OneSpan Inc. (NASDAQ:OSPN) Q2 2020 Earnings Conference Call - Final Transcript
Aug 11, 2020 • 04:30 pm ET
Good day, and welcome to the OneSpan Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Joe Maxa, VP of Investor Relations. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining the OneSpan Second Quarter 2020 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 Scott Clements, our CEO; and Mark Hoyt, our CFO. This afternoon, after market close, OneSpan issued a press release announcing results for our second quarter 2020. 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 2020, are forward-looking statements. We have tried to identify these statements by using words such as believes, anticipates, plans, expects, projects and similar words, and these statements involve risks and uncertainties and are based on current expectations.
Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. I direct your attention to today's press release and the company's filings with the US Securities and Exchange Commission for a discussion of such risks and uncertainties.
Please 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 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 August 11, 2020. Any forward-looking statements and related assumptions are made as of this date. Except as expressly required by the federal security laws, we undertake no obligation to update these statements as a result of new information or future events or for any other reason.
With that, I will turn the call over to Scott.
Scott M. Clements
Joe, thanks very much. Good afternoon, everyone, and thanks for joining us here today. There are a lot of moving parts in today's earnings release. So I'd like to start out by summarizing some of the key points for you.
Number one, our transition from perpetual license to recurring revenue contracts is ahead of schedule. We're seeing strong growth in both subscription and term license categories, though this is in near term, partly offset by the expected headwind from lower perpetual license sales.
Second, year-to-date, we are ahead of our plan on most measures, but there's still some quarter-to-quarter volatility in our P&L with some of the outperformance in Q1 impacting Q2's top line.
Number three, our product investments are paying off with strong growth in OneSpan Sign and good early results from our OneSpan Cloud authentication offering, which