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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)202320222021
Digital Agreements
Revenue$50,925 $48,401 $40,551 
Gross profit$37,742 $37,488 $29,557 
Gross margin74 %77 %73 %
Operating (loss) income (1)$(18,525)$5,348 $(1,612)
Security Solutions
Revenue$184,181 $170,605 $173,930 
Gross profit$119,974 $111,082 $113,378 
Gross margin65 %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 margin67 %68 %67 %
Statements of operations reconciliation:
Segment operating income$41,665 $37,399 $33,783 
Corporate operating expenses not allocated at the segment level70,536 64,514 59,911 
Operating loss$(28,871)$(27,115)$(26,128)
Interest income, net2,090 595 (1)
Other income (expense), net(532)14,827 (14)
Loss before income taxes$(27,313)$(11,693)$(26,143)
(1) Digital Agreements operating income includes $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,
202320222021
(In thousands)Digital AgreementsSecurity SolutionsDigital AgreementsSecurity SolutionsDigital AgreementsSecurity Solutions
Subscription (1)$45,886 $60,550 $42,029 $47,124 $33,283 $35,224 
Maintenance and support4,143 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.

    The Company allocates goodwill by reporting unit, in accordance with ASC 350 – 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.
Geographic, Customer and Supplier Information
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,
Middle East,
Africa (EMEA)		AmericasAsia PacificTotal
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.