Second Quarter Financial Results
- Second quarter revenue grew 9% year-over-year to $60.9
million
- Second quarter subscription revenue grew 29% year-over-year to
$29.6 million
- Annual Recurring Revenue (ARR) increased 15% year-over-year to
$165.3 million1
- Net Retention Rate (NRR) of 112%2
OneSpan Inc. (NASDAQ: OSPN), the digital agreements security
company, today reported financial results for the second quarter
ended June 30, 2024.
“I’m extremely proud of our team, as their hard work and
continued focus on operational rigor delivered a strong quarter
with 9% revenue growth, 15% ARR growth, and significantly improved
profitability,” stated OneSpan CEO, Victor Limongelli. “Looking
ahead, we will continue to focus on driving efficient revenue
growth, profitability, and cash flow as we continue to work to
improve our long-term operating profile.”
Second Quarter 2024 Financial Highlights
- Total revenue was $60.9 million, an increase of 9%
compared to $55.7 million for the same quarter of 2023. Digital
Agreements revenue was $15.5 million, an increase of 30%
year-over-year. Security Solutions revenue was $45.5 million, an
increase of 4% year-over-year.
- ARR increased 15% year-over-year to $165.3 million.
- Gross profit was $40.3 million, or 66% gross margin,
compared to $34.3 million, or 62% in the same period last
year.
- Operating income was $7.6 million, compared to operating
loss of $17.8 million in the same period last year.
- Net income was $6.6 million, or $0.17 per diluted share,
compared to net loss of $17.8 million, or $(0.44) per diluted
share, in the same period last year. Non-GAAP net income was $12.0
million, or $0.31 per diluted share, compared to net loss of $7.3
million, or $(0.18) per diluted share in the same period last
year.3
- Adjusted EBITDA was $16.1 million, compared to $(3.8)
million in the same period last year.
- Cash and cash equivalents were $63.8 million at June 30,
2024 compared to $43.0 million at December 31, 2023.
Financial Outlook
For the Full Year 2024, OneSpan expects:
- Revenue to be in the range of $238 million to $246
million.
- ARR to finish the year in the range of $166 million to $170
million, as compared to its previous guidance range of $160 million
to $168 million.
- Adjusted EBITDA to be in the range of $55 million to $59
million, as compared to its previous guidance range of $51 million
to $55 million.3
Conference Call Details
In conjunction with this announcement, OneSpan Inc. will host a
conference call today, August 1, 2024, at 4:30 p.m. ET. During the
conference call, Mr. Victor Limongelli, CEO, and Mr. Jorge Martell,
CFO, will discuss OneSpan’s results for the second quarter
2024.
For investors and analysts accessing the conference call by
phone, please refer to the press release dated July 9, 2024,
announcing the date of OneSpan’s second 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.
____________________________________________
- ARR is calculated as the approximate annualized value of our
customer recurring contracts as of the measurement date. These
include subscription, term-based license, and maintenance and
support contracts and exclude one-time fees. To the extent that we
are negotiating a renewal with a customer within 90 days after the
expiration of a recurring contract, we continue to include that
revenue in ARR if we are actively in discussion with the customer
for a new recurring contract or renewal and the customer has not
notified us of an intention to not renew. See our Quarterly Report
on Form 10-Q for the quarter ended June 30, 2024 for additional
information describing how we define ARR, including how ARR differs
from GAAP revenue.
- NRR is defined as the approximate year-over-year growth in ARR
from the same set of customers at the end of the prior year
period.
- An explanation of the use of Non-GAAP financial measures is
included below under the heading “Non-GAAP Financial Measures.” A
reconciliation of each Non-GAAP financial measure to the most
directly comparable GAAP financial measure has also been provided
in the tables below. We are not providing a reconciliation of
Adjusted EBITDA guidance to GAAP net income, the most directly
comparable GAAP measure, because we are unable to predict certain
items included in GAAP net income without unreasonable
efforts.
