"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 perfor ...

Financial Data and Key Metrics Changes - The company reported an 11% year-over-year revenue growth to $63 million in Q4 2023, with an annual revenue increase of 7% to $235.1 million for the full year [26][72] - Annual Recurring Revenue (ARR) grew 11% year-over-year to $155 million, with subscription revenue increasing 19% to $106.4 million for the full year [35][48] - Adjusted EBITDA for Q4 2023 was $11.2 million, representing an 18% margin, the highest quarterly adjusted EBITDA margin in several years [26][76] - GAAP net income per share was $0.01 in Q4 2023, compared to a GAAP net loss per share of $0.08 in the same period last year [75] Business Line Data and Key Metrics Changes - The Digital Agreements segment saw a 17% revenue growth in Q4 2023, while the Security Solutions segment grew by 10% [72] - Subscription ARR for Digital Agreements grew 18% to $49 million, while Security Solutions subscription ARR grew 19% to $75 million [57][54] - DIGIPASS hardware token revenue increased 16% in Q4 2023, benefiting from contracts that closed earlier than expected [49][56] Market Data and Key Metrics Changes - Revenue mix by region in Q4 2023 was 49% from EMEA, 34% from the Americas, and 17% from Asia Pacific, showing a slight shift from the previous year [60][61] - The company noted strong visibility into DIGIPASS orders from large banking customers, while mid-market visibility remains less certain due to macroeconomic conditions [30][43] Company Strategy and Development Direction - The company is focused on operational efficiency and has made strategic changes, including sunsetting low ROI solutions and restructuring to align costs with growth [33][40] - Plans to introduce new products and rebuild the channel network to drive top-line growth were highlighted, with a commitment to achieving the rule of 40 [31][33] - The company aims to achieve annualized cost savings of $64 million to $65 million by the end of 2024, up from previous projections [47][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of customer relationships, particularly with major banks, and noted the team's effective execution amid changes [7][24] - The company anticipates continued challenges in the mid-market banking sector but expects to leverage its competitive advantages for growth [30][41] - Future guidance for 2024 includes revenue expectations in the range of $238 million to $246 million, with ARR projected between $160 million and $168 million [101] Other Important Information - The company achieved annualized cost savings of over $58 million for 2023, with a headcount reduction of approximately 5% [27][71] - The transition of identity verification solutions from the security business unit to digital agreements is expected to impact ARR and NRR in Q1 2024 [62] Q&A Session Summary Question: What surprised management the most since joining the company? - Management highlighted the strength of customer relationships, particularly with top banks, as a significant asset [7] Question: What are the opportunities for driving higher levels of growth? - Management indicated a focus on operational efficiency while exploring adjacent markets for growth, emphasizing a cautious approach to hiring [106] Question: What is the expected trend for maintenance and support revenue? - Management expects maintenance and support revenue to continue declining due to the transition from legacy contracts to subscription models [48][103]

November 8, 2023 OneSpan – The Digital Agreements Security Company Employees (9/30/23) PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 4 Revenue Breakdown Geographic Split Our Vision A world of trusted digital customer interactions and transactions Our Solution Portfolio… MOBILE SECURITY VERIFY AUTHENTICATE INTERACT TRANSACT & SIGN VAULT …and Support High Value B2B & B2C Transactions Digital Agreements Market 2-3x larger than E-Signature E-Signature Market $5.3B IDV and Authentication Market $900M OSPN Re ...

