UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2022
Commission File Number: 001-38588
OPERA LIMITED
(Registrant’s name)
Vitaminveien 4,
0485 Oslo, Norway
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☑ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBITS
|
Exhibit 99.1 |
Press Release – Opera reports record second quarter 2022 results |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Opera Limited | |||
| By: | /s/ Yahui Zhou | ||
| Name: | Yahui Zhou | ||
| Title: | Chairman & Chief Executive Officer | ||
Date: August 30, 2022
Exhibit 99.1
Opera Reports Record Second Quarter 2022 Results
Revenue and adjusted EBITDA both exceeded prior guidance ranges
Q2 revenue grew 29% year-over-year driven by strong product portfolio and growth in high ARPU markets, with adjusted EBITDA margin reaching 21% in the quarter
Company repurchased 1.3 million ADSs during the quarter
Company raises 2022 guidance, expecting 26% revenue growth at an 18% adjusted EBITDA margin at the midpoint
Oslo, Norway, August 30, 2022 – 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 second quarter ended June 30, 2022.
Second Quarter 2022 Financial Highlights
|
Three Months Ended June 30, |
Year-over-year |
Six Months Ended June 30, |
Year-over-year |
|||||||||||||||||||||
|
[US$ thousands, except for margins and per ADS amounts] |
2021 |
2022 |
% change |
2021 |
2022 |
% change | ||||||||||||||||||
|
Revenue |
60,161 | 77,834 | 29.4 | % | 111,744 | 149,417 | 33.7 | % | ||||||||||||||||
|
Net income (loss) |
44,287 | (5,836 | ) | n.m. | 44,926 | (15,271 | ) | n.m. | ||||||||||||||||
|
Margin |
73.6 | % | (7.5 | )% | 40.2 | % | (10.2 | )% | ||||||||||||||||
|
Adjusted EBITDA (1) |
(1,015 | ) | 16,569 | n.m. | 3,561 | 23,918 | n.m. | |||||||||||||||||
|
Margin |
(1.7 | )% | 21.3 | % | 3.2 | % | 16.0 | % | ||||||||||||||||
|
Adjusted net income (loss) (1) |
49,144 | (3,364 | ) | n.m. | 53,751 | (9,726 | ) | n.m. | ||||||||||||||||
|
Margin |
81.7 | % | (4.3 | )% | 48.1 | % | (6.5 | )% | ||||||||||||||||
|
Diluted net income (loss) per ADS, US$ |
0.38 | (0.05 | ) | n.m. | 0.39 | (0.13 | ) | n.m. | ||||||||||||||||
|
Diluted adjusted net income (loss) per ADS, US$ (1) |
0.42 | (0.03 | ) | n.m. | 0.46 | (0.08 | ) | n.m. | ||||||||||||||||
|
(1) |
Please see the separate section "About Non-IFRS Financial Measures" for the definitions of adjusted EBITDA and adjusted net income (loss). |
“Despite a difficult macroeconomic backdrop, we delivered record revenue and continue to grow average revenue per user through a combination of product and high-value market initiatives” said Co-CEO Lin Song.
“We are mindful that the current economic environment remains uncertain, impacted by both macroeconomic pressures and geopolitical tensions. Still, we see a lot of room for continued growth, and we combine prudence with a continued strong focus on our growth strategy," continued Mr. Song.
Second Quarter and Recent Business Highlights
|
● |
Core search and advertising revenue grew 31% year-over-year, driven by the strong ARPU trend of our browser and news user base, as well as leveraging our strong advertiser demand beyond our own inventory through our Opera Ads platform. |
|
● |
Opera’s average monthly active user base was 327 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 North America up 31% and South America up 4.1%, while we continue to focus investments in emerging markets more specifically towards users that we believe will be monetizable. |
|
● |
In the second quarter, each user on average generated a record $0.94 of revenue on an annualized basis, up 46% compared to the second quarter of 2021. |
|
● |
The Opera GX gaming browser had over 17 million monthly active users across PC and mobile in the second quarter, with the underlying growth being partially offset by seasonality. Annualized ARPU of the GX browser is more than three times higher than the corporate average. |
|
● |
At the end of the second quarter our cash and marketable securities were $187 million. Combined with $173 million of receivables from the sale of Nanobank and Star X, this adds to a total of $360 million. We also continue to hold our 6.44% equity stake in OPay as an asset held for sale. |
|
● |
During the quarter, the company repurchased 1.26 million ADSs at an average price of $5.30, for a total spend of $6.7 million, leaving $39 million or nearly 80% of our existing buyback authorization remaining. |
Business Outlook
“Our core business continues to generate revenue at levels greater than anticipated, at the same time we are moderating certain of our expenses, resulting in higher than expected EBITDA margins,” said CFO Frode Jacobsen. “Despite macroeconomic uncertainties, Opera is performing exceptionally well, and we feel confident in increasing our guidance for the year.”
