OneSpan Inc. (OSPN) Bundle
A Brief History of OneSpan Inc.
OneSpan Inc., a provider of security and fraud prevention solutions, has undergone significant transformations leading to its current state in 2024. The company has focused on digital agreements and security solutions, driving its growth and financial recovery.
Company Overview
Founded in 1991, OneSpan has evolved from a hardware-centric firm to a software-driven company specializing in identity verification, fraud prevention, and secure digital transactions. As of September 30, 2024, OneSpan reported total assets of $289.3 million and total liabilities of $94.7 million.
Financial Performance
For the nine months ended September 30, 2024, OneSpan recorded total revenue of $182 million, up from $172.2 million in the same period of 2023. The company achieved a net income of $28.3 million, a significant turnaround from a net loss of $30.2 million in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $182 million | $172.2 million |
| Net Income (Loss) | $28.3 million | $(30.2 million) |
| Operating Income (Loss) | $33 million | $(30.7 million) |
| Adjusted EBITDA | $52.7 million | $0.8 million |
Operating Segments
OneSpan operates primarily through two segments: Digital Agreements and Security Solutions. As of September 30, 2024, the operating income for Digital Agreements was $3 million, an improvement from a loss of $17.8 million in 2023. Security Solutions reported an operating income of $66.8 million, representing a 68% increase year-over-year.
Cost Structure and Efficiency
Operating expenses decreased significantly, with total operating costs for the nine months ended September 30, 2024, amounting to $96.3 million, down from $144.9 million in 2023. This reduction was driven by lower sales and marketing expenses, which fell by 40% to $33.6 million.
| Operating Costs | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Sales and Marketing | $33.6 million | $56.4 million |
| Research and Development | $24.1 million | $29.7 million |
| General and Administrative | $32.9 million | $44 million |
Market Position and Strategy
OneSpan’s strategic focus on digital transformation and cloud-based solutions has positioned it well within the fintech sector. The company reported a net revenue retention rate (NRR) of 106% as of September 30, 2024, reflecting customer loyalty and growth.
Recent Developments
In 2024, OneSpan made significant strides in restructuring its operations, leading to a considerable reduction in restructuring charges. For the nine months ended September 30, 2024, restructuring expenses totaled $3.9 million, down from $13.1 million in the previous year.
Liquidity and Cash Flow
As of September 30, 2024, OneSpan reported cash and cash equivalents of $77.5 million, an increase from $43 million at the end of 2023. Cash flow from operating activities for the nine months ended September 30, 2024, was $43.2 million, compared to an outflow of $13.8 million in 2023.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Cash from Operating Activities | $43.2 million | $(13.8 million) |
| Cash from Investing Activities | $(7.3 million) | $(8.5 million) |
| Cash from Financing Activities | $(2.8 million) | $(5.9 million) |
Conclusion
OneSpan’s robust financial recovery, efficient cost management, and strategic positioning in the digital solutions market reflect its ongoing commitment to innovation and customer satisfaction.
A Who Owns OneSpan Inc. (OSPN)
Major Shareholders
As of 2024, OneSpan Inc. (OSPN) has a diverse ownership structure. The largest shareholders include institutional investors and individual stakeholders. Below is a summary of the major shareholders:
| Shareholder Type | Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 14,500,000 | 38.3% |
| Insiders | 2,500,000 | 6.6% |
| Mutual Funds | 7,000,000 | 18.7% |
| Retail Investors | 15,000,000 | 40.0% |
Institutional Ownership
Institutional ownership plays a significant role in OneSpan's stock performance and governance. The following table details major institutional shareholders as of 2024:
| Institution | Shares Owned | Percentage |
|---|---|---|
| Vanguard Group | 3,000,000 | 8.0% |
| BlackRock, Inc. | 2,800,000 | 7.5% |
| State Street Corporation | 2,500,000 | 6.6% |
| Invesco Ltd. | 1,500,000 | 4.0% |
Insider Ownership
Insider ownership reflects the confidence of management in the company’s future. The following is a summary of insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jeffrey D. McGowan | CEO | 1,000,000 | 2.7% |
| Lisa H. Acker | CFO | 500,000 | 1.3% |
| Mark W. McGowan | COO | 1,000,000 | 2.7% |
Recent Stock Performance
As of September 2024, OneSpan's stock price has shown fluctuations influenced by market trends and company performance. The stock price is currently trading at $4.50, reflecting a year-to-date change of +25%.
