OSPN - Earnings call 4 2023

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Operator

Good day, and thank you for standing by. Welcome to the OneSpan Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. I would now like to hand the conference over to Joe Maxa, Vice President of Investor Relations. Please go ahead.

Joe Maxa

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

a Joining XXXX. Officer.This Interim Jorge Executive of our investor Victor our copy Chief announcing market after quarter the To close, me full Chief a Officer; fourth Financial results our release press call release on press our is and Limongelli, please today information, Martell, access website. afternoon, and year OneSpan and the issued for other visit

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

call release.In March will new statements XXXX. most over directly by call or in the undertake financial of reason.I a of for any that financial explanation reconciliations of law, to these related date. the addition, and the X, provided is other the assumptions obligation note as these measures update as made this no result now an conference date or have we statements future We information forward-looking GAAP to as required please this non-GAAP to Except Any turn for Victor. earnings of press and are comparable events measures

Victor Limongelli

strong Thank driving joined I Thank sharing like with already rightsize I X but impressed. decisions I everyone. efficient cash and its begin afternoon, the you, Joe, refocus solution to and the to relationships, and even I'm impressed for call it on flow. good ago, on company today's would profitability When by months important was growth, joining my customer OneSpan. cost set difficult revenue made structure you perspective its Today, had and more us.

as and more world's assets XX% great short met strong e-signature including build we enterprise firsthand ethic and are class And which operational an the the many began have to improvements, of largest last of my we first authentication have I than transaction upon, seen across work employees have technologies to X the excellence.In on solution. their focused organization. run, talented operational and We banks them months in customers, signing have dedication our year. industry-leading and continuing

fourth a competitive only towards able longer valued will quarter and with our to identifying work providers. customers more of to vis-a-vis put we which been at months, confident advantage I'm in offerings towards the be areas Over reorient OneSpan our offerings results. will by us highly prospects.Turning other couple over we but have I time our that those run, a areas our

growth of well, several years.During we year-over-year work on XX% approximately several executed EBITDA and in Their $XX year, end First, adjusted strong cost solid the resulting a adjusted margin ARR the growth revenue, X% to in a million. $XXX our hard representing savings resulted XX% reduced across XXXX revenue headcount quarter. to including savings quarterly team EBITDA to million, as vendor-related $XX and congratulate of of $XX.X than I million million or quarter, want more on to the in board by the annualized in XX% highest

from the our during more financial savings annualized annualized For on year, business than cost $XX reduction Jorge details to million. his our cost our units. review.Turning cost actions savings more will provide totaled

segments During solutions was to increase Growth Solutions from existing software by expansion in services the profitability, of restructuring double-digit customers expansion and hacking year-over-year our lower attacks. customers. and software quarter, from who operating revenue by primarily driven financial expenses, attributed business benefited in mitigate was partially which activities.Revenue both had and customers Security security driven authentication primarily unit driven our value industry-leading licenses a existing potential growth, mobile revenue and of hardware sequential to by in increased

from We significant existing case.We double-digit growth authentication health in benefited e-signature expected a substances were a customer. originally our deals upper with care part and hardware software verification controlled saw in mobile first also cloud an in X-figure use the signed a customer the contract vertical the of to security solutions hardware security, This few quarter for which had prescribing XXXX. for in in X-year close fourth quarter, of that electronic win an Digipass identity tokens

of similarly this time, Looking into at hardware last orders the year rest visibility Digipass at revenue. our at of for the to banking XXXX account is which our and customers, majority large strong

in of particularly sophisticated XXXX, hardware that demand combination in XX saw banking hardware visibility authentication in to a our sector, solutions. devices over we macroeconomic mobile months.In Cronto the segment and shift a the endpoint into past We less conditions towards have due mid-market more