For the full year of 2022, Opera expects revenue of $313 million to $319 million, an increase from $300 million to $310 million, representing 26% year-over-year growth at the midpoint, and adjusted EBITDA to be between $53 million and $60 million, up from $50 million to $60 million or an 18% margin at the midpoint, versus 12% for 2021.
For the third quarter of 2022, Opera expects revenue of $81 million to $83 million, representing 23% year-over-year growth at the midpoint. Adjusted EBITDA is expected to be between $14 million and $17 million, representing a 19% margin at the midpoint.
Other Updates
During the quarter, we collected the first installment of $28.4 million from the sale of our stake in Star X, with the remaining two installments due in 2023 and 2024.
In connection with the sale of our stake in Nanobank, we and the buyer have agreed to make certain modifications to the sales agreement. The purchase price will be paid in 16 quarterly installments with the final installment due in Q2 2026, offset by a 3% added interest on delayed funds relative to the original 8 installments, resulting in total consideration increasing from $127.1 million to $131.7 million. The first installment was $8.5 million, and the remaining quarterly installments will consequently be $8.2 million each. The buyer also agreed to pledge the sold shares to Opera as collateral to the remaining unpaid installments. The modified agreement also specifies how a future sale or merger of all outstanding shares of Nanobank would be treated, in the event it would happen during the payment period. If in such case the valuation ascribed to Nanobank is lower than the valuation adopted in our sale, the remaining installments will be adjusted to reflect the revised valuation. Further, if such future acquirer of Nanobank is a company in which Opera or its parent company is already an investor, and the acquirer purchases Nanobank with its own shares as consideration, the remaining installments due to Opera would also be immediately settled in the form of such shares as opposed to continued cash payments.
Opera has collected the first installment in full, of which $4.5 million was received within the second quarter and the remainder in July. The next installments are due in December and every third month thereafter.
Second Quarter 2022 Consolidated Financial Results
All comparisons in this section are relative to the second quarter of 2021 unless otherwise stated.
Revenue increased 29% to $77.8 million.
|
● |
Search revenue increased by 13% to $33.7 million driven in particular by the growth of our PC footprint in western markets. |
|
● |
Advertising revenue increased by 49% to $43.1 million, benefitting also from monetization growth within Opera News and our audience extension supported by the Opera Ads platform. |
|
● |
Technology licensing and other revenue was $1.0 million. |
Operating expenses decreased by 2% to $66.7 million.
|
● |
Combined technology and platform fees, content cost and cost of inventory sold was $11.8 million, or 15% of revenue. Our audience extension carries inventory cost, but insignificant incremental expenses otherwise. |
|
● |
Personnel expenses, including share-based remuneration, were $19.1 million, a 3% increase. This expense consists of cash-based compensation expense of $17.6 million, a 6% increase year-over-year, and share-based remuneration expense of $1.5 million. |
|
● |
Marketing and distribution expenses were $25.3 million, a decrease of 28% year-over-year, or 26% sequentially versus the prior quarter and reflecting a prudent response to macroeconomic conditions. |
|
● |
Depreciation and amortization expenses were $3.4 million, a 33% decrease year-over-year but relatively stable versus the prior quarter. |
|
● |
All other operating expenses were $7.0 million, a 5% increase. |
Operating profit was $11.2 million compared to an operating loss of $7.9 million in the second quarter of 2021.
