Slide 1: Investor Presentation Q2 2021
Investor Presentation Q2 2021 August 4, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding the potential benefits, performance and functionality of our products and solutions, strategies relating to our business and the futu
Slide 3: Q2 2021 Highlights and Full Year 2021 Outlook
Q2 2021 Highlights and Full Year 2021 Outlook
Slide 4: Q2 2021 Financial Highlights
Q2 2021 Financial Highlights $112M 24 % ~40 % Annual Recurring ARR Growth Subscription and Revenue (ARR)1 Term ARR growth 116 % 60 % 88 % Dollar-Based Net Subscription of Software and Services Expansion (DBNE)2 revenue growth revenues are recurring 1 & 2 –AND PROPRIETARY SeeCONFIDENTIAL. Definitions
Slide 5: Q2 2021 – ARR Growth
Q2 2021 – ARR Growth Annual Recurring Revenue $112M ARR Category Q2’21 Y/Y Growth $90M Total ARR 24% $70M Subscription ~40% and Term ARR Q2'19 Q2'20 Q2'21 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 5
Slide 6: Q2 2021 – Recurring Revenue
Q2 2021 – Recurring Revenue Y/Y Recurring Revenue Comparison $29M $29M 24% $23M record second quarter growth in recurring recurring revenue revenue Recurring Revenue Q2’21 Y/Y Growth Subscription 60% Term 19% Maintenance 8% Q2 2020 Q2 2021 Total 24% PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED
Slide 7: Q2 2021 – Transition to Recurring S&S Revenue
Q2 2021 – Transition to Recurring S&S Revenue Y/Y S&S Revenue Comparison $33M $31M $4M $8M $33M 88 % Software & Services of Software & Services $29M revenue revenue is recurring – $23M record high Q2 2020 Q2 2021 Non-Recurring Software and Services Recurring Software & Services PROPRIETARY AND CONFI
Slide 8: Q2 2021 – Total Revenue
Q2 2021 – Total Revenue Y/Y Revenue Comparison $55M $52M 55% $52M 44% 37% Total revenue of Total revenue is recurring 8% 14% 42% 55% 63% 20 % of Total revenue is decline in Software & Services Hardware revenue Q2 2020 Q2 2021 Hardware Non-Recurring Software and Services Recurring Software & Services
Slide 9: FY 2021 Outlook
FY 2021 Outlook GUIDANCE METRICS FY21 GUIDANCE Total Revenue $205M – $215M Recurring Revenue $115M – $120M ARR Growth 17% – 20% Adjusted EBITDA $(12M) – $(15M) PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 9
Slide 10: FY 2021E – ARR Growth
FY 2021E – ARR Growth Annual Recurring Revenue 17% – 20% Y/Y Growth1 $104M $80M 2019 2020 2021E 1OneSpan guidance PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 10
Slide 11: FY 2021E – Recurring Revenue
FY 2021E – Recurring Revenue Full Year Recurring Revenue $115M – $120M1 $102M $81M 2019 2020 2021E 1OneSpan guidance PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 11
Slide 12: FY 2021E – Total Revenue
FY 2021E – Total Revenue Total Revenue $216M $205M – $215M1 Revenue 2021E1 Recurring S&S $115M – $120M Perpetual to term- Non-recurring S&S license transition Mid single-digit y/y Hardware decline 2020 2021E Hardware Non-Recurring Software and Services Recurring Software & Services 1OneSpan guidance
Slide 13: Onespan
O Onespan
Slide 14: Appendix
Appendix
Slide 15: Revenue
Revenue Revenue by major products and services Three months ended, (in millions, unaudited) March 31 June 30 Sept. 30 Dec. 31 March 31 June 30 Sept. 30 Dec. 31 March 31 June 30 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Subscription $5.3 $5.3 $5.6 $6.1 $5.7 $6.1 $7.4 $8.5 $8.4 $9.8 Term-based
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Net Income to Adjusted EBITDA (in thousands, unaudited) Three months ended Six months ended June 30, June 30, 2020 2021 2020 2021 Net income (loss) $ (2,025) $ (6,685) $ (2,021) $ (15,836) Interest income, net (126) (2) (333) (6) Provision (benefit) for inco
Slide 17: Definitions
Definitions 1 - ARR is calculated as the annualized value of our customer recurring contracts with a term of at least one-year, as of the measuring date. These include subscription, term-based license, and maintenance contracts and exclude one-time fees. To the extent that we are negotiating a renew
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures We report financial results in accordance with GAAP. We also evaluate our performance using certain non-GAAP financial measures, namely Adjusted EBITDA. Our management believes that this measure provides useful supplemental information regarding the performance of our bus
Slide 19: Copyright and Trademarks
Copyright and Trademarks Copyright© 2021 OneSpan North America Inc., all rights reserved. OneSpan™, the “O” logo, “BE BOLD. BE SECURE.”™, DIGIPASS® and CRONTO® are registered or unregistered trademarks of OneSpan North America Inc. or its affiliates in the U.S. and other countries. Any other tradema