Q4 2024 OneSpan Inc Earnings Call Transcript

Feb 27, 2025 / 09:30 PM GMT

Release Date Price: $16.22 (-2.29%)

Transcript 10-K8-K

Key Points

Positve

OneSpan Inc (OSPN) 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

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.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

OSPN.OQ - OneSpan Inc
Q4 2024 OneSpan Inc Earnings Call
Feb 27, 2025 / 09:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by. Welcome to the Q4 2024 1 span earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session.

To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised.

To withdraw your question, please press 11 again.

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. Please.

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