

285.2

%

Margin

   

12.3

%

   

25.1

%

           

6.6

%

   

19.3

%

       
                                                 

Adjusted net income (1)

   

29,816

     

11,759

     

(60.6)

%

   

83,567

     

2,033

     

(97.6)

%

Margin

   

44.8

%

   

13.8

%

           

46.9

%

   

0.9

%

       
                                                 

Diluted net income (loss) per ADS, US$

   

0.20

     

0.08

     

(59.3)

%

   

0.59

     

(0.05)

     

n.m.

 
                                                 

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

   

0.26

     

0.10

     

(59.8)

%

   

0.72

     

0.02

     

(97.5)

%

 

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

"Once again, Opera was able to deliver record revenue at a profitability level well ahead of our expectations, by remaining focused on operational excellence despite continuing macro headwinds," said Co-CEO Song Lin.

"While the macroeconomic outlook remains highly uncertain, we are pleased to yet again observe that our strategic choice to focus product innovation around high-ARPU users in the US and in Europe continues to drive strong underlying performance. The substantial revenue growth and profitability expansion we report today exceed our earlier increased guidance and demonstrate the growth potential of our core strategy even in turbulent times. Finally, I would like to add how excited I am to join the Board of Directors and continue to shape the direction of our company," continued Mr. Song.

Third Quarter and Recent Business Highlights

  • Core search and advertising revenue grew 29% year-over-year, driven by the ongoing ARPU trend of our browser and news user base as well as our Opera Ads platform.
  • Opera's average monthly active user base was 321 million MAUs in the quarter, with underlying growth continuing to be strongest in the Americas. As our focus on monetizable users in emerging markets mature, we are starting to see signs of user base stabilization in these regions at significantly higher ARPU levels.
  • In the third quarter, each user on average generated a record $1.06 of revenue on an annualized basis, exceeding the one-dollar milestone following 41% growth versus the third quarter of 2021.
  • The Opera GX gaming browser had over 18 million monthly active users across PC and mobile in the third quarter, with the underlying growth being partially offset by seasonality.
  • Towards the end of the quarter, Opera announced that it had reached an agreement with its pre-IPO shareholder, 360, to acquire its 23.4 million ADS equivalents or 20.6% stake in Opera for $128.6 million, financed by our strong balance sheet. Subsequent to the end of the quarter the transaction closed, and 360 is no longer a shareholder in Opera.
  • During the quarter, the company conducted open market repurchases of 0.9 million ADSs at an average price of $4.84, for a total spend of $4.4 million, leaving $35 million or nearly 70% of our existing buyback authorization remaining. Net of the transaction with 360 and repurchases to date in Q4, the total number of ADS equivalents outstanding is now 89,693,168.
  • At the end of the third quarter our cash and marketable securities were $201 million. Combined with present value receivables of $168 million from the sale of Nanobank and Star X, this adds to a total of $369 million, or $241 million net of the subsequent payment for 360's stake. We also continue to hold our 6.44% equity stake in OPay as an asset held for sale.

Business Outlook

"Both our search and advertising revenues supported our continued strong growth trajectory driven by our focus on high value users and broadened monetization in all regions. Revenue outperformance combined with lower-than-expected marketing expenses resulted in higher-than-expected EBITDA," said CFO Frode Jacobsen. "On top of our strong operating performance, we remain committed to returning capital to shareholders. In total Opera has bought back more than 28% of total ADS equivalents outstanding after our 2018 IPO and 2019 follow-on offering and we remain focused on closing the gap between the current share price and the intrinsic value we see in our company."

For the full year of 2022, Opera expects revenue of $323 million to $326 million, representing 29% year-over-year growth at the midpoint and up from our prior guidance of $313 million to $319 million. We guide adjusted EBITDA to be between $62 million and $64 million, or a 19% margin at the midpoint, and up from our prior guidance of $53 million to $60 million.

