OneSpan beats guidance after rebrand and biometrics pivot
Digital identity company OneSpan reports a 19 percent revenue increase in Q4 2018 to $64.8 million brought the company’s full year revenue to $212.3 million, a 10 percent increase from the previous year, exceeding OneSpan’s 2018 guidance.
Gross margins for OneSpan, which rebranded from VASCO as it pivoted to a greater focus on biometrics in 2018, were 65 percent in the fourth quarter and 69 percent for the full year, both decreases of 1 percent from the previous year. GAAP operating income was $4.1 million in Q4 and below $0.1 million for the year, and GAAP net income was $4 million in the quarter and $3.8 million for 2018, both equivalent to $0.10 per diluted share. Non-GAAP earnings per diluted share were $0.36.
“We had a very strong fourth quarter with revenue up 19% on solid contributions across our portfolio of software, services and hardware,” stated OneSpan CEO, Scott Clements. “For the year, we exceeded the high-end of our revenue and adjusted EBITDA guidance. Subscription revenue grew 50% and our mobile security software license revenue grew more than 50%. We booked initial orders for Intelligent Adaptive Authentication in 2018, and we expect this and other new Trusted Identity solutions, including Risk Analytics and our upcoming digital account opening offering to contribute to revenue as 2019 progresses.”
Business highlights for OneSpan during 2018 include the initial sales of its Intelligent Adaptive Authentication (IAA), which combines biometrics with risk analytics, mobile security, MFA and other technologies, and the launch of its stand-alone AI-based Risk Analytics solution. OneSpan was also recognized as a 2018 Mobile Biometrics Platform Awards Leaders by Javelin Strategy & Research.