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 100
largest 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 X (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 business 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
Product and license
$
32,438
$
30,583
$
70,236
$
63,729
Services and other
28,486
25,150
55,531
49,611
Total revenue
60,924
55,733
125,767
113,340
Cost of goods sold
Product and license
11,247
14,038
20,953
25,326
Services and other
9,336
7,401
17,078
14,434
Total cost of goods sold
20,583
21,439
38,031
39,760
Gross profit
40,341
34,294
87,736
73,580
Operating costs
Sales and marketing
10,510
19,713
23,437
39,724
Research and development
8,341
10,090
16,600
19,553
General and administrative
11,557
15,826
21,564
32,479
Restructuring and other related
charges
1,711
5,846
3,208
6,552
Amortization of intangible assets
585
583
1,180
1,166
Total operating costs
32,704
52,058
65,989
99,474
Operating income (loss)
7,637
(17,764
)
21,747
(25,894
)
Interest income, net
521
585
622
1,088
Other income (expense), net
331
29
622
(11
)
Income (loss) before income taxes
8,489
(17,150
)
22,991
(24,817
)
Provision for income taxes
1,936
601
2,970
1,290
Net income (loss)
$
6,553
$
(17,751
)
$
20,021
$
(26,107
)
Net income (loss) per share
Basic
$
0.17
$
(0.44
)
$
0.52
$
(0.65
)
Diluted
$
0.17
$
(0.44
)
$
0.52
$
(0.65
)
Weighted average common shares
outstanding
Basic
38,529
40,399
38,229
40,435
Diluted
39,007
40,399
38,680
40,435
OneSpan Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands,
unaudited)
June 30,
December 31,
2024
2023
ASSETS
Current assets
Cash and cash equivalents
$
63,843
$
43,001
Restricted cash
460
529
Accounts receivable, net of allowances of
$1,506 at June 30, 2024 and $1,536 at December 31, 2023
43,799
64,387
Inventories, net
12,507
15,553
Prepaid expenses
6,126
6,575
Contract assets
6,036
5,139
Other current assets
11,096
11,159
Total current assets
143,867
146,343
Property and equipment, net
20,251
18,722
Operating lease right-of-use assets
7,262
6,171
Goodwill
93,072
93,684
Intangible assets, net of accumulated
amortization
8,679
10,832
Deferred income taxes
1,693
1,721
Other assets
12,039
11,718
Total assets
$
286,863
$
289,191
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
14,593
$
17,452
Deferred revenue
55,928
69,331
Accrued wages and payroll taxes
12,386
14,335
Short-term income taxes payable
2,521
2,646
Other accrued expenses
8,124
10,684
Deferred compensation
151
382
Total current liabilities
93,703
114,830
Long-term deferred revenue
3,374
4,152
Long-term lease liabilities
7,003
6,824
Deferred income taxes
992
1,067
Other long-term liabilities
3,212
3,177
Total liabilities
108,284
130,050
Commitments and contingencies
Stockholders' equity
Preferred stock: 500 shares authorized,
none issued and outstanding at June 30, 2024 and December 31,
2023
—
—
Common stock: $0.001 par value per share,
75,000 shares authorized; 41,510 and 41,243 shares issued; 37,786
and 37,519 shares outstanding at June 30, 2024 and December 31,
2023, respectively
38
38
Additional paid-in capital
120,237
118,620
Treasury stock, at cost: 3,724 shares
outstanding at June 30, 2024 and December 31, 2023
(47,377
)
(47,377
)
Retained earnings
118,960
98,939
Accumulated other comprehensive loss
(13,279
)
(11,079
)
Total stockholders' equity
178,579
159,141
Total liabilities and stockholders'
equity
$
286,863
$
289,191
OneSpan Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands,
unaudited)
Six Months Ended June
30,
2024
2023
