- Fourth quarter revenue decreased 4% year-over-year to $56.6 million; full year revenue increased 2% year-over-year to $219.0 million
- Fourth quarter subscription revenue increased 28% year-over-year to $23.8 million; full year subscription revenue increased 30% year-over-year to $89.2 million
- Annual Recurring Revenue (ARR) increased 12% year-over-year to $138.7 million1
- Net Retention Rate (NRR) of 107%2
CHICAGO--(BUSINESS WIRE)--OneSpan Inc. (NASDAQ: OSPN), the digital agreements security company, today reported financial results for the fourth quarter and full year ended December 31, 2022.
“We substantially redefined OneSpan during 2022 and ended the year with strong momentum, exceeding our expectations for revenue and adjusted EBITDA,” stated OneSpan CEO, Matt Moynahan. “With significant improvements in operational rigor and financial discipline, we are well positioned to continue our transformational journey. Key priorities for 2023 include new enterprise logo acquisition and market share gains along with profitability and margin expansion discipline.”
Key Financial Results
Fourth Quarter 2022 Financial Highlights
- Total revenue was $56.6 million, a decrease of 4% compared to $59.2 million for the same quarter of 2021. Changes in foreign exchange rates as compared to the prior year period negatively impacted fourth quarter 2022 revenue by approximately $2.9 million.3 Digital Agreements revenue was $12.4 million, an increase of 15% year-over-year. Security Solutions revenue was $44.2 million, a decrease of 9% year-over-year.
- ARR increased 12% year-over-year to $138.7 million. Changes in foreign exchange rates as compared to the prior year period negatively impacted ARR by approximately $3.9 million.3
- Gross profit was $38.0 million, or 67% gross margin, compared to $37.5 million, or 63% in the same period last year.
- Operating loss was $4.0 million, compared to operating loss of $6.0 million in the same period last year.
- Net loss was $3.1 million, or $0.08 per diluted share compared to $13.8 million, or $0.35 per diluted share in the same period last year. Non-GAAP net income was $1.2 million, or $0.03 per diluted share, compared to Non-GAAP loss of $9.3 million, or $0.24 per diluted share in the same period last year.4
- Adjusted EBITDA was $3.2 million compared to $(0.6) million in the same period last year. Changes in foreign exchange rates as compared to the prior year period negatively impacted fourth quarter Adjusted EBITDA by approximately $1.1 million.4
- Cash, cash equivalents and short-term investments were $98.8 million at December 31, 2022. During the year ended December 31, 2022, we repurchased $5.7 million in shares of our common stock, compared to $7.5 million in shares repurchased during the year ended December 31, 2021.
Full Year 2022 Financial Highlights
- Total revenue was $219.0 million, an increase of 2% compared to $214.5 million for the same period of 2021. Changes in foreign exchange rates as compared to the prior year period negatively impacted 2022 revenue by approximately $12.2 million.3 Digital Agreements revenue was $48.4 million, an increase of 19% year-over-year. Security Solutions revenue was $170.6 million, a decrease of 2% year-over-year.
- Gross profit was $148.6 million, or 68% gross margin, compared to $142.9 million, or 67% in the same period last year.
- Operating loss was $27.1 million, compared to $26.1 million in the same period last year.
- Net loss was $14.4 million, or $0.36 per diluted share compared to $30.6 million, or $0.77 per diluted share in the same period last year. Non-GAAP net loss was $1.8 million, or $0.05 per diluted share, compared to $16.2 million, or $0.41 per diluted share in the same period last year.
- Adjusted EBITDA was $6.4 million compared to $(5.1) million in the same period last year. Changes in foreign exchange rates as compared to the prior year period negatively impacted Adjusted EBITDA by approximately $1.1 million.
Recent Business Highlights
- Announced the acquisition of ProvenDB, which we expect to provide a foundational architecture for future blockchain solutions, including secure vaulting, for Web3. This acquisition closed on February 22, 2023.
- Introduced a new and disruptive enterprise pricing model for secure digital agreements, enabling simplified, flexible, and cost effective pricing to help customers drive business outcomes without overbuying and under-consuming licenses and transactions at the most favorable price-per-value in the industry.
- Launched OneSpan Notary to enable notaries and customers to complete agreements and notarize documents in a secure and trusted environment. OneSpan Notary offers a streamlined user experience while offering high levels of security.
