Opera Limited (OPRA) 19 Nov 202020 Q3 Earnings call transcript

Welcome to the Opera Limited Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to turn the call over to your speaker today, Derrick Nueman, Head of Investor Relations. ahead. go Please

us where joining our or evening Jacobsen. this Song Thanks are. this With on Frode CFO, you and have me depending Lin; for our morning, today, Co-CEO, I

the I everyone current the which will Such constitute and the remind inherently how expectations the be management. Private and call on Before Securities contingencies are statements in of of over to Lin, its economic like subject that the I are the today, call within expectations, about forward-looking meaning Song and conference beyond making statements competitive and Act. perceive and statements current to Reform economic, would company the other we results hand uncertainties control based Litigation environment, future to

statements be not cautioned future performance. these should of that guarantees are You

Harbor refer further for earnings may the You to in the company’s release Statement details. Safe

are different on use which non-IFRS today consolidated financial commentary adjusted including of Our EBITDA, that and also measures, investors prepared will from that the our financial financial an IFRS. We be use or believe non-IFRS tool prepared presented a are isolation our include considered for financial statements should IFRS. results to These with provide measures operating in in evaluating not for substitute as in and trends. accordance additional information ongoing measures based

up and on our forward. will and Frode highlights strategy; and call for to financial then forma financials expectations cover also posted pro Opera, of Lin, our update results finish reflecting historical With Relations Investor our will the co-CEO, operations microlending operational me includes and turn investments have We going retailer that unaudited who over Song supplemental our our that, information website who and and discontinued let on Nanobank. with

Song?

Yeah, sure.

to you thank report. everyone that thanks actually like joining say I So Lin. just hearing is us again this or Derrick. for Song would And yeah This

are for wait in showing still this able monetization recovering a browsers users core revenue that on we but Like feeling really Opera with and we were highlighted year nice being advertising showed Opera growth. the also search the to quarter business. the our last growth many back strength News. engagement think of others, par pandemic, and we I achieve So that period and year-over-year both the has to already same revenue led There's long very

course see that So compare categories XX% that to zoom has and that is -- by that will second able of if respectively XX% if be ads, those you quarter. you revenue with you and grown search in, also is the

and we fintech a margin EBITDA our as feel have beyond we general, great expectations are this want cost the revenue. trajectory. might achieved with XX% aren't margins pursuing of the European meaningfully that we instead margins. increasing clear be At business growth other and result, about of level. company discipline to opportunities initiatives in ahead the we recovery are even our have prioritize And growth fluctuate our So side. that Opera time, in generating even shown on investing meaningful any before adjusted that EBITDA well while still yet a we growing is we as our still We that attractive on near-term same

probably structure. we speaks lean our and also it's also of to been agility quarter's base the time about cost we to growth really this on thoughts we a however, view profile and feel the ourselves. our share have Opera, some good that So, result the since how speaking And of

browsers. of So at Opera Opera the is core

the this very have demonstrated we more system browsers. players decades, there niche-oriented good business independent, that two over is a room For is is that a for this default

many streaming tabs, through others. with WhatsApp, and recently like better Music spanning also we with innovative the integration examples from music very and have messengers are multiple of integrated management workspace Spotify, We YouTube

PC tailored GX another we example. browser great Opera for Our gamer, the is called

We and also revenue predictable brings growing browser users million streams very user-driven over this business have XXX now incremental nicely margins. and to and grown well very high

So about there. very core we business pleased are the

layer to top we as there a what strategy. is browser-plus refer So also our on as

have with several now times So entry that new used proven is is how even its we more, and and brand platform as to user-based browser launch the products an the web to it services. excellent power an

are having move is very over core growth really the our achieved nice past of that drivers proud the value where the to this accelerated we steady of and So years. from we

have having million of News XXX have markets. core our coming currently like Opera publisher including investments mobile users some content platform instance and player them the a like part biggest OPay, of become fintech also for payment platform. Nigeria's Some Nanobank, content and major emerging also been monthly recommendation exceeded Others now biggest business solutions; our Africa's AI-based for are

next about So excited significant the represent the very we when ahead, are look year browser beyond. potential can and the we for additional plus strategy growth that