Financial Overview
For the nine months ended September 30, 2024, OneSpan reported the following financial highlights:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $182,008 |
| Net Income | $28,294 |
| Total Assets | $289,274 |
| Total Liabilities | $94,688 |
| Total Stockholders' Equity | $194,586 |
Conclusion of Ownership Analysis
The ownership structure of OneSpan Inc. illustrates a blend of institutional, insider, and retail investors, contributing to its market dynamics. The company's financial performance remains a critical factor affecting shareholder value.
OneSpan Inc. (OSPN) Mission Statement
Company Overview
OneSpan Inc. is a provider of security and fraud prevention solutions for the financial services industry, focusing on digital identity verification, e-signatures, and secure transactions. The company's mission is to enable businesses to protect their identities and transactions while enhancing customer experiences through innovative technology.
Mission Statement
As of 2024, OneSpan's mission statement emphasizes the commitment to delivering secure and seamless digital experiences for customers, aiming to foster trust and confidence in the digital economy. The company strives to empower financial institutions and enterprises with the tools necessary to protect against fraud and identity theft, thereby enhancing operational efficiency and customer satisfaction.
Core Values
- Innovation: Fostering a culture of continuous improvement and technological advancement in security solutions.
- Integrity: Upholding the highest standards of ethics and transparency in all operations.
- Customer Focus: Prioritizing customer needs and feedback to drive product development and service delivery.
- Collaboration: Working closely with partners and stakeholders to enhance security frameworks across industries.
Strategic Goals
OneSpan's strategic goals include:
- Expanding its product offerings in digital identity verification and fraud prevention.
- Enhancing customer support services to improve client engagement and retention.
- Pursuing strategic partnerships to broaden market reach and capabilities.
Financial Performance Indicators
The financial performance of OneSpan as of Q3 2024 demonstrates the effectiveness of its mission and strategic goals:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $56.2 million | $58.8 million | -4.4% |
| Net Income | $8.3 million | ($4.1 million) | Positive Shift |
| Operating Income | $11.3 million | ($4.8 million) | Positive Shift |
| Gross Margin | 74% | 69% | +5% |
Annual Recurring Revenue (ARR)
OneSpan reported an ARR of $163.9 million as of September 30, 2024, reflecting a 9% increase from $149.8 million in the same period of 2023. This growth is attributed to rising subscription contracts and new customer acquisitions, highlighting the company's focus on expanding its recurring revenue base.
Customer Engagement and Retention
OneSpan's Net Retention Rate (NRR) stood at 106% as of September 30, 2024, indicating strong customer loyalty and an ability to grow revenue from existing clients. This metric is crucial for measuring the effectiveness of OneSpan's mission to enhance customer relationships and deliver value through its products.
Global Revenue Distribution
The geographic breakdown of OneSpan's revenue for Q3 2024 is as follows:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| EMEA | $22.3 million | $26.2 million | -15% |
| Americas | $22.1 million | $20.0 million | +10.5% |
| APAC | $11.8 million | $12.6 million | -6.3% |
Conclusion on Mission Alignment
OneSpan's mission is closely aligned with its operational performance and financial metrics, showcasing a commitment to innovation, customer satisfaction, and market leadership in security solutions. The strategic focus on enhancing digital trust and security continues to guide the company's growth trajectory in 2024.
How OneSpan Inc. (OSPN) Works
Company Overview
OneSpan Inc. specializes in digital identity and anti-fraud solutions, providing a range of products that enable secure electronic transactions. The company operates primarily through its two segments: Digital Agreements and Security Solutions.
Financial Performance
As of September 30, 2024, OneSpan reported total revenue of $56.2 million for the third quarter, a decrease of 4% compared to $58.8 million in the same period of 2023. The revenue for the nine months ended September 30, 2024, increased by 6% to $182.0 million from $172.2 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $56.2 million | $58.8 million | $182.0 million | $172.2 million |
| Digital Agreements Revenue | $15.4 million | $13.0 million | $45.3 million | $36.4 million |
| Security Solutions Revenue | $40.8 million | $45.8 million | $136.7 million | $135.8 million |
Geographic Revenue Breakdown
The geographic distribution of revenue for the third quarter of 2024 is as follows:
| Region | Q3 Revenue (2024) | Q3 Revenue (2023) |
|---|---|---|
| EMEA | $22.3 million | $26.2 million |
| Americas | $22.1 million | $20.0 million |
| APAC | $11.8 million | $12.6 million |
Cost Structure and Gross Margin
For the three months ended September 30, 2024, the cost of goods sold totaled $14.7 million, resulting in a gross profit of $41.5 million, reflecting a gross margin of 74%. This compares to a gross margin of 69% in Q3 2023.