Other items in the quarter include a finance expense of $15.3 million associated with value fluctuations on our marketable securities.
Income tax expense was $3.7 million in the quarter, somewhat elevated due to FX impacts on net deferred tax liabilities.
Net loss was $5.8 million. This compared to a net income of $44.3 million in the second quarter of 2021. Net income in the second quarter of 2021 was positively impacted by the recognition of gains from the partial sale of our equity stake in OPay.
Net loss per ADS was $0.03 in the quarter. Each ADS represents two shares in Opera Limited. In the quarter, the weighted average number of shares outstanding was 229.5 million, corresponding to 114.8 million ADSs.
Adjusted EBITDA was $16.6 million, representing a 21% margin, compared to an adjusted EBITDA loss of $1.0 million in the second quarter of 2021. Adjusted EBITDA excludes share-based remuneration and non-recurring expenses, as well as other income and discontinued operations.
Adjusted net loss was $3.4 million in the quarter, compared to adjusted net income of $49.1 million in the second quarter of 2021. Adjusted net income (loss) excludes share-based remuneration, non-recurring expenses, discontinued operations and amortization of intangible assets related to acquisitions.
Adjusted net loss per ADS was $0.03 in the quarter.
We have posted Opera’s unaudited financial historical results by quarter since 2019 at https://investor.opera.com.
Conference Call
Opera’s management will host a conference call to discuss the second quarter 2022 financial results on Tuesday, August 30th at 8:00 am Eastern Time (EDT). Listeners may access the call by dialing the following numbers:
United States: +1 877-830-2597
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: +1 785-424-1877
Confirmation Code: OPRAQ222
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 (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 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 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 exchange (OPRA). Download the Opera browser from www.opera.com.
Learn more about Opera at www.investor.opera.com or on Twitter @InvestorOpera.
Investor Relations Contact:
Matthew Wolfson
investor-relations@opera.com
For media enquiries, please contact: press-team@opera.com
Unaudited Consolidated Statement of Operations
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
|
[US$ thousands, except per ADS and share amounts] |
2021 |
2022 |
2021 |
2022 |
||||||||||||
|
Revenue |
60,161 | 77,834 | 111,744 | 149,417 | ||||||||||||
|
Other operating income |
96 | 70 | 154 | 242 | ||||||||||||
|
Operating expenses: |
||||||||||||||||
|
Technology and platform fees |
(1,112 | ) | (1,064 | ) | (1,984 | ) | (2,284 | ) | ||||||||
|
Content cost |
(741 | ) | (1,059 | ) | (1,586 | ) | (2,103 | ) | ||||||||
|
Cost of inventory sold |
(798 | ) | (9,719 | ) | (1,244 | ) | (15,504 | ) | ||||||||
|
Personnel expenses including share-based remuneration |
(18,461 | ) | (19,071 | ) | (35,556 | ) | (35,499 | ) | ||||||||
|
Marketing and distribution expenses |
(35,301 | ) | (25,285 | ) | (58,658 | ) | (59,424 | ) | ||||||||
|
Credit loss expense |
(320 | ) | (67 | ) | (306 | ) | (111 | ) | ||||||||
|
Depreciation and amortization |
(5,080 | ) | (3,421 | ) | (10,117 | ) | (7,011 | ) | ||||||||
|
Non-recurring expenses |
- | (500 | ) | - | (1,208 | ) | ||||||||||
|
Other operating expenses |
