Investing

Altai Capital Discloses Activist Position in OSPN / Onespan After Q3 Results

Fintel Staff

Published: November 23, 2022 3:12 am

Fintel reports that Altai Capital Management, L.P. has filed a 13D form with the SEC disclosing ownership of 2,300,000 shares of Onespan Inc (OSPN). This represents 5.8% of the company.

OneSpan helps protect the world from digital fraud by establishing trust in people’s identities, the devices they use and the transactions they carry out. This is done this by making digital banking accessible, secure, easy and valuable.

OneSpan’s Trusted Identity platform and security solutions significantly reduce digital transaction fraud and enable regulatory compliance for more than 10,000 customers, including over half of the top 100 global banks. Whether through automating agreements, detecting fraud or securing financial transactions, OneSpan helps reduce costs and accelerate customer acquisition while improving the user experience.

In their most recent financial update, the company reported the following Q3 highlights:

• Total revenue was $57.1 million, an increase of 9% compared to $52.3 million for the same quarter of 2021. Changes in foreign exchange rates as compared to the prior year period negatively impacted third quarter 2022 revenue by approximately $4.5 million.
• ARR grew 14% year-over-year to $135.8 million. Changes in foreign exchange rates as compared to the prior year period negatively impacted third quarter ARR by approximately $3.3 million.
• Digital Agreements revenue was $12.2 million, an increase of 20% year-over-year. Security Solutions revenue was $44.9 million, an increase of 7% year-over-year.
• Gross margin was 67% compared to 70% in the same period last year. Digital Agreements and Security Solutions gross margins were 80% and 64% compared to 72% and 69% in the same period last year, respectively.
• Total operating loss was $5.6 million, compared to operating loss of $2.0 million in the same period last year. Digital Agreements operating income was $2.2 million, compared to operating income of less than $0.1 million in the same period last year. Security Solutions operating income was $5.7 million, compared to operating income of $10.7 million in the same period last year.
• GAAP net loss was $7.2 million, or $0.18 per diluted share compared to $1.0 million, or $0.02 per diluted share in the same period last year.
• Non-GAAP net income was $1.3 million, or $0.03 per diluted share, compared to $1.2 million, or $0.03 per diluted share in the same period last year.
• Adjusted EBITDA was $4.5 million compared to $1.7 million in the same period last year.
• Cash, cash equivalents and short-term investments were $93.6 million at September 30, 2022. During the nine months ended September 30, 2022, we repurchased $5.7 million in shares of our common stock, compared to $7.5 million in shares repurchased during the nine months ended September 30, 2021.

What are other large shareholders doing?

Legion Partners Asset Management, LLC holds 3,193,312 shares representing 8.05% ownership of the company. In it’s prior filing, the firm reported owning 2,851,229 shares, representing an increase of 10.71%. The firm increased its portfolio allocation in OSPN by 12.68% over the last quarter.

Legal & General Group Plc holds 2,139,567 shares representing 5.40% ownership of the company. In it’s prior filing, the firm reported owning 2,232,180 shares, representing a decrease of 4.33%. The firm decreased its portfolio allocation in OSPN by 22.58% over the last quarter.

Neuberger Berman Group LLC holds 1,492,672 shares representing 3.76% ownership of the company. In it’s prior filing, the firm reported owning 1,388,535 shares, representing an increase of 6.98%. The firm decreased its portfolio allocation in OSPN by 58.71% over the last quarter.

Ancora Advisors, LLC holds 1,035,572 shares representing 2.61% ownership of the company. In it’s prior filing, the firm reported owning 1,303,816 shares, representing a decrease of 25.90%. The firm decreased its portfolio allocation in OSPN by 67.67% over the last quarter.

What is the overall Fund Sentiment?

There are 381 funds or institutions reporting positions in Onespan Inc. This is an increase of 14 owner(s) or 3.81%.

Average portfolio weight of all funds dedicated to Onespan Inc is 0.1063%, a decrease of 8.4842%. Total shares owned by institutions decreased in the last three months by 0.67% to 34,434,505 shares.

Fintel’s Fund Sentiment Score is a quantitative model that ranks companies from zero to 100 based on Fund Sentiment. Fund Sentiment is important because it tells you if funds are buying or selling – and in particular how the company ranks compared to other companies in the investing universe.

This article originally appeared on Fintel.