OneSpan Inc. (NASDAQ: OSPN) reported Q2 EPS of $0.023, $0.017 worse than the analyst estimate of $0.04. Revenue for the quarter came in at $55 million versus the consensus estimate of $57.12 million.

Second Quarter Financial Results

• Total revenue declined 2% to $55.0 million
• Recurring revenue grew 35% to $23.2 million1
• Annual Recurring Revenue (ARR) grew 29% to $90.0 million2
• Adjusted EBITDA of $3.1 million3
• GAAP loss per share of $(0.05)
• Non-GAAP earnings per share of $0.023

“During the second quarter, OneSpan made substantial progress in its transition to a recurring revenue dominant software model," stated OneSpan CEO, Scott Clements. "Bookings and revenue from recurring software contracts showed strong double-digit growth as did our software sales opportunity pipeline. Recurring revenue accounted for 76% of total software and service revenue in the quarter with strength in both subscription and term license revenues, offset by declines in perpetual license revenue. With the resurgence of the pandemic and increasing economic uncertainty, we are seeing longer sales cycles for larger complex projects and lower than expected demand for hardware authentication products. Cloud-based offerings such as OneSpan Sign continue to see strong demand.”

For earnings history and earnings-related data on OneSpan Inc. (OSPN) click here.