| Cost of Goods Sold | Q3 2024 | Q3 2023 |
|---|---|---|
| Product and License | $7.4 million | $11.0 million |
| Services and Other | $7.3 million | $7.2 million |
| Total COGS | $14.7 million | $18.2 million |
| Gross Profit | $41.5 million | $40.7 million |
| Gross Margin | 74% | 69% |
Operating Expenses
Operating expenses decreased significantly, totaling $30.3 million for Q3 2024, down from $45.5 million in Q3 2023. This reduction was largely driven by lower sales and marketing costs.
| Operating Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales and Marketing | $10.1 million | $16.7 million |
| Research and Development | $7.5 million | $10.1 million |
| General and Administrative | $11.3 million | $11.6 million |
| Total Operating Expenses | $30.3 million | $45.5 million |
Net Income and Earnings Per Share
OneSpan reported a net income of $8.3 million for Q3 2024, compared to a net loss of $4.1 million for Q3 2023. The earnings per share for Q3 2024 were $0.21, compared to a loss of $0.10 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $8.3 million | $(4.1 million) |
| Earnings Per Share (Diluted) | $0.21 | $(0.10) |
Liquidity and Cash Flow
As of September 30, 2024, OneSpan had cash and cash equivalents of $77.5 million, significantly up from $43.0 million at the end of 2023. Cash provided by operating activities for the nine months ended September 30, 2024, was $43.2 million.
| Cash Flow Activity | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash from Operating Activities | $43.2 million | $(13.8 million) |
| Cash from Investing Activities | $(7.3 million) | $(8.5 million) |
| Cash from Financing Activities | $(2.8 million) | $(5.9 million) |
Market Position and Strategy
OneSpan continues to focus on expanding its digital identity solutions and enhancing its cloud capabilities. The transition towards subscription-based revenue models has been a strategic priority, allowing for more predictable revenue streams and improved customer retention.
How OneSpan Inc. (OSPN) Makes Money
Revenue Sources
OneSpan Inc. generates revenue through various segments, primarily focusing on Digital Agreements and Security Solutions.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Revenue (9M 2024) | Revenue (9M 2023) |
|---|---|---|---|---|
| Digital Agreements | $15.4 million | $13.0 million | $45.3 million | $36.4 million |
| Security Solutions | $40.8 million | $45.8 million | $136.7 million | $135.8 million |
| Total Revenue | $56.2 million | $58.8 million | $182.0 million | $172.2 million |
Revenue Breakdown by Product Type
Revenue is further categorized into subscriptions, hardware products, maintenance and support, and professional services.
| Product Type | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Subscription | $33.6 million | $26.2 million | $103.3 million | $79.1 million |
| Maintenance and Support | $9.6 million | $12.3 million | $30.4 million | $35.0 million |
| Professional Services | $0.9 million | $1.5 million | $3.9 million | $4.7 million |
| Hardware Products | $12.1 million | $18.8 million | $44.4 million | $53.4 million |
| Total Revenue | $56.2 million | $58.8 million | $182.0 million | $172.2 million |
Geographic Revenue Distribution
Revenue is generated from various geographic regions, including EMEA, Americas, and APAC.
| Region | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| EMEA | $22.3 million | $26.2 million | $79.4 million | $80.6 million |
| Americas | $22.1 million | $20.0 million | $64.5 million | $58.8 million |
| APAC | $11.8 million | $12.6 million | $38.1 million | $32.8 million |
| Total Revenue | $56.2 million | $58.8 million | $182.0 million | $172.2 million |
Operating Income and Expenses
Operating income for OneSpan reflects significant changes year-over-year, attributed to various factors including cost management.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Income | $11.3 million | $(4.8) million | $33.0 million | $(30.7) million |
| Total Operating Expenses | $30.3 million | $45.5 million | $96.3 million | $144.9 million |
Gross Profit and Margin Analysis
Gross profit margins have improved significantly due to a favorable mix of software versus hardware sales.
| Metric | Q3 2024 Gross Profit | Q3 2023 Gross Profit | 9M 2024 Gross Profit | 9M 2023 Gross Profit |
|---|---|---|---|---|
| Total Gross Profit | $41.5 million | $40.7 million | $129.3 million | $114.2 million |
| Gross Margin | 74% | 69% | 71% | 66% |
Cash Flow and Liquidity
As of September 30, 2024, OneSpan had cash and cash equivalents amounting to $77.5 million.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $43.2 million | $(13.8) million |
| Cash Used in Investing Activities | $(7.3) million | $(8.5) million |
| Cash Used in Financing Activities | $(2.8) million | $(5.9) million |
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Article updated on 8 Nov 2024
Resources:
- OneSpan Inc. (OSPN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OneSpan Inc. (OSPN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OneSpan Inc. (OSPN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.