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 performanc...
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
Financial Outlook
For the Full Year 2024, OneSpan expects:
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 STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||
| Three Months Ended March 31, | ||||||
| 2024 |
| 2023 | ||||
Revenue |
|
|
| ||||
Product and license | $ | 37,798 |
| $ | 33,146 |
| |
Services and other |
| 27,045 |
|
|
| 24,461 |
|
Total revenue |
| 64,843 |
|
|
| 57,607 |
|
|
|
|
| ||||
Cost of goods sold |
|
|
| ||||
Product and license |
| 9,706 |
|
|
| 11,288 |
|
Services and other |
| 7,742 |
|
|
| 7,033 |
|
Total cost of goods sold |
| 17,448 |
|
|
| 18,321 |
|
|
|
|
| ||||
Gross profit |
| 47,395 |
|
|
| 39,286 |
|
|
|
|
| ||||
Operating costs |
|
|
| ||||
Sales and marketing |
| 12,927 |
|
|
| 20,011 |
|
Research and development |
| 8,259 |
|
|
| 9,463 |
|
General and administrative |
| 10,007 |
|
|
| 16,653 |
|
Restructuring and other related charges |
| 1,497 |
|
|
| 706 |
|
Amortization of intangible assets |
| 595 |
|
|
| 583 |
|
Total operating costs |
| 33,285 |
|
|
| 47,416 |
|
|
|
|
| ||||
Operating income (loss) |
| 14,110 |
|
|
| (8,130 | ) |
|
|
|
| ||||
Interest income, net |
| 101 |
|
|
| 503 |
|
Other income (expense), net |
| 291 |
|
|
| (40 | ) |
|
|
|
| ||||
Income (loss) before income taxes |
| 14,502 |
|
|
| (7,667 | ) |
Provision for income taxes |
| 1,034 |
|
|
| 689 |
|
|
|
|
| ||||
Net income (loss) | $ | 13,468 |
|
| $ | (8,356 | ) |
|
|
|
| ||||
Net income (loss) per share |
|
|
| ||||
Basic | $ | 0.35 |
|
| $ | (0.21 | ) |
Diluted | $ | 0.35 |
|
| $ | (0.21 | ) |
|
|
|
| ||||
Weighted average common shares outstanding |
|
|
| ||||
Basic |
| 38,060 |
|
|
| 40,057 |
|
Diluted |
| 38,463 |
|
|
| 40,057 |
|
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 newsLast News25 Italian Startups Will Be Present at Expand North Star 2024Scheduled for October, the world's largest startup event will bring together more than 2,000 exhibitors in Dubai, UAE Partitalia: Italian IoT innovation in San FranciscoThe Italian IoT company is in the US for the second phase of CALL4INNOVIT Sparkle works on environmentally sustainable content distributionThe Italian company partners with MainStreaming for high-performance, energy-efficient video streaming Libraesva: being specialized is ok again in cybersecuritySoftware vendors developing vertical solutions against specific attack vectors are 'cool' again. And when it comes to email security, all companies now… Most readNew Zealand Buy Now Pay Later Business and Investment Opportunities Databook…The "New Zealand Buy Now Pay Later Business and Investment Opportunities Databook - Q2 2024 Update" report has been added to ResearchAndMarkets.com's… Kenya Buy Now Pay Later Business Report 2024: BNPL Payments to Grow by…The "Kenya Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis,… Median Technologies to host two webcasts on September 5, 2024Regulatory News: Median Technologies (FR0011049824, ALMDT, PEA/SME eligible, “Median” or “The Company”) will host two live webcasts on September 5, 2024.… Mark Lawyer Joins RWS’s Executive Team as President of Regulated Industries…RWS, a unique, world-leading provider of technology-enabled language, content and intellectual property solutions, announces that Mark Lawyer has joined… G11 Media Networks |