Opera Limited

Ladies and gentlemen, this is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines will again be placed on music hold. Thank you for your patience. Thank you. Thank you. Welcome to Opera Limited 4th Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this period, you will need to press star 1 on your telephone. If you want to remove yourself from queue, please press the pound key. Please be advised that today's conference is being recorded. If you need operator assistance, please press star zero. I would now like to turn the call over to your speaker today, Derek Newman, Head of Investor Relations. Please begin.

Thanks, everyone, for joining us today. With me today on the call, I have our co-CEO, Song Lin, and our CFO, Frodo Jacobson. Before I hand over the call to Song Lin, I would like to remind everyone that in the conference call today, the company will be making statements about its future results and expectations, which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements are based on current expectations and how we perceive the current economic environment and are inherently subject to economic, competitive, and other uncertainties and contingencies beyond the control of management. You should be cautioned that these statements are not guarantees of future performance. You may refer to the safe harbor statement in the company's earnings release for more details. Our commentary today will also include non-IFRS financial measures, including adjusted EBITDA, which are different from our consolidated financial statements that are prepared and presented on IFRS. We believe that the use of our non-IFRS financial measures provides an additional tool for investors to evaluate ongoing operating results and trends. These measures should not be considered in isolation or as a substitute for the financial information prepared in accordance with IR4S. We have also posted unauded supplemental information on our investor relations website that includes historical financial results for APRA, which reflects microlending and retail as discontinued operations. We've also included pro forma results for Nano Bank, which we own 42% of. With that, let me turn over the call to our co-CEO, Song Lin. He'll cover our operational highlights and strategy. And then our CFO, Frodo Jacobson, will finish up with financials and update on our investments and our expectations going forward. With that, let me turn it over to Song.