Financial Outlook
For the Full Year 2023, OneSpan expects:
- Revenue to be in the range of $232 million to $242 million, representing a growth rate of 6% - 11%
- ARR to be in the range of $157 million to $164 million, representing a growth rate of 13% - 18%
- Adjusted EBITDA to be in the range of $3 million to $6 million4
We are revising our expected long-term financial targets as follows:
- Revenue to grow at a 12% - 14% CAGR through 2025, as compared to our previous target of 10% - 12%
- ARR to grow at a 20% or higher CAGR through 2025, consistent with our previous target
- NRR to exceed 120% exiting 2025, consistent with our previous target
- Gross profit margin to exceed 70% in 2025, as compared to our previous target of approximately 70%
- Adjusted EBITDA to be in the range of 10% - 12% in 2025, as compared to our previous target of 8% - 10%
Conference Call Details
In conjunction with this announcement, OneSpan Inc. will host a conference call today, February 28, 2023, at 4:30 p.m. EST. During the conference call, Mr. Matthew Moynahan, CEO, and Mr. Jorge Martell, CFO, will discuss OneSpan’s results for the fourth quarter and full year 2022.
To access the conference call, dial 844-200-6205 for the U.S. or Canada and 1-929-526-1599 for international callers. The access code is 265194.
The conference call is also available in listen-only mode at investors.onespan.com. The recorded version of the conference call will be available on the OneSpan website as soon as possible following the call and will be available for replay for approximately one year.
____________________________________________ |
||
1 |
ARR is calculated as the approximate annualized value of our customer recurring contracts with a term of at least one year, as of the measurement date. These include subscription, term-based license, and maintenance contracts and exclude one-time fees. To the extent that we are negotiating a renewal with a customer after the expiration of a recurring contract, we continue to include that revenue in ARR if we are actively in discussion with the customer for a new recurring contract or renewal, or until such customer notifies us that it is not renewing its recurring contract. |
|
2 |
NRR is defined as the approximate year-over-year growth in ARR from the same set of customers at the end of the prior year period. We previously referred to this metric as Dollar-Based Net Expansion (DBNE). There was no change in how we define or calculate NRR as compared to DBNE. |
|
3 |
We calculate the impact of changes in foreign exchange rates by translating the applicable foreign-denominated financial results for the current year monthly period(s) from foreign currency to U.S. dollars using the monthly average foreign exchange rate for the same prior year period(s), and comparing it to the current year translated amounts using the applicable current year monthly average foreign exchange rates. |
|
4 |
An explanation of the use of Non-GAAP financial measures is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of each Non-GAAP financial measure to the most directly comparable GAAP financial measure has also been provided in the tables below. We are not providing a reconciliation of Adjusted EBITDA guidance to GAAP net income, the most directly comparable GAAP measure, because we are unable to predict certain items included in GAAP net income without unreasonable efforts. |
|
About OneSpan
OneSpan helps organizations accelerate digital transformations by enabling secure, compliant, and refreshingly easy customer agreements and transaction experiences. Organizations requiring high assurance security, including the integrity of end-users and the fidelity of transaction records behind every agreement, choose OneSpan to simplify and secure business processes with their partners and customers. Trusted by global blue-chip enterprises, including more than 60% of the world’s largest 100 banks, OneSpan processes millions of digital agreements and billions of transactions in 100+ countries annually.
For more information, go to www.onespan.com. You can also follow @OneSpan on Twitter or visit us on LinkedIn and Facebook.
