Slide 1: Opera Software: First quarter 2012
Opera Software: First quarter 2012
Slide 2: 1Q 2012 Financial highlights
1Q 2012 Financial highlights Financial metric 1Q12 1Q11 Status report (MUSD) (MUSD) Revenue Total revenue 46.9 36.7 Profitability Adj. EBITDA*/** 15.2 9.7 EBIT** 12.4 7.7 • Record revenue and profitability • Strong revenue growth from Mobile Consumers, Mobile Publishers & Advertisers, Desktop and De
Slide 3: Highlights
Highlights Highlights Operators • Strong growth in operator Opera Mini users: 31.1 million in March 2012, vs. 13.6m in March 2011, up 129% • Strong operator platform for continued growth • Growth from existing customers like Telkomsel, AT&T, MTN, Telenor and MTS • New operator agreements announced i
Slide 4: Financial review
Financial review
Slide 5: A note from our lawyers
A note from our lawyers DISCLAIMER: This presentation contains, and is i.a. based on, forward-looking statements regarding Opera Software ASA and its subsidiaries. These statements are based on various assumptions made by Opera Software ASA, which are beyond its control and which involve known and u
Slide 6: Financial Highlights
Financial Highlights 3Q 2011 Financial highlights Financial metric 1Q12 1Q11 Status report (MUSD) (MUSD) Revenue Total revenue 46.9 36.7 Profitability Adj. EBITDA*/** 15.2 9.7 EBIT** 12.4 7.7 Cash generation Operating Cash 12.0 8.8 Flow Free Cash Flow*** 10.2 6.5 *Non-IFRS EBITDA excludes stock opti
Slide 7: 1Q12 Actuals versus Guidance
1Q12 Actuals versus Guidance 1Q 2012 Actuals 1Q 2012 Midpoint Guidance (February 16)* Revenue MUSD 46.9 MUSD 46 EBIT** MUSD 12.4 MUSD 11 *Provided at 4Q11 Presentation ** Excluding one-off extraordinary costs of MUSD 0.7 in 1Q12
Slide 8: 1Q12 Financial review
1Q12 Financial review MUSD 1Q2012* 1Q2011 Q on Q Revenue 46.9 36.7 28% Cost of Goods sold- 3.1 0.5 476% Payroll and related expenses - 20.0 18.8 6% Stock option costs - 0.9 0.8 5% Depreciation and amortization - 2.0 1.2 66% Other operating expenses - 8.6 7.6 13% Total expenses = 34.6 29.0 19% EBIT 1
Slide 9: Financial highlights: 1Q11-1Q12
Financial highlights: 1Q11-1Q12 Operating revenues (MUSD) Adjusted EBITDA* (MUSD) Revenue Adjusted EBITDA* 50 16 45 15 14 40 13 12 35 11 30 10 9 25 8 20 7 6 15 5 4 10 3 5 2 1 0 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 * Non-IFRS EBITDA excludes stock option costs and extraordinary one-tim
Slide 10: Revenue growth drivers
Revenue growth drivers Operators: Users and Usage Mobile Consumers: Users and Usage Desktop: Users and Usage Device OEMs: ConnectedTVs Mobile Publishers & Advertisers: Mobile Advertising Spend from Premium Brands
Slide 11: Overall Mobile Monetization Strategy
Overall Mobile Monetization Strategy Non-Opera Opera Properties Properties Search, opcos and developers Opera Payment Ad mediation, serving, campaign Exchange management + Analytics
Slide 12: Revenue: Customer type (1Q12)
Revenue: Customer type (1Q12) Overall revenue as expected Customer Type Operator Lower than expected due to lower NRE revenue Mobile Consumers (Opera owned and As expected vs. guidance operated properties) Mobile OEM As expected vs. guidance Desktop Consumers Better than expected on strong local aff
Slide 13: Revenue: Operators (1Q12)
Revenue: Operators (1Q12) Operator Revenue lower than expected on lower NRE revenue 129% Operator Opera Mini user growth March 2012 vs. March 2011 User growth driven by MTN, MTS, Telenor, Telkomsel, and Vodafone in particular Opera Mini licence revenue up 23% to MUSD 9.1, with ARPU as expected Overa
Slide 14: Revenue: Mobile Consumers (1Q12)
Revenue: Mobile Consumers (Opera owned and operated properties - 1Q12) Mobile Consumer revenue as expected Revenue growth driven by mobile search vs. 1Q11 Revenue growth: 253% versus 1Q11 MUSD Mobile Consumers (Opera owned and operated properties)* 3,5 3 2,5 2 1,5 3 2 1 2 1 0,5 1 0 1Q11 2Q11 3Q11 4Q
