Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 01, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-24389 | ||
Entity Registrant Name | OneSpan Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4169320 | ||
Entity Address, Address Line One | 1 Marina Park Drive | ||
Entity Address, Address Line Two | Unit 1410 | ||
Entity Address, City or Town | Boston | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02210 | ||
City Area Code | 312 | ||
Local Phone Number | 766-4001 | ||
Title of 12(b) Security | Common Stock, par value $.001 per share | ||
Trading Symbol | OSPN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 588,629,980 | ||
Entity Common Stock, Shares Outstanding | 37,789,737 | ||
Documents Incorporated by Reference | Certain sections of the registrant’s Notice of Annual Meeting of Stockholders and Proxy Statement for its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001044777 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Chicago, IL |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 42,493 | $ 96,167 |
Restricted cash | 1,037 | 1,208 |
Short-term investments | 0 | 2,328 |
Accounts receivable, net of allowances of $1,536 in 2023 and $1,600 in 2022 | 64,387 | 65,132 |
Inventories, net | 15,553 | 12,054 |
Prepaid expenses | 6,575 | 6,222 |
Contract assets | 5,139 | 4,520 |
Other current assets | 11,159 | 10,757 |
Total current assets | 146,343 | 198,387 |
Property and equipment, net | 18,722 | 12,681 |
Operating lease right-of-use assets | 6,171 | 8,022 |
Goodwill | 93,684 | 90,514 |
Intangible assets, net of accumulated amortization | 10,832 | 12,482 |
Deferred income taxes | 1,721 | 1,901 |
Other assets | 11,718 | 11,095 |
Total assets | 289,191 | 335,082 |
Current liabilities | ||
Accounts payable | 17,452 | 17,357 |
Deferred revenue | 69,331 | 64,637 |
Accrued wages and payroll taxes | 14,335 | 18,345 |
Short-term income taxes payable | 2,646 | 2,438 |
Other accrued expenses | 10,684 | 7,664 |
Deferred compensation | 382 | 373 |
Total current liabilities | 114,830 | 110,814 |
Long-term deferred revenue | 4,152 | 6,269 |
Long-term lease liabilities | 6,824 | 8,442 |
Long-term income taxes payable | 0 | 2,565 |
Deferred income taxes | 1,067 | 1,197 |
Other long-term liabilities | 3,177 | 2,484 |
Total liabilities | 130,050 | 131,771 |
Stockholders' equity | ||
Preferred stock: 500 shares authorized, none issued and outstanding at December 31, 2023 and 2022 | 0 | 0 |
Common stock: $0.001 par value per share, 75,000 shares authorized; 41,243 and 40,764 shares issued; 37,519 and 39,726 shares outstanding at December 31, 2023 and 2022 | 38 | 40 |
Additional paid-in capital | 118,620 | 107,305 |
Treasury stock, at cost, 3,724 and 1,038 shares outstanding at December 31, 2023 and 2022, respectively | (47,377) | (18,222) |
Retained earnings | 98,939 | 128,738 |
Accumulated other comprehensive loss | (11,079) | (14,550) |
Total stockholders' equity | 159,141 | 203,311 |
Total liabilities and stockholders' equity | $ 289,191 | $ 335,082 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Accounts receivable, allowance for doubtful accounts | $ 1,536 | $ 1,600 |
Stockholders' equity | ||
Preferred stock, shares authorized (in shares) | 500 | 500 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000 | 75,000 |
Common stock, shares issued (in shares) | 41,243 | 40,764 |
Common stock, shares outstanding (in shares) | 37,519 | 39,726 |
Treasury stock, shares outstanding (in shares) | 3,724 | 1,038 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Total revenue | $ 235,106 | $ 219,006 | $ 214,481 |
Cost of goods sold | |||
Total cost of goods sold | 77,391 | 70,436 | 71,546 |
Gross profit | 157,715 | 148,570 | 142,935 |
Operating costs | |||
Sales and marketing | 70,235 | 60,949 | 62,730 |
Research and development | 38,420 | 41,735 | 47,414 |
General and administrative | 58,267 | 55,552 | 53,031 |
Restructuring and other related charges | 17,311 | 13,310 | 0 |
Amortization of intangible assets | 2,353 | 4,139 | 5,888 |
Total operating costs | 186,586 | 175,685 | 169,063 |
Operating loss | (28,871) | (27,115) | (26,128) |
Interest income (expense), net | 2,090 | 595 | (1) |
Other income (expense), net | (532) | 14,827 | (14) |
Loss before income taxes | (27,313) | (11,693) | (26,143) |
Provision for income taxes | 2,486 | 2,741 | 4,441 |
Net loss | $ (29,799) | $ (14,434) | $ (30,584) |
Net loss per share | |||
Basic (in dollars per share) | $ (0.74) | $ (0.36) | $ (0.77) |
Diluted (in dollars per share) | $ (0.74) | $ (0.36) | $ (0.77) |
Weighted average common shares outstanding | |||
Basic (in shares) | 40,193 | 40,143 | 39,614 |
Diluted (in shares) | 40,193 | 40,143 | 39,614 |
Product and license | |||
Revenue | |||
Total revenue | $ 130,848 | $ 121,426 | $ 120,358 |
Cost of goods sold | |||
Total cost of goods sold | 48,676 | 45,106 | 46,196 |
Services and other | |||
Revenue | |||
Total revenue | 104,258 | 97,580 | 94,123 |
Cost of goods sold | |||
Total cost of goods sold | $ 28,715 | $ 25,330 | $ 25,350 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (29,799) | $ (14,434) | $ (30,584) |
Other comprehensive loss | |||
Cumulative translation adjustment, net of tax | 3,689 | (7,245) | (2,997) |
Pension adjustment, net of tax | (222) | 3,859 | 2,056 |
Unrealized gains (losses) on available-for-sale securities | 4 | 18 | (21) |
Comprehensive loss | $ (26,328) | $ (17,802) | $ (31,546) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury - Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 40,103 | |||||
Beginning balance at Dec. 31, 2020 | $ 257,340 | $ 40 | $ (5,030) | $ 98,819 | $ 173,731 | $ (10,220) |
Beginning balance, treasury stock, at cost (in shares) at Dec. 31, 2020 | 250 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (30,584) | (30,584) | ||||
Foreign currency translation adjustment, net of tax | (2,971) | 26 | (2,997) | |||
Share-based compensation | 4,354 | 4,354 | ||||
Vesting of restricted stock awards (in shares) | 385 | |||||
Tax payments for stock issuances (in shares) | (145) | |||||
Tax payments for stock issuances | (2,923) | (2,923) | ||||
Unrealized gains (losses) on available-for-sale securities | (21) | (21) | ||||
Share repurchases (in shares) | (342) | 342 | ||||
Share repurchases | (7,471) | $ (7,471) | ||||
Pension adjustment, net of tax | 2,056 | 2,056 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 40,001 | |||||
Ending balance at Dec. 31, 2021 | 219,780 | $ 40 | $ (12,501) | 100,250 | 143,173 | (11,182) |
Ending balance, treasury stock, at cost (in shares) at Dec. 31, 2021 | 592 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (14,434) | (14,434) | ||||
Foreign currency translation adjustment, net of tax | (7,246) | (1) | (7,245) | |||
Share-based compensation | 8,642 | 8,642 | ||||
Vesting of restricted stock awards (in shares) | 263 | |||||
Tax payments for stock issuances (in shares) | (92) | |||||
Tax payments for stock issuances | (1,587) | (1,587) | ||||
Unrealized gains (losses) on available-for-sale securities | 18 | 18 | ||||
Share repurchases (in shares) | (446) | 446 | ||||
Share repurchases | (5,721) | $ (5,721) | ||||
Pension adjustment, net of tax | $ 3,859 | 3,859 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 39,726 | 39,726 | ||||
Ending balance at Dec. 31, 2022 | $ 203,311 | $ 40 | $ (18,222) | 107,305 | 128,738 | (14,550) |
Ending balance, treasury stock, at cost (in shares) at Dec. 31, 2022 | 1,038 | 1,038 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (29,799) | (29,799) | ||||
Foreign currency translation adjustment, net of tax | 3,689 | 3,689 | ||||
Share-based compensation | 14,252 | 14,252 | ||||
Vesting of restricted stock awards (in shares) | 741 | |||||
Tax payments for stock issuances (in shares) | (262) | |||||
Tax payments for stock issuances | (2,939) | (2,939) | ||||
Unrealized gains (losses) on available-for-sale securities | $ 4 | 4 | ||||
Share repurchases (in shares) | (2,700) | (2,686) | 2,686 | |||
Share repurchases | $ (29,155) | $ (2) | $ (29,155) | 2 | ||
Pension adjustment, net of tax | $ (222) | (222) | ||||
Ending balance (in shares) at Dec. 31, 2023 | 37,519 | 37,519 | ||||
Ending balance at Dec. 31, 2023 | $ 159,141 | $ 38 | $ (47,377) | $ 118,620 | $ 98,939 | $ (11,079) |
Ending balance, treasury stock, at cost (in shares) at Dec. 31, 2023 | 3,724 | 3,724 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss from operations | $ (29,799) | $ (14,434) | $ (30,584) |
Adjustments to reconcile net loss from operations to net cash used in operations: | |||
Depreciation and amortization of intangible assets | 6,479 | 7,066 | 8,926 |
Loss on disposal of asset | 455 | 0 | 0 |
Write-off of property and equipment, net | 2,728 | 3,828 | 0 |
Impairment of inventories, net | 143 | 0 | 0 |
Gain on sale of equity-method investment | 0 | (14,810) | 0 |
Deferred tax benefit | 118 | 1,637 | 2,823 |
Stock-based compensation | 14,252 | 8,642 | 4,354 |
Allowance for doubtful accounts | (65) | 184 | (2,705) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,571 | (9,705) | 2,047 |
Inventories, net | (3,275) | (2,168) | 2,209 |
Contract assets | (574) | 52 | 3,787 |
Accounts payable | (253) | 9,261 | 2,716 |
Income taxes payable | (2,367) | (1,140) | (2,525) |
Accrued expenses | (1,531) | 2,197 | 3,089 |
Deferred compensation | 9 | (504) | (725) |
Deferred revenue | 2,015 | 8,173 | 9,713 |
Other assets and liabilities | (641) | (4,038) | (5,870) |
Net cash used in operating activities | (10,735) | (5,759) | (2,745) |
Cash flows from investing activities: | |||
Purchase of short-term investments | 0 | (15,812) | (59,925) |
Maturities of short-term investments | 2,330 | 48,550 | 51,149 |
Additions to property and equipment | (12,484) | (4,996) | (2,169) |
Additions to intangible assets | (59) | (29) | (35) |
Cash paid for acquisition of business | (1,800) | 0 | 0 |
Sale of equity-method investment | 0 | 18,874 | 0 |
Net cash provided by (used in) investing activities | (12,013) | 46,587 | (10,980) |
Cash flows from financing activities: | |||
Repurchase of common stock | (29,155) | (5,721) | (7,471) |
Tax payments for restricted stock issuances | (2,939) | (1,587) | (2,923) |
Net cash used in financing activities | (32,094) | (7,308) | (10,394) |
Effect of exchange rate changes on cash | 997 | (372) | (895) |
Net (decrease) increase in cash | (53,845) | 33,148 | (25,014) |
Cash, cash equivalents, and restricted cash, beginning of period | 97,375 | 64,227 | 89,241 |
Cash, cash equivalents, and restricted cash, end of period | 43,530 | 97,375 | 64,227 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | 4,989 | 2,025 | 7,700 |
Cash paid for interest | $ 0 | $ 0 | $ 0 |
Description of the Company and
Description of the Company and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Company and Basis of Presentation | Description of the Company and Basis of Presentation Description of the Company OneSpan provides security, identity, electronic signature (“e-signature”) and digital workflow solutions that protect and facilitate digital transactions and agreements. The Company delivers products and services that automate and secure customer-facing and revenue-generating business processes for use cases ranging from simple transactions to workflows that are complex or require higher levels of security. The Company’s solutions help its customers ensure the integrity of the people and records associated with digital agreements, transactions, and interactions in industries including banking, financial services, healthcare, and professional services. OneSpan has operations in Austria, Australia, Belgium, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K.), and the United States (U.S.). Business Transformation In December 2021, the Company's Board of Directors approved a restructuring plan (the “restructuring plan”) designed to advance the Company's operating model, streamline its business, improve efficiency, and enhance its capital resources. The first phase of this restructuring plan began and was substantially completed during the three months ended March 31, 2022. In May 2022, the Company's Board of Directors approved additional actions related to the restructuring plan and the Company announced a three-year strategic transformation plan that began on January 1, 2023 (the "2022 strategic plan"). In conjunction with the 2022 strategic plan and to enable a more efficient capital deployment model, effective with the quarter ended June 30, 2022, the Company began reporting under the following two lines of business, which are its reportable operating segments: Digital Agreements and Security Solutions. As a result of the ongoing strategic transformation, the Company refined its operating segment allocation methodology to better align internal and external costs more directly to where the employee efforts and company resources are being spent on each segment. The Company applied this revised methodology on a prospective basis beginning in 2023 . For further information regarding the Company’s reportable segments, see Note 3, Segment Information. Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Certain amounts in prior periods have been reclassified to conform with current period presentation. Principles of Consolidation The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company regularly assess these estimates, including but not limited to, stock-based compensation including the determination of the fair value of our stock-based awards, realization of deferred tax assets, pension obligations, estimated life of our long-lived assets, purchase price allocations for business combinations, valuation of the acquired intangibles purchased in a business combination, valuation of goodwill, estimated standalone selling price of our performance obligations, and estimated consideration for implementation services. Estimates are based on historical experience and on various other market-specific and relevant assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Foreign Currency Translation and Transactions The financial position and results of operations of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net. Foreign exchange transaction losses aggregated $1.1 million, $1.9 million, and $0.8 million in 2023, 2022, and 2021, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality short-term money market instruments and commercial paper with maturities at acquisition of three months or less. Cash and cash equivalents are held by a number of U.S. and non-U.S. commercial banks and money market investment funds. The Company is party to lease agreements that require letters of credit and guarantees to secure the obligations which totaled $0.9 million and $1.1 million at December 31, 2023 and 2022, respectively. Additionally, the Company maintained a cash guarantee with a payroll vendor in the amount of $0.1 million at both December 31, 2023 and 2022. The restricted cash related to the letters of credit and guarantees is recorded in "Restricted cash" on the consolidated balance sheets. Short-Term Investments The Company’s short-term investments are in debt securities which consist of U.S. treasury bills and notes, U.S. government agency notes, corporate notes, and high-quality commercial paper with maturities at acquisition of more than three months and less than twelve months. The Company classifies its investments in debt securities as available-for-sale. In accordance with Accounting Standards Update "ASU" No. 2016-13, credit impairments are recorded through an allowance and are recorded through a charge to the consolidated statement of operations. Unrealized gains or losses not related to credit impairments are recorded in “Accumulated other comprehensive loss” on the consolidated balance sheets. The Company reviews available-for-sale debt securities for impairments related to credit losses and other factors each quarter. In 2023, the Company liquidated its short-term investments, which had a balance of $0 and $2.3 million as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the unrealized gains and losses were not material. Credit Losses Reasonable assurance of collection is a requirement for revenue recognition. Credit limit adjustments for existing customers may result from the periodic review of outstanding accounts receivable. The Company records trade accounts receivable at invoice values, which are generally equal to fair value. In accordance with accounting standards updates ("ASU") No. 2016-13, the Company evaluates its allowance based on expected losses rather than incurred losses, which is known as the current expected credit loss (“CECL”) model. The allowance is determined using the loss rate approach and is measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they are evaluated on an individual basis. The allowance is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Fair Value of Financial Instruments At December 31, 2023 and 2022, the Company's financial instruments were cash and cash equivalents, restricted cash, short-term investments, accounts receivable, accounts payable, and accrued liabilities. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in Accounting Standards Codification "ASC" 820, Fair Value Measurements . The fair values of the financial instruments were not materially different from their carrying amounts at December 31, 2023 and 2022. See Note 10, Fair Value Measurements, for additional detail. Inventories Inventories, consisting principally of hardware and component parts, are stated at the lower of cost or net realizable value. Cost is determined using the first-in-first-out (FIFO) method. The Company writes down inventory when it appears that the carrying cost of the inventory may not be recovered through subsequent sale of the inventory. The Company analyzes the quantity of inventory on hand, the quantity sold in the past year, the anticipated sales volume in the form of sales to new customers as well as sales to previous customers, the expected sales price and the cost of making the sale when evaluating the valuation of inventory. If the sales volume or sales price of a specific model declines significantly, additional write downs may be required. Property and Equipment, net Property and equipment, net, is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets ranging from three Accounting for Leases All of the Company's leases are operating leases. The Company records leases in accordance with ASC Topic 842, Leases. The Company elected the following practical expedients: • The package of practical expedients permitted under the transition guidance within the new standard. The practical expedient package applies to leases commenced prior to adoption of the new standard and permits companies not to reassess whether existing or expired contracts contain a lease, the lease classification, and any initial direct costs for existing leases. • The short-term lease practical expedient, which allowed the Company to exclude short-term leases from recognition in the consolidated balance sheets; • The Company has lease agreements that contain lease and non-lease components. For automobile leases, lease and non-lease components are accounted for together. For office leases, the components are accounted for separately using a relative standalone selling basis; and • The Company applies the portfolio approach to automobile leases with similar characteristics that commence in the same period. The difference between the asset and liability is a result of lease incentives, such as tenant improvement allowances, and deferred rent on the consolidated balance sheet at transition. See Note 12, Leases, for additional information. Goodwill Goodwill represents the excess of purchase price over the fair value of net identifiable assets acquired in a business combination. The Company assesses the impairment of goodwill annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The annual impairment test date is October 1. The Company’s impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The qualitative assessment includes comparing the overall financial performance of the reporting unit against the planned results. Additionally, the reporting unit’s fair value is assessed in light of certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity and reporting unit specific events. The selection and assessment of qualitative factors used to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value involves significant judgments. If it is determined under the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the estimated fair value of the reporting unit is compared with its carrying value. