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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Opera Limited announces third quarter 2019 financial results

November 14, 2019 GMT

-- Revenue of $93.7 million, growth accelerating to 119% year-over-year; exceeding the top end of Opera’s guidance range -- Monthly active users averaging 232 million for smartphone (up 18% YoY) and 68 million for PC (up 16% YoY) -- Opera News users grew 39% to over 169 million monthly active users year-over-year; dedicated news app increased to 41 million monthly active users -- Opera’s microlending business more than tripled revenue versus the second quarter; driven by 5M loans totaling more than $250 million in total loan value -- OList, our recently launched classifieds offering, reached 1 million listings within three months of launch -- Net income of $28.1 million, supported by a non-cash OPay valuation gain -- Adjusted EBITDA of $12.6 million, representing significant margin expansion versus the prior quarter -- Raising 2019 revenue guidance range to $300 to $310 million, representing 77% growth at the midpoint versus 2018

OSLO, Norway, Nov. 14, 2019 (GLOBE NEWSWIRE) -- 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 quarter ended September 30, 2019.

Third quarter 2019 financial highlights Three Months Ended Year-ov Nine Months Ended Year-ov September 30, er- September 30, er- ------------------ -------------------- [US$ thousands, except for margins and per 2018 2019 year % 2018 2019 year % ADS amounts] change change ------------------------------------------- ------- - ------- - ------ - -------- - -------- - ------ Revenue 42,795 93,678 118.9 % 122,069 205,245 68.1 % Net income (loss) 9,717 28,120 189.4 % 23,747 35,923 51.3 % Margin 22.7 % 30.0 % 19.5 % 17.5 % Adjusted EBITDA (1) 16,495 12,647 -23.3 % 48,283 25,305 -47.6 % Margin 38.5 % 13.5 % 39.6 % 12.3 % Adjusted net income (1) 12,494 30,578 144.7 % 33,151 43,188 30.3 % Margin 29.2 % 32.6 % 27.2 % 21.0 % Diluted net income per ADS, US$ 0.09 0.25 176.6 % 0.23 0.32 36.6 % Diluted adjusted net income per ADS, US$(1) 0.11 0.27 146.1 % 0.33 0.38 16.4 %

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

Frode Jacobsen, Opera’s CFO, said, “We are pleased with our third quarter results delivering accelerated revenue growth year-over-year and positive momentum throughout the business. We are successfully leveraging our well-known brand and large user base of more than 350 million monthly active users to drive growth in new opportunities beyond the browser, including news and content, fintech and classifieds. Our new initiatives, strategic investments and the continued growth of our browser, led to an accelerating growth trajectory with 119% year-over-year revenue growth.

“Our third quarter revenue growth was driven by strong results in both advertising and search revenues and more than a tripling of microlending revenue versus the second quarter, driven by rapid scaling in India and continued success in Kenya. Adjusted EBITDA margins expanded meaningfully versus the prior quarter, while we continued to invest aggressively in existing and future growth initiatives.”

Third quarter 2019 user base and product highlights(All comparisons are relative to the third quarter of 2018 unless otherwise stated)

-- Opera News average Monthly Active Users (“MAUs”) grew 39% to 169 million -- The Opera News app, launched in January 2018, reached 41 million average MAUs, up 136% on year-over-year basis -- Total smartphone average MAUs grew 18% to 232 million -- PC average MAUs grew 16% to 68 million -- Provided 4.9 million microloans in the quarter with a total value of $250 million, up from 1.8 million microloans and $70 million value in the second quarter

Lin Song, Opera’s COO, said, “We are pleased with our strong third quarter results across all of our key metrics. We maintain a robust user growth trajectory while utilizing our scale to launch new products and further expand our market opportunity.

“Opera News continues to scale, with MAUs of our news app increasing 136% year-over-year to 41 million in the third quarter. We remain focused on driving user growth and increasing engagement through improved product quality and adding hyperlocal content on the platform. This includes the launch of Opera News Hub, a platform which allows content creators to publish and monetize through Opera News, which has already signed on 500 key opinion leaders. We continue to make progress monetizing our dedicated news app, with revenue up 44% versus the prior quarter.