For the fourth quarter of 2022, Opera expects revenue of $88 million to $91 million, representing 23% year-over-year growth at the midpoint. Adjusted EBITDA is expected to be between $17 million and $19 million, representing a 20% margin at the midpoint.

Third Quarter 2022 Consolidated Financial Results

All comparisons in this section are relative to the third quarter of 2021 unless otherwise stated.

Revenue increased 28% to $85.3 million.

  • Search revenue increased by 15% to $35.4 million, driven in by the growth of our PC footprint in western markets, particularly in North America.
  • Advertising revenue increased by 41% to $49.1 million, benefiting from the audience extension supported by our Opera Ads platform in addition to the growth in our western PC footprint.
  • Technology licensing and other revenue was $0.8 million.

Operating expenses increased by 3% to $69.3 million.

  • Combined technology and platform fees, content cost and cost of inventory sold was $15.7 million, or 18% of revenue.
  • Personnel expenses, including share-based remuneration, were $18.0 million, a 15% decrease. This expense consists of cash-based compensation expense of $16.1 million, a 7% decrease year-over-year mainly due to strengthening of the US dollar, and share-based remuneration expense of $1.8 million.
  • Marketing and distribution expenses were $26.0 million, a decrease of 20% year-over-year, or a 3% sequential increase versus the prior quarter.
  • Depreciation and amortization expenses were $3.4 million, a 30% decrease year-over-year but stable versus the prior quarter.
  • All other operating expenses were $6.1 million, a 10% increase year-over-year but a 14% decrease versus the prior quarter.

Operating profit was $16.2 million compared to an operating loss of $0.6 million in the third quarter of 2021.

Net finance expense was $2.2 million, of which the present value impact of the extended payment period of our Nanobank sale was the most significant driver.

Income tax expense was $5.2 million in the quarter, elevated due to foreign currency impacts on net deferred tax liabilities.

Net income was $9.4 million. This compared to net income of $23.5 million in the third quarter of 2021. Net income in the third quarter of 2021 was positively impacted by the $28.0 million gain from recognizing our ordinary shares in OPay at fair value.

Net income per ADS was $0.08 in the quarter. Each ADS represents two shares in Opera Limited. In the quarter, the weighted average number of shares outstanding was 227.4 million, corresponding to 113.7 million ADSs.

Adjusted EBITDA was $21.4 million, representing a 25% margin, compared to adjusted EBITDA of $8.2 million in the third quarter of 2021.

Adjusted net income was $11.8 million in the quarter, compared to adjusted net income of $29.8 million in the third quarter of 2021.

Adjusted net income per ADS was $0.10 in the quarter.

We have posted Opera's unaudited financial results by quarter since 2019 at https://investor.opera.com.

Conference Call

Opera's management will host a conference call to discuss the third quarter 2022 financial results on Thursday, October 27th at 8:00 am Eastern Time (EDT). Listeners may access the call by dialing the following numbers:

United States: +1 877-830-2596
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: +1 785-424-1744

Confirmation Code: OPRAQ322

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 on Twitter @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 (loss), 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 equity-accounted investees, fair value loss (gain) from investments, depreciation and amortization, impairment of non-financial assets, impairment of equity-accounted investees, share-based remuneration, credit loss expense related to divested joint venture, non-recurring expenses, less other operating income and (profit) loss from discontinued operations.

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

We believe that adjusted EBITDA and adjusted net income (loss) 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's 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 and the industry in which it operates. Potential risks and uncertainties include, but are not limited to, those relating to: the duration and development of the conflict in Ukraine and the COVID-19 pandemic, as well as resulting changes in consumer behaviors; 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's expectations regarding demand for and market acceptance of its 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 the Company has business. 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, gaming, Web3 and news products are the trusted choice of hundreds of millions of users worldwide. Opera is headquartered in Oslo, Norway and listed on the Nasdaq stock market (OPRA). Download the Opera browser from www.opera.com.

