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Opera Software Fourth q quarter 2008

A note from our lawyers This presentation contains and is, i.a., based on forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward forward-looking looking statements. statements Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” p or “continue”,, the negative g of such terms or other comparable p terminology. gy These statements are only predictions. Actual events or results may differ materially, and a number of factors may cause our actual results to differ materially from any such statement. Although we believe that the expectations and assumptions reflected in the statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievement. Opera Software ASA makes no representation or warranty (express or implied) as to the correctness or completeness of the presentation, and neither Opera Software ASA nor any of its di t directors or employees l assumes any liliability bilit resulting lti ffrom use. E Exceptt as required i db by llaw, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations. You are advised, however, to consult any further public disclosures made by us, s ch as filings made with such ith the OSE or press releases releases. This presentation is for information purposes in connection with the Opera Software ASA 4Q08 presentation only. The presentation is not an offer to sell, or the solicitation of an offer to buy, any securities. securities

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Agenda 1. Highlights Erik Harrell, Harrell CFO/COO

2. Financial review Erik Harrell, CFO/COO

3. Operational update Business, Consumer Jon S. von Tetzchner, CEO

4. Q&A

4

Operational highlights: 4Q08 + YTD 2009 Priority Areas

Overview

Operators

Vodafone signed Global Frame Agreement with Opera across multiple product categories and geographies Introduced Opera p Turbo – targeted g at operators p and OEMs Opera Mobile and Opera Widgets on KDDI's new mobile phone lineup

Mobile

12 new phones with Opera pre-installed, including 2 new phones with Opera Mobile and 10 with Opera Mini Opera Mobile shipments pre-installed in 4Q08: 7.3 million

Devices

Opera introduced on ASUS Eee Top PC Announced Nintendo DSi gaming device with Opera Alpha Networks and ZyXEL introduced set-top boxes with Opera

Desktop

Desktop users grew by 17% in 4Q vs. 3Q (up 67% from end 2007)

Opera Mini (consumer)

20 million monthly users of Opera Mini in January 2009 (up over 160% vs January 2008), which generated over 7.6 billion viewed pages (up over 325% vs January 2008) and 122M MB of data traffic Y h ! selects Yahoo! l t Opera O Mini Mi i for f revamped d Yahoo! Y h ! Mobile M bil solution l ti

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4Q08 financial review

2008 Financial highlights Priorities

4Q status report

2008 status report

Revenue

MNOK 157.0 (+69% vs 4Q07)

MNOK 497.1 (+58% vs. 2007)

EBITDA*

MNOK 35.7 (MNOK 12.2 in 4Q07)

MNOK 98.0 ( vs. MNOK 25.8 FY2007)

Operating Cash Flow

MNOK 69.0 (MNOK 5.3 in 4Q07)

MNOK 149.7 ( vs. MNOK 38.9 FY2007)

* Non-IFRS EBITDA excludes stock option cost

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Financial Review

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4Q08 financial review MNOK

4Q 2008 4Q 2007 Q on Q

2008

2007

08 vs 07

Desktop +

41.9

19.3

117%

116.3

67.1

73%

Internet Devices +

115.0

73.7

56%

380.8

248.4

53%

Total revenue =

157.0

93.0

69%

497.1

315.5

58%

Payroll and related expenses -

88.0

58.5

50%

296.5

215.1

38%

Stock option costs -

2.3

1.1

118%

8.8

8.4

5%

Depreciation and amortization -

2.5

1.7

42%

8.3

6.5

28%

Other operating expenses -

33.2

22.3

49%

102.6

76.6

37%

Total expenses =

126.0

83.6

51%

416.2

304.6

37%

EBIT

30.9

9.4

80.9

10.9

Net Income

31.1

13.6

89.9

13.2

EPS (NOK)

0 26 0.26

0 12 0.12

0 75 0.75

0 11 0.11

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4Q08 financial review

K financial Key fi i l figures fi Operating revenues (NOK Million)

EBITDA* (Non-IFRS) (NOK Million)

