The following is a summary of the OneSpan Inc. (OSPN) Q1 2024 Earnings Call Transcript:
Financial Performance:
OneSpan's revenue grew 13% YoY to $65 million in Q1 2024, and adjusted EBITDA was $20 million or 31% of revenue.
The company had strong ARR growth at a rate of 9% YoY to $155 million, exceeding expectations.
Cash generation from operations was at $27 million, ending the quarter with a cash reserve of $63.9 million.
Significant improvement was witnessed in operating income, moving from a loss of $8.1 million in Q1 last year to income of $14.1 million in Q1 2024.
Notably, GAAP Net income per share was $0.35 and Non-GAAP earnings per share were $0.43 in Q1 2024, showing significant improvements compared to losses in the corresponding period last year.
Business Progress:
OneSpan followed a successful land-and-expand approach with their Net Retention Rate being at 107% during Q1 2024. This could indicate customer satisfaction and potential for repeat business.
There was significant ACV growth in Security due to the increased demand for their cloud-based authentication solution, OCA.
OneSpan closed $3 million of delayed renewals earlier than anticipated and secured $2 million from multi-year deals it had not originally forecasted.
The company strategically directed investments towards R&D, with a particular focus on FX BIO products for the Workforce Authentication market.
Despite a mixed macro environment, the company saw a successful shift in their operating model with migration of on-prem clients to cloud solutions.
More details: OneSpan IR
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