Record EBITDA in the middle of sales challenges

Release date: February 27, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Onespan Inc (Nasdaq: OSPN) achieved a high eBitda with a high record in the fourth quarter and in the full year 2024, with the fourth EBITDA being cleaned up in the fourth quarter of $ 20 million or 32% of sales.

• The annual recurring turnover (ARR) rose by 8.5% to $ 168 million, with digital agreements increasing by 12% and safety rose by 6%.

• The income from the subscription rose over 30% for both the quarter and a year, which was 57% of total sales, which is an increase of 12% compared to the previous year.

• The company brought $ 12 million in cash from business activities in the fourth quarter and 56 million US dollars for the year, which significantly improves compared to the previous year.

• Onespan Inc (Nasdaq: OSPN) has completed several years of cost saving initiatives, which led to increased profitability and operational efficiency.

• The total turnover decreased by 3% in the fourth quarter, despite 3% growth due to a decline in hardware and maintenance.

• The hardware turnover decreased significantly, with a decline in the fourth quarter of 36% and a decrease of 23% for the entire year.

• The transition to Saas and Term software licenses led to a decline in maintenance and support income.

• The gross profit margin for digital agreements decreased due to higher cloud platform costs and lower maintenance income.

• The company expects a further decline in hardware income in 2025, which affects total sales growth.

Q: How do you think about the performance of Onespan compared to a year ago and where do you see the greatest potential for upward trend in 2025? A: (Victor Lamangele, CEO) We are in a much better position than 12 months ago after we have optimized our cost structure to make more profits if we increase sales. We see a significant growth potential in our security segment, especially in authentication solutions, and invest in both security and digital agreements. With our guidance of 2025 we are careful due to exchange rate fluctuations, but we are optimistic about our growth prospects.

Q: Can you explain the discrepancy between the Arr growth guidelines and the instructions for sales growth for the 2025 financial year? A: (Victor Lamangele, CEO and Jorge Martel, CFO) The discrepancy is largely due to the expected decline in hardware income, which was a long -term trend. We have successfully transferred a large part of this income into software authentication, but we remain realistic about the future of hardware. In addition, sales recognition for several years of term licenses on sales growth rate has a different effect than ARR.

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