- Earnings call transcript Q3 2022

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Operator

Hello everyone and welcome to the Q3 2022 OneSpan Earnings Conference call. My name is Nadia, and I will be coordinating the call today. [Operator Instructions] I would now hand over to your host, Joe Maxa, Vice President of Investor Relations to being. Joe, please go ahead.

Joe Maxa

Thank you, operator. you call. the thank XXXX third and conference earnings everyone, for OneSpan joining quarter Hello, is webcast at call Relations This being section the accessed of Investor on OneSpan's website investors.OneSpan.com. and can be

a results today our XXXX. close, Joining me Officer of Jorge investor press OneSpan copy September. Financial issued who Martell, This Matt To Chief announcing OneSpan's as new in please Chief a and information, our release is website. for joins Officer press on quarter and Executive Moynahan, afternoon access our call third the early the after release market other visit

forward-looking been Commission such expectations from may that of call have XX-K financial I filings the risks the use non-GAAP current XX-Q and differ Following the statements. statements comments these and a we and this made certain uncertainties. outlook involve these and XXXX words company's for related today's Also call that discussed adjusted events statements. and as be relate the similar that believes, conference our a measure. projects this plans, and and prepared discussion note in basis on financial measures Consequently, statements that on full could assumptions. call year expressed to forward-looking actual expects, Form will direct your are Form These materially questions. Securities are U.S. open with such during to anticipates, note on including and GAAP for press release plans, today, are a based from performance words, Please Exchange uncertainties future attention risks for and statements results expressed or the

to non-GAAP directly for of these the GAAP earnings measures press an and financial provided financial explanation have the in most We release. comparable reconciliations measures

date undertake obligation events to required related reason. date. these the law, or for to over now conference as will statements we as XXXX. other forward-looking Xst, Any call are the of note is this no new assumptions by this any Except future statements addition, please Matt. as turn or and a call result November that made of In of I update information

Matt Moynahan

you, inorganic by strong begin Martell to OneSpan new finance. Welcome Jorge platform, cloud plan the an strategic he leader experience of quarter in technology to to was strategy. we pleased global as Jorge call our team the based operationally is great Thank Jorge with today's another years. us Extreme from everyone. logistics a coming company's organic and over creative our Chief global with and where increased earnings call. in welcoming to as growth is the I'm global Officer. our execution Hello Joe. focused a and well-rounded leadership profitability Financial joined He end-to-end focus CFO growth in Reach, the our third instrumental drive team, transformational to addition

to record enterprise-class financial solution. contracts, quarter several third overall, highlights. a digital committing term We Now, had quality quarter turning given by driven bookings our and customers longer the our agreements, of to strong including

revenue level in highest a Annual years. environment. to Booking macroeconomic transactions $X.X based approximately America across high high challenging BXB, BXC in broad Asia did in grew our total year-over-year of As assurance, most eight North for and the in lengthened. where $XX we notwithstanding million, a a strength for even XX%. high Adjusted bookings million sales company priority result, headwinds. and customers, Europe XX%. revenue revenue some recurring Protecting X% the quarter at constant pockets was currency, foreign were currency of value, grew and grew Though remains Europe. cycles see Total

ARR of range. full our with XXXX year impact FX Excluding the $X XX%, line grew million, guidance approximately in

purchase of post-pandemic ongoing cost volumes contract FX, profitable and benefited to was normalize addition efficiencies We on operating compared adjusting an saving levels. by timing as which EBITDA their to adjusted from ARR and basis, reflect customers initiatives impacted In to renewals were quarters. certain prior

contract two I to deals the wins existing during enterprise Next, seven-figure esignature and ACV, briefly competitive TCV, which duration. digital expansion in quarter. contract ARR increases want Both were bleed with discuss resulted agreement important customers, in significant

one leader and was length The its one first four times. by this in with us cloud three its software, banking increased years, TCV from with nearly contract a customer to

its three demonstrate was his TCV to demand the solutions a to one be of to expand and solutions large our five electronic our are lead-times grade strength land compensate and highest years segment, Digipass In firm years these nearly contract three paradigm management than large with level increased components and contracts security ongoing by continue mobile three esignature from mobile for server earlier second typical insurance emphasizing fraud also security and related The an the wealth highlight strong, increased we customers Both placed attacks. were reliability escalation enterprise and driven of that orders in as length and internally. for times. shortages. in by strong their bookings at years, to solution