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. As a result of the transformation plan and new reportable operating segments, the Company allocated the goodwill balance to each of its reporting units and respective reportable operating segments on May 17, 2022. Prior to the transformation plan, the Company operated under one reporting unit. See Note 1, Description of the Company and Basis of Presentation, for additional information. No goodwill impairment was recorded during the years ended December 31, 2023, 2022, and 2021. Long-Lived and Intangible Assets Finite-lived intangible assets include proprietary technology, customer relationships, and other intangible assets. Intangible assets other than patents with indefinite lives are amortized over the useful life, generally three five Long-lived assets, including property, plant and equipment, operating lease right-of-use assets, finite-lived intangible assets being amortized and capitalized software costs for internal use, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset group may not be recoverable. An impairment loss shall be recognized if the carrying amount of a long-lived asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived asset group exceeds its fair value. Long-lived assets held for sale are reported at the lower of carrying value or fair value less cost to sell. Equity Method Investment On January 31, 2022, the Company sold its equity interest in Promon AS (Promon) for $18.9 million and recorded the gain on sale of $14.8 million in “Other income (expense), net”, on the consolidated statement of operations for the year ended December 31, 2022. Promon is a technology company headquartered in Norway that specializes in mobile app security, whose solutions focus largely on Runtime Application Self-Protection (RASP). Prior to January 31, 2022, the Company held a 17% interest in Promon and applied the equity method of accounting to its investment in Promon because it exercised significant influence on, but did not hold a controlling interest in, the investee. Under the equity method of accounting, the Company’s proportionate share of the net earnings (losses) of Promon was reported in “Other income (expense), net”, on the consolidated statements of operations. The impact of the proportionate share of net earnings (losses) was immaterial for the years ended December 31, 2022 and 2021, as were the relative size of Promon’s assets and operations in relation to the Company’s. The Company intends to continue to purchase and integrate Promon’s RASP technology into its customer software solutions. Share Repurchase Program On May 12, 2022, the Board of Directors adopted a stock repurchase program (the "2022 stock repurchase program") under which the Company is authorized to repurchase up to $50.0 million of its issued and outstanding common stock. Share purchases under the program will take place in open market transactions, privately negotiated transactions or tender offers, and may be made from time to time depending on market conditions, share price, trading volume, and other factors. The timing of the repurchases and the amount of stock repurchased in each transaction is subject to OneSpan’s sole discretion and will depend upon market and business conditions, applicable legal and credit requirements and other corporate considerations. The authorization is effective until May 11, 2024 unless the total amount has been used or authorization has been cancelled. In December 2023, the Company repurchased 2,380,834 shares of its issued and outstanding common stock pursuant to a modified “Dutch auction” tender offer conducted under the 2022 stock repurchase program (the "Tender Offer"). The purchase price paid for these shares was $10.50, or an aggregate cost of approximately $25.0 million, excluding fees and expenses related to the Tender Offer. During the year ended December 31, 2023, the Company repurchased 2.7 million shares of the Company’s stock for $29.2 million in the aggregate, both in open market transactions and pursuant to the Tender Offer, at an average cost of $10.62 per share under its repurchase program. As of December 31, 2023, approximately $15.8 million remained available for potential future repurchases under the repurchase program. Revenue Recognition The Company records revenue in accordance with ASC Topic 606 "Revenue from Contracts with Customers". We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services, which excludes any sales incentives and amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight before control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in "Cost of goods sold". Nature of Goods and Services The Company derives our revenues primarily from product and license revenue, which includes hardware products and on-premises subscription revenue, and services and other, which is inclusive of cloud subscription revenue, maintenance and support, and professional services. Subscription : Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. Cloud subscription revenues are generated from the Company's Digital Agreements and Security Solutions service offerings. Standard customer arrangements do not provide the customer with the right to take possession of the software supporting the cloud-based application service at any time. As such, these arrangements are considered service contracts and revenue is recognized ratably over the service period of the contract. Customer payments are normally in advance for annual service. Revenue from the sale of on-premises subscription revenue is recorded upon delivery which is the latter of when the customer receives the ability to access the software or when they are legally allowed to use the software. No significant obligations or contingencies exist with regard to delivery, customer acceptance or rights of return at the time revenue is recognized. The Company offers term licenses for on-premises subscription revenue ranging from one to five years in length. For term licenses, payments are either on installment or in advance. In limited circumstances, the Company integrates third-party software solutions into our software products. The Company has determined that, consistent with its conclusion under prior revenue recognition rules, generally the Company acts as the principal with respect to the satisfaction of the related performance obligation and records the corresponding revenue on a gross basis from these transactions. For transactions in which the Company does not act as the principal, the Company recognizes revenue on a net basis. The fees owed to the third parties are recognized as a component of cost of goods sold when the revenue is recognized. Maintenance and support : Maintenance and support agreements generally call for the Company to provide software updates and technical support, respectively, to customers. The annual fee for maintenance and technical support is recognized ratably over the term of the maintenance and support agreement as this is the period the services are delivered. Customer payments are normally in advance for annual service. Professional Services and other Revenue : Professional services revenues are primarily comprised of implementing, automating and extending business processes, technology infrastructure, and software applications. Professional services revenues are recognized over time as services are rendered, usually over a period of time that is generally less than a few months. Most projects are performed on a time and materials basis while a portion of revenues is derived from projects performed on a fixed fee. For time and material contracts, revenues are generally recognized and invoiced by multiplying the number of hours expended in the performance of the contract by the contractual hourly rates. For fixed fee contracts, revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours to complete the services. Customer payments normally correspond with delivery. Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Perpetual licenses grant the customer unlimited access to the software. Hardware products : Revenue from the sale of security hardware is recorded upon shipment, which is the point at which control of the goods are transferred and the performance obligations are completed, unless there are specific terms that would suggest control is transferred at a later date (e.g. delivery). No significant obligations or contingencies typically exist with regard to delivery, customer acceptance or rights of return at the time revenue is recognized. Customer invoices and subsequent payments normally correspond with delivery. The Company also enters into separate service agreements with certain hardware customers to perform distribution services. In these situations, revenue is recognized prior to physical delivery of a good (i.e. “bill-and-hold arrangements). The Company evaluates bill-and-hold arrangement, and records revenue accordingly when the following criteria is met: • The reason for the bill-and-hold arrangement is substantive; • The product is identified separately as belonging to the customer; • The product currently is ready for physical transfer to the customer; • The Company does not have the ability to use the product or to direct it to another customer. Multiple-Element Arrangements In the Company's typical multiple-element arrangement, the primary deliverables include: 1. A client component (i.e. an item that is used by the person being authenticated in the form of either a new standalone hardware device or software that is downloaded onto a device that the customer already owns); 2. Server system software that is installed on the customer’s systems (i.e. software on the server system that verifies the identity of the person being authenticated) or licenses for additional users on the server system software if the server system software had been installed previously; and 3. Post contract support (PCS) in the form of maintenance on the server system software or support. The Company's multiple-element arrangements may also include other items that are usually delivered prior to the recognition of any revenue and are incidental to the overall transaction such as initialization of the hardware device, customization of the hardware device itself or the packaging in which it is delivered, deployment services where the Company delivers the device to its customer’s end-use customer or employee and, in some limited cases, professional services to assist with the initial implementation of a new customer. Significant Judgments The Company enters into contracts to deliver a combination of hardware devices, software licenses, subscriptions, maintenance and support and, in some situations, professional services. The Company evaluates the nature of the goods or services promised in these arrangements to identify the distinct performance obligations. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment depending on the terms and conditions of the respective customer arrangement. When a hardware client device and licenses to server software are sold in a contract, they are treated as a single performance obligation because the software license is deemed to be a component of the hardware that is integral to the functionality of the hardware that is used by customers for identity authentication. When a software client device is sold in a contract server software, the licenses are considered a single performance obligation to deliver the authentication solution to the customer. In either of these types of arrangements, maintenance and support and professional services are typically distinct separate performance obligations from the hardware or software solutions. Contracts to deliver subscription services typically do not include multiple performance obligations; however, in certain limited cases customers may purchase professional services that are distinct performance obligations. For contracts that contain multiple performance obligations, the transaction price is allocated to the separate performance obligations based on their estimated relative standalone selling price. Judgment is required to determine the stand-alone selling price (“SSP”) of each distinct performance obligation. We determine SSP for maintenance and support and professional services based on observable inputs; specifically, the range of prices charged to customers to renew annual maintenance and support contracts and the range of hourly rates we charge customers in standalone professional services contracts. In instances where SSP is not directly observable, and when we sell at a highly variable price range, such as for transactions involving cloud and on-premise subscription-based licenses or hardware, we determine the SSP for those performance obligations using the residual approach. Cost of Goods Sold Cost of goods sold related to product and license include direct product costs and direct costs, including personnel costs, production costs, and freight costs. Cost of goods sold related to service and other revenues are primarily costs related to cloud subscription solutions, including personnel, equipment costs, and capitalized software costs and internal professional services and maintenance support. Research and Development Costs As part of the 2022 strategic plan, the Company began investing in its Digital Agreements operating segment for accelerated growth. In conjunction with expanded research and development activities to grow the Company’s transaction-cloud platform and Digital Agreements product offerings, the Company began capitalizing certain costs incurred in connection with obtaining or developing internal-use software during the year ended December 31, 2022. These costs include payroll and payroll-related costs for employees who are directly associated with the internal-use software projects, external direct costs of materials and services costs while developing the software. Capitalized software costs are included in “Property and equipment, net” on the consolidated balance sheets and are depreciated using the straight-line method over the estimated life of three years. Capitalization of such costs ceases when the project is substantially complete and ready for its intended purpose. Costs incurred during the preliminary project and post-implementation stages, as well as software maintenance and training costs, are expensed in the period in which they are incurred. Other costs for research and development, principally the design and development of hardware, and the design and development of software prior to the determination of technological feasibility, are expensed as incurred on a project-by-project basis. The Company capitalized $10.1 million and $4.0 million of internal-use software during the years ended December 31, 2023 and 2022, respectively. Stock-Based Compensation The Company has stock-based employee compensation plans, described in Note 15, Stock Compensation Plans . ASC 718, Stock Compensation, requires the Company to estimate the fair value of restricted stock granted to employees, directors and others to record compensation expense equal to the estimated fair value. Compensation expense is recorded on a straight-line basis over the vesting period for time-based awards and performance and market-based awards with cliff vesting provisions and on a graded basis for performance and market-based awards with graded vesting provisions. Forfeitures are recorded as incurred. Retirement Benefits The Company records annual expenses relating to defined benefit pension plans based on calculations which include various actuarial assumptions, including discount rates, assumed asset rates of return, compensation increases, and turnover rates. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. The effects of gains, losses, and prior service costs and credits are amortized over the average service life. The funded status, or projected benefit obligation less plan assets, for each plan, is reflected in the consolidated financial statements using a December 31 measurement date. Other Income (Expense), net Other income (expense), net, consists primarily of exchange gains (losses) on transactions that are denominated in currencies other than the Company’s subsidiaries’ functional currencies, subsidies received from foreign governments in support of the Company's research and development in those countries and other miscellaneous non-operational income and expenses. Income Taxes The Company calculates and provides for income taxes in each tax jurisdiction in which it operates. The provision for income taxes includes the amounts payable or refundable for the current year, the effect of deferred taxes and impacts from uncertain tax positions. The Company’s provision for income taxes is significantly affected by shifts in the geographic mix of its pre-tax earnings across tax jurisdictions, changes in tax laws and regulations, and tax planning opportunities available in each tax jurisdiction. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement and tax bases of the Company's assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those differences are expected to be recovered or settled. Valuation allowances are established for deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes the effect of a change in tax rates on deferred tax assets and liabilities and in income in the period that includes the enactment date. The Company recognizes tax benefits for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company's income tax returns that do not meet these recognition and measurement standards. Assumptions, judgments, and the use of estimates are required in determining whether the “more-likely-than-not” standard has been met when developing the provision for income taxes. The Company recognizes the tax impact of including certain foreign earnings in U.S. taxable income as a period cost. The Company has recognized deferred income taxes for local country income and withholding taxes that could be incurred on distributions of non-U.S. earnings because management does not plan to indefinitely reinvest such earnings. The Company monitors for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures. Public business entities are required to adopt for annual fiscal periods beginning after December 31, 2024 and early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and related disclosures. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. • Digital Agreements. Digital Agreements consists of solutions that enable our clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are largely cloud-based, include OneSpan Sign e-signature, OneSpan Notary and OneSpan Trust Vault. This segment also includes costs attributable to our transaction cloud platform. • Security Solutions. Security Solutions consists of our broad portfolio of software products, software development kits (SDKs) and Digipass authenticator devices that are used to build applications designed to defend against attacks on digital transactions across online environments, devices, and applications. The software products and SDKs included in the Security Solutions segment are largely on-premises software products and include identity verification, multi-factor authentication and transaction signing solutions, such as mobile application security and mobile software tokens. Segment operating income consists of the revenues generated by a segment, less the direct costs of revenue, sales and marketing, research and development expenses, amortization expense, and restructuring and other related charges that are incurred directly by a segment. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Prior to 2023, the Company allocated certain cost of goods sold and operating expenses to its two reportable operating segments using a direct cost allocation and an allocation based on revenue split between the segments. As a result of the ongoing strategic transformation, the Company refined its operating segment allocation methodology to better align internal and external costs more directly to where the employee efforts are being spent on each segment moving forward. The revised methodology was applied on a prospective basis beginning in 2023. As a result of this change, there was an increase in cost of goods sold and operating expenses being allocated to the Digital Agreements segment, which better aligns with the investments the Company is making to grow that segment as compared to its Security Solutions segment. The tables below set forth information about the Company’s operating segments for the years ended December 31, 2023, 2022, and 2021, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Years Ended December 31, (In thousands, except percentages) 2023 2022 2021 Digital Agreements Revenue $ 50,925 $ 48,401 $ 40,551 Gross profit $ 37,742 $ 37,488 $ 29,557 Gross margin 74 % 77 % 73 % Operating (loss) income (1) $ (18,525) $ 5,348 $ (1,612) Security Solutions Revenue $ 184,181 $ 170,605 $ 173,930 Gross profit $ 119,974 $ 111,082 $ 113,378 Gross margin 65 % 65 % 65 % Operating income (2) $ 60,190 $ 32,051 $ 35,395 Total Company: Revenue $ 235,106 $ 219,006 $ 214,481 Gross profit $ 157,715 $ 148,570 $ 142,935 Gross margin 67 % 68 % 67 % Statements of operations reconciliation: Segment operating income $ 41,665 $ 37,399 $ 33,783 Corporate operating expenses not allocated at the segment level 70,536 64,514 59,911 Operating loss $ (28,871) $ (27,115) $ (26,128) Interest income, net 2,090 595 (1) Other income (expense), net (532) 14,827 (14) Loss before income taxes $ (27,313) $ (11,693) $ (26,143) (1) Digital Agreements operating income includ es $2.3 million, $2.3 million, and $2.5 million of amortization of intangible assets expense for the years ended December 31, 2023, 2022, and 2021, respectively. (2) Security Solutions operating income includes $0, $1.8 million, and $3.3 million of amortization of intangible assets expense for the years ended December 31, 2023, 2022, and 2021, respectively. The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company's two operating segments for the years ended December 31, 2023, 2022, and 2021. Years Ended December 31, 2023 2022 2021 (In thousands) Digital Agreements Security Solutions Digital Agreements Security Solutions Digital Agreements Security Solutions Subscription (1) $ 45,886 $ 60,550 $ 42,029 $ 47,124 $ 33,283 $ 35,224 Maintenance and support 4,143 42,240 5,451 42,894 5,709 45,567 Professional services and other (2) 896 5,425 921 7,087 1,494 13,703 Hardware products — 75,966 — 73,500 65 79,436 Total Revenue $ 50,925 $ 184,181 $ 48,401 $ 170,605 $ 40,551 $ 173,930 (1) Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. (2) Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Goodwill and Other . Asset information by segment is not reported to or reviewed by the CODM to allocate resources, and therefore, the Company has not disclosed asset information for the segments. The Company classifies sales by customers’ locations in three geographic regions: 1) EMEA, which includes Europe, the Middle East, and Africa; 2) the Americas, which includes sales in North, Central, and South America and Canada; and 3) Asia Pacific, which also includes Australia and New Zealand. (In thousands) Europe, Americas Asia Pacific Total 2023 Revenue $ 111,568 $ 80,057 $ 43,481 $ 235,106 Gross profit $ 74,843 $ 53,704 $ 29,168 $ 157,715 Long-lived assets $ 5,783 $ 18,795 $ 315 $ 24,893 2022 Revenue $ 100,298 $ 77,740 $ 40,968 $ 219,006 Gross profit $ 68,040 $ 52,738 $ 27,792 $ 148,570 Long-lived assets $ 4,856 $ 15,270 $ 577 $ 20,703 2021 Revenue $ 104,878 $ 68,646 $ 40,957 $ 214,481 Gross profit $ 69,893 $ 45,747 $ 27,295 $ 142,935 Long-lived assets $ 5,978 $ 13,634 $ 342 $ 19,954 For the years 2023, 2022, and 2021, the top 10 customers contributed 22%, 23% and 22%, respectively, of total worldwide revenue. All of the Company's hardware products are assembled by four independent factories in China and one independent factory in Romania. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenues The following tables present the Company's revenues disaggregated by major products and services, geographical region and timing of revenue recognition. Revenue by major products and services Years Ended December 31, (In thousands) 2023 2022 2021 Subscription (1) $ 106,436 $ 89,153 $ 68,507 Maintenance and support 46,383 48,345 51,276 Professional services and other (2) 6,321 8,008 15,197 Hardware products 75,966 73,500 79,501 Total Revenue $ 235,106 $ 219,006 $ 214,481 (1) Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. (2) Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Revenue by location of customer for the years ended December 31, 2023, 2022, and 2021 Years Ended December 31, (In thousands, except percentages) 2023 2022 2021 Revenue EMEA $ 111,568 $ 100,298 $ 104,878 Americas 80,057 77,740 68,646 APAC 43,481 40,968 40,957 Total revenue $ 235,106 $ 219,006 $ 214,481 % of Total Revenue EMEA 47 % 46 % 49 % Americas 34 % 35 % 32 % APAC 19 % 19 % 19 % Timing of revenue recognition Years Ended December 31, (In thousands) 2023 2022 2021 Products and Licenses transferred at a point in time $ 130,848 $ 121,426 $ 120,358 Services transferred over time 104,258 97,580 94,123 Total Revenue $ 235,106 $ 219,006 $ 214,481 Contract balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers as of December 31, 2023 and 2022: (In thousands) December 31, 2023 2022 Receivables, inclusive of trade and unbilled $ 64,387 $ 65,132 Contract Assets (current and non-current) $ 5,322 $ 4,642 Contract Liabilities (Deferred Revenue current and non-current) $ 73,483 $ 70,907 Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs over a 2- to 5-year period. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time. As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component when it is expected, at contract inception, that the period between the Company's transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. Extended payment terms are not typically included in contracts with customers. Revenue recognized during the year ended December 31, 2023 included $62.1 million that was included on the December 31, 2022 consolidated balance sheet in contract liabilities. Deferred revenue increased in the same period due to timing of annual renewals. Transaction price allocated to the remaining performance obligations Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of the period. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2023: (In thousands) 2024 2025 2026 Beyond 2026 Total Future revenue related to current unsatisfied performance obligations $ 49,644 $ 23,894 $ 14,138 $ 4,761 $ 92,437 The Company applies practical expedients and does not disclose information about remaining performance obligations (a) that have original expected durations of one year or less, or (b) where revenue is recognized as invoiced. Costs of obtaining a contract The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of up to seven years, which is the determined benefit period based on the transfer of goods or services. The Company determined the period of benefit by taking into consideration the customer contracts, its technology and other factors, including customer attrition. Commissions are earned upon invoicing to the customer. For contracts with multiple year payment terms, because the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred. Commissions and amortization expense are included in “Sales and marketing” expense in the consolidated statements of operations. