Q2 2024 OneSpan Inc Earnings Call Transcript
Key Points
- OneSpan Inc (OSPN) reported a 9% year-over-year revenue growth in Q2 2024.
- Annual Recurring Revenue (ARR) grew by 15%, reaching $165 million.
- Adjusted EBITDA was $16 million, representing 27% of revenue.
- The company generated $2 million in cash from operations, a significant improvement from the previous year's $20 million cash usage.
- The sales team performed well, with bookings exceeding internal plans and a strong focus on customer feedback.
- Maintenance revenue is expected to decline due to the end of life of the Dealflo product and perpetual to term conversions.
- Hardware revenue is anticipated to decline in the second half of the year compared to the prior year.
- The third quarter is typically a weaker bookings quarter due to seasonality.
- Gross margins in the digital agreements business unit were impacted by one-time costs related to discontinuing R&D investments in the Trust Vault blockchain product.
- The macroeconomic environment, particularly in Europe, remains challenging, which could impact future performance.
Good day and thank you for standing by. Welcome to the Q2 2024 OneSpan earnings conference call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Joe Maxa, Vice President of Investor Relations.
Thank you, operator. Good afternoon, everyone, and welcome to the OneSpan second-quarter 2024 earnings conference call. This call is being webcast and can be accessed on the Investor Relations section of OneSpan's website at investors.onespan.com.
This afternoon, after market close, OneSpan issued a press release and filed a Form 8-K with the SEC announcing results for our second quarter 2024. In addition, the company plans to file a separate Form 8-K this afternoon announcing the appointment of Victor Limongelli as President and CEO.
Victor has been the company's interim CEO since January 4, 2024. To access a copy of the press release, Form 8-Ks, and other investor
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