So we are very excited about it. We think it’s only a very beginning stage. And also for products like Opera One powered by AI for instance, it’s a very like again, tailored for a very sophisticated user base. And again, it’s also in the early stage. So I think, yes, we still have a lot of room to grow. And the other comment, I guess is just that, of course, be aware that even if those we still have a, you know, a huge amount of users which are not in the area of categorized by, let’s say Western market, but of course they are also, you know, have lots of potentials, especially with AI, both for potential uplift and also for potential. That market is also evolving, right? So I would also say we are in a very nice mix of both. We still have a lot of room to grow for the Western market.
We are still and very early stage, but we are also in a very good position that when those emerging market users mature, we can also capture the right part of it. So I think from both angles we are quite optimistic on this and that’s also why I think our number one focus is still to keep evolving our product and get more users, because in the end that would always be key and provide all the basis.
Lance Vitanza: Great. Thank you for that. And then a couple of other questions, if I may. The next one is on the cash position, which at $98 million that came in a little bit better than our, I think, we were looking for $90 million. And so I’m just wondering, I know, you mentioned there were no share repurchases. So that was part of the delta. I think we still — we were still expecting maybe a couple of share repurchases in the quarter. But was there any other onetime items that sort of favorably added to your cash position in the quarter? Anything there that’s worth calling out?
Frode Jacobsen: No, I would say the cash flow of the quarter was actually very straightforward. We sort of increase in AR and AP offsetting one another. Q2 and Q4 will be the same. Those are the taxpaying quarters. So there’s a tax component in there meaning that actually the conversion from adjusted EBITDA to cash flow is best in Q1 and Q3. So I think it followed our internal expectations. Keep in mind that the dividend that was issued in June was payable in July. So that $11 million is still included in the cash on June 30th.
Lance Vitanza: Okay. Thank you. I had one other question. In the press release, it mentioned something on the noncash comp that I couldn’t quite follow. Share-based remuneration includes grants made by Opera’s majority shareholder made by Opera’s majority shareholders. I wasn’t quite sure what that meant. And it goes on to say that it represents an expense even though Opera has no obligation in connection with these grants and that they do not represent dilution for Opera’s shareholders. I’m not sure that I’ve seen that before. Can you expand upon that for a minute?
Frode Jacobsen: Yes, sure, I’ll do that. So Kunlun as the biggest Opera shareholder has issued grants in Kunlun, and they consolidate Opera holding more than 50% to some of our staff members. Opera has no expense with that. Once those grants vest and become exercised, they will not lead to any dilution for Opera shareholders. But at least in IFRS, which we present according to we are supposed to reflect the fair value of the grants that are awarded to Opera’s employees, even though it has no practical implication for us.
Lance Vitanza: Okay. Interesting. And then last question for me, if I’m looking at it. So the guidance for the third quarter the 15% revenue growth at the midpoint, that checks out, but then the EBITDA at around $19 million to $21 million. Didn’t you report a little bit, I think EBITDA in the third quarter of ’22 was $21 million. Is that right? And so I’m just trying to figure out, 15% growth, EBITDA is not really scaling. So was there something, remind me, was there some sort of onetime good guy in the 3Q ’22 numbers that we need to be sort of backing out of our math when we think about the year-on-year EBITDA comp?
Frode Jacobsen: I think the key thing is to look at our communication around expenses. And the biggest factor that changes throughout the year is when and how we spend our marketing dollars. So we have sort of maintained our expectation for our total spend and always communicated that it would be most or we would increase it in second half relative to first half, simply because of our scaling on GX and how that evolves and the launch of Opera One and sort of having that out in the market and learning the lessons before we take out the full potential on the marketing. So I would almost say the opposite that, I mean, we are increasing our adjusted EBITDA expectations quite meaningfully after the strong Q2 relative to what we had guided for the year before. So we actually feel very good about it. It’s just a conscious decision about when in the year we spend the marketing and when we think we get the best return on that spend.
Lin Song: Yeah, maybe add a little bit more like same as Frode a positive note is also that it’s almost like we are almost performing well ahead of our guidance in the first half that we feel that of course if we want we can have more legroom, right, of building up more user base because of course in the end of the day that will yield even more revenue and profit in the future. So that’s I think that’s what we baked in our guidance. But then of course, in the end of the day, if you always, you know, reflective of how what’s our profile and how we actually assess this will benefit from us in the long run. But it’s nice to actually be able to have that room.
Lance Vitanza: Understood. Yes. And I guess then just to sort of put a final point on this, are you seeing anything that would make you feel that the sort of the longer-term EBITDA margin targets are under any pressure?
Frode Jacobsen: No, I think this is progressing well according to expectations and sort of we feel comfortable about the level that we operate on.
Lance Vitanza: Perfect. Okay. Thanks, guys.
Operator: [Operator Instructions] We’ll take our next question from Alicia Yap with Citigroup. Your line is open.
Katrina Chiu: Hi. Thanks management for taking my questions. This is Katrina Chiu from Citigroup asking on behalf of Alicia Yap. I have two questions. First, would management be able to provide some color on what level of incremental revenue opportunities we could expect to see coming out from our embeded AI feature in Opera browser in the next 12 to 18 months. Second, are there any additional investments we expect to incur as related to the AI that will have some pressure in expenses and how will that be affecting our EBITDA trend going forward, if any? Thank you.