Forward-Looking Statements
This Press Release 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 plans for managing our Digital Agreements and Security Solutions segments; our expectations for our use of technology acquired in our ProvenDB acquisition; the potential benefits, performance and functionality of our products and solutions, including future offerings; our expected financial results for full year 2023; our expected long-term financial targets; and our general expectations regarding our operational or financial performance in the future. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", “expect", "intend", “target”, "continue", "outlook", "may", "will", "should", "could", or "might", and other similar expressions. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could materially affect our business and financial results include, but are not limited to: our ability to execute our strategic transformation plan; our ability to attract new customers and expand sales to existing customers; our ability to effectively develop and expand our sales and marketing capabilities; our ability to hire, train, and retain sales and other employees necessary to implement our strategic transformation plan; our ability to successfully develop and market new product offerings and enhancements; the loss of one or more large customers; difficulties enhancing and maintaining our brand recognition; competition; lengthy sales cycles; departures of senior management or other key employees; changes in customer requirements; interruptions or delays in the performance of our products and solutions; real or perceived malfunctions or errors in our products; the potential effects of technological changes; economic recession, inflation, and political instability; the impact of the COVID-19 pandemic and actions taken to contain it; our ability to effectively manage third party partnerships, acquisitions, divestitures, alliances, or joint ventures; security breaches or cyber-attacks; claims that we have infringed the intellectual property rights of others; price competitive bidding; changing laws, government regulations or policies; pressures on price levels; component shortages; delays and disruption in global transportation and supply chains; reliance on third parties for certain products and data center services; impairment of goodwill or amortizable intangible assets causing a significant charge to earnings; actions of activist stockholders; and exposure to increased economic and operational uncertainties from operating a global business, as well as other factors described in the “Risk Factors” section of our Annual Report on Form 10-K, as updated by the “Risk Factors” section of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. Our filings with the Securities and Exchange Commission (the “SEC”) and other important information can be found in the Investor Relations section of our website at investors.onespan.com. We do not have any intent, and disclaim any obligation, to update the forward-looking information to reflect events that occur, circumstances that exist or changes in our expectations after the date of this press release, except as required by law.
Unless otherwise noted, references in this press release to “OneSpan”, “Company”, “we”, “our”, and “us” refer to OneSpan Inc. and its subsidiaries.
OneSpan Inc. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
Quarters Ended |
|
Years Ended |
|||||||||||||
December 31, |
|
December 31, |
||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Revenue |
|
|
|
|
|
|
|
|||||||||
Product and license |
$ |
31,930 |
|
|
$ |
35,342 |
|
|
$ |
121,426 |
|
|
$ |
120,358 |
|
|
Services and other |
|
24,692 |
|
|
|
23,811 |
|
|
|
97,580 |
|
|
|
94,123 |
|
|
Total revenue |
|
56,622 |
|
|
|
59,153 |
|
|
|
219,006 |
|
|
|
214,481 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of goods sold |
|
|
|
|
|
|
|
|||||||||
Product and license |
|
12,434 |
|
|
|
15,377 |
|
|
|
45,106 |
|
|
|
46,196 |
|
|
Services and other |
|
6,233 |
|
|
|
6,309 |
|
|
|
25,330 |
|
|
|
25,350 |
|
|
Total cost of goods sold |
|
18,667 |
|
|
|
21,686 |
|
|
|
70,436 |
|
|
|
71,546 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
|
37,955 |
|
|
|
37,467 |
|
|
|
148,570 |
|
|
|
142,935 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs |
|
|
|
|
|
|
|
|||||||||
Sales and marketing |
|
15,756 |
|
|
|
16,092 |
|
|
|
60,949 |
|
|
|
62,730 |
|
|
Research and development |
|
8,139 |
|
|
|
11,715 |
|
|
|
41,735 |
|
|
|
47,414 |
|
|