We won XXXX are Solution Best also Security the during the pleased Award that for Mobile our mobile SC quarter. security suite

plan. a I'll spend the Now, making are progress on on minutes our transformation we few strategic

to to continual and leadership all direct transform hold Jorge, transformation on Investor the company, Revenue our team am As Chief the the double of filling a to approximately are team talent sales Day of complete. training as mid-May, experience end Officer, Chief our our and we've and by I add role you milestone team our the CEO Experience the end with largely sell and Officer key to base. before, mentioned important the We bring CFO Chief our enable recent anticipate is to force first the dual role of scale solutions, to has been Officer sales Customer Revenue to strengthening Stuti continue we in this additions as tell pleased year. by the XXXX. of company. we that of executive I we XX% by Since increased track believe part our the Bhargava our of of the our

found can hire message you tell universally labor from challenging, ramping success sales product meeting efforts, as been across approving the nearly is and we OneSpan around growth remains orchestrated have and we addition strategy and is we and highly and security many marketing growth and strategy. solid solution Program, unifying candidate which and verify, qualified multiple marketing we've enterprise QX, agreements hard individuals, for we only made go-to-market market sales and both resonating whom entire campaigns with, our sell every experienced market I interact, to been and during our sales our our cybersecurity And launched positioning prioritizes transact, XXXX I've Although evaluating, pillars the companies. candidates digital account-based personally come realignment authenticate, our segments. about our agreements of and at work and are Not our highly target five enable go-to-market largest to the sales X,XXX our and store. team solution progress portfolio our at complete accounts focus digital excited

key acquisition new in continue As and be to quarters, generation past for company. priorities demand logo the I mentioned

the investments in our engine pace make sales to acquisition. increase continue of to marketing new customer We and

future. solutions to Digipass part the new cloud as recently and We connected Room provide plan our next-generation launched in innovative of Virtual near device customers launching we'll to also our be

gaining wealth that companies provide virtual from reminder, engage as customers their our labeled interest Virtual high Room customer white a execute is is systems, and capital well touch As enables to management, a Virtual with Room as like enable solution transactions secure environment. face-to-face cases, markets. and banking, a customers to in digital to used target private agreements secure

go-forward we're class increasing expanding to around globe. We're our our strategy portfolio, capabilities take we ahead. and see of with and customers Our the the sales resonating force is new our go-to-market to adding enterprise opportunities advantage solutions employees and

digital of Our strategy. our platform the security the vision is to not for point This transaction evolve basis authentication. require will entire transaction is throughout that the agreement OneSpan at processes cloud the just lifecycle, of world

will progress over turn you take Jorge strategic introduce our solutions We now will update call make the continue to you and our Jorge? to financials. quarter we plan. as on third I new through to

Jorge Martell

that ARR volumes in levels. revenue $XX.X or was ARR FX, contracts ARR be expansion of right-sizing XX% related from everybody. specifically growth regions, the tokens ARR. we look we excited I'm XXX%. million plan. near cycles pleased to top and and Matt million. quarter in as to timing future. define international I by from their by good to reported face-to-face was million X% as year-over-year driven OneSpan $XXX to to of subscription in accounted approximately customers, sales net grew part to operational customers we contract you, a our $XX.X management to hope to year-over-year the reflect and and $XXX impacted in forward renewals, XX% Revenue growth XX% drive in strategic a and growth and total and and DBNE, our which Thank discipline helping you afternoon, team certain existing subscription improved by the implement post-pandemic million. grew longer a new million, in XX% DBNE to of I'm strong to really bottom-line, to Digipass XX% largely all for by execution meet $XX.X business led growth grew some Dollar-based

