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Sep 30, 2023
OneSpan Q3 2023 Earnings Report
Reported a revenue increase and improved profitability due to cost reduction initiatives.
Key Takeaways
OneSpan reported a 3% year-over-year increase in revenue to $58.8 million for the third quarter of 2023. The company's focus on operational rigor and cost reduction initiatives led to improved profitability. They also plan to repurchase approximately $20 million of common stock through a modified 'Dutch auction' tender offer.
Third quarter revenue grew 3% year-over-year to $58.8 million.
Third quarter subscription revenue grew 18% year-over-year to $26.2 million.
Annual Recurring Revenue (ARR) grew 10% year-over-year to $149.8 million.
Net Retention Rate (NRR) was 108%.
OneSpan
OneSpan
OneSpan Revenue by Segment
Revenue by Segment
Security Solutions Revenue
CapyFin.comDigital Agreements Revenue
CapyFin.com Forward Guidance
OneSpan expects revenue to be in the range of $228 million to $232 million, ARR to be in the range of $148 million to $152 million, and Adjusted EBITDA to be in the range of $2 million to $4 million for the full year 2023. For the full year 2024, OneSpan is targeting revenue growth in the low to mid-single digits and Adjusted EBITDA margin to be in the range of 20% to 23%.
Positive Outlook
- Revenue to be in the range of $228 million to $232 million for full year 2023.
- ARR to be in the range of $148 million to $152 million for full year 2023.
- Adjusted EBITDA to be in the range of $2 million to $4 million for full year 2023.
- Targeting revenue growth in the low to mid-single digits for full year 2024.
- Targeting Adjusted EBITDA margin to be in the range of 20% to 23% for full year 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income