“Opera Ads, our direct selling platform is evolving and expanding its capabilities. We are reaching an increasing number of both large businesses and small to medium sized enterprises which led to an increase in advertising revenue. Additionally, we launched OLeads, a product aimed at helping the tens of millions of small and medium enterprises in Nigeria grow and market their businesses online.

“Olist, our classified offering in Nigeria is progressing well. Listings have more than doubled to over 1 million from three months ago. We are focusing on growing listings and driving consumer awareness. We believe the potential in this area is very interesting, both in terms of advertising, but also from taking part in the underlying transactions through fee based models.

“On the browser side, our focus on product differentiation has led to continued growth with PC users up 16% year-over-year as we remain focused on privacy and security functionality, and supported by the continued success of Opera GX, our web browser tailored for gamers. Our smartphone user base also continued to grow during the quarter, as we launched offline file sharing in our Opera Mini browser that enables users to share content without using their mobile data or being limited by a slow network connection. The recent launch of our new tracker blocker is shown to speed up mobile browser speed by almost 20%.”

Business outlook

Mr. Frode Jacobsen, Opera’s CFO, said, “In light of the success we achieved during the third quarter of 2019, we are again raising our full-year revenue expectations. We now expect 77% revenue growth at the midpoint of our 2019 guidance. This view includes further growth in our microlending business and continued scaling of our advertising business. We expect our newest initiatives, including OList and additional fintech efforts, to be more of a factor in 2020. Further, we are increasing the lower end of our 2019 Adjusted EBITDA guidance. This reflects further margin expansion in the fourth quarter, while continuing to make aggressive investments in both existing and new initiatives aimed at driving strong multi-year growth.”

As a result, Opera expects fourth quarter and full year 2019 revenue and adjusted EBITDA to be in the following ranges:

Fourth Quarter:

-- Revenue of $95 - $105 million, or 89 - 109% growth versus the fourth quarter of 2018, driven by fintech revenue and to a lesser extent growth in advertising and search revenue. This growth will be offset by an expected significant decline in technology licensing revenue -- Adjusted EBITDA of $15 - $19 million, representing margin expansion versus the third quarter

Full Year:

-- Revenue of $300 - $310 million, or 74 - 80% growth year-over-year, an increase from our previous guidance of $270 - $290 million -- Adjusted EBITDA of $41 - $45 million

Third quarter 2019 consolidated financial results

All comparisons in this section are relative to the third quarter of 2018 unless otherwise stated.

Revenue increased 119% to $93.7 million.

-- Search revenue increased 13% to $21.5 million, primarily due to smartphone and PC browser growth. -- Advertising revenue increased 17% to $18.3 million, due to an increase in both smartphone and PC users and continued monetization improvements. -- Fintech revenue was $39.9 million. This revenue tripled versus the prior quarter due to rapidly scaling India and continued growth in Kenya. -- Retail revenue was $6.0 million versus $2.9 million in the third quarter of 2018. -- Technology licensing and other revenue was $7.9 million. This was higher than expected due to non-recurring incremental low margin revenue relating to investee support.

Operating expenses increased 181% to $87.0 million.

-- Cost of revenue was $15.0 million, compared to $10.1 million in the second quarter of 2019. Within the total, $6.0 million related to retail revenue, $8.8 million related to microlending and $0.2 million related to the browser and news business area. -- Personnel expenses including share-based remuneration were $19.5 million, a 108% increase. This expense consists of cash-based compensation expense of $18.0 million, and $1.5 million of share-based remuneration expense. The increase included approximately $4.0 million of short-term elevated compensation cost relating to investee support, and some staff increases mainly related to Opera News, Opera Ads, microlending and other growth initiatives. -- Marketing and distribution expenses were $20.0 million, an increase of 160% following our previously announced efforts to further invest in accelerating our growth in 2019. -- Credit loss expense was $19.6 million, including $20.0 million related to microlending which was partially offset by a $0.4 million reduction in credit loss provision within the browser and news segment. -- Depreciation and amortization expenses were $4.5 million, a 48% increase. The increase is largely the result of the adoption of IFRS 16 on January 1, 2019. -- Other operating expenses were $8.3 million, a 19% increase.

