OneSpan reports strong Q2 growth with revenue increase, reaffirms guidance.

From Investing.com: 2024-08-04 18:40:31

OneSpan (NASDAQ:) reported Q2 2024 earnings with Victor Limongelli confirmed as President and CEO. Revenue increased by 9%, ARR by 15%, and adjusted EBITDA reached $16 million. Software now makes up 75% of revenue, with double-digit subscription growth expected for the year. Full-year revenue guidance remains at $238-$246 million, and ARR at $166-$170 million. The company plans to review capital allocation, focusing on shareholder returns.

In Q2, revenue for authentication solutions rose by 19% to $14.9 million, while Digipass hardware token revenue remained stable at $19.7 million. The gross profit margin improved to 67%, and operating income more than doubled to $20.7 million. Digital agreements ARR grew by 25% to $61 million. There were no significant misses reported in the earnings call, and the company’s performance showed strong improvement across various metrics.

Investing Pro Insights show OneSpan’s market cap is $549.89 million, with a P/E ratio of 34.76. The company has experienced revenue growth of 8.99% over the last twelve months, supported by a solid 69.43% gross profit margin. With a PEG ratio of 0.23, investors may find OneSpan’s share price undervalued relative to expected earnings growth. Management’s share buyback initiative and a healthy balance sheet signal confidence in the company’s future prospects, alongside positive market returns over the past month and three months.

Victor Limongelli expressed gratitude for the team’s efforts and is looking forward to continued progress. The company remains focused on growth in software revenue, with expectations to meet full-year revenue guidance between $238-$246 million and ARR between $166-$170 million. OneSpan will assess cash generation, capital requirements, and return capital to shareholders. Geographically, revenue is distributed with 41% from EMEA, 35% Americas, and 24% Asia-Pacific. The company’s strategic focus on software, commitment to cost savings, and targeted investments position it well for future success.



Read more at Investing.com: OneSpan reports robust Q2 growth, reaffirms full-year guidance By Investing.com