Sure. Thank you, Derek. So, like, you know, first I just want to say that thank you, everyone, for joining us today. This is Song Lin here. 2020 has presented expected challenges for many people and business alike. Despite of that, I'm pleased to report that despite those challenges, the fourth quarter substantially exceeded our expectations for Opera with accelerating year-over-year revenue growth rates and strong margins in our core business. We are really excited as a company about the road ahead And here is why. So number one, our core business, both the Opera Browser and Opera News, have demonstrated not just resilience, but strength. This means we are now operating with more users and at greater scale in our key markets, seeing greater user engagement and an increasing ability to monetize. So this, along with the recovery from COVID-19 impacts led to accelerating revenue growth and an even stronger trajectory than we expected as Opera enters 2021. And second, the strength of our core business puts Opera in a position to not only benefit from our ability to create value through these core products, but to leverage that strength by investing where we see clear opportunities for growth. We have multiple growth initiatives rapidly expanding categories with high potential including gaming payments and news in developed markets and each of which benefits from our existing market position and each of which represents significant upside so in combination the scale and performance of our core business combined with our new initiatives make this an exciting time for opera we believe that that we can and we will grow to be a much larger business as these growth strategies play out over the next few years. But before I talk about our future, I also want to offer some highlights of our performance. So for the last year, we have added 29 million monthly active users into our base in 2020. We have also reached 79 million average monthly PC users in the fourth quarter It's up 17% year-over-year, which compared to about 10% growth in the third quarter. This was driven by our Opera GX Browser, which exceeded 7 million users in December. It's up 350% year-over-year, and we continue to see elevated growth rates thus far this year. Opera News monetization has also raised an inflection point It has grown more than 150% year over year and 60% compared with the third quarter. Our mobile users have also achieved record revenue while at the same time continuing the expansion of the user base, especially for our most advanced browsers, Opera for Android and Opera Touch. It is up 18% and 51% respectively. We also recently launched Hype. It's an in-browser messaging feature in Opera Mini, and this is an example of features we are launching to further increase engagement in key African markets. And finally, thanks to our increasing scale and engagement, advertisers not only returned to Opera, but have increased their spend with us. So the combined search and advertising revenue growth accelerated to be 14% year-over-year from about 1% last quarter. So looking ahead, we expect that our new initiatives, which both complement and benefit from our core browsing business, will contribute significantly to user engagement, search, and advertising growth, and SaaS revenue. So let's talk about those initiatives and also where we are. I will start with our European payment efforts We just announced the launch of DeFi. It's a new digital wallet that will fully integrate into our browser. So every day, millions of people shop online and make payments using Opera Browsers. And the first use case for DeFi will focus on online shopping, providing cashback benefits from more than 300 merchants that are already part of our program. This has significant potential for Opera. First, it will attract the many users we know are looking for better shopping experience with integrated payments and the ability to earn discounts through getting cash back. Second, and more broadly, this will further deepen our penetration of e-commerce, which we have done throughout 2020. Opera can accelerate partnerships with an increasing number of merchants by offering an even more seamless transaction layer into the browsing experience, and use DeFi as a payment of choice. So DeFi is now live in spend, and next steps will be to quickly expand to additional European markets, and as the year progresses, launch additional payment solutions and services, such as Binary Pay Layer, further building out the ecosystem around our browser and DeFi wallet. So it's very exciting. And gaming, we also talk about, is another area we are very excited about. The online gaming market itself is huge and growing. So the recent market research suggests that in year 2020, the global games market generated revenues almost 10 times global box office revenues. Our Opera GX browser is the world's first browser built specifically for gamers and we are encouraged by our early success there. So the Opera GX user base has grown tremendously to be over 7 million MAUs in December and is meaningfully contributing to our core business growth demonstrated by the fact that every million MAU on Opera GX now delivers more than 2.5 million annual revenue already. And we continue to invest in gaming So in January, we acquired Yoyo Games. It's a longstanding gaming engine well liked by the gaming communities and independent game developers. So we believe the combination of fast-growing GX towards gamers and the well-recognized GMS gaming engine with developer focus will allow us to build out a comprehensive gaming ecosystem and community, accelerating our monetization potential. We would like to call it a game changer. This is still fresh, but expect more details in the next few months. Finally, and perhaps most important in terms of revenue growth potential for this year, it's Open News. As you all know, Open News has been a huge success in emerging markets, especially Africa. We have over 200 million users in Africa and other emerging markets, and revenue is becoming substantial with healthy growth margin as a direct result of all our investment in users and market share. So at the end of last year, we began efforts to replicate the success we've had in more developed markets. The audit results have been promising with just over a million MOUs on the standalone app, and it's already the top downloaded news app in several markets with very good user engagement and monetization that position us to scale further. So we are glad that our prior and substantial experience around the AI, around algorithm and data, allow us to create a competitive edge in developed markets as well. We believe we are now well positioned to scale. While there will be meaningful upfront marketing costs aimed at our user acquisition, we will broaden our ecosystem in developed markets with a large and profitable content business and with a major potential impact on our revenue growth this year. So allow me to wrap up. Our core business is getting stronger with accelerating revenue growth and increasing profitability. We are using these strengths to build a bigger ecosystem, position our browser user base through e-commerce and payment, building a gaming universe around our projects, and bringing news to developed markets. So we are growing business in markets that are themselves growing, leveraging the scale and success of our core business with investments that will draw new users to Opera while increasing engagement with customers we already have, creates meaningful upside for our company and hopefully our shareholders. So before I hand the call over to Frida, I want to say that how excited we are about the year and even more about the years ahead. We see the potential to materially accelerate our growth rates this year with clear implications for our value. So with that, I'll turn over to Frida to continue. Hi, Frida.