Operating profit was $6.7 million, representing an operating margin of 7%, compared to $11.8 million and a 27% margin in the year-ago quarter. The decline was largely due to the increased investment in marketing and distribution activities and increased headcount associated with our growth initiatives.

Share of net income of associates and joint ventures amounted to $23.3 million, including a non-cash gain from the increased OPay valuation in connection with the company’s recent funding round.

Income tax expense was $1.7 million, compared to an expense of $1.0 million in the year-ago quarter.

Net income was $28.1 million, compared to $9.7 million in the third quarter of 2018.

Net income per ADS was $0.25 in the quarter, and $0.25 on a diluted basis.

Adjusted net income per ADS was $0.28 in the quarter, and $0.27 on a diluted basis. Each ADS represents two shares in Opera Limited. In the quarter, the average number of shares outstanding was 221.6 million, corresponding to 110.8 million ADSs. Note that the third quarter only includes 1.0 million impact of the 7.5 million new ADSs issued as part of the company’s follow-on offering. An additional 1.1 million new ADSs were issued in October related to the underwriters’ execution of the over-allotment option.

Adjusted EBITDA was $12.6 million, representing a 13% adjusted EBITDA margin, compared to $16.5 million in third quarter 2018. Adjusted EBITDA excludes share-based remuneration.

Adjusted Net Income was $30.6 million in the quarter, representing a 33% adjusted net margin compared to $12.5 million in third quarter 2018. Adjusted net income excludes share-based remuneration and amortization of intangible assets related to acquisitions (all of which relates to the Opera privatization in 2016). Adjusted net income further includes partially offsetting reversals of the tax impacts of the foregoing adjustments.

Other highlights included a follow-on public offering of 8.6 million American Depositary Shares (ADS), raising a total of $82.6 million net of underwriting discounts and commissions. The initial offering of 7.5 ADSs was completed on September 24th and the underwriters’ execution of the over-allotment option of 1.1 million ADSs was completed on October 16th.

Conference call

Opera’s management team will host a conference call from Lagos, Nigeria at 8:00 AM U.S. Eastern Time (2:00 PM Central European Time, 9:00 PM Beijing/Hong Kong time) on Thursday, November 14, 2019.

The dial-in details for the live conference call are:United States: +1 (877) 506-7703China: +86 400 682 8609Hong Kong: +852 5819 4851Norway: +47 239 64173United Kingdom: +44 (0)203 107 0289International: +1 (786) 815-8450Confirmation Code: 7235635

A live webcast of the conference call will be posted at https://investor.opera.com.

About non-IFRS financial measures

To supplement our consolidated financial statements, which are prepared and presented based on IFRS, we use adjusted EBITDA and adjusted net income, both non-IFRS financial measures, to understand and evaluate our core operating performance. These non-IFRS financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS.

We define adjusted EBITDA as net income (loss) excluding income tax expense (benefit), net finance expense (income), share of net loss (income) of associates and joint ventures, restructuring costs, depreciation and amortization, share-based remuneration and expensed costs related to our recent initial public offering, less other income.

We define adjusted net income as net income excluding share-based remuneration, amortization of acquired intangible assets, and expensed costs related to our recent initial public offering.

We believe that adjusted EBITDA and adjusted net income provides 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,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and the Business outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Opera and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its goals and strategies; its expected development and launch, and market acceptance, of its products and services; its expectations regarding demand for and market acceptance of our brand, platforms and services; our expectations regarding growth in our user base and level of engagement; its ability to attract, retain and monetize users; its ability to continue to develop new technologies and/or upgrade our existing technologies and quarterly variations in its operating results caused by factors beyond its control and global macroeconomic conditions and its potential impact in the markets it has businesses. All information provided in this press release is as of the date hereof, and Opera 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 Opera 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 Opera’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

About Opera

Opera is a leading global internet brand with an engaged and growing base of over 350 million average monthly active users. Building on over 20 years of innovation, starting with our browser products, we are increasingly leveraging our brand as well as our massive and highly active user base in order to expand our offerings and our business. Today, we offer users across Europe, Africa and Asia a range of products and services that include our PC and mobile browsers as well as our AI-powered news reader Opera News and our app-based microfinance solutions.

