Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: The search growth during the quarter was 8%, a slowdown from previous growth rates. Is this due to a shift towards e-commerce advertising? How should we think about search for the full year? A: Lin Song, Co-CEO, explained that the industry is shifting towards intent-based targeting and advertisement. While search remains important, identifying user intent allows for more targeted advertising, contributing to overall advertising growth. Despite the slowdown, search still shows nice growth, and they remain optimistic about its future potential.
Q: The ARPU for GX declined sequentially. Is this due to seasonality, or are there other factors at play? A: Lin Song noted that Q1 is typically a low season for GX. Additionally, with AI and high intent targeting, there are more options for ad placement, which may not always be counted as GX revenue. Overall, this benefits Opera as a company.
Q: How has the strong US dollar impacted your financials, particularly in the GX segment? A: Frode Jacobsen, CFO, stated that the strong US dollar has been a headwind, with growth estimated to be 5-6 percentage points higher on a constant currency basis. The impact is muted sequentially, but it remains a headwind for now.
Q: Regarding e-commerce growth, does it offset typical seasonality, and will it become seasonal once it matures? A: Frode Jacobsen confirmed that the strong growth in e-commerce offset typical seasonality. Lin Song added that while seasonality is expected, the e-commerce market is vast, and Opera's share is still small, indicating significant growth potential.
Q: With the overall user base slightly declining, is there a concern about reaching a lower level of MAUs? A: Frode Jacobsen explained that the focus is on engagement and revenue-driving metrics rather than MAU count. The decline is mainly in emerging markets, while efforts are focused on high ARPU potential users, leading to increased revenue.
Q: How do US antitrust actions affecting Big Tech impact Opera's business? A: Lin Song noted that while they can't comment on specific litigation, the shift towards high intent clickstreams benefits Opera. The increased focus on browsers and competition is positive for Opera, providing growth opportunities.
Q: Can you provide more details on the e-commerce opportunity, particularly in terms of vertical and geographic exposure? A: Frode Jacobsen highlighted that e-commerce is growing rapidly, becoming a significant part of advertising revenue. The US opportunity is still largely untapped, and the diversification of the partner base is a positive trend for future growth.
Q: What are the levers needed to develop the e-commerce opportunity in the US? A: Lin Song emphasized the focus on performance-based advertising, which is attractive to advertisers seeking high user intent. The strategy involves working with scalable partners and leveraging global opportunities beyond the US.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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