(6,359 | ) | (6,477 | ) | (11,819 | ) | (13,933 | ) | ||||||||
|
Total operating expenses |
(68,173 | ) | (66,664 | ) | (121,271 | ) | (137,077 | ) | ||||||||
|
Operating profit (loss) |
(7,916 | ) | 11,240 | (9,374 | ) | 12,582 | ||||||||||
|
Share of net loss of equity-accounted investees |
(2,339 | ) | - | (2,484 | ) | (6 | ) | |||||||||
|
Fair value gain on investments |
57,500 | - | 57,500 | - | ||||||||||||
|
Net finance income (expense): |
||||||||||||||||
|
Finance income |
16 | 2,282 | 1,733 | 2,437 | ||||||||||||
|
Finance expense |
(3,548 | ) | (15,341 | ) | (3,991 | ) | (25,288 | ) | ||||||||
|
Net foreign exchange loss |
(1,378 | ) | (276 | ) | (1,239 | ) | (648 | ) | ||||||||
|
Net finance expense |
(4,911 | ) | (13,334 | ) | (3,498 | ) | (23,498 | ) | ||||||||
|
Profit (loss) before income taxes |
42,334 | (2,094 | ) | 42,145 | (10,922 | ) | ||||||||||
|
Income tax (expense) benefit |
1,953 | (3,742 | ) | 2,781 | (4,350 | ) | ||||||||||
|
Net income (loss) attributable to owners of the parent |
44,287 | (5,836 | ) | 44,926 | (15,271 | ) | ||||||||||
|
Weighted-average number of ordinary shares outstanding: |
||||||||||||||||
|
Basic, millions (1) |
230.29 | 229.50 | 230.28 | 230.56 | ||||||||||||
|
Diluted, millions (2) |
231.51 | 229.50 | 231.54 | 230.56 | ||||||||||||
|
Earnings per ADS and per share for net income (loss): |
||||||||||||||||
|
Basic earnings per ADS, US$ |
0.38 | (0.05 | ) | 0.39 | (0.13 | ) | ||||||||||
|
Diluted earnings per ADS, US$ |
0.38 | (0.05 | ) | 0.39 | (0.13 | ) | ||||||||||
|
Basic earnings per share, US$ |
0.19 | (0.03 | ) | 0.20 | (0.07 | ) | ||||||||||
|
Diluted earnings per share, US$ |
0.19 | (0.03 | ) | 0.19 | (0.07 | ) | ||||||||||
|
(1) |
As of June 30, 2022, the total number of shares outstanding for Opera Limited was 228,240,012, equivalent to 114,120,006 ADSs. |
|
(2) |
Includes the net dilutive impact of employee equity grants. For the three- and six-months periods ended June 30, 2022, diluted weighted-average number of ordinary shares outstanding exclude the effects of 1,916,775 ADSs that will be issued at the vesting of employee equity grants because these potential shares would have had anti-dilutive effects on the diluted net loss per ADS and per share. |
Unaudited Consolidated Statement of Comprehensive Income
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
|
[US$ thousands] |
2021 |
2022 |
2021 |
2022 |
||||||||||||
|
Net income (loss) |
44,287 | (5,836 | ) | 44,926 | (15,271 | ) | ||||||||||
|
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 |
2,013 | (2,073 | ) | 697 | (2,841 | ) | ||||||||||
|
Reclassification of share of other comprehensive income (loss) of equity-accounted investees |
- | - | - | 708 | ||||||||||||
|
Other comprehensive income (loss) |
2,013 | (2,073 | ) | 697 | (2,133 | ) | ||||||||||
|
Total comprehensive income (loss) attributable to owners of the parent |
46,300 | (7,908 | ) | 45,623 | (17,403 | ) | ||||||||||
Unaudited Consolidated Statement of Financial Position
|
As of December 31, |
As of June 30, |
|||||||
|
[US$ thousands] |
2021 |
2022 |
||||||
|
Assets: |
||||||||
|
Property and equipment |
12,263 | 11,344 | ||||||
|
Intangible assets |
103,627 | 103,170 | ||||||
|
Goodwill |
430,378 | 429,492 | ||||||
|
Non-current receivables from sale of investments |
- | 99,707 | ||||||
|
Non-current investments and financial assets |
2,883 | 2,750 | ||||||
|
Deferred tax assets |
2,323 | 2,206 | ||||||
|
Total non-current assets |