Learn more about Opera at https://investor.opera.com or on Twitter @InvestorOpera.

Unaudited Consolidated Statement of Operations

   

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 

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

 

2021

   

2022

   

2021

   

2022

 

Revenue

   

66,620

     

85,347

     

178,365

     

234,765

 

Other operating income

   

64

     

80

     

218

     

322

 

Operating expenses:

                               

Technology and platform fees

   

(1,191)

     

(1,037)

     

(3,175)

     

(3,321)

 

Content cost

   

(926)

     

(841)

     

(2,512)

     

(2,944)

 

Cost of inventory sold

   

(1,220)

     

(13,868)

     

(2,464)

     

(29,372)

 

Personnel expenses including share-based remuneration

   

(21,226)

     

(17,994)

     

(56,782)

     

(53,493)

 

Marketing and distribution expenses

   

(32,317)

     

(26,005)

     

(90,975)

     

(85,429)

 

Credit loss expense

   

(79)

     

(299)

     

(385)

     

(410)

 

Depreciation and amortization

   

(4,928)

     

(3,438)

     

(15,045)

     

(10,449)

 

Non-recurring expenses

   

-

     

-

     

-

     

(1,208)

 

Other operating expenses

   

(5,417)

     

(5,770)

     

(17,236)

     

(19,703)

 

Total operating expenses

   

(67,303)

     

(69,252)

     

(188,574)

     

(206,329)

 

Operating profit (loss)

   

(618)

     

16,175

     

(9,991)

     

28,758

 

Share of net loss of equity-accounted investees

   

(2,412)

     

-

     

(4,896)

     

(6)

 

Fair value gain on investments

   

27,960

     

-

     

85,460

     

-

 

Net finance income (expense):

                               

Finance income

   

4

     

2,545

     

26

     

4,982

 

Finance expense

   

(779)

     

(4,747)

     

(3,058)

     

(30,035)

 

Net foreign exchange gain (loss)

   

(267)

     

578

     

(1,506)

     

(70)

 

Net finance expense

   

(1,042)

     

(1,624)

     

(4,539)

     

(25,122)

 

Profit before income taxes

   

23,888

     

14,551

     

66,034

     

3,629

 

Income tax (expense) benefit

   

(388)

     

(5,167)

     

2,392

     

(9,516)

 

Net income (loss) attributable to owners of the parent

   

23,500

     

9,384

     

68,426

     

(5,887)

 
                                 

Weighted-average number of ordinary shares outstanding:

                               

Basic, millions (1)

   

230.29

     

227.35

     

230.28

     

229.48

 

Diluted, millions (2)

   

232.26

     

227.94

     

232.52

     

229.48

 

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

                               

Basic earnings per ADS, US$

   

0.20

     

0.08

     

0.59

     

(0.05)

 

Diluted earnings per ADS, US$

   

0.20

     

0.08

     

0.59

     

(0.05)

 

Basic earnings per share, US$

   

0.10

     

0.04

     

0.30

     

(0.03)

 

Diluted earnings per share, US$

   

0.10

     

0.04

     

0.29

     

(0.03)

 
 

(1) As of September 30, 2022, the total number of shares outstanding for Opera Limited was 226,436,540, equivalent to 113,218,270 ADSs.

 

(2) Includes the net dilutive impact of employee equity grants. For the nine-month period ended September 30, 2022, diluted weighted-average number of ordinary shares outstanding excludes the effect of 1,891,275 ADSs that will be issued at the vesting of employee equity grants because these potential shares would have had an anti-dilutive effect on the diluted net loss per ADS and per share.