impairment and security in were Gross year. our software a was of sunset partially These charge items non-core offset to X% reduction GAAP and of and $X.X transition provide million quarter the license from loss our professional in the growth term, Operating of by in compared $X quarter $X.X a million million. the is perpetual And operating a We software our as costs, by revenue was last solutions expenses as compared operating quarter a margin which in last cost R&D GAAP also to experienced compared included couple $X.X million changes to included non-recurring plans, to related revenue. year. segment from and from of XX% prior third I'll our approximately third services related in increased in to decision XX% result additional increases minutes. expenses plan. color FX other revenue. to to maintenance restructuring capitalization benefited

on $XX.X our the was for $X end during annualized charges Restructuring savings of $XX the Phase made million progress approximately savings plan, quarter to annualized mentioned call plan the last $XX million X to X the in We we and by were cost high reduction Regarding million, $X in a quarter. complete, third $X.X increased substantially of on million near Phase total. million million the plan. approximately with

XX% was for a of $XX loss to cost savings. million the to per ending third reduction covering compared adjusted XXXX in was period quarter cash last of is million revenue, in Phase Adjusted largely It labor same earnings year. higher compared the expected related additions associated was or in items net As last severance EBITDA The [ph] plan share million to XXXX period EBITDA GAAP and $X.XX the headcount approximately the the initiatives, for XXXX. compensation, of quarters than during last the $X.XX adjusted capitalized to amortization, XXXX. $XX in and with margin headcount to excludes which $X.X year of market. quarter XXXX, three X% year. quarter benefit long-term per EBITDA charges the annualized reminder, cost $XX Non-GAAP total $X.X incentive lower the share driven a reductions of in calls third million to performance. X in to million. $XX million grew cost also non-recurring the led in result approximately anticipated growth million year-over-year efficiencies, third the with subscription $XX.X was increase than XX% year. QX to a growth compared the costs, of due including higher challenging in margin with Digital by ratable and X% software charges, combined was the grew the Gross XX% including XX% timing a vast to quarter in with XX% ARR million, intangible to influenced contract of increased majority million of restructuring of subscription discuss Similar was increase impairment sequential last of of revenue result largely subscription to by agreements one-time the higher consistent impact to gross adjustments revenue quarter the start was and by $XX to in million $X.XX, our XX% dates. provider, scale margin quarterly from The results. last was of The as revenue in increased ARR million. cloud QX tax digital income million recognized last $X.X $XX a improved the was year. $X.X year. third segment approximately credit margin were compared primary gross service QX and quarter, I'll in Operating agreement's benefit. assets, $XX.X of last six-point drivers the as resulting revenue

invest plan we increase is topline in our to plan talent reminder, development. its including and this growth, of early the stages drive growth and a to segment, additional still in hiring transformation As to product sales for

solution grew existing and on-premise, Subscription expected deal our to million, revenue XX% from customers $XX.X by this for XX% Total offset mobile results. million, mobile flow $XX software-based solutions, licenses. $XX.X segment with legacy ARR to segment expansion Digipass in decreases solutions. X% in subscription Turning million growth perpetual service growth by $XX security driven to and quarterly million. partially primarily grew and revenue for ARR contracts service security, in tokens, grew security, by XX% to led to

to driving We growth. focus on revenue subscription continue

to could tokens. second this year. Digipass up we challenges impact Last We million a in of that also chain continue to quarterly Digipass demand for by supply quarter, $X revenue the half noted see healthy

