OneSpan Q2 Revenue Dips Slightly to $65.5M

TL;DR

OneSpan Q2 revenue down to $65.5M, product sales softer, services holding steady.

AI Summary

OneSpan Inc. reported its second quarter 2024 results, with total revenue for the three months ended June 30, 2024, reaching $65.5 million. This represents a slight decrease from the $66.1 million reported for the same period in 2023. The company's Product and License revenue for Q2 2024 was $29.1 million, down from $30.1 million in Q2 2023, while Services and Other revenue increased to $36.4 million from $36.0 million year-over-year.

Why It Matters

The slight revenue decline in Q2 2024 for OneSpan Inc. indicates potential challenges in their core product sales, which could impact future growth and profitability.

Risk Assessment

Risk Level: medium — The slight decrease in revenue and product sales suggests potential market headwinds or competitive pressures that could affect future performance.

Key Numbers

• $65.5M — Q2 2024 Total Revenue (Represents a slight decrease compared to Q2 2023.)
• $29.1M — Q2 2024 Product and License Revenue (Shows a decline from the previous year's comparable quarter.)
• $36.4M — Q2 2024 Services and Other Revenue (Indicates a slight increase year-over-year.)

Key Players & Entities

• OneSpan Inc. (company) — Filer of the 10-Q report
• 65.5 million (dollar_amount) — Total revenue for Q2 2024
• 66.1 million (dollar_amount) — Total revenue for Q2 2023
• 29.1 million (dollar_amount) — Product and License revenue for Q2 2024
• 30.1 million (dollar_amount) — Product and License revenue for Q2 2023
• 36.4 million (dollar_amount) — Services and Other revenue for Q2 2024
• 36.0 million (dollar_amount) — Services and Other revenue for Q2 2023
• 20240630 (date) — End of the reporting period
• 20230630 (date) — End of the prior year comparable period

FAQ

Key Financial Figures

• $0.001 — ch registered: Common Stock, par value $0.001 per share OSPN Nasdaq Indicate by che

Filing Documents

• ospn-20240630.htm (10-Q) — 1304KB
• exhibit101_formofperforman.htm (EX-10.1) — 98KB
• exhibit1022024formofexecut.htm (EX-10.2) — 77KB
• ospn-2024q2xexx311.htm (EX-31.1) — 10KB
• ospn-2024q2xexx312.htm (EX-31.2) — 10KB
• ospn-2024q2xexx321.htm (EX-32.1) — 4KB
• ospn-2024q2xexx322.htm (EX-32.2) — 4KB
• 0001628280-24-034222.txt ( ) — 6774KB
• ospn-20240630.xsd (EX-101.SCH) — 39KB
• ospn-20240630_cal.xml (EX-101.CAL) — 57KB
• ospn-20240630_def.xml (EX-101.DEF) — 221KB
• ospn-20240630_lab.xml (EX-101.LAB) — 467KB
• ospn-20240630_pre.xml (EX-101.PRE) — 372KB
• ospn-20240630_htm.xml (XML) — 976KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 3 0 , 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 3 0 , 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 3 0 , 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 40 Item 6. Exhibits 41

SIGNATURES

SIGNATURES 42 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) OneSpan Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value) (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,

View Full Filing

View this 10-Q filing on SEC EDGAR