OneSpan Q2 Revenue Misses, But Raises Full-Year Outlook on Hardware Strength
OSPN sits 61% above its 52-week low of $10.07.
Summary
OneSpan reported Q2 revenue of $60.5M, up 1% YoY but below the implied run-rate for prior guidance. Cybersecurity revenue declined 7%, offset by 25% growth in Digital Agreements. Net income fell to $6.8M from $8.3M, with GAAP EPS of $0.18 missing last year's $0.21. Despite the mixed quarter, the company raised full-year revenue guidance to $248M-$252M from $244M-$249M, driven by higher hardware expectations. Adjusted EBITDA guidance also increased to $67M-$71M. The launch of DigipassONE, a unified authentication platform, adds a new growth vector. Cash dropped to $43.3M from $70.5M at year-end, partly due to $2.9M in buybacks. The board declared a $0.13 quarterly dividend. The stock trades near its 52-week high, suggesting the market may have anticipated the guidance raise.
At the time of this announcement, OSPN was trading at $16.21 on NASDAQ in the Technology sector, with a market capitalization of approximately $601M. The 52-week trading range was $10.07 to $16.44. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.