background, at that the some recent talk and mind So with also the we in trends quickly developments. about

growth continued our user of We trend the third quarter. in

solid driven quarter. users. and across We platforms. Beginning million They increasing all browsers. XXX South core This have the also continue of average almost all compared by Africa, of XX product, Asia; growth the our Europe, second our the MAUs to with show was growth million key with regions very our

been September. in growing If million at browser has XX have gaming we quarter. year-over-year third the about particular, active results, year-to-date million the to reached is XX% times three X monthly look Opera PC have we you in our gamers That continues. and GX, And our up browser in trend

increase where in story where users in results XXX exceed product million to a strong our we seeing Africa, to the On quarter due relevance in and we also the mobile, we last call, similar relationships. are seen have telecom very

approximately growth browser grown Opera XX%, is News Opera become even We by are and exciting, into COVID-XX has news. The both in continued that have growing momentum user third around year-over-year. has from more MAUs the browser again move plus hub if second strong quarter, for a fueled the growth very if for quarter. local with where also strong its seeing which Android, XX% also critical has News, you offer mobile our we product, compare high-end And

mentioned before, already monetization, Opera adding platform making Opera revenue impacts. Opera despite content Hub every growing progress you COVID-XX the better with due also XX,XXX News the And sell-through Africa same where roughly publisher News and As stories is XX%, more year, with biggest if is increased finally, meaningful the last also the roughly with compare day. quarter users News that to inventory in

beyond a bit So have recovery into and near-term trend, we're a clear continued which fourth quarter the to tacticals. the also monetization getting seeing are also that very we broader the

continue transition offline-to-online better also over and will ability potential monetization benefit such to our in long-term markets, the from time. Africa Our developing as accelerating monetize to

reached that becoming in Google's So really on very more to Opera our top worldwide, speaks already is big example, For And pleased this material Opera of also programmatic next our News revenues long-term to to are initiatives, right? also we're one we XX inventory more again, it. see touching opportunity. has excited our But now. and even about

making browser in strategy, are XX Again, have progress plus the this more addressable our fits well within region. initiative We users fintech. we than where million significant European with

browsers, innovative the many potential around financial those our which really GMV Our XXXX in which very users for transactions This payment drive has of through purchases. us e-commerce point our of and to and services, online place e-commerce beyond. a to strong sale de becomes kickstart make growth major facto and in a position accelerating

pleased are first So later very we product we offering have as been we pay our buy now mentioned and result. Spain early even with testing in earlier, our the

will This European updated Our it are keep formally the our next launches on followed markets you launch several planned But there. steps be will product branding. progress in be XXXX. again, to we and on by in excited about we'll our very other

wrap So up. to just

look to the we our I'm As prospects. excited this into end of year truly about forward and XXXX,

of well Opera contributor offerings a significant could excited in material Our we News that and becoming initiatives cusp browser drive new do growth. believe continue about very on revenue are our of we the to

which that, to QX future me hand it results with also expectations. over talk about let So and our Frode, will

Lin. Song Thanks,

I'll a are third financial In get few about that the we present two I numbers, results. such have changes changes into Before our words made quarter, say affect we relevant. how strategic the the

creation first we exchange of business ownership the Nanobank in for stake joint previously announced where in contributed a business. was our microlending XX% the The

costs As of profit as a directly now consequence, excluded Instead, revenue attributable our previously microlending are post-tax from you historical business operations. all discontinued operating results. reported under along Fintech the with see our will reported former

To results our forma given to As today. today ownership are historical quarter large Nanobank's XXXX. promised, pro also we'll comparables, QX provide as of publishing financials we Nanobank by disclose operating continue

decision relevant quarter the to business. Our retail in discontinue other our was

ecosystems the a sales. for business concluded mobile around carry potential meaningfully our initiative this mobile in remember profit. limited exploring may You and we do opportunities to path the late intention contribute We with of that see not to to in credit and phone XXXX this now strategic that launched prepaid

