Press release
OneSpan Reports Results for Third Quarter and First Nine Months of 2020
Third Quarter Financial Results Total revenue declined 35% to $51.4 million Recurring revenue declined 5% to $22.1 million1 Annual Recurring Revenue (ARR)
About this update from Onespan Inc.
[{"type":"text","content":"\nThird Quarter Financial Results\n\n\nTotal revenue declined 35% to $51.4 million\n\n\nRecurring revenue declined 5% to $22.1 million1\n\n\nAnnual Recurring Revenue (ARR) grew 27% to $95.7 million2\n\n\nAdjusted EBITDA of $2.7 million3\n\n\nGAAP loss per share of $(0.04); Non-GAAP earnings per share of $0.033\n\n\n CHICAGO--(BUSINESS WIRE)--\nOneSpan Inc. (NASDAQ: OSPN), the global leader in securing remote banking transactions, today reported financial results for the third quarter and nine months ended September 30, 2020.\n\n“In the third quarter, we continued to make progress transitioning to a recurring revenue model, with annual recurring revenue growth of 27%, dollar-based net expansion rate4 of 120%, and sequential improvement in Software and Services bookings. Rapidly deployable digitization projects such as e-signature continued to see strong demand” stated OneSpan CEO, Scott Clements. “The pandemic delayed a range of IT and security projects as financial institutions shifted their focus to supporting remote work and other immediate digitization needs. In addition, branch closures around the world limited banks’ new customer account growth reducing near-term demand for certain authentication products. We are optimistic about the mid-term outlook for the company as the core drivers of demand for our solutions remain intact and our pipeline of software and services sales opportunities grew in excess of 40% year on year with strength in e-signature, identity verification and mobile security.”\n\nThird Quarter 2020 Financial Highlights5\n\n\nRevenue for the third quarter of 2020 was $51.4 million, a decrease of 35% from $79.7 million for the third quarter of 2019. Revenue for the first nine months of 2020 was $162.8 million, a decrease of 11% from $183.0 million for the first nine months of 2019. Year-over-year revenue comparisons were affected by the one-time positive impact on third quarter 2019 revenue from Payment Services Directive 2 (PSD2).\n\n\n\nGross Profit for the third quarter of 2020 was $36.0 million and $113.0 million for the first nine months of 2020. Gross profit for the third quarter of 2019 was $53.0 million and $122.4 million for the first nine months of 2019. Gross margin for the third quarter of 2020 was 70% and for the first nine months of 2020 was 69%. Gross margin for the third quarter of 2019 was 6...