Revenue Performance - Revenue for Q4 2024 was $74.2 million, a 5% increase from $70.4 million in Q4 2023[6] - Full-year 2024 revenue reached $261.7 million, a 4% increase from $251.7 million in 2023[6] - Enterprise revenue grew 8% year-over-year, while service provider revenue increased by 4%[6] Profitability Metrics - GAAP net income for Q4 2024 was $18.3 million, representing 24.7% of revenue, compared to $17.9 million (25.4% of revenue) in Q4 2023[6] - Non-GAAP net income for Q4 2024 was $23.0 million (30.9% of revenue), up from $18.5 million (26.2% of revenue) in Q4 2023[6] - Adjusted EBITDA for Q4 2024 was $27.3 million, representing 36.8% of revenue, compared to $24.0 million (34.0% of revenue) in Q4 2023[6] - GAAP net income for Q4 2024 was $18,301, compared to $17,917 in Q4 2023, representing a 2.1% increase[20] - Non-GAAP net income for Q4 2024 was $22,955, up from $18,467 in Q4 2023, reflecting a 24.0% growth[20] - Adjusted EBITDA for the year ended December 31, 2024, was $74,532 million, up from $71,173 million in 2023, reflecting an adjusted EBITDA margin of 28.5%[31] - GAAP income from operations for the year ended December 31, 2024, was $43,968 million, compared to $38,648 million in 2023, with an operating margin of 16.8%[29] - EBITDA for the year ended December 31, 2024, was $55,261 million, an increase from $47,994 million in 2023[31] Expenses and Liabilities - GAAP total operating expenses for Q4 2024 were $40,910, compared to $39,137 in Q4 2023, a 4.5% increase[27] - Non-GAAP total operating expenses for 2024 were $149,149, up from $143,770 in 2023, reflecting a 3.7% increase[27] - Total liabilities rose to $200,986 in 2024 from $181,933 in 2023, an increase of 10.5%[22] - Stock-based compensation and related payroll tax for Q4 2024 amounted to $4,811 million, significantly higher than $2,922 million in Q4 2023[29] - The company reported a workforce reduction expense of $1,075 million in 2024, compared to $4,298 million in the previous year[29] Cash and Investments - The company completed Q4 2024 with cash and investments of $195.6 million, up from $159.3 million at the end of 2023[6] - Cash flows from operating activities for 2024 were $90,492, significantly higher than $44,514 in 2023, representing a 103.5% increase[24] Assets and Equity - Total current assets increased to $307,288 in 2024 from $271,824 in 2023, marking a 13.0% rise[22] - Total stockholders' equity increased to $231,829 in 2024 from $207,876 in 2023, a growth of 11.5%[22] Future Outlook - The company plans to launch new security solutions in 2025, leveraging several years of R&D investment[5] - A10 Networks anticipates ongoing normalization of spending from service provider customers in 2025[5] Gross Profit - GAAP gross profit for 2024 was $210,277, compared to $203,738 in 2023, indicating a 3.0% increase[25] - Non-GAAP gross profit for 2024 reached $212,388, up from $205,597 in 2023, a growth of 3.4%[25] Operating Margins - The company experienced a decrease in GAAP operating margin from 25.6% in Q4 2023 to 24.8% in Q4 2024[29] - Non-GAAP operating margin for the year ended December 31, 2024, was 24.2%, slightly down from 24.6% in 2023[29] - Non-GAAP operating income reached $24,282 million in Q4 2024, compared to $21,428 million in Q4 2023, with a non-GAAP operating margin of 32.7%[29] Impairment Expenses - The company did not incur any impairment expenses in 2024, contrasting with $2,975 million in 2023[29]