 
 
 

Unaudited Consolidated Statement of Comprehensive Income

   

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 

[US$ thousands]

 

2021

   

2022

   

2021

   

2022

 

Net income (loss)

   

23,500

     

9,384

     

68,426

     

(5,887)

 

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

   

(1,415)

     

(2,412)

     

(719)

     

(5,253)

 

Reclassification of share of other comprehensive income (loss) of equity-accounted investees

   

-

     

-

     

-

     

708

 

Other comprehensive loss

   

(1,415)

     

(2,412)

     

(719)

     

(4,545)

 

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

   

22,085

     

6,973

     

67,708

     

(10,431)

 
 
 
 

Unaudited Consolidated Statement of Financial Position

   

As of
December 31,

   

As of
September 30,

 

[US$ thousands]

 

2021

   

2022

 

Assets:

               

Property and equipment

   

12,263

     

11,334

 

Intangible assets

   

103,627

     

103,415

 

Goodwill

   

430,378

     

428,833

 

Non-current receivables from sale of investments

   

-

     

136,142

 

Non-current investments and financial assets

   

2,883

     

2,620

 

Deferred tax assets

   

2,323

     

2,068

 

Total non-current assets

   

551,475

     

684,411

 
                 

Trade receivables

   

43,864

     

54,441

 

Current receivables from sale of investments

   

-

     

31,955

 

Other current receivables

   

18,538

     

8,301

 

Prepayments

   

9,192

     

7,218

 

Marketable securities

   

78,135

     

35,273

 

Cash and cash equivalents

   

102,876

     

166,071

 

Total cash, cash equivalents, and marketable securities

   

181,011

     

201,344

 

Assets held for sale

   

288,379

     

84,600

 

Total current assets

   

540,986

     

387,859

 

Total assets

   

1,092,460

     

1,072,270

 
                 

Equity:

               

Share capital

   

24

     

24

 

Other paid in capital

   

764,381

     

750,134

 

Retained earnings

   

249,155

     

248,495

 

Foreign currency translation reserve

   

(520)

     

(5,065)

 

Total equity attributable to owners of the parent

   

1,013,039

     

993,588

 
                 

Liabilities:

               

Non-current lease liabilities and other loans

   

2,081

     

556

 

Deferred tax liabilities

   

6,532

     

8,977

 

Other non-current liabilities

   

23

     

29

 

Total non-current liabilities

   

8,635

     

9,562

 
                 

Trade and other payables

   

38,378

     

41,012

 

Current lease liabilities and other loans

   

11,427

     

3,378

 

Income tax payable

   

763

     

7,076

 

Deferred revenue

   

1,092

     

1,509

 

Other current liabilities

   

19,125

     

16,145

 

Total current liabilities

   

70,786

     

69,120

 

Total liabilities

   

79,421

     

78,683

 

Total equity and liabilities

   

1,092,460

     

1,072,270

 
 
 
 

Unaudited Consolidated Statement of Changes in Equity

For the nine months ended September 30, 2021:

[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, 2020

   

24

     

765,129

     

283,334

     

408

     

1,048,895

 

Net income

   

-

     

-

     

68,426

     

-

     

68,426

 

Other comprehensive loss

   

-

     

-

     

-

     

(719)

     

(719)

 

Total comprehensive income (loss)

   

-

     

-

     

68,426

     

(719)

     

67,707

 

Acquisition of treasury shares

   

-

     

(749)

     

-

     

-

     

(749)

 

Share-based remuneration

   

-

     

-

     

6,114

     

-

     

6,114

 

As of September 30, 2021

   

24

     

764,381

     

357,873

     

(311)

     

1,121,967

 

 

For the nine months ended September 30, 2022:

[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, 2021

   

24

     

764,381

     

249,155

     

(520)

     

1,013,039

 

Net loss

   

-

     

-

     

(5,887)

     

-

     

(5,887)

 

Other comprehensive loss

   

-

     

-

     

-

     

(4,545)

     

(4,545)

 

Total comprehensive loss                

   

-

     

-

     

(5,887)

     

(4,545)

     

(10,432)

 

Acquisition of treasury shares

   

-

     

(14,247)

     

-

     

-

     

(14,247)

 

Share-based remuneration

   