160 157

35

140 120

36

125 113

100

25

26

103 93

80

82

21

15

16

75

60

61 48 8 48 8

40 20

12 12

65

52 53

10

-2

40 38 25 22 23

30 28

7

5

-5

3

1 -2 -1

-3

-1 1

5 2

3 -5

-6 -12

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08

-15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08

* Non-IFRS EBITDA excludes stock option costs

4Q08 financial review

Revenues: 4Q08 Area

Comments: Revenues (vs. (vs 4Q07)

Business

Operators: Strong growth in Opera Mini license revenue, driven by operator active user growth Mobile and Device OEMs: Large increase in revenue from existing and new customers

Consumer

Opera Desktop: User growth up 67% since 4Q07 Strong growth in Opera Mini revenue streams vs 4Q07, with Opera Mini users up 160% since 4Q07

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4Q08 financial review

OPEX development d l t OPEX (NOK Million) Payroll

140

Stock Options

Depreciation

Other OPEX

Non recurring costs

OPEX comments 4Q08 vs 4Q07 •

Payroll cost up 50% Headcount growth worldwide of 38% since 4Q07 • Expect quarterly payroll cost/head to be slightly higher in 2009 versus 4Q08 •

120 100 80



Stock option* costs up 118% •

Impact of Opera stock price

60 •

Result of investments in worldwide and Opera Mini infrastructure

40



20 •

0

Depreciation cost up 42%

Other OPEX up 49% Expect other opex/employee/quarter in FY2009 to be generally comparable to 4Q08 •

*Fair Value cost in 4Q08 was approximately 2.1 MNOK

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4Q08 financial review

EBITDA d development l t 4Q 2007 / 4Q 2008 (NOK Million)

80,0

Comments on EBITDA development YoY*

70,0

Revenues up MNOK 64.0 60,0

! !

Desktop + MNOK 22.6 Internet Devices + MNOK 41.3

50,0

Payroll and related expenses up MNOK 29.5

40,0

!

30,0

! !

20,0 10,0

Engineering Sales and Marketing globally Overall headcount up 38% vs. 4Q07

Other expenses up MNOK 10.9 EB BITDA Q4 2008 8

Other

Stoc ck option costs s

Payrroll and related d

Revenues s

EB BITDA Q4 2007 7

0,0

* Year over Year, Year 4Q 2008 vs 4Q 2007

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4Q08 financial review

St Strong capital it l structure t t Balance sheet (MNOK)

Balance sheet highlights g g

900 800 700 600 500 400 300 200 100 0

Cash and cash equivalents

Metric

4Q08

4Q07

Cash

MNOK 564

MNOK 467

NWC*

MNOK 9

MNOK 17

Equity

MNOK 598

MNOK 533

Current assets

Fi ed assets Fixed

31.12.2007

31.12.2007

31.12.2008

* NWC is defined as Total current assets excluding cash and cash equivalents i l t minus i T Total t l currentt liabilities li biliti

Total Equity y 650 600 550 500 450 400 31 12 2007 31.12.2007

31 12 2007 31.12.2007

31 12 2008 31.12.2008

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4Q08 financial review

St Strong cash flow fl 2008 Operating cash flow: MNOK 69.1 in 4Q08 p g cash flow : MNOK 149.7 in 2008 Operating

Cash Flow highlights g g

200

4Q08

4Q07

Operating cash flow

MNOK 69

MNOK 8

Investments

MNOK -5

MNOK -1

Financing*

MNOK -8

MNOK -1

Cash balance

MNOK 564

MNOK 467

Millions

180 160 140 120

100 80 60 40

* Opera Software bought back 695 100 own shares totaling 9.5 MNOK in 4Q08

20 0 2007

2008

Operating cash flow 2008 vs 2007

4Q08 financial review

Operational focus FY2009 Grow revenues across business segments Be mindful of macroeconomic environment Invest and increase headcount, while being vigilant on costs F Focus on operating i cash h flow fl

Note: This does NOT constitute financial guidance *Excludes stock option costs

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4Q08 financial review

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Key strategies to achieve goals: Revenues Business area