OPERA LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended Nine Months Ended September 30, September 30, -------------------- - --------------------- [US$ thousands, except per share and ADS amounts] 2018 2019 2018 2019 -------- -------- -------- --------- Revenue 42,795 93,678 122,069 205,245 Operating expenses Cost of revenue (3,663 ) (15,023 ) (5,741 ) (32,906 ) Personnel expenses including share-based remuneration (9,378 ) (19,495 ) (29,844 ) (46,180 ) Marketing and distribution expenses (7,709 ) (20,029 ) (22,885 ) (55,799 ) Credit loss expense (162 ) (19,641 ) 167 (27,274 ) Depreciation and amortization (3,051 ) (4,511 ) (9,817 ) (12,934 ) Other expenses (6,992 ) (8,326 ) (21,862 ) (22,236 ) ------- ------- - ------- -------- Total operating expenses (30,954 ) (87,026 ) (89,982 ) (197,329 ) ------- ------- - ------- -------- Operating profit (loss) 11,841 6,652 32,086 7,917 ------- ------- - ------- -------- Share of net income (loss) of associates and joint ventures (1,757 ) 23,295 (3,381 ) 26,252 Net finance income (expense) Finance income 629 611 827 3,970 Finance expense (54 ) (222 ) (131 ) (548 ) Net foreign exchange gain (loss) 28 (539 ) 140 (693 ) ------- ------- - ------- -------- Net finance income (expense) 603 (151 ) 836 2,728 ------- ------- - ------- - -------- Net income (loss) before income taxes 10,687 29,797 29,541 36,897 ------- ------- - ------- -------- Income tax (expense) benefit (970 ) (1,677 ) (5,794 ) (974 ) ------- ------- - ------- -------- Net income (loss) 9,717 28,120 23,747 35,923 ------- ------- - ------- -------- Net income (loss) attributable to: Equity holders of the parent 9,717 28,120 23,747 35,923 Non-controlling interests - - - - ------- ------- - ------- -------- Total net income (loss) attributed 9,717 28,120 23,747 35,923 ------- ------- - ------- -------- Weighted average number of ordinary shares outstanding Basic, millions(1) 209.99 221.55 196.83 220.31 Diluted, millions(2) 216.82 225.89 202.92 224.83 Net income (loss) per ordinary share Basic, US$ 0.05 0.13 0.12 0.16 Diluted, US$ 0.05 0.12 0.12 0.16 Net income (loss) per ADS Basic, US$ 0.09 0.25 0.24 0.33 Diluted, US$ 0.09 0.25 0.23 0.32

(1) Assuming 200 million shares in Opera Limited were outstanding for all periods presented prior to the Initial Public Offering (IPO), less 9.75 million shares that were surrendered by two shareholders upon completion of the IPO. As of September 30, 2019, the total number of shares outstanding for Opera Limited was 235,576,326, equivalent to 117,788,163 ADSs. (2) Includes the net dilutive impact of employee equity awards, all of which are dilutive.

OPERA LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Nine Months Ended Ended September September 30, 30, ----------------- ------------------ [US$ thousands] 2018 2019 2018 2019 ------ ------- ------- ------- Net income (loss) 9,717 28,120 23,747 35,923 Other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods (net of tax) Exchange differences on translation of foreign operations (177 ) (1,982 ) (1,273 ) (2,092 ) Reclassification of exchange differences on loss of control - - (138 ) 7 Share of other comprehensive income (loss) of associates and joint - - - (41 ) ventures ----- ------ ------ ------ Net other comprehensive income (loss) that may be reclassified to (177 ) (1,982 ) (1,411 ) (2,126 ) the Statement of Operations in subsequent periods ----- ------ ------ ------ Total comprehensive income (loss) 9,541 26,139 22,336 33,797 ----- ------ ------ ------ Total comprehensive income (loss) attributable to: Equity holders of the parent 9,541 26,139 22,336 33,797 Non-controlling interests - - - - ----- ------ ------ ------ Total comprehensive income (loss) attributed 9,541 26,139 22,336 33,797 ----- ------ ------ ------