551,474 | 648,669 | ||||||
|
Trade receivables |
43,864 | 48,790 | ||||||
|
Current receivables from sale of investments |
- | 73,018 | ||||||
|
Other current receivables |
18,538 | 4,166 | ||||||
|
Prepayments |
9,192 | 7,635 | ||||||
|
Marketable securities |
78,135 | 47,472 | ||||||
|
Cash and cash equivalents |
102,876 | 139,400 | ||||||
|
Total cash, cash equivalents, and marketable securities |
181,011 | 186,872 | ||||||
|
Assets held for sale |
288,379 | 84,600 | ||||||
|
Total current assets |
540,986 | 405,081 | ||||||
|
Total assets |
1,092,460 | 1,053,750 | ||||||
|
Equity: |
||||||||
|
Share capital |
24 | 24 | ||||||
|
Other paid in capital |
764,381 | 754,513 | ||||||
|
Retained earnings |
249,155 | 237,370 | ||||||
|
Foreign currency translation reserve |
(520 | ) | (2,653 | ) | ||||
|
Total equity attributable to owners of the parent |
1,013,039 | 989,254 | ||||||
|
Liabilities: |
||||||||
|
Non-current lease liabilities and other loans |
2,081 | 811 | ||||||
|
Deferred tax liabilities |
6,532 | 7,876 | ||||||
|
Other non-current liabilities |
23 | 20 | ||||||
|
Total non-current liabilities |
8,635 | 8,708 | ||||||
|
Trade and other payables |
38,378 | 38,752 | ||||||
|
Current lease liabilities and other loans |
11,427 | 2,549 | ||||||
|
Income tax payable |
763 | 3,583 | ||||||
|
Deferred revenue |
1,092 | 1,868 | ||||||
|
Other current liabilities |
19,125 | 9,036 | ||||||
|
Total current liabilities |
70,786 | 55,788 | ||||||
|
Total liabilities |
79,421 | 64,496 | ||||||
|
Total equity and liabilities |
1,092,460 | 1,053,750 | ||||||
Unaudited Consolidated Statement of Changes in Equity
For the six months ended June 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 |
- | - | 44,926 | - | 44,926 | |||||||||||||||
|
Other comprehensive income |
- | - | - | 697 | 697 | |||||||||||||||
|
Total comprehensive income |
- | - | 44,926 | 697 | 45,623 | |||||||||||||||
|
Acquisition of treasury shares |
- | (749 | ) | - | - | (749 | ) | |||||||||||||
|
Share-based remuneration |
- | - | 2,450 | - | 2,450 | |||||||||||||||
|
As of June 30, 2021 |
24 | 764,381 | 330,710 | 1,105 | 1,096,217 | |||||||||||||||
For the six months ended June 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 |
- | - | (15,271 | ) | - | (15,271 | ) | |||||||||||||
|
Other comprehensive loss |
- | - | - | (2,133 | ) | (2,133 | ) | |||||||||||||
|
Total comprehensive loss |
- | - | (15,271 | ) | (2,133 | ) | (17,404 | ) | ||||||||||||
|
Acquisition of treasury shares |
- | (9,868 | ) | - | - | (9,868 | ) | |||||||||||||
|
Share-based remuneration |
- | - | 3,487 | - | 3,487 | |||||||||||||||
|
As of June 30, 2022 |
24 | 754,513 | 237,371 | (2,653 | ) | 989,254 | ||||||||||||||
Unaudited Consolidated Statement of Cash Flows
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
|
[US$ thousands] |
2021 |
2022 |
2021 |
2022 |
||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||
|
Profit (loss) before income taxes |
42,334 | (2,094 | ) | 42,145 | (10,922 | ) | ||||||||||
|
Adjustments to reconcile profit (loss) before income taxes to net cash flow: |
||||||||||||||||
|
Share-based payment expense |
1,717 | 1,520 | 2,450 | 3,487 | ||||||||||||
|
Depreciation and amortization |
5,080 | 3,421 | 10,117 | 7,011 | ||||||||||||
|
Share of net loss of equity-accounted investees |
2,628 | - | 2,484 | 6 | ||||||||||||
|
Fair value gain on investments |
(57,500 | ) | - | (57,500 | ) | - | ||||||||||
|
Net finance expense |
