OneSpan (OSPN) Q4 2024 earnings summary

Executive summary

• Achieved record-high adjusted EBITDA in Q4 and full year 2024, with both business units profitable and significant improvements in operating income and cash generation.

• FY 2024 revenue reached $243.2M, up 3% year-over-year, with strong subscription and ARR growth.

• Subscription revenue grew over 30% for both the quarter and year, now representing 57% of total revenue.

• Cash from operations improved to $56M in 2024 versus a use of $11M in 2023, with year-end cash at $83M and no long-term debt.

• Initiated the first quarterly cash dividend in company history, with a $0.12/share payment and future dividends planned.

Financial highlights

• Q4 2024 adjusted EBITDA: $20M (32% of revenue); full year: $73M (30% of revenue).

• Q4 revenue: $61.2M, down 3% year-over-year; full year revenue: $243.2M, up 3%.

• Q4 GAAP operating income: $11.8M vs. $1.8M prior year; full year: $44.8M vs. a loss of $28.9M in 2023.

• Q4 GAAP net income per share: $0.72 (includes $0.58 tax benefit); full year: $1.46 (includes $0.59 tax benefit).

• Q4 non-GAAP EPS: $0.24; full year: $1.32.

• Q4 adjusted EBITDA margin: 32.4%; full year: 29.8%.

• Cash on hand at year-end: $83M, up $40M from prior year.

• Net income for FY 2024 was $57.1M, a turnaround from a $29.8M loss in FY 2023.

Outlook and guidance

• 2025 revenue expected between $245M and $251M.

• 2025 ARR expected between $180M and $186M.

• 2025 adjusted EBITDA expected between $72M and $76M.

• Double-digit subscription revenue growth expected for both business units.

• Guidance reflects headwinds from end-of-life products, estimated in the low to mid-single digit millions.