-

     

-

     

5,227

     

-

     

5,227

 

As of September 30, 2022

   

24

     

750,134

     

248,495

     

(5,065)

     

993,588

 
 
 
 

Unaudited Consolidated Statement of Cash Flows

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 

[US$ thousands]

 

2021

   

2022

   

2021

   

2022

 

Cash flows from operating activities:

                               

Profit before income taxes

   

23,888

     

14,551

     

66,034

     

3,629

 

Adjustments to reconcile profit (loss) before income taxes to net cash flow:

                               

Share-based payment expense

   

3,663

     

1,740

     

6,114

     

5,227

 

Depreciation and amortization

   

4,928

     

3,438

     

15,045

     

10,449

 

Share of net loss of equity-accounted investees

   

2,412

     

-

     

4,896

     

6

 

Fair value gain on investments

   

(27,960)

     

-

     

(85,460)

     

-

 

Net finance expense

   

1,042

     

1,624

     

4,539

     

25,122

 

Other adjustments

   

265

     

(739)

     

(1,117)

     

(1,486)

 

Changes in working capital:

                               

Change in trade and other receivables

   

(3,754)

     

(4,961)

     

(7,923)

     

(10,278)

 

Change in prepayments

   

(2,389)

     

416

     

(1,542)

     

967

 

Change in inventories

   

22

     

(888)

     

-

     

(1,586)

 

Change in loans to customers

   

9

     

-

     

14

     

-

 

Change in trade and other payables

   

(6,458)

     

2,260

     

11,137

     

2,634

 

Change in deferred revenue

   

138

     

(359)

     

243

     

417

 

Change in other liabilities

   

892

     

1,048

     

(548)

     

(2,112)

 

Income taxes (paid) received

   

(134)

     

(97)

     

(1,341)

     

133

 

Net cash flow from (used in) operating activities

   

(3,436)

     

18,032

     

10,091

     

33,120

 

Cash flows from investing activities:

                               

Purchase of equipment

   

(100)

     

(165)

     

(984)

     

(2,758)

 

Development expenditure

   

(1,292)

     

(1,988)

     

(3,360)

     

(4,911)

 

Acquisition of subsidiary, net of cash acquired

   

-

     

-

     

(9,008)

     

-

 

Proceeds from sale of shares in former associates

   

-

     

4,000

     

50,000

     

36,879

 

Net sale (purchase) of listed equity instruments

   

(81,313)

     

12,191

     

(84,835)

     

19,235

 

Interest income received

   

-

     

765

     

21

     

799

 

Net cash flow from (used in) investing activities

   

(82,705)

     

14,804

     

(48,166)

     

49,245

 

Cash flows from financing activities:

                               

Acquisition of treasury shares

   

(1)

     

(4,379)

     

(749)

     

(14,247)

 

Interests on loans and borrowings

   

(75)

     

(42)

     

(243)

     

(145)

 

Repayment of loans and borrowings

   

(63)

     

(124)

     

(411)

     

(308)

 

Payment of lease liabilities

   

(1,878)

     

(848)

     

(3,784)

     

(2,884)

 

Net cash flow used in financing activities

   

(2,018)

     

(5,393)

     

(5,188)

     

(17,584)

 

Net change in cash and cash equivalents

   

(88,158)

     

27,442

     

(43,263)

     

64,781

 

Cash and cash equivalents at beginning of period

   

178,481

     

139,400

     

134,168

     

102,876

 

Effect of exchange rate changes on cash and cash equivalents

   

(358)

     

(771)

     

(942)

     

(1,586)

 

Cash and cash equivalents at end of period

   

89,964

     

166,071

     

89,964

     

166,071

 
 
 
 

Financial Details by Business Area

The tables below specify the contribution by each business area.

