Opera Limited, the Oslo-based internet company renowned for its web browsers, has reported a robust start to 2024, with first-quarter financial results that surpassed previous expectations and prompting the company to elevate its full-year outlook. The firm announced a 17% year-over-year increase in revenue, reaching $101.9 million.

The increased revenue performance was complemented by a solid adjusted EBITDA of $24.9 million, maintaining a 24% margin. This growth comes amidst a high rate of innovation within the company, particularly in the area of artificial intelligence (AI), where Opera has been integrating AI features that allow users to run large language models locally on their machines.

Opera’s co-CEO, Lin Song, highlighted the company’s rapid advancements in generative AI technologies, attributing much of the success to Opera One, which offers an integrated AI experience. He also noted significant growth in user engagement, especially with Opera GX, the company’s gaming browser which reported a 6% increase in monthly active users (MAUs) to 29.5 million.

The increase in users, particularly in high-average revenue per user (ARPU) regions such as North America, Europe, and Latin America, has been crucial in driving this progress. Conversely, ARPU growth in emerging markets saw less impressive developments, showcasing the mixed geographical outcomes of the company’s strategies.

Opera’s financial resilience was supported by solid operating cash flow of $31.0 million, which has funded significant technological investments and a substantial semi-annual dividend payout of $0.40 per American depositary share (ADS), totaling $35 million. The strong cash position underscores Opera’s capability to fund ambitious expansions while rewarding shareholders, staying aligned with its growth strategy.

The relationship with Google also remains robust, with the tech giant renewing its search agreement with Opera until 2025 under the same terms as before. This extension is indicative of the reliable revenue stream from search services, which grew 14% year-over-year.

The company’s approach to diversifying its revenue sources is further evidenced by the performance of its Opera Ads platform. Advertising revenues, driven by high browser usage and efficient monetization strategies, saw a 21% jump from the previous year, contributing 58% to the total revenue.

Looking forward, Opera has adjusted its full-year revenue outlook, now anticipating growth of 16% over the previous year at the midpoint of the guidance range. This adjustment reflects the company’s confidence in maintaining a strong performance trajectory through innovative product offerings and market expansion strategies.

As Opera continues to leverage cutting-edge AI technology and robust platform strategies to provide superior internet browsing experiences, its financial outlook appears promising. The company’s commitment to continuous innovation and strategic partnerships positions it well for sustainable growth in the evolving digital landscape.