Opera Ltd (NASDAQ:OPRA) Q3 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 08:00 am ET

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Opera Ltd (NASDAQ:OPRA) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day everyone and welcome to Opera's Third Quarter 2019 Earnings Call. [Operator Instructions].

I would now hand it over to Mr. Derrick Nueman, Opera's Head of Investor Relations to open the call.

Executive
Derrick Nueman

Thank you and welcome to Opera's third quarter 2019 earnings call. With me today, I have our CFO, Frode Jacobsen; and our COO, Song Lin. We are really excited to be hosting our call from Lagos, Nigeria, which is the largest country in Africa. We have a strong presence here and significant growth opportunities, including browser, Opera News, advertising, classifieds and microlending, as well as our investment in OPay, a company we incubated, which has had an impressive growth trajectory, already becoming Nigeria's leading mobile payment and motorbike ride-hailing service.

Before I hand over the call to Frode, I refer you to the Safe Harbor Statement in the company's earnings release, which also applies to the conference call today as management will make forward-looking statements. Our commentary today will also include non-IFRS financial measures. We believe that the use of these non-IFRS financial measures provides an additional tool for investors to use, in evaluating ongoing operating results and trends. These measures should not be considered in isolation, or as a substitute for financial information prepared in accordance with IFRS. Reconciliations between IFRS and non-IFRS metrics for our reported results can be found in our press release that was issued earlier today, a copy of which can be found on our Investor Relations website.

With that, let me now turn over the call to Frode.

Executive
Frode Jacobsen

Thanks Derrick and good morning, afternoon, and evening everyone. We are very pleased with our strong third quarter results. Our growth is accelerating, as

we continue to execute on our strategy. We are leveraging our strong brand and large user base of more than 350 million monthly active users to grow new opportunities beyond the browser, including news and content, fintech, classifieds, and a few initiatives that we haven't yet announced. These efforts, including the investments we've made in our business, led to year-over-year revenue growth of 119% in Q3, compared to 55% last quarter, and exceeding the top-end of our guidance range. This has positioned us with a strong momentum going into Q4, and as we enter 2020.

Before going over the other highlights of the quarter, I want to give some color on our leading position as a global consumer internet company. While Opera is not a well-known brand in certain markets like the U.S., we have a massive user base in Africa, Europe and South Asia, and a corresponding high brand awareness in these regions. This enables us to launch and scale new offerings without the significant user acquisition and brand building costs that many other companies would face, in turn, improving our chances of success. Further, we have a strong track record of fast execution, allowing us to quickly determine if our initiatives are working, or if we should focus our resources elsewhere.

Now, let's review the highlights of our