OneSpan (OSPN) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 7% to $235.1M; subscription revenue grew 19% to $106.4M and ARR increased 11% to $154.6M.

• Adjusted EBITDA rose 88% to $12.0M for FY23; Q4 Adjusted EBITDA was $11.2M, with GAAP operating income of $1.8M.

• 2024 priorities: efficient revenue growth, profitability and cash flow.

Financial highlights

• Q4 revenue grew 11% YoY to $62.9M; FY23 revenue was $235.1M versus $219M in FY22.

• Q4 gross profit was $43.5M at 69% margin; FY gross profit was $157.7M at 67% margin.

• FY23 GAAP net loss was $29.8M versus $14.4M in FY22; operating loss widened to $28.9M from $27.1M.

• FY23 Adjusted EBITDA was $12.0M versus $6.4M; Q4 was $11.2M versus $3.2M.

Outlook and guidance

• FY24 guidance: revenue of $238M–$246M, ARR of $160M–$168M and Adjusted EBITDA of $47M–$52M.

• Most cost-savings actions are expected to be completed by end-2024, reaching $64M–$65M in cumulative annualized savings; low-single-digit-million additional savings are expected in 2025.