OneSpan Inc. (NASDAQ: OSPN) reported Q4 EPS of $0.0034, $0.01 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $52.9 million versus the consensus estimate of $42.42 million.

Fourth Quarter Financial Results

• Q4 Total revenue declined 25% to $52.9 million
• Q4 Recurring revenue grew 24% to $30.4 million1
• Q4 Annual Recurring Revenue (ARR) grew 29% to $103.8 million2
• Q4 Dollar-based net expansion (DBNE) of 120%3
• Q4 GAAP net loss of $1.8 million
• Q4 Adjusted EBITDA of $3.2 million4
• Q4 GAAP loss per share of $(0.04); Q4 Non-GAAP earnings per diluted share of $0.034

"Improved demand for mobile security and continued strong demand for e-signature solutions resulted in record bookings of recurring revenue contracts and stronger than forecast revenue in the fourth quarter,” stated OneSpan CEO, Scott Clements. “For the full year, ARR grew 29%, near the high-end of our multi-year goal of 25%-30% average growth; 66% of software revenues were recurring, up from 49% in the prior year; and software and services contributed a record 62% of total revenue. In 2021, we expect continued strong growth in ARR and recurring revenue along with a modest decline in hardware revenue. As we near completion of our transition to a recurring revenue led sales model in 2021, we are continuing to invest in our solution portfolio and in expanding our market presence to deliver long-term growth with increasing profitability.”

GUIDANCE:

OneSpan Inc. sees FY2021 revenue of $215-225 million, versus the consensus of $225.1 million.

For the Full Year 2021, OneSpan currently expects:

• ARR growth of 22% to 26%
• Recurring revenue in the range of $120 million to $125 million
• Total revenue in the range of $215 million to $225 million
• Adjusted EBITDA approximately break-even

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