4,773 | 13,334 | 3,498 | 23,498 | ||||||||||||
|
Other adjustments |
(1,630 | ) | (265 | ) | (1,382 | ) | (747 | ) | ||||||||
|
Changes in working capital: |
||||||||||||||||
|
Change in trade and other receivables |
(4,384 | ) | (6,029 | ) | (4,170 | ) | (5,318 | ) | ||||||||
|
Change in prepayments |
(2,315 | ) | 41 | 847 | 550 | |||||||||||
|
Change in inventories |
(24 | ) | (113 | ) | (21 | ) | (699 | ) | ||||||||
|
Change in loans to customers |
17 | - | 5 | 2 | ||||||||||||
|
Change in trade and other payables |
10,779 | (9,164 | ) | 17,595 | 374 | |||||||||||
|
Change in deferred revenue |
(63 | ) | (727 | ) | 105 | 776 | ||||||||||
|
Change in other liabilities |
5,285 | 2,176 | (1,440 | ) | (3,160 | ) | ||||||||||
|
Income taxes (paid) received |
(448 | ) | (477 | ) | (1,207 | ) | 230 | |||||||||
|
Net cash flow from operating activities |
6,252 | 1,624 | 13,527 | 15,088 | ||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||
|
Purchase of equipment |
139 | (2,477 | ) | (884 | ) | (2,593 | ) | |||||||||
|
Development expenditure |
(1,216 | ) | (2,081 | ) | (2,068 | ) | (2,923 | ) | ||||||||
|
Acquisition of subsidiary, net of cash acquired |
- | - | (9,008 | ) | - | |||||||||||
|
Proceeds from sale of shares in associates |
50,000 | 32,879 | 50,000 | 32,879 | ||||||||||||
|
Net sale (purchase) of listed equity instruments |
(17,439 | ) | 247 | (3,522 | ) | 7,044 | ||||||||||
|
Interest income received |
16 | 31 | 21 | 33 | ||||||||||||
|
Net cash flow from investing activities |
31,500 | 28,600 | 34,539 | 34,441 | ||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||
|
Acquisition of treasury shares |
- | (6,823 | ) | (748 | ) | (9,868 | ) | |||||||||
|
Proceeds from loans and borrowings |
(1,147 | ) | - | - | - | |||||||||||
|
Interests on loans and borrowings |
(89 | ) | (34 | ) | (168 | ) | (103 | ) | ||||||||
|
Repayment of loans and borrowings |
(348 | ) | (96 | ) | (348 | ) | (184 | ) | ||||||||
|
Payment of lease liabilities |
(846 | ) | (1,040 | ) | (1,906 | ) | (2,036 | ) | ||||||||
|
Net cash flow used in financing activities |
(2,431 | ) | (7,992 | ) | (3,170 | ) | (12,192 | ) | ||||||||
|
Net change in cash and cash equivalents |
35,322 | 22,231 | 44,896 | 37,338 | ||||||||||||
|
Cash and cash equivalents at beginning of period |
143,297 | 117,786 | 134,168 | 102,876 | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (138 | ) | (616 | ) | (584 | ) | (815 | ) | ||||||||
|
Cash and cash equivalents at end of period |
178,481 | 139,400 | 178,481 | 139,400 | ||||||||||||
Financial Details by Business Area
The tables below specify the contribution by each business area.
|
[US$ thousands] |
Three Months Ended June 30, 2021 |
|||||||||||
|
Business area |
Browser and News |
Other |
Total |
|||||||||
|
Revenue categories: |
||||||||||||
|
Search |
29,782 | - | 29,782 | |||||||||
|
Advertising |
28,935 | 7 | 28,942 | |||||||||
|
Technology licensing and other revenue |
- | 1,436 | 1,436 | |||||||||
|
Total revenue |
58,717 | 1,443 | 60,161 | |||||||||
|
Direct expenses: |
||||||||||||
|
Technology and platform fees |
(930 | ) | (182 | ) | (1,112 | ) | ||||||
|
Content cost |
(730 | ) | (11 | ) | (741 | ) | ||||||
|
Cost of inventory sold |
(798 | ) | - | (798 | ) | |||||||
|
Marketing and distribution expenses |
(35,085 | ) | (216 | ) | (35,301 | ) | ||||||
|
Credit loss expense |
(316 | ) | (4 | ) | (320 | ) | ||||||
|
Total direct expenses |
(37,859 | ) | (413 | ) | (38,273 | ) | ||||||
