• First quarter revenue grew 13% year-over-year to $64.8 million
• First quarter subscription revenue grew 34% year-over-year to $40.0 million
• Annual Recurring Revenue (ARR) increased 9% year-over-year to $154.6 million1
• Net Retention Rate (NRR) of 107%2

BOSTON: OneSpan Inc. (NASDAQ: OSPN), the digital agreements security company, today reported financial results for the first quarter ended March 31, 2024.

“I am very proud of the OneSpan team’s performance in the first quarter, which resulted in a strong topline, enhanced profitability and positive cash flow generation,” stated OneSpan interim CEO, Victor Limongelli. “Since I’ve taken the helm in January, we have continued to find opportunities for additional cost reductions, as well as operational efficiencies later in the year, totaling incremental savings of approximately $10 million on an annualized basis. These savings, combined with our strong Q1 performance, gives us confidence that we will exceed our previously communicated Adjusted EBITDA guidance. Looking ahead, we will continue to focus on driving efficient revenue growth, profitability and cash flow as we work to improve our long-term operating profile.”

First Quarter 2024 Financial Highlights

• Total revenue was $64.8 million, an increase of 13% compared to $57.6 million for the same quarter of 2023. Digital Agreements revenue was $14.4 million, an increase of 25% year-over-year. Security Solutions revenue was $50.4 million, an increase of 9% year-over-year.
• ARR increased 9% year-over-year to $154.6 million.
• Gross profit was $47.4 million, or 73% gross margin, compared to $39.3 million, or 68% in the same period last year.
• Operating income was $14.1 million, compared to operating loss of $8.1 million in the same period last year.
• Net income was $13.5 million, or $0.35 per diluted share, compared to net loss of $8.4 million, or $0.21 per diluted share, in the same period last year. Non-GAAP net income was $16.7 million, or $0.43 per diluted share, compared to net loss of $3.7 million, or $0.09 per diluted share in the same period last year.3
• Adjusted EBITDA was $19.8 million, compared to $(1.6) million in the same period last year.
• Cash and cash equivalents were $63.9 million at March 31, 2024 compared to $42.5 million at December 31, 2023.

Financial Outlook

For the Full Year 2024, OneSpan expects:

• Revenue to be in the range of $238 million to $246 million.
• ARR to finish the year in the range of $160 million to $168 million.
• Adjusted EBITDA to be in the range of $51 million to $55 million, compared to our previous guidance range of $47 million to $52 million.3

Conference Call Details

In conjunction with this announcement, OneSpan Inc. will host a conference call today, May 2, 2024, at 4:30 p.m. EDT. During the conference call, Mr. Victor Limongelli, Interim CEO, and Mr. Jorge Martell, CFO, will discuss OneSpan’s results for the first quarter 2024.

For investors and analysts accessing the conference call by phone, please refer to the press release dated April 9, 2024, announcing the date of OneSpan’s first quarter 2024 earnings release. It can be found on the OneSpan investor relations website at investors.onespan.com.

The conference call is also available in listen-only mode at investors.onespan.com. Shortly after the conclusion of the call, a replay of the webcast will be available on the same website for approximately one year.

____________________________________________

About OneSpan

OneSpan provides security, identity, electronic signature (“e-signature”) and digital workflow solutions that protect and facilitate digital transactions and agreements. The Company delivers products and services that automate and secure customer-facing and revenue-generating business processes for use cases ranging from simple transactions to workflows that are complex or require higher levels of security. Trusted by global blue-chip enterprises, including more than 60% of the world’s largest 100 banks, OneSpan processes millions of digital agreements and billions of transactions in 100+ countries annually.

For more information, go to www.onespan.com. You can also follow @OneSpan on Twitter or visit us on LinkedIn and Facebook.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding our 2024 financial guidance and our plans to continue to focus on driving efficient revenue growth, profitability and cash flow as we work to improve our long-term operating profile; and our general expectations regarding our operational or financial performance in the future. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", “expect", "intend", "continue", "outlook", "may", "will", "should", "could", or "might", and other similar expressions. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could materially affect our business and financial results include, but are not limited to: our ability to execute our updated strategic transformation plan and cost reduction and restructuring actions in the expected timeframe and to achieve the outcomes we expect from them; unintended costs and consequences of our cost reduction and restructuring actions, including higher than anticipated restructuring charges, disruption to our operations, litigation or regulatory actions, reduced employee morale, attrition of valued employees, adverse effects on our reputation as an employer, loss of institutional know-how, slower customer service response times, and reduced ability to complete or undertake new product development projects and other business, product, technical, compliance or risk mitigation initiatives; our ability to attract new customers and retain and expand sales to existing customers; our ability to successfully develop and market new product offerings and product enhancements; changes in customer requirements; the potential effects of technological changes; the loss of one or more large customers; difficulties enhancing and maintaining our brand recognition; competition; lengthy sales cycles; challenges retaining key employees and successfully hiring and training qualified new employees; security breaches or cyber-attacks; real or perceived malfunctions or errors in our products; interruptions or delays in the performance of our products and solutions; reliance on third parties for certain products and data center services; our ability to effectively manage third party partnerships, acquisitions, divestitures, alliances, or joint ventures; economic recession, inflation, and political instability; claims that we have infringed the intellectual property rights of others; price competitive bidding; changing laws, government regulations or policies; pressures on price levels; component shortages; delays and disruption in global transportation and supply chains; impairment of goodwill or amortizable intangible assets causing a significant charge to earnings; actions of activist stockholders; and exposure to increased economic and operational uncertainties from operating a global business, as well as other factors described in the “Risk Factors” section of our most recent Annual Report on Form 10-K, as updated by the “Risk Factors” section of our subsequent Quarterly Reports on Form 10-Q (if any). Our filings with the Securities and Exchange Commission (the “SEC”) and other important information can be found in the Investor Relations section of our website at investors.onespan.com. We do not have any intent, and disclaim any obligation, to update the forward-looking information to reflect events that occur, circumstances that exist or changes in our expectations after the date of this press release, except as required by law.

