Slide 1: Opera Software: First quarter 2011
Opera Software: First quarter 2011
Slide 2: 1Q 2011 Financial highlights
1Q 2011 Financial highlights Financial metric 1Q11 1Q10 Status report (MNOK) (MNOK) Revenue Total revenue 207.3 151.4 Profitability Adj. EBITDA* 53.0 14.7 EBIT** 41.4 5.4 • Record revenue and profitability • Strong revenue growth from operators and desktop • Continuing to see a shift in revenue mix
Slide 3: Highlights
Highlights Operators • Strong growth in operator Opera Mini users: 15 million in April • Multiple operators, including Verizon Wireless and Telenor launching Opera Mini-based offerings in the quarter – contributing to the growth • Successful implementation of co-branded data plans in Russia and CIS,
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: 1Q 2011 Financial highlights
1Q 2011 Financial highlights Financial metric 1Q11 1Q10 (MNOK) (MNOK) Revenue Total revenue 207.3 151.4 Profitability Adj. EBITDA* 53.0 14.7 EBIT** 41.4 5.4 Cash generation Operating Cash 22.5 -10.2 Flow Free Cash Flow*** 9.9 -17.2 * Non-IFRS EBITDA excludes stock option costs and one-time costs **
Slide 7: 1Q11 Actuals versus Guidance
1Q11 Actuals versus Guidance 1Q 2011 Actuals 1Q 2011 Midpoint 1Q 2011 Actuals Guidance* at Guidance FX (Feb 21) Rates (Feb 21)* Revenue MNOK 207 MNOK 208 MNOK 213 EBIT NOK 41.4 MNOK 37.5 MNOK 47 *Provided at 4Q10 Presentation
Slide 8: 1Q11 Financial review
1Q11 Financial review MNOK 1Q2011 1Q2010* Q on Q Desktop + 70.9 52.0 36% Internet Devices + 136.4 99.4 37% Total revenue = 207.3 151.4 37% Payroll and related expenses - 107.8 100.2 8% Stock option costs - 4.7 4.4 6% Depreciation and amortization - 6.9 4.9 41% Other operating expenses - 46.6 36.4 28
Slide 9: Financial highlights: 1Q07-1Q11
Financial highlights: 1Q07-1Q11 Operating revenues (NOK Million) Adjusted EBITDA* (NOK Million) Desktop Internet Devices EBITDA* 220 60 200 50 180 160 40 140 120 30 100 20 80 60 10 40 0 20 0 -10 Q1 11 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q210 Q310 Q4 10 Q1 11
Slide 10: Revenue growth drivers
Revenue growth drivers Active users with operators Desktop users Opera Mini user base and ARPU Agreements with Connected TV vendors
Slide 11: Revenue: Customer type (1Q11)
Revenue: Customer type (1Q11) Overall revenue higher than expected (vs. midpoint), offset by negative FX Customer Type Operator As expected vs. guidance Desktop As expected vs. guidance Device OEM As expected vs. guidance Mobile OEM As expected vs. guidance Other Better than expected, with good cont
Slide 12: Revenue: Operators (1Q11)
Revenue: Operators (1Q11) Operator Revenue in line with expectations 445% Operator Opera Mini user growth March 2011 vs. March 2010 User growth driven by Motricity (AT&T), Telkomsel, Telenor and MTS in particular ARPU as expected Overall revenue growth: 74% versus 1Q10 and up as expected vs. 4Q 10 M
Slide 13: Revenue: Mobile OEMs (1Q11)
Revenue: Mobile OEMs (1Q11) Mobile OEM revenue in line with expectations License revenue: 60%+ of revenue Overall revenue growth: -31% versus 1Q10 and up vs. 4Q10 as expected MNOK Mobile OEM revenue* NRE + M&S Licenses 30 25 20 15 7 26 21 22 10 13 12 5 Opera Mobile shipments were 0.5 0 mm in 1Q11 fr