Consumer area

Continue to focus on top mobile operators and OEMs

Aggressively grow Opera Desktop and Opera Mini users in top ten target geographic markets

Grow operator-branded Opera Mini active users and win new operators with widgets solution

Leverage Opera Link and increase value proposition through new features

Continue to focus on top p consumer electronics OEMs

Monetize rapidly p yg growing g Opera p Mini user base

Hire enough top quality sales, marketing and engineering people and increase productivity to drive growth

Increase third-party distribution channel share of Opera Mini users

Note: This does NOT constitute financial guidance

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4Q08 financial review

Key strategies to achieve goals: Profits Business area

Consumer area

Focus on top customers and opportunities

Prioritize most strategic features and functions

Continous alignment of engineering planning p g relative to p projected j demand

Optimize headcount growth and priorities

Continue to: • build and sell more standardized products and SDKs • build easily customizable products for operators

Constantly monitor efficiency of Opera Mini hosting operation

Note: This does NOT constitute financial guidance

Operations Update

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Opera’s vision

Opera’s O ’ vision i i iis to provide id the h b best Internet experience on any device

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This is Opera Software The world’s leading Web browser developer company: 675+ employees in ten countries Unmatched footprint across PCs, mobile phones and other connected devices p Leading customers: T-Mobile, Vodafone, Nokia, KDDI, Sony Ericsson, Motorola, Samsung, Sony and Nintendo + others

End-user movement: !

!

!

! !

20+ million unique monthly users of Opera Mini in January 2009 Opera Mobile shipped on 125+ million phones More than 130+ million downloads of Opera products from Opera.com alone in 2008 35+ million use Opera for PCs Millions surf Opera on Wii and other connected devices

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Th vision The i i h has b become reality lit

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Opera’s unique ability to deliver a world-class, ld l crossplatform browser Technical ! One core – multiple platforms ! Support of quickly evolving standards ! Cutting edge innovation Organizational ! Experienced, global organization ! Management experience in handling highly complex technical projects ! Large Quality Assurance team Beyond the features ! The importance of time to market p , with Widgets, g , services and server-enabled solutions ! A connected experience,

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There is only one Web

Devices, platforms and networks: they come in all shapes and sizes. Only one thing unifies them: The Web

Why only One Web will prevail People want to access the same services regardless of device The cost of teaching people to do something thi new is i too t high hi h Most connected devices will have f ll Web bro full browsers– sers good for users, sers operators and manufacturers The browser is now a platform for Web 2.0 applications and services Empowers the next generation of user-driven content

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The unique Th i diff differentiator: ti t One O browser b core for any platform powers One Web Windows

Pocket PC

Smart phone

Motorola P2K

ltron Samsung SHP

Windows CE/Mobile

S60

Media Highway

PlatformPl tf independent core

Symbian OS UIQ

Mac

QnX

Java J2ME (Mini)

Unix Qte Qt

Linux Solaris

Qtopia

Free BSD

BREW

Nintendo

Gogi Wii DS

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Proprietary mobile operating systems will drive the Web as the application platform 90% of mobile handsets ship with proprietary mobile operating system 2007 approximately 1.1 1 1 billion In 2007, handsets shipped with a proprietary OS while just 100 million shipped with p OS an open Examples of leading, proprietary OSs: S40 (Nokia), EMP (Sony Ericsson), SHP (Samsung), P2K (Motorola)

Source: Strategy Analytics, Yankee Group, Opera estimates

Applications will increasingly drive phone sales, so widgets will be adopted by the high volume, properietary i t OS feature f t phone h market k t

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The Opera Opera-powered powered day

Breakfast: Opera p on laptop

Bus: Opera p Mobile

Work: Opera p on laptop

Boring meeting: g Opera Mini

Airport lounge: g Opera on Archos PMP

Recreation: Opera p on Wii

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Web as a platform gains momentum OEMs and operators are looking to leverage the Web as a platform for mobile applications, user interfaces and services OEMs and operators are looking for an open p developer p environment they y can offer across phones Users are looking for an easy way to access personalized and current content on their connected devices

