OneSpan (OSPN, Financial) has reported its first-quarter revenue, reaching $63.4 million, surpassing the market's expected $62.6 million. The company's CEO, Victor Limongelli, highlighted that this quarter marked a milestone with record high operating income and significant cash generation. Limongelli emphasized the team's success in refining the cost structure while building the company's future. Moving forward, OneSpan is committed to maintaining operational excellence, aiming for efficient revenue growth and enhanced profitability over the long term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for OneSpan Inc (OSPN, Financial) is $19.33 with a high estimate of $23.00 and a low estimate of $15.00. The average target implies an upside of 31.88% from the current price of $14.66. More detailed estimate data can be found on the OneSpan Inc (OSPN) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, OneSpan Inc's (OSPN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for OneSpan Inc (OSPN, Financial) in one year is $14.52, suggesting a downside of 0.95% from the current price of $14.66. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the OneSpan Inc (OSPN) Summary page.
OSPN Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OneSpan Inc (OSPN, Financial) achieved record high adjusted EBITDA in Q4 and for the full year 2024, with Q4 adjusted EBITDA at $20 million or 32% of revenue.
- Annual Recurring Revenue (ARR) grew 8.5% to $168 million, with digital agreements growing by 12% and security by 6%.
- Subscription revenue grew over 30% for both the quarter and the year, accounting for 57% of total revenue, a 12% increase year over year.
- The company generated $12 million in cash from operations in Q4 and $56 million for the year, a significant improvement from the previous year.
- OneSpan Inc (OSPN) completed multi-year cost savings initiatives, resulting in increased profitability and operational efficiency.
Negative Points
- Total revenue declined by 3% in Q4, despite a 3% growth for the year, due to a decline in hardware and maintenance revenue.
- Hardware revenue declined significantly, with a 36% drop in Q4 and a 23% decline for the full year, impacting overall revenue.
- The transition to SaaS and term software licenses led to a decline in maintenance and support revenues.
- Gross profit margin for digital agreements decreased due to higher cloud platform costs and lower maintenance revenue.
- The company anticipates continued decline in hardware revenues in 2025, impacting overall revenue growth.
