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Opera Stock Falls Despite Sales Beat
22 Aug
Summary
- Opera's stock declined 6.7% after its Q2 earnings release.
- Revenue rose 24.6% year-over-year, beating analyst estimates.
- Monthly active users remained flat sequentially at 288 million.
Opera's share price saw a decline of 6.7% this week following the company's second-quarter earnings announcement. The technology company reported that its adjusted earnings met analyst expectations at $0.33 per share. However, its revenue exceeded the average analyst forecast by $0.8 million, reaching approximately $178.1 million, a 24.6% increase year-over-year.
Despite a solid revenue increase and a 27% year-over-year rise in adjusted earnings per share, Opera's average monthly active users remained stagnant at 288 million on a sequential basis. The company did report growth in its advertising and query revenue segments, along with a roughly 25% increase in average revenue per user (ARPU).
Opera now forecasts full-year sales between $734 million and $742 million, a slight increase from previous guidance. While improving ARPU shows promise, the company faces challenges in user acquisition to bolster its long-term growth prospects.