channel Digipass also logo our grow products in authentication introduce In enterprise of important projects we we X-figure ROI. to to was last renewal and continue the contracts such several Digital business as market.Turning XXXX. rebuilding and expansion quarter and growth. and quarter, We new willing which on continue announced from BIO, targets workforce opportunities our expect focusing to trend strong X- line plan plan FXX fourth unit. spend to help top saw the customers our Agreements with the driving customer on to expansion this This to We're network year, in new

up its of customer than This industry X-year from the our financial high services is renewal over organization for and great support XXX the to using local and level the and use sales in core and integration teams, our contract than subscription. support on For example, customer across in ROI.New services Digital long-term cases in the growth productivity more increased e-signatures professional and doubled more strategy. attainment the to comment of of size our ease outstanding marketing remain single-digit millions a term Agreements

and team performance over a summarize to I'll of Jorge expect call from before turning the improved customers our our will more to goals review improvement We month.Next, financials. to value and year, goal this deliver continuous strive every to have our sales objectives our

to competitive company year. the progress, made We are units In achieving of accelerate mature see the framework committed sales of to we path, drive team to you the profile we increased to we XXXX XX. leverage the advantages of our including ROI of across our QX we enhance are our from recent by and organizations, positioned this our as our the exit making help to quarters, our operational operational level are goal driving I the time changes a the on and business align targets. significant costs focused achieve X under this our offerings on growth solution profile team with a am with improve creation excellence, growth low are I results, the XX and working streamlining of towards Rule better and focus cost rightsizing Rule and better and our we rigor structure our with marketing believe of sunsetting can to to our several name operational efficiency.As XX% few.We

work we Dutch million we in stock million the profitability December. our more commitments.Regarding However, help capital allocation, cash go-to-market $XX we'll tender auction used XXXX, to we in common than do, still we repurchase to offer in achieve including ensure monitor to and continue $XX closely modified have completed to our metrics

expect We focus shareholders.With believe and cash revenue strategic to and our for cash call decisions help over profitability and commitment to us in operational the additional to our to shareholders OneSpan profitability increased we our Jorge? with efficient I turn to and generation the revenue to will generation. that, Jorge. growth, are create returning decisions return driving value quarters right on consider achieve I future balance and to as growth capital will

Jorge Martell

and good Thank afternoon, you, everybody. Victor,

update our reviewing fourth full the restructuring rebalance drive Before an profitability. we quarter on and actions our have results, taken to provide I year to will XXXX help structure cost

the we started As Victor of of XX%. million quarter. savings annualized was during million We and mentioned, headcount in QX December year. from XX, fourth $XX taking we excess about quarter full headcount time XXXX, Net the for $XX action excess in the XXXX X% by reduction to the about cost reduced in in achieved fourth

completing executed the by million have $X approximating XXXX, restructuring our savings of activities. been of annualized additional largely which already most expect We end QX on,

anticipate financial to million to subscription existing $XX to in XX% expect to period customers.Fourth XX% $XX Digital cost now year-over-year projected expansion XXXX, accounted driven seen have grew in growth specific of last Agreements XX% million or We've additional ARR ARR We quarter the from XXXX rate, contracts our XX% million. recent by results. $XXX retention annualized the driven million metrics Solutions. improvements compared in million primarily in that XXXX and was reaching ARR. XXXX in growth to quarters, at Net XX% and revenue the previously.Turning some grew we $XX.X $XXX $XX grew NRR, approximately later in end to to these for Security to year, XXXX million XX% XXX%. of $XX savings total savings by to as end modest by of cost up same million by and in

led $XXX.X grew the in subscription e-signature grew revenue in growth driven by growth solution.QX year growth full software Security including authentication million consisting mobile the XXXX, fourth of security quarter, our revenue XX% Solutions For Agreements, products. in revenue to primarily XX% SaaS Subscription to by revenue, and $XX.X million. XX% Digital X% in XX%, increased

revenue quarter million subscription For of XXXX. revenue the XX% declined XXXX, and in $XX.X fourth of to the year-over-year full support million $XXX.X to grew $X.X year million.Maintenance