charge continue we mix, $X.X Factors income XX% was skews of to operating challenges, the The impacting half to last Security including was QX segment we and and to and to $X.X the delay shipping million from was XXXX earlier. to Operating an gross million impairment margin the differences of last last solutions million in can these period XX% to $XX.X million compared Digipass same expect to margin gross of XX% compared gross year the increase the $X.X in first year. to million. certain amount $X as discussed components margin product and margin electronic shortages While electronic manage from attributed component increase shipments be primary prices, an XX% in for year. lower expenses. in

third XX%, was and quarter, XXXX changes quarter primarily the revenue I'll the with million long-term prior turn XX% $X.X cash we net our in Turning working $XX This XX%, to quarter of the of from last use very our to We Geographically, came debt. million mix XXXX XX% at year, and in short-term capital respectively. last operations EMEA, million back compares you, XX% from investments in from third Matt. cash of third the quarter, of of related regions end to and from cash, ended same balance to the the quarter sheet, the end the $XX and we it Americas, that, up no compared to Asia-Pacific. region of with at quarter. equivalents, during have by consistent and in with the XXXX And XX% in

Matt Moynahan

exchange most assets, the enter Xst. point exchange the $X our Thank XX% relevant in resources been important headwinds coming currency January to at you, also year points will nine on our The us portfolio pressure Jorge. opportunities. the also of rates Based quarter. quarters, of recently, to first our beginning focus to have certain We higher of strategic months would as been our our solutions first rates, estimate line efforts and ARR decisions to focus our on plan with strategic management had our enable ago higher fourth revenue made revenue we plan but in we over year would contribute and deal compared six growth that on to efforts current flow, FX highest want additional million rate the and reallocate sun-setting revenue we in including period. the growth been XXXX out constant I expect several have

of range In $X estimated downstream believe impact and the our when to we bottom teams full in our million the XX%, from For X% business as million. to prior in closing, which of environment; positive exceed our the $X million our X% FX range changes our strategic in previous XX revenue to portfolio momentum to year is to XX% into $X impact XX%, head revenue in of headwinds; be the and FX macroeconomic near adjusted to strategy to or EBITDA of the $X XXXX. compared expect be despite year we excluding to of guidance as have the negative an to following; XXXX fiscal and ARR to guidance we million meet considering year full XXXX, the we total range of

work to place product months This in to contribution We more have at plan put that, our and our revenue, the a includes geographies been lines, over business your increased over we've three-year happy time. Jorge across hard foundation and will predictability, I'm past be of proud plan. six the balanced made of segments, updating look team quarter. next the Operator? progress I today. With We in to again questions. you take forward and

Operator

of goes And BTIG. today go Gray, Thank is to line Powell ahead, question open. you. [Operator Gray Instructions] first our please your

Gray Powell

thanks few visibility how off high today the questions. you Yes, here. taking and on pipeline versus have months the you level, Maybe do six feel a great. for your had I Okay, demand just ago? about starting

Matt Moynahan

one. this I hear okay? all on good -- take I'll Jorge, can feel me increasingly you actually

Gray Powell

hear can you. I Yes.

Matt Moynahan

Okay. right, you. thank All

Sorry. in forward. I with taking to and business visibility in stop. and CEO visibility going I'm behind the dual of one, every pleased then the the visibility had increasingly and without our hold teams process get have multicoated the really visibility two part and brig CRO I operational very we feel good our ability number as with Obviously,

priorities, focus one of priority focus you demand us and key on been for has to know, so the acquisition new generation our logo pipeline. drives and obviously that. in turn we As And which continue top is new

flywheel quarters the increasing to our been portion That you improving and an logo now take customers acquisition unified sell spinning is the new to multiple pipeline from has customers as get will sales obviously said, of coming entire has team do ability right. and that on existing the the our on execution getting see base portfolio. Our installed

Gray Powell

mean, of parts moving I then on still model. Okay, the we're of working the that's some helpful. And --

So, can big revenue help that kind extra little light, numbers QX okay, how on pretty hopefully Or the us just a just had term bit this there's think of question like Was in Can license good. constant headline understand some those was there looks the upside contract that ARR you help revenue -- down is beat, because you posted me should a but comparison even longer guide duration? pretty of items? revenue in you currency you basis. square or are about we the sustainability