T-Mobile, KDDI and other operators are using i Widgets to make content easily available on the mobile screen

Operations Update Business area

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Why operators choose Opera Mini Increase ARPU through frequent data usage Attract new customers Improve customer retention and reduce churn Maintain a sustainable competitive advantage

t

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Global agreement with Vodafone Group Vodafone and Opera collaborates to enhance the mobile Internet experience i on handsets h d t The global agreement covers a wide array of Opera products: Opera Mini, Opera Widgets and Opera Turbo Applications can be pre-installed or made available as over-the-air downloads

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The dynamic duo: Opera Mobile and Opera Mini Number of phone models with Opera pre-installed pre installed

Opera’s presence keeps growing on an ever larger list of mobile phone models

250

200

New models with Opera Mobile in 4Q: 2

150 141 100

59

0

Total new models in 2008: 197

35

50

6

13

2003

2004

24 2005

Opera p Mobile

New models with Opera Mini in 4Q: 10

63

56

2007

2008

37

2006

Opera p Mini

Number of mobile phones shipped with the Opera Mobile browser: 7.3 million in 4Q08.

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Operators and Opera Mini Operator-branded: Cell One (Namibia) Debitel (Germany) O2 (Slovakia & Germany) PTC/era (Poland) Swisscom (Switzerland) T-Mobile International Tata Teleservices (India) TMN (Portugal) Vodafone Group (New)

Opera-branded: GrameenPhone (Bangladesh) Helio (USA) HT Telecom (Europe) mobilkom (Austria) MegaFon (Russia) Meteor Communications Ltd. (Ireland) Mobitel (Sri Lanka) Movistar (Mexico) Movistar (Colombia) MTN Uganda Omnitel (Lithuania) Optimus (Portugal) Pannon (Hungary) Talkline (Germany) TDC C (Denmark) ( ) Telenor (Serbia) Telenor (Pakistan) Ten (France) TIM Hellas (Greece)

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Opera Mobile: 56 new models in 2008 Casio Casio Hitachi W61CA Casio W62CA Casio EXILIM Keitai W63CA Hitachi Hitachi W61H Hitachi W62H Hitachi Wooo Keitai W63H HTC HTC Shift HTC Touch Diamond HTC T Touch hP Pro HTC Touch HD HTC Touch Viva HTC Fuze HP iPAQ Data Messenger Kyocera Kyocera W61K Kyocera W64K Kyocera W62K Kyocera W63K Kyocera W65K

Motorola Moto Z10 Moto Z9 Moto A810 Motoming A1600 Motorola Q9e MOTO Q Global Panasonic P i Panasonic W61P Panasonic W62P Pantech Pantech W61PT Pantech W62PT Samsung Samsung Omnia Samsung SCH-M480 Samsung 900i Samsung L700 Samsung Player Addict Samsung Saga Sanyo Sanyo W61SA Sanyo W62SA Sanyo W63SA Sanyo W64SA Sharp Sharp W61SH Sharp W62SH Sharp AQUOS Keitai W64SH

Sony Ericsson Sony Ericsson G700 Sonyy Ericsson G900 Sony Ericsson W61SA Sony Ericsson re Sony Ericsson W64S Sony Ericsson Xperia X1 Toshiba Toshiba W61T Toshiba Sportio Toshiba W62T Toshiba W65T WILLCOM WILLCOM 03 Willcom WX330K Willcom WX331K XDA (O2) XDA Diamond XDA Serra

Black: 1Q-3Q Red: 4Q

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Opera Mobile: fresh off the press (1Q09)

Garmin-Asus nüvifone M20 with Opera Mobile 9.5 95

HTC Touch Diamond2 with Opera Mobile 9.5 95

HTC Touch Pro2 with Opera Mobile 9.5 95

MOTOSURF A3100 with Opera Mobile

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Opera Mini: 141 new models in 2008 ASUS ASUS P552 Fly (India) Fly MC 100 Fly E 130 Fly B 700 Fly B600 Fly B700 Duo Fly E110 Fly E300 Fly E310 Attitude Fly HUMMER HT2 Fly LX500 Fly LX600 Mega Fly LX610 Mega Fly MC101 Fly SX210 Fly SX220 Fly SX225 Fly V100 LG LG KS20 LG KF750 Secret LG HB620T LG KB770 LG KC910 LG KU990 LG KF750 LG KC550