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in the “Sales and marketing” caption in the consolidated statements of operations. The following tables provide information related to the capitalized costs and amortization recognized in the current and prior period: December 31, (In thousands) 2023 2022 Capitalized costs to obtain contracts, current $ 3,503 $ 2,929 Capitalized costs to obtain contracts, non-current $ 10,766 $ 10,571 (In thousands) Years Ended December 31, 2023 2022 Amortization of capitalized costs to obtain contracts $ 3,122 $ 2,404 Impairments of capitalized costs to obtain contracts $ — $ — |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net, consisting principally of hardware and component parts, are stated at the lower of cost or net realizable value. Cost is determined using the FIFO method. Inventories, net, are comprised of the following as of December 31, 2023 and 2022: December 31, (In thousands) 2023 2022 Component parts (1) $ 8,511 $ 6,762 Work-in-process and finished goods 7,042 5,292 Total $ 15,553 $ 12,054 (1) In June 2023, the Company discontinued investments in its Digipass CX product (see Note 20, Restructuring and Other Related Charges |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions On February 22, 2023, the Company acquired substantially all of the assets of the ProvenDB business of Southbank Software Pty Ltd. ("ProvenDB") under the terms of an asset purchase agreement. Pursuant to the terms of the asset purchase agreement, the total consideration for the acquisition was $2.0 million, of which $1.8 million was paid in cash at closing. The remaining $0.2 million was held back as security for any indemnity claims made by the Company. If no indemnity claims are made by the Company this amount is required to be paid to the seller 12 months after the acquisition date. The Company paid the full amount of $0.2 million to the seller in February 2024. ProvenDB is a developer of secure storage that leverages blockchain technology in order to prevent data tampering or alteration of documents. The technology acquired in the acquisition is expected to provide a foundational architecture for future blockchain-based digital solutions, including secure storage. As of December 31, 2023, the Company has determined the purchase price allocation of the fair value of the assets acquired and liabilities assumed which is shown in the table below. ProvenDB is allocated entirely to our Digital Agreements reportable operating segment. (In thousands) As of Date of Opening Balance Sheet Net assets acquired: Acquired technology $ 1,447 Accrued wages and payroll taxes (47) Goodwill 600 Total net assets acquired $ 2,000 Consideration $ 2,000 The financial impact of this acquisition was not material to our consolidated financial statements, and therefore, we have not presented pro forma results of operations for the acquisition. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following tables present the changes in goodwill during 2023 and 2022: (In thousands) Digital Agreements Security Solutions Total Net balance at December 31, 2021 $ — $ — $ 96,174 Goodwill reallocation 20,966 75,208 — Net foreign currency translation (1,234) (4,426) (5,660) Net balance at December 31, 2022 19,732 70,782 90,514 Acquisition during the period (1) 600 — 600 Net foreign currency translation 561 2,009 2,570 Net balance at December 31, 2023 $ 20,893 $ 72,791 $ 93,684 (1) Represents goodwill recorded in conjunction with the acquisition of substantially all the assets of the ProvenDB business of Southbank Software Pty Ltd. during the three months ended March 31, 2023. See Note 6 , Business Acquisitions, for additional information. Goodwill reallocation: As a result of the transformation plan and new reportable operating segments, the Company allocated the goodwill balance to each reporting unit and respective reportable operating segments on May 17, 2022 (see Note 1, Description of the Company and Basis of Presentation for additional information). No impairment of goodwill was recorded during the years ended December 31, 2023, 2022, or 2021. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets as of December 31, 2023 and 2022 consist of the following: December 31, 2023 2022 (In thousands) Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Acquired technology 3 to 7 $ 43,869 $ 42,712 $ 42,022 $ 41,894 Customer relationships 5 to 12 34,773 25,960 34,386 23,323 Patents and trademarks 10 to 20 13,103 12,241 13,518 12,227 Total $ 91,745 $ 80,913 $ 89,926 $ 77,444 Amortization expense was $2.8 million, $4.1 million, and $5.9 million for the years ended December 31, 2023, 2022, and 2021, respectively. Amortization expense includes cost of sales amortization expense directly related to delivering cloud subscription revenue of $0.4 million, $0, and $0 for the years ended December 31, 2023, 2022, and 2021, respectively. Costs are recorded in "Cost of goods sold - Services and other" on the consolidated statements of operations. Certain intangible assets are denominated in local currencies and are subject to currency fluctuations. During the year ended December 31, 2022, the Company performed an impairment review of the customer relationships intangible assets obtained in its 2018 acquisition of Dealflo Limited (“Dealflo”). The impairment review was triggered by the Company’s July 2022 notification to customers regarding its intent to gradually sunset its Dealflo solution in the months leading up to December 31, 2023. As a result, substantially all Dealflo solution customer contracts will terminate on or before December 31, 2023. The results of the impairment review indicated that the carrying value of the Dealflo customer relationships exceeded the fair value, and the Company recorded a $3.8 million impairment charge on the entire remaining value of the asset during the year ended December 31, 2022. The charge is included in “Restructuring and other related charges” on the consolidated statements of operations and is included in "Operating income" of the Security Solutions reportable operating segment. There were no additional impairments of intangible assets recorded during the years ended December 31, 2023, 2022, and 2021. The estimated future amortization expense of intangible assets as of December 31, 2023, is as follows: 2024 $ 2,839 2025 2,806 2026 2,398 2027 2,124 2028 50 Thereafter 217 Subject to amortization 10,434 Trademarks 398 Total intangible assets $ 10,832 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The following table presents the major classes of property and equipment, net, as of December 31, 2023 and 2022: December 31, (In thousands) Useful Life (in years) 2023 2022 Office equipment and software 3-5 $ 8,574 $ 14,451 Leasehold improvements 10 7,459 9,927 Furniture and fixtures 5 3,658 4,260 Capitalized software 3 12,560 4,007 Total 32,251 32,645 Accumulated depreciation (13,529) (19,964) Property and equipment, net $ 18,722 $ 12,681 Depreciation expense was $3.7 million, $2.9 million, and $3.0 million for the years ended December 31, 2023, 2022, and 2021, respectively. Depreciation expense includes cost of sales depreciation expense directly related to delivering cloud subscription revenue of $1.1 million, $0, and $0 for the years ended December 31, 2023, 2022, and 2021, respectively. Costs are recorded in "Cost of goods sold - Services and other" on the consolidated statements of operations. In conjunction with the Company's Chicago office lease abandonment (see Note 20, Restructuring and Other Related Charges) , write-offs of $0.6 million for leasehold improvements and $0.1 million for office equipment and software were recorded in "Restructuring and other related charges" on the consolidated statements of operations during the three months ended June 30, 2023. Due to the Company's Brussels office lease termination (see Note 20, Restructuring and Other Related Charges) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of cash equivalents, accounts receivables, and accounts payable approximate their carrying amounts due to their short duration. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing base upon its own market assumptions. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in ASC 820, Fair Value Measurements . The fair value hierarchy consists of the following three levels: • Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived primarily from or corroborated by observable market data. • Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following tables summarize the Company’s financial assets by level in the fair value hierarchy, which are measured at fair value on a recurring basis, as of December 31, 2023 and 2022: Fair Value Measurement at Reporting Date Using (In thousands) December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money Market Funds $ 8,496 $ 8,496 $ — $ — Fair Value Measurement at Reporting Date Using (In thousands) December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Corporate Notes / Bonds $ 2,328 $ — $ 2,328 $ — Commercial Paper $ 6,743 $ — $ 6,743 $ — Money Market Funds $ 48,623 $ 48,623 $ — $ — The Company classifies its investments in debt securities as available-for-sale. The Company reviews available-for-sale debt securities for impairments related to losses and other factors each quarter. The unrealized gains and losses on the available-for-sale debt securities were not material as of December 31, 2023 and 2022. The Company did not have any financial liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and 2022. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The change in the allowance for credit losses during the years ended December 31, 2022 and 2023 were as follows: (In thousands) Balance at December 31, 2021 $ 1,419 Provision 517 Write-offs (334) Net foreign currency translation (2) Balance at December 31, 2022 1,600 Provision 286 Write-offs (350) Net foreign currency translation — Balance at December 31, 2023 $ 1,536 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain real estate and automobiles. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. All of the Company's leases are operating leases. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. The majority of the Company’s leases do not provide an implicit rate of return. The Company uses its imputed collateralized rate based on the information available at the commencement date in determining the present value of lease payments. Operating lease ROU assets are comprised of the lease liability plus prepaid rents and are reduced by lease incentives or deferred rents. The Company has lease agreements with non-lease components which are not bifurcated. Some of the Company's leases include options to renew, with renewal terms that can extend the lease from one Operating lease cost details for the years ended December 31, 2023, 2022, and 2021 are as follows: Years Ended December 31, (In thousands) 2023 2022 2021 Building rent $ 1,638 $ 2,117 $ 2,564 Automobile rentals 1,132 1,180 1,505 Total net operating lease costs $ 2,770 $ 3,297 $ 4,069 Short-term lease costs and variable lease costs recognized during the years ended December 31, 2023, 2022, and 2021 are immaterial. Supplemental consolidated balance sheet information related to operating leases as of December 31, 2023 and 2022 is as follows: December 31, (In thousands) 2023 2022 Leases Assets $ 6,171 $ 8,022 Operating lease right-of-use assets $ 6,171 $ 8,022 Liabilities Current Operating lease liabilities $ 2,027 $ 2,258 Non-current Operating lease liabilities 6,110 8,442 Accrued early lease termination fees 714 — Total lease liabilities $ 8,851 $ 10,700 The weighted average remaining lease term for operating leases is 5.3 years. The weighted-average discount rate for operating leases is 5%. Supplemental consolidated cash flow information related to leases is as follows: Years Ended December 31, (In thousands) 2023 2022 2021 Supplemental cash flow and other information related to leases: Operating cash payments from operating leases $ 2,836 $ 3,346 $ 3,630 ROU assets obtained in exchange for new operating lease liabilities $ 2,650 $ 1,172 $ 589 As part of its multiyear restructuring plan (see Note 20, Restructuring and Other Related Charges ), the Company vacated its Chicago office space and abandoned the underlying leases during June 2023. The Company accrued a $1.4 million early lease termination fee, which is reflected in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. Of the early lease termination fee, $0.7 million is outstanding and is reflected in the non-current lease liability balance on the consolidated balance sheet. The underlying lease right-of-use asset and lease liability for the Chicago leased office space were written off, and a $0.3 million gain related to rent concessions and tenant improvement allowances was recorded in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. In September 2023, the Company vacated its Brussels office and terminated the lease as of September 30, 2023. The Company accrued a $0.3 million early lease termination fee, which is reflected in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. The underlying lease right-of-use asset and lease liability for the Brussels leased office space were written off, and a $0.1 million loss related to rent concessions and tenant improvement allowances was recorded in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. In October 2023, the Company signed a lease agreement to lease new office space in Brussels. The lease agreement consisted of a nine year lease that is expected to commence in 2024. The Company will record a right of use asset and liability at the commencement date, which is expected to result in total lease term payments of $1.3 million. Maturities of the Company's operating leases as of December 31, 2023 are as follows: (In thousands) 2024 $ 2,378 2025 1,608 2026 1,515 2027 1,327 2028 1,218 Later years 1,369 Less imputed interest (1,278) Accrued lease termination fees 714 Total lease liabilities $ 8,851 |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) The quarterly results of operations are summarized in the following select income statement line items (in thousands, except per share data): First Second Third Fourth 2023 Total revenues $ 57,607 $ 55,733 $ 58,838 $ 62,928 Gross profit $ 39,286 $ 34,294 $ 40,669 $ 43,466 Operating costs $ 47,416 $ 52,058 $ 45,463 $ 41,649 Operating income (loss) $ (8,130) $ (17,764) $ (4,794) $ 1,817 Provision (benefit) for income taxes $ 689 $ 601 $ 279 $ 917 Net income (loss) $ (8,356) $ (17,751) $ (4,133) $ 441 Net income/(loss) per share: Basic $ (0.21) $ (0.44) $ (0.10) $ 0.01 Diluted $ (0.21) $ (0.44) $ (0.10) $ 0.01 2022 Total revenues $ 52,447 $ 52,790 $ 57,147 $ 56,622 Gross profit $ 36,678 $ 35,506 $ 38,431 $ 37,955 Operating costs $ 45,921 $ 43,744 $ 44,056 $ 41,964 Operating income (loss) $ (9,243) $ (8,238) $ (5,625) $ (4,009) Provision (benefit) for income taxes $ 1,173 $ 472 $ 600 $ 496 Net income (loss) $ 5,214 $ (9,350) $ (7,201) $ (3,097) Net income/(loss) per share: Basic $ 0.13 $ (0.23) $ (0.18) $ (0.08) Diluted $ 0.13 $ (0.23) $ (0.18) $ (0.08) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes was generated in the following jurisdictions: Years Ended December 31, (In thousands) 2023 2022 2021 U.S. $ (13,526) $ (9,569) $ (15,056) Non-U.S. (13,787) (2,124) (11,087) Total $ (27,313) $ (11,693) $ (26,143) For the years ended December 31, 2023, 2022, and 2021, domestic income excludes intercompany dividend income of $0 each year. The provision (benefit) for income taxes consists of the following: Years Ended December 31, (In thousands) 2023 2022 2021 Current: Federal $ 2 $ 122 $ (11) State 54 32 (23) Foreign 2,473 1,665 2,478 Total current 2,529 1,819 2,444 Deferred: Federal 361 (349) 3,774 State (47) 35 (3) Foreign (357) 1,236 (1,774) Total deferred (43) 922 1,997 Total $ 2,486 $ 2,741 $ 4,441 For 2023, 2022, and 2021, the Company's U.S. federal statutory rate was 21%. The differences between the income tax provisions computed using the statutory federal income tax rate and the provisions for income taxes reported in the consolidated statements of operations are as follows: Years Ended December 31, (In thousands) 2023 2022 2021 Expected tax at statutory rate $ (5,736) $ (2,456) $ (5,490) Foreign taxes at other rates (213) 3,373 307 Valuation allowance changes 8,513 4,370 15,019 Global intangible low-taxed income inclusion — — — State income taxes, net of federal benefit (170) (322) (811) Uncertain tax positions — (515) 12 Research credits (633) (2,568) (3,466) Disallowed expenses and other 725 859 (1,130) Total $ 2,486 $ 2,741 $ 4,441 Significant components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022, are as follows: December 31, (In thousands) 2023 2022 Deferred tax assets: Stock and long-term compensation plans $ 1,515 $ 923 Foreign NOL & other carryforwards 45,390 41,154 U.S. and state NOL carryforwards 7,866 5,654 Deferred revenue 650 863 Pension liability 531 498 Amortization and depreciation 1,626 526 Lease liability 2,383 2,641 Capitalized research and development 446 487 Accrued expenses and other 948 1,427 Total gross deferred tax assets 61,355 54,173 Less: Valuation allowance (47,844) (39,177) Net deferred income tax assets $ 13,511 $ 14,996 Deferred tax liabilities: Accruals $ 367 $ 319 Tax on unremitted foreign earnings 1,164 1,249 Right of use asset 2,095 2,531 Intangible assets 2,217 3,009 Tax on credits 3,689 3,736 Contract acquisition costs 3,325 3,448 Deferred tax liabilities $ 12,857 $ 14,292 Net deferred tax assets $ 654 $ 704 Deferred tax assets and liabilities are netted by tax jurisdiction. At December 31, 2023, the Company had foreign and state net operating loss (NOL) carryforwards and other foreign deductible carryforwards as shown in the following table: (In thousands) Carryforward Expiration NOL Carryforward Canada $ 44,461 2032-2043 United States 27,512 None United Kingdom 10,543 None Switzerland 20,127 2028-2029 Other foreign 5,779 None Canada province 43,352 2032-2043 U.S. states 30,526 2025-2043 $ 182,300 Other Carryforwards United States credit $ 1,277 2031-2033 Canada 44,357 None Canada province 58,488 None Capital loss 382 None Canada credits 8,819 2033-2043 Canada province credits 3,677 2036-2043 $ 117,000 $ 299,300 The valuation allowance against the net deferred tax assets as of December 31, 2023 and 2022 was $47.8 million and $39.2 million, respectively. The Company recorded changes in valuation allowance of $8.5 million and $4.4 million, during the years ended December 31, 2023 and 2022, respectively, against deferred tax assets that, based on the Company's assessment are considered not to be more likely than not to be realized. The increase in the valuation allowance in 2023 reflects Net Operating Losses (“NOLs”), other deduction carryforwards, and credits for which the realization is not more likely than not. The change in valuation allowance also reflects other factors including, but not limited to, changes in the Company's assessment of the ability to use existing deferred tax assets, including NOLs and other deduction carryforwards. The Company assesses the need for a valuation allowance on a regular basis, weighing all positive and negative evidence to determine whether a deferred tax asset will be fully or partially realized. In evaluating the realizability of deferred tax assets, significant pieces of negative evidence such as 3-year cumulative losses are considered. The Company also reviewed reversal patterns of temporary differences to determine if the Company would have sufficient taxable income due to the reversal of temporary differences to support the realization of deferred tax assets. In 2022, the Company established a valuation allowance against certain deferred tax assets in jurisdictions that were not previously valued as the deferred tax assets were no longer more likely than not to be realized. In 2023, the Company continued to maintain a valuation allowance against certain deferred tax assets in jurisdictions where assets are not more likely than not to be realized. For all other remaining deferred tax assets, the Company believes it is still more likely than not that the results of future operations or tax planning strategies will generate sufficient taxable income to realize the deferred tax assets. The Company's policy is to record interest and penalties on income taxes as income tax expense. It recorded expense of less than $0.1 million in 2023, 2022, and 2021. ASC 740, Income Taxes sets a “more-likely-than-not” criterion for recognizing the tax benefit of uncertain tax positions. As of December 31, 2023, 2022, and 2021, the Company had reserves of $0, $0, and $0.5 million, respectively. December 31, (In thousands) 2023 2022 2021 Reserve at beginning of year $ — $ 512 $ 500 Increases related to prior year tax positions — — 12 Decreases related to prior year tax positions — (512) — Settlement — — — Total $ — $ — $ 512 The Company files income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions, and is subject to examination of its income tax returns by the IRS and other tax authorities. The Company reduced an uncertain tax position in the U.S. upon filing of an accounting method change and receiving audit protection. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with the Company's expectations, there could be a requirement to adjust the provision for income taxes in the period such resolution occurs. Included in the balance of unrecognized tax benefits as of December 31, 2023 is $0 of tax benefits that, if recognized, would affect the effective tax rate. The Company's primary tax jurisdictions and the earliest tax year subject to audit are presented in the following table. Australia 2015 Austria 2017 Belgium 2019 Canada 2019 Netherlands 2018 Singapore 2018 Switzerland 2019 United Kingdom 2021 United States 2017 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans The Company has a share-based compensation plan, the OneSpan Inc. 2019 Omnibus Incentive Plan (“Plan”), under which the Board of Directors may grant share-based awards including restricted stock units (RSUs) and performance restricted stock units (PSUs). The Plan may provide performance incentives to employees and non-employee directors, consultants and other key persons of the Company. The plan is administered by the Compensation Committee as appointed by the Board of Directors and is intended to be a non-qualified plan. As of December 31, 2023, the remaining number of shares allowed to be issued under the Plan was 0.5 million shares of the Company’s common stock, representing 1% of the issued and outstanding shares of the Company as of such date. The following table presents stock-based compensation expense and other long-term incentive plan compensation expense for the years ended December 31, 2023, 2022, and 2021. Years Ended December 31, (In thousands) 2023 2022 2021 Stock-based compensation $ 14,252 $ 8,642 $ 4,354 Other long-term incentive plan compensation (1) 310 171 848 Total compensation $ 14,562 $ 8,813 $ 5,202 (1) Other long-term incentive compensation consists of cash incentive grants awarded to employees located in jurisdictions where the Company does not issue stock-based compensation due to tax, regulatory or similar reasons. Time-Based Restricted Stock Awards Non-forfeited time-based restricted stock awards granted to certain executive officers and other employees under the VASCO Data Security International, Inc. 2009 Equity Plan became fully vested during the year ended December 31, 2022. Certain shares became subject to forfeiture when the service requirement was not met. No awards were outstanding as of December 31, 2022 and, therefore, there was no compensation expense, no tax benefit or any time-based restricted stock activity for the year ended December 31, 2023. Compensation expense was less than $0.1 million and $0.3 million for 2022 and 2021, respectively. Tax benefit related to the compensation expense was less than $0.1 million and $0.1 million for 2022 and 2021, respectively. There was no unamortized future compensation expense for time-based restricted stock awards at December 31, 2023. Time-Based Restricted Stock Units Under the OneSpan Inc. 2019 Omnibus Incentive Plan, the Company grants non-employee directors and certain eligible employees RSUs that settle in Company stock. RSUs granted to non-employee directors vest on the first anniversary date of the grant and have a deferred delivery feature whereby they are not delivered until resignation or upon a change in control of the Company. RSUs granted to employees vest over one (Sharecounts in thousands) Shares Weighted- Weighted- Unearned, January 1, 2023 1,733 2.41 $ 13.08 Shares vested (641) 13.49 Shares awarded 1,097 13.14 Shares forfeited (376) 13.04 Unearned, December 31, 2023 1,813 1.85 $ 12.98 The unamortized future compensation expense for time-based restricted stock awards was $18.1 million at December 31, 2023. Performance-Based Restricted Stock Units settled in stock Performance-based restricted stock units granted to executive officers and certain other employees were subject to achievement of one one Compensation Committee of the OneSpan Inc. Board of Directors ("Compensation Committee") and vest upon completion of the requisite service period. Shares are subject to forfeiture if the performance criteria and the service period are not met. The restricted stock units subject to achievement of future performance criteria awarded during the year ended December 31, 2023 will be earned if the performance criteria are met at the end of the one-year performance period and then subsequent service period is also met. Compensation expense related to performance-based restricted stock unit awards in 2023, 2022, and 2021 was $2.8 million, $1.6 million, and $0.3 million, respectively. Tax benefit related to the compensation expense was less than $0.1 million, less than $0.1 million, and $0.1 million for 2023, 2022, and 2021, respectively. The following table summarizes activity related to unvested performance restricted stock shares during 2023: (Sharecounts in thousands) Total Weighted- Weighted- Unearned, January 1, 2023 316 1.38 $ 12.96 Shares vested (95) 13.09 Shares awarded 1,003 14.25 Shares forfeited (258) 14.09 Unearned, December 31, 2023 966 0.84 $ 13.99 Unamortized future compensation expense for performance-based restricted stock was $1.7 million at December 31, 2023. Market-Based Restricted Stock Units settled in stock Market-based restricted stock units granted to executive officers and certain other employees were subject to achievement of three-year or four-year market-based performance criteria established by the Board of Directors. Under certain grants, shares related to three-year or four-year targets are earned based upon fulfillment of the market-based performance criteria as determined by the Compensation Committee and cliff vest upon completion of the three-year or four-year period. Shares are subject to forfeiture if the performance criteria and service period are not met. Compensation expense for market-based restricted stock unit awards in 2023, 2022, and 2021 was $0.6 million, $0.5 million, and less than $0.1 million, respectively, and the related tax benefit was less than $0.1 million, less than $0.1 million, and $0 million respectively. The following table summarizes activity related to unvested market and service restricted stock units settled in stock: (Sharecounts in thousands) Shares Weighted- Weighted- Unearned, January 1, 2023 257 2.75 $ 12.17 Shares vested (1) 33.31 Shares awarded — — Shares forfeited (5) 37.93 Unearned, December 31, 2023 251 1.89 $ 11.58 Unamortized future compensation expense for market-based restricted stock was $1.4 million at December 31, 2023. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is based on the weighted average number of shares outstanding and excludes the dilutive effect of common stock equivalents. Diluted earnings per share is based on the weighted average number of shares outstanding and includes the dilutive effect of common stock equivalents to the extent they are not anti-dilutive. Because the Company is in a net loss position for the years ended December 31, 2023, 2022 and 2021, diluted net loss per share for these periods exclude the effects of all common stock equivalents, which are anti-dilutive. A reconciliation of the shares included in the basic and fully diluted earnings per share calculations is as follows: Years Ended December 31, (In thousands, except per share data) 2023 2022 2021 Net loss $ (29,799) $ (14,434) $ (30,584) Weighted average common shares outstanding: Basic 40,193 40,143 39,614 Incremental shares with dilutive effect: Restricted stock awards — — — Diluted 40,193 40,143 39,614 Net loss per share: Basic $ (0.74) $ (0.36) $ (0.77) Diluted $ (0.74) $ (0.36) $ (0.77) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans U.S. Plan The Company maintains a defined contribution pension plan for U.S. employees established pursuant to Section 401(k) of the Internal Revenue Code. The plan allows voluntary employee contributions and discretionary employer contributions. For the years ended December 31, 2023, 2022, and 2021, the Company expensed contributions of $0.6 million, $0.5 million, and $0.2 million, respectively. Non-U.S. Plans The Company is subject to national mandatory pension systems and other compulsory plans, or makes contributions to social pension funds based on local regulations. When the Company's obligation is limited to the payment of the contribution into these plans or funds, the recognition of such liabilities is not required. In addition, the Company has, in some countries, defined benefit plans consisting of final retirement salary and committed pension payments. In Switzerland, the pension plan is a cash balance plan where contributions are expressed as a percentage of the pensionable salary. Contributions to Swiss plans are paid by the employees and the employer. The pension plan guarantees the amount accrued on the members’ savings accounts, as well as a minimum interest on those savings accounts. The plan assets are held in guaranteed investment contracts. The Company also maintains a pension plan for Belgian employees, in compliance with Belgian law. Contributions to Belgium plans are paid by the employees and the employer. Certain features of the plans require them to be categorized as defined benefit plans under ASC 715 due to Belgian social legislation, which prescribes a minimum annual return of 1.8% on employer contributions and 1.8% for employee contributions. The plan assets are held in guaranteed investment contracts. The Company also includes a liability related to obligations to provide retirement benefits to employees who retire from the Company’s French subsidiary, as required by law. Per French regulations, each employee is entitled to a lump sum payment upon retirement based on years of service and salary at retirement. Benefit rights vest upon the statutory retirement age of 62. The obligation recorded represents the present value of amounts the Company expects to pay. Components of net periodic pension cost included in earnings: Years Ended December 31, (In thousands) 2023 2022 2021 Service cost (gross) $ 879 $ 1,107 $ 1,587 Interest cost 560 138 53 Expected return on plan assets (358) (288) (302) Amortization of unrecognized actuarial gain (265) (90) (12) Net periodic pension cost $ 816 $ 867 $ 1,326 The net unfunded status of the Non-U.S. pension plans as of December 31, 2023 and 2022, is as follows: December 31, (In thousands) 2023 2022 Fair value of plan assets $ 16,460 $ 15,415 Projected benefit obligation (19,014) (17,715) Net unfunded benefit obligation $ (2,554) $ (2,300) Net unfunded benefit obligation is recorded as other long-term liabilities in the consolidated balance sheets. The change in the fair value of plan assets is as follows: Years Ended December 31, (In thousands) 2023 2022 Fair value of plan assets at January 1 $ 15,415 $ 17,394 Employee contributions 406 437 Actual return on plan assets 461 (288) Benefits (paid), net of transfers (1,487) (2,361) Employer contributions 864 911 Foreign exchange adjustment 801 (678) Fair value of plan assets at December 31 $ 16,460 $ 15,415 The change in benefit obligations is as follows: Years Ended December 31, (In thousands) 2023 2022 Benefit obligations at January 1 $ 17,715 $ 24,855 Gross service cost 879 1,107 Interest cost 560 138 Employee contributions 406 437 Actuarial (gains)/losses 313 (4,676) Benefits (paid), net of transfers (1,487) (2,361) Curtailments & settlements (285) (799) Foreign exchange adjustment 913 (986) Benefit obligations at December 31 $ 19,014 $ 17,715 The increase in benefit obligations at December 31, 2023 compared to December 31, 2022 was primarily driven by actuarial gains and foreign exchange adjustments, the strengthened Euro and Swiss Franc currencies, offset by benefits paid. The decrease in benefit obligations at December 31, 2022 compared to December 31, 2021 was primarily driven by benefits paid, actuarial gains and foreign exchange adjustments, driven by the weakened Euro and Swiss Franc currencies. The Company's investment policy meets the responsibility under local social legislation and aligns plan assets with liabilities, while minimizing risk. For the years ended December 31, 2023 and 2022, plan assets are invested in guaranteed investment contracts. Fair value of guaranteed investment contracts is surrender value. Fair value for the year ended December 31, 2023 was determined using Level 3 inputs as defined by ASC 820, Fair Value Measurements . Changes in plan assets are attributable to benefit payments and contributions as the Company has not actively traded assets during the years ended December 31, 2023 and 2022. Other The accumulated benefit obligation for the plans were $17.8 million and $16.8 million as of December 31, 2023 and 2022, respectively. The Company expects to pay approximately $0.8 million of contributions over the next twelve months. The amounts reclassified out of other comprehensive income during the years ended December 31, 2023, 2022, and 2021 were not material. Actuarial Assumptions Certain actuarial assumptions such as the discount rate and the long-term rate of return on plan assets have a significant effect on the amounts reported for net periodic cost and the benefit obligation. The assumed discount rates reflect the prevailing market rates of a universe of high-quality, non-callable, corporate bonds currently available that, if the obligation were settled at the measurement date, would provide the necessary future cash flows to pay the benefit obligation when due. In determining the long-term return on plan assets, the Company considers long-term rates of return of comparable low risk investments, such as Euro AA bonds. The following range of assumptions between all plans were utilized in the pension calculations: December 31, 2023 2022 (%) Discount rates 1.40 - 4.10 2.15 - 3.50 Inflation 1.25 - 2.20 1.25 - 2.20 Expected return on plan assets 2.00 - 2.50 2.00 - 2.50 Rate of salary increases 2.25 - 3.20 2.25 - 3.20 Projected future pension benefits as of December 31, 2023 (in thousands): 2024 $ 479 2025 $ 558 2026 $ 1,146 2027 $ 417 2028 $ 503 Beyond $ 5,681 |
Geographic, Customer and Suppli
Geographic, Customer and Supplier Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic, Customer and Supplier Information | Segment Information Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. • Digital Agreements. Digital Agreements consists of solutions that enable our clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are largely cloud-based, include OneSpan Sign e-signature, OneSpan Notary and OneSpan Trust Vault. This segment also includes costs attributable to our transaction cloud platform. • Security Solutions. Security Solutions consists of our broad portfolio of software products, software development kits (SDKs) and Digipass authenticator devices that are used to build applications designed to defend against attacks on digital transactions across online environments, devices, and applications. The software products and SDKs included in the Security Solutions segment are largely on-premises software products and include identity verification, multi-factor authentication and transaction signing solutions, such as mobile application security and mobile software tokens. Segment operating income consists of the revenues generated by a segment, less the direct costs of revenue, sales and marketing, research and development expenses, amortization expense, and restructuring and other related charges that are incurred directly by a segment. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Prior to 2023, the Company allocated certain cost of goods sold and operating expenses to its two reportable operating segments using a direct cost allocation and an allocation based on revenue split between the segments. As a result of the ongoing strategic transformation, the Company refined its operating segment allocation methodology to better align internal and external costs more directly to where the employee efforts are being spent on each segment moving forward. The revised methodology was applied on a prospective basis beginning in 2023. As a result of this change, there was an increase in cost of goods sold and operating expenses being allocated to the Digital Agreements segment, which better aligns with the investments the Company is making to grow that segment as compared to its Security Solutions segment. The tables below set forth information about the Company’s operating segments for the years ended December 31, 2023, 2022, and 2021, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Years Ended December 31, (In thousands, except percentages) 2023 2022 2021 Digital Agreements Revenue $ 50,925 $ 48,401 $ 40,551 Gross profit $ 37,742 $ 37,488 $ 29,557 Gross margin 74 % 77 % 73 % Operating (loss) income (1) $ (18,525) $ 5,348 $ (1,612) Security Solutions Revenue $ 184,181 $ 170,605 $ 173,930 Gross profit $ 119,974 $ 111,082 $ 113,378 Gross margin 65 % 65 % 65 % Operating income (2) $ 60,190 $ 32,051 $ 35,395 Total Company: Revenue $ 235,106 $ 219,006 $ 214,481 Gross profit $ 157,715 $ 148,570 $ 142,935 Gross margin 67 % 68 % 67 % Statements of operations reconciliation: Segment operating income $ 41,665 $ 37,399 $ 33,783 Corporate operating expenses not allocated at the segment level 70,536 64,514 59,911 Operating loss $ (28,871) $ (27,115) $ (26,128) Interest income, net 2,090 595 (1) Other income (expense), net (532) 14,827 (14) Loss before income taxes $ (27,313) $ (11,693) $ (26,143) (1) Digital Agreements operating income includ es $2.3 million, $2.3 million, and $2.5 million of amortization of intangible assets expense for the years ended December 31, 2023, 2022, and 2021, respectively. (2) Security Solutions operating income includes $0, $1.8 million, and $3.3 million of amortization of intangible assets expense for the years ended December 31, 2023, 2022, and 2021, respectively. The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company's two operating segments for the years ended December 31, 2023, 2022, and 2021. Years Ended December 31, 2023 2022 2021 (In thousands) Digital Agreements Security Solutions Digital Agreements Security Solutions Digital Agreements Security Solutions Subscription (1) $ 45,886 $ 60,550 $ 42,029 $ 47,124 $ 33,283 $ 35,224 Maintenance and support 4,143 42,240 5,451 42,894 5,709 45,567 Professional services and other (2) 896 5,425 921 7,087 1,494 13,703 Hardware products — 75,966 — 73,500 65 79,436 Total Revenue $ 50,925 $ 184,181 $ 48,401 $ 170,605 $ 40,551 $ 173,930 (1) Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. (2) Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Goodwill and Other . Asset information by segment is not reported to or reviewed by the CODM to allocate resources, and therefore, the Company has not disclosed asset information for the segments. The Company classifies sales by customers’ locations in three geographic regions: 1) EMEA, which includes Europe, the Middle East, and Africa; 2) the Americas, which includes sales in North, Central, and South America and Canada; and 3) Asia Pacific, which also includes Australia and New Zealand. (In thousands) Europe, Americas Asia Pacific Total 2023 Revenue $ 111,568 $ 80,057 $ 43,481 $ 235,106 Gross profit $ 74,843 $ 53,704 $ 29,168 $ 157,715 Long-lived assets $ 5,783 $ 18,795 $ 315 $ 24,893 2022 Revenue $ 100,298 $ 77,740 $ 40,968 $ 219,006 Gross profit $ 68,040 $ 52,738 $ 27,792 $ 148,570 Long-lived assets $ 4,856 $ 15,270 $ 577 $ 20,703 2021 Revenue $ 104,878 $ 68,646 $ 40,957 $ 214,481 Gross profit $ 69,893 $ 45,747 $ 27,295 $ 142,935 Long-lived assets $ 5,978 $ 13,634 $ 342 $ 19,954 For the years 2023, 2022, and 2021, the top 10 customers contributed 22%, 23% and 22%, respectively, of total worldwide revenue. All of the Company's hardware products are assembled by four independent factories in China and one independent factory in Romania. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases office space and automobiles under operating lease agreements. See Note 12, Leases, for future minimum rental payments required under non-cancelable leases. At December 31, 2023, the Company has purchase obligations of $6.3 million for other software agreements related to the administration of the Company's business which range from 1 to 3 years. The Company is subject to certain legal proceedings and claims incidental to the operations of its business. The Company is also subject to certain other legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully adjudicated. The Company currently does not anticipate that these matters, if resolved against the Company, will have a material adverse impact on its financial results or financial condition. The Company accrues loss contingencies when losses become probable and are reasonably estimable. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. As of December 31, 2023, the Company has recorded an accrual of $1.2 million for loss contingencies related to all probable losses where a reasonable estimate could be made. The Company does not accrue for contingent losses that, in the judgment of the Company, are considered to be reasonably possible, but not probable. As of December 31, 2023, the Company does not have any reasonably possible losses for which an estimate can be made. Although the Company intends to defend its legal matters vigorously, the ultimate outcome of these matters is uncertain. However, the Company does not expect the potential losses, if any, to have a material adverse impact on its operating results, cash flows, or financial condition. |
Restructuring and Other Related
Restructuring and Other Related Charges | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring and Other Related Charges In December 2021, the Company's Board approved a restructuring plan (“Plan”) designed to advance the Company’s operating model, streamline its business, improve efficiency, and enhance its capital resources. As part of the first phase of the Plan, the Company reduced headcount by eliminating positions in certain areas of its organization. The first phase of the Plan began and was substantially completed during the three months ended March 31, 2022. In May 2022, the Board approved additional actions related to the Plan through the year ending December 31, 2025. This second phase of the Plan consisted primarily of headcount-related reductions and was designed to achieve the same objectives as the first phase of the Plan. On August 3, 2023, the Board approved additional cost reduction and restructuring actions (the "2023 Actions") to seek to drive higher levels of Adjusted EBITDA while maintaining the Company's long-term growth potential. The Company has incurred and expects to continue to incur restructuring charges in connection with the 2023 Actions, and anticipates that these charges will consist primarily of charges related to employee transition and severance payments, employee benefits and retention related payments, and share-based compensation, with a significantly smaller amount of charges relating to vendor contract termination and rationalization actions. In connection with the Plan (including the 2023 Actions), the Company recorded $17.3 million and $13.3 million in “Restructuring and other related charges” in the consolidated statement of operations for the years ended December 31, 2023 and 2022. The main categories of charges are in the following areas: • Employee costs – include severance, related benefits, and retention pay costs incurred as a result of eliminating positions in certain areas of the Company. For the years ended December 31, 2023 and 2022, severance-related costs were $11.7 million and $9.5 million, respectively. In total, there were approximately 270 employees, across multiple functions, whose positions were made redundant. The $2.6 million current portion of the restructuring liability at December 31, 2023 is included in "Accrued wages and payroll taxes" in the consolidated balance sheet and is expected to be paid within the next 12 months. The $0.5 million non-current portion is included in "Other long-term liabilities" in the consolidated balance sheet and is expected to be paid within the next 24 months. • Real estate rationalization costs – includes costs to align the real estate footprint with the Company’s needs. The Company vacated its Chicago office space and abandoned the underlying leases during June 2023. In September 2023, the Company vacated its Brussels office and terminated the lease effective September 30, 2023. The Company accrued contract termination fees of $1.4 million and $0.3 million for the Chicago office and Brussels office, respectively. The Company also made the decision to terminate its Brussels warehouse lease, effective July 31, 2024, and accrued $0.2 million in settlement costs. The $1.2 million current portion of the restructuring liability at December 31, 2023 is included in "Other accrued expenses" in the consolidated balance sheet and is expected to be paid within the next 12 months. The $0.7 million non-current portion is included in "Long-term lease liabilities" in the consolidated balance sheet and is expected to be paid within the next 16 months. In conjunction with the abandonment of the Chicago lease and termination of the Brussels lease, the underlying right-of-use assets and liabilities were written off and a $0.3 million gain and $0.1 million loss, respectively, were recorded related to rent concessions and tenant improvement allowances for restructuring. The Company wrote off $0.7 million and $0.6 million of fixed assets in its Chicago and Brussels leased office space, respectively (See Note 9, Property and Equipment, net ). • Product and services optimization costs – includes costs to discontinue products and services that are no longer advancing the Company's operating model. In June 2023, the Company discontinued its investments in its Digipass CX product and incurred $1.5 million of write-offs for capitalized software. The charges were recorded in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. • Vendor rationalization costs – includes costs for contractually committed services the Company is no longer utilizing or deriving benefit. For the year ended December 31, 2023, these costs totaled $1.2 million, and are included in "Restructuring and other related charges" on the consolidated statements of operations. • Impairment of intangibles – include impaired Dealflo customer relationships where the carrying value exceeded the fair value for the year ended December 31, 2022. The Company recorded a $3.8 million impairment charge on the entire remaining value of the asset during the year ended December 31, 2022. The charge is included in “Restructuring and other related charges” on the consolidated statements of operations and is included in "Operating income" of the Security Solutions reportable operating segment (See Note 8, Intangible Assets ) . The table below sets forth the changes in the carrying amount of the restructuring charge liability for the year ended December 31, 2023. (In thousands) Employee Costs Real Estate Rationalization Total Balance as of December 31, 2021 $ — $ — $ — Additions 9,482 — 9,482 Payments (5,886) — (5,886) Balance as of December 31, 2022 3,596 — 3,596 Additions 11,703 1,885 13,588 Payments (12,169) — (12,169) Balance as of December 31, 2023 $ 3,130 $ 1,885 $ 5,015 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Agreements with Related Parties Since the fourth quarter of 2021, the Company has provided e-signature and secure agreement automation services to a customer that is considered a related party because one of the Company’s Board members is an officer of the customer. The amount of revenue recognized for e-signature and secure agreement automation services during the years ended December 31, 2023, 2022, and 2021 was $1.1 million, $0.7 million, and $0.3 million, respectively, and is included in subscription revenue. The amount receivable as of December 31, 2023 and 2022 was $1.1 million and $1.0 million, respectively. The Company purchased SMS subscription services and cloud operations services from vendors that were considered related parties during 2023 and/or 2022 because one of the Company’s Board members is, or was during the relevant period, an officer of the respective vendor. The total amount paid to the related parties during the years ended December 31, 2023 and 2022 was $1.3 million and $1.2 million, respectively, and is included in cost of goods sold. The amount payable at both December 31, 2023 and 2022 was $0.2 million. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn January 4, 2024, the Board of Directors of the Company appointed Victor Limongelli as Interim Chief Executive Officer, effective immediately. Mr. Limongelli replaced Matthew Moynahan, whose employment as the Company’s President and Chief Executive Officer was terminated without cause on January 4, 2024 immediately prior to Mr. Limongelli’s appointment. Under his previously disclosed Amended and Restated Employment Agreement, dated February 27, 2023, (the "Employment Agreement"), Mr. Moynahan is entitled to receive the payments and benefits associated with a termination without cause as set forth in the Employment Agreement. Therefore, $1.2 million of severance and other benefits were accrued for as of December 31, 2023 and included within "other accrued expenses" on the consolidated balance sheet. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II ONESPAN INC. VALUATION AND QUALIFYING ACCOUNTS Credit losses for trade receivables. Years Ended December 31, Beginning Provision Chargeoffs Foreign Ending 2023 $ 1,600 286 (350) — $ 1,536 2022 $ 1,419 517 (334) (2) $ 1,600 2021 $ 4,135 (16) (2,689) (11) $ 1,419 See accompanying independent auditors’ report. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net loss | $ 441 | $ (4,133) | $ (17,751) | $ (8,356) | $ (3,097) | $ (7,201) | $ (9,350) | $ 5,214 | $ (29,799) | $ (14,434) | $ (30,584) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of the Company | Description of the Company OneSpan provides security, identity, electronic signature (“e-signature”) and digital workflow solutions that protect and facilitate digital transactions and agreements. The Company delivers products and services that automate and secure customer-facing and revenue-generating business processes for use cases ranging from simple transactions to workflows that are complex or require higher levels of security. The Company’s solutions help its customers ensure the integrity of the people and records associated with digital agreements, transactions, and interactions in industries including banking, financial services, healthcare, and professional services. OneSpan has operations in Austria, Australia, Belgium, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K.), and the United States (U.S.). |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company regularly assess these estimates, including but not limited to, stock-based compensation including the determination of the fair value of our stock-based awards, realization of deferred tax assets, pension obligations, estimated life of our long-lived assets, purchase price allocations for business combinations, valuation of the acquired intangibles purchased in a business combination, valuation of goodwill, estimated standalone selling price of our performance obligations, and estimated consideration for implementation services. Estimates are based on historical experience and on various other market-specific and relevant assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality short-term money market instruments and commercial paper with maturities at acquisition of three months or less. Cash and cash equivalents are held by a number of U.S. and non-U.S. commercial banks and money market investment funds. The Company is party to lease agreements that require letters of credit and guarantees to secure the obligations which totaled $0.9 million and $1.1 million at December 31, 2023 and 2022, respectively. Additionally, the Company maintained a cash guarantee with a payroll vendor in the amount of $0.1 million at both December 31, 2023 and 2022. The restricted cash related to the letters of credit and guarantees is recorded in "Restricted cash" on the consolidated balance sheets. |
Short Term Investments | Short-Term Investments The Company’s short-term investments are in debt securities which consist of U.S. treasury bills and notes, U.S. government agency notes, corporate notes, and high-quality commercial paper with maturities at acquisition of more than three months and less than twelve months. The Company classifies its investments in debt securities as available-for-sale. |
Credit Losses | Credit Losses Reasonable assurance of collection is a requirement for revenue recognition. Credit limit adjustments for existing customers may result from the periodic review of outstanding accounts receivable. The Company records trade accounts receivable at invoice values, which are generally equal to fair value. In accordance with accounting standards updates ("ASU") No. 2016-13, the Company evaluates its allowance based on expected losses rather than incurred losses, which is known as the current expected credit loss (“CECL”) model. The allowance is determined using the loss rate approach and is measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they are evaluated on an individual basis. The allowance is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments At December 31, 2023 and 2022, the Company's financial instruments were cash and cash equivalents, restricted cash, short-term investments, accounts receivable, accounts payable, and accrued liabilities. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in Accounting Standards Codification "ASC" 820, Fair Value Measurements |
Inventories | Inventories Inventories, consisting principally of hardware and component parts, are stated at the lower of cost or net realizable value. Cost is determined using the first-in-first-out (FIFO) method. The Company writes down inventory when it appears that the carrying cost of the inventory may not be recovered through subsequent sale of the inventory. The Company analyzes the quantity of inventory on hand, the quantity sold in the past year, the anticipated sales volume in the form of sales to new customers as well as sales to previous customers, the expected sales price and the cost of making the sale when evaluating the valuation of inventory. If the sales volume or sales price of a specific model declines significantly, additional write downs may be required. |
Property and Equipment, net | Property and Equipment, net Property and equipment, net, is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets ranging from three |
Accounting for Leases | Accounting for Leases All of the Company's leases are operating leases. The Company records leases in accordance with ASC Topic 842, Leases. The Company elected the following practical expedients: • The package of practical expedients permitted under the transition guidance within the new standard. The practical expedient package applies to leases commenced prior to adoption of the new standard and permits companies not to reassess whether existing or expired contracts contain a lease, the lease classification, and any initial direct costs for existing leases. • The short-term lease practical expedient, which allowed the Company to exclude short-term leases from recognition in the consolidated balance sheets; • The Company has lease agreements that contain lease and non-lease components. For automobile leases, lease and non-lease components are accounted for together. For office leases, the components are accounted for separately using a relative standalone selling basis; and • The Company applies the portfolio approach to automobile leases with similar characteristics that commence in the same period. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the fair value of net identifiable assets acquired in a business combination. The Company assesses the impairment of goodwill annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The annual impairment test date is October 1. The Company’s impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The qualitative assessment includes comparing the overall financial performance of the reporting unit against the planned results. Additionally, the reporting unit’s fair value is assessed in light of certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity and reporting unit specific events. The selection and assessment of qualitative factors used to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value involves significant judgments. If it is determined under the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the estimated fair value of the reporting unit is compared with its carrying value. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. |
Long-Lived and Intangible Assets | Long-Lived and Intangible Assets Finite-lived intangible assets include proprietary technology, customer relationships, and other intangible assets. Intangible assets other than patents with indefinite lives are amortized over the useful life, generally three five Long-lived assets, including property, plant and equipment, operating lease right-of-use assets, finite-lived intangible assets being amortized and capitalized software costs for internal use, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset group may not be recoverable. An impairment loss shall be recognized if the carrying amount of a long-lived asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived asset group exceeds its fair value. Long-lived assets held for sale are reported at the lower of carrying value or fair value less cost to sell. |
Equity Method Investment | Equity Method Investment On January 31, 2022, the Company sold its equity interest in Promon AS (Promon) for $18.9 million and recorded the gain on sale of $14.8 million in “Other income (expense), net”, on the consolidated statement of operations for the year ended December 31, 2022. Promon is a technology company headquartered in Norway that specializes in mobile app security, whose solutions focus largely on Runtime Application Self-Protection (RASP). Prior to January 31, 2022, the Company held a 17% interest in Promon and applied the equity method of accounting to its investment in Promon because it exercised significant influence on, but did not hold a controlling interest in, the investee. Under the equity method of accounting, the Company’s proportionate share of the net earnings (losses) of Promon was reported in “Other income (expense), net”, on the consolidated statements of operations. The impact of the proportionate share of net earnings (losses) was immaterial for the years ended December 31, 2022 and 2021, as were the relative size of Promon’s assets and operations in relation to the Company’s. The Company intends to continue to purchase and integrate Promon’s RASP technology into its customer software solutions. |
Share Repurchase Program | Share Repurchase Program On May 12, 2022, the Board of Directors adopted a stock repurchase program (the "2022 stock repurchase program") under which the Company is authorized to repurchase up to $50.0 million of its issued and outstanding common stock. Share purchases under the program will take place in open market transactions, privately negotiated transactions or tender offers, and may be made from time to time depending on market conditions, share price, trading volume, and other |
Revenue Recognition | Revenue Recognition The Company records revenue in accordance with ASC Topic 606 "Revenue from Contracts with Customers". We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy a performance obligation. Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services, which excludes any sales incentives and amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight before control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in "Cost of goods sold". Nature of Goods and Services The Company derives our revenues primarily from product and license revenue, which includes hardware products and on-premises subscription revenue, and services and other, which is inclusive of cloud subscription revenue, maintenance and support, and professional services. Subscription : Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. Cloud subscription revenues are generated from the Company's Digital Agreements and Security Solutions service offerings. Standard customer arrangements do not provide the customer with the right to take possession of the software supporting the cloud-based application service at any time. As such, these arrangements are considered service contracts and revenue is recognized ratably over the service period of the contract. Customer payments are normally in advance for annual service. Revenue from the sale of on-premises subscription revenue is recorded upon delivery which is the latter of when the customer receives the ability to access the software or when they are legally allowed to use the software. No significant obligations or contingencies exist with regard to delivery, customer acceptance or rights of return at the time revenue is recognized. The Company offers term licenses for on-premises subscription revenue ranging from one to five years in length. For term licenses, payments are either on installment or in advance. In limited circumstances, the Company integrates third-party software solutions into our software products. The Company has determined that, consistent with its conclusion under prior revenue recognition rules, generally the Company acts as the principal with respect to the satisfaction of the related performance obligation and records the corresponding revenue on a gross basis from these transactions. For transactions in which the Company does not act as the principal, the Company recognizes revenue on a net basis. The fees owed to the third parties are recognized as a component of cost of goods sold when the revenue is recognized. Maintenance and support : Maintenance and support agreements generally call for the Company to provide software updates and technical support, respectively, to customers. The annual fee for maintenance and technical support is recognized ratably over the term of the maintenance and support agreement as this is the period the services are delivered. Customer payments are normally in advance for annual service. Professional Services and other Revenue : Professional services revenues are primarily comprised of implementing, automating and extending business processes, technology infrastructure, and software applications. Professional services revenues are recognized over time as services are rendered, usually over a period of time that is generally less than a few months. Most projects are performed on a time and materials basis while a portion of revenues is derived from projects performed on a fixed fee. For time and material contracts, revenues are generally recognized and invoiced by multiplying the number of hours expended in the performance of the contract by the contractual hourly rates. For fixed fee contracts, revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours to complete the services. Customer payments normally correspond with delivery. Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Perpetual licenses grant the customer unlimited access to the software. Hardware products : Revenue from the sale of security hardware is recorded upon shipment, which is the point at which control of the goods are transferred and the performance obligations are completed, unless there are specific terms that would suggest control is transferred at a later date (e.g. delivery). No significant obligations or contingencies typically exist with regard to delivery, customer acceptance or rights of return at the time revenue is recognized. Customer invoices and subsequent payments normally correspond with delivery. The Company also enters into separate service agreements with certain hardware customers to perform distribution services. In these situations, revenue is recognized prior to physical delivery of a good (i.e. “bill-and-hold arrangements). The Company evaluates bill-and-hold arrangement, and records revenue accordingly when the following criteria is met: • The reason for the bill-and-hold arrangement is substantive; • The product is identified separately as belonging to the customer; • The product currently is ready for physical transfer to the customer; • The Company does not have the ability to use the product or to direct it to another customer. Multiple-Element Arrangements In the Company's typical multiple-element arrangement, the primary deliverables include: 1. A client component (i.e. an item that is used by the person being authenticated in the form of either a new standalone hardware device or software that is downloaded onto a device that the customer already owns); 2. Server system software that is installed on the customer’s systems (i.e. software on the server system that verifies the identity of the person being authenticated) or licenses for additional users on the server system software if the server system software had been installed previously; and 3. Post contract support (PCS) in the form of maintenance on the server system software or support. The Company's multiple-element arrangements may also include other items that are usually delivered prior to the recognition of any revenue and are incidental to the overall transaction such as initialization of the hardware device, customization of the hardware device itself or the packaging in which it is delivered, deployment services where the Company delivers the device to its customer’s end-use customer or employee and, in some limited cases, professional services to assist with the initial implementation of a new customer. Significant Judgments The Company enters into contracts to deliver a combination of hardware devices, software licenses, subscriptions, maintenance and support and, in some situations, professional services. The Company evaluates the nature of the goods or services promised in these arrangements to identify the distinct performance obligations. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment depending on the terms and conditions of the respective customer arrangement. When a hardware client device and licenses to server software are sold in a contract, they are treated as a single performance obligation because the software license is deemed to be a component of the hardware that is integral to the functionality of the hardware that is used by customers for identity authentication. When a software client device is sold in a contract server software, the licenses are considered a single performance obligation to deliver the authentication solution to the customer. In either of these types of arrangements, maintenance and support and professional services are typically distinct separate performance obligations from the hardware or software solutions. Contracts to deliver subscription services typically do not include multiple performance obligations; however, in certain limited cases customers may purchase professional services that are distinct performance obligations. For contracts that contain multiple performance obligations, the transaction price is allocated to the separate performance obligations based on their estimated relative standalone selling price. Judgment is required to determine the stand-alone selling price (“SSP”) of each distinct performance obligation. We determine SSP for maintenance and support and professional services based on observable inputs; specifically, the range of prices charged to customers to renew annual maintenance and support contracts and the range of hourly rates we charge customers in standalone professional services contracts. In instances where SSP is not directly observable, and when we sell at a highly variable price range, such as for transactions involving cloud and on-premise subscription-based licenses or hardware, we determine the SSP for those performance obligations using the residual approach. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold related to product and license include direct product costs and direct costs, including personnel costs, production costs, and freight costs. Cost of goods sold related to service and other revenues are primarily costs related to cloud subscription solutions, including personnel, equipment costs, and capitalized software costs and internal professional services and maintenance support. |
Research and Development Costs | Research and Development Costs As part of the 2022 strategic plan, the Company began investing in its Digital Agreements operating segment for accelerated growth. In conjunction with expanded research and development activities to grow the Company’s transaction-cloud platform and Digital Agreements product offerings, the Company began capitalizing certain costs incurred in connection with obtaining or developing internal-use software during the year ended December 31, 2022. These costs include payroll and payroll-related costs for employees who are directly associated with the internal-use software projects, external direct costs of materials and services costs while developing the software. Capitalized software costs are included in “Property and equipment, net” on the consolidated balance sheets and are depreciated using the straight-line method over the estimated life of three years. Capitalization of such costs ceases when the project is substantially complete and ready for its intended purpose. Costs incurred during the preliminary project and post-implementation stages, as well as software maintenance and training costs, are expensed in the period in which they are incurred. Other costs for research and development, principally the design and development of hardware, and the design and development of software prior to the determination of technological feasibility, are expensed as incurred on a project-by-project basis. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based employee compensation plans, described in Note 15, Stock Compensation Plans . ASC 718, Stock Compensation, requires the Company to estimate the fair value of restricted stock granted to employees, directors and others to record compensation expense equal to the estimated fair value. Compensation expense is recorded on a straight-line basis over the vesting period for time-based awards and performance and market-based awards with cliff vesting provisions and on a graded basis for performance and market-based awards with graded vesting provisions. Forfeitures are recorded as incurred. |