OPERA LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of As of December September 31, 30, -------- -------- [US$ thousands] 2018 2019 -------- -------- ASSETS Non-current assets Furniture, fixtures and equipment 12,162 27,689 Intangible assets 115,444 112,355 Goodwill 421,578 421,578 Investments in associates and joint ventures 35,060 67,560 Non-current financial assets 2,025 2,689 Deferred tax assets 944 - ------- ------- Total non-current assets 587,213 631,870 ------- ------- Current assets Trade receivables 37,468 47,983 Loans to customers 3,092 55,508 Other receivables 4,031 3,931 Prepayments 14,372 26,857 Inventories - 1,932 Other current financial assets 89 - Marketable securities 1,165 45,253 Cash and cash equivalents 177,873 170,697 ------- ------- Total cash, cash equivalents, and marketable securities 179,038 215,950 ------- ------- Total current assets 238,090 352,161 ------- ------- TOTAL ASSETS 825,303 984,031 ------- ------- EQUITY AND LIABILITIES Equity Share capital 22 24 Other paid in capital 738,690 803,896 Retained earnings 36,432 76,044 Foreign currency translation reserve 316 (1,810 ) ------- ------- Equity attributed to equity holders of the parent 775,460 878,154 ------- ------- Non-controlling interests - - ------- ------- Total equity 775,460 878,154 ------- ------- Non-current liabilities Non-current lease liabilities and other loans 2,271 9,750 Deferred tax liabilities 13,358 13,654 Other non-current liabilities 212 130 ------- ------- Total non-current liabilities 15,841 23,534 ------- ------- Current liabilities Trade and other payables 17,957 41,542 Current lease liabilities and other loans 2,490 26,471 Income tax payable 1,920 1,700 Deferred revenue 1,932 1,159 Other current liabilities 9,701 11,471 ------- ------- Total current liabilities 34,002 82,343 ------- ------- Total liabilities 49,843 105,877 ------- ------- TOTAL EQUITY AND LIABILITIES 825,303 984,031 ------- -------

OPERA LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Shar Other Foreign e paid Retained currency Total [US$ thousands] capi in earnings translat equity tal capital ion (1) (1) reserve --- -------- ------- ------- -------- As of December 31, 2017, as previously reported 19 576,512 5,366 1,605 583,503 -- ------- ------ ------ ------- Impact of new accounting standards - - (629 ) - (629 ) -- ------- ------ ------ ------- As of January 1, 2018, restated 19 576,512 4,737 1,605 582,874 -- ------- ------ ------ ------- Net income (loss) - - 23,747 - 23,747 Other comprehensive income (loss) - - - (1,411 ) (1,411 ) -- ------- ------ ------ ------- Total comprehensive income (loss) - - 23,747 (1,411 ) 22,336 -- ------- ------ ------ ------- Contribution of equity, net of transaction costs 3 167,153 - - 167,156 Share-based remuneration expense - - 4,638 - 4,638 -- ------- ------ ------ ------- As of September 30, 2018 22 743,665 33,122 194 777,003 -- ------- ------ ------ -------

Shar Other Foreign e paid Retained currency Total [US$ thousands] capi in earnings translat equity tal capital ion (1) (1) reserve --- -------- ------- ------- -------- As of December 31, 2018 22 738,690 36,432 316 775,460 -- ------- ------ ------ ------- Impact of implementing IFRS 16 Leases - - 64 - 64 -- ------- ------ ------ ------- As of January 1, 2019, restated 22 738,690 36,496 316 775,524 -- ------- ------ ------ ------- Net income (loss) - - 35,923 - 35,923 Other comprehensive income (loss) - - - (2,126 ) (2,126 ) -- ------- ------ ------ ------- Total comprehensive income (loss) - - 35,923 (2,126 ) 33,797 -- ------- ------ ------ ------- Contribution of equity, net of transaction costs 2 70,986 - - 70,988 Acquisition of treasury shares - (5,780 ) - - (5,780 ) Share-based remuneration expense - - 3,624 - 3,624 -- ------- ------ ------ ------- As of September 30, 2019 24 803,896 76,044 (1,810 ) 878,154 -- ------- ------ ------ -------

(1) The amounts of share capital and other paid in capital have been amended by reclassifying amounts between the two equity components.