|
Contribution by business area |
20,858 | 1,030 | 21,888 | |||||||||
|
[US$ thousands] |
Three Months Ended June 30, 2022 |
|||||||||||
|
Business area |
Browser and News |
Other |
Total |
|||||||||
|
Revenue categories: |
||||||||||||
|
Search |
33,734 | - | 33,734 | |||||||||
|
Advertising |
43,077 | 7 | 43,085 | |||||||||
|
Technology licensing and other revenue |
298 | 718 | 1,016 | |||||||||
|
Total revenue |
77,109 | 725 | 77,834 | |||||||||
|
Direct expenses: |
||||||||||||
|
Technology and platform fees |
(1,064 | ) | - | (1,064 | ) | |||||||
|
Content cost |
(1,059 | ) | - | (1,059 | ) | |||||||
|
Cost of inventory sold |
(9,719 | ) | - | (9,719 | ) | |||||||
|
Marketing and distribution expenses |
(25,196 | ) | (89 | ) | (25,285 | ) | ||||||
|
Credit loss expense |
(67 | ) | (1 | ) | (67 | ) | ||||||
|
Total direct expenses |
(37,105 | ) | (90 | ) | (37,195 | ) | ||||||
|
Contribution by business area |
40,003 | 636 | 40,639 | |||||||||
|
[US$ thousands] |
Six Months Ended June 30, 2021 |
|||||||||||
|
Business area |
Browser and News |
Other |
Total |
|||||||||
|
Revenue categories: |
||||||||||||
|
Search |
56,507 | - | 56,507 | |||||||||
|
Advertising |
52,340 | 32 | 52,372 | |||||||||
|
Technology licensing and other revenue |
- | 2,864 | 2,864 | |||||||||
|
Total revenue |
108,847 | 2,897 | 111,744 | |||||||||
|
Direct expenses: |
||||||||||||
|
Technology and platform fees |
(1,649 | ) | (335 | ) | (1,984 | ) | ||||||
|
Content cost |
(1,564 | ) | (22 | ) | (1,586 | ) | ||||||
|
Cost of inventory sold |
(1,244 | ) | - | (1,244 | ) | |||||||
|
Marketing and distribution expenses |
(58,250 | ) | (408 | ) | (58,658 | ) | ||||||
|
Credit loss expense |
(270 | ) | (36 | ) | (306 | ) | ||||||
|
Total direct expenses |
(62,978 | ) | (801 | ) | (63,779 | ) | ||||||
|
Contribution by business area |
45,869 | 2,096 | 47,965 | |||||||||
|
[US$ thousands] |
Six Months Ended June 30, 2022 |
|||||||||||
|
Business area |
Browser and News |
Other |
Total |
|||||||||
|
Revenue categories: |
||||||||||||
|
Search |
65,760 | - | 65,760 | |||||||||
|
Advertising |
81,521 | 14 | 81,535 | |||||||||
|
Technology licensing and other revenue |
646 | 1,476 | 2,122 | |||||||||
|
Total revenue |
147,927 | 1,490 | 149,417 | |||||||||
|
Direct expenses: |
||||||||||||
|
Technology and platform fees |
(2,284 | ) | - | (2,284 | ) | |||||||
|
Content cost |
(2,103 | ) | - | (2,103 | ) | |||||||
|
Cost of inventory sold |
(15,504 | ) | - | (15,504 | ) | |||||||
|
Marketing and distribution expenses |
(59,238 | ) | (187 | ) | (59,424 | ) | ||||||
|
Credit loss expense |
(114 | ) | 3 | (111 | ) | |||||||
|
Total direct expenses |
(79,242 | ) | (184 | ) | (79,426 | ) | ||||||
|
Contribution by business area |
68,685 | 1,306 | 69,991 | |||||||||
Personnel Expenses Including Share-based Remuneration
The table below specifies the amounts of personnel expenses including share-based remuneration.
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
|
[US$ thousands] |
2021 |
2022 |
2021 |
2022 |
||||||||||||
|
Personnel expenses, excluding share-based remuneration |
16,544 | 17,593 | 32,585 | 32,140 | ||||||||||||
|
Share-based remuneration, including related social security costs |
1,917 | 1,477 | 2,971 | 3,359 | ||||||||||||
|
Total personnel expenses including share-based remuneration |
18,461 | 19,071 | 35,556 | 35,499 | ||||||||||||
Other Operating Expenses
The table below specifies the nature of other operating expenses.