General and administrative |
|
16,003 |
|
|
|
14,234 |
|
|
|
55,552 |
|
|
|
53,031 |
|
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
|
3,828 |
|
|
|
— |
|
|
Restructuring and other related charges |
|
1,482 |
|
|
|
— |
|
|
|
9,482 |
|
|
|
— |
|
|
Amortization of intangible assets |
|
584 |
|
|
|
1,385 |
|
|
|
4,139 |
|
|
|
5,888 |
|
|
Total operating costs |
|
41,964 |
|
|
|
43,426 |
|
|
|
175,685 |
|
|
|
169,063 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating loss |
|
(4,009 |
) |
|
|
(5,959 |
) |
|
|
(27,115 |
) |
|
|
(26,128 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Interest income (expense), net |
|
398 |
|
|
|
(3 |
) |
|
|
595 |
|
|
|
(1 |
) |
|
Other (expense) income, net |
|
1,010 |
|
|
|
(964 |
) |
|
|
14,827 |
|
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Loss before income taxes |
|
(2,601 |
) |
|
|
(6,926 |
) |
|
|
(11,693 |
) |
|
|
(26,143 |
) |
|
Provision for income taxes |
|
496 |
|
|
|
6,847 |
|
|
|
2,741 |
|
|
|
4,441 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(3,097 |
) |
|
$ |
(13,773 |
) |
|
$ |
(14,434 |
) |
|
$ |
(30,584 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per share |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.08 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.77 |
) |
|
Diluted |
$ |
(0.08 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.77 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|||||||||
Basic |
|
39,906 |
|
|
|
39,458 |
|
|
|
40,143 |
|
|
|
39,614 |
|
|
Diluted |
|
39,906 |
|
|
|
39,458 |
|
|
|
40,143 |
|
|
|
39,614 |
|
|
OneSpan Inc. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, unaudited) |
||||||||
|
December 31, |
|||||||
|
2022 |
|
2021 |
|||||
|
|
|
|
|||||
ASSETS |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
96,501 |
|
|
$ |
63,380 |
|
|
Short term investments |
|
2,328 |
|
|
|
35,108 |
|
|
Accounts receivable, net of allowances of $1,600 in 2022 and $1,419 in 2021 |
|
65,132 |
|
|
|
56,612 |
|
|
Inventories, net |
|
12,054 |
|
|
|
10,345 |
|
|
Prepaid expenses |
|
6,222 |
|
|
|
7,594 |
|
|
Contract assets |
|
4,520 |
|
|
|
4,694 |
|
|
Other current assets |
|
10,783 |
|
|
|
9,356 |
|
|
Total current assets |
|
197,540 |
|
|
|
187,089 |
|
|
Property and equipment, net |
|
12,681 |
|
|
|
10,757 |
|
|
Operating lease right-of-use assets |
|
8,022 |
|
|
|
9,197 |
|
|
Goodwill |
|
90,514 |
|
|
|
96,174 |
|
|
Intangible assets, net of accumulated amortization |
|
12,482 |
|
|
|
21,270 |
|
|
Deferred income taxes |
|
1,901 |
|
|
|
3,786 |
|
|
Other assets |
|
11,942 |
|
|
|
13,998 |
|
|
Total assets |
$ |
335,082 |
|
|
$ |
342,271 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
17,357 |
|
|
$ |
8,204 |
|
|
Deferred revenue |
|
64,637 |
|
|
|
54,617 |
|
|
Accrued wages and payroll taxes |
|
18,345 |
|
|
|
16,607 |
|
|
Short-term income taxes payable |
|
2,438 |
|
|
|
1,103 |
|
|
Other accrued expenses |
|
7,664 |
|
|
|
7,668 |
|
|
Deferred compensation |
|
373 |
|
|
|
877 |
|
|
Total current liabilities |
|
110,814 |
|
|
|
89,076 |
|
|
Long-term deferred revenue |
|
6,269 |
|
|
|
9,125 |
|
|
Long-term lease liabilities |
|
8,442 |
|
|
|
10,180 |
|
|
Long-term income taxes payable |
|
2,484 |
|
|
|
5,054 |
|
|
Deferred income taxes |
|
2,565 |
|
|
|
1,286 |
|
|
Other long-term liabilities |
|
1,197 |
|
|
|
7,770 |
|
|
Total liabilities |
|
131,771 |
|
|
|
122,491 |
|
|
Stockholders' equity |
|
|
|
|||||
Preferred stock: 500 shares authorized, none issued and outstanding at December 31, 2022 and 2021 |
|
— |
|
|
|
— |
|
|
Common stock: $.001 par value per share, 75,000 shares authorized; 40,764 and 40,593 shares issued; 39,726 and 40,001 shares outstanding at December 31, 2022 and 2021, respectively |
|
40 |
|
|
|
40 |
|
|
Additional paid-in capital |
|
107,305 |
|
|
|
100,250 |
|
|
Treasury stock, at cost, 1,038 and 592 shares outstanding at December 31, 2022 and 2021, respectively |
|
(18,222 |
) |
|
|
(12,501 |
) |
|
Retained earnings |
|
128,738 |
|
|
|
143,173 |
|
|
Accumulated other comprehensive loss |
|
(14,550 |
) |
|
|
(11,182 |
) |
|
Total stockholders' equity |
|
203,311 |
|
|
|
219,780 |
|
|
Total liabilities and stockholders' equity |
$ |
335,082 |
|
|
$ |
342,271 |
|
|
OneSpan Inc. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands, unaudited) |
||||||||
|
Years Ended December 31, |
|||||||
|
2022 |
|
2021 |
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss from operations |
$ |
(14,434 |
) |
|
$ |
(30,584 |
) |
|
Adjustments to reconcile net loss from operations to net cash used in operations: |