Thanks, Engen. The fourth quarter was very strong, exceeding our expectations and placing us on an elevated growth trajectory for 2021 and beyond. Let me cover some highlights of the quarter and then provide some details on our growth plans. Revenue for the fourth quarter was 50.4 million. This compares to 42.4 million of revenue in the prior quarter, or a sequential growth of 19%. Specifically in the quarter, Search was 25.7 million, up 13% year over year, and 21% sequentially. This was driven by our record desktop users and recovering monetization. Advertising was 23.3 million, up 16% year over year, and 23% sequentially. This was driven by accelerating monetization from upper news and by strong mobile browser monetization. Finally, tech and other revenue was 1.5 million. Year over year, this revenue category has been reduced by 4.5 million, although with almost no impact to profits as the decline relates primarily to low margin professional services to OPEI. Our operating expenses were 46.4 million, up 19% sequentially, primarily explained by increased marketing spend and a write-down of receivables related to power bets, which was a small joint venture that we dissolved in Q4. Adjusted EBITDA was 14.3 million in the quarter. This represented a 28% adjusted EBITDA margin, highlighting the strong profitability of our core search and advertising business. Other items of note include other income of 3.9 million related to a cash refund of VAT that had been recognized as other expenses over the past years, 5.2 million share of profit from NanoBank, an 8 million increase in the book value of our preference shares in StarMaker and Opay, and 5.9 million realized finance gains on public securities held as part of our treasury function. All items included, net income was 25.4 million. Our operating cash flow was positive at 17.5 million for the quarter, where the biggest driver was our underlying profitability. Net of other items, including 8.2 million of share buybacks, total cash and marketable securities ended the quarter at 134.2 million, up 14.5 million from the prior quarter. In terms of our share buyback program, we repurchased a total of 5.89 million ADSs in 2020 for a total spend of 49 million, averaging 8.32 per ADS. Then moving to our investments. As we've discussed, our investments represent significant upside potential for Opera shareholders, And in Q4, we saw a continuation of the positive trends we outlined last quarter. As a reminder, APRA holds 42% of NanoBank, 13.1% of OPE, and 19.35% of StarMaker. Beginning with NanoBank, it continues to recover from COVID-19 impacts. Indonesia and Mexico are outperforming, while other geographies have been slower to recover. Further, NanoBank is in the process of launching in several new markets and will provide more details as those markets begin to scale. For the quarter, NanoBank posted revenue of 46 million, up 32% compared to the third quarter, and dispersed 3.2 million loans, representing 239 million in total value. Adjusted EBITDA was $13.8 million, representing a 30% margin, and post-tax profits were $12.3 million. We continue to believe NanoBank will scale meaningfully in 2021 as its markets fully recover and it launches new geographies and ad products. We expect this to be more evident towards the middle to later part of the year. Our two other significant investments, Ope and StarMaker, continued to experience strong growth in the fourth quarter. In December, Ope processed a gross transaction value of $2 billion on its platform, compared to $1.4 billion in October, or a 43% increase in just over two months. Further, Ope's revenue is increasing quite rapidly while the company is able to achieve profits right around break even despite the growth. We expect this growth to continue as Ope continues to scale in Nigeria and expands to an additional country in Africa. StarMaker continues to scale rapidly. The company exited 2020 with an annual revenue run rate in excess of 130 million, which was more than three times the comparable exiting run rate of 2019. StarMaker also achieved double-digit net income margins for the year and daily active users more than doubled year over year. Now, moving to our forward-looking commentary. Repeating what Seung-Lin said earlier, our core business exited 2020 with strong momentum. This has made us more confident in near-term growth, and we expect our core business growth rates to increase in 2021 compared to this past quarter. This is being driven by a combination of strong PC user growth, opera news monetization reaching an inflection point, and strong mobile revenue trends. We expect our core business to contribute significantly more in adjusted EBITDA in 2021 versus 2020. However, we plan to take all of our underlying adjusted EBITDA growth and reinvest it into our new initiatives that Song Lin discussed to seize the opportunity to accelerate our long-term trajectory. well in excess of a 20 to 30% level and accelerate our path towards becoming multiples of our current size. We have confidence in this strategy from the consistent strength demonstrated by our core business and our demonstrated ability to scale new initiatives such as Upper News or the FinTech businesses that we've established as independent companies. And finally, we believe all of these initiatives have strong risk-reward profiles and the ability to drive outsized, long-term, profitable growth. Now getting into our 2021 guidance. We are taking a conservative approach, not including anywhere near the full potential from new initiatives, while making sure potential investment is reflected. We believe that this will provide us flexibility to execute on our growth plans and provide investors with baseline expectations that we will hopefully be able to outperform as the year progresses. We expect 2021 revenue of 220 to 240 million, representing 39% growth at the midpoints, up from our former indication of 25% growth or 200 million. And we expect adjusted EBITDA of 10 to 30 million. In Q1, we expect revenue of 47 to 48 million, representing 18% year-over-year growth at the midpoint, roughly a 15 percentage point increase versus the growth rate of the fourth quarter. This will be driven by search and advertising revenue growth combined exceeding 25%, partially offset by a 2 to 3 million year-over-year decline in other non-user-driven revenue. Adjusted EBITDA is expected to be around break-even in this first quarter as we invest aggressively in our new initiatives. To wrap up, we are very excited about 2021 and our ability to build something big. We will be investing in our future and believe we've got a great setup ranging from a core business that is very profitable with solid growth to a set of strategic investments in businesses that offer multiple incremental revenue and cash flow opportunities. We look forward to keeping you updated. Thanks. We'll now take questions.

Thank you. As a reminder, to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press the pound key. We do ask that you please pick up your handset to allow optimal sound quality. We'll take our first question from Mark Argento with Lake Street Capital Markets.