Retirement Benefits | Retirement Benefits The Company records annual expenses relating to defined benefit pension plans based on calculations which include various actuarial assumptions, including discount rates, assumed asset rates of return, compensation increases, and turnover rates. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. The effects of gains, losses, and prior service costs and credits are amortized over the average service life. The funded status, or projected benefit obligation less plan assets, for each plan, is reflected in the consolidated financial statements using a December 31 measurement date. |
Other Income (Expense), net | Other Income (Expense), net |
Income Taxes | Income Taxes The Company calculates and provides for income taxes in each tax jurisdiction in which it operates. The provision for income taxes includes the amounts payable or refundable for the current year, the effect of deferred taxes and impacts from uncertain tax positions. The Company’s provision for income taxes is significantly affected by shifts in the geographic mix of its pre-tax earnings across tax jurisdictions, changes in tax laws and regulations, and tax planning opportunities available in each tax jurisdiction. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement and tax bases of the Company's assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those differences are expected to be recovered or settled. Valuation allowances are established for deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes the effect of a change in tax rates on deferred tax assets and liabilities and in income in the period that includes the enactment date. The Company recognizes tax benefits for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company's income tax returns that do not meet these recognition and measurement standards. Assumptions, judgments, and the use of estimates are required in determining whether the “more-likely-than-not” standard has been met when developing the provision for income taxes. The Company recognizes the tax impact of including certain foreign earnings in U.S. taxable income as a period cost. The Company has recognized deferred income taxes for local country income and withholding taxes that could be incurred on distributions of non-U.S. earnings because management does not plan to indefinitely reinvest such earnings. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures. Public business entities are required to adopt for annual fiscal periods beginning after December 31, 2024 and early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and related disclosures. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of segment information to the totals reported in the accompanying consolidated financial statements | The tables below set forth information about the Company’s operating segments for the years ended December 31, 2023, 2022, and 2021, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Years Ended December 31, (In thousands, except percentages) 2023 2022 2021 Digital Agreements Revenue $ 50,925 $ 48,401 $ 40,551 Gross profit $ 37,742 $ 37,488 $ 29,557 Gross margin 74 % 77 % 73 % Operating (loss) income (1) $ (18,525) $ 5,348 $ (1,612) Security Solutions Revenue $ 184,181 $ 170,605 $ 173,930 Gross profit $ 119,974 $ 111,082 $ 113,378 Gross margin 65 % 65 % 65 % Operating income (2) $ 60,190 $ 32,051 $ 35,395 Total Company: Revenue $ 235,106 $ 219,006 $ 214,481 Gross profit $ 157,715 $ 148,570 $ 142,935 Gross margin 67 % 68 % 67 % Statements of operations reconciliation: Segment operating income $ 41,665 $ 37,399 $ 33,783 Corporate operating expenses not allocated at the segment level 70,536 64,514 59,911 Operating loss $ (28,871) $ (27,115) $ (26,128) Interest income, net 2,090 595 (1) Other income (expense), net (532) 14,827 (14) Loss before income taxes $ (27,313) $ (11,693) $ (26,143) (1) Digital Agreements operating income includ es $2.3 million, $2.3 million, and $2.5 million of amortization of intangible assets expense for the years ended December 31, 2023, 2022, and 2021, respectively. (2) Security Solutions operating income includes $0, $1.8 million, and $3.3 million of amortization of intangible assets expense for the years ended December 31, 2023, 2022, and 2021, respectively. |
Information regarding geographic areas | The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company's two operating segments for the years ended December 31, 2023, 2022, and 2021. Years Ended December 31, 2023 2022 2021 (In thousands) Digital Agreements Security Solutions Digital Agreements Security Solutions Digital Agreements Security Solutions Subscription (1) $ 45,886 $ 60,550 $ 42,029 $ 47,124 $ 33,283 $ 35,224 Maintenance and support 4,143 42,240 5,451 42,894 5,709 45,567 Professional services and other (2) 896 5,425 921 7,087 1,494 13,703 Hardware products — 75,966 — 73,500 65 79,436 Total Revenue $ 50,925 $ 184,181 $ 48,401 $ 170,605 $ 40,551 $ 173,930 (1) Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. (2) Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. (In thousands) Europe, Americas Asia Pacific Total 2023 Revenue $ 111,568 $ 80,057 $ 43,481 $ 235,106 Gross profit $ 74,843 $ 53,704 $ 29,168 $ 157,715 Long-lived assets $ 5,783 $ 18,795 $ 315 $ 24,893 2022 Revenue $ 100,298 $ 77,740 $ 40,968 $ 219,006 Gross profit $ 68,040 $ 52,738 $ 27,792 $ 148,570 Long-lived assets $ 4,856 $ 15,270 $ 577 $ 20,703 2021 Revenue $ 104,878 $ 68,646 $ 40,957 $ 214,481 Gross profit $ 69,893 $ 45,747 $ 27,295 $ 142,935 Long-lived assets $ 5,978 $ 13,634 $ 342 $ 19,954 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues disaggregated by geography, major product line and timing of revenue recognition | The following tables present the Company's revenues disaggregated by major products and services, geographical region and timing of revenue recognition. Revenue by major products and services Years Ended December 31, (In thousands) 2023 2022 2021 Subscription (1) $ 106,436 $ 89,153 $ 68,507 Maintenance and support 46,383 48,345 51,276 Professional services and other (2) 6,321 8,008 15,197 Hardware products 75,966 73,500 79,501 Total Revenue $ 235,106 $ 219,006 $ 214,481 (1) Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. (2) Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Revenue by location of customer for the years ended December 31, 2023, 2022, and 2021 Years Ended December 31, (In thousands, except percentages) 2023 2022 2021 Revenue EMEA $ 111,568 $ 100,298 $ 104,878 Americas 80,057 77,740 68,646 APAC 43,481 40,968 40,957 Total revenue $ 235,106 $ 219,006 $ 214,481 % of Total Revenue EMEA 47 % 46 % 49 % Americas 34 % 35 % 32 % APAC 19 % 19 % 19 % Timing of revenue recognition Years Ended December 31, (In thousands) 2023 2022 2021 Products and Licenses transferred at a point in time $ 130,848 $ 121,426 $ 120,358 Services transferred over time 104,258 97,580 94,123 Total Revenue $ 235,106 $ 219,006 $ 214,481 |
Schedule of changes in contract assets and contract liabilities | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers as of December 31, 2023 and 2022: (In thousands) December 31, 2023 2022 Receivables, inclusive of trade and unbilled $ 64,387 $ 65,132 Contract Assets (current and non-current) $ 5,322 $ 4,642 Contract Liabilities (Deferred Revenue current and non-current) $ 73,483 $ 70,907 |
Schedule of estimated revenue expected to be recognized in the future | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2023: (In thousands) 2024 2025 2026 Beyond 2026 Total Future revenue related to current unsatisfied performance obligations $ 49,644 $ 23,894 $ 14,138 $ 4,761 $ 92,437 |
Schedule of information related to the capitalized costs and amortization recognized in the current and prior period | The following tables provide information related to the capitalized costs and amortization recognized in the current and prior period: December 31, (In thousands) 2023 2022 Capitalized costs to obtain contracts, current $ 3,503 $ 2,929 Capitalized costs to obtain contracts, non-current $ 10,766 $ 10,571 (In thousands) Years Ended December 31, 2023 2022 Amortization of capitalized costs to obtain contracts $ 3,122 $ 2,404 Impairments of capitalized costs to obtain contracts $ — $ — |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of inventories, net | Inventories, net, are comprised of the following as of December 31, 2023 and 2022: December 31, (In thousands) 2023 2022 Component parts (1) $ 8,511 $ 6,762 Work-in-process and finished goods 7,042 5,292 Total $ 15,553 $ 12,054 (1) In June 2023, the Company discontinued investments in its Digipass CX product (see Note 20, Restructuring and Other Related Charges |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of business acquisitions, by acquisition | ProvenDB is allocated entirely to our Digital Agreements reportable operating segment. (In thousands) As of Date of Opening Balance Sheet Net assets acquired: Acquired technology $ 1,447 Accrued wages and payroll taxes (47) Goodwill 600 Total net assets acquired $ 2,000 Consideration $ 2,000 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill activity | The following tables present the changes in goodwill during 2023 and 2022: (In thousands) Digital Agreements Security Solutions Total Net balance at December 31, 2021 $ — $ — $ 96,174 Goodwill reallocation 20,966 75,208 — Net foreign currency translation (1,234) (4,426) (5,660) Net balance at December 31, 2022 19,732 70,782 90,514 Acquisition during the period (1) 600 — 600 Net foreign currency translation 561 2,009 2,570 Net balance at December 31, 2023 $ 20,893 $ 72,791 $ 93,684 (1) Represents goodwill recorded in conjunction with the acquisition of substantially all the assets of the ProvenDB business of Southbank Software Pty Ltd. during the three months ended March 31, 2023. See Note 6 , Business Acquisitions, for additional information. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of indefinite-lived intangible assets | Intangible assets as of December 31, 2023 and 2022 consist of the following: December 31, 2023 2022 (In thousands) Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Acquired technology 3 to 7 $ 43,869 $ 42,712 $ 42,022 $ 41,894 Customer relationships 5 to 12 34,773 25,960 34,386 23,323 Patents and trademarks 10 to 20 13,103 12,241 13,518 12,227 Total $ 91,745 $ 80,913 $ 89,926 $ 77,444 |
Expected amortization of intangible assets | The estimated future amortization expense of intangible assets as of December 31, 2023, is as follows: 2024 $ 2,839 2025 2,806 2026 2,398 2027 2,124 2028 50 Thereafter 217 Subject to amortization 10,434 Trademarks 398 Total intangible assets $ 10,832 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of major classes of property and equipment | The following table presents the major classes of property and equipment, net, as of December 31, 2023 and 2022: December 31, (In thousands) Useful Life (in years) 2023 2022 Office equipment and software 3-5 $ 8,574 $ 14,451 Leasehold improvements 10 7,459 9,927 Furniture and fixtures 5 3,658 4,260 Capitalized software 3 12,560 4,007 Total 32,251 32,645 Accumulated depreciation (13,529) (19,964) Property and equipment, net $ 18,722 $ 12,681 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets that are measured at fair value on a recurring basis | The following tables summarize the Company’s financial assets by level in the fair value hierarchy, which are measured at fair value on a recurring basis, as of December 31, 2023 and 2022: Fair Value Measurement at Reporting Date Using (In thousands) December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money Market Funds $ 8,496 $ 8,496 $ — $ — Fair Value Measurement at Reporting Date Using (In thousands) December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Corporate Notes / Bonds $ 2,328 $ — $ 2,328 $ — Commercial Paper $ 6,743 $ — $ 6,743 $ — Money Market Funds $ 48,623 $ 48,623 $ — $ — |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule change in the allowance for credit losses | The change in the allowance for credit losses during the years ended December 31, 2022 and 2023 were as follows: (In thousands) Balance at December 31, 2021 $ 1,419 Provision 517 Write-offs (334) Net foreign currency translation (2) Balance at December 31, 2022 1,600 Provision 286 Write-offs (350) Net foreign currency translation — Balance at December 31, 2023 $ 1,536 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of operating lease costs | Operating lease cost details for the years ended December 31, 2023, 2022, and 2021 are as follows: Years Ended December 31, (In thousands) 2023 2022 2021 Building rent $ 1,638 $ 2,117 $ 2,564 Automobile rentals 1,132 1,180 1,505 Total net operating lease costs $ 2,770 $ 3,297 $ 4,069 |
Schedule of supplemental consolidated balance sheet information related to our operating leases | Supplemental consolidated balance sheet information related to operating leases as of December 31, 2023 and 2022 is as follows: December 31, (In thousands) 2023 2022 Leases Assets $ 6,171 $ 8,022 Operating lease right-of-use assets $ 6,171 $ 8,022 Liabilities Current Operating lease liabilities $ 2,027 $ 2,258 Non-current Operating lease liabilities 6,110 8,442 Accrued early lease termination fees 714 — Total lease liabilities $ 8,851 $ 10,700 |
Schedule of supplemental consolidated cash flow information related to leases | Supplemental consolidated cash flow information related to leases is as follows: Years Ended December 31, (In thousands) 2023 2022 2021 Supplemental cash flow and other information related to leases: Operating cash payments from operating leases $ 2,836 $ 3,346 $ 3,630 ROU assets obtained in exchange for new operating lease liabilities $ 2,650 $ 1,172 $ 589 |
Schedule of maturities of operating leases | Maturities of the Company's operating leases as of December 31, 2023 are as follows: (In thousands) 2024 $ 2,378 2025 1,608 2026 1,515 2027 1,327 2028 1,218 Later years 1,369 Less imputed interest (1,278) Accrued lease termination fees 714 Total lease liabilities $ 8,851 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations | The quarterly results of operations are summarized in the following select income statement line items (in thousands, except per share data): First Second Third Fourth 2023 Total revenues $ 57,607 $ 55,733 $ 58,838 $ 62,928 Gross profit $ 39,286 $ 34,294 $ 40,669 $ 43,466 Operating costs $ 47,416 $ 52,058 $ 45,463 $ 41,649 Operating income (loss) $ (8,130) $ (17,764) $ (4,794) $ 1,817 Provision (benefit) for income taxes $ 689 $ 601 $ 279 $ 917 Net income (loss) $ (8,356) $ (17,751) $ (4,133) $ 441 Net income/(loss) per share: Basic $ (0.21) $ (0.44) $ (0.10) $ 0.01 Diluted $ (0.21) $ (0.44) $ (0.10) $ 0.01 2022 Total revenues $ 52,447 $ 52,790 $ 57,147 $ 56,622 Gross profit $ 36,678 $ 35,506 $ 38,431 $ 37,955 Operating costs $ 45,921 $ 43,744 $ 44,056 $ 41,964 Operating income (loss) $ (9,243) $ (8,238) $ (5,625) $ (4,009) Provision (benefit) for income taxes $ 1,173 $ 472 $ 600 $ 496 Net income (loss) $ 5,214 $ (9,350) $ (7,201) $ (3,097) Net income/(loss) per share: Basic $ 0.13 $ (0.23) $ (0.18) $ (0.08) Diluted $ 0.13 $ (0.23) $ (0.18) $ (0.08) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income taxes | Loss before income taxes was generated in the following jurisdictions: Years Ended December 31, (In thousands) 2023 2022 2021 U.S. $ (13,526) $ (9,569) $ (15,056) Non-U.S. (13,787) (2,124) (11,087) Total $ (27,313) $ (11,693) $ (26,143) |
Provision for income taxes | The provision (benefit) for income taxes consists of the following: Years Ended December 31, (In thousands) 2023 2022 2021 Current: Federal $ 2 $ 122 $ (11) State 54 32 (23) Foreign 2,473 1,665 2,478 Total current 2,529 1,819 2,444 Deferred: Federal 361 (349) 3,774 State (47) 35 (3) Foreign (357) 1,236 (1,774) Total deferred (43) 922 1,997 Total $ 2,486 $ 2,741 $ 4,441 |
Differences between income tax provisions and provisions for income taxes | The differences between the income tax provisions computed using the statutory federal income tax rate and the provisions for income taxes reported in the consolidated statements of operations are as follows: Years Ended December 31, (In thousands) 2023 2022 2021 Expected tax at statutory rate $ (5,736) $ (2,456) $ (5,490) Foreign taxes at other rates (213) 3,373 307 Valuation allowance changes 8,513 4,370 15,019 Global intangible low-taxed income inclusion — — — State income taxes, net of federal benefit (170) (322) (811) Uncertain tax positions — (515) 12 Research credits (633) (2,568) (3,466) Disallowed expenses and other 725 859 (1,130) Total $ 2,486 $ 2,741 $ 4,441 |
Deferred income tax balances | Significant components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022, are as follows: December 31, (In thousands) 2023 2022 Deferred tax assets: Stock and long-term compensation plans $ 1,515 $ 923 Foreign NOL & other carryforwards 45,390 41,154 U.S. and state NOL carryforwards 7,866 5,654 Deferred revenue 650 863 Pension liability 531 498 Amortization and depreciation 1,626 526 Lease liability 2,383 2,641 Capitalized research and development 446 487 Accrued expenses and other 948 1,427 Total gross deferred tax assets 61,355 54,173 Less: Valuation allowance (47,844) (39,177) Net deferred income tax assets $ 13,511 $ 14,996 Deferred tax liabilities: Accruals $ 367 $ 319 Tax on unremitted foreign earnings 1,164 1,249 Right of use asset 2,095 2,531 Intangible assets 2,217 3,009 Tax on credits 3,689 3,736 Contract acquisition costs 3,325 3,448 Deferred tax liabilities $ 12,857 $ 14,292 Net deferred tax assets $ 654 $ 704 |
Summary of net operating loss carryforwards | At December 31, 2023, the Company had foreign and state net operating loss (NOL) carryforwards and other foreign deductible carryforwards as shown in the following table: (In thousands) Carryforward Expiration NOL Carryforward Canada $ 44,461 2032-2043 United States 27,512 None United Kingdom 10,543 None Switzerland 20,127 2028-2029 Other foreign 5,779 None Canada province 43,352 2032-2043 U.S. states 30,526 2025-2043 $ 182,300 Other Carryforwards United States credit $ 1,277 2031-2033 Canada 44,357 None Canada province 58,488 None Capital loss 382 None Canada credits 8,819 2033-2043 Canada province credits 3,677 2036-2043 $ 117,000 $ 299,300 |
Schedule of reserves for uncertain tax position | December 31, (In thousands) 2023 2022 2021 Reserve at beginning of year $ — $ 512 $ 500 Increases related to prior year tax positions — — 12 Decreases related to prior year tax positions — (512) — Settlement — — — Total $ — $ — $ 512 |
Summary of income tax examinations | The Company's primary tax jurisdictions and the earliest tax year subject to audit are presented in the following table. Australia 2015 Austria 2017 Belgium 2019 Canada 2019 Netherlands 2018 Singapore 2018 Switzerland 2019 United Kingdom 2021 United States 2017 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of compensation expense | The following table presents stock-based compensation expense and other long-term incentive plan compensation expense for the years ended December 31, 2023, 2022, and 2021. Years Ended December 31, (In thousands) 2023 2022 2021 Stock-based compensation $ 14,252 $ 8,642 $ 4,354 Other long-term incentive plan compensation (1) 310 171 848 Total compensation $ 14,562 $ 8,813 $ 5,202 |
Summary of restricted stock activity | The following table summarizes the time-based restricted stock activity for the year ended December 31, 2023: (Sharecounts in thousands) Shares Weighted- Weighted- Unearned, January 1, 2023 1,733 2.41 $ 13.08 Shares vested (641) 13.49 Shares awarded 1,097 13.14 Shares forfeited (376) 13.04 Unearned, December 31, 2023 1,813 1.85 $ 12.98 The following table summarizes activity related to unvested performance restricted stock shares during 2023: (Sharecounts in thousands) Total Weighted- Weighted- Unearned, January 1, 2023 316 1.38 $ 12.96 Shares vested (95) 13.09 Shares awarded 1,003 14.25 Shares forfeited (258) 14.09 Unearned, December 31, 2023 966 0.84 $ 13.99 The following table summarizes activity related to unvested market and service restricted stock units settled in stock: (Sharecounts in thousands) Shares Weighted- Weighted- Unearned, January 1, 2023 257 2.75 $ 12.17 Shares vested (1) 33.31 Shares awarded — — Shares forfeited (5) 37.93 Unearned, December 31, 2023 251 1.89 $ 11.58 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Details of earnings per share calculations | A reconciliation of the shares included in the basic and fully diluted earnings per share calculations is as follows: Years Ended December 31, (In thousands, except per share data) 2023 2022 2021 Net loss $ (29,799) $ (14,434) $ (30,584) Weighted average common shares outstanding: Basic 40,193 40,143 39,614 Incremental shares with dilutive effect: Restricted stock awards — — — Diluted 40,193 40,143 39,614 Net loss per share: Basic $ (0.74) $ (0.36) $ (0.77) Diluted $ (0.74) $ (0.36) $ (0.77) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic pension cost | Components of net periodic pension cost included in earnings: Years Ended December 31, (In thousands) 2023 2022 2021 Service cost (gross) $ 879 $ 1,107 $ 1,587 Interest cost 560 138 53 Expected return on plan assets (358) (288) (302) Amortization of unrecognized actuarial gain (265) (90) (12) Net periodic pension cost $ 816 $ 867 $ 1,326 |
Summary of net unfunded status of pension plans | The net unfunded status of the Non-U.S. pension plans as of December 31, 2023 and 2022, is as follows: December 31, (In thousands) 2023 2022 Fair value of plan assets $ 16,460 $ 15,415 Projected benefit obligation (19,014) (17,715) Net unfunded benefit obligation $ (2,554) $ (2,300) |
Schedule of change in the fair value of plan assets | The change in the fair value of plan assets is as follows: Years Ended December 31, (In thousands) 2023 2022 Fair value of plan assets at January 1 $ 15,415 $ 17,394 Employee contributions 406 437 Actual return on plan assets 461 (288) Benefits (paid), net of transfers (1,487) (2,361) Employer contributions 864 911 Foreign exchange adjustment 801 (678) Fair value of plan assets at December 31 $ 16,460 $ 15,415 |
Schedule of change in benefit obligations | The change in benefit obligations is as follows: Years Ended December 31, (In thousands) 2023 2022 Benefit obligations at January 1 $ 17,715 $ 24,855 Gross service cost 879 1,107 Interest cost 560 138 Employee contributions 406 437 Actuarial (gains)/losses 313 (4,676) Benefits (paid), net of transfers (1,487) (2,361) Curtailments & settlements (285) (799) Foreign exchange adjustment 913 (986) Benefit obligations at December 31 $ 19,014 $ 17,715 |
Summary of weighted average assumptions | The following range of assumptions between all plans were utilized in the pension calculations: December 31, 2023 2022 (%) Discount rates 1.40 - 4.10 2.15 - 3.50 Inflation 1.25 - 2.20 1.25 - 2.20 Expected return on plan assets 2.00 - 2.50 2.00 - 2.50 Rate of salary increases 2.25 - 3.20 2.25 - 3.20 |