As also costs are under operations. the as a retail revenue previously presented and reported consequence, discontinued

retail. of quarter million Now moving sequential third revenue a to million we now from microlending the XX% of quarter monetization. excluding results. recovered was quarter Revenue as compares $XX.X prior impact third for or This both to in the growth and $XX.X COVID to the

up $XX returning was month Advertising Trend XX% The sequentially. quarter, million, and Opera X% driven to quarter monetization with sequential vertical year-over-year growing of was News. search each year-over-year down up and Specifically the up in million return growth. $XX.X by sports and September improved the and of sequentially. was XX% the X% strength August from a year-over-year

other been flat $X.X relates with by This to profit has and revenue revenue million, professional through almost services low-margin tech reduced Year-over-year, OPay. to was decline relatively the was as million. impact this no primarily Finally, category $X.X sequentially. although

of $XX X%, marketing discipline sequential down million, expenses expenses. and year-over-year a operating to other Our around variable due increase XX% were but

while delta a $XXX.X positive of the Nanobank search benefited in shares represents result, second former margin, This fair the $XX.X adjusted million, driven quarter, we of the was was million. which values as microlending a strong increases to and the the transaction, is profit from high-margin in our advertising in continued largely gain The value As XX% of book by X% business. operations was EBITDA from at recorded less quarter. Nanobank $X.X the our namely recorded Post-tax income million revenue. compares net

underlying profitability Our positive cash strong where $XX.X at operating and collection. where quarter, driver, our million the was the biggest for flow

quarter our million, cash Everything million. outflows our microlending $XX.X were own that Nanobank up totaling business added $XX.X and repurchases to followed $X.X shares of million million. to the else the major in cash Our of $XX.X of positive

$XX.X net marketable ending cash quarter So $XXX.X reduced million. securities the total million, by and at

$XX announced X.XX million $XX.X million averaging we of buyback total In $X.XX program, end million additional of spend ADS, repurchases under ADS' of buyback year-to-date our leaving had repurchased QX, the at per our million $X.X terms of for a and program. share

to quarter. all slower our from with moving more of geographies, early metrics India we'll Now devote to is improving also scaling is impact forward, during represent upside close to given Mexico, and our levels; shareholders. going third importance in Indonesia to Nanobank to recovering, the the now the time recover investments which pace; they while continues nicely. still with and but at a Kenya pre-COVID COVID-XX

For post-tax to on compared XX% posted quarter profits forma a $X.X Nanobank X.X $X was up disbursed of the basis, pro EBITDA value. million. million quarter, revenue million Adjusted loans and in and the representing and total $XXX second were million $XX.X million,

scale quarter. Nanobank We levels versus expect to is on fourth reach With rapidly within that we expect see re-strengthening faster scaling to Nanobank reminder, has a pre-COVID As credit risk. to with profit scale, lending in we to XXXX. a trajectory the margins. of with revenue more And believe said, a profitable continue a prioritized

$XX.X a and generated EBITDA. in $XX As of million the revenue Nanobank XXXX, million reminder fourth quarter adjusted

XX.X% well and StarMaker payment continues doubling believe Nigeria grow other run year-to-date, potential. We payments OPay and and upside and seeing platform more of at beyond scale than elevated of XX.XX% OPay October, grow $X.X in can processed billion gross it January. that users from OPay, of StarMaker, as Further, growth StarMaker. million. momentum $XXX continues than soon, expanding tremendous holds three we offerings. year-to-date are XX% over rate to strong scale transaction expect also roughly growing and to its more its the to value be rates. platform OPay both a and to times continue on revenue have our believe an In Opera of will investments OPay annual its level

in improvements commentary, Now, to to trends. forward-looking moving our we see continue our business

continuing new to We and to initiatives user-driven for browser quarter news or positioned returned are from year-over-year double-digit in taking into account outperform and improvements for XXXX, further have the revenue and upsides growth in before growth our potential fourth projections.

five get Now in drivers. rates gains growth have some improvement to far key growth least advertising the back a better the User rate of expect bouncing third point monetization getting quarter specifics. and at continued we the versus fourth and Thus quarter. into year-over-year the search are in percentage and

Second, other to midpoint revenue previously contribution by flat $XX up X% to revenue should on as to the down year-over-year resulting profit the reduction. a quarter million discussed not at of leads will sequential quarter. Combined be this basis be fourth million the third though expect $XX to affected compared us