Hey, good morning, guys, and congrats on a strong quarter. Just had a handful of questions. particular uh you know on the advertising side it looks like uh business has bounced back nicely there you talk a little bit about what are some of the properties where you're monetizing the highest uh in terms of advertising is it through the browser in particular or you know some of the news products maybe just you know touch on kind of where you're seeing that strength and advertising coming from yeah so yeah funny how still i i

I guess maybe I'll just comment a bit on the general one, and then Frida can probably comment a bit on the numbers. I think high-level, as we also mentioned, Q4 results, that obviously we see a very strong growth on the news, which is highlighted by the fact that news alone grows 150% year-over-year and 60% compared to the sub-quotas. That's very strong and even above the average growth of the app. But on top of that, we do also have quite strong growth on the browser as well. But yes, I think new has been instrumental, and we see that trend will continue moving into the new year. So maybe Frida can also compliment us.

Yeah, I would say overall we benefit from a normalization in terms of demand post-COVID impacts earlier in the year, giving a return to year-over-year growth now. For the fourth quarter relative to the third quarter, approximately half of our advertising growth was driven by the Upper News app and the other half driven by the browser side.

Okay, that's helpful. And then in terms of the Opera mini browser, I know that business has picked up or that product has really proliferated nicely. Are you able to generate ad revenues out of the mini browser as well? And what's the anticipation in terms of scaling that out into other markets?

Yeah, so maybe I'll just comment here. So first clarifying that of course, Opera Mini is actually the major ones on the browser side generating good ad revenues. It's still because Opera Mini is an emerging market offering, so it is intrinsically quite big in emerging markets like Africa. So it is already very strong engagement and a big chunk of the ad revenue. If we set aside news, then Opera Mini itself is actually one of the major app generation opportunities. So I think the next opportunity is actually Opera for Android, a bit more high-end one, which we also now have been working really well in more developed markets like Europe and the US. And I think hopefully within this year, 2021, you'll be able to see a very strong app monetization potential. for Opera for Android and also Opera Touch this year in more developed markets.

And Mark, this is Derek. I would say going back to Opera Mini, just as a reminder for everyone on the call, we have 100 million users in Opera Mini. And our focus there is creating more and more features and functionality that drive more engagement. And you've seen over the last 12 months, we've dropped a bunch of new features there. and our focus is going to be to try to make the browser better and better. Obviously, the same thing with Opera for Android and Opera Touch, as Songlin said.

All right, that was helpful. And then in terms of the – I think you guys are pushing all the chips back in in terms of the reinvestment this year. What is the – I know – Song, you talked through a few of the different areas where you're going to spend, but maybe you could highlight the top one or two places that you're really focused on getting right and reinvesting that capital back in.

Yeah, so just to be a bit high-level, right, and then further, probably the better one is just to chime in on the numbers. But I would just say that in terms of the major growth area, which will have direct impact on the numbers, even for this year, 2021, I would say that probably opera news, because that's a very mature product, and it's very good potential. We see how it's performing in African markets. And we have, as also mentioned, that we have actually launched that already in some of the key new markets, which you can also see. And it's performing really well. So for us, to be honest, it's almost a very simple decision that if you have a product with very high user engagement, very high user retention in a very good market, then of course there's no reason why we should not plan to invest to make sure it grows properly to be a product with scale. So I would say that probably constitutes the majority of our investment in terms of money. while the other two directions, one is gaming itself is already very profitable, and also DeFi more like aiming at a bigger scale, but slightly long-term.

Maybe just to chime in, just a brief note at the end. Of course, very pleased that we're able to guide about 40% revenue growth at the midpoint, and vast majority of that growth is coming from our core businesses, as Song explains, with upper news and the potential that we see to scale that, but also the browser businesses doing really well. And I would say that the amount of investment really depends on how successful we are. And the better we do, the more we will invest to seize that opportunity, and that is what we have provided for in our ranges today.

And then just the last one for me, it looks like some of your minority investments, including NanoBank, are really performing at a high level. Is there any talk or thoughts in terms of linking for liquidity for any of those assets, either in an IPO or an outright sale of the stakes? Just wanted to better understand your long-term thinking around non-majority assets.

Sure. I mean, we are very rational when it comes to that and focusing on how we maximize the value for Opera and our shareholders. But we don't have anything specific to announce. For now, just very pleased that all of these businesses are performing really well.

And Mark, I would add that, Mark, I would add on our investments, you know, obviously we're not running those businesses, but the individual management teams of each business are really excited during 2021 and they think they can generate strong growth rates. So that's a good thing as far as we're concerned in terms of our optionality.

