Record Revenue and Adjusted EBITDA
Oslo, Norway - October 30, 2014 - Opera Software (OSEBX: OPERA) today
reported financial results for the third quarter, which ended September
30, 2014.
3Q 2014 financial highlights include:
· § Revenue of $138.8m, up 84% versus 3Q13
· § Adjusted EBITDA* of $33.9m, up 51% versus 3Q13
· § Operating Cash Flow of $18.2m versus $20.1m in 3Q13
· § Free Cash Flow of $15.4m versus $15.8m in 3Q13
Revenues
Compared to 3Q13, 3Q14 saw strong revenue growth from Mobile Consumers
(Owned and Operated Properties) and Mobile Publishers and Advertisers
(Opera Publisher Partner Members), revenue growth from Device OEMs and a
relatively flat revenue trend from Desktop Consumers and Mobile
Operators.
Profit
EBITDA, excluding stock-based compensation expenses, was $33.9 million
compared with $22.5 million in 3Q13. EBITDA was $29.4 million in 3Q14
compared with $22.5 million in 3Q13. EBIT was $19.5 million in 3Q14
compared to $15.6 million in 3Q13.
3Q14 IFRS Net Income was -$11.7 million compared to $1.3 million in
3Q13. Non-IFRS 3Q14 Net Income was $20.4 million compared to $14.0
million in 3Q13. The Company´s non-IFRS Net Income in 3Q14 excludes the
effects of $4.5 million in non-cash stock-based compensation expenses,
$9.1 million related to a non-controlling strategic equity interest in a
joint venture and $18.5 million in acquisition related adjustments. Note
that the $18.5 million in acquisition related adjustments is comprised
of the following: $14.8 million of this cost is interest expense and FX
adjustments related primarily to the AdColony acquisition and $3.7
million relates to acquisition depreciation expenses and tax expenses
associated with all of Opera's acquisitions.
EPS and fully diluted EPS were -$0.082 and -$0.080, respectively, in
3Q14, compared to $0.011 and $0.010, respectively, in 3Q13. Non-IFRS EPS
and fully diluted Non-IFRS EPS were $0.143 and $0.138, respectively, in
3Q14, compared to $0.114 and $0.111, respectively, in 3Q13.
Liquidity and capital resources
The Company's net cash flow from operating activities was $18.2 million
in 3Q14 compared to $20.1 million in 3Q13. Cash flow from operating
activities was impacted positively by strong profitability and
negatively by changes in working capital. Opera's cash balance was
impacted positively by net cash flow from operating activities, proceeds
from the equity offering and proceeds from sale of equipment and
negatively by expenses related to acquisitions, share buybacks,
investments in research and development and capital expenditures.
Capital expenditures, which are primarily related to Opera's hosting
operations, were $2.7 million in 3Q14 versus $4.4 million in 3Q13.
Operational Highlights
· § Mobile Consumers - Opera Owned and Operated Properties
Revenue of $12.8 in 3Q14, up 68% versus 3Q13
Total Opera mobile consumer users reached 271 million at the end of
3Q14, up 4% versus the end of 3Q13
Opera´s Android users reached 116 million at the end of 3Q14, up 54%
versus the end of 3Q13
Total of 41.1 billion ad requests were generated from Opera´s owned and
operated properties, an increase of 92% from 3Q13
Signed a licensing agreement with Microsoft to make Opera Mini the
default web browser on Microsoft's Asha and existing feature phone
platforms
Announced a partnership with MediaTek where the Opera MaxT data-savings
app will be embedded into MediaTek's LTE System on Chips
· § Mobile Operators
Revenue of $17.0m in 3Q14, down 1% versus 3Q13
Operator cloud based license/data revenue of $16.0 million in 3Q14, flat
versus 3Q13
Operator active users (Opera Mini and Skyfire´s HorizonT service)
reached 131 million by the end of 3Q14, up 52% versus the end of 3Q13
Announced that Opera's Skyfire unit added streaming audio optimization
to Rocket OptimizerT
Signed sponsored WebPass contract with Idea Cellular, India's 3rd
-largest mobile operator
· § Mobile Publishers & Advertisers - Opera Publisher Partner Members
Revenue of $86.9m in 3Q14, up 193% versus 3Q13
Total mobile advertising impressions managed (including O&O) was 187.5
billion in 3Q14, up 9% compared to 3Q13
Completed acquisition of mobile video advertising platform company
AdColony
· § Desktop Consumers
Revenues of $13.9m in 3Q14, flat versus 3Q13
Desktop users reached 51 million by the end of 3Q14, flat versus the end
of 3Q13
· § Device OEMs
Revenues of $8.0 in 3Q14, up 17% versus 3Q13
Announced the launch of an advertising solution for Connected TVs
Guidance
4Q FY14 Guidance:
Revenue: Revenue for the company's fourth fiscal quarter is projected to
be in the range of $159m to $169m.
Adj EBITDA*: Adjusted EBITDA for the company's fourth fiscal quarter is
projected to be in the range of $36m to $40m.
FY14 Guidance:
Revenue: Revenue for the company's full fiscal year 2014 is projected to
be in the range of $485m to $495m.
Adj EBITDA*: Adjusted EBITDA for the company's full fiscal year 2014 is
projected to be in the range of $120m to $124m.
Please find the third quarter report (3Q14.pdf), third quarter press
release (3Q14_Press_release.pdf) and third quarter presentation
(3Q14_presentation.pdf) attached.
Webcast:
http://www.operasoftware.com/company/investors/webcasts/q32014
Or
http://embed.smartcomtv.no/88923F03-FD0B-4B1F-A4DD-14405D7A5A1C
Erik Harrell, CFO/CSO
Tel: +47 2369 2400
Petter Lade, Investor Relations
Tel: +47 2369 2400
About Opera Software ASA
Opera enables more than 350 million internet consumers worldwide to
connect with the content and services that matter most to them and more
than 130 mobile operators to deliver the very best possible internet
experience to their subscriber base. Opera also helps publishers
monetize their content through advertising and advertisers reach the
audiences that build value for their businesses, capitalizing on a
global consumer audience reach that exceeds 800 million.
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This Press Release contains forward-looking statements. These statements
include, among other things,
statements regarding future operations and business strategies and
future financial condition and prospects.
These forward-looking statements are subject to certain risks and
uncertainties that could cause our actual
results to differ materially from those reflected in the forward-looking
statements. Factors that could cause
or contribute to such differences are covered in the Opera Software FY
2013 Annual Report under the heading "Risk Factors." We undertake no
obligation to revise or publicly release the results of any revision to
these forward-looking statements, except as required by law. Given these
risks and uncertainties,
readers are cautioned not to place undue reliance on such forward
-looking statements.
*"Adjusted EBITDA", or Non- IFRS EBITDA, refers to EBITDA excluding
stock-based compensation expenses, extraordinary/one-time costs and
acquisition costs.