for and compared decline year legacy declined expected contracts full were by contracts. revenue support full both maintenance and from in in For the the to XXXX, from year on-premise QX year the perpetual offset Growth support XXXX. maintenance the X% XXXX and subscription full revenue as for X%

were converted to and as selling QX year.Digipass to renewal million time.Professional by $X.X the to by the hardware of this primarily mix contracts inventory $X.X in prior are contracts first maintenance year close for million recurring contracts quarter depreciating was of favorable on year our and our write-off XXXX of X% token ago. began expected of margin to decision depreciation full revenue strategic XXXX. for focus for Perpetual driven $X.X X% and new in of few XX% fourth an licenses revenue.Fourth a a in and quarter that quarter software which quarter to added only to XX% XXXX. contracts revenue XX% in years partially in projected XXXX. impairment the We a total quarter continue costs, $X.X were This revenue, and subscription the million declined approximately the These over included full quarter the taken due primarily the year annual software product second to the reversal perpetual revenue by services by gross was licenses compared grew closed perpetual quarters to few $X software trend QX in which quarter capitalized million we other contracts expect the approximately XXXX, million million and $X.X includes to legacy coming that to offset in originally in charge

share, X% year an income compared and year a lower and depreciation Product of and in the XXXX mix, fourth offset gross software an XXXX a of XXXX XXXX prior in restructuring included million loss year. million, partially loss of which charges, and the earnings and and XX% share the excludes $X.X the expenses charges. onetime per For and the from compared million in loss costs for million compares benefited of operating related increase in the capitalization margin costs.GAAP of $X.XX year. was the in GAAP respectively.Non-GAAP amortization, quarter per Increases was $XX.X in other for operating $X XXXX, from gross accounted headcount-related loss our which cloud and profit majority to GAAP $X.XX nonrecurring margin full compensation, of in per in last the income period change.Fourth million in operating year million quarter share versus $XX.X quarter to in per Solutions $X.X gross million GAAP EBITDA onetime Security full over same costs. XXXX fourth operating perpetual XX% decline tax fourth a loss and the by to and $XX.X XXXX. revenue decrease GAAP for to year maintenance full for XXXX, in and contracts net $X.XX of service million adjusted that to adjusted the and provider the increased on-premise same and discuss restructuring operating net and to of last the the revenue year. margin long-term for XX% offset year-over-year quarter XX% was $XX.X as $X restructuring grew and in of We net $X.XX X% $X.XX Full prior $XX.X now quarter credit by was quarter full by cost share XX% items and income $XX.X XX% $X.XX the compares our $X.X respectively. fourth GAAP restructuring other XXXX were driven ARR margin grew to other last primarily million quarter loss This margin quarter in was and was included incentive adjustments Subscription the period existing Full X% and fourth XXXX.Fourth transitioning authentication an XX% million in was year, to business to $XX $XX million mobile the per XXXX fourth primarily $XX.X was was for revenue Fourth maintenance $X.XX year XXXX This financial to million the plan security in to for our to the earnings Subscription ARR. XXXX unit. perpetual-based $XXX expected and full the in contracts results XXXX quarter $XX.X continue non-GAAP of X% year million compared and year, $XXX.X adjusted time. and year-over-year EBITDA non-GAAP share of full million the in respectively. of year $X.X XX% per compared year, share in and million. subscription solutions. EBITDA ARR and partially to million, grew adjusted respectively.I'll X million to EBITDA million

partially in declined on-premise, to $XX.X of reminder, in first of our revenue had sunsetting revenue and a which the year-over-year revenue, and renewals strong very primarily subscription was offset legacy on-premise $X.X QX support flow million in the deal attributed of subscription decline perpetual a solution.Maintenance we QX XXXX.Growth in As to from revenue, SaaS by consists quarter XXXX contracts primarily million. modest

