Slide 1: Opera Software: Third quarter 2012
Opera Software: Third quarter 2012
Slide 2: 3Q 2012 Financial highlights
3Q 2012 Financial highlights Financial metric 3Q12 3Q11 (MUSD) (MUSD) Revenue Total revenue 56.4 40.1 Profitability Adj. EBITDA*/** 17.0 13.6 EBIT** 13.7 11.0 • Revenue growth of 40% (43% FX adjusted) • Record revenue and profits • Strong revenue growth from Mobile Consumers, Mobile Publishers & Adv
Slide 3: Highlights
Highlights Highlights Operators • Operator Opera Mini user growth 112% YoY Mobile/Devices • 207m+ users of Opera Mobile browser products • Building leading position in the TV/set-top box segment • 3Q12 wins with Hisense & Vestel End users • 280m+ people using Opera browsers every month • Mobile Cons
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 3Q12 3Q11 (MUSD) (MUSD) Revenue Total revenue 56.4 40.1 Profitability Adj. EBITDA*/** 17.0 13.6 EBIT** 13.7 11.0 Cash generation Operating Cash 5.1 6.8 Flow Free Cash Flow*** 4.3 2.7 *Non-IFRS EBITDA excludes stock option costs **Exc
Slide 7: 3Q12 Actuals versus Guidance
3Q12 Actuals versus Guidance 3Q 2012 Actuals 3Q 2012 Midpoint Guidance (August 22)* Revenue MUSD 56.4 MUSD 57 EBIT* MUSD 13.7 MUSD 12 *Provided at 2Q12 Presentation
Slide 8: 3Q12 Financial review
3Q12 Financial review MUSD 3Q12 3Q11* Q on Q Revenue 56.4 40.1 40% Cost of Goods sold- 6.3 0.6 894% Payroll and related expenses - 23.6 18.1 30% Stock option costs - 0.8 0.8 1% Depreciation and amortization - 2.4 1.7 44% Other operating expenses - 9.5 7.9 20% Total expenses = 42.6 29.1 46% EBIT 13.7
Slide 9: Financial highlights: 3Q11-3Q12
Financial highlights: 3Q11-3Q12 Revenue (MUSD) Adjusted EBITDA* (MUSD) Revenue Adjusted EBITDA* 60 18 55 17 16 50 15 45 14 13 40 12 35 11 10 30 9 25 8 7 20 6 15 5 4 10 3 5 2 1 0 0 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 * Non-IFRS EBITDA excludes stock option costs and extraordinary one-ti
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 Strategy
Overall Mobile Strategy Non-Opera Opera Properties Properties Search, opcos and developers Opera Payment Ad mediation, serving, campaign Exchange management + Analytics
Slide 12: Revenue: Customer type (3Q12)
Revenue: Customer type (3Q12) Overall revenue in line with expectation Customer Type Operators Slightly less than expectations Mobile Consumers (Opera owned and In line with expectations operated properties) Mobile OEMs In line with expectations Desktop Consumers In line with expectations Device OEM
Slide 13: Revenue: Operators (3Q12)
Revenue: Operators (3Q12) Operator Revenue slightly less than expectations 112% Operator Opera Mini user growth September 2012 vs. September 2011 User growth driven by Airtel, Etisalat, MTN and Vodafone in particular Opera Mini licence revenue up 20% to MUSD 9.8 Overall revenue growth: Down 12% vers
Slide 14: Revenue: Mobile Consumers (3Q12)
Revenue: Mobile Consumers (Opera owned and operated properties) (3Q12)) Mobile Consumer revenue in line with expectations Revenue growth driven primarily by mobile search, advertising, and Opera Turbo license agreement in 3Q12 Revenue growth: 414% versus 3Q11 MUSD Mobile Consumers (Opera owned and o
Slide 15: Revenue: Mobile OEMs (3Q12)
Revenue: Mobile OEMs (3Q12) Mobile OEM revenue in line with expectations Overall revenue growth: down 93% versus 3Q11 MUSD Mobile OEM revenue* NRE + M&S Licenses 5 4 1 3 2 1 3 1 1 1 1 1 1 0 0 0 * Unaudited 3Q11 4Q11 1Q12 2Q12 3Q12
Slide 16: Revenue: Desktop Consumers (3Q12)
Revenue: Desktop Consumers (3Q12) Desktop revenue in line with expectations Strong ARPU due to strong local affiliate and search revenue and Opera Turbo license agreement in 3Q12 Desktop users at 55 million, up 2% versus end of 3Q11 Overall revenue growth: 39% versus 3Q11 Monthly Desktop users* Desk
Slide 17: Revenue: Device OEMs (3Q12)
Revenue: Device OEMs (3Q12) Device OEM revenue as in line with expectations Revenue driven by Connected TV customers License revenue: 40%+ of revenue Overall revenue growth: down 33% versus 3Q11 MUSD Device OEM revenue* NRE + M&S Licenses 10 9 8 2 7 2 6 1 3 5 4 7 3 5 6 2 2 4 1 2 0 * Unaudited 3Q11 4
Slide 18: Revenue: Mobile Publishers & Advertisers (3Q12)
Revenue: Mobile Publishers & Advertisers (Non Opera owned and operated properties) (3Q12)) Mobile Publisher & Advertiser revenue in line with expectations Revenue growth driven primarily by premium advertisers AdMarvel managed 120B ad impressions in 3Q12, up 112% vs. 3Q11 Revenue growth: 456+% versu
Slide 19: OPEX development
OPEX development OPEX (NOK Million) Cost line 3Q12 vs. Comments One time extraordinary cost 3Q11 Cost of goods sold Payroll 30% •Higher compensation expense per employee and overall headcount Other OPEX growth. Depreciation Cost of Goods 894% •Driven by 456% growth in Mobile Stock Options Publisher
Slide 20: Cash flow 3Q12 (MUSD)
Cash flow 3Q12 (MUSD) 14 12 10 8 6 4 2 0 -2
Slide 21: 4Q12 Guidance
4Q12 Guidance Metric 4Q 2012 Guidance Revenue* MUSD 57-60 EBIT** MUSD 11-13 * Assumes currency remainder of 2012 (NOK 5.7 /USD, USD 1.3 /EUR) **Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs.