Just one follow-up there. Have any of those three assets taken in any capital, or have there been any valuation marks on any of those recently?

No, not externally. Obviously, we took a gain on those investments from Fair Value this quarter.

Great. Thanks, guys. Congrats again on a good quarter.

Our next question comes from the line of Vicki Way with Citi.

Good morning, management. Thanks for taking my questions and congratulations on the strong results. This is Vicky Wei on behalf of Alicia Yeap. So my first question is about Opera Gaming. So I want to ask, what is the strategic target for Opera Gaming in 2021? And will management comment on the competition landscape of the online games in your business region? Thank you.

Yeah, so it's only now. Maybe I'll just comment here a bit. So just to comment that, of course, it's still quite new for us as we just announced the acquisition in January. But, you know, high level, I would say that, you know, we have already demonstrated the strengths of Opera and Gaming by the Opera GX, which are, you know, for a gaming world, if you have 7 million monthly active users in just a bit more than one year, you have grown 300%. year-over-year, that's, of course, tremendous. And I've also quoted that this is already becoming quite profitable. So as a highlight, you probably know that with the adding of the GNS Gaming Engine, it will be the first time that we have a community which both have plenty of gamers, fast-growing, year-over-year, with also a gaming engine that will link in like the game maker communities, like the people who are creating games, so linking both the player and people who are creating the game together. And I would almost say that in terms of that, it's probably easier to compare that with the likes of maybe Steam or even Roblox. The only difference, of course, is that we are targeting at a slightly niche segment, which is independent gaming developer, and also a particular niche of the market. So, yeah, so I would say, but high level, there are a lot of potentials that we feel that combining them together, building up a community, or we almost call it a one-stop shop, could be very relevant. But, yeah, so we're very excited about it. However, just to comment that, because this is just acquired in January, this is way too fresh, that we will probably just announce, you'll see new products coming out, and also for new press release that we're going to have. But high level, we are very excited excited about the opportunity.

Thank you. And for the competition, please.

Yeah, so as I said, I briefly mentioned that I would say if you look at whoever globally has the strength of both players and the gaming creators, then you are really looking at the likes of Steam, of course, the biggest one. Or even the likes of Roblox, which is a solid building community for both players and creators. And I think those two are probably more similar as what we are having. Remember that for now, we are more desktop than more PC than mobile. So I would say those two are probably of more similarity. But of course, those are all very huge companies. So I think it's more like how we can grow faster, make our step into the game.

I see. Thank you very much.

Your next question is from Sarah Simon with Barenburg.

Yes, good morning. I apologize if these are stupid questions, but it's the first time I've listened to an awkward call. But I've got three. So the first one is, with regard to monetizing the browser, do you think that you will benefit from the removal of cookies by other browsers, well, notably Chrome, obviously, next year, and whether you've seen that already with other browsers dropping the cookie thing. And I guess related to that, do you feel any pressure to remove support for third-party cookies yourself? And then the other question would be OPE. Did I hear you say that you did process $2 billion of payments? And I think that was just in a month, right? So... Who are your main competitors for OPE? And am I right in thinking you're just really Nigeria for that at the moment? Thanks.

Yeah, I think it's Sony Hill. Thanks for the question. It's a very good question, actually. So maybe I'll just start by answering Ope, because that's the last. So yeah, for Ope, just to clarify, of course, it's an invested company, so they of course know their own business better than us. But as an investor, maybe the comment would just be that yes, you are right that they are making 2 billion transaction volumes a month, so very huge. And yes, you are also right that for now, they are primarily operating in Nigeria. That's where they have their license. They do have plans to expand into other regions in Africa, but it is better for them to announce that. But for now, and at least for sake of Q4 last year, all the transaction volumes are recorded in Nigeria. So like again, to our best knowledge, they are the number one in the market in terms of payment in Nigeria with that volume, and have a major size of the market share to count. So that's the comment for OK. You have a very good question about cookie and also removing the third-party cookie. I guess my high-level comment is that as you know, we work very closely from Google and some of the major players in all the areas. So I would almost say that we have weekly meetings with them to think it up. So, yeah, so I think the high-level comment would just be that we are closely monitoring this. We are following all the major practice in the ecosystem, and we will just be part of that same ecosystem moving forward. I guess that's the best answer probably for now.