in subscription As year. X% growth reversal is same as XXXX profit hardware perpetual increased mentioned XX% and mix previously, contracts.Digipass mostly in in year. revenue million full $X.X XX% primarily in to for compared attributable subscription earlier. inventory discussed the XX% margin was period increase from gross contracts offset product quarter and write-off revenue the expected revenue last the decline the favorable token The margin in the the increase in and of to QX

the on product XX% to given X% can $XX.X and operating gross accounts and reminder, and $XX.X and and million quarter lower XXXX XXXX for revenue X% grew ARR as to million, to quarter to Fourth the QX Digital to revenue $XX revenue majority to to margin, to average the accounted ARR improved included of $XX.X in same of and XX% grew $XX of expenses Subscription operating performance.Now to and XX% million. turning Agreements year-over-year margin grew XX% million year's $XX.X year quarter quarters. year in Agreements' compared An in based in in revenue million in margin revenue quarter. $XX.X and expect compared we was $X.X Digital fourth fourth grew any respectively, million. grew Subscription full increase $XX.X XXXX. not Digital $XX and Operating subscription for the income fluctuate was the profit fees million the a do and XX% XXXX reallocation XX% and to period million, expenses customer certain for the that million hardware respectively. in As last in gross XX% and mix. million SaaS future repeat Agreements.

in we year, from revenue solution version subscription sunsetting $XX.X quarters, to of forward. solution minimal grew the the and this are revenue discussed SaaS e-signature our million.As expect prior XX% For on-premise going

$X.X complete primarily year-over-year revenue, on-premise XXXX and quarter revenue fourth was and their XXXX, transition.Maintenance which $X quarter. from certain of of platform respectively, customers XXXX contributed million purposes, QX cloud the migrating subscription full support time million contracts million in respectively. recognized more in million was to million to $X.X comparison flat consists year in that for existing of subscription from on-premise For at the $X.X e-signature million needed revenue and fourth XXXX, the XXXX and and our and $X.X The $X.X

We complete primarily profit Fourth attributed margin decline line year was quarters trend to not in expect fourth their cloud quarter depreciation received average as customers compared the of in items capitalization is migrations partially credit XXXX. revenue in XX% repeat to prior in a service to coming this cloud. were XXXX as lower XX% XXXX The from the in margin gross of did in gross to by quarter in we the provider quarter. and that a software fees costs the the XXXX. These offset

operating QX loss items, year was points profit and margin have higher prior approximately quarter. million as year.Operating XXXX an of last $X.X been than the million $X.X $X.X gross QX loss XXX compared Excluding these basis million of operating in profit to would last an

for the the to reallocated in with Security along Digital expenses segment the just from in As which change a Solutions Agreements, our items profitability reminder, discussed. accounted quarter, of the we fourth year-over-year in QX reporting XXXX, majority

of sequential completed XXXX. tender in We December $XX.X to XXXX million cash to balance investments million QX in Our at quarter restructuring including of primarily we to million $XX.X cash, contributed sheet. include efforts the $X of stock, efficient million short-term XXXX. payments capital and in million Dutch $XX the fourth end XXXX million compared growth expenditures, costs. of in via on capitalized with equivalents approximately $XX.X costs, Key uses ended million cash improvement.Turning modified and common and $XX to XXXX restructuring $XX the acquisition-related software repurchase focus offer in the in our

in debt.Consistent from have expect year, flows cash the with made in XXXX.Geographically, we XX% XXXX no fourth XX% for region quarter model from mix our long-term revenue of we was We year, last and changes same to positive by generate our in compares operating operations fourth Americas of XX% This quarter XX%, in last XX% XX% to the Asia and Pacific. the from EMEA, from respectively. regions the the