Slide 15: Revenue: Mobile OEMs (1Q12)
Revenue: Mobile OEMs (1Q12) Mobile OEM revenue in line with expectations License revenue: 40+% of revenue Overall revenue growth: down 44% versus 1Q11 MUSD Mobile OEM revenue* NRE + M&S Licenses 5 4 1 3 1 2 1 1 3 1 1 2 1 1 1 0 * Unaudited 1Q11 2Q11 3Q11 4Q11 1Q12
Slide 16: Revenue: Desktop Consumers (1Q12)
Revenue: Desktop Consumers (1Q12) Desktop revenue better than expected on strong local affiliate and search revenue Desktop user growth 11% versus end of 1Q11 Strong ARPU due to strong local affiliate and search revenue Overall revenue growth: 33% versus 1Q11 Monthly Desktop users* Desktop revenue*
Slide 17: Revenue: Device OEMs (1Q12)
Revenue: Device OEMs (1Q12) Device OEM revenue as expected on strong license revenue Revenue driven by Connected TV customers License revenue: 75%+ of revenue Overall revenue growth: 34% versus 1Q11, with strong growth in license revenue MUSD Device OEM revenue* NRE + M&S Licenses 10 9 8 2 7 2 6 1 1
Slide 18: Revenue: Mobile Publishers & Advertisers (1Q12)
Revenue: Mobile Publishers & Advertisers (Non Opera owned and operated properties - 1Q12) Mobile Publisher & Advertiser revenue better than expected versus guidance Revenue growth driven by premium publishers and advertisers AdMarvel managed 86B ad impressions in 1Q12, up 83% vs. 1Q11 Revenue growth
Slide 19: OPEX development
OPEX development OPEX (NOK Million) One time extraordinary cost Cost line 1Q12 vs. Comments Cost of goods sold 1Q11 Other OPEX Payroll 6% •Higher compensation expense per Depreciation employee and overall headcount growth. Stock Options Payroll Stock options 5% higher average strike price on options
Slide 20: Cash flow 1Q12 (MUSD)
Cash flow 1Q12 (MUSD) 15 10 5 0 -5 -10 -15 -20 -25
Slide 21: Update from the Mobile Ad Network Acquisitions
Update from the Mobile Ad Network Acquisitions Mobile Internet, SMS, MMS, Video, Apps Media Serving platform Brand Ad network Publishers Consumer agency Demand side Supply side
Slide 22: 2Q12 Guidance
2Q12 Guidance Metric 2Q 2012 Guidance Revenue* MUSD 50.5-52.5 EBIT** MUSD 10-11 * Assumes currency remainder of 2012 (NOK 5.8 /USD, USD 1.3 /EUR) **Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs.
Slide 23: 2Q12 Guidance
2Q12 Guidance Vs. 1Q12 Comments Revenue* Operators Up Opera Mini user growth from existing and new agreements Mobile Consumers Up Opera Mini user growth and search Mobile OEMs Down General trend Desktop Flat Seasonally weaker 2Q Device OEMs Flat Coming off solid 1Q12 Mobile Publishers & Up Growth dr
Slide 24: FY2012 Outlook
FY2012 Outlook Metric 2012 Guidance Revenue* MUSD 200-215 EBIT** MUSD 48-53 *Assumes currency remainder of 2012 (NOK 5.8 /USD, USD 1.3 /EUR) **Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs.
Slide 25: Operational Update Q1-2012
Operational Update Q1-2012
Slide 26: Operators
Operators
Slide 27: Continued strong growth: 31 million+ Operator Opera Mini users
Operator- & Co-Branded Opera Mini Active Users (million) 35 30 25 20 15 10 5 0 Continued strong growth: 31 million+ Operator Opera Mini users
Slide 28: Telkomsel launches low-cost data bundle with Opera Mini and chat service
Telkomsel launches low-cost data bundle with Opera Mini and chat service • 360 degree campaign: TV, print, outdoor and online • Promoted across Indonesia • Message: “Unlimited freedom to be creative with Opera Mini and WhatsApp”
Slide 29: MTN aggressively promoting Opera Mini on TV
MTN aggressively promoting Opera Mini on TV • Three 30-second TV commercials • In rotation on satellite CNN, MTV and SuperSport • Aired across Africa and beyond (UK, Norway, …) • Message: “Get Mini, go faster! Download MTN Opera Mini.”