|
|
|
|||||
Depreciation and amortization of intangible assets |
|
7,066 |
|
|
|
8,926 |
|
|
Impairment of intangible assets |
|
3,828 |
|
|
|
— |
|
|
Gain on sale of equity-method investment |
|
(14,810 |
) |
|
|
— |
|
|
Deferred tax benefit |
|
1,637 |
|
|
|
2,823 |
|
|
Stock-based compensation |
|
8,642 |
|
|
|
4,354 |
|
|
Allowance for doubtful accounts |
|
184 |
|
|
|
(2,705 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
(9,705 |
) |
|
|
2,047 |
|
|
Inventories, net |
|
(2,168 |
) |
|
|
2,209 |
|
|
Contract assets |
|
52 |
|
|
|
3,787 |
|
|
Accounts payable |
|
9,261 |
|
|
|
2,716 |
|
|
Income taxes payable |
|
(1,140 |
) |
|
|
(2,525 |
) |
|
Accrued expenses |
|
2,197 |
|
|
|
3,089 |
|
|
Deferred compensation |
|
(504 |
) |
|
|
(725 |
) |
|
Deferred revenue |
|
8,173 |
|
|
|
9,713 |
|
|
Other assets and liabilities |
|
(4,065 |
) |
|
|
(5,870 |
) |
|
Net cash used in operating activities |
|
(5,786 |
) |
|
|
(2,745 |
) |
|
|
|
|
|
|||||
Cash flows from investing activities: |
|
|
|
|||||
Purchase of short term investments |
|
(15,812 |
) |
|
|
(59,925 |
) |
|
Maturities of short term investments |
|
48,550 |
|
|
|
51,149 |
|
|
Additions to property and equipment |
|
(4,996 |
) |
|
|
(2,169 |
) |
|
Additions to intangible assets |
|
(29 |
) |
|
|
(35 |
) |
|
Sale of equity-method investment |
|
18,874 |
|
|
|
— |
|
|
Net cash provided by (used in) investing activities |
|
46,587 |
|
|
|
(10,980 |
) |
|
|
|
|
|
|||||
Cash flows from financing activities: |
|
|
|
|||||
Repurchase of common stock |
|
(5,721 |
) |
|
|
(7,471 |
) |
|
Tax payments for restricted stock issuances |
|
(1,587 |
) |
|
|
(2,923 |
) |
|
Net cash used in financing activities |
|
(7,308 |
) |
|
|
(10,394 |
) |
|
|
|
|
|
|||||
Effect of exchange rate changes on cash |
|
(372 |
) |
|
|
(895 |
) |
|
|
|
|
|
|||||
Net increase (decrease) in cash |
|
33,121 |
|
|
|
(25,014 |
) |
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
64,227 |
|
|
|
89,241 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
97,348 |
|
|
$ |
64,227 |
|
|
Segment Information
In May 2022, we announced a three-year strategic transformation plan that begins on January 1, 2023. We believe this transformation plan will enable us to build on our strong solution portfolio and market position, enhance our enterprise go-to-market strategy, accelerate revenue growth, and drive efficiencies to support margin expansion and increased profitability. In conjunction with the strategic transformation plan and to enable a more efficient capital deployment model, effective with the quarter ended June 30, 2022, we began reporting under the following two lines of business, which are our reportable operating segments: Digital Agreements and Security Solutions. We expect to manage Digital Agreements for accelerated growth and market share gains and Security Solutions for cash flow given its more modest growth profile.
- Digital Agreements. Digital Agreements consists of solutions that enable our clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are largely cloud-based, include our OneSpan Sign e-signature solution and recently introduced OneSpan Notary and Virtual Room solutions. As our transformation plan progresses, we expect to include other cloud-based security modules associated with the secure transaction lifecycle of identity verification, authentication, virtual interaction and transactions, and secure digital vaulting (storage) in the Digital Agreements segment. This segment also includes costs attributable to our transaction cloud platform.
- Security Solutions. Security Solutions consist of our broad portfolio of software products and/or software development kits (SDKs) that are used to build applications designed to defend against attacks on digital transactions across online environments, devices and applications. These solutions, which are largely on-premises software products, include identity verification, multi-factor authentication and transaction signing, such as mobile application security, mobile software tokens, and Digipass authenticators that are not cloud connected devices.
Segment operating income consists of the revenues generated by a segment, less the direct costs of revenue, sales and marketing, research and development, amortization and restructuring and other related expenses that are incurred directly by a segment. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Financial results by operating segment are included below under Segment and consolidated operating results.
