OneSpan (OSPN) - 2024 Q1 - Quarterly Results

Financial Performance - First quarter revenue increased by 13% year-over-year to $64.8 million, up from $57.6 million in Q1 2023[7] - Subscription revenue for the first quarter grew by 34% year-over-year to $40.0 million[7] - Annual Recurring Revenue (ARR) rose by 9% year-over-year to $154.6 million[7] - Gross profit was $47.4 million, representing a gross margin of 73%, compared to 68% in the same period last year[8] - Operating income was $14.1 million, a significant improvement from an operating loss of $8.1 million in Q1 2023[8] - Net income for the first quarter was $13.5 million, or $0.35 per diluted share, compared to a net loss of $8.4 million, or $0.21 per diluted share, in the same period last year[8] - Adjusted EBITDA was $19.8 million, compared to $(1.6) million in the same period last year[8] - Total revenue increased to $64,843 for Q1 2024, up 12.5% from $57,607 in Q1 2023[25] - Adjusted EBITDA for Q1 2024 was $19,791, compared to a loss of $1,637 in Q1 2023[31] - Non-GAAP net income for Q1 2024 was $16,687, compared to a loss of $3,686 in Q1 2023[40] Cash and Liquidity - Cash and cash equivalents increased to $63.9 million as of March 31, 2024, up from $42.5 million at the end of 2023[8] - Cash provided by operating activities was $26,960 for Q1 2024, significantly higher than $13,237 in Q1 2023[21] - Cash, cash equivalents, and restricted cash at the end of the period totaled $64,881, down from $107,536 at the end of Q1 2023[21] Future Guidance - For the full year 2024, revenue is expected to be in the range of $238 million to $246 million, with ARR projected to finish between $160 million and $168 million[8] - Adjusted EBITDA guidance for 2024 has been raised to a range of $51 million to $55 million, up from the previous guidance of $47 million to $52 million[8] Segment Performance - Digital Agreements segment revenue rose to $14,414, a 24.8% increase from $11,552 in Q1 2023[25] - Security Solutions segment revenue increased to $50,429, up 9.1% from $46,055 in Q1 2023[25] Strategic Initiatives - OneSpan is investing in R&D with a budget increase of CC% to enhance its technology offerings[41] - The company plans to expand its market presence in Europe, targeting a growth rate of DD% in that region[41] - OneSpan is exploring strategic acquisitions to bolster its product portfolio and market share[41] - The introduction of new security solutions is anticipated to contribute an additional EE million in revenue[41] Customer Metrics - Customer retention rates improved to FF%, reflecting enhanced user satisfaction and engagement[41] - The company achieved a user growth of ZZ%, reaching a total of AA million active users[41] Operational Efficiency - OneSpan's operational efficiency initiatives have led to a reduction in costs by II%, improving overall profitability[41]