Slide 14: Revenue: Device OEMs (1Q11)
Revenue: Device OEMs (1Q11) Device OEM revenue in line with expectations Revenue growth driven by connected TV customers License revenue: 70%+ of revenue Overall revenue growth: 13% versus 1Q10 and down as expected vs. 4Q10 MNOK Device OEM revenue* NRE + M&S Licenses 40 35 30 9 25 20 33 36 15 29 29
Slide 15: Revenue type: Internet Devices (1Q11)
Revenue type: Internet Devices (1Q11) Revenue type Comment NRE Down as expected vs. 1Q10 and in line with expectations vs. 4Q10 M&S Down as expected vs. 1Q10 and in line with expectations vs. 4Q10 Total Opera Mini Opera Mini revenue up as expected vs. 1Q10 and 4Q10, with strong growth in license rev
Slide 16: Revenue: Desktop (1Q11)
Revenue: Desktop (1Q11) Desktop revenue in line with expectations Desktop user growth 13% versus end of 1Q10 and 6% versus end of 4Q10 Stronger ARPU than expected due to higher search and content partnership revenue Overall revenue growth: 36% versus 1Q10 and flat as expected versus 4Q10 Monthly Des
Slide 17: Revenue: Opera-branded Opera Mini (1Q11)
Revenue: Opera-branded Opera Mini (1Q11) 110,000,000 Monthly users • Growth continuing 100,000,000 90,000,000 • High focus on converting users 80,000,000 to operator- 70,000,000 branded or co- 60,000,000 branded revenue generating users 50,000,000 • High priority of 40,000,000 new Consumer 30,000,00
Slide 18: Key user metrics FY2010 - 2011YTD
Key user metrics FY2010 - 2011YTD January April July October January April Metric 2010 2010 2010 2010 2011 2011 Operator 2.1* 3.5* 5.2* 7.5* 11.5* 15.0* Opera Mini users Million Million Million Million Million Million Opera- branded 50** 59** 62** 75** 90** 106** Opera Mini Million Million Million M
Slide 19: OPEX development
OPEX development OPEX (NOK Million) One time extraordinary cost Cost line 1Q11 vs. Comments Other OPEX 1Q10** Depreciation Payroll 8% •Higher compensation Stock Options expense/employee compared to 1Q10 Payroll Stock 6% •New employee option 180 options grants issued during the last twelve months. 16
Slide 20: Adjusted EBITDA development
Adjusted EBITDA* development 1Q 2010 / 1Q 2011 (NOK Million) 90 80 70 60 50 40 30 20 10 0 EBITDA Internet Desktop Currency Total costs Currency EBITDA Q1 2010 Devices Revenue impact impact Q1 2011 revenue revenue costs *Non-IFRS Adjusted EBITDA excludes stock option costs and one-time costs.
Slide 21: Strong capital structure
Strong capital structure Balance sheet highlights: Metric 1Q11 (MNOK 1Q10 (MNOK) Cash 489 483 Interest-bearing debt 0 0 NWC* -35 -58 Equity 621 591 * NWC is defined as total current assets excluding cash and cash equivalents and minus total current liabilities excluding provisions.
Slide 22: Cash flow 1Q11 (MNOK)
Cash flow 1Q11 (MNOK) 50 40 30 20 10 0 -10 -20 -30
Slide 23: 1Q11 Key KPIs: Summary
1Q11 Key KPIs: Summary Metric 1Q10 1Q11 Change % Revenue (MNOK) 151 207 37% EBIT** (MNOK) 5.4 41.4 661% Adjusted EBITDA *** (MNOK) 14.7 53.0 259% Adjusted EBITDA Margin*** 9.7% 25.6% 164% Operating Cash Flow (MNOK) -10.2 22.5 na Free Cash Flow (MNOK) -17.2 9.9 na Opera Mini Operator users (mill)* 2.