Cash flows from operating activities:
Net income (loss)
$
20,021
$
(26,107
)
Adjustments to reconcile net income (loss)
from operations to net cash used in operations:
Depreciation and amortization of
intangible assets
4,145
2,835
Write-off of intangible assets
804
—
Write-off of property and equipment,
net
955
2,087
Impairments of inventories, net
—
1,568
Deferred tax benefit
(108
)
66
Stock-based compensation
3,448
8,315
Allowance for credit losses
(31
)
(49
)
Changes in operating assets and
liabilities:
Accounts receivable
19,877
27,356
Inventories, net
2,621
(4,299
)
Contract assets
(1,666
)
(1,017
)
Accounts payable
(2,634
)
35
Income taxes payable
(107
)
(2,638
)
Accrued expenses
(4,046
)
(1,728
)
Deferred compensation
(231
)
(122
)
Deferred revenue
(13,662
)
(13,940
)
Other assets and liabilities
(124
)
1,248
Net cash provided by (used in) operating
activities
29,262
(6,390
)
Cash flows from investing activities:
Maturities of short-term investments
—
2,330
Additions to property and equipment
(5,321
)
(6,491
)
Additions to intangible assets
(39
)
(14
)
Cash paid for acquisition of business
—
(1,800
)
Net cash used in investing activities
(5,360
)
(5,975
)
Cash flows from financing activities:
Contingent payment related to
acquisition
(200
)
—
Tax payments for restricted stock
issuances
(1,831
)
(1,546
)
Net cash used in financing activities
(2,031
)
(1,546
)
Effect of exchange rate changes on
cash
(1,098
)
624
Net increase (decrease) in cash
20,773
(13,287
)
Cash, cash equivalents, and restricted
cash, beginning of period
43,530
97,374
Cash, cash equivalents, and restricted
cash, end of period
$
64,303
$
84,087
Operating Segments
In May 2022, we announced a three-year strategic transformation
plan that began on January 1, 2023. In conjunction with the
strategic transformation plan and to enable a more efficient
capital deployment model, effective with the quarter ended June 30,
2022, we began reporting under the following two lines of business,
which are our reportable operating segments: Digital Agreements and
Security Solutions.
- Digital Agreements. Digital Agreements consists of
solutions that enable our clients to secure and automate business
processes associated with their digital agreement and customer
transaction lifecycles that require consent, non-repudiation and
compliance. These solutions, which are largely cloud-based, include
OneSpan Sign e-signature, OneSpan Notary, and Identity
Verification. This segment also includes costs attributable to our
transaction cloud platform.
- Security Solutions. Security Solutions consists of our
broad portfolio of software products, software development kits
(SDKs) and Digipass authenticator devices that are used to build
applications designed to defend against attacks on digital
transactions across online environments, devices, and applications.
The software products and SDKs included in the Security Solutions
segment are largely on-premises software products and include
multi-factor authentication and transaction signing solutions, such
as mobile application security and mobile software tokens.
Segment operating income consists of the revenues generated by a
segment, less the direct costs of revenue, sales and marketing,
research and development expenses, amortization expense, and
restructuring and other related charges that are incurred directly
by a segment. Unallocated corporate costs include costs related to
administrative functions that are performed in a centralized manner
that are not attributable to a particular segment.
