BOSTON & CARLSBAD, Calif. - OneSpan Inc. (NASDAQ: NASDAQ:OSPN), a global leader in digital security and e-signature solutions, today unveiled VISION FX, a new addition to its authentication portfolio designed to combat phishing and account takeover (ATO) threats in the banking sector. VISION FX integrates the company's patented CRONTO transaction signing with FIDO2 protocols to offer a phishing-resistant transaction security solution.
The digital transformation of the banking industry has brought with it an increase in cybersecurity risks, with potential digital fraud losses from ATO attacks expected to exceed $343 billion worldwide from 2023 to 2027. In response to this, OneSpan's VISION FX aims to provide a more secure method for banks to safeguard accounts and transactions against unauthorized access and social engineering attacks.
VISION FX features passwordless login and "What You See Is What You Sign" (WYSIWYS) technology, offering a zero-footprint solution with transaction details displayed on a dedicated device, enhancing the security of the authentication process. This approach is designed to be both secure for the banks and user-friendly for customers.
OneSpan has a three-decade history of providing security innovations to the banking industry, with its CRONTO technology securing millions of financial transactions annually. The company's expansion into the FIDO-powered product space includes DIGIPASS FXI BIO, a phishing-resistant authenticator for workforce authentication, and the newly announced DIGIPASS FX7, a simple FIDO2-enabled authenticator aimed at mitigating ATO attacks and supporting flexible work policies.
VISION FX and DIGIPASS FX7 will be showcased at the Authenticate conference from Monday to Wednesday in Carlsbad, Calif., where attendees can experience the latest in banking security for passwordless authentication.
This announcement is based on a press release statement from OneSpan Inc. For additional details on VISION FX, interested parties can visit OneSpan's product page. The company is recognized for securing digital transactions and agreements for major enterprises, including a majority of the world's largest banks, across over 100 countries.
In other recent news, OneSpan has been showing strong financial performance, with a significant 9% increase in revenue and a 15% rise in Annual Recurring Revenue (ARR) reported in the recent Q2 2024 earnings call. Adjusted EBITDA reached $16 million, further demonstrating the company's robust growth. OneSpan's strategic shift towards a software-centric business model has resulted in software and services now making up 75% of the company's total revenue. Despite an anticipated decrease in hardware revenue, OneSpan reaffirms its full-year revenue guidance, projecting revenues between $238 million and $246 million and ARR between $166 million and $170 million.
Rosenblatt has initiated coverage on OneSpan with a Buy rating, highlighting the company's significant improvement in its investment thesis due to its shift from hardware to a software-centric business model. The firm noted this strategic shift as a key driver for OneSpan's enhanced subscription revenue growth and profitability. Moreover, Rosenblatt pointed out that OneSpan is well-positioned for future growth due to an expanding product pipeline and a solid base of blue-chip customers.
Despite these advancements, OneSpan's stock is still trading at a discount compared to its peers, which Rosenblatt sees as an enticing opportunity for value-oriented investors. The firm suggests that the company's current valuation does not fully reflect the progress it has made in its business model transformation, presenting the stock as a potentially undervalued investment. These recent developments reflect OneSpan's strategic shift towards software and a focus on cost savings and targeted investments.
InvestingPro Insights
OneSpan Inc.'s (NASDAQ: OSPN) latest product launch aligns well with its strong financial performance and market position. According to InvestingPro data, the company has shown impressive growth with a 73.75% price total return over the past year and a 56.59% return in the last six months. This growth trajectory is supported by solid fundamentals, as evidenced by the company's revenue growth of 8.99% in the last twelve months as of Q2 2024.
InvestingPro Tips highlight that OneSpan holds more cash than debt on its balance sheet, indicating financial stability that could support its ongoing innovation efforts. Additionally, the company's net income is expected to grow this year, which could be partly attributed to the potential success of new products like VISION FX in addressing critical market needs.
The company's focus on combating digital fraud aligns with its profitable status over the last twelve months, as noted in another InvestingPro Tip. With a market cap of $594.2 million and trading near its 52-week high, OneSpan appears well-positioned to capitalize on the growing demand for digital security solutions in the banking sector.
For investors interested in a deeper analysis, InvestingPro offers 9 additional tips that could provide further insights into OneSpan's financial health and market potential.
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