Additionally to line offset we and our much growth initiatives. fall search increased of will in we and expect the towards revenues the basically increase bottom to are the investments advertising putting

a adjusted expect margin As million such midpoint. $XX $XX representing at to XX% be the we EBITDA to million

XXXX The line to more normalized gains throughout expect factors: strong perspective monetization. QX acceleration entering from and benefit Beyond multiple excited we're user top From a made from we the we offline online to about XXXX.

for we'll additional of And would continued to assumptions we on as past XXXX a our baseline growth now on Still upside. potential around have for indicate approximately in also call, new result our to with the year, expectation representing of businesses is XXXX. initiatives. over acceleration be we'll for revenue is in similar core There had thought search helpful based consider see year-over-year we our from expectation range and relatively a conservative. we growth contributions revenue wide $XXX quarter rate advertising. hopefully XX% be million next full This guidance fourth While provide already it around

we as time For we expectations conservative amounts have rather contribution being to and included our as small of only been would progress. revenue add the initiatives

many the timing these much will the initiatives are fast how premature how and we the our In as of provide scale adjusted impact. ahead of of terms over EBITDA months to it's points specific a at early new stages. now very expectation will products determine spend Data

will we growth coming you've similar do ahead quarter. business search growing know To However, be what that our margin-accretive up our revenue revenue this expectations. wrap and growth in positive are and to advertising trends seen in users of

We are will very to the we investments and hold We're creation sharing focused potential great and build Opera's much future value strategic our opportunities about that excited look bigger drive we on believe way. something our for forward with to the along shareholders. story

can take questions. we now think I

from comes [Operator of of Instructions] Our line Lance question Vitanza first the Cowen.

the MAU historicals off I and the see was Congratulations per revenue way that rebounding. thank I you thanks. XXXX peak, We're Hi the on believe to guys, XQ the still providing over quarter. It's that MAU think pre-COVID good way. But revenue XXXX per by I -- when look $XX. for XQ at

eventually lower to would peak? think have we potentially second still to you revenue there. you cause again, before do some MAU concerns the But new So room a wave to dip COVID retake per hit that go

Frode here, I can maybe begin.

user on then we increased we're for have and trajectory past. a into inventory first, in that lower also Monetization seen the going what per you QX. say, still had have with and pleased than the seen we seeing is, we're activity, ads. basis our But what we've is more engagement what QX more So very in as

So think, quarter. the as the built base look to in benefit continue we over will that user we we this up assets ahead, from and I strength have

soon to will pre-COVID. was revenue as mix say too it's bit think user a the We also be diversified we pre-COVID. more now had same than economics But have per we a it when the

we technology $X relate And really mean is is thing to which in revenue, our to the user mind year-ago Lance, keep quarter, did base. million I almost of in this one Derrick. doesn't

QX. our revenue, be to search up at look going in it's and year-over-year you when advertising So

to monetization what Opera going So browser from than ago. year higher did News from actually the or we we're a do

some in yes, So be I its we think user-driven because we actually its top services -- hit or the doesn't peak above is we on here from stuff should have the line it work did. headwind peak that But QX. above professional

I the I'm the at out numbers Well, equation, taking I that's technology mean, licensing of think, great. looking I'm Derrick. the

base expanding point economics. your where recovery now got so per And that in your opportunity we've this user you've my is you're and look user think I got

would a So just picks could of that flowing revenue incremental you of as that right? is be the be that, wondering continues profile should on revenue up sort bottom of I of I'm quite comment line? what most bit the think margin that monetization incremental if that as a there little the the additional to there Is high. incremental anything improve. Presumably quite margin bit on should maybe would against be kind or cuts to

think correct. I are you

our revenue and incremental existing very, If product from to browser you flow-through for at revenue advertising high news profit. in isolation search very look and

Yes.

