Investor Presentation - Q1 2024
May 2, 2024
Forward Looking Statements
This presentation contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding our 2024 financial guidance and our plans to continue to focus on driving efficient revenue growth, profitability and cash flow as we work to improve our long-term operating profile; 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", "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 updated strategic transformation plan and cost reduction and restructuring actions in the expected timeframe and to achieve the outcomes we expect from them; unintended costs and consequences of our cost reduction and restructuring actions, including higher than anticipated restructuring charges, disruption to our operations, litigation or regulatory actions, reduced employee morale, attrition of valued employees, adverse effects on our reputation as an employer, loss of institutional know-how, slower customer service response times, and reduced ability to complete or undertake new product development projects and other business, product, technical, compliance or risk mitigation initiatives; our ability to attract new customers and retain and expand sales to existing customers; our ability to successfully develop and market new product offerings and product enhancements; changes in customer requirements; the potential effects of technological changes; the loss of one or more large customers; difficulties enhancing and maintaining our brand recognition; competition; lengthy sales cycles; challenges retaining key employees and successfully hiring and training qualified new employees; security breaches or cyber-attacks; real or perceived malfunctions or errors in our products; interruptions or delays in the performance of our products and solutions; reliance on third parties for certain products and data center services; our ability to effectively manage third party partnerships, acquisitions, divestitures, alliances, or joint ventures; economic recession, inflation, and political instability; 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; 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 most recent Annual Report on Form 10-K, as updated by the "Risk Factors" section of our subsequent Quarterly Reports on Form 10-Q (if any). 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. Statements in this presentation are made as of May 2, 2024, and the continued availability of this presentation after that date shall under no circumstances create an implication that the information contained herein is correct as of any date after May 2, 2024. 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 presentation, except as required by law.
PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED
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Company Overview
OneSpan - The Digital Agreements Security Company
642 4,000+ 100+ 60% $242M $155M 107% $64M
Employees | Customers | Countries | of the World's | Revenue | ARR1 | NRR2 | Cash & Equiv. |
(3/31/24) | Largest Banks | (TTM 3/31/24) | (3/31/24) | (3/31/24) | (3/31/24) | ||
are Customers | |||||||
1,2 See Appendix for definitions.
PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED
4
Trusted Security Partner to Global Blue-Chip Enterprises
Banking
Other Financial
Services
Insurance
Government
Healthcare
Other
PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED
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Two Operating Segments
TTM Revenue (3/31/24)
Security | Digital |
Solutions | Agreements |
$189M | $54M |
78%22%
Security Solutions
- Leading provider of authentication and transaction signing solutions for the who's who of global banks
- Transition to subscription from perpetual software license model is largely complete
• 37% GAAP operating margin (TTM)
Digital Agreements
- Enterprise class e-signature solution differentiated by robust security, white-labelling and pricing model
- Transition to 100% SaaS is largely complete
- Approaching profitable GAAP operating income
TTM Revenue Mix by Geography (3/31/24)
EMEA - 48% | Americas - 33% | APAC - 19% |
6
GTM Focused on Enterprise Sales and Growing Partner Network
CUSTOMER SEGMENTATION BASED ON EMPLOYEE COUNT
Tiers
(Employee Count)
Large Enterprise
100,000+
Enterprise
10,000 - 100,000
Medium Business
5,000 - 10,000
Mid-Market
2,000 - 5,000
Small Business
< 2,000
OSPN SALES FOCUS | PARTNER COVERAGE | ||
Efficient Resource | Global System | Resellers & | Platform |
Allocation with Sellers | Integrators | Distributors | Partners |
SAM
NAM
NAM
TAM
ISR
SAM, NAM, TAM, ISR defined as strategic account manager, named account manager, territory account manager, and inside sales representative, respectively.
PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED
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Competitive Differentiation
World-class security DNA in identity verification, authentication and transaction signing
Deep expertise in end-user experience, cloud workflows, document verification and electronic signing
Deep roots and experience in highly regulated global markets
Ability to leverage product portfolio in time of market convergence
Valuable blue-chip installed base with deep roots in financial institutions
PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED
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Financial Highlights & Outlook
Q1 2024 Financial Highlights
$65M | $155M |
Revenue | ARR1 |
(13% growth) | (9% growth) |
$40M | $128M |
Subscription Revenue | Subscription ARR |
(34% growth) | (17% growth) |
$20M
Adjusted EBITDA
(30% Margin)
$64M
Cash and Equiv.
no long-term debt
1 See Appendix for definition.
PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED
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Disclaimer
Onespan Inc. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 20:59:17 UTC.