Slide 24: 2Q11 Guidance
2Q11 Guidance Metric Current 2Q 2011 Guidance (Updated FX Rates)*** Revenue* MNOK 207-217 EBIT** MNOK 40-45 *Assumes currency remainder of 2011 (NOK 5.5 /USD, NOK 7.9/EUR) **Earnings before interest and taxes, exclude extraordinary/one-time charges and acquisition costs. ***Note: Applying the Guidan
Slide 25: 2Q11 Guidance
2Q11 Guidance Vs. 1Q11 Comments Revenue* Operators Up Strong due to operator Opera Mini active user growth Desktop Flat- Seasonally weak 2Q and lower FX Down assumptions Device OEM Up Higher due to connected TV customers Mobile OEM Down Lower NRE and license revenue Expenses Payroll Flat - Up Primar
Slide 26: 2011 Guidance
2011 Guidance Metric Current 2011 Guidance Prior (Updated FX Rates to 2011 Guidance reflect weaker USD Feb. 21 versus the NOK)*** Revenue* MNOK 840-890 MNOK 850-900 EBIT** MNOK 160-190 MNOK 170-200 *Assumes currency remainder of 2011 (NOK 5.5 /USD, NOK 7.9/EUR). **Earnings before interest and taxes,
Slide 27: Capital Markets Day 2011
Capital Markets Day 2011 Date: May 24, 2011, New York City Location: InterContinental Hotel, New York Times Square Time: 1:00 PM - 7:00 PM Buffet dinner and cocktails from 7:00 - 10:00 PM Agenda: General update and outlook for each of Opera’s key business areas Deep-dive into Opera’s operator and co
Slide 28: Operations update
Operations update
Slide 29: 1Q 2011: Opera Mini launch spree
1Q 2011: Opera Mini launch spree
Slide 30: Telenor Group user growth in 2011
Telenor Group user growth in 2011 New opco to launch (July) New campaign Monthly active Opera Mini users 2011 (July) Grameenphone campaign live Hungary launches with campaign Grameenphone launches DiGi launches with campaign Montenegro campaign phase 2 Pakistan launches February March April January
Slide 31: Case: Grameenphone launches Opera Mini
Case: Grameenphone launches Opera Mini • 31 million Grameenphone • 7-day free trial of Opera Mini: Free subscribers download, free data during launch campaign • 8 million Internet-enabled handsets • New time-based data plan: Recently • 2 million mobile Internet users launched: 5 taka/day (0.40 NOK/d
Slide 32: Grameenphone Opera Mini 7-day free trial
Grameenphone Opera Mini 7-day free trial
Slide 33: Print, TV, Radio Social media Media partners
Print, TV, Radio Social media Media partners Online PR Preinstallation on Hero handsets Training materials/POS SMS & USSD
Slide 34: Opera brings the Web to Verizon Wireless
Opera brings the Web to Verizon Wireless • Verizon’s customers get a great web experience, while the operator optimizes traffic in its network • Opera Mini is available on select feature phones, including LG enV2™, LG enV®3, LG enV® TOUCH, Samsung Alias™ 2, Casio® G’zOne Ravine™ and Casio® G’zOne Ro
Slide 35: Case: Data plans a hit in Russia and CIS
Case: Data plans a hit in Russia and CIS The “Unlimited Internet with Opera Mini” data plan allows operators to provide its subscribers with an affordable, flat- rate mobile-Internet service. Opera earns share of revenue from operator data plans
Slide 36: Data plans launched across Russia and CIS
Data plans launched across Russia and CIS Russia MegaFon, Beeline, Tele2, NTC Belarus MTS Ukraine MTS, Kyivstar Kazakhstan Beeline
Slide 37: Data plan campaigns
Data plan campaigns • MTS Ukraine: TV, radio, Internet, billboards, POS materials • MegaFon Volga– “Trip to Scandinavia” campaign, SMS, USSD • Beeline KZ: - radio, Internet, billboards, POS materials • MegaFon, Tele2 RU, MTS BY, NTC, Beeline RU - USSD, SMS • Kyivstar - SMS
Slide 38: 15 million operator Opera Mini users
15 million operator Opera Mini users 16,000,000 Monthly subscribers* 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Operators choose Opera because they can build a very large and active user base quickly
Slide 39: 185+ million people use Opera
185+ million people use Opera Opera Mini Opera for Desktop Opera Mobile & Devices
Slide 40: 1Q product launch: Opera Mini 6 & Opera Mobile 11
1Q product launch : Opera Mini 6 & Opera Mobile 11 New user experience Pinch-to-zoom Social sharing Optimized for tablets
Slide 41: Opera Mobile 11: The smartphone browser
Opera Mobile 11: The smartphone browser Opera Mobile features the strongest cross-platform user experience for smartphones. Opera Mobile 11 is the preferred alternative for millions of smartphone users worldwide. 20 million people use Opera Mobile on their smartphones today. Strong growth on Android
Slide 42: Opera for desktop: Continued revenue and user growth
Opera for desktop: Continued revenue and user growth • Continued revenue Desktop revenue* (MNOK) growth • 70.9 MNOK: increase of 80 36% compared to 1Q10 70 • Continued user growth 60 • 55 million Opera desktop 50 users in April 2011 40 30 20 10 0 1Q10 2Q10 3Q10 4Q10 1Q11
Slide 43: TV: Opera is the market leader
TV: Opera is the market leader
Slide 44: Opera powers the Web on Humax's Hybrid set-top box
Opera powers the Web on Humax’s Hybrid set-top box • Humax will be using the latest Opera Devices SDK, featuring: • A redesigned SVG rendering engine, boosting performance up to 10 times • Improved HTML5 compliance and wider platform support • Full HbbTV compliance • Humax is one of the world’s larg
Slide 45: See you in New York!
See you in New York!
Slide 46: Q&A
Q&A