So, okay. Thanks.

the to look have $XX modeled the million is coming you that's start guidance bit bit a the we quarter. margin little all of surprised EBITDA we on there. margin into But back, most over map. QX been So little has than better what a EBITDA revenues when which $XX the already million me the

you quarter. did XX% so margin this And

than think past You're guiding more couple to XX%. I seen over years. That's consistent the of we've

we past? continue have that can as we maybe been I you expect I recognize that think you lot think of to of Or margin volatile that mean, as the sort a sort businesses, going quarterly be new new some that plane in about new EBITDA should So there's as on as trajectory? about guys or it it's will XXXX,

the compared our that in So QX. EBITDA guide our guideline be expect towards if QX -- tracking now The gave might QX to reason to did for we QX. we margin also by newer in initiatives revenue it the and more still to we would increased I'll of in have we are saying, invest we end between nothing sort of begin and and we that

Okay.

my But the or get from retail in addressed is I talking was and full just million-ish year bit cutting phone the me you're the the you'll be little that just words, my clear with this $XXX on on And that apologize, last phone million revenue end. that $XXX ops? guide excluded out. had from I is other I'll about get this so But $XXX my problems a back that you in let because and continuing then In Sorry, of queue. question report for year the to just compares that million? if

Correct.

it's up this but year's that year-on-year, XX% so reflects XXXX. or XX% from about still growth it's obviously then And not depression, year-on-year XX% I up COVID about mean

my guess growth that perhaps trying unaffected that my is, model of growth the I more the I'm question mean XX% So indicator do over XXXX I do in is XXXX what think to rate? is of for rate reliable sort longer-term a about I just here?

understand. I No,

that we about revenue and more year-over-year then, normal -- a back question. let's think of there growth pointed per more growth as COVID advertising XX% really is user I XXXX, even beginning of when And growth let that steady-state than -- expected. of above think we are user me we our fact accelerated still the to in Since though what still have just we impact levels we when sort mid-single-digit talked on course, your growth baseline more in of to to speaks basis search out the began a scenario. we you was normalize. and say now left The

made the Nanobank as indication are and baseline we to changes comment we retail. realized with make So, providing we wanted is the $XXX that final a -- yes, million I we when as

Of we our that. -- than also greater ambitions course, talked about are as we

Okay. Thanks your Appreciate time. guys.

of from Alicia Citigroup. next comes of the question Our Yap line

monetization. management. and advertising about for morning evening questions. Thanks good follow-up I to and wanted taking Hi, ask my overall the good

of to the year. the to users that could the three profile, of Opera First, that combination growth, it follow in new this get attract the with group, to day. MAU six new little new growth your road might way, And news will expectations vertical be some look advertiser terms And the when down understand what monetization And lag. contribution Opera just profile on especially revenue. What advertising the on within ad right? remind your a at into long the the right, along the the how industry But a right then are bit some also you monetization we the could could user potentially reason us user age share what these I board. effort coming current trying right you. from if they News, Thank coming because of of usually spending user is as these us type we News new wanted now? percentage XX% for you -- for next user type loads are months And of maybe of per

Yes.

Lin it's here. So, Song

try then specifically just to I'll add. that. And -- within the on think briefing users can give and some I also Frode

are the I So, key of still South strong But of is major growth Asia. Kenya, the regions growth to that however, would market very the fundamental is in we are I for extent would it cooperate is typically with of which still say lot say new primarily in probably Africa, also initiatives. there our Africa most South especially, in for they that users Nigeria, those traditionally core that a are where operators Africa. our that's still still I characteristic news some primary in now and actually the also think

XX% point that growth believe quarter sorry those remain I drivers probably you for correlation that major quarter-to-quarter year. base. with would also point last just like our compare -- the if revenue to ad So we you monetization, and -- growth to user XX% reported that same it see strong about news the comes When we out revenue-wise

it user of So, the higher already. amount strong absolute a already than growth very user two much like of is sort the growth of times growth

compared as almost user Africa, right? region factor all in would much So, still around we is average capability of regions. the monetization still I maybe comment limiting still that the I Africa think that for to are lower that the in now -- other know with So, in in one-tenth mind, that

accelerating region waiting see in of still we'll continue it. grow that general hopefully and when think for growth time even that to where I we So, are

level So, on you and the maintain user on around description very high growth I especially definitely growth. we Yes. sector. will see perhaps what super compared still a the revenue, perhaps the model that's we But monetization higher of ad hope we think on on news how the could maybe pure the news with potential that increase

maybe I the would that comment like that's have. So,

on Any of that industry potentially next to color the some try vertical could year? into we penetrate

