NASDAQ$OSPN

OneSpan Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong subscription growth, profitability, and cash generation.

OneSpan reported a decrease in revenue by 4% year-over-year, but demonstrated strong growth in subscription revenue and improved profitability. The company's focus on operational efficiency led to increased operating income and net income compared to the same quarter last year.

  • Total revenue was $56.2 million, a 4% decrease compared to the same quarter of 2023.
  • Subscription revenue increased 29% year-over-year to $33.6 million.
  • Operating income was $11.3 million, compared to an operating loss of $4.8 million in the same period last year.
  • Net income was $8.3 million, or $0.21 per diluted share, compared to a net loss of $4.1 million, or $(0.10) per diluted share, in the same period last year.

Headline financials

Total Revenue

$56.2M

Previous: $58.8M-4.4%
EPS

$0.21

Previous: $0.09+133.3%
Annual Recurring Revenue

$164M

No prior period
Adjusted EBITDA

$17M

No prior period
Subscription Revenue

$33.6M

No prior period
Capital Expenditures

-$7.27M

Previous: -$9.04M+19.5%
Free Cash Flow

$1M

Previous: -$13.2M+107.6%
Net Income

$8.27M

Previous: -$4.13M+300.2%
Operating Income

$11.3M

Previous: -$4.79M+334.7%
Gross Profit

$41.5M

Previous: $40.7M+2.2%
R&D Expense

$7.53M

Previous: $10.1M-25.7%
Stock-Based Comp

$2.66M

Previous: $1.88M+41.8%

Revenue & EPS history

OneSpan · Revenue · Quarterly

$56.2M

Q3 2024-4.4%vs Q3 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

OneSpan · $58.8M total across 2 segments · Q3 2023

  • Security Solutions
    $45.8M+2.0%
  • Digital Agreements
    $13M+6.7%

Forward guidance

For the full year 2024, OneSpan is narrowing the range of its previously issued revenue guidance to reflect a reduction in anticipated hardware token shipments, partially offset by stronger than previously expected subscription revenues. The Company is affirming its ARR guidance and is increasing its Adjusted EBITDA guidance to reflect stronger than originally anticipated operating leverage driven by improved execution of its cost savings initiatives.

Tailwinds

  • Revenue to be in the range of $238 million to $242 million.
  • ARR to finish the year in the range of $166 million to $170 million.
  • Adjusted EBITDA to be in the range of $65 million to $67 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.2%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+2.2%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+35.6%

Q3 2014

Best reaction

-37.0%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%+4.0%+25.7%
Q4 2025-2.7%-7.4%-10.7%
Q3 2025-20.3%-20.3%-21.3%
Q1 2025+2.4%+6.5%+8.7%
Q4 2024-1.1%+2.8%-4.7%
Q3 2024+11.9%+11.9%+21.5%
Q2 2024-1.9%+0.5%+8.9%
Q1 2024+13.5%+10.7%+20.6%
Q4 2023+24.5%+1.3%+20.5%
Q3 2023+9.7%+18.1%+20.3%
Q2 2023-20.5%-15.3%-14.8%
Q1 2023-0.3%+5.4%+16.7%
Q4 2022+26.0%+43.0%+28.2%
Q3 2022+5.8%+6.0%+22.5%
Q2 2022-1.3%-2.5%-2.0%
Q1 2022+1.3%-15.5%-3.4%
Q4 2021-18.3%-15.7%-11.3%
Q3 2021+3.4%+2.6%-17.0%
Q2 2021-25.1%-24.6%-22.9%
Q1 2021-2.6%-2.4%-3.6%
Q4 2020-4.9%-7.6%-4.0%
Q3 2020-17.0%-13.1%-7.4%
Q2 2020-37.0%-36.5%-31.0%
Q1 2020+17.6%+20.3%+26.4%
Q4 2019+10.5%-9.0%+4.5%
Q3 2019+25.5%+20.8%+20.2%
Q2 2019-5.8%-8.7%-15.2%
Q1 2019-16.6%-18.9%-24.4%
Q4 2018+19.6%+25.2%+24.1%
Q3 2018-12.8%-8.5%-1.1%
Q2 2018-9.1%-20.1%-9.8%
Q1 2018+19.9%+24.8%+27.5%
Q4 2017-12.2%-11.5%-7.9%
Q3 2017+11.2%+12.4%+10.7%
Q2 2017-2.5%-4.3%-13.8%
Q1 2017-1.1%+2.2%+3.3%
Q4 2016-11.8%-13.3%-12.9%
Q3 2016-3.1%-4.9%+6.3%
Q2 2016-4.6%-3.3%+6.9%
Q1 2016-1.0%
Q4 2015-0.4%
Q3 2015+7.6%
Q2 2015-18.6%
Q1 2015+4.2%
Q4 2014-2.8%
Q3 2014+35.6%
Q2 2014+12.8%
Q1 2014+34.4%
Q4 2013+18.6%
Q3 2013+2.1%
Q2 2013-6.5%
Q1 2013-0.2%
Q4 2012+1.0%
Q3 2012+0.1%
Q2 2012+26.5%
Q1 2011-1.7%
Q1 2012+0.0%
Q4 2011+2.2%
Q4 2009+2.2%
Q3 2010-6.6%
Q3 2011-6.6%
Q4 2010-0.6%
Q2 2010-0.6%
Q2 2011-0.6%
Q1 2010+4.2%

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