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
|
[US$ thousands] |
2021 |
2022 |
2021 |
2022 |
||||||||||||
|
Hosting |
1,910 | 2,288 | 3,753 | 4,526 | ||||||||||||
|
Audit, legal and other advisory services |
2,447 | 1,489 | 3,943 | 4,491 | ||||||||||||
|
Software license fees |
475 | 494 | 889 | 964 | ||||||||||||
|
Rent and other office expense |
758 | 1,008 | 1,624 | 1,891 | ||||||||||||
|
Travel |
109 | 422 | 188 | 572 | ||||||||||||
|
Other |
660 | 776 | 1,423 | 1,490 | ||||||||||||
|
Total other operating expenses |
6,359 | 6,477 | 11,819 | 13,933 | ||||||||||||
Non-IFRS Financial Measures
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
|
[US$ thousands, except per ADS and share amounts] |
2021 |
2022 |
2021 |
2022 |
||||||||||||
|
Reconciliation of net income (loss) to adjusted EBITDA: |
||||||||||||||||
|
Net income (loss) |
44,287 | (5,836 | ) | 44,926 | (15,271 | ) | ||||||||||
| Add (deduct): | ||||||||||||||||
|
Income tax expense (benefit) |
(1,953 | ) | 3,742 | (2,781 | ) | 4,350 | ||||||||||
|
Net finance expense |
4,911 | 13,334 | 3,498 | 23,498 | ||||||||||||
|
Share of net loss of equity-accounted investees |
2,339 | - | 2,484 | 6 | ||||||||||||
|
Depreciation and amortization |
5,080 | 3,421 | 10,117 | 7,011 | ||||||||||||
|
Share-based remuneration |
1,917 | 1,477 | 2,971 | 3,359 | ||||||||||||
|
Non-recurring expenses |
- | 500 | - | 1,208 | ||||||||||||
|
Fair value gain on investments |
(57,500 | ) | - | (57,500 | ) | - | ||||||||||
|
Other operating income |
(96 | ) | (70 | ) | (154 | ) | (242 | ) | ||||||||
|
Adjusted EBITDA |
(1,015 | ) | 16,569 | 3,561 | 23,918 | |||||||||||
|
Reconciliation of net income (loss) to adjusted net income (loss): |
||||||||||||||||
|
Net Income (loss) |
44,287 | (5,836 | ) | 44,926 | (15,271 | ) | ||||||||||
| Add (deduct): | ||||||||||||||||
|
Share-based remuneration |
1,917 | 1,477 | 2,971 | 3,359 | ||||||||||||
|
Amortization of acquired intangible assets |
1,571 | 645 | 3,142 | 1,290 | ||||||||||||
|
Amortization of Nanobank intangible assets (1) |
1,759 | - | 3,518 | - | ||||||||||||
|
Non-recurring expenses |
- | 500 | - | 1,208 | ||||||||||||
|
Income tax adjustment (2) |
(389 | ) | (151 | ) | (805 | ) | (312 | ) | ||||||||
|
Adjusted net income (loss) |
49,144 | (3,364 | ) | 53,751 | (9,726 | ) | ||||||||||
|
Adjusted net income (loss) per ADS and per share: |
||||||||||||||||
|
Basic adjusted net income (loss) per ADS, US$ |
0.43 | (0.03 | ) | 0.47 | (0.08 | ) | ||||||||||
|
Diluted adjusted net income (loss) per ADS, US$ |
0.42 | (0.03 | ) | 0.46 | (0.08 | ) | ||||||||||
|
Basic adjusted net income (loss) per share, US$ |
0.21 | (0.01 | ) | 0.23 | (0.04 | ) | ||||||||||
|
Diluted adjusted net income (loss) per share, US$ |
0.21 | (0.01 | ) | 0.23 | (0.04 | ) | ||||||||||
|
(1) |
The amortization of Nanobank intangible assets was included in the line "Share of net income (loss) of equity-accounted investees". |
|
(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. |