Segment and consolidated operating
results (unaudited):
Three Months Ended June
30,
Six Months Ended June
30,
(In thousands, except percentages)
2024
2023
2024
2023
Digital Agreements
Revenue
$
15,463
$
11,862
$
29,876
$
23,414
Gross profit (1)
$
9,741
$
8,583
$
19,632
$
17,031
Gross margin
63
%
72
%
66
%
73
%
Operating loss (2)
$
(155
)
$
(7,121
)
$
(420
)
$
(13,154
)
Security Solutions
Revenue
$
45,461
$
43,871
$
95,891
$
89,926
Gross profit (3)
$
30,600
$
25,711
$
68,104
$
56,549
Gross margin
67
%
59
%
71
%
63
%
Operating income (4)
$
20,693
$
8,523
$
46,571
$
24,154
Total Company:
Revenue
$
60,924
$
55,733
$
125,767
$
113,340
Gross profit
$
40,341
$
34,294
$
87,736
$
73,580
Gross margin
66
%
62
%
70
%
65
%
Statements of Operations
reconciliation:
Segment operating income
$
20,538
$
1,402
$
46,151
$
11,000
Corporate operating expenses not allocated
at the segment level
12,901
19,166
24,404
36,894
Operating income (loss)
$
7,637
$
(17,764
)
$
21,747
$
(25,894
)
Interest income, net
521
585
622
1,088
Other income (expense), net
331
29
622
(11
)
Income (loss) before income taxes
$
8,489
$
(17,150
)
$
22,991
$
(24,817
)
(1)
Digital Agreements gross profit includes
intangible asset write-off of $0.8 million and internal capitalized
software write-off of $0.7 million for the three and six months
ended June 30, 2024.
(2)
Digital Agreements operating loss includes
$0.6 million and $1.1 million of amortization of intangible assets
expense for the three and six months ended June 30, 2024,
respectively, and $0.6 million and $1.1 million of amortization of
intangible assets expense for the three and six months ended June
30, 2023, respectively.
(3)
Security Solutions gross profit includes
$1.6 million of inventory impairments related to discontinuation of
investments in our Digipass CX product for the three and six months
ended June 30, 2023.
(4)
Security Solutions operating income
includes $1.6 million of inventory impairments and $1.4 million of
capitalized software write-offs related to discontinuation of
investments in our Digipass CX product for the three and six months
ended June 30, 2023.
Revenue by major products and services
(unaudited):
Three Months Ended June
30,
2024
2023
(In thousands)
Digital Agreements
Security Solutions
Digital Agreements
Security Solutions
Subscription
$
14,785
$
14,857
$
10,486
$
12,499
Maintenance and support
490
9,742
1,130
10,473
Professional services and other (1)
188
1,123
246
1,253
Hardware products
—
19,739
—
19,646
Total Revenue
$
15,463
$
45,461
$
11,862
$
43,871
Six Months Ended June
30,
2024
2023
(In thousands)
Digital Agreements
Security Solutions
Digital Agreements
Security Solutions
Subscription
28,597
41,039
20,834
32,107
Maintenance and support
994
19,808
2,126
20,638
Professional services and other (1)
285
2,728
454
2,669
Hardware products
—
32,316
—
34,512
Total Revenue
$
29,876
$
95,891
$
23,414
$
89,926
(1)
Professional services and other includes
perpetual software licenses revenue, which was approximately 1% of
total revenue for both the three and six months ended June 30, 2024
and approximately 1% of total revenue for both the three and six
months ended June 30, 2023.
Non-GAAP Financial Measures
We report financial results in accordance with GAAP. We also
evaluate our performance using certain Non-GAAP financial metrics,
namely Adjusted EBITDA, Non-GAAP Net Income (Loss) and Non-GAAP Net
Income (Loss) Per Diluted Share. Our management believes that these
measures, when taken together with the corresponding GAAP financial
metrics, provide useful supplemental information regarding the
performance of our business, as further discussed in the
descriptions of each of these Non-GAAP metrics below.
These Non-GAAP financial measures are not measures of
performance under GAAP and should not be considered in isolation or
as alternatives or substitutes for the most directly comparable
financial measures calculated in accordance with GAAP. While we
believe that these Non-GAAP financial measures are useful for the
purposes described below, they have limitations associated with
their use, since they exclude items that may have a material impact
on our reported results and may be different from similar measures
used by other companies. Additional information about the Non-GAAP
financial measures and reconciliations to their most directly
comparable GAAP financial measures appear below.
Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before interest,
taxes, depreciation, amortization, long-term incentive
compensation, restructuring and other related charges, and certain
non-recurring items, including acquisition related costs,
rebranding costs, and non-routine shareholder matters. We use
Adjusted EBITDA as a simplified measure of performance for use in
communicating our performance to investors and analysts and for
comparisons to other companies within our industry. As a
performance measure, we believe that Adjusted EBITDA presents a
view of our operating results that is most closely related to
serving our customers. By excluding interest, taxes, depreciation,
amortization, long-term incentive compensation, restructuring
costs, and certain other non-recurring items, we are able to
evaluate performance without considering decisions that, in most
cases, are not directly related to meeting our customers’
requirements and were either made in prior periods (e.g.,
depreciation, amortization, long-term incentive compensation,
non-routine shareholder matters), deal with the structure or
financing of the business (e.g., interest, one-time strategic
action costs, restructuring costs, impairment charges) or reflect
the application of regulations that are outside of the control of
our management team (e.g., taxes). In addition, removing the impact
of these items helps us compare our core business performance with
that of our competitors.
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
(in thousands,
unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(In thousands)
2024
2023
2024
2023
Net income (loss)
$
6,553
$
(17,751
)
$
20,021
$
(26,107
)
Interest income, net
(521
)
(585
)
(622
)
(1,088
)
Provision for income taxes
1,936
601
2,970
1,290
Depreciation and amortization of
intangible assets (1)
2,063
1,516
4,145
2,835
Long-term incentive compensation (2)
1,994
4,571
3,615
8,494
Restructuring and other related charges
(3)
3,218
5,846
4,734
6,552
Other non-recurring items (4)
906
1,974
1,077
2,559
Adjusted EBITDA
$
16,149
$
(3,828
)
$
35,940
$
(5,465
)
(1)
Includes cost of sales depreciation and
amortization expense directly related to delivering cloud
subscription revenue of $0.9 million and $1.7 million for the
three and six months ended June 30, 2024, respectively, and
$0.2 million and $0.3 million for the three and six months ended
June 30, 2023, respectively. Costs are recorded in "Services
and other cost of goods sold" on the condensed consolidated
statements of operations.
(2)
Long-term incentive compensation includes
stock-based compensation and cash incentive grants awarded to
employees located in jurisdictions where we do not issue
stock-based compensation due to tax, regulatory or similar reasons.
The immaterial expense associated with these cash incentive grants
was $0.1 million for both the three months ended June 30, 2024
and 2023 and $0.2 million for both the six months ended
June 30, 2024 and 2023.
(3)
Includes write-offs of intangible assets
and property and equipment, net of $0.8 million and $1.0 million,
respectively, for the three and six months ended June 30, 2024
and $0 for both the three and six months ended June 30, 2023.
Costs are recorded in "Services and other cost of goods sold" and
"Restructuring and other related charges," respectively, on the
condensed consolidated statements of operations.
Includes immaterial restructuring and
other related charges of less than $0.1 million for both the three
and six months ended June 30, 2024 and $0 for both the three
and six months ended June 30, 2023. These charges are recorded
in "Services and other cost of goods sold" on the condensed
consolidated statements of operations.
(4)
For the three months ended June 30,
2024, other non-recurring items consist of $0.9 million of
fees related to non-recurring projects.
For the three months ended June 30,
2023, other non-recurring items consist of $1.6 million of
inventory impairment charges and $0.4 million of fees related to
non-recurring projects.
For the six months ended June 30,
2024, other non-recurring items consist of $1.1 million of
fees related to non-recurring projects.
For the six months ended June 30,
2023, other non-recurring items consist of $1.6 million of
inventory impairment charges and $1.0 million of fees related to
non-recurring projects and our acquisition of ProvenDB.
Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per
Diluted Share
We define Non-GAAP Net Income (Loss) and Non-GAAP Net Income
(Loss) Per Diluted Share as net income (loss) or net income (loss)
per diluted share, as applicable, before the consideration of
long-term incentive compensation expenses, the amortization of
intangible assets, restructuring costs, and certain other
non-recurring items. We use these measures to assess the impact of
our performance excluding items that can significantly impact the
comparison of our results between periods and the comparison to
competitor results.