Nokia Nokia N82 Nokia N81 Nokia N86 Nokia 5000 Nokia 2680 Nokia 6300i Nokia 6288 Nokia 6300 Nokia 6630 Nokia N73 Nokia 6210 Navigator Nokia 6220 classic Nokia 6233 Nokia 6280 Nokia 6600 fold Nokia 6600 slide Nokia 6600s Nokia N95 512 MB Nokia N95 8GB Nokia N95 8GB Nokia 2320 classic Nokia 2323 classic Nokia 2330 classic Nokia 3109 classic Nokia 3110 classic Nokia 3120 classic Nokia 5130 XpressMusic Nokia 5300 Nokia 5310 Xpress Nokia 5310 XpressMusic Nokia 6131

Nokia Nokia 6210 Nokia 6500 classic N ki 7100 S Nokia Supernova Nokia 7510 Nokia 8600 Nokia 8800 Nokia 6700 Nokia 6500 Slide Micromax Micromax Blink X511 Motorola Motorola V3 Motorola V9 Motorola K1 Sagem g Sagem EX2008P Sagem my721x Samsung Samsung SGH-A800 Samsung F700 Samsung J700 Samsung U900 Samsung F480 Samsung SGH-U700 Samsung SGH-U800 SGH U800 Samsung SGH-Z400 Samsung U800 Soul b Samsung U900 Soul

Samsung Samsung Z400 Samsung B2700 Samsung D900i Samsung E740 Samsung F480 Samsung G600 Samsung L870 Samsung M300 S Samsung M8800 Samsung SGH-U800 Samsung U700 Samsung G800 Samsung B2700 Spice Mobile (India) S-920n S-9 Spice Spice S-707n Spice X-1 Spice D-90 Sonim Sonim XP3 Sony Ericsson Sony Ericsson K818c Sony Ericsson K750i Sony Ericsson W380i Sony Ericsson W910i Sony Ericsson Z780 Sony Ericsson C902

Sony Ericsson Sony Ericsson Linda Sony Ericsson Shiho Sonyy Ericsson W760i Sony Ericsson W980i Sony Ericsson C702 Sony Ericsson C702 Sony Ericsson C902 Sony Ericsson C902i Sony Ericsson K610i Sony Ericsson K850i Sony Ericsson W880i Sony Ericsson W890i Sony Ericsson An Sony Ericsson Feng Sony Ericsson K530i Sony Ericsson K550i Sony Ericsson K770i Sony Ericsson TM506 Sony Ericsson W350i Sony Ericsson W580i Sony Ericsson W610i Sony Ericsson W760i Sony Ericsson W810i Sony Ericsson W890 Sony Ericsson W910i Sony Ericsson Ying Sony Ericsson W980 Sony Ericsson W902 Sony Ericsson W595 Sony Ericsson K770 Sony Ericsson C905 Sony Ericsson F305 Sony Ericsson C510 Uriver Uriver SP900

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Opera Mini: Fresh of the press Tough car meets tough phones meets tough browser Two new devices: Land Rover S1 by Sonim and Land Rover S2 G4 by Sonim

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Opera Turbo: a superior Web experience with significant speed and cost benefits

With Opera Turbo, operators and OEMs keep customers happy and network costs down Users get a fast, attractive Web experience at a lower cost By compressing network traffic by up to 80%, Opera Turbo helps to enable the sustainability and scalability of networks in order to meet traffic demands and ensure a superior browsing experience

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Opera Devices: pushing boundaries of One Web Two areas of use: Full Internet browsing. Opera Devices SDK used to develop a fullfledged browser for surfing Application environment. Opera Devices SDK powers a device with menu system, y , user interface,, Widgets and applications

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Philips first to ship TVs with a browser inside Philips introduces Net TV – powered by the Opera browser

Philips introduces easy internet access on the TV with the i innovative ti Net N t TV feature f t To be available on all Philips televisions in Europe in the 8000 series, 9000 series and Cinema 21:9 from Spring 2009 onwards Web content is tailored for the best possible viewing experience on the TV screen, and is easily accessed through the TV’s remote t control, t l without ith t the th need d for extra set-top boxes or service subscriptions, or for starting up a l t laptop.

