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Business Operations Business Models

How Does Opera Make Money (Business and Revenue Model)

The Opera browser business model

How Does Opera Make Money?
Here’s what you should know:
  • What is Opera, and how does Opera work?
  • How does Opera make money?
  • Advertising Revenue
  • Search Revenue (Profit Sharing)
  • Technology Licensing and Other Revenue
  • Opera’s Subsidiaries, Acquisitions, and Exits
  • Opera’s profit and revenue
  • What is the Opera browser business and revenue model?
  • Opera’s funding and market cap

How does the Opera browser make money if it’s free to use? Here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Opera business model, their year over year revenue, and how Opera works.

What is Opera, and how does Opera work?

Opera is a multi platform web browser that comes with a lot of built in products, features, and add ons.

Founded in 1995 by Jon Stephenson von Tetzchner and Geir Ivarsøy, Opera began trading on the NASDAQ on July 27, 2018, under the ticker symbol “OPRA”.

Since that time, Opera has grown to over 358 million monthly active users making it one of the most used web browsers on the internet.

How Opera works is: To use Opera, users must first download Opera onto their mobile via the App Store or Google Play; or directly onto their PC. Once downloaded, users can freely search and browse the internet.

Some of Brave’s competitors include Google, DuckDuckGo, Brave, Firefox, Yahoo!, Bing, and other web browsers.

Opera browser App in Apple App Store | Opera browser Business Model | How Does Opera browser Make Money? | How Does Opera browser Work?
Source: Apple App Store | Opera

How does Opera make money?

According to Opera’s about page, Opera has more than 358 million monthly active users. So how does the Opera browser make money off of all these users?

Below is a breakdown of how much money the Opera browser makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how the Opera browser makes money (in 2022):

The Opera browser has a revenue model that makes money in three (3) ways; advertising revenue, profit sharing revenue, and licensing out their technology.

#1. Advertising Revenue

Like most web browsers, Opera makes most of its money from advertising – nearly half of it. In fact, $123.9 million, or 49.4% of Opera’s total revenue came from advertising in 2021.

As noted above, Opera has more than 358 million active users per month. Which means more impressions on their advertisements. Which leads to more ad dollars for Opera.

Opera Ads Cost | Opera browser Business Model | How Does Opera browser Make Money? | How Does Opera browser Work?
Source: Opera

Note: This ad revenue does not include the profit sharing ad revenue, shown below.

#2. Search Revenue (Profit Sharing)

Opera makes the other half of its money from its search revenue. Which, in 2021, generated $122 million or 48.6% of Opera’s total revenue.

How does Opera make money from searches? Opera makes money when users run search queries using one of Opera’s search partners’ search engines (such as Google or Yandex). Leading those Opera users to see Google and or Yandex search ads in their search results – which makes those companies ad revenue. And in return, Opera receives a share of that ad revenue.

A Google search partner “extends the reach of Google Search ads and listings to hundreds of non Google websites, as well as YouTube and other Google sites,” as stated in Google’s official definition of the term.

#3. Technology Licensing and Other Revenue

Opera makes the remaining portion of its money from what they call “technology licensing and other revenue”. Earning the company an additional $5.1 million of revenue in 2021.

Technology licensing and other revenue, according to page 48 of Opera’s 2021 Form 10-K, comes mostly from the “licensing of GameMaker, a platform for developing games that [Opera] acquired with the acquisition of YoYo Games Limited in 2021.”

Opera GameMaker Cost | Opera browser Business Model | How Does Opera browser Make Money? | How Does Opera browser Work?
Source: Opera

Opera’s Subsidiaries, Acquisitions, and Exits

To date, Opera Limited has made a total of 3 acquisitions, 2 investments, 1 lead investment, and 1 successful exit.

Mergers and acquisitions business model
Source: Crunchbase | Opera

Opera’s profit and revenue

In 2021, Opera reported $251 million in revenue.

Note: Because Opera Limited is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Opera’s publicly released financial reports, including annual reports, through Opera’s investor section on their website.

What is the Opera browser business and revenue model?

The Opera browser makes money through a few revenue models that they combine within their company, they are:

  • Advertising based business model
  • Revenue sharing business model
  • Licensing business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

Opera’s funding and market cap

According to Opera’s Crunchbase profile, Opera has raised $82.1 million over 1 round and has a market cap of $595 million as of May 2022.