Schedule of projected future pension benefits | Projected future pension benefits as of December 31, 2023 (in thousands): 2024 $ 479 2025 $ 558 2026 $ 1,146 2027 $ 417 2028 $ 503 Beyond $ 5,681 |
Geographic, Customer and Supp_2
Geographic, Customer and Supplier Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Information regarding geographic areas | The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company's two operating segments for the years ended December 31, 2023, 2022, and 2021. Years Ended December 31, 2023 2022 2021 (In thousands) Digital Agreements Security Solutions Digital Agreements Security Solutions Digital Agreements Security Solutions Subscription (1) $ 45,886 $ 60,550 $ 42,029 $ 47,124 $ 33,283 $ 35,224 Maintenance and support 4,143 42,240 5,451 42,894 5,709 45,567 Professional services and other (2) 896 5,425 921 7,087 1,494 13,703 Hardware products — 75,966 — 73,500 65 79,436 Total Revenue $ 50,925 $ 184,181 $ 48,401 $ 170,605 $ 40,551 $ 173,930 (1) Subscription includes cloud and on-premises subscription revenue, previously referred to as “subscription” and “term-based software licenses”, respectively. (2) Professional services and other includes perpetual software licenses revenue, which was approximately 1%, 2%, and 5% of total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. (In thousands) Europe, Americas Asia Pacific Total 2023 Revenue $ 111,568 $ 80,057 $ 43,481 $ 235,106 Gross profit $ 74,843 $ 53,704 $ 29,168 $ 157,715 Long-lived assets $ 5,783 $ 18,795 $ 315 $ 24,893 2022 Revenue $ 100,298 $ 77,740 $ 40,968 $ 219,006 Gross profit $ 68,040 $ 52,738 $ 27,792 $ 148,570 Long-lived assets $ 4,856 $ 15,270 $ 577 $ 20,703 2021 Revenue $ 104,878 $ 68,646 $ 40,957 $ 214,481 Gross profit $ 69,893 $ 45,747 $ 27,295 $ 142,935 Long-lived assets $ 5,978 $ 13,634 $ 342 $ 19,954 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring charge liability | The table below sets forth the changes in the carrying amount of the restructuring charge liability for the year ended December 31, 2023. (In thousands) Employee Costs Real Estate Rationalization Total Balance as of December 31, 2021 $ — $ — $ — Additions 9,482 — 9,482 Payments (5,886) — (5,886) Balance as of December 31, 2022 3,596 — 3,596 Additions 11,703 1,885 13,588 Payments (12,169) — (12,169) Balance as of December 31, 2023 $ 3,130 $ 1,885 $ 5,015 |
Description of the Company an_2
Description of the Company and Basis of Presentation (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of reportable segments | 2 | ||
Number of operating segments | 2 | ||
Loss from foreign currency transactions | $ | $ (1.1) | $ (1.9) | $ (0.8) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Letter Of Credit And Guarantees | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 0.9 | $ 1.1 |
Guarantees | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 0.1 | $ 0.1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Short-term investments | $ 0 | $ 2,328 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment, net (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leasehold improvements | ||
Property and Equipment | ||
Useful life (in years) | 10 years | 10 years |
Minimum | ||
Property and Equipment | ||
Useful life (in years) | 3 years | |
Maximum | ||
Property and Equipment | ||
Useful life (in years) | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) reporting_unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | |||
Number of reporting units | reporting_unit | 1 | ||
Goodwill impairment | $ | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Long-Lived and Intangible Assets (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Patents | ||
Impairment of Long-Lived and Intangible Assets | ||
Estimated useful lives of assets | 20 years | |
Capitalized software | ||
Impairment of Long-Lived and Intangible Assets | ||
Estimated useful lives of assets | 3 years | |
Minimum | Proprietary Technology | ||
Impairment of Long-Lived and Intangible Assets | ||
Estimated useful lives of assets | 3 years | |
Minimum | Customer relationships | ||
Impairment of Long-Lived and Intangible Assets | ||
Estimated useful lives of assets | 5 years | 5 years |
Maximum | Proprietary Technology | ||
Impairment of Long-Lived and Intangible Assets | ||
Estimated useful lives of assets | 7 years | |
Maximum | Customer relationships | ||
Impairment of Long-Lived and Intangible Assets | ||
Estimated useful lives of assets | 12 years | 12 years |
Summary of Significant Accoun_8
Summary of Significant Accounting policies - Equity Method Investments (Details) - Investment In Promon AS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Dec. 31, 2022 | Jan. 30, 2022 | |
Equity Method Investments | |||
Equity interest, amount sold | $ 18.9 | ||
Gain on sale of equity-method investment | $ 14.8 | ||
Ownership percentage | 17% |
Summary of Significant Accoun_9
Summary of Significant Accounting policies - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 12, 2022 | |
Accounting Policies [Abstract] | |||||
Amount the company can repurchase | $ 50,000 | ||||
Treasury stock, repurchased (in shares) | 2,380,834 | 2,700,000 | |||
Treasury stock, repurchased average cost per share (in dollars per share) | $ 10.50 | $ 10.62 | |||
Treasury stock, repurchased | $ 25,000 | $ 29,155 | $ 5,721 | $ 7,471 | |
Stock repurchase program, remaining authorized repurchase amount | $ 15,800 | $ 15,800 |
Summary of Significant Accou_10
Summary of Significant Accounting policies - Revenue Recognition (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Professional services and other | |||
Equity Method Investments | |||
Percent of total | 1% | 2% | 5% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Research and Development Costs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets | ||
Capitalized internal-use software | $ 10.1 | $ 4 |
Capitalized software | ||
Finite-Lived Intangible Assets | ||
Estimated useful lives of assets | 3 years |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Information - Sales Det
Segment Information - Sales Details of Customers Locations in Four Geographic Regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Geographic, Customer and Supplier Information | |||||||||||
Revenue | $ 62,928 | $ 58,838 | $ 55,733 | $ 57,607 | $ 56,622 | $ 57,147 | $ 52,790 | $ 52,447 | $ 235,106 | $ 219,006 | $ 214,481 |
Gross profit | 43,466 | 40,669 | 34,294 | 39,286 | 37,955 | 38,431 | 35,506 | 36,678 | $ 157,715 | $ 148,570 | $ 142,935 |
Gross margin | 67% | 68% | 67% | ||||||||
Operating income (loss) | 1,817 | (4,794) | (17,764) | (8,130) | (4,009) | (5,625) | (8,238) | (9,243) | $ (28,871) | $ (27,115) | $ (26,128) |
Corporate operating expenses not allocated at the segment level | $ 41,649 | $ 45,463 | $ 52,058 | $ 47,416 | $ 41,964 | $ 44,056 | $ 43,744 | $ 45,921 | 186,586 | 175,685 | 169,063 |
Interest income (expense), net | 2,090 | 595 | (1) | ||||||||
Other income (expense), net | (532) | 14,827 | (14) | ||||||||
Loss before income taxes | (27,313) | (11,693) | (26,143) | ||||||||
Amortization of intangible assets | 2,353 | 4,139 | 5,888 | ||||||||
Digital Agreements | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 50,925 | 48,401 | 40,551 | ||||||||
Gross profit | $ 37,742 | $ 37,488 | $ 29,557 | ||||||||
Gross margin | 74% | 77% | 73% | ||||||||
Operating income (loss) | $ (18,525) | $ 5,348 | $ (1,612) | ||||||||
Amortization of intangible assets | 2,300 | 2,300 | 2,500 | ||||||||
Security Solutions | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 184,181 | 170,605 | 173,930 | ||||||||
Gross profit | $ 119,974 | $ 111,082 | $ 113,378 | ||||||||
Gross margin | 65% | 65% | 65% | ||||||||
Operating income (loss) | $ 60,190 | $ 32,051 | $ 35,395 | ||||||||
Amortization of intangible assets | 0 | 1,800 | 3,300 | ||||||||
Operating Segments | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Operating income (loss) | 41,665 | 37,399 | 33,783 | ||||||||
Corporate operating expenses not allocated at the segment level | $ 70,536 | $ 64,514 | $ 59,911 |
Segment Information - Informati
Segment Information - Information Regarding Geographic Areas (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | $ 62,928 | $ 58,838 | $ 55,733 | $ 57,607 | $ 56,622 | $ 57,147 | $ 52,790 | $ 52,447 | $ 235,106 | $ 219,006 | $ 214,481 |
Subscription | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | $ 106,436 | $ 89,153 | $ 68,507 | ||||||||
Professional services and other | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Percent of total | 1% | 2% | 5% | ||||||||
Digital Agreements | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | $ 50,925 | $ 48,401 | $ 40,551 | ||||||||
Digital Agreements | Subscription | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 45,886 | 42,029 | 33,283 | ||||||||
Digital Agreements | Maintenance and support | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 4,143 | 5,451 | 5,709 | ||||||||
Digital Agreements | Professional services and other | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 896 | 921 | 1,494 | ||||||||
Digital Agreements | Hardware products | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 0 | 0 | 65 | ||||||||
Security Solutions | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 184,181 | 170,605 | 173,930 | ||||||||
Security Solutions | Subscription | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 60,550 | 47,124 | 35,224 | ||||||||
Security Solutions | Maintenance and support | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 42,240 | 42,894 | 45,567 | ||||||||
Security Solutions | Professional services and other | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | 5,425 | 7,087 | 13,703 | ||||||||
Security Solutions | Hardware products | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Revenue | $ 75,966 | $ 73,500 | $ 79,436 |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||||||||||
Revenue | $ 62,928 | $ 58,838 | $ 55,733 | $ 57,607 | $ 56,622 | $ 57,147 | $ 52,790 | $ 52,447 | $ 235,106 | $ 219,006 | $ 214,481 |
Products and Licenses transferred at a point in time | |||||||||||
Revenue | |||||||||||
Revenue | 130,848 | 121,426 | 120,358 | ||||||||
Services transferred over time | |||||||||||
Revenue | |||||||||||
Revenue | 104,258 | 97,580 | 94,123 | ||||||||
EMEA | |||||||||||
Revenue | |||||||||||
Revenue | $ 111,568 | $ 100,298 | $ 104,878 | ||||||||
Percent of total | 47% | 46% | 49% | ||||||||
Americas | |||||||||||
Revenue | |||||||||||
Revenue | $ 80,057 | $ 77,740 | $ 68,646 | ||||||||
Percent of total | 34% | 35% | 32% | ||||||||
APAC | |||||||||||
Revenue | |||||||||||
Revenue | $ 43,481 | $ 40,968 | $ 40,957 | ||||||||
Percent of total | 19% | 19% | 19% | ||||||||
Subscription | |||||||||||
Revenue | |||||||||||
Revenue | $ 106,436 | $ 89,153 | $ 68,507 | ||||||||
Maintenance and support | |||||||||||
Revenue | |||||||||||
Revenue | 46,383 | 48,345 | 51,276 | ||||||||
Professional services and other | |||||||||||
Revenue | |||||||||||
Revenue | 6,321 | 8,008 | 15,197 | ||||||||
Hardware products | |||||||||||
Revenue | |||||||||||
Revenue | $ 75,966 | $ 73,500 | $ 79,501 |
Revenue - Contract balances (De
Revenue - Contract balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract balances | ||
Receivables, inclusive of trade and unbilled | $ 64,387 | $ 65,132 |
Contract Assets (current and non-current) | 5,322 | 4,642 |
Contract Liabilities (Deferred Revenue current and non-current) | 73,483 | $ 70,907 |
Contract liabilities increase due to annual renewals | $ 62,100 | |
Minimum | ||
Contract balances | ||
The amount of time contract assets are transferred to receivables | 2 years | |
Maximum | ||
Contract balances | ||
The amount of time contract assets are transferred to receivables | 5 years |
Revenue - Performance obligatio
Revenue - Performance obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue | |
Future revenue related to current unsatisfied performance obligations | $ 92,437 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue | |
Future revenue related to current unsatisfied performance obligations | $ 49,644 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue | |
Future revenue related to current unsatisfied performance obligations | $ 23,894 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue | |
Future revenue related to current unsatisfied performance obligations | $ 14,138 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue | |
Future revenue related to current unsatisfied performance obligations | $ 4,761 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue - Costs of obtaining a
Revenue - Costs of obtaining a contract (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Amortization period | 7 years | |
Capitalized costs to obtain contracts, current | $ 3,503 | $ 2,929 |
Capitalized costs to obtain contracts, non-current | 10,766 | 10,571 |
Amortization of capitalized costs to obtain contracts | 3,122 | 2,404 |
Impairments of capitalized costs to obtain contracts | $ 0 | $ 0 |
Inventories, net - Summary of i
Inventories, net - Summary of inventories, Net (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | ||||
Component parts | $ 8,511 | $ 6,762 | ||
Work-in-process and finished goods | 7,042 | 5,292 | ||
Total | 15,553 | 12,054 | ||
Inventory [Line Items] | ||||
Inventory write-off | 143 | $ 0 | $ 0 | |
Product and license | ||||
Inventory [Line Items] | ||||
Inventory write-off | $ 1,600 | $ 1,400 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - ProvenDB - USD ($) $ in Millions | 1 Months Ended | |
Feb. 22, 2023 | Feb. 29, 2024 | |
Asset Acquisition [Line Items] | ||
Total consideration | $ 2 | |
Cash payments for acquisition | 1.8 | |
Aggregate amount held for net working capital adjustments | $ 0.2 | |
Subsequent Event | ||
Asset Acquisition [Line Items] | ||
Cash payments for acquisition | $ 0.2 |
Business Acquisitions - Allocat
Business Acquisitions - Allocation (Details) - USD ($) $ in Thousands | Feb. 22, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Acquisition [Line Items] | ||||
Goodwill | $ 93,684 | $ 90,514 | $ 96,174 | |
Digital Agreements | ||||
Asset Acquisition [Line Items] | ||||
Goodwill | $ 20,893 | $ 19,732 | $ 0 | |
ProvenDB | ||||
Asset Acquisition [Line Items] | ||||
Consideration | $ 2,000 | |||
ProvenDB | Digital Agreements | ||||
Asset Acquisition [Line Items] | ||||
Acquired technology | 1,447 | |||
Accrued wages and payroll taxes | (47) | |||
Goodwill | 600 | |||
Total net assets acquired | 2,000 | |||
Consideration | $ 2,000 |
Goodwill - Schedule of goodwill
Goodwill - Schedule of goodwill activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Net balance at beginning of period | $ 90,514,000 | $ 96,174,000 | |
Goodwill reallocation | 0 | ||
Net foreign currency translation | 2,570,000 | (5,660,000) | |
Acquisition during the period | 600,000 | ||
Net balance at end of period | 93,684,000 | 90,514,000 | $ 96,174,000 |
Goodwill impairment | 0 | 0 | 0 |
Digital Agreements | |||
Goodwill [Roll Forward] | |||
Net balance at beginning of period | 19,732,000 | 0 | |
Goodwill reallocation | 20,966,000 | ||
Net foreign currency translation | 561,000 | (1,234,000) | |
Acquisition during the period | 600,000 | ||
Net balance at end of period | 20,893,000 | 19,732,000 | 0 |
Security Solutions | |||
Goodwill [Roll Forward] | |||
Net balance at beginning of period | 70,782,000 | 0 | |
Goodwill reallocation | 75,208,000 | ||
Net foreign currency translation | 2,009,000 | (4,426,000) | |
Acquisition during the period | 0 | ||
Net balance at end of period | $ 72,791,000 | $ 70,782,000 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of intangible assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible assets, net | ||
Gross Carrying Amount | $ 91,745 | $ 89,926 |
Accumulated Amortization | 80,913 | 77,444 |
Acquired technology | ||
Intangible assets, net | ||
Gross Carrying Amount | 43,869 | 42,022 |
Accumulated Amortization | $ 42,712 | $ 41,894 |
Acquired technology | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful lives of assets | 3 years | 3 years |
Acquired technology | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful lives of assets | 7 years | 7 years |
Customer relationships | ||
Intangible assets, net | ||
Gross Carrying Amount | $ 34,773 | $ 34,386 |
Accumulated Amortization | $ 25,960 | $ 23,323 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful lives of assets | 5 years | 5 years |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful lives of assets | 12 years | 12 years |
Patents and trademarks | ||
Intangible assets, net | ||
Gross Carrying Amount | $ 13,103 | $ 13,518 |
Accumulated Amortization | $ 12,241 | $ 12,227 |
Patents and trademarks | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful lives of assets | 10 years | 10 years |
Patents and trademarks | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful lives of assets | 20 years | 20 years |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets | |||
Amortization | $ 2.8 | $ 4.1 | $ 5.9 |
Cloud Subscription Agreements | |||
Finite-Lived Intangible Assets | |||
Amortization expense directly related to generating revenue | $ 0.4 | 0 | $ 0 |
Customer relationships | Dealflo Limited | |||
Finite-Lived Intangible Assets | |||
Impairment of intangible assets | $ 3.8 |
Intangible Assets - Expected am
Intangible Assets - Expected amortization of intangible assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2024 | $ 2,839 | |
2025 | 2,806 | |
2026 | 2,398 | |
2027 | 2,124 | |
2028 | 50 | |
Thereafter | 217 | |
Subject to amortization | 10,434 | |
Trademarks | 398 | |
Total intangible assets | $ 10,832 | $ 12,482 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment | ||||||
Total | $ 32,251 | $ 32,645 | ||||
Accumulated depreciation | (13,529) | (19,964) | ||||
Property and equipment, net | 18,722 | 12,681 | ||||
Depreciation expense | 3,700 | 2,900 | $ 3,000 | |||
Write-off of property and equipment, net | $ 2,728 | 3,828 | 0 | |||
Brussels Office | Real Estate Rationalization | ||||||
Property and Equipment | ||||||
Write-off of property and equipment, net | $ 600 | |||||
Minimum | ||||||
Property and Equipment | ||||||
Useful life (in years) | 3 years | |||||
Maximum | ||||||
Property and Equipment | ||||||
Useful life (in years) | 10 years | |||||
Office equipment and software | ||||||
Property and Equipment | ||||||
Total | $ 8,574 | $ 14,451 | ||||
Write-off of property and equipment, net | $ 100 | |||||
Office equipment and software | Minimum | ||||||
Property and Equipment | ||||||
Useful life (in years) | 3 years | 3 years | ||||
Office equipment and software | Maximum | ||||||
Property and Equipment | ||||||
Useful life (in years) | 5 years | 5 years | ||||
Leasehold improvements | ||||||
Property and Equipment | ||||||
Useful life (in years) | 10 years | 10 years | ||||
Total | $ 7,459 | $ 9,927 | ||||
Write-off of property and equipment, net | $ 600 | |||||
Furniture and fixtures | ||||||
Property and Equipment | ||||||
Useful life (in years) | 5 years | 5 years | ||||
Total | $ 3,658 | $ 4,260 | ||||
Capitalized software | ||||||
Property and Equipment | ||||||
Useful life (in years) | 3 years | 3 years | ||||
Total | $ 12,560 | $ 4,007 | ||||
Write-off of property and equipment, net | $ 1,500 | |||||
Cloud Subscription Agreements | ||||||
Property and Equipment | ||||||
Depreciation expense directly related to generating revenue | $ 1,100 | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 8,496 | $ 48,623 |
Money Market Funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 8,496 | 48,623 |
Money Market Funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Money Market Funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | 0 |
Corporate Notes / Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,328 | |
Corporate Notes / Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Corporate Notes / Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,328 | |
Corporate Notes / Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,743 | |
Commercial Paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Commercial Paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,743 | |
Commercial Paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the allowance for credit losses | ||
Beginning Balance | $ 1,600 | $ 1,419 |
Provision | 286 | 517 |
Write-offs | (350) | (334) |
Net foreign currency translation | 0 | (2) |
Ending Balance | $ 1,536 | $ 1,600 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Oct. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Initial term of lease | 12 months | |||
Weighted average remaining lease term | 5 years 3 months 18 days | |||
Weighted-average discount rate | 5% | |||
Contract termination fees | $ 5,015 | $ 3,596 | $ 0 | |
Operating lease liabilities, noncurrent | 6,824 | 8,442 | ||
Term of contract | 9 years | |||
Total lease payments | $ 1,300 | |||
Real Estate Rationalization | ||||
Lessee, Lease, Description [Line Items] | ||||
Contract termination fees | 1,885 | $ 0 | $ 0 | |
Chicago Office | Real Estate Rationalization | ||||
Lessee, Lease, Description [Line Items] | ||||
Contract termination fees | 1,400 | |||
Operating lease liabilities, noncurrent | 700 | |||
Gain (loss) on rent concession and tenant improvement allowances | 300 | |||
Brussels Office | Real Estate Rationalization | ||||
Lessee, Lease, Description [Line Items] | ||||
Contract termination fees | 300 | |||
Gain (loss) on rent concession and tenant improvement allowances | $ (100) | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal terms to extend the lease | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal terms to extend the lease | 5 years |
Leases - Operating lease costs
Leases - Operating lease costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Total net operating lease costs | $ 2,770 | $ 3,297 | $ 4,069 |
Building rent | |||
Lessee, Lease, Description [Line Items] | |||
Total net operating lease costs | 1,638 | 2,117 | 2,564 |
Automobile rentals | |||
Lessee, Lease, Description [Line Items] | |||
Total net operating lease costs | $ 1,132 | $ 1,180 | $ 1,505 |
Leases - Supplemental consolida
Leases - Supplemental consolidated balance sheet information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Supplemental unaudited consolidated balance sheet information | ||
Operating lease right-of-use assets | $ 6,171 | $ 8,022 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued expenses | Other accrued expenses |
Operating lease liabilities, current | $ 2,027 | $ 2,258 |
Operating lease liabilities, noncurrent | 6,110 | 8,442 |
Accrued early lease termination fees, non current | 714 | 0 |
Total lease liabilities | $ 8,851 | $ 10,700 |
Leases - Supplemental consoli_2
Leases - Supplemental consolidated cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating cash payments from operating leases | $ 2,836 | $ 3,346 | $ 3,630 |
ROU assets obtained in exchange for new operating lease liabilities | $ 2,650 | $ 1,172 | $ 589 |
Leases - Maturities of our oper
Leases - Maturities of our operating leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Maturities of operating leases | ||
2024 | $ 2,378 | |
2025 | 1,608 | |
2026 | 1,515 | |
2027 | 1,327 | |
2028 | 1,218 | |
Later years | 1,369 | |
Less imputed interest | (1,278) | |
Accrued lease termination fees | 714 | |
Total lease liabilities | $ 8,851 | $ 10,700 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (unaudited) - Schedule of quarterly results of operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 62,928 | $ 58,838 | $ 55,733 | $ 57,607 | $ 56,622 | $ 57,147 | $ 52,790 | $ 52,447 | $ 235,106 | $ 219,006 | $ 214,481 |
Gross profit | 43,466 | 40,669 | 34,294 | 39,286 | 37,955 | 38,431 | 35,506 | 36,678 | 157,715 | 148,570 | 142,935 |