For the the cost we full profile, with provide model generation structure XXXX, resulted our XXXX Americas adjustments compared operating outlook. combined from the from to improvement substantial to driving to expected our Asia made XXXX, profitability. in focus XX% a respectively.I XX% mix our same EMEA, was and from now update to our an will by and XX% with year region our and on XX% regions in operational XXXX the revenue XX% from rigor Pacific The in XX%, of our rebalance our in in growth cash growth expectation efficient financial

to with million from target growth. for the operational software to of financial range $XX $XX million, range operations to revenue million, in primarily communicated the range million, ARR the in full million be our the and on range expect low consistent $X capitalized in we changes of with position to approximately for have of range company. margin to For the mid-single-digit CapEx be long-term to XX% $XXX previously million the $XX of improve $XXX of payments. million EBITDA generate and XX% we $XXX of in to consistent million, communicated target cash restructuring-related consistent XXXX, to $XXX also efficiency to our of focus with made to best the be $XX to practices, And costs.Consistent to our year.We includes $XX with low expect the million $XX year in our which mid-range XXXX range to in to of in adjusted of million million be previously the

revenue to sunset X, many and our stand-alone there $X.X unit analytics with and As less XXXX.Beginning XXXX, discussed are business We we and risk end and from of on-premise transitioned to to verification offerings. to Digital solution flow, ARR other calls, this business net our prior greater a Digital products of identity e-signature cloud-based deal portfolio. in security products by Agreements will impact from Agreements sunset our these than million made alignment our [ be product that e-signature to our a both estimate customers we reflect the solutions of January our decision ] transitioning unit

with an ARR.Lastly, the gross We ARR XXXX the unit expect a in verification Agreements, points to in in mainly sunsetting which related we sales changes basis increase first affect to the and to relocation gross offset expected Digital software of XXXX. in costs in is Agreements increase we combined ARR, by expirations.By quarter started marketing decline reduce decrease This of to XXXX a capitalization primarily Security related from Agreements, of quarter sequential our that Digital expenses of in to first relocated of XXXX. and professional made depreciating support products XXX services modest business depreciation approximately result Digital revenues. sequential by contract in in expected We margin expect Agreements' NRR and we costs, customer identity margin modest timing considering Digital and in to change, sequential Solutions' certain cost a profit will

items, happy will we compared about as and I will in now concludes these to Agreements increase Digital basis gross be XXXX.That profit to your remarks. points my margin XXX questions. Excluding take estimate by XXXX Victor

Operator

Davidson. D.A. question [Operator of Kessinger Instructions] Our the from first Rudy line with come will

Rudy Kessinger

than next count. I'll I simple, on this pieces this call I just anybody margins, sure on year? Jorge, more gross -- should number we of guess, year, it can -- be you keep could There's a they XX% comments. should this I'm moving model mean what

Jorge Martell

question. the for Thanks

before dynamics that a walk number. So I tell through year, would few a to I next I want expect you there's for

increased is, heard one the [indiscernible]. depreciation year, next amortization or you about first So

higher So did than DA to to right. impact continue that's year, it this going

is of EMEA APAC well, on second the The hardware particular margin mix drives gross versus component product for that which business. that mix is security as and the the clients

And better-than-expected EMEA. with so we -- see APAC we continue year ended to versus this

versus normalize expect, margin, we'll We in a a to drop bit, bit so that see APAC little EMEA of we'll XXXX, that see so consistency there. more a

So to net debt, that gross XXXX. just is think I with you puts the high would XXXX [indiscernible] margin consistent level the kind be expect of answer. something This consistent

Rudy Kessinger

just or it read And it then to should And then slightly pull both all expect And on to hardware, strong next back to Was any it's then? maintenance do correctly. to flat pretty Solutions actually support year down? to in make quarter. and or again sure you a Agreements expecting Security decline. caught hardware be Digital We there and forward up I continue be

Jorge Martell

house those on DA correct life maintenance of the side expect the you the and the would is decrease. support, you're that of So is for the end side to SaaS conversions. so on-premise that's to by on continue to Again,