Yes.

like So, for I more the guess, think gaming, it's major of year Africa it -- revenue. what will world, that is is I you the high bit that part in also also special, mobile think say say of So in we see this of most I right? a actually see is instance ads level maybe the to one in gaming part

much for are almost mobile but case hit ad many right? it's Africa, still online. well And because places is in really So among we a other bit almost right? now I not focus growing lot doesn't we So, we Too there's reaching dependent to online EPL our of So would highly But use we partly aggressive the than still like especially in terms on next, content that are that user this place, transition feel offline spend we're COVID call more place least will I us Premium this stronger see continue probably will operators like guess So, the that growth English in a trend of from right? deal at say Africa that's League for is are we on much is because not accelerating verticals. benefiting a Africa transition would online think And actually or offline continues seeing in see online Because to see actually half year online. still to actually And we're Africa, are so. with in to by majority have than some too much faster prediction others, it's Europe year on say even more next almost offline gaming than have traditional places. year the to other places what the better probably does the than -- more the move right? more And similar Because I instance, now, I offline would also like say my far a like will like possible, see compared a operator-based be we affected transition closed. because service and Africa. that, be still gaming, in for most it I from everybody the it monetization. that why of transition can sports that even actually from bit the

Thank you, Song.

line comes of Capital. question of Our next from Godin the John Lake Street

Hey guys. Congrats for thanks on the taking my question. quarter and

seeing. bit about, going sticky news this forward? cohort on users can First, the confidence and kind of if wondering trends you platform And of this how utilization new is just could a what browser of thinking peel continue I was the been the you've that the onion that And forward... on kind think giving both the point you that you

Yes, sure.

for can't before users we home, think quite at new they I mainly the offering growth to But becoming really time a -- because like I that, clearly, actually they the -- on see a of rely for lot a all I'll see more so lot more understandably story in to of we And source much also it they're because I'm think, guess spend get find what in and just they anywhere I the more if using try from frequently. has I which actually mobile out the figures users it's more bit if lot what point. same to not I general, see so on COVID like So relevant time that, can't it user they them, both them use -- is desktop more would that Europe, more right? because during a that so same just apologize I the XXX% use we Africa very definitely then heavily. So yes, just user online actually than are online is hear people sure to you as I'm go think is not natural since browser using it

Of from we data been them that. also it. course, triggers, it's metrics increasing on News, the which benefiting to launch operator many worked help user program partially also enable all with the program to have based same the as Opera And

anything I moment them for done say to -- Again will not year. it's you have continue predict, very probably difficult becoming pretty some anyway. of much think without some just feel are to shop. used I some the the sports will offline trend but at user being eventually think habit both be go majority it because to And gaming it almost think do you all actually like for next back if way that online, change gaming because, temporary. it's So I off-line. doing moment It's you're I until the right? I like in hard used definitely the time specific very But to really will online actually ask always the So not part people I instance, actually getting would that things user the online, that, getting it's

to really used on same that less see to the around a likely news the you so buy app, newspaper yes, getting you're anymore. for So it's if news

are be yes, see some not like they we but now. used are especially so before, the are accelerating speaks There to trends people used moving where the level, from now trend offline places at will will so at it there be Africa, But fluctuations. in So to normalization. definitely high the

investment about and priorities then XXXX. for have in versus That's as about markets thinking of such into expanding weighing kind new the else you other second, do some working current How helpful. guys the initiatives, of anything investment new and and coming And quarter your you in initiatives OList into potentially think kind on? of been

Sure.

online, So, But, the users. a doing well, when since say, a combination right? that to or and are it's mentioned best that due for that, OList, the be I things there of see offline, I all -- that more -- think, much less, I'll it's to even our for timing we would kind because say those comment, online, right? are So, invest So, will between because that’s online, more probably which think for it's about best realistic the now offline frequent comes now COVID discuss of probably level, on that. on which of now sales, all, especially would that, right? you really comment I we not not to still there, So offline to we bit, say on focus I focus pretty not means but be think, online, for OList maybe responsible also I -- will say will high less probably timing right? right? investment, almost Frode of it's continue heavily that, to I and is that a more First few will the combination it can So, see, instance, that of also more that impact, too for lot

see do position Another point very Africa, I would in openings of good already very our strong Europe. is maintain we say top in on that,

really almost comment desktop that, is how desktop. COVID, on desktop of, X there's service to that of growth on it times has And see also partially, has strong a everybody right? is, before. seeing important course, have we that. Just E-commerce particular very for than Because -- of

