Slide 1: Opera Software: Second quarter 2012
Opera Software: Second quarter 2012
Slide 2: 2Q 2012 Financial highlights
2Q 2012 Financial highlights Financial metric 2Q12 2Q11 (MUSD) (MUSD) Revenue Total revenue 52.1 39.4 Profitability Adj. EBITDA*/** 14.5 10.2 EBIT** 11.0 8.1 • Revenue growth of 32% (37% FX adjusted) • Record revenue and strong profitability • Strong revenue growth from Mobile Consumers, Mobile Publ
Slide 3: Highlights
Highlights Highlights Operators • Strong growth in operator Opera Mini users: 39.8 million in June 2012, vs. 16.2m in June 2011, up 145% • Strong operator platform for continued growth • Growth from existing customers like Telkomsel, AT&T, MTN, Telenor and MTS • New operator agreements announced in
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 2Q12 2Q11 (MUSD) (MUSD) Revenue Total revenue 52.1 39.4 Profitability Adj. EBITDA*/** 14.5 10.2 EBIT** 11.0 8.1 Cash generation Operating Cash 4.6 6.5 Flow Free Cash Flow*** 1.1 3.4 *Non-IFRS EBITDA excludes stock option costs **Excl
Slide 7: 2Q12 Actuals versus Guidance
2Q12 Actuals versus Guidance 2Q 2012 Actuals 2Q 2012 Midpoint Guidance (May 4)* Revenue MUSD 52.1 MUSD 51.5 EBIT** MUSD 11.0 MUSD 10.5 *Provided at 1Q12 Presentation ** Excluding one-off extraordinary costs of MUSD 4.3 in 2Q12
Slide 8: 2Q12 Financial review
2Q12 Financial review MUSD 2Q12* 2Q11 Q on Q Revenue 52.1 39.4 32% Cost of Goods sold- 6.2 0.8 676% Payroll and related expenses - 23.1 20.5 13% Stock option costs - 1.1 0.8 42% Depreciation and amortization - 2.5 1.4 84% Other operating expenses - 8.2 7.9 4% Total expenses = 41.1 31.3 31% EBIT 11.0
Slide 9: Financial highlights: 2Q11-2Q12
Financial highlights: 2Q11-2Q12 Revenue (MUSD) Adjusted EBITDA* (MUSD) Revenue Adjusted EBITDA* 55 16 50 15 14 45 13 40 12 11 35 10 30 9 8 25 7 20 6 15 5 4 10 3 5 2 1 0 0 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 * Non-IFRS EBITDA excludes stock option costs and extraordinary one-time costs
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 (2Q12)
Revenue: Customer type (2Q12) Overall revenue as expected Customer Type Operators Lower than expected Mobile Consumers (Opera owned and As expected vs. guidance operated properties) Mobile OEMs As expected vs. guidance Desktop Consumers As expected vs. guidance Device OEMs As expected vs. guidance M
Slide 13: Revenue: Operators (2Q12)
Revenue: Operators (2Q12) Operator Revenue lower than expected 145% Operator Opera Mini user growth June 2012 vs. June 2011 User growth driven by MTN, MTS, Telenor, Telkomsel, and Vodafone in particular Opera Mini licence revenue up 3% to MUSD 9.2 Overall revenue growth: Down 24% versus 2Q11, with s
Slide 14: Revenue: Mobile Consumers (2Q12)
Revenue: Mobile Consumers (Opera owned and operated properties) - 2Q12 Mobile Consumer revenue as expected Revenue growth driven primarily by mobile search and Opera Mobile Store vs. 2Q11 Revenue growth: 168% versus 2Q11 MUSD Mobile Consumers (Opera owned and operated properties)* 4,0 3,5 3,0 2,5 2,
Slide 15: Revenue: Mobile OEMs (2Q12)
Revenue: Mobile OEMs (2Q12) Mobile OEM revenue in line with expectations License revenue: 45+% of revenue Overall revenue growth: down 40% versus 2Q11 MUSD Mobile OEM revenue* NRE + M&S Licenses 5,0 4,0 1 3,0 2,0 1 1 3 1 1,0 1 1 1 1 1 - * Unaudited 2Q11 3Q11 4Q11 1Q12 2Q12
Slide 16: Revenue: Desktop Consumers (2Q12)
Revenue: Desktop Consumers (2Q12) Desktop revenue in line with expectations Strong ARPU due to strong local affiliate and search revenue Desktop users flat versus end of 2Q11 Overall revenue growth: 22% versus 2Q11 Monthly Desktop users* Desktop revenue* (MUSD) (last month of quarter) 20 60 50 15 40
Slide 17: Revenue: Device OEMs (2Q12)
Revenue: Device OEMs (2Q12) Device OEM revenue as expected Revenue driven by Connected TV customers License revenue: 60%+ of revenue Overall revenue growth: 16% versus 2Q11 MUSD Device OEM revenue* NRE + M&S Licenses 10,0 9,0 8,0 2 7,0 2 6,0 1 1 3 5,0 4,0 7 3,0 5 5 6 2,0 4 1,0 0,0 * Unaudited 2Q11 3
Slide 18: 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 19: Revenue: Mobile Publishers & Advertisers (2Q12)
Revenue: Mobile Publishers & Advertisers (Non Opera owned and operated properties) - 2Q12 Mobile Publisher & Advertiser revenue better than expected versus guidance Revenue growth driven primarily by premium advertisers and publishers AdMarvel managed 102B ad impressions in 2Q12, up 92% vs. 2Q11 Rev
Slide 20: OPEX development
OPEX development OPEX (NOK Million) Cost line 2Q12 vs. Comments One time extraordinary cost 2Q11 Cost of goods sold Payroll 13% •Higher compensation expense per employee and overall headcount Other OPEX growth. Depreciation Cost of Goods 676% •Driven by 450%+ growth in Mobile Stock Options Sold Publ
Slide 21: Cash flow 2Q12 (MUSD)
Cash flow 2Q12 (MUSD) 8 6 4 2 0 -2 -4 -6
Slide 22: 3Q12 Guidance
3Q12 Guidance Metric 3Q 2012 Guidance Revenue* MUSD 56-58 EBIT** MUSD 11.5-12.5 * Assumes currency remainder of 2012 (NOK 5.9 /USD, USD 1.25 /EUR) **Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs.