OPERA LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- [US$ thousands] 2018 2019 2018 2019 -------- -------- -------- -------- Net cash flow from (used in) operating activities 6,820 (17,539 ) 21,713 (24,460 ) Net cash flow from (used in) investing activities (2,426 ) (35,311 ) (3,713 ) (62,794 ) Net cash flow from (used in) financing activities 169,463 90,206 167,117 81,041 ------- ------- ------- ------- Net change in cash and cash equivalents 173,857 37,356 185,118 (6,213 ) ------- ------- ------- ------- Cash and cash equivalents at beginning of period 43,993 134,155 33,207 177,873 Net foreign exchange difference (209 ) (813 ) (682 ) (962 ) ------- ------- ------- ------- Cash and cash equivalents at end of period 217,642 170,697 217,642 170,697 ------- ------- ------- -------

Financial details by business area The tables below specify the contribution by each business area: [US$ thousands] Three months ended September 30, 2018 -------------------------------------------- Browser Fin Business area and tec Retail Other Total News h -------------------------------------- ------- -- ------- ------ -------- Revenue categories Search 19,130 - - - 19,130 Advertising 15,679 - - - 15,679 Origination fees and interest - - - - - Airtime and handsets - - 2,871 - 2,871 Technology licensing and other revenue - - - 5,116 5,116 ------ - ------ ----- ------- Total revenue 34,809 - 2,871 5,116 42,795 ------ - ------ ----- ------- Cost of revenue (672 ) - (2,991 ) - (3,663 ) Marketing and distribution expenses (7,709 ) - - - (7,709 ) Credit loss expense (162 ) - - - (162 ) ------ - ------ ----- ------- Direct expenses (8,543 ) - (2,991 ) - (11,534 ) ------ - ------ ----- ------- Contribution by business area 26,266 - (120 ) 5,116 31,262 ------ - ------ ----- -------

[US$ thousands] Three months ended September 30, 2019 ---------------------------------------------------- Business area Browser Fintech Retail Other Total and News -------------------------------------- -------- -------- ------- ------ -------- Revenue categories Search 21,527 - - - 21,527 Advertising 18,349 - - - 18,349 Origination fees and interest - 39,858 - - 39,858 Airtime and handsets - - 6,006 - 6,006 Technology licensing and other revenue - - - 7,937 7,937 ------- ------- ------ ----- ------- Total revenue 39,876 39,858 6,006 7,937 93,678 ------- ------- ------ ----- ------- Cost of revenue (207 ) (8,797 ) (6,019 ) - (15,023 ) Marketing and distribution expenses (16,831 ) (3,198 ) - - (20,029 ) Credit loss expense 345 (19,986 ) - - (19,641 ) ------- ------- ------ ----- ------- Direct expenses (16,693 ) (31,981 ) (6,019 ) - (54,693 ) ------- ------- ------ ----- ------- Contribution by business area 23,183 7,877 (13 ) 7,937 38,985 ------- ------- ------ ----- -------

[US$ thousands] Nine months ended September 30, 2018 ---------------------------------------------- Browser Fin Business area and News tec Retail Other Total h -------------------------------------- -------- -- ------- ------- -------- Revenue categories Search 59,115 - - - 59,115 Advertising 42,312 - - - 42,312 Origination fees and interest - - - - - Airtime and handsets - - 2,871 - 2,871 Technology licensing and other revenue - - - 17,771 17,771 ------- - ------ ------ ------- Total revenue 101,427 - 2,871 17,771 122,069 ------- - ------ ------ ------- Cost of revenue (2,750 ) - (2,991 ) - (5,741 ) Marketing and distribution expenses (22,885 ) - - - (22,885 ) Credit loss expense 167 - - - 167 ------- - ------ ------ ------- Direct expenses (25,468 ) - (2,991 ) - (28,459 ) ------- - ------ ------ ------- Contribution by business area 75,959 - (120 ) 17,771 93,610 ------- - ------ ------ -------