Unless otherwise noted, references in this press release to “OneSpan”, “Company”, “we”, “our”, and “us” refer to OneSpan Inc. and its subsidiaries.

OneSpan Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, unaudited)
	March 31,				December 31,
	2024				2023
ASSETS
Current assets
Cash and cash equivalents	$	63,859			$	42,493
Restricted cash		1,022				1,037
Accounts receivable, net of allowances of $1,472 at March 31, 2024 and $1,536 at December 31, 2023		32,382				64,387
Inventories, net		14,594				15,553
Prepaid expenses		6,835				6,575
Contract assets		4,867				5,139
Other current assets		10,608				11,159
Total current assets		134,167				146,343
Property and equipment, net		20,346				18,722
Operating lease right-of-use assets		6,215				6,171
Goodwill		93,069				93,684
Intangible assets, net of accumulated amortization		10,146				10,832
Deferred income taxes		1,682				1,721
Other assets		11,517				11,718
Total assets	$	277,142			$	289,191	If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news Global Business VoIP Services Strategic Market Report 2024-2030: Shifting of Voice Traffic Away from PSTN to Mobile and Internet Networks Paves the Way for the Emergence of VoIP - ResearchAndMarkets.com Bakkt Schedules Conference Call to Discuss Second Quarter 2024 Results Globalstar, Inc. Earnings Release and Call Notice Federman & Sherwood Investigates The Medibase Group, Inc. on behalf of Self Regional Healthcare for Data Breach Veteran Senior Product Leader Allison Lambert-Morton Joins CareHive Vívaro Providing Live Media Transport Services at the Paris 2024 Summer Olympics for Leading Broadcasters Offer Update LambdaTest Unveils Live Inspect for Enhanced App Automation Testing Last News Sparkle works on environmentally sustainable content distribution The Italian company partners with MainStreaming for high-performance, energy-efficient video streaming Libraesva: being specialized is ok again in cybersecurity Software vendors developing vertical solutions against specific attack vectors are 'cool' again. And when it comes to email security, all companies now… Fintech: Links tests the use of exponential technologies in the banking… Links Management and Technology just concluded the testing phase of a research project focused on banking transformation Axyon AI: Italian Artificial Intelligence for Finance applications Axyon AI offers an AI platform specifically designed for asset management, with several interesting strengths for those approaching machine/deep learning… Most read Transact Campus Rolls Out Mobile Credential Technology at the University… Transact Campus, (“Transact”) the award winning leader in innovative mobile credential and payment solutions for a connected campus, today announced the… New Emburse Research Finds Strong Link Between Managing Travel Spend and… Emburse, whose innovative travel and expense (T&E) solutions power forward-thinking organizations, today launched survey findings revealing an even… Keysight and University of Malaga’s MobileNet join forces to Accelerate… $KEYS #5G--Keysight Technologies, Inc. (NYSE: KEYS) announces that the University of Malaga, specifically the MobileNet: Mobile & Aerospace Networks… Emburse Unveils Next Generation of Travel and Expense Technology at GBTA… Emburse, whose leading travel and expense solutions power forward-thinking organizations, continues its innovative track record by unveiling its vision… Newsletter signup Join our mailing list to get weekly updates delivered to your inbox. Sign me up! G11 Media Networks BitCity ChannelCity ImpresaCity SecurityOpenLab GreenCity ImpresaGreen ItalianChannelAwards AgendaIct Home Newsletter Staff Copyright Contact us InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , n. 21/2007 del 11/10/2007- Registration ROC n. 15698 G11 MEDIA S.R.L. Registered office Via NUOVA VALASSINA, 4 22046 MERONE (CO) - P.IVA/C.F.03062910132 Como business register n. 03062910132 - REA n. 293834 CAPITALE SOCIALE Euro 30.000 i.v. Cookie Privacy