Opera Software Shows Strong Financial Results Q1 2012
When you look closely at the companies producing the top 5 web browsers in the past years, you will notice that there are two underdogs competing with three heavyweights. Microsoft, Google and Apple are billion Dollar companies. Mozilla and Opera Software on the other hand had revenues in past years that came closer to the one hundred million mark.
Opera software has just published the company's financial results for the first quarter of 2012, showing a strong financial gain in comparison to the first quarter of 2011. Operational highlights include:
- Desktop users increased by 11% to 60 million by the end of 1Q12
- Opera-branded Oprea Mini users reached 168.8 million users, up 65% over last year
- Co-branded Opera Mini users reached 31.1 million, up 129% over last year
- Mobile advertising impressions grew by 83% to 86 billion impressions
- Revenue in 1Q12 was $46.9 million, up 28% from 1Q11
- Total operating costs of $34.6 million, up by 19%
- Profit for the period was $6.6 million, up from $4.1 million in 1Q11
When you analyze where the revenue is coming from, you notice that the biggest chunks are generated by Opera desktop consumers and Operators. Desktop consumer earnings rose from $12.6 million to $16.7 million in one year's time, while revenue from agreements with operators dropped from $12 million to $10.4 million. Two other strong revenue types are from device OEMS, which rose from $5.8 million to $7.8 million, and mobile publishers and advertisers, where revenue almost quadrupled from $1.7 million to $6.9 million in 1Q12. Opera's stock price rose by 3.93% on the Oslo stock market after the numbers were revealed.
Opera without doubt benefited from the rise of Internet-ready smartphones, and the increase in mobile advertising that naturally went with it.
You can download the quarterly report from the Investor relations page over at the official Opera website.
According to Opera Software, the company's key operational priorities include the following:
- Sign up additional leading operators and grow active users of Operaâ€™s existing and new products and services with existing operator customers
- Grow revenues and users of Operaâ€™s mobile consumer products, particularly on the Android smartphone platform
- Increase revenue from mobile publishers and advertisers
- Increase Operaâ€™s position with top mobile phone OEMs and chipset manufacturers globally to drive greater distribution of Opera's mobile products
- Grow Operaâ€™s desktop user base, particularly in Russia/CIS
- Build on the momentum Opera has with major ConnectedTV manufacturer
- Increase Opera's overall profitability and margins.
Even though desktop is Opera's strongest source of revenue, the company aims to capitalize more on the mobile market. Judging from the impressive revenue growth in mobile advertisement and smartphone use in the world, it is an understandable position.
Opera may not be a multi-billion Dollar company, but it is far from giving up the fight against the behemoths. Its strong quarterly results, and an impressive quarter by quarter growth, show that the company is doing very well in the sectors it is operating in.Advertisement