Slide 30: New deals
New deals signed with big players Continued strong pipeline in MEA, APAC and LATAM
Slide 31: Opera Mini growth continues
20 000 000 40 000 000 60 000 000 80 000 000 100 000 000 120 000 000 140 000 000 160 000 000 180 000 000 0 January March May July September November January March May July September November January March May July September November January Unique users March May July September November January March
Slide 32: Opera Mini enters BlackBerry App World
What we can do Opera Mini enters BlackBerry App World March 6th, resulted in 14% growth in March
Slide 33: Opera growth on Android
Opera growth on Android 20 000 000 15 000 000 10 000 000 5 000 000 0
Slide 34: Significant part of user growth now on smartphone
Significant part of our user growth is now on smartphone (from 15% in 1Q-11 to 60% 1Q-12) 60% 15% 1Q-11 1Q-12 Smartphone growth will enable better monetization of mobile search
Slide 35: Mobile OEMs
Mobile OEMs
Slide 36: Opera Mini installed on many OEM phones
Opera Mini installed on many OEM phones Samsung distribution growing fast as Opera Mini is shipping on phones worldwide
Slide 37: TV & Devices
TV & Devices
Slide 38: Opera signs new Tier-1 TV OEM
Corporate Overview Largest TV Manufacturer in Europe for over 200 brand names globally Opera signs Leading European STB vendor, particularly strong in Middle East and new Tier-1 TV Eastern Europe OEM Nature of Deal Long term license for Opera Devices SDK and Opera TV Browser to ship on compatible Ve
Slide 39: New contracts
New contracts 1. Korean STB OEM 2. Korean STB OEM 3. Taiwan Chip-set 4. US Chip-set Good momentum with existing and new customers in TV & Devices
Slide 40: Desktop
Desktop
Slide 41: Desktop revenue (MUSD)
Desktop revenue (MUSD) 18 16 14 12 10 8 17 15 13 13 13 6 4 2 0 1Q11 2Q11 3Q11 4Q11 1Q12 Continued growth in users and revenue from desktop
Slide 42: Opera 12 beta launched on April 26th
Opera 12 beta launched on April 26th Faster page loading and quicker startup. Added support for Arabic, Hebrew, Urdu and Farsi. Themes for easy and playful customizations. Cutting edge support for new web Improved quality through separation of plug-ins standards like Camera, CSS animations like Flas
Slide 43: Significant growth of commercial desktop partners and revenue
Significant growth of commercial desktop partners and revenue during the last quarters Q1-2011 Q1-2012 Revenue increase excluding search x3
Slide 44: Bringing on more global and local partners
Bringing on more global and local partners for service integration and distribution
Slide 45: Advertising
Advertising
Slide 46: Opera Mobile Publisher & Advertiser Business
Leading Global Mobile Advertising Platform Opera Mobile Publisher & Advertiser Business Who We Are: - Used by the world’s leading media brands & publishers - 35B+ monthly impressions, 9000 sites and apps - Audience reach: 140M mobile consumers globally (330M including Opera) - 9/10 smartphone users
Slide 47: Opera covers the full mobile advertising value chain
Opera covers the full mobile advertising value chain Opera covers the full mobile advertising value chain Mobile Internet, SMS, MMS, Video, Apps Brand Media Ad network Serving platform Publishers Consumer agency Demand side Supply side
Slide 48: Leading publishers as customers
Leading publishers as customers
Slide 49: Leading agencies and brands as customers
Leading agencies and brands as customers
Slide 50: Monetization areas
Monetization areas Mobile search 2012 Payment enablement New homepage Mobile Store
Slide 51: Mobile Search
Mobile Search
Slide 52: Ramping up
Ramping up Activities for joint campaigns in emerging markets Opera is key to Google’s push in emerging markets Google promotes Opera Google is our main search partner for mobile
Slide 53: Partnership
Partnership for mobile was established in 2011 and looks promising moving forward Yandex is the main Search partner for CIS
Slide 54: Payment enablement
Payment enablement
Slide 55: OPX launched
OPX launched at Mobile World Congress OPX is enabling a payment eco-system around Opera Mini
Slide 56: Homepage
Homepage
Slide 57: Opera Mini 7
Opera Mini 7 Introduced the Start Screen with Smart Page and Speed Dials
Slide 58: Key Features
Key Features Better co-branding Social network aggregation Advertising/promotions Adapting to the users preferred sites Site suggestions
Slide 59: Mobile Store
Mobile Store
Slide 60: Opera Mobile Store enables search & discovery channels
Opera Mobile Store enables search & discovery channels for driving user engagement and downloads Opera browser prominent speed dial Can be customized to highlight the brand of exclusive or in-demand apps (e.g. Angry Birds theme) Exclusive/premium offer banners Graphic banner header at top of storefr
Slide 61: Opera Mobile Store consumer reach
Opera Mobile Store consumer reach 25+ Million Monthly 4.5 120+ Million Page 45+ Pageviews Million Downloads App Store Visits Per Visit Views Per Month Per Month
Slide 62: Q&A
Q&A