Onespan ( (OSPN) ) has realeased its Q3 earnings. Here is a breakdown of the information Onespan presented to its investors.
OneSpan, a company specializing in security, identity, electronic signature, and digital workflow solutions, serves a wide range of industries by facilitating and securing digital transactions and agreements, particularly in the financial sector.
In the third quarter of 2024, OneSpan demonstrated a notable improvement in financial performance with a shift to profitability and increased subscription revenue, despite a slight decline in overall revenue. The company reported significant growth in its subscription services and annual recurring revenue, reflecting a strategic focus on digital agreements and security solutions.
Key financial metrics for the quarter include an operating income of $11.3 million, reversing a loss from the previous year, and a net income of $8.3 million. Total revenue saw a 4% decline to $56.2 million, mainly due to a decrease in security solutions revenue. However, subscription revenue rose by 29%, contributing to a 9% increase in annual recurring revenue. The gross profit margin also improved to 74%.
Looking ahead, OneSpan management maintains a positive outlook, focusing on driving efficient revenue growth and profitability through enhanced operational execution and cost management. The company has narrowed its revenue guidance for 2024, expecting continued strong performance in subscription services.