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ZyXEL and Alpha Networks select Opera for set-top boxes ZyXEL Communications (Taiwan), a leading broadband access solutions provider, has selected O Opera Devices D i 9.5 9 5 ffor it its new Li Linux-based b d set-top tt box (STB) series Opera also serves as the presentation engine on the STB series Alpha global leader in the p Networks ((Taiwan)) a g networking industry, selected the Opera Devices SDK to deliver the Internet to its new high-definition IP set-top boxes, the AST series. Alpha Networks replaced its previous browser technology with the Opera Devices SDK in order to bring g a superior p Web experience p to users of the AST series.

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Touch the Web on ASUS Eee Top PC with the Opera browser Eee Top PC: An innovative touchscreen computer Opera brings drag-anddrop functionality, onscreen panning and an automatic virtual keyboard to the Eee Top PC Already available in multiple markets

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Th Nintendo The Ni t d DSi goes global l b l In early April 2009, the Nintendo DSi goes on sale l iin Europe E and d North America

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KDDI au BOX Sony VGF-CP1

Nintendo Wii

Nintendo DS

Sony Bravia Video Internet link

Q-matic ticket printer Phillips Professional Flat TV

Archos 5 & 7

Telsey Waves

Iwatsu Precot IP Phones

Amino Set-top box

VCom NDVB-9000 Tilgin Mood 300 & 400

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Operations p Update p Consumer area

The big g picture: p Global Internet penetration p now at 20% - as indicator of market opportunity pp y Growth in Desktop Internet Users (Global, MM)

Source: Internet World Stats

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Opera for Desktop: Revenue growth Opera Desktop Revenue (MNOK)

Ninth consecutive quarter of growth

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Revenue growth of 117% compared to 4Q07

35

User growth 67% compared to 4Q07

40

30 25 20 15

R i b fit off localization l li ti Reaping benefits strategy in terms of product features, marketing materials and commercial agreements Higher user growth than overall Internet market in target countries

10 5 0

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The big picture: Mobile Web growth in 2008 From Opera’s monthly State of the Mobile Web report More users Number of Opera Mini users in Jan 2008: 7.6 million Number of Opera Mini users in Jan 2009: 20 million User growth on social networks in 2008: vKontakte: 910% Facebook: 693% MySpace: 618% Data traffic g growth ((Jan 2008 – Jan 2009)) + 350% (to 122 million MB)

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O Opera Mi Mini: i Opera Mini monthly page views 8 000 000 000

20 million monthly users

7 000 000 000

6 000 000 000

122 million MB of data transferred monthly Value for operators (at NOK 4 per MB): NOK 5.9 billion per year Opera Mini now generates data traffic for 500 operators in 150 countries 150+ t i every month

5 000 000 000

4 000 000 000

3 000 000 000

2 000 000 000

1 000 000 000

0

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Yahoo! selects Opera Mini Yahoo! improves consumers’ consumers ability to use their phones to discover and stay connected Opera Mini 4 4.2: 2: “An An integrated version of the world's most popular mobile web browser, with easy return to the Yahoo! Mobile app, that launches when web site access is needed.” Launch expected by late May 2009 Device categories: Hundreds of select models from RIM RIM, Windows Mobile, Nokia S60 and 40, Samsung, Sony Ericsson and Motorola. Motorola

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M O My Opera – att the th heart h t off Opera’s O ’ universe i

In January 2009: Total members: 2 100 000 Visitors: 9,121,448 Average daily sign-ups: 3211 Average daily page views: 1,203,713

Th k you for Thank f listening li t i