European why around our So will that's focus we are saying that probably also also fintech. our

as But We the up, an opportunity related, too real with that many other into places, to the know. because course, -- good of opening just the pandemic. e-commerce/fintech we done feel have are now partly it's of opportunity grasp. you in Europe fintech And not service

So that my comment. be will

Great. you, Thank guys.

[Operator Riley Securities. line question B. comes Instructions] Lee the Krowl of from of next Our

questions. Thanks on minor for my A some of taking details. just kind few Great.

guidance. the of that second the any Europe. current in kind we're First real guidance impact? time? lockdowns for lockdown assumptions in we've seen know Are to I guidance on Does QX of see this reflect, wave have perhaps, dynamic elements starting one any your

based Hi, the Lee. on data we that It's very latest a forecast have.

couple back it's So a just days of time. in

So reality is it as it's based on now. the

asking awareness and to is, investments growth? investments, you both in into QX spending? product-specific guess, the of front And Could perhaps and operational or break headcount you building there And, capacity incremental focused are building marketing fulfill through I I'm is and these scale Okay. reason on and itemize XXXX. specifically investments kind are maybe the then, down where more or brand investment on

Sure.

investment. So our million look bulk additional the up And implicitly of in when is and that to you staffing and $X $X at million QX, of guidance marketing. between money there's personnel

where see two are will primary the those you areas So it.

Got it.

Okay. as regards And around such then, assumptions that travel? And then, for ad secondly, when verticals year, the we the guidance impacted return in spend from next to think with guidance. about about could maybe critically you a talk

for a new of guys what it magnitude Would a revenue and potential just wide orders of you combination the are growth from and and or initiatives Could potential range be sort there what is there's you of Is growth. announced are of fintech highlighted from, new the haven't are. expect it specify mix trying figure there would what yet? or fintech where the initiatives? solution contributing growth out You initiatives perhaps kind OList, fairly products to new just you that growth scenarios I'm of growth solution? to maybe rank from most they to come that specifically

Sure.

once much beginning we're for verticals. compare of on for we at But mobile and quarter on time user would increasing specifically say, If for related growing. the spent and getting course, It's, we expectations. will testing. the activity user initiatives, too is per for that than and to our of unit lower see just on be versus of economics, grown, question revenue talk seen first a to work quarter, look the time trends stable course, scale. And the then, the to point we mobile. around numbers to always search we revenue and at footprint the the pricing faster we're predominantly is we say recovering potential than pretty last unit I hard user same bit When basis And engagement Opera the we advertising is now to this a see see So, we is about have want in ahead. from reason how we something activity that last as News And search cautious sources. how per as we advertising PC but is still that monetization per these more we in wide we look now impacts of year. pre-COVID us Overall, this have specific with related say year a which range are going be is happy geographic with

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last Got me. question for then, And it.

guys, in You press outside highlight release, investments of cetera. in of et kind the operations select your kind StarMaker, OPay,

to of any to any given points you in conversely, XX Just would of the incremental of or investments, outside next in would solid assets any in make anticipate these call it, the investment inflection those kind months? monetize businesses, expect these you

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taking Got it. for Thanks guys. questions, my

right. All

was any floor question. over back to or gentlemen, and Lin additional final for Song to remarks. And that the our closing turn ladies like I'd

quarter, just No, but And we very we for QX. think will continue I I have business our some good also hopefully think higher a both maybe the even and healthy of core for expectation this have the XXXX, trend last new comment initiatives. in be that, it

would thanks the supporting again, I for just expectations. us. we'll think say people perform, that beyond hopefully And like continue I all like to So to to and

for you us. So, joining thank

conference call. And thank you, ladies and gentlemen. This does conclude today's

disconnect. You may now