Matt Moynahan

Jorge, add, from level seeing premise, coming component then with the as strong take to software revenue, recognition do okay. hardware Yes, we perpetual and issues, are related the hardware despite we the in on that the products. I chain high if do. mix the have anything there's Obviously, our for business, can subscription well demand please as supply revenue But

So, in ARR, But a by lumpy was can works effect of were will, of time-to-time, known as that line. in know, couple the loss two the that our contracts and given we from favor particular those case, of this all nature you QX. in in on were business. if buffer, impacted pieces things revenue almost but a be in place, are revenue side the of

from felt the dampen little the We And of our did bit we drivers So, a of that. enterprise. we SMB churn space two a pivot are that. experience for to some primary those in as

cross-sell couple ability as on now of a the past go ARR have little upsell, also that portfolio Those and well of our end slight dampening inability decisions dampening talked that sunset in effect products. We given products. quarters life we effect, of and about are coming about effect cross-sell over on spoke did from to to a bit a the

the between the would performance three from difference drivers the topline performance are those ARR that -- So, topline the give you primary ARR.

Gray Powell

Understood.

much. Thank very Okay. you

Matt Moynahan

Thank you.

Operator

please is question go next our of And your goes Anja you. to Anja, open. Soderstrom ahead, line Thank Sidoti.

Anja Soderstrom

progress be the for questions, thank my congratulations to on taking Yes, you and Hi. making. you appear good

other mentioning as go just to you sale you a are going of bit we that as you're some elaborate forward? longer that's that sort little on in think regions what there? well You're be cycles And getting regions. Can affecting seeing if

Matt Moynahan

Sure.

the say Just agreements the I'd at you lengthening associated side side. security than software our a high portfolio, at were more cycles level, if look digital sales the with

banking tokens, tied identity online meeting continue too, security that given we're supply and constraints. demand have we chain they're fact, largely the to seeing difficult time that authentication a for to In verification banking, and obviously the the end users. software of products online do demand but The well

cases And between mortgage is think so positive really refinance. and lending digital like used use a typically NDAs, a and engagements. of as and -- internal us. that's it cases, external with mix of it Think business documentation business with use are that's that a for very as customer internal processes, The things agreement external

integrated capability, CIOs some label given with a We customer, platforms, time-to-time, top cycles we companies given on internal being also inside into of our to the the seen sales reduce as have have business projects healthy lengthened from macroeconomic private environment. depending the priorities look

the use you facing, are volumes renewal upsell larger cases midyear. downstream some lessening, of or seen customer On a know, transaction impact impacts external have expansion which at we that contract might purchase or

of of to use the to think than refinance. far corporate macroeconomic to it the priorities environment to in as measure mortgages two like a as the transactions and the with cities the waterline as tied external up internal reduced cases So, projects tale a being internal regard

the customer mortgage-related pause insurance-related our And articles. so some the just base, and that's introduced of particularly some of in

Anja Soderstrom

then And do think you. talk to to going expanding long home of you become in them, move yourself how that to cycle you terms training in aggressively, they're is thank productive? How new Okay, can fast reps? pretty for

Matt Moynahan

a percentage at work which enabled is and high at, great a in enablement, hard session. January. do in global was is content the in something And a of have America personally we're European for I we'll question Europe a QX. enablement pack that our QX. enablement we kickoff sales and over we And in with Yes, North

is So, an process. ongoing this

believe Salesforce we're year. salesforce to by end next behind of the a slightly We tracking to but are tracking double plan to plan the on the hiring we

and drive the team to the are May, And quota the us over so levels attainment, sales plan time themselves getting as out performance the discussed productive, variables plan we the rent, when three for in quota go in significant deal to we size. the rolled

been right of though we for And to and into need sellers so feel in all and as there I offers place, action have pace new we have enablement with with comfortable that very those see good FY the to taking our XXXX. feel go It's sellers now a the do now, I and job us. the out great we but enablement top rate go enter

Anja Soderstrom

your And you what's of in and that recent do how how churn -- kind changed months?

