Opera Software's Annual Report for 2010 is now available.
While this report is primarily aimed at investors, it is useful reading for anyone who wants a more in-depth view of Opera. It contains raw numbers, detailed information about Opera's business models, and more. There's even some more detailed information on the acquisition of AdMarvel and FastMail.
I have added some "highlights" from the report, but bear in mind that I had to keep it somewhat brief (even though it's a fairly long list). For the full details, please read the actual report. …
Some of the things that happened in 2010:
- Opera Software went through a transformation in 2010. From spending a lot of time delivering highly customized browsers to OEM customers, the focus was moved to more scalable licensing models with standardized products.
- The company had 747 employees on December 31, 2010
- We exceeded 160 million active users of our products
- Opera has delivered on its vision to bring the web to even more people, and will continue to do so
- We signed numerous new tier-one operators in addition to increasing volumes for existing ones, a plan that was announced as at the beginning of the year
- Opera had 21 operator agreements (including 13 of the top 30 operators) at the end of 2010, which covers 25% of the global mobile subscriber base
- Going into 2011, interest from mobile operators is growing, particularly for the co-branded version of Opera Mini (where both Opera and operator content services are part of the home screen) in emerging markets
- We started focusing more on monetizing our millions of mobile users
- Opera expects revenue from mobile users to be one of the company's primary sources of revenue in the future. This will be made possible through search, mobile applications (for example, the Opera Mobile Store), and mobile advertising (such as the Open Mobile Ad Exchange)
- We strengthened our leading position in the TV market
- The desktop user base continued to grow, and growth was in line with the rest of the market. However, we need to do even better in 2011
- We made two important acquisitions, AdMarvel and FastMail, which enabled us to expand our product portfolio and create new revenue opportunities
- We have new contracts with leading Asian manufacturers like Huawei and MediaTek (who are starting to be a real threat to Nokia in the lower end of the handset market)
- Opera Mini became the first alternative browser in the iPhone App Store, and had a million downloads within the first 24 hours of launch
- Despite mobile OEM revenue decreasing (as planned), mobile OEM customers shipped Opera on more than 100 million mobile devices in 2010 (significantly up compared to 2009)
- Mobile OEMs will be used as a distribution channel to get Opera into even more people's hands
- Opera has also partnered with chipset manufacturers, which will be a significant distribution channel in the future
- In the Connected TV market, Opera expects much higher volumes in 2011 than in 2010, and there will be an increased focus on innovation in the TV market from Opera
- Opera considers the desktop browser to be more important than ever.
- The growth on desktop was in line with industry growth, which means that it was a bit lower than expected
- The desktop growth is expected to accelerate again in 2011
- Absence due to illness was a mere 1.5% in 2010, and there were no reported work-related injuries caused by accidents
Opera's financials in 2010:
- Significant increase in margins and profitability in 2010
- Opera's cash balance was slightly down due to investments like the acquisition of AdMarvel and FastMail, Opera Mini infrastructure, purchase of own shares, and dividends
- Opera had no interest-bearing debt as of December 31, 2010
- A possible risk in 2011 is the foreign currency exchange situation, as 50% of the company's revenues in 2010 were in EUR, and 47% in USD
- Another possible financial risk for Opera is the fact that the company's competitors are some of the largest technology and telecommunications companies in the world. They have significantly larger financial resources and head counts, and far more and broader distribution channels than Opera
- Other risks for the company include not keeping up with technological advances and the rest of the market, failing to produce products that attract users, loss of existing business customers, problems with our data centers (as they are key to a large part of our operations), a failure to protect and grow our brand, failing to manage head count and workforce competence, failing to retain or attract key executives and management, problems related to regulations around the world, and finally, lawsuits and similar things (such as intellectual property issues). This does not mean that any of it will happen, but this is a fast moving market, and we need to be aware of the risks
For 2011, some of the things that are happening are more monetization, such as the Opera Mobile Store, mail, and payment integration. Opera's also aims to become even more consumer-driven (with a focus on standardized products for for primarily end-users).
Key operational priorities in 2011:
- Sign contracts with additional leading operators, and retain and grow the user base for existing contracts
- Higher revenue and growth for Opera's consumer products
- A stronger position with top mobile OEMs and chipset manufacturers for wider distribution of Opera's mobile products
- Build on Opera's momentum with major consumer electronics OEMs, particularly in the TV market
- Increase Opera's overall profitability and margins