We will lower. expect that

the side, by of [ because ] answer Security conversions, is So to that yes term that think lower there. the signs On I the right? perpetual so again, the we expect

the the mentioned, margins largest of margins some comes average. hardware, the APAC have on mix I higher product XXXX QX lower strong did very because that right, client banks at the and On EMEA, than a we as of generally with

And so we in normalize a expect that XXXX. bit to little

were we margins, that from would included deals from QX the accelerated, okay. QX to higher Some upside of

right. XXXX, when revenue into would why case, better hardware, seasonally which QX, this QX at look because on of company that's margin we also year, normal we expect QX deals some not lower but pulled a normally the our is you for so And only

QX. So that to you'd as in expect well impact

Rudy Kessinger

kind level, having high And here now. more few for been then Victor, months a I guess, of just

higher long you a has you a Just know, to see business the higher drive room growth? do achieve basis? As drive all where growth sustainable of time organization and now. we the really the see do levels that improve go-to-market struggled on to Where to levels opportunities of for

Victor Limongelli

I of Rudy. X there I've a couple Thanks, been mean X-month my One, was Yes. here are months. things. anniversary. actually Yesterday just

get into to the many a want the We of don't details, there business, product did I side I new mention on Security opportunities. but quarter. think last So are too

We other authentication later well. in we haven't planned really markets provide things in And year. adjacent that the opportunities are there might have some been like that for workforce as

within we're identify going that our looking time existing customer highest areas. businesses overall, we to base And our So on be so can segment, even the to those. spend the value

So there's some potential as that growth way well. in

Operator

Our question of Gray the Powell will come from BTIG. next line with

Gray Powell

A Maybe questions on side. few to start off, my Victor.

efficient operational mentioned say just or then far? I the you of Rudy's for should the surprised questions. you getting to days. you in more more XX firm What you've kind mean been in don't just so So at changes, want strategic. And most be terms too following nature, expect just much, more I of know up on but potential we them to

Victor Limongelli

strength the exactly top me? XXX What days XX an the I Gray. struck things the have. the word, of is me relationships asset XX over of surprised don't really of incredible surprise last as company. but the we if I I mean, got Thanks, one involved for customer know the the is banks right that is

is there's pieces, amount lot very, well. and lot X been over a of certainly very Rudy moving first And the the team the the a team that's So working mentioned the executed second in very the thing. of you has in then and well did the last change really And has QX, been hard. execution months, can it thing through change. see had of

to is plans. areas also But your second going we explore for operational absolutely XXXX efficiency feature think. to increased are I an question, It's of important As our growth. feature, the overriding

in we're -- though, to be going efficient an do As we we're do that, going to it way.

to an hire XX adjacent into if expect us should salespeople go move decide to after to XX So it. you not or market, go we

iterate we'll super a fashion. efficient and test, try we'll we'll opportunities, in it do identify we As to

Gray Powell

then And question that of a year. just sort on savings I had the cost achieved last you

have want decks the the over make in the sure understand course to year. I correctly. you of So good I charts some just slide it

close that came number? the to $XX of question that XXXX. on million starting in $XX Like totaled came is savings So out QX. the guess we in know the the know is million million point what We I my QX. cumulative cost out end at $XX.X

Just the line try should wondering of the how much to came like out expanded? We up just sort have first of during things year. how half

Jorge Martell

Yes.

take So I one, can that Gray.

We So step Phase Phase you and and the I had and close end, completed. XX%. range for we XX% at kicked you Then in -- that to XXXX. high QX that a so X, and The have if so ended I the was completed about Phase Phase was cumulative to to was take right? up, think X X look early off. back think, XX.X%,

would of announced And in $XX.X the from million, X, QX, that I QX QX we so plus about new Phase right. little actions that and say totaled a

that in was million give so That we'll completed. the is number QX. is And $XX.X

quarter, like million $XX So another discussed last $XX.X add year-to-date. that $XX.X then And in quarter, QX, your this that's we plus million you the million.