Financial Data and Key Metrics Changes - Second quarter revenue increased by 6% to $55.7 million, with subscription revenue growing by 16% to $23 million, driven by a 20% increase in e-signature SaaS revenue and a 13% increase in security software revenue [13][86] - Adjusted EBITDA was negative $3.8 million compared to negative $1.5 million in the same period last year, primarily due to investments in sales and marketing [14][89] - Operating income was $8.5 million with an operating margin of 19%, consistent with the previous year [16] - ARR grew by 8% year-over-year to $144 million, with subscription contracts growing by 16% to $112 million [88] Business Line Data and Key Metrics Changes - Digital agreements segment saw ARR grow by 7% year-over-year to $49 million, with subscription ARR increasing by 9% to $43 million [71] - Security solutions segment ARR grew by 9% year-over-year to $96 million, with subscription ARR increasing by 20% to $69 million [90] - The decline in perpetual maintenance ARR is expected to continue as legacy contracts shift to subscription [90] Market Data and Key Metrics Changes - Revenue mix by region in Q2 2023 was 48% from EMEA, 33% from the Americas, and 19% from Asia Pacific, compared to 45%, 37%, and 19% in the same regions in Q2 last year [32] - Increased deal scrutiny and longer sales cycles were noted, particularly in the digital agreements segment, impacting sales and pipeline conversion rates [67][88] Company Strategy and Development Direction - The company is focusing on a five-pillar solution strategy to secure the entire digital transaction lifecycle, emphasizing identity verification and secure transactions [8] - Plans for substantial rightsizing, primarily related to headcount, are in place to achieve adjusted EBITDA targets for 2024 [9] - The company aims to achieve 20% to 23% adjusted EBITDA margin for the full year 2024, with a focus on balancing growth and profitability [24][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the macroeconomic environment has affected orders, particularly in the mid-market banking sector, and emphasized the need for efficient execution [10][25] - The company is committed to achieving the Rule of 40, targeting a mix of profitability and growth [43] - Increased scrutiny in deal-making was noted, particularly for new contracts, which has led to delays in decision-making [54][67] Other Important Information - The company plans to return up to $20 million in capital to shareholders by the end of 2023 through stock repurchases or dividends [24] - Actions taken in Q2 resulted in annualized cost savings of $7.9 million, with a target of $50 million to $55 million in total annualized cost savings by the end of 2025 [28] Q&A Session Summary Question: What is driving the improvement in ARR? - Management indicated that the improvement is partly due to easier comparisons and the maturation of sales and marketing efforts, although macroeconomic factors also play a role [4][41] Question: Can you provide details on cost cuts? - Cost cuts will primarily impact sales and marketing, with a focus on refining product-related decisions to enhance efficiency [20][60] Question: What is the outlook for revenue growth in 2024? - The company expects low to mid-single digits revenue growth for 2024, with ARR growth anticipated to be similar [59] Question: How will the company achieve the targeted EBITDA margins? - Management expressed confidence in achieving the targeted EBITDA margins through operational rigor and cost structure adjustments [49][50]

Now I'd like to provide a few comments on generative AI and deep fake technology. I'm sure you've all seen or heard about several recent deep fakes. For example, Pope Francis is wearing a white puffer jacket, a German newspaper using AI to generate an interview with former Formula 1 driver Michael Schumacher and various other documents of content being created by AI algorithms. The technology has progressed to a point despite its early days, where you literally cannot tell whether what you're seeing or read ...

There are customers on it but we are going to be doing the integration into our product portfolio, but that would be another product that will be coming in the market in the second half of the year. And that would also allow us to do the up-sell and cross-sell in a different way than we had historically. So I feel good about that. Matt Moynahan Operator Matt Moynahan you think about transacting business in the web with the world of deep fakes and increasingly asset classes coming into attack that are repres ...

VERIFY AUTHENTICATE INTERACT TRANSACT & SIGN VAULT Our Solution Portfolio… Investor Presentation – Q4 and FY 2022 800 3,200 100+ $219M $99M 60% 4B 65M of the World's Largest Banks are Customers Our Vision A world of trusted digital customer interactions and transactions Our Mission Banking Other Financial Services Insurance Government Healthcare Other We Focus on Securing Customer Transaction Lifecycles | --- | --- | --- | --- | --- | --- | --- | |-------|----------|--------|--------|----------|-------|---- ...

Investor Presentation Q3 2022 November 1, 2022 Forward Looking Statements This presentation contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding the outcomes we expect from our strategic transformation plan; the results we expect from the investments we are making in sales, marketing and product development, including the ability of those investments to drive sustainable growth in ARR over the long-term; our plans for managing our Digital ...

Financial Data and Key Metrics Changes - OneSpan reported its third quarter 2022 results, with a focus on financial performance metrics [3][4] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content Market Data and Key Metrics Changes - Information on market data and key metrics changes was not included in the provided content Company Strategy and Development Direction and Industry Competition - The company is expected to discuss future plans and performance outlook during the call, indicating a strategic focus on growth and adaptation to market conditions [4] Management's Comments on Operating Environment and Future Outlook - Management's comments on the operating environment and future outlook were anticipated but not detailed in the provided content [4] Other Important Information - The call included a note that forward-looking statements involve risks and uncertainties, which could lead to actual results differing from expectations [4] Q&A Session All Questions and Answers - The Q&A session details were not provided in the available content

Investor Presentation Q2 2022 August 2, 2022 Forward Looking Statements This presentation contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding the outcomes we expect from our strategic transformation plan; our growth initiatives and market expectations; the potential benefits, performance and functionality of our products and solutions, including future offerings; our expectations, beliefs, plans, operations and strategies relating to our ...