Today, Opera Mediaworks’ parent company, Opera Software, reported financial results for Q1 2015. Opera Mediaworks, Opera Software’s U.S.-based mobile advertising subsidiary, demonstrated strong growth for the company, once again, continuing to contribute more than half (52%) of the overall Opera Software revenues.
- Opera Mediaworks reported revenues of $83.2 million for Q1 2015 — a growth of 162% year over year.
- Since Q1 2014, Opera Mediaworks has seen a 72% growth in global platform reach from 500 million unique consumers to 850 million.
- Overall, Opera Software, publicly-listed on the Oslo Stock Exchange, reported $126.8 million in revenues (up 46% year over year) with adjusted EBITDA of $18.2 million.
Revenue growth in Q1 2015 was driven primarily by increased revenue from premium and performance advertisers and “app-install” driven spend from primarily the mobile gaming sector. Opera Mediaworks runs campaigns for many of the top revenue grossing app developers in the world.
Video Rules the Roost
Opera Mediaworks’ strong performance in Q1 was also related to some key brand customer wins in a variety of verticals with the top 5 being: CPG/FMCG, Entertainment, Automotive, Technology/Consumer Electronics and Finance.
The key driver of growth was Opera’s mobile video business, which is the fastest-growing ad format globally. This time last year, Opera Mediaworks revenues from video amounted to 12% of overall revenues. In Q1 2015, that number grew to more than 50%. Mobile video revenue is expected to grow 3 times faster than desktop through 2020, according to Business Insider.
Part of the success of mobile video, was the launch of the Native Video Fund earlier this year, as a result of the acquisition of AdColony. Opera partnered with more than 15 global brands and agencies, including Adidas, Lenovo, Carl’s Jr., to help them create and execute mobile video ad creative that is less than 15 seconds and is designed for impact in a native, in-feed video environment.
Opera Mediaworks’ plans for global expansion saw lots of activity in Q1 with the establishment of an office in Singapore and a growing team spread across the APAC region, with plans to expand further in with offices in South Korea and India. Key geographies such as USA, Europe, Latam and Africa continued working with major brands and agencies in their respective regions and working on bringing our key acquisitions and talent under one umbrella.
One great example is the AdColony Instant-PlayTM video product, which has been introduced globally as part of our unified global offering. In Latam, this has helped with the influx of performance campaigns and, in Europe, it has helped contribute to video growing to 30% of the total revenues.
In Q1, we announced Opera Select, a private marketplace to connect buyers and sellers who work with Opera Mediaworks. Opera Select is a curated marketplace for premium display and rich-media ads where advertisers will know their premium brands will appear alongside premium content. Later in the year, Opera Select will launch programmatic offerings for video and as well as native advertising.
In Q1 2015, the ratio between display advertising and user acquisition advertising revenues remained close to 50:50, as customer spend evened out more between those two categories since the same time last year.
AdColony (a division of Opera Mediaworks) was rated 3.5x higher than Google for both providing high-quality app installs and for driving user acquisition at scale in the AdColony User Acquisition Survey. This survey gathers insights, benchmarks and trends from the top 100 grossing app developers globally.
“We’ve kicked off 2015 with a great start in terms of financial performance, global expansion and providing tremendous value to our customers. Our performance rates us as the top independent mobile ad platform in the world,” said Mahi de Silva, CEO, Opera Mediaworks. “For the rest of 2015, we will continue to focus on some key efforts such as mobile video, native advertising, premium programmatic offerings, and on growing our user acquisition and brand advertising business globally.”
More information on the Opera Software earnings can be found here.