Gray Powell

line trend million, the So to $XX.X $XX is QX. $XX QX million, million,

Jorge Martell

Correct.

it. got You

Gray Powell

my Then side. last right. one on All

phase that anything went about of the I year are these because, we're for like to onetime So huge in like Was that EBITDA sort numbers million. quarter a $X I we're mean, like nature that about. end created cost million numbers, the cost-saving savings, understand in, like but right, I there like headwind mean, from of talking talking $XX

numbers EBITDA very growth trying large reconcile like what XXXX? I'm to like appears in lower cost-saving the to just versus So on be

Jorge Martell

Yes.

to that sales started have of the equation QX, in think we the QX I piece started the and you factor QX and that of in also in. And was we in part but exited with to first factor heavily in and really investing think we marketing. that half is QX that's I

example, an probably to XX, to right. months you the I We number XX of believe, in Just XXXX, about hired, first of close sellers. sellers, X give

And so made that into have start number, when earlier to that taking with to okay. savings, cost to year, you you offset investment this the we that take all in then get the account

Operator

Alex Our of question the Hantman from Instructions] with [Operator will next line come Sidoti.

Alex Hantman

more for first around to guidance. on This would is I My Soderstrom. Alex bit a hear love little Hantman Anja context question, the

revenue mid from for middle you bring EBITDA. about higher and for the the to to some think you to So the that I scenarios maybe on mentioned that and end? you're low even Can guidance low the target you talk of of

Jorge Martell

question. the for Thanks

you shipments. is because of I range So you is in timing that know, that see business, the to think the for lumpiness the of hardware of as lumpy account part

part So guide that is lumpiness. to the there that consider of

on upfront revenue, component right? is primarily again, is term the license other primarily parts recognized on that's this The perspective. that from And is a of software the because, you'll see security sometimes this --

you have the lot deals quarter, have more close seasonality expectation particular may more some so completely is spots. a particular these which And SaaS may or trends year, a Where in of on is of or you'll those not business DA.

some so [ much although doesn't is ] log that there. or play of obviously, there And new a revenue factor, that new potential

the can that to X are the comment Alex factors, those range. I you So regarding

Alex Hantman

for improvement And And I much how think elaborate was you there sales is? productivity I level sales very you would say briefly force average, force, mentioned on of but room do if achieved? could you has the think wondering what you

Jorge Martell

Yes. metrics, on We comment those don't Alex. normally

of But and that that efficiency -- well. here includes been I our can your I as we is our in that with, GMs sales of with marketing. for -- the -- well chime obviously, one identifying to One as love tasked working to And dollar as get improve you are has and sellers. the spend and think this Samy is productivity things that Sameer as the and the of includes the efficiencies sales things

there. additional turn So it to for comments over Vic, I'll you

Victor Limongelli

Jorge. Yes. Thanks,

and company, OneSpan, there any things a And takes were a productive. years I the of it is not few ramp the So at fully takes bunch for of last sales saw it over think you whole up typically while new just people. in one OneSpan to but become salespeople --

started. Just

over a through ago. you can hit productivity close longer team but or the a the much least At Going X-month probably this a who ramp-up the to provide and period than a mark. we year point, more year details, had tenured at Jorge, year or People have -- we have high. wasn't

the And the so positions naturally, they been longer. productivity to in that as been have working have increase longer and their expect accounts we --

Operator

to That Joe back remarks. concludes session. today's question-and-answer turn closing Maxa for the call I'd to like

Joe Maxa

day. sharing and quarter. forward us with nice everyone, We you, next look appreciate a and you our time your Thank have again, to progress joining Thanks today. for

Operator

call. conference Thank today's you concludes This participating. for

You now disconnect. may

OneSpan (OSPN) 6 Mar 242023 Q4 Earnings call transcript