Matt Moynahan

had couple of quarter. that were churn itself that to this was and contribution manifested That a known, this We of the contracts on one areas arr. of the effect dampening

And but have one-off in chronic, major where line. effect those Nothing no did in another trend of our We SMB No new, the small we place did manifest historically business, on themselves to trend infrastructure took that's enterprise. essentially And focus that space some experience the on from in has in are change the been two, cloud -- QX. segment, a s the to the dampening standpoint. SMB. we situations the churn of major

Anja Soderstrom

upside And Okay. EBITDA in the one. one adjusted What's the last guidance guidance? just -- upside the driving previous the versus

Matt Moynahan

you do that? to want Take Jorge, one? this speak

Jorge Martell

Can I tell got what, I can this hear me can I one. take you this. Yes, okay? you

Anja Soderstrom

Yes.

Matt Moynahan

Yes.

Jorge Martell

Okay.

there's some on for discipline been executing that we've -- of financial here. So, obviously, months, expenses I our is operation discipline think cost, the discipline factors that of sure. has One one past couple is capitalizing the software few impacted over a

then say, had And talking sequentially late well. different you're to roll pockets upside impact through been hiring a well benefit as we with of that portion other departments. of as see about, initiatives with of respect is there's restructuring starting that would certain hires The the as -- to or that areas also headcount-related that some lot the

that three those on. the can largest ones think are I I comment

Anja Soderstrom

That was you. thank me. Okay, for all

Jorge Martell

Thank you.

Operator

question the please to Rudy is ahead, And open. Rudy, go your D. you. goes next of Davidson. Kessinger A. Thank line

Rudy Kessinger

quarter-over-quarter there's finer just want on thanks any upside questions. out license? maintenance a go that Gray's Hey, term either term that in was grasp up quarter. renewals to quarter caught and I revenue for still much first, my just of point license, and to you question with the you how too? in the sequentially model on put by digital Is mix support the driven XX%, where large esignature it's up So, the back licensed agreements can subscription tough the was to two taking there in

Matt Moynahan

a subscription of significant much had QX. contracts closed the we in models QX. of an And as have the really impact that flow, of that Rudy, they couple Yes, at end way didn't

impact another on of the close the enterprise QX, element on really that the on the two but next the which comment flywheel changes manifest experience agreement And had no that spinning the to mix has there's given make themselves quarter. don't that have the end over I side. where we premise I that's the an get still acquisition. component security where quarters the we digital from software given a topline anticipate lumpiness phenomenon that And in until departures over weighted we new side, still at on on any two to we is So have large contracts can at deal has moment, time-to-time, three the they it logo that from given will we major than, heavy only perspective, QX, other product that have a

Rudy Kessinger

seven on down and expansion the Okay, then quarter. points rate, XXX%. next from dollar XXX%, base, last

definition Going of that be by the gross number. figure, churn impacting shouldn't that

pretty seven-point a put is again, So, points drop quarter-over metric? any could in on off there just why a you such finer significant that decline, quarter

Matt Moynahan

mid-single-digits them, some the take version sunset things, of the decisions you management. which of our but one agreements. -- associated I we mentioned, obviously, pipeline decisions decision de some have sunset of impact the understandably, And banking dampers, We that those customers when All deal flow; want selling on not those many we of of converted is discussions Let the of products. was of particular me scheme a we did But digital with of single-digits did higher other the sun-setting that Jorge? into that, of which hear for big base percentage sunset, cross were this available decision, pipeline sunset of, those installed play. had, an as at speak than and the millions Rudy portfolio underlying around generally of time. did risk to the in three into to conversations customers products had to analytics, in minimis of in on-premise Do order products that obviously has the does the purchase

one declined meaningful of in quarter-over-quarter. the that that I'm So invest reasons to trying was

