OneSpan Inc.

Hello and welcome to today's OneSpan first quarter 2022 earnings conference call. My name is Bailey and I'll be the moderator for today's call. All lines will be muted during the presentation portion of today's call with an option for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the conference over to Joel Maxer, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Hello, everyone, and thank you for joining the OneSpan first quarter 2022 earnings conference call. This call is being webcast and can be accessed on the investor relations section of OneSpan's website at investors.onespan.com. Joining me on the call today is Matt Moynihan, OneSpan's chief executive officer, and Jan Kays van Gaalen, our interim chief financial officer. This afternoon, after market close, OneSpan issued a press release announcing results for our first quarter 2022. To access a copy of the press release and other investor information, please visit our website. Following our prepared comments today, we will open the call for questions. Please note that statements made during this conference call that relate to future plans, events, or performance, including the outlook for full year 2022, are forward-looking statements. These statements use words such as believes, anticipates, plans, expects, projects, and similar words, and these statements involve risks and uncertainties and are based on current assumptions. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. I direct your attention to today's press release in the company's Form 10-K and Form 10-Q filings with the U.S. Securities and Exchange Commission for a discussion of such risks and uncertainties. Also note that certain financial measures that may be discussed on this call are expressed on a non-GAAP basis and have been adjusted from a related GAAP financial measure. We have provided an explanation for and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the earnings press release. In addition, please note that the date of this conference call is May 3rd, 2022. Any forward-looking statements and related assumptions are made as of this date. Except as required by law, we undertake no obligation to update these statements as a result of new information or future events or for any other reason. Before turning the call over to Matt, I want to remind everyone we will be hosting an Investor Day in New York City on May 17th. The event will also be webcast on our Investor Relations website. Please contact me at joe.maxa at onespan.com if you are interested in attending the live event. I will now turn the call over to Matt.

Thank you, Joe, and good afternoon, everyone. Thank you for joining us on the call today. I'd like to begin by thanking our talented employees for their extra efforts over the last several months as we thoughtfully and thoroughly explored, developed, and finalized our long-term strategic plan, which we will discuss in detail with you at our Investor Day two weeks from today. I've been very impressed with the level of dedication, teamwork, and professionalism displayed throughout the process. And I can tell you, enthusiasm is building both internally and with our customers about the direction we are taking. We accomplished a lot over the last several months, all the while remaining focused on driving first quarter results, which I will discuss in a few minutes. First, let me provide a glimpse into what you will hear at our investor day. We will update you on our go-forward strategy. It will include the following three tenets. First, we will operate as one team spanning the globe, united in one go-to-market strategy behind a shared vision and mission. Second, our two solution portfolios, digital agreements and security solutions, will have clear roadmaps, team structures, operational focus, and improved execution. And third, we will accelerate our growth in the broader digital agreements category, which includes e-signature, virtual room, and other solutions. In addition, we will also return our total security, both hardware and software, to growth and operate in a more capital-efficient way to deliver increasing profitability over our three-year plan. As I mentioned before, we are in very good position with the core building blocks in place to drive the next generation of growth for OneSpin. Digital agreements and cybersecurity are both important markets that will only become even more important to enterprises in the years to come. We have a customer base that includes many of the largest and most security-conscious companies in the world, companies that trust us to mitigate their risk of fraud, help them comply with regulations, and deliver user-friendly experiences in their mission-critical business processes, including use cases such as new bank account openings, new customer acquisition, and business-to-business wire transfers. As a result, we plan to aggressively penetrate the broader enterprise segment and tightly integrate our security technologies into our digital agreement solutions as a key and core differentiator in the market. There is a significant opportunity in front of us, and I'm excited to share more details on our strategy and outlook with you soon. Turning to the first quarter, we reported 21% ARR growth and 22% recurring revenue growth, led by strong sales of e-signature solutions. Year over year, we saw modest top-line growth with increased operating efficiencies resulting in improved adjusted EBITDA as compared to the first quarter of last year. We won several new logos in the first quarter and expanded our business within both digital agreements and our security solutions. In particular, I'd like to highlight a multi-year seven-figure ACV e-signature contract closed in Q1 with a global revenue lifecycle management company. The company decided to replace its internal e-signature solution in order to meet their growing enterprise customer needs. It was an important competitive win for us, and I want to explain why. E-signature requirements live in many cloud and SaaS transaction platforms that enable the secure execution of contracts as a core component of their value proposition. Our enterprise class feature set, ease of integration, and our ability and willingness to white-label our solutions were key factors in this win. We believe more such use cases exist as the market matures. In the near term, our selling efforts will continue to focus on providing new and existing customers with our core solutions as we progress in our journey. Stay tuned for more as I look forward to discussing our innovation, go-to-market strategy, and capital realignment plans with you soon. With that, Yankees will now take you through our financials. Yankees? Thank you, Matt.