Slide 23: 3Q12 Guidance
3Q12 Guidance Vs. 2Q12 Comments Revenue* Operators Up Opera Mini user growth from existing and new agreements Mobile Consumers Up Opera Mini user growth, search revenue and Opera Mobile Store Mobile OEMs Down General trend Desktop Flat-Up Stable user trend and solid ARPU Device OEMs Down Coming off
Slide 24: FY2012 Outlook
FY2012 Outlook Metric 2012 Guidance (prior***) 2012 Guidance (new) Revenue* MUSD 200-215 MUSD 214-219 EBIT** MUSD 48-53 MUSD 45-48 *Assumes currency remainder of 2012 (NOK 5.9 /USD, USD 1.25 /EUR) **Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs. ***Pr
Slide 25: Operational Update Q2-2012
Q2-2012 ! ~ Operational Update is i & , OPERA’ software
Slide 26: New agreement Google
Worldwide agreement: Desktop Mobile Tablet Smartpage New agreement Google
Slide 27: Yandex agreement extended
THAeKC Yandex agreement extended
Slide 28: Opera product launches 2Q 2012
Opera product launches 2Q 2012 April May June Opera 12 Final for Mac, Final release of Opera 12 Windows and Linux Smart Page for Opera Mini Opera Mini 7 for feature phones Opera Mini 7.0.2 for iOS Opera Mobile 12.0.3 Android Opera Mini 7.0.3 Android Last version of Opera 11 Opera 11.64 Final Beta la
Slide 29: Operators
Operators
Slide 30: Continued strong growth: Nearly 40 million Operator Opera Mini users
Operator- & Co-Branded Opera Mini Active Users (million) 40 35 30 25 20 15 10 5 0 Continued strong growth: Nearly 40 million Operator Opera Mini users
Slide 31: New operator wins: Airtel, VimpelCom, América Móvil
New operator wins: Airtel, VimpelCom, América Móvil group deals, 600M+ subscribers 200M subscribers, 18 countries 240M subscribers, 240M subscribers, 18 countries 20 countries
Slide 32: Re-signed strategic existing customers
Re-signed strategic existing customers
Slide 33: Airtel India and Bangladesh launch Opera Mini
Airtel India and Bangladesh launch Opera Mini with integrated marketing campaigns
Slide 34: MTN Nigeria follows up TV campaign with below-the-line activations
MTN Nigeria follows up TV campaign with below-the-line activations • Quiz competition with social media sharing • Win Samsung Galaxy Pocket phones • BTL campaign (SMS, social media, website)
Slide 35: Tecno partnering with MTN and running TV ads in Africa
Tecno partnering with MTN and running TV ads in Africa promoting Opera phones
Slide 36: Etisalat Nigeria launches Opera Mini data bundles
Etisalat Nigeria launches attractive Opera Mini data bundles • 24h Opera Mini data bundles • Promoted through SMS, social (social and sports) media, website, press releases and radio • Low price of 50 NGN (0.32 USD)
Slide 37: SingTel Opera Mini launch campaign targeting prepaid segment
SingTel Opera Mini launch campaign targeting prepaid segment (SPHNP: NP-NEWS-PAGES <A01-VBSING01> [FIRST] ... 28/03/12 Author:JLOW Date:28/03/12 Time:18:27) Press clippings CHEAPER WAY TO CONNECT Thanks to SingTel prepaid card, it’s now easier for her to get in touch with her son in the Philippines
Slide 38: Opera mobile browser user growth continues
0 20 000 000 40 000 000 60 000 000 80 000 000 100 000 000 120 000 000 140 000 000 160 000 000 180 000 000 200 000 000 January March May July September November January March May July September November January March May July September November January March Unique users May July September November J
Slide 39: Opera growth on Android
Opera growth on Android 25 000 000 20 000 000 15 000 000 10 000 000 5 000 000 0
Slide 40: Significant part of our user growth is on smartphones
Significant part of our user growth is on smartphones (from 25% in 2Q-11 to 67% 2Q-12) 67% 25% 2Q-11 2Q-12 Smartphone growth will enable better monetization of mobile search
Slide 41: Well-positioned for growth in Google Play
Well-positioned for growth in Google Play with both Opera Mini and Opera Mobile . Opera Mini • In top 10 free apps for 30+ markets • Good positions in fast moving markets (IN, RU, BR, ID, UK) Opera Mobile • In top 5 free apps in Russia/CIS and Central Europe • Good positions in mature markets (DE, U