[US$ thousands] Nine months ended September 30, 2019 ------------------------------------------------------- Business area Browser Fintech Retail Other Total and News -------------------------------------- -------- -------- -------- ------- --------- Revenue categories Search 63,514 - - - 63,514 Advertising 48,649 - - - 48,649 Origination fees and interest - 56,466 - - 56,466 Airtime and handsets - - 20,471 - 20,471 Technology licensing and other revenue - - - 16,145 16,145 ------- ------- ------- ------ -------- Total revenue 112,163 56,466 20,471 16,145 205,245 ------- ------- ------- ------ -------- Cost of revenue (1,420 ) (11,058 ) (20,428 ) - (32,906 ) Marketing and distribution expenses (51,730 ) (4,069 ) - (55,799 ) Credit loss expense (200 ) (27,074 ) - - (27,274 ) ------- ------- ------- ------ -------- Direct expenses (53,350 ) (42,201 ) (20,428 ) - (115,979 ) ------- ------- ------- ------ -------- Contribution by business area 58,813 14,265 43 16,145 89,266 ------- ------- ------- ------ --------

Personnel expenses including share-based remuneration The table below specifies the amounts of personnel expenses including share-based remuneration: Three Months Nine Months Ended [US$ thousands] Ended September 30, September 30, ---------------- ----------------- Personnel expenses including share-based remuneration 2018 2019 2018 2019 ----------------------------------------------------------------- ------ ------- ------- ------- Personnel expenses excluding share-based remuneration 8,617 18,012 26,416 41,726 Share-based remuneration, including related social security costs 761 1,483 3,427 4,454 ----- ------ ------ ------ Total 9,378 19,495 29,844 46,180 ----- ------ ------ ------

Other expenses The table below specifies the nature of other expenses: Three Months Nine Months Ended [US$ thousands] Ended September 30, September 30, --------------- ----------------- Other expenses 2018 2019 2018 2019 ---------------------------------------- ------ ------ ------- ------- Hosting 2,470 1,879 7,649 5,278 Audit, legal and other advisory services 1,865 2,122 6,743 6,093 Software license fees 356 494 1,248 1,789 Rent and other office expense 1,032 1,553 3,368 3,917 Travel 540 1,017 1,570 2,401 Other 729 1,262 1,284 2,757 ----- ----- ------ ------ Total 6,992 8,326 21,862 22,236 ----- ----- ------ ------

Non-IFRS financial measures Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- [US$ thousands, except per share and ADS amounts] 2018 2019 2018 2019 ------- -------- ------- -------- Reconciliation of net income (loss) to adjusted EBITDA Net income (loss) 9,717 28,120 23,747 35,923 Add: Income tax expense (benefit) 970 1,677 5,794 974 Add: Net finance expense (income) (603 ) 151 (836 ) (2,728 ) Add: Share of net loss (income) of associates and joint ventures 1,757 (23,295 ) 3,381 (26,252 ) Add: Depreciation and amortization 3,051 4,511 9,817 12,934 Add: Share-based remuneration 761 1,483 3,427 4,454 Add: Expensed IPO related costs 843 - 2,952 - ------ ------- ------ ------- Adjusted EBITDA 16,495 12,647 48,283 25,305 ------ ------- ------ ------- Reconciliation of net income (loss) to adjusted net income Net Income (loss) 9,717 28,120 23,747 35,923 Add: Share-based remuneration 761 1,483 3,427 4,454 Add: Amortization of acquired intangible assets 1,280 1,280 3,840 3,840 Add: Expensed IPO related costs 843 - 2,952 - Income tax adjustment (1) (106 ) (305 ) (816 ) (1,029 ) ------ ------- ------ ------- Adjusted net income 12,494 30,578 33,151 43,188 ------ ------- ------ ------- Weighted average number of ordinary shares outstanding Basic, millions 209.99 221.55 196.83 220.31 Diluted, millions 216.82 225.89 202.92 224.83 Adjusted net income (loss) per ordinary share Basic, US$ 0.06 0.14 0.17 0.20 Diluted, US$ 0.06 0.14 0.16 0.19 Adjusted net income (loss) per ADS Basic, US$ 0.11 0.28 0.34 0.39 Diluted, US$ 0.11 0.27 0.33 0.38

(1) Reversal of tax benefit related to the social security cost component of share-based remuneration, deferred taxes on the amortization of acquired intangible assets, and expensed IPO-related costs.

Investor Relations Contact: Derrick Nueman investor-relations@opera.com or (408) 596-3055 For media enquiries, please contact: press-team@opera.com