And, Sarah, I mean, just in a high-level comment, you know, we are a Norwegian browser company, and a comment that I would make is Norway has very strict data laws. So, you know, a lot of the privacy stuff within our browser, we've been, you know, practicing for a long time, you know, and when it comes to our browser revenue, you know, it's really search revenue and it's, um, advertising revenue, but it's done through, you know, affiliate deals. So for example, if we have a bookmark and you book a travel through booking, so, you know, obviously, um, we, we are less impacted because of that versus other folks. I mean, obviously there's still a lot to be seen and, um, We'll see how it rolls out and see where the impacts happen or don't happen. But I think given where today the majority of our revenue is coming from, I think we feel pretty confident we're in a good place.

Okay. And can I just ask with Opay, how do you distribute it? Or rather, what's your marketing strategy? How come it's so big? Who are your distribution partners?

Yeah, so, yeah, it's only hell. And again, like, it's almost to be answered by OPEC guys, not us, but since I work in Nigeria all the time, my comment here would just be that, you know, OPEC is actually, it's a bit, I think it's actually a bit different than, you know, whatever in developed markets. So how it works is that it's actually a model, well, you know, because in Nigeria's situation, there's a lack of infrastructure, and there's no banks, no branches, and this is. So actually, OPEC works by creating a huge network of distributors, 300,000 of them. There might be more actually, but for what I remember, they have more than 300,000 distributors. You view them as a separate bank branch almost across Nigeria. So wherever people want to do some transaction, they just go to those agents, and then you can do all things you like, like get money out, get money in, transfer money, buy, pay electricity, pay whatever. So, I think that's actually the starting point that they actually solved the major issue of the infrastructure that, you know, they are facilitating the transaction of cash into, you know, electronic money and vice versa and also even money transfer among other things. So, I think that's what they are doing. And on Pope, because they have that huge infrastructure, they're providing all the other services like then you can, of course, naturally pay electricity or transfer money in the same way as what you do as other eWallet. So yeah, but I think why that's so big is actually because of the infrastructure that they are providing, which is huge, and not only just e-commerce or some others which have been on the Pope.

Just to clarify, so there's the online wallet users which generate a certain transaction volume, and then they generate transaction volume through point of sale, through the, as Song said, that distribution network.

Yeah, so the strength to manage and to merge is offline to online.

The other thing I'll say is I think, you know, I think in the near term they'll probably be a little more public with some of the things they're doing and talk a little more. So we'll let them do that. But we're really pleased with what they're doing and their growth has been phenomenal.

Yeah. Okay. That's super helpful. Thank you very much.

Again, if you would like to ask a question, please press star then the number one on your telephone keypad. That's star one. Our next question comes from Xiaodan Zhang with CICC.

Xiaodan Zhang Okay, thanks, management, for taking my questions. And this is Xiaodan from CICC Research, and congratulations on the strong fourth quarter results. So my first question is regarding our full year 2021 guidance. So I just wonder if it has to incorporate the revenue contributions from our new initiatives, such as the newly acquired gaming company. And my second question is regarding our near to mid-term business strategy. So just wonder, going forward, what will be the primary focus in terms of like building the ecosystem or doing investments in the next few years? Thanks.

Hi, Frode here. Maybe I can begin. So relative to our growth in 2021, as I discussed, this is predominantly driven by our existing products, our existing core, Opera News most importantly, and the geographic expansion and monetization efforts that we are doing around Opera News and our browsers. We have been very cautious to build in much upside from new initiatives such as gaming and European FinTech in 2021. We include all the costs that we expect to have, but those two, I would say, financially speaking, I would expect to be more material next year rather than this year. So in terms of near-term strategy, common for me is really set these new businesses up for success and for ramp, and then operational focus around our core and how we can expand that. I don't know, Song, if you have anything to add.

Thanks. Yeah, no, it's just exactly as what you're saying. I think it's just a great opportunity to grow our core business, both the browser and the news, while incubating the gaming and fintech initiatives.

Okay, thank you.

All right.

At this time, there are no additional questions. I would like to hand the call back over to Son Lin for additional closing remarks.

Yeah, sure. So, like, you know, all right. That's all for today. We ended 2020 really strongly. And 2021 is really off to a good start. You know, our core business continues to do really well. And as we discussed, our new opportunities have come from us. So we look forward to keeping you updated along the way. And again, thanks for all the support that has been given in the past few years. And have a good rest of the day, everyone. Thank you.

Thank you. This concludes today's conference. You may now disconnect.