Rudy Kessinger

the it Okay. you spent stock the September, process stock range quarter any behind just quarter? And million where didn't was back back buying just buy in in stock the why $X after looks the that wondering not in in then thought decision, down QX, trading $X.X especially me, back to buy for lastly, in you you stock the the consider $X in if like

Matt Moynahan

current the there's going But is our stock sources And levels. make always for And had uses was take the we a with we in do out we a at high further that know, point, to you investment prudent and the took the it corporate we obviously, continuous to community valuation. corporate believe the evaluate do as that. thought We building as a opportunity attractive we till development and to aligned at been a obviously, then a May to Yes, rolled M&A. market us allocation sure out fine reenter that. at before work, we to pause had very stock to is strategy hard new that, including a strategy on the level. a level, support put an all And pause at believe attractive That's of discussion very continue an we Board.

Rudy Kessinger

taking for Got it it, that's me. questions. for the Thanks

Matt Moynahan

Thank you, Rudy.

Operator

please [Operator And go Mattiacci is to open. you. question Nick Thank line goes of Craig-Hallum. your our next Nick, Instructions] ahead,

Nick Mattiacci

Hi, Thanks for taking Chad this on questions. for our is Nick Bennett.

year three think changed with we about three-year the the how I in macro guidance targeted and year, FX CAGR are the and that So, guess, ARR given targets differently? May, the much in about of given has for as any you now this linearity CAGR thinking updated

Matt Moynahan

behave they we their are land enterprise enterprise At the engine, end given is nature and up the do big factor feel and in here, our front deal do sales the like our both size marketing really of would, very moment, contract ramping enterprises in length. the size class of about products and good customers, The I we terms not. when efforts

feel no now, our selling the where guidance, deal incredibly first is productivity the see at. we're changes to company the very And oriented as upper But half so of important we our community the us of the and year next comfortable for with sizes reorder to pyramid. right of I half obviously, to

So, no now. chase guidance the right

Nick Mattiacci

of could Got you I hardware you if of on color revenue give may recurring on to more, sales expand that more launch And business? could it. or the record And cloud add guess that that the Digipass, maybe then connected a change component a recognition the offering. if upcoming

Matt Moynahan

launched be it. a with recognition will ratable It model with associated

much traditional So, go-to-market, installed anymore. it's With when do this we sold very base. I'm hardware connecting you device, we launch in and of getting service, portion by a team a intend it device everything. to cloud to of do it's of know, unified pure connected our will sales the taking a hardware cloud separate sales was it market. device many connected ARR. a sense, looking on the to a motion In forward be into the separate not a Historically, piece this as

document assurance relaunched, Our which whether traditional require may that high capability. firm just take Certainly product, a it to banking be as the as transaction, core. we that process, of a Room Virtual agreements is be belief the well banking know you advantage our digital able the for security this it, or transactions

chain with for we the that quarter favorable engage -- obviously, much soon it'd what We and it, a supply do we base our go line model, well, customers. further our a on product element haven't than journey be But And don't we the seeing uptake us guidance you making multi from haven't one on business is as response announcement that plan very given and and get talked on that. new on installed but this. we're sellers as product

soon. take of more you'll you you'll on that and So see happy offline you'll about talk see dynamics some but to information see the coming some

Nick Mattiacci

the taking for Thanks questions.

Matt Moynahan

you. Thank

Operator

you. Thank

no closing questions. to hand back for I'll further any have remarks. We Matt

Matt Moynahan

going Thank I'd and look with this to in like quarter's one your journey call. you We again everyone appreciate today. thank you you time us time. for along for for to joining this we updating on forward

Operator

all concludes This Thank you for Thank call. today's joining. you.

lines. disconnect now may You your

OneSpan (OSPN) 2 Nov 222022 Q3 Earnings call transcript