Slide 22: 4Q12 Guidance
4Q12 Guidance Vs. 3Q12 Comments Revenue* Operators Flat Solid Opera Mini license/data revenue Mobile Consumers Down 4Q12 down because it does not include revenue from the Yandex-Opera browser cooperation Mobile OEMs Down General trend Desktop Down 4Q12 down because it does not include revenue from t
Slide 23: FY2012 Outlook
FY2012 Outlook Metric 2012 Guidance (prior***) 2012 Guidance (new) Revenue* MUSD 214-219 MUSD 212-215 EBIT** MUSD 45-48 MUSD 48-50 *Assumes currency remainder of 2012 (NOK 5.7 /USD, USD 1.3 /EUR) **Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs. ***Pri
Slide 24: Operational Update Q3-2012
a pe = Operational Update - 93-2012 OPERA’ software
Slide 25: Mobile Consumers
Mobile Consumers
Slide 26: Growing userbase of 200M+
50 000 000 100 000 000 150 000 000 200 000 000 250 000 000 0 2010 - January 2010 - February 2010 - March 2010 - April 2010 - May 2010 - June 2010 - July 2010 - August 2010 - September 2010 - October 2010 - November 2010 - December Smart Phone 2011 - January 2011 - February 2011 - March 2011 - April
Slide 27: Continued strong growth on Android 300%+ YoY
Continued strong growth on Android 300%+ YoY 35 000 000 30 000 000 25 000 000 20 000 000 15 000 000 10 000 000 5 000 000 0
Slide 28: Google Play daily installs up 47% in the last six months
Google Play daily installs up 47% in the last six months Opera Mini installs Opera Mobile installs 4/14/12 5/14/12 6/14/12 7/14/12 8/14/12 9/14/12 10/14/124/15/12 5/15/12 6/15/12 7/15/12 8/15/12 9/15/12 10/15/12
Slide 29: Smartpage revenues ramping up in key markets
Smartpage revenues ramping up in key markets Campaigns launched last months
Slide 30: Faster and cheaper internet browsing. Operators
Faster and cheaper internet browsing. O pe rato rs Visit m.opera.com to download.
Slide 31: Our operator platform
Our operator platform: More than 100 operator partners signed Enjoyed by 40+ M users monthly Success with dataplans
Slide 32: Taking dataplans to the next level
Taking dataplans to the next level
Slide 33: Opera Web Pass
Opera Web Pass Selling internet as an app!
Slide 34: Example: Telenor Malaysia
Example: Telenor Malaysia Buy access with a Click2Go experience
Slide 35: VISON - turn any device…
VISON - turn any device… Building on existing technology assets
Slide 36: Desktop Consumers
Desktop Consumers
Slide 37: We work with global and local brand partners
We work with global and local brand partners
Slide 38: Revenue growth continues from content partnership engagements on Desktop
Revenue growth continues from the content partnership engagements on Desktop Branding through • New partner engagements the Speed Dial • eBay roll out in Russia • Established Facebook as a commercial partner in CIS • Amazon extension launched and promoted in key markets • Booking.com rolled out in U
Slide 39: Desktop revenue (MUSD)
Desktop revenue (MUSD) 20 18 16 14 12 10 19 8 13 6 4 2 0 3Q11 3Q12 Revenue up 5M$ vs 3Q11
Slide 40: Search partners
Search partners
Slide 41: New agreement in implementation
New agreement in implementation
Slide 42: Yandex technology partnership announced
Yandex technology partnership announced
Slide 43: Advertising
Advertising
Slide 44: Update on Mobile Ad Network Strategy
Update on Mobile Ad Network Strategy Mobile Internet, SMS, MMS, Video, Apps Ad Serving Brand Ad Ad network Ad Mediation Publishers Consumer agency Campaign Mgt Demand side Supply side
Slide 45: Leading publishers as customers
Leading publishers as customers
Slide 46: Mobile Theory Operational Update
Mobile Theory Operational Update: Revenue Growth of 300%+ YoY EBIT Margin 10%+ Grew headcount from 8 in 3Q11 to 41 in 3Q12 Built up market presence in San Francisco, Los Angeles, New York and Chicago Synergies: Publisers (AdMarvel) + Advertisers (Mobile Theory) Key campaigns in 3Q12:
Slide 47: Leading agencies and brands as customers
Leading agencies and brands as customers
Slide 48: Key Goals
Key Goals: Drive and Manage Traffic for Operators and Major Internet Companies Search Advertising
Slide 49: Q&A
Q&A