Onespan Inc. · NASDAQ:OSPN
Onespan — Proxy Contest (May 2021)
25 slides from Onespan's proxy contest presentation, May 19, 2021
Slide 1: Investor Presentation, May 19, 2021
May 19, 2021 Investor Presentation
Slide 2: Forward Looking Statements
2 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Forward Looking Statements This presentation contains forward - looking statements within the meaning of applicable U.S. securities laws, including statements regarding the po tential benefits, performance and functionality of our products and solu
Slide 3: Important Additional Information and Where to Find It
3 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Important Additional Information and Where to Find It OneSpan Inc. (the “ Company ”) has filed a definitive proxy statement on Schedule 14A and accompanying BLUE proxy card and other relevant documents with the SEC in connection with the solicitati
Slide 4: Company Overview
Company Overview
Slide 5: OneSpan is a Leader in Securing High-Value Digital Transactions
5 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED OneSpan is a Leader in Securing High - Value Digital Transactions $15 B + Reduced Fraud Losses 2 +60 % of Largest 100 Global Banks 1 1 Source: S&P Global Market Intelligence 2 OneSpan estimates and industry analyst firms 1,000’s of Financial Instit
Slide 6: Q1 2021 Financial Highlights
6 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Q1 2021 Financial Highlights 47 % Subscription revenue growth $108M Annual Recurring Revenue (ARR) 1 29 % ARR Growth 119 % Dollar - Based Net Expansion (DBNE) 2 87 % of Software and Services revenues are recurring 1 & 2 – See definitions in appendi
Slide 7: OneSpan Today – Two Key Business Areas
7 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED OneSpan Today – Two Key Business Areas AUTHENTICATION & DIGITAL IDENTITY SECURE PROCESS DIGITIZATION Mobile Security Hardware Authenticators On - Premises SaaS END POINTS HOST Adding intelligence to authentication through real - time risk assessmen
Slide 8: Valued Partner of Leading Banks, Enterprises and Governments
8 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Other Financial Services Insurance Banking Other Healthcare Government Canada Valued Partner of Leading Banks, Enterprises and Governments
Slide 9: OneSpan's Strategy Evolution Beyond Authentication
9 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED OneSpan’s Strategy Evolution Beyond Authentication 2018 2019 2020 2021 2022 2023 2024 2025 TID LAUNCH; REBRAND; BIZ TRANSFORM PLATFORM DEVELOPMENT FOCUS ON INNOVATION ADJACENCY EXPANSION RECURRING REVENUE TRANSITION Launch of Trusted Identity Strat
Slide 10: Financial Results Provide Evidence of Our Successful Transformation
10 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Financial Results Provide Evidence of Our Successful Transformation Annual Recurring Revenue Growth Robust Gross Margin Growth from Existing Customers $66 $70 $75 $80 $84 $90 $96 $104 $108 $0 $20 $40 $60 $80 $100 $120 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Slide 11: Recurring Software Solutions have Strong Demand/Interest
11 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Recurring Software Solutions have Strong Demand/Interest OneSpan Sign • White labeled • Visual audit trail • Supports simple and complex processes OneSpan Sign Virtual Room • All - in - one digital customer engagement solution • Guide customers th
Slide 12: Significant Growth Opportunity in Existing Customer Base
12 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Significant Growth Opportunity in Existing Customer Base 1 Top 200 customers based on rolling three - year bookings 82% 98% 47% 72% 80% 63% 24% 12% 0% 20% 40% 60% 80% 100% 120% Server Authentication Authentication Tokens Mobile Security E-Signatur
Slide 13: We Strategically Reallocated Our Resources to Drive Growth
13 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED We Strategically Reallocated Our Resources to Drive Growth Realigned Our Salesforce to Support New Solutions Quota Carrying Salespeople Software & Services Only Software & Services and Hardware • As our business has evolved, we have had to adapt o
Slide 14: Incentive Compensation Aligns with Strategy
14 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Incentive Compensation Aligns with Strategy Realigned Incentive Plans to Support Our Strategy 1 2016 represents the last full fiscal year prior to Mr. Clements’ tenure as CEO. “Software / SaaS Metrics” includes Software & Services revenue and Annu
Slide 15: Active Board Refresh to Reflect Strategic Evolution
15 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Active Board Refresh to Reflect Strategic Evolution JUNE 2021 NOMINEES JUNE 2016 NOMINEES Ken Hunt Michael Cullinane John Fox Jean Holley Matthew Moog Marc Boroditsky 2019 Scott Clements 2017 Garry Capers NEW 2021 John Fox 2005 Jean Holley 2006 Ma
Slide 16: Newer Services are Rapidly Changing Our Revenue Mix
16 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 22% 78% 2015 62% 38% 2020 75% 25% 2022 Target Newer Services are Rapidly Changing Our Revenue Mix Software & Services Hardware <50 % Recurring 2 76 % Recurring >85 % Recurring 2 Strong Double - Digit ARR Growth 1 ~120% Dollar - Based Net Expansion
Slide 17: FY 2021 Outlook
17 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED FY 2021 Outlook 1 GUIDANCE METRICS FY21 GUIDANCE COMMENTS Total Revenue $215M – $225M 2H 2021 > 1H 2021 Recurring Revenue $120M – $125M 18% – 23% growth ARR Growth 22% - 26% Strong growth in Subscription and Term Adjusted EBITDA Approximately brea
Slide 18: Solid Business Fundamentals
18 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Solid Business Fundamentals 25% - 30% ARR Growth 1 Leader In Secure Digital Banking & E - Signature Solutions Strong Competitive Position – Unique Solution Portfolio Foundations for Sustained Long - Term Growth High - Value Global Customer Base Mo
Slide 19: © Onespan
© Onespan
Slide 20: Appendix
Appendix
Slide 21: Revenue by major products and services
21 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Revenue by major products and services (in millions, unaudited) March 31 June 30 Sept. 30 Dec. 31 March 31 June 30 Sept. 30 Dec. 31 March 31 2019 2019 2019 2019 2020 2020 2020 2020 2021 Subscription $5.3 $5.3 $5.6 $6.1 $5.7 $6.1 $7.4 $8.5 $8.4 Ter
Slide 22: Definitions
22 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 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
Slide 23: Non-GAAP Financial Measures
23 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED 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 sup
Slide 24: Copyright and Trademarks
24 PROPRIETARY AND CONFIDENTIAL. ALL RIGHTS RESERVED Copyright and Trademarks Copyright © 2021 OneSpan North America Inc., all rights reserved. OneSpan Œ , the “O” logo, “BE BOLD. BE SECURE.” Œ , DIGIPASS ® and CRONTO ® are registered or unregistered trademarks of OneSpan North America Inc. or its a
Slide 25: © Onespan
© Onespan