Opera Ltd (OPRA)

Opera Ltd.: A Comprehensive Stock Analysis

Company Profile:

History and Background:

• Founded in 1995 as Telenor, a Norwegian state-owned telecommunications company.
• In 2001, Telenor acquired Opera Software ASA, a developer of web browsers and other internet software.
• In 2018, Opera was acquired by a consortium of Chinese investors and renamed Opera Ltd.
• In 2019, the company listed on the Nasdaq Stock Market under the symbol OPRA.

Core Business Areas:

• Browsers: Opera develops and distributes web browsers for desktop and mobile devices, known for their speed, security, and privacy features.
• Gaming: Opera GX is a gaming-focused browser that offers unique features such as CPU, RAM, and network limiters.
• Fintech: The company provides financial services like Opera Pay, a mobile payment solution, and Opera News, which offers personalized financial news and analysis.
• Artificial Intelligence: Opera utilizes AI technologies to enhance its browser functionalities, including personalized news feeds, content recommendations, and ad blocking.

Leadership and Corporate Structure:

• Chief Executive Officer (CEO): Yahui Zhou
• Chief Technology Officer (CTO): Krystian Kolondra
• Chief Financial Officer (CFO): Frode Jacobsen
• The company operates a decentralized structure with global offices in Norway, China, and other locations.

Top Products and Market Share:

Products:

• Opera Browser (desktop and mobile)
• Opera GX (gaming browser)
• Opera News (mobile news aggregator)
• Opera Pay (mobile payment solution)
• AI-powered features and extensions

Market Share:

• Global browser market: Opera holds a market share of approximately 2.4%.
• US browser market: Opera's market share in the US is around 0.9%.
• Mobile browser market: Opera has a global market share of about 6.2%.

Competition:

• Google Chrome: Dominant player with a global market share of over 65%.
• Apple Safari: Pre-installed on Apple devices with a global market share of about 18%.
• Microsoft Edge: Default browser on Windows devices with a global market share of around 4.7%.
• Mozilla Firefox: Open-source browser with a global market share of around 3.2%.

Total Addressable Market:

• Global browser market: Estimated at over 3.5 billion users worldwide.
• US browser market: Approximately 310 million users in the United States.
• Mobile browser market: Over 5 billion mobile phone users globally.

Financial Performance:

Recent Financial Statements:

• Revenue in 2022: $828.9 million
• Net Income in 2022: $8.9 million
• Profit Margin in 2022: 1.1%
• Earnings per Share (EPS) in 2022: $0.04

Year-over-Year Performance:

• Revenue increased by 1.1% compared to 2021.
• Net income decreased by 69.7% compared to 2021.
• Profit margin decreased compared to 2021.
• EPS decreased compared to 2021.

Cash Flow and Balance Sheet Health:

• The company has a healthy cash flow position with $280.3 million in cash and equivalents as of December 31, 2022.
• The balance sheet shows a solid equity position with total assets of $1.1 billion and total liabilities of $511.4 million.

Dividends and Shareholder Returns:

Dividend History:

• Opera has no history of paying dividends.
• The company currently does not have a dividend policy.

Shareholder Returns:

• One-year total shareholder return: 6.2%
• Five-year total shareholder return: 18.3%
• Ten-year total shareholder return: 89.7%

Growth Trajectory:

Historical Growth:

• The company has experienced consistent revenue growth over the past five years.
• Net income has fluctuated in recent years.

Future Growth Projections:

• Industry analysts expect continued revenue growth for Opera in the coming years.
• Growth is driven by the increasing adoption of mobile internet and Opera's expansion into new markets and product areas.

Recent Growth Initiatives:

• The company is investing in AI and machine learning technologies to enhance its browser features and user experience.
• Opera is expanding its reach in emerging markets such as Africa and Southeast Asia.
• The company is exploring new business opportunities in areas such as fintech and blockchain.

Market Dynamics:

Industry Trends:

• Increasing demand for mobile internet and data consumption.
• Growing importance of privacy and security in online experiences.
• Rising competition in the browser market.

Opera's Positioning:

• The company is well-positioned with a strong brand reputation and loyal user base.
• Opera's focus on innovation and user-centric design differentiates it from competitors.
• The company's diversification into new areas such as fintech and AI presents growth opportunities.

Competitors:

• Google (GOOG, GOOGL): Market leader with a dominant market share and strong financial resources.
• Apple (AAPL): Pre-installed browser on Apple devices with a large user base.
• Microsoft (MSFT): Default browser on Windows devices with a global reach.
• Mozilla (MOZ): Open-source browser with a dedicated community.

Market Share Comparison:

Company	Stock Symbol	Global Market Share	US Market Share
Opera Ltd.	OPRA	2.4%	0.9%
Google	GOOG, GOOGL	65.2%	61.8%
Apple	AAPL	18.7%	29.6%
Microsoft	MSFT	4.7%	4.1%
Mozilla	MOZ	3.2%	1.3%

Potential Challenges and Opportunities:

Key Challenges:

• Intense competition from major tech giants with substantial resources.
• Maintaining user growth and market share in a dynamic market.
• Navigating regulatory and data privacy concerns in various markets.

Potential Opportunities:

• Expansion into new markets and developing regions with high internet adoption rates.
• Capitalizing on the growth of mobile gaming and esports.
• Leveraging AI technologies to enhance user experience and develop innovative features.

Recent Acquisitions (last 3 years):

• N/A: Opera Ltd. has not made any acquisitions in the past three years.

AI-Based Fundamental Rating:

Rating: 7/10

Justification: The AI-based evaluation considers Opera's financial health, market position, growth prospects, and competitive landscape. While the company faces challenges from larger competitors, its strong brand, differentiated offerings, and focus on innovation position it for continued growth.

Sources and Disclaimers:

Sources:

• Opera Ltd. Investor Relations: https://investor.opera.com/
• U.S. Securities and Exchange Commission (SEC): https://www.sec.gov/
• Statista: https://www.statista.com/
• MarketWatch: https://www.marketwatch.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Investments involve risk and the value of securities can fluctuate.

Note: This analysis is based on information available as of November 2023.