We exclude long-term incentive compensation expense because our
long-term incentives generally reflect the use of restricted stock
unit grants or cash incentive grants, including incentives directly
tied to the performance of the business, while other companies may
use different forms of incentives that have different cost impacts,
which makes comparison difficult. We exclude amortization of
intangible assets as we believe the amount of such expense in any
given period may not be correlated directly to the performance of
the business operations and that such expenses can vary
significantly between periods as a result of new acquisitions, the
full amortization of previously acquired intangible assets, or the
write down of such assets due to an impairment event. However,
intangible assets contribute to current and future revenue, and
related amortization expense will recur in future periods until
expired or written down.
We also exclude certain non-recurring items including one-time
strategic action costs and non-recurring shareholder matters, as
these items are unrelated to the operations of our core business.
By excluding these items, we are better able to compare the
operating results of our underlying core business from one
reporting period to the next.
We make a tax adjustment based on the above adjustments
resulting in an effective tax rate on a Non-GAAP basis, which may
differ from the GAAP tax rate. We believe the effective tax rates
we use in the adjustment are reasonable estimates of the overall
tax rates for the Company under its global operating structure.
Reconciliation of Net Income
(Loss) to Non-GAAP Net Income (Loss)
(in thousands, except per
share data)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)
$
6,553
$
(17,751
)
$
20,021
$
(26,107
)
Amortization of intangible assets (1)
666
704
1,381
1,327
Long-term incentive compensation (2)
1,994
4,571
3,615
8,494
Restructuring and other related charges
(3)
3,218
5,846
4,734
6,552
Other non-recurring items (4)
906
1,974
1,077
2,559
Tax impact of adjustments (5)
(1,357
)
(2,619
)
(2,161
)
(3,786
)
Non-GAAP net income (loss)
$
11,980
$
(7,275
)
$
28,667
$
(10,961
)
Non-GAAP net income (loss) per share
$
0.31
$
(0.18
)
$
0.74
$
(0.27
)
Shares
39,007
40,399
38,680
40,435
(1)
Includes cost of sales amortization
expense directly related to delivering cloud subscription revenue
of $0.1 million and $0.2 million for the three and six months ended
June 30, 2024, respectively, and $0.1 million and $0.2 million for
the three and six months ended June 30, 2023, respectively. Costs
are recorded in "Services and other cost of goods sold" on the
condensed consolidated statements of operations.
(2)
Long-term incentive compensation includes
stock-based compensation and cash incentive grants awarded to
employees located in jurisdictions where we do not issue
stock-based compensation due to tax, regulatory or similar reasons.
The immaterial expense associated with these cash incentive grants
was $0.1 million for both the three months ended June 30, 2024 and
2023 and $0.2 million for both the six months ended June 30, 2024
and 2023.
(3)
Includes write-offs of intangible assets
and property and equipment, net of $0.8 million and $1.0 million,
respectively, for the three and six months ended June 30, 2024 and
$0 for both the three and six months ended June 30, 2023. Costs are
recorded in "Services and other cost of goods sold" and
"Restructuring and other related charges," respectively, on the
condensed consolidated statements of operations.
Includes immaterial restructuring and
other related charges of less than $0.1 million for both the three
and six months ended June 30, 2024, and $0 for both the three and
six months ended June 30, 2023. These charges are recorded in
"Services and other cost of goods sold" on the condensed
consolidated statements of operations.
(4)
See the footnotes to the Reconciliation of
Net Income (Loss) to Adjusted EBITDA for a description of the
components of other non-recurring items for each period
presented.
(5)
The tax impact of adjustments is
calculated as 20% of the adjustments in all periods.
Copyright© 2024 OneSpan North America Inc., all rights reserved.
OneSpan™ is a registered or unregistered trademark of OneSpan North
America Inc. or its affiliates in the U.S. and other countries.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801904449/en/
Investor Contact: Joe Maxa Vice President of Investor
Relations +1-312-766-4009 joe.maxa@onespan.com
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