Slide 42: Mobile OEMs
Mobile OEMs
Slide 43: New contracts and new handsets
New contracts: • 3 new contracts in India New handsets: • Global: 5 handsets from 2 manufacturers • India: 8 handsets from 5 manufacturers • Africa: 6 handsets from 1 manufacturer Coming soon... • >3 Tablets, >5 Android phones
Slide 44: Tecno launched Opera Mini phone for African markets
Tecno Tecno launched launched Opera Opera Mini Mini phone phone for for African markets African markets
Slide 45: TV & Devices
TV & Devices
Slide 46: Wins in Q2
Wins in Smart TVs • 2 new agreements Q2 STBs • 5 new agreements Automotive • 2 new agreements
Slide 47: Opera TV Store Status
Opera TV Store Status 68 apps published 106 contracts signed 25 apps in QA Launched with tier 1 Strong pipeline
Slide 48: Desktop
Desktop
Slide 49: Desktop revenue (MUSD)
Desktop revenue (MUSD) 18 16 14 12 10 8 16 13 6 4 2 0 2Q11 2Q12 Revenue up 3M$ vs 2Q-2011
Slide 50: Traffic and revenue from desktop online transactions continues the growth
Traffic and revenue from desktop online transactions continues the growth • Further growth in revenues from existing tier one content partners • Yandex, Booking.com, Amazon, eBay, Schibsted CM • Leveraging user base with tailored partner solutions • Mail.ru, Rambler, Facebook, eBay • Continue to par
Slide 51: Mobile
Slide 52: Opera Mini 7 with Smart Page launched
Opera Mini 7 with Smart Page launched - Launched for J2ME, Symbian and Blackberry - Android version to be available in September 2012 - Key features include: Advertising enabled, Facebook and Twitter integration, personalized based on users history. - Close to 20 million users have the Smart Page wi
Slide 53: Monetization strategy for Smart Page
Monetization strategy for Smart Page - 35 million Smart Page views per day generating over 80 million ad impressions (all plugged into AdMarvel) - First flow of ad campaigns sold in Russia, India and Brazil. Expected fast growth when Android launches. - Scaling the local partnerships by setting up r
Slide 54: Opera Mobile Store statistics
Opera OperaMobile MobileStore Storestatistics growth Sept 2011 June 2012 Growth # of Apps 38.000 64.500 +70% # of Developers 6.300 8.500 +35% # of Downloads 11 million 38 million +245% # of Visitis 21 million 36 million +71%
Slide 55: Successful launch of pay-per-download
Top PPD campaigns: Successful launch of pay- per-download PPD Revenue Index 5,00 4,00 Revenue from 3,00 PPD grew by 4,69 350+% from Q1 2,00 to Q2 1,00 1,00 - 1Q12 2Q12
Slide 56: Top brands are available in the store
Top brands are available in the store
Slide 57: Advertising
Advertising
Slide 58: Strong performance: ad impressions grew 18% from Q1 to Q2
Strong performance Ad impressions - Bn 120 In 2011 more than $200 100 million in advertising 80 spend was managed by the Admarvel 60 102 platform. 86 40 72 53 56 20 In 2012 we’re on track 0 to do more than $400 2Q11 3Q11 4Q11 1Q12 2Q12 million Ad impression grew 18% from Q1 to Q2 And 92% YoY
Slide 59: Mobile Advertising Revenue grew 94% from Q1 to Q2
Mobile Advertising Revenue Index 2,50 2,00 1,50 1,00 1,94 0,50 1,00 - 1Q12 2Q12 Mobile Advertising Revenue grew 94% from Q1 to Q2. Technical migration completed.
Slide 60: Mobile Theory
Mobile Theory Notable Advertising Campaigns run for brand advertisers in the US
Slide 61: Infiniti Panoramic technology
Infiniti Panoramic technology For Infiniti we produced a highly rich, interactive HTML5 ad unit to showcase the JX series. This offered the user the opportunity to look around the inside of the car using all axis, panoramic navigation. This was controlled by a finger swipe on the screen for instant,
Slide 62: eBay Dynamic Feeds
Dynamic eBay Feeds By integrating with eBay through an API feed we were able to dynamically pull in the latest deals that were being offered on the auction site. The user was able to swipe through all the latest deal in ad and then click to go through to site and purchase. eBay therefore had complet
Slide 63: Q&A
Q&A