[US$ thousands]

 

Three Months Ended September 30, 2021

 

Business area

 

Browser and
News

   

Other

   

Total

 

Revenue categories:

                       

Search

   

30,703

     

-

     

30,703

 

Advertising

   

34,863

     

9

     

34,872

 

Technology licensing and other revenue

   

-

     

1,045

     

1,045

 

Total revenue

   

65,566

     

1,054

     

66,620

 

Direct expenses:

                       

Technology and platform fees

   

(986)

     

(205)

     

(1,191)

 

Content cost

   

(926)

     

-

     

(926)

 

Cost of inventory sold

   

(1,220)

     

-

     

(1,220)

 

Marketing and distribution expenses

   

(31,991)

     

(326)

     

(32,317)

 

Credit loss expense

   

(79)

     

-

     

(79)

 

Total direct expenses

   

(35,201)

     

(531)

     

(35,732)

 

Contribution by business area

   

30,365

     

523

     

30,888

 
   
   

[US$ thousands]

 

Three Months Ended September 30, 2022

 

Business area

 

Browser and
News

   

Other

   

Total

 

Revenue categories:

                       

Search

   

35,368

     

-

     

35,368

 

Advertising

   

49,138

     

7

     

49,145

 

Technology licensing and other revenue

   

128

     

707

     

834

 

Total revenue

   

84,634

     

714

     

85,347

 

Direct expenses:

                       

Technology and platform fees

   

(1,037)

     

-

     

(1,037)

 

Content cost

   

(841)

     

-

     

(841)

 

Cost of inventory sold

   

(13,868)

     

-

     

(13,868)

 

Marketing and distribution expenses

   

(25,877)

     

(128)

     

(26,005)

 

Credit loss expense

   

(291)

     

(8)

     

(299)

 

Total direct expenses

   

(41,914)

     

(136)

     

(42,050)

 

Contribution by business area

   

42,719

     

578

     

43,297

 
 
 

[US$ thousands]

 

Nine Months Ended September 30, 2021

 

Business area

 

Browser and
News

   

Other

   

Total

 

Revenue categories:

                       

Search

   

87,210

     

-

     

87,210

 

Advertising

   

87,203

     

41

     

87,244

 

Technology licensing and other revenue

   

-

     

3,909

     

3,909

 

Total revenue

   

174,413

     

3,950

     

178,365

 

Direct expenses:

                       

Technology and platform fees

   

(2,635)

     

(539)

     

(3,175)

 

Content cost

   

(2,490)

     

(22)

     

(2,512)

 

Cost of inventory sold

   

(2,464)

     

-

     

(2,464)

 

Marketing and distribution expenses

   

(90,241)

     

(734)

     

(90,975)

 

Credit loss expense

   

(349)

     

(36)

     

(385)

 

Total direct expenses

   

(98,179)

     

(1,332)

     

(99,511)

 

Contribution by business area

   

76,234

     

2,618

     

78,853

 
 
 

[US$ thousands]

 

Nine Months Ended September 30, 2022

 

Business area

 

Browser and
News

   

Other

   

Total

 

Revenue categories:

                       

Search

   

101,128

     

-

     

101,128

 

Advertising

   

130,659

     

22

     

130,680

 

Technology licensing and other revenue

   

773

     

2,183

     

2,956

 

Total revenue

   

232,561

     

2,204

     

234,765

 

Direct expenses:

                       

Technology and platform fees

   

(3,320)

     

-

     

(3,321)

 

Content cost

   

(2,944)

     

-

     

(2,944)

 

Cost of inventory sold

   

(29,372)

     

-

     

(29,372)

 

Marketing and distribution expenses

   

(85,115)

     

(314)

     

(85,429)

 

Credit loss expense

   

(405)

     

(5)

     

(410)

 

Total direct expenses

   

(121,157)

     

(320)

     

(121,477)

 

Contribution by business area

   

111,404

     

1,884

     

113,288

 
   
   
   

Personnel Expenses Including Share-based Remuneration

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

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 

[US$ thousands]

 

2021

   

2022

   

2021