In This Article:
-
Adjusted EBITDA: $23 million, a 15% increase from last year's $20 million, representing 36% of revenue.
-
ARR (Annual Recurring Revenue): Grew 9% to $168.4 million.
-
Subscription Revenue Growth: 9% overall, with Digital Agreements up 13% and Security up 7%.
-
Total Revenue: $63.4 million, a 2% decrease from the previous year.
-
Gross Margin: 74%, up from 73% in the prior year quarter.
-
GAAP Operating Income: $17.2 million, up from $14.1 million last year.
-
GAAP Net Income per Share: $0.37, compared to $0.35 last year.
-
Non-GAAP Earnings per Share: $0.45, up from $0.39 in the previous year.
-
Cash from Operations: $29 million, ending the quarter with $105 million in cash.
-
Dividend: $0.12 per share, totaling approximately $4.6 million.
-
Security Solutions Revenue: Declined 5% to $47.7 million.
-
Digital Agreements Revenue: Grew 9% to $15.7 million.
-
Security Segment Operating Margin: 51% in both current and prior year periods.
-
Digital Agreements Segment Operating Income: $3.4 million, or 22% of revenue.
-
Cash and Cash Equivalents: $105.2 million at the end of Q1 2025.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
OneSpan Inc (NASDAQ:OSPN) achieved record high adjusted EBITDA of $23 million, a 15% increase from the previous year.
-
The company reported a 9% growth in Annual Recurring Revenue (ARR), aligning with their full-year 2025 guidance.
-
Subscription revenue grew by 9%, driven by demand for software authentication, app shielding, and e-signature solutions.
-
OneSpan Inc (NASDAQ:OSPN) generated $29 million in cash from operations and ended the quarter with $105 million in cash on hand.
-
The company paid its first quarterly dividend of $0.12 per share, totaling approximately $4.6 million, and plans to continue this program.
Negative Points
-
Total revenue declined slightly in the first quarter, primarily due to lower hardware revenues as banks adopt mobile-first policies.
-
The transition from legacy perpetual maintenance contracts to term-based subscriptions resulted in lower maintenance revenue.
-
Headwinds from sunsetted products impacted revenue by $1.4 million in the quarter, with similar impacts expected in the future.
-
The on-time renewal rate slipped due to two large contracts not closing as expected in Q1, though they are anticipated to close in Q2.
-
Potential tariff impacts and foreign currency fluctuations pose risks, with up to $1 million in incremental tariff-related costs expected for 2025.
Q & A Highlights
Q: Can you provide more details on the impact of tariffs on your hardware revenue, particularly in Europe? A: Victor Limongelli, Interim CEO: The US exposure is minimal, and while Europe is our largest market for hardware, we haven't seen any tariff impact there. Most of our production is in Asia, but we also have a production line within the EU. Jorge Martell, CFO: EMEA accounts for over 50% of our hardware revenue, but there have been no changes in tariffs affecting us in 2025 so far.