OneSpan Inc. (OSPN) research, news, and more from GeoInvesting

Company description

Fri, 08 Mar 2024 14:17:12 GMT

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, authentication, and secure digital agreements worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data security, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit that protect mobile transactions; Digipass Authenticators, consisting of a wide variety of authentication devices; authentication servers that provides a range of strong authentication utilities and solutions designed to allow organizations to securely authenticate users and transactions; and Digipass FX1 BIO, a physical passkey with fingerprint scan built for the workforce authentication market. In addition, it offers Virtual Room, a purpose-built, high-assurance solution that blends the simplicity of a consumer video collaboration app with high-assurance identity and authentication security; OneSpan Notary, an online notary solution developed for organizations with in-house notaries; and OneSpan Trust Vault, a blockchain-based decentralized digital storage solution that helps organizations meet compliance, regulatory, and chain of custody requirements for critical documents. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Boston, Massachusetts.

Research

Fri, 03 May 2024 15:06:06 GMT

Onespan Inc. (NASDAQ:OSPN) ($10.95; $414.4 M market cap) reported Q1 2024 results:

Sales of $64.8 million vs $57.6 million in the prior year and ahead of analyst estimates of $56.4 million
Non-GAAP EPS of $0.43 vs a loss of $0.09 in the prior year and more than doubling analyst estimates of $0.17

“I am very proud of the OneSpan team’s performance in the first quarter, which resulted in a strong topline, enhanced profitability and positive cash flow generation,” stated OneSpan interim CEO, Victor Limongelli. “Since I’ve taken the helm in January, we have continued to find opportunities for additional cost reductions, as well as operational efficiencies later in the year, totaling incremental savings of approximately $10 million on an annualized basis. These savings, combined with our strong Q1 performance, gives us confidence that we will exceed our previously communicated Adjusted EBITDA guidance. Looking ahead, we will continue to focus on driving efficient revenue growth, profitability and cash flow as we work to improve our long-term operating profile.”

Full year 2024 Guidance:

Revenue to be in the range of $238 million to $246 million. In line with analyst estimates of $242.3 million
Adjusted EBITDA to be in the range of $51 million to $55 million, compared to our previous guidance range of $47 million to $52 million. Ahead of analyst estimates of $50.7

The conference call and guidance imply that Q1 may end up being the strongest quarter of the year. Comment from management

“For the balance of the year, seasonal software and hardware revenue patterns suggest more modest revenue growth and profit margins in Q2 and in the second half. We will continue to focus on operational excellence and on driving efficient revenue growth to help ensure we achieve our profitability and cash flow commitments.”

OneSpan provides security, identity, electronic signature and digital workflow solutions that protect and facilitate digital transactions and agreements.

Research

Wed, 10 Apr 2024 14:17:18 GMT

Onespan Inc. (NASDAQ:OSPN)

After reporting strong Q4 2023 results and a recent tender offer, guidance for improved earnings moving forward, and operating in the digital security space which is seeing increase in demand due to AI trends, we have decided to add the stock to our AI screen.

They basically do document identification/ contract flow services, a jacked up DocuSign. Their services will have to include cyber security solutions to authenticate identity. So, we think it's an interesting choice to include in the screen. Although the company hasn't made excessive inferences to AI, they've definitely hinted at the need for AI in their industry. Part of the company's transformation has been to offer more software services, so we believe this could be an area they move into.

Research Courtesy of MS Microcaps: (notes posted in December 2023)

The goal is to increase EBITDA to 20% by the end of 2024 vs. the current margin of 10% , driven by $58M in anticipated annual expense reductions.
EBITDA Margins should continue to expand due to more expense cuts in 2024.
Strong earrings power ranking of eight, beginning in Q1 2024.
Creating two distinct operating segments with different managers to create a better focus.
Getting more revenue from current customers.
Using channel partners to help increase revenue growth, along with expanding their direct sales force.
Launching new products that appear to clearly differentiate the company from competitors.
Prioritizing larger deal flow opportunities with its larger enterprise accounts.
Using OSPN solutions, more than 60% of the world’s largest 100 banks process millions of digital agreements and billions of transactions in more than 100 countries annually.
Being very aggressive in buying back stock, which just culminated in the company completing a $25M tender offer at $10.50

Research

Thu, 07 Mar 2024 05:00:00 GMT

Reported Q4 2023 results:

Sales of $62.9 million vs $56.6 million in the prior year and ahead of analyst estimates of $58.2 million
EPS of $0.19 vs $0.03 in the prior year and ahead of analyst estiamtes of $0.03

"We ended the year on a high note led by strong operational rigor and accelerated cost reduction actions over the second half of 2023, resulting in 3% GAAP operating margin and 18% adjusted EBITDA margin in the fourth quarter, a dramatic improvement from the prior year,” stated OneSpan interim CEO, Victor Limongelli. “We will continue to focus on driving efficient revenue growth, profitability and cash flow in 2024.”