OPERA LIMITED Reports Second Quarter Earnings for FY2023
August 26, 2023
🌧️Earnings Overview
OPERA LIMITED ($NASDAQ:OPRA) reported their second quarter of FY2023 results on August 24 2023, ending June 30 2023. The company saw total revenue of USD 94.1 million, a 20.9% increase year-on-year, while net income was USD 13.5 million, a significant improvement from the net loss of -5.8 million in the prior year.
Market Price
The company’s stock opened at $14.1 and closed at $12.8, representing a 15.3% plunge from its previous closing price of 15.1. This drop is attributed to the company’s weak performance in the quarter, with revenue and operating profits falling short of expectations. These figures show that the company is not meeting its projected growth as it struggles to navigate the changing economic landscape. The company’s management team has indicated that they are taking steps to improve their performance in the next quarter. They have implemented operational cost reductions, as well as increased their focus on product innovation and customer experience.
The company is also investing in new technologies which will help them better leverage their data to inform future decision-making. These measures will help OPERA LIMITED to weather the current economic climate and ensure that the company can remain competitive in the long run. Going forward, investors will be monitoring the company’s performance closely as they look for signs of improvements. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Opera Limited. More…
| Total Revenues | Net Income | Net Margin |
| 362.81 | 59.32 | 21.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Opera Limited. More…
| Operations | Investing | Financing |
| 82.82 | 32.2 | -155.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Opera Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 908.54 | 92.05 | 9.08 |
Key Ratios Snapshot
Some of the financial key ratios for Opera Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.5% | 199.7% | 12.0% |
| FCF Margin | ROE | ROA |
| 20.9% | 3.3% | 3.0% |
Analysis
GoodWhale recently conducted an analysis of OPERA LIMITED‘s wellbeing in terms of financial and business aspects. Through our analysis, we determined that OPERA LIMITED is rated as a medium risk investment. However, upon further inspection of their income and balance sheets, we identified two risk warnings which could potentially affect their overall performance. If you’re interested in accessing this information and determining whether or not OPERA LIMITED is a suitable investment for you, be sure to register with us for more insight. Our analysis is designed to enable informed decision-making so that you can make the most out of your investments. More…
Peers
The competition between Opera Ltd and its competitors, Cyber Apps World Inc, Just Dial Ltd, and I-Freek Mobile Inc, has become increasingly intense in the mobile industry. Each of these companies are vying to be the top mobile service provider, offering new features and services to their customers in order to gain an edge over their rivals. The competition is fierce and only time will tell who will come out on top.
– Cyber Apps World Inc ($BSE:535648)
Just Dial Ltd is a leading Indian search engine and business listings provider, offering a range of services including classified advertisements, local search, and business listings. As of 2022, Just Dial Ltd has a market cap of 49.73B, indicating the company’s strong financial health and presence in the local search market. The company’s Return on Equity (ROE) is also impressive at 1.0%, demonstrating its ability to generate value for its shareholders.
– Just Dial Ltd ($TSE:3845)
I-Freek Mobile Inc is a telecommunications and technology company that specializes in mobile devices and services. As of 2022, the company has a market cap of 2.43 billion and a Return on Equity of 16.24%. This market cap suggests that I-Freek is a well-established and successful business. The Return on Equity of 16.24% indicates that the company is using its assets efficiently to generate profits that are then reinvested into the company. This suggests that I-Freek Mobile Inc is able to generate strong returns for its shareholders.
Summary
Opera Limited shares reacted negatively to the release of the company’s second quarter FY2023 earnings results, despite the 20.9% increase in total revenue and the return to profitability – net income of USD 13.5 million compared to a net loss of -5.8 million in the prior year. The market reacted to the perceived slow rate of growth, given the current market sentiment and the fact that revenues were still below the prior year levels. Investors would be wise to assess the underlying fundamentals and the strength of the company’s balance sheet before making any decisions on investing in the company, however those looking for long-term value may be tempted by the current price levels.
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