Operating costs | 41,649 | 45,463 | 52,058 | 47,416 | 41,964 | 44,056 | 43,744 | 45,921 | 186,586 | 175,685 | 169,063 |
Operating income (loss) | 1,817 | (4,794) | (17,764) | (8,130) | (4,009) | (5,625) | (8,238) | (9,243) | (28,871) | (27,115) | (26,128) |
Provision (benefit) for income taxes | 917 | 279 | 601 | 689 | 496 | 600 | 472 | 1,173 | |||
Net income (loss) | $ 441 | $ (4,133) | $ (17,751) | $ (8,356) | $ (3,097) | $ (7,201) | $ (9,350) | $ 5,214 | $ (29,799) | $ (14,434) | $ (30,584) |
Net income/(loss) per share: | |||||||||||
Basic (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.44) | $ (0.21) | $ (0.08) | $ (0.18) | $ (0.23) | $ 0.13 | $ (0.74) | $ (0.36) | $ (0.77) |
Diluted (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.44) | $ (0.21) | $ (0.08) | $ (0.18) | $ (0.23) | $ 0.13 | $ (0.74) | $ (0.36) | $ (0.77) |
Income Taxes - Income from cont
Income Taxes - Income from continuing operations before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (13,526) | $ (9,569) | $ (15,056) |
Non-U.S. | (13,787) | (2,124) | (11,087) |
Loss before income taxes | $ (27,313) | $ (11,693) | $ (26,143) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Intercompany dividend income | $ 0 | $ 0 | $ 0 | |
Statutory tax rate percentage | 21% | 21% | 21% | |
Deferred tax assets, valuation allowance | $ 47,844 | $ 39,177 | ||
Increase in valuation allowance | 8,500 | 4,400 | ||
Accrued interest or penalties for income tax liabilities | 100 | 100 | $ 100 | |
Unrecognized tax benefits | 0 | $ 0 | $ 512 | $ 500 |
Uncertain tax positions that would impact of effective tax rate | $ 0 |
Income Taxes - Provision for in
Income Taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 2 | $ 122 | $ (11) |
State | 54 | 32 | (23) |
Foreign | 2,473 | 1,665 | 2,478 |
Total current | 2,529 | 1,819 | 2,444 |
Deferred: | |||
Federal | 361 | (349) | 3,774 |
State | (47) | 35 | (3) |
Foreign | (357) | 1,236 | (1,774) |
Total deferred | (43) | 922 | 1,997 |
Total | $ 2,486 | $ 2,741 | $ 4,441 |
Income Taxes - Statutory tax ra
Income Taxes - Statutory tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expected tax at statutory rate | $ (5,736) | $ (2,456) | $ (5,490) |
Foreign taxes at other rates | (213) | 3,373 | 307 |
Valuation allowance changes | 8,513 | 4,370 | 15,019 |
Global intangible low-taxed income inclusion | 0 | 0 | 0 |
State income taxes, net of federal benefit | (170) | (322) | (811) |
Uncertain tax positions | 0 | (515) | 12 |
Research credits | (633) | (2,568) | (3,466) |
Disallowed expenses and other | 725 | 859 | (1,130) |
Total | $ 2,486 | $ 2,741 | $ 4,441 |
Income Taxes - Deferred income
Income Taxes - Deferred income tax balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Stock and long-term compensation plans | $ 1,515 | $ 923 |
Foreign NOL & other carryforwards | 45,390 | 41,154 |
U.S. and state NOL carryforwards | 7,866 | 5,654 |
Deferred revenue | 650 | 863 |
Pension liability | 531 | 498 |
Amortization and depreciation | 1,626 | 526 |
Lease liability | 2,383 | 2,641 |
Capitalized research and development | 446 | 487 |
Accrued expenses and other | 948 | 1,427 |
Total gross deferred tax assets | 61,355 | 54,173 |
Less: Valuation allowance | (47,844) | (39,177) |
Net deferred income tax assets | 13,511 | 14,996 |
Deferred tax liabilities: | ||
Accruals | 367 | 319 |
Tax on unremitted foreign earnings | 1,164 | 1,249 |
Right of use asset | 2,095 | 2,531 |
Intangible assets | 2,217 | 3,009 |
Tax on credits | 3,689 | 3,736 |
Contract acquisition costs | 3,325 | 3,448 |
Deferred tax liabilities | 12,857 | 14,292 |
Deferred tax assets | $ 654 | $ 704 |
Income Taxes - Summary of net o
Income Taxes - Summary of net operating loss carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | $ 182,300 |
Total NOL and Other Carryforwards | 299,300 |
Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Tax credit carryforward, other | 117,000 |
Capital Loss Carryforward | |
Deferred tax assets, operating loss, and other carryforwards | |
Tax credit carryforward, other | 382 |
Canada | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | 44,461 |
Canada | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Tax credit carryforward, other | $ 44,357 |
Canada | Earliest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2032 |
Canada | Latest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2043 |
United States | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | $ 27,512 |
United States | Earliest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2025 |
United States | Latest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2043 |
United Kingdom | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | $ 10,543 |
Switzerland | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | $ 20,127 |
Switzerland | Earliest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2028 |
Switzerland | Latest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2029 |
Other foreign | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | $ 5,779 |
Canada province | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | 43,352 |
Canada province | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Tax credit carryforward, other | $ 58,488 |
Canada province | Earliest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2032 |
Canada province | Latest Tax Year | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2043 |
U.S. states | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | $ 30,526 |
United States credit | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | 1,277 |
Canada credits | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Tax credit carryforward, other | $ 8,819 |
Canada credits | Earliest Tax Year | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Tax credit carryforward expiration | 2033 |
Canada credits | Latest Tax Year | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Tax credit carryforward expiration | 2043 |
Canada province credits | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Foreign and state, net operating loss (NOL) carryforwards | $ 3,677 |
Canada province credits | Earliest Tax Year | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2036 |
Canada province credits | Latest Tax Year | Other Carryforwards | |
Deferred tax assets, operating loss, and other carryforwards | |
Operating loss carryforward expiration | 2043 |
Income Taxes - Valuation allowa
Income Taxes - Valuation allowances, uncertain tax positions and accrued interest and penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in reserve for uncertain tax benefits | |||
Reserve at beginning of year | $ 0 | $ 512 | $ 500 |
Increases related to prior year tax positions | 0 | 0 | 12 |
Decreases related to prior year tax positions | 0 | (512) | 0 |
Settlement | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 512 |
Income Taxes - Summary of incom
Income Taxes - Summary of income tax examinations (Details) - Earliest Tax Year | 12 Months Ended |
Dec. 31, 2023 | |
Australia | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2015 |
Austria | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2017 |
Belgium | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2019 |
Canada | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2019 |
Netherlands | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2018 |
Singapore | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2018 |
Switzerland | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2019 |
United Kingdom | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2021 |
United States | |
Earliest tax year subject to audit, by jurisdiction | |
Earliest tax year subject to audit | 2017 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 14,562,000 | $ 8,813,000 | $ 5,202,000 |
Unamortized future compensation expense | 1,400,000 | ||
Restricted Stock, subject to time-based criteria | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding award (in shares) | 0 | ||
Compensation expense | 0 | $ 100,000 | 300,000 |
Tax benefit related to compensation expense | 0 | $ 100,000 | 100,000 |
Unamortized future compensation expense | $ 0 | ||
Restricted Stock, subject to time-based criteria | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 25% | ||
Time-Based Restricted Stock Units settled in stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding award (in shares) | 1,813,000 | 1,733,000 | |
Compensation expense | $ 10,900,000 | $ 6,900,000 | 3,700,000 |
Tax benefit related to compensation expense | 500,000 | $ 200,000 | 100,000 |
Unamortized future compensation expense | $ 18,100,000 | ||
Time-Based Restricted Stock Units settled in stock | Minimum | Officer | Share-based Payment Arrangement, Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
Time-Based Restricted Stock Units settled in stock | Maximum | Officer | Share-based Payment Arrangement, Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Restricted Stock, subject to performance criteria | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding award (in shares) | 966,000 | 316,000 | |
Unamortized future compensation expense | $ 1,700,000 | ||
Restricted Stock, subject to performance criteria | Tranche Two | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 1 year | ||
Restricted Stock, subject to performance criteria | Tranche Two | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Performance-Based Restricted Stock, earned | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 2,800,000 | $ 1,600,000 | 300,000 |
Tax benefit related to compensation expense | $ 100,000 | $ 100,000 | 100,000 |
Performance-Based Restricted Stock, earned | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 1 year | ||
Performance-Based Restricted Stock, earned | Tranche Two | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 1 year | ||
Performance-Based Restricted Stock, earned | Tranche Two | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Market-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding award (in shares) | 251,000 | 257,000 | |
Compensation expense | $ 600,000 | $ 500,000 | 100,000 |
Tax benefit related to compensation expense | $ 100,000 | $ 100,000 | $ 0 |
Market-Based Restricted Stock Units | Tranche Two | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Performance period | 3 years | ||
Market-Based Restricted Stock Units | Tranche Two | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Performance period | 4 years | ||
2019 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation awards issued (in shares) | 500,000 | ||
Percentage of shares issued and outstanding | 1% |
Stock Based Compensation - Allo
Stock Based Compensation - Allocation of compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation | $ 14,252 | $ 8,642 | $ 4,354 |
Other long-term incentive plan compensation | 310 | 171 | 848 |
Total compensation | $ 14,562 | $ 8,813 | $ 5,202 |
Stock Compensation Plans - Time
Stock Compensation Plans - Time-based restricted stock unit activity (Details) - Time-Based Restricted Stock Units settled in stock - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Beginning balance (in shares) | 1,733 | |
Shares vested (in shares) | (641) | |
Shares awarded (in shares) | 1,097 | |
Shares forfeited (in shares) | (376) | |
Ending balance (in shares) | 1,813 | 1,733 |
Weighted- average remaining term (years) | ||
Outstanding (years) | 1 year 10 months 6 days | 2 years 4 months 28 days |
Weighted- average grant date fair value | ||
Beginning balance (in dollars per share) | $ 13.08 | |
Shares vested (in dollars per share) | 13.49 | |
Shares awarded (per share) | 13.14 | |
Shares forfeited (in dollars per share) | 13.04 | |
Ending balance (in dollars per share) | $ 12.98 | $ 13.08 |
Stock Compensation Plans - Perf
Stock Compensation Plans - Performance-based restricted stock activity (Details) - Restricted Stock, subject to performance criteria - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Beginning balance (in shares) | 316 | |
Shares vested (in shares) | (95) | |
Shares awarded (in shares) | 1,003 | |
Shares forfeited (in shares) | (258) | |
Ending balance (in shares) | 966 | 316 |
Weighted- average remaining term (years) | ||
Outstanding (years) | 10 months 2 days | 1 year 4 months 17 days |
Weighted- average grant date fair value | ||
Beginning balance (in dollars per share) | $ 12.96 | |
Shares vested (in dollars per share) | 13.09 | |
Shares awarded (per share) | 14.25 | |
Shares forfeited (in dollars per share) | 14.09 | |
Ending balance (in dollars per share) | $ 13.99 | $ 12.96 |
Stock Compensation Plans - Mark
Stock Compensation Plans - Market and service restricted stock units (Details) - Market-Based Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Beginning balance (in shares) | 257 | |
Shares vested (in shares) | (1) | |
Shares awarded (in shares) | 0 | |
Shares forfeited (in shares) | (5) | |
Ending balance (in shares) | 251 | 257 |
Weighted- average remaining term (years) | ||
Outstanding (years) | 1 year 10 months 20 days | 2 years 9 months |
Weighted- average grant date fair value | ||
Beginning balance (in dollars per share) | $ 12.17 | |
Shares vested (in dollars per share) | 33.31 | |
Shares awarded (per share) | 0 | |
Shares forfeited (in dollars per share) | 37.93 | |
Ending balance (in dollars per share) | $ 11.58 | $ 12.17 |
Earnings per Common Share - Det
Earnings per Common Share - Details of earnings per share calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ 441 | $ (4,133) | $ (17,751) | $ (8,356) | $ (3,097) | $ (7,201) | $ (9,350) | $ 5,214 | $ (29,799) | $ (14,434) | $ (30,584) |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 40,193 | 40,143 | 39,614 | ||||||||
Incremental shares with dilutive effect: | |||||||||||
Restricted stock awards (in shares) | 0 | 0 | 0 | ||||||||
Diluted (in shares) | 40,193 | 40,143 | 39,614 | ||||||||
Basic (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.44) | $ (0.21) | $ (0.08) | $ (0.18) | $ (0.23) | $ 0.13 | $ (0.74) | $ (0.36) | $ (0.77) |
Diluted (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.44) | $ (0.21) | $ (0.08) | $ (0.18) | $ (0.23) | $ 0.13 | $ (0.74) | $ (0.36) | $ (0.77) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) age | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
UNITED STATES | |||
Defined contribution pension plan | |||
Employer match, contributions | $ 0.6 | $ 0.5 | $ 0.2 |
Foreign Plan | |||
Defined contribution pension plan | |||
Required rate of return under Belgian law, employer contributions | 1.80% | ||
Required rate of return under Belgian law, employee contributions | 1.80% | ||
Benefit rights vests upon statutory retirement age | age | 62 | ||
Accumulated benefit obligation | $ 17.8 | $ 16.8 | |
Expected employer contributions over the next twelve months | $ 0.8 |
Employee Benefit Plans - Net pe
Employee Benefit Plans - Net periodic pension costs (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost (gross) | $ 879 | $ 1,107 | $ 1,587 |
Interest cost | 560 | 138 | 53 |
Expected return on plan assets | (358) | (288) | (302) |
Amortization of unrecognized actuarial gain | (265) | (90) | (12) |
Net periodic pension cost | $ 816 | $ 867 | $ 1,326 |
Employee Benefit Plans - Net un
Employee Benefit Plans - Net unfunded status (Details) - Foreign Plan - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 16,460 | $ 15,415 | $ 17,394 |
Projected benefit obligation | (19,014) | (17,715) | $ (24,855) |
Net unfunded benefit obligation | $ (2,554) | $ (2,300) |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in fair value of plan assets (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Change in fair value of plan assets | ||
Fair value of plan assets, beginning balance | $ 15,415 | $ 17,394 |
Employee contributions | 406 | 437 |
Actual return on plan assets | 461 | (288) |
Benefits (paid), net of transfers | (1,487) | (2,361) |
Employer contributions | 864 | 911 |
Foreign exchange adjustment | 801 | (678) |
Fair value of plan assets, ending balance | $ 16,460 | $ 15,415 |
Employee Benefit Plans - Chan_2
Employee Benefit Plans - Change in benefit obligation (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in benefit obligations | |||
Benefit obligations, beginning balance | $ 17,715 | $ 24,855 | |
Gross service cost | 879 | 1,107 | $ 1,587 |
Interest cost | 560 | 138 | 53 |
Employee contributions | 406 | 437 | |
Actuarial (gains)/losses | 313 | (4,676) | |
Benefits (paid), net of transfers | (1,487) | (2,361) | |
Curtailments & settlements | (285) | (799) | |
Foreign exchange adjustment | 913 | (986) | |
Benefit obligations, ending balance | $ 19,014 | $ 17,715 | $ 24,855 |
Employee Benefit Plans - Actuar
Employee Benefit Plans - Actuarial assumptions (Details) - Foreign Plan | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | 1.40% | 2.15% |
Inflation | 1.25% | 1.25% |
Expected return on plan assets | 2% | 2% |
Rate of salary increases | 2.25% | 2.25% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | 4.10% | 3.50% |
Inflation | 2.20% | 2.20% |
Expected return on plan assets | 2.50% | 2.50% |
Rate of salary increases | 3.20% | 3.20% |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected future pension benefit payments (Details) - Foreign Plan $ in Thousands | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 479 |
2025 | 558 |
2026 | 1,146 |
2027 | 417 |
2028 | 503 |
Beyond | $ 5,681 |
Geographic, Customer and Supp_3
Geographic, Customer and Supplier Information - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 factory customer region | Dec. 31, 2022 customer | Dec. 31, 2021 customer | |
Major customers | |||
Number of geographical regions | region | 3 | ||
China | |||
Major customers | |||
Number of independent factories | 4 | ||
Romania | |||
Major customers | |||
Number of independent factories | 1 | ||
Revenue Benchmark | Customer Concentration Risk | |||
Major customers | |||
Number of customers | customer | 10 | 10 | 10 |
Revenue Benchmark | Customer Concentration Risk | Top Ten Customers | |||
Major customers | |||
Percentage of revenue contributed by customer | 22% | 23% | 22% |
Geographic, Customer and Supp_4
Geographic, Customer and Supplier Information - Sales details of customers locations in four geographic regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Geographic, Customer and Supplier Information | |||||||||||
Total revenue | $ 62,928 | $ 58,838 | $ 55,733 | $ 57,607 | $ 56,622 | $ 57,147 | $ 52,790 | $ 52,447 | $ 235,106 | $ 219,006 | $ 214,481 |
Gross margin | 43,466 | $ 40,669 | $ 34,294 | $ 39,286 | 37,955 | $ 38,431 | $ 35,506 | $ 36,678 | 157,715 | 148,570 | 142,935 |
Long-lived assets | 24,893 | 20,703 | 24,893 | 20,703 | 19,954 | ||||||
EMEA | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Total revenue | 111,568 | 100,298 | 104,878 | ||||||||
Americas | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Total revenue | 80,057 | 77,740 | 68,646 | ||||||||
APAC | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Total revenue | 43,481 | 40,968 | 40,957 | ||||||||
Operating Segments | EMEA | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Total revenue | 111,568 | 100,298 | 104,878 | ||||||||
Gross margin | 74,843 | 68,040 | 69,893 | ||||||||
Long-lived assets | 5,783 | 4,856 | 5,783 | 4,856 | 5,978 | ||||||
Operating Segments | Americas | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Total revenue | 80,057 | 77,740 | 68,646 | ||||||||
Gross margin | 53,704 | 52,738 | 45,747 | ||||||||
Long-lived assets | 18,795 | 15,270 | 18,795 | 15,270 | 13,634 | ||||||
Operating Segments | APAC | |||||||||||
Geographic, Customer and Supplier Information | |||||||||||
Total revenue | 43,481 | 40,968 | 40,957 | ||||||||
Gross margin | 29,168 | 27,792 | 27,295 | ||||||||
Long-lived assets | $ 315 | $ 577 | $ 315 | $ 577 | $ 342 |
Commitments and Contingencies -
Commitments and Contingencies - Rent expense and purchase obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Rent expense and inventory purchase commitments | |
Liabilities accrued | $ 1.2 |
Other software agreements | |
Rent expense and inventory purchase commitments | |
Purchase obligations will be used in the next one to three years | $ 6.3 |
Other software agreements | Minimum | |
Rent expense and inventory purchase commitments | |
Long-term purchase commitment, period | 1 year |
Other software agreements | Maximum | |
Rent expense and inventory purchase commitments | |
Long-term purchase commitment, period | 3 years |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other related charges | $ 17,311 | $ 13,310 | $ 0 | ||
Contract termination fees | 5,015 | 3,596 | 0 | ||
Write-off of property and equipment, net | 2,728 | 3,828 | 0 | ||
Capitalized software | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Write-off of property and equipment, net | $ 1,500 | ||||
Dealflo Limited | Customer relationships | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of intangible assets | 3,800 | ||||
Employee Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 11,700 | 9,500 | |||
Number of employees eliminated | employee | 270 | ||||
Restructuring liability, current | $ 2,600 | ||||
Restructuring liability, noncurrent | 500 | ||||
Contract termination fees | 3,130 | 3,596 | 0 | ||
Real Estate Rationalization | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability, current | 1,200 | ||||
Restructuring liability, noncurrent | 700 | ||||
Contract termination fees | 1,885 | 0 | $ 0 | ||
Real Estate Rationalization | Chicago Office | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Contract termination fees | 1,400 | ||||
Gain (loss) on rent concession and tenant improvement allowances | 300 | ||||
Write-off of property and equipment, net | $ 700 | ||||
Real Estate Rationalization | Brussels Office | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Contract termination fees | 300 | ||||
Gain (loss) on rent concession and tenant improvement allowances | (100) | ||||
Write-off of property and equipment, net | $ 600 | ||||
Vendor Rationalization | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for restructuring | 1,200 | ||||
Settlement Costs | Brussels Office | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability, noncurrent | 200 | ||||
Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other related charges | $ 17,300 | $ 13,300 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Schedule of restructuring charge liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 3,596 | $ 0 |
Additions | 13,588 | 9,482 |
Payments | (12,169) | (5,886) |
Ending balance | 5,015 | 3,596 |
Employee Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 3,596 | 0 |
Additions | 11,703 | 9,482 |
Payments | (12,169) | (5,886) |
Ending balance | 3,130 | 3,596 |
Real Estate Rationalization | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | 0 |
Additions | 1,885 | 0 |
Payments | 0 | 0 |
Ending balance | $ 1,885 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party | |||||||||||
Revenue | $ 62,928 | $ 58,838 | $ 55,733 | $ 57,607 | $ 56,622 | $ 57,147 | $ 52,790 | $ 52,447 | $ 235,106 | $ 219,006 | $ 214,481 |
Total cost of goods sold | 77,391 | 70,436 | 71,546 | ||||||||
Board Of Directors | |||||||||||
Related Party | |||||||||||
Revenue | 1,100 | 700 | $ 300 | ||||||||
Related party receivable | 1,100 | 1,000 | 1,100 | 1,000 | |||||||
Total cost of goods sold | 1,300 | 1,200 | |||||||||
Related party payable | $ 200 | $ 200 | $ 200 | $ 200 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Employee Severance | President And Chief Executive Officer | |
Subsequent Event [Line Items] | |
Accrued severance and other benefits | $ 1.2 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in allowance for doubtful accounts for trade receivables | |||
Beginning Balance | $ 1,600 | $ 1,419 | $ 4,135 |
Provision for Bad Debts | 286 | 517 | (16) |
Chargeoffs | (350) | (334) | (2,689) |
Foreign Currency Translation | 0 | (2) | (11) |
Ending Balance | $ 1,536 | $ 1,600 | $ 1,419 |