Segment and consolidated operating results (in thousands, except percentages)(unaudited): |
||||||||||||||||
|
Quarters Ended |
|
Years Ended |
|||||||||||||
December 31, |
December 31, |
|||||||||||||||
(In thousands, except percentages) |
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Digital Agreements |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
12,446 |
|
|
$ |
10,831 |
|
|
$ |
48,401 |
|
|
$ |
40,551 |
|
|
Gross profit |
$ |
9,819 |
|
|
$ |
8,254 |
|
|
$ |
37,488 |
|
|
$ |
29,557 |
|
|
Gross margin |
|
79 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
73 |
% |
|
Operating income (loss) |
$ |
2,525 |
|
|
$ |
415 |
|
|
$ |
5,348 |
|
|
$ |
(1,612 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Security |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
44,176 |
|
|
$ |
48,322 |
|
|
$ |
170,605 |
|
|
$ |
173,930 |
|
|
Gross profit |
$ |
28,136 |
|
|
$ |
29,212 |
|
|
$ |
111,082 |
|
|
$ |
113,378 |
|
|
Gross margin |
|
64 |
% |
|
|
60 |
% |
|
|
65 |
% |
|
|
65 |
% |
|
Operating income |
$ |
10,652 |
|
|
$ |
9,785 |
|
|
$ |
32,051 |
|
|
$ |
35,395 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Company: |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
56,622 |
|
|
$ |
59,153 |
|
|
$ |
219,006 |
|
|
$ |
214,481 |
|
|
Gross profit |
$ |
37,955 |
|
|
$ |
37,466 |
|
|
$ |
148,570 |
|
|
$ |
142,935 |
|
|
Gross margin |
|
67 |
% |
|
|
63 |
% |
|
|
68 |
% |
|
|
67 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Statements of Operations reconciliation: |
|
|
|
|
|
|
|
|||||||||
Segment operating income |
$ |
13,177 |
|
|
$ |
10,200 |
|
|
$ |
37,399 |
|
|
$ |
33,783 |
|
|
Corporate operating expenses not allocated at the segment level |
|
(17,186 |
) |
|
|
16,159 |
|
|
|
64,514 |
|
|
|
59,911 |
|
|
Total Company operating loss |
$ |
(4,009 |
) |
|
$ |
(5,959 |
) |
|
$ |
(27,115 |
) |
|
$ |
(26,128 |
) |
|
Revenue by major products and services (in thousands, unaudited): |
||||||||||||
|
Quarters Ended |
|||||||||||
|
December 31, 2022 |
|
December 31, 2021 |
|||||||||
|
Digital |
|
Security |
|
Digital |
|
Security |
|||||
Agreements |
Solutions |
Agreements |
Solutions |
|||||||||
(In thousands) |
|
|
|
|
|
|
|
|||||
Subscription (1) |
$ |
11,301 |
|
$ |
12,492 |
|
$ |
9,082 |
|
$ |
9,490 |
|
Maintenance and support |
|
998 |
|
|
10,372 |
|
|
1,240 |
|
|
11,745 |
|
Professional services and other (2) |
|
147 |
|
|
1,760 |
|
|
509 |
|
|
2,613 |
|
Hardware products |
|
— |
|
|
19,552 |
|
|
— |
|
|
24,474 |
|
Total Revenue |
$ |
12,446 |
|
$ |
44,176 |
|
$ |
10,831 |
|
$ |
48,322 |
|
|
Years Ended |
|||||||||||
|
December 31, 2022 |
|
December 31, 2021 |
|||||||||
|
Digital |
|
Security |
|
Digital |
|
Security |
|||||
Agreements |
Solutions |
Agreements |
Solutions |
|||||||||
(In thousands) |
|
|
|
|
|
|
|
|||||
Subscription (1) |
$ |
42,029 |
|
$ |
47,124 |
|
$ |
33,283 |
|
$ |
35,224 |
|
Maintenance and support |
|
5,451 |
|
|
42,894 |
|
|
5,709 |
|
|
45,567 |
|
Professional services and other (2) |
|
921 |
|
|
7,087 |
|
|
1,494 |
|
|
13,703 |
|
Hardware products |
|
— |
|
|
73,500 |
|
|
65 |
|
|
79,436 |
|
Total Revenue |
$ |
48,401 |
|
$ |
170,605 |
|
$ |
40,551 |
|
$ |
173,930 |
|
Contacts
Investor Contact:
Joe Maxa
Vice President of Investor Relations
+1-312-766-4009
joe.maxa@onespan.com
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