Financial Data and Key Metrics Changes - Third quarter revenue was $66.7 million, an increase of 15.5% year-over-year [21] - Year-to-date revenue was $187.5 million, up 3.4% year-over-year [25] - Non-GAAP net income for the quarter was $15.9 million or $0.21 per diluted share, compared to $12 million or $0.16 per diluted share in the year-ago quarter [24] - Gross margin in the third quarter was 81.3%, in line with the target range of 80% to 82% [23] - Adjusted EBITDA was $17.8 million for the quarter, reflecting 26.7% of revenue [23] Business Line Data and Key Metrics Changes - Enterprise revenue increased 5% year-to-date and is up 9% on a trailing 12-month basis [9] - Service provider revenue was up 2% year-to-date after being down in the first half of 2024 [11] - Security-led revenue increased 10% year-to-date [12][49] Market Data and Key Metrics Changes - North American service provider segment remains volatile, but overall trends are encouraging [11] - Deferred revenue increased 6%, demonstrating stronger product sales and continued demand for cyber-led solutions [22] Company Strategy and Development Direction - Company focuses on diversification to drive predictable performance and navigate challenging conditions [10] - Plans to expand security-led offerings and integrate AI capabilities throughout the portfolio [13][16] - Aiming to create integrated solutions that reduce cybersecurity risk and improve user experience [15] Management Comments on Operating Environment and Future Outlook - Management is cautiously optimistic that the worst is behind in the North American service provider market [12] - Investments in R&D are expected to enhance growth profile and lead to additional solutions [30] - Company is confident in its strategy and ability to translate incremental revenue into higher profitability [30] Other Important Information - Cash generated from operations was $21 million in the quarter, keeping the company on track for full-year targets [20] - The Board approved a quarterly cash dividend of $0.06 per share [29] - Company continues to target gross margins of 80% to 82% and adjusted EBITDA margins of 26% to 28% on a full-year basis [29] Q&A Session Summary Question: Demand outlook for service provider segment - Management expects some level of volatility but overall trend is improving and stabilizing [34] Question: Insights on enterprise revenue growth - Focus is on large enterprises, and the dollar-based growth is expected to continue [37][38] Question: Accounts receivable increase and management plan - Management is not concerned with the trend, attributing it to timing of the year [40][42] Question: Clarification on service provider volatility and optimism - North American business is volatile, but overall trends and customer conversations are more favorable than before [44][46] Question: Future expectations for security-led business growth - Near-term expectations for security-led growth are between 10% to 12% [51] Question: Strategic alternatives regarding M&A - Company is actively exploring scalable assets and partnerships to accelerate growth [52] Question: Margin profile and new solutions - Company aims to maintain gross margins of 80% to 82% while expanding product categories [55] Question: Cash position and buyback strategy - Company prioritizes reinvestment in business but remains open to opportunistic buybacks [58][59]

Core Viewpoint - A10 Networks reported quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.22 per share, but showing an improvement from $0.16 per share a year ago [1][2] Financial Performance - The company posted revenues of $66.72 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.99% and increasing from $57.78 million year-over-year [2] - Over the last four quarters, A10 Networks has exceeded consensus revenue estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $69.86 million, and for the current fiscal year, it is $0.81 on revenues of $256.7 million [7] Stock Performance - A10 Networks shares have increased approximately 15.7% since the beginning of the year, compared to the S&P 500's gain of 24.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Communication - Network Software industry is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact A10 Networks' stock performance [5]

Financial Performance - Total net revenue for the three months ended September 30, 2024, was $66.721 million, a 15.5% increase from $57.775 million in the same period of 2023[14]. - Net income for the three months ended September 30, 2024, was $12.637 million, compared to $6.469 million for the same period in 2023, representing a 95.5% increase[14]. - Gross profit for the nine months ended September 30, 2024, was $150.971 million, up from $146.595 million in the same period of 2023, reflecting a growth of 3.2%[14]. - Basic net income per share for the three months ended September 30, 2024, was $0.17, compared to $0.09 for the same period in 2023, marking an increase of 88.9%[14]. - Total revenue for the three months ended September 30, 2024, was $66.721 million, a 15.5% increase from $57.775 million in the same period of 2023[97]. - Total revenue for the nine months ended September 30, 2024, was $187.492 million, compared to $181.283 million for the same period in 2023, reflecting a growth of 3.7%[97]. - Net income for the nine months ended September 30, 2024, was $31,839 million, compared to $22,053 million for the same period in 2023, representing a 44% increase[23]. Expenses and Costs - Operating expenses for the three months ended September 30, 2024, totaled $43.239 million, slightly down from $44.557 million in the same period of 2023, indicating a decrease of 2.9%[14]. - Total cost of net revenue for the three months ended September 30, 2024, was $13.039 million, an increase from $11.009 million in the same period of 2023, representing a rise of 18.4%[14]. - Research and development expenses for the three months ended September 30, 2024, were $15,734 million, down from $17,620 million in the same period last year, a decrease of 10.7%[14]. - Stock-based compensation expense for the three months ended September 30, 2024, was $4,180 thousand, compared to $3,966 thousand for the same period in 2023[77]. - Stock-based compensation expense for the nine months ended September 30, 2024, was $12,284 million, up from $11,180 million in 2023, which is a 10% increase[23]. Cash Flow and Equity - Cash provided by operating activities for the nine months ended September 30, 2024, was $64,782 thousand, an increase of 55% from $41,783 thousand in the same period of 2023[23]. - The company reported a net cash used in financing activities of $35,771 thousand for the nine months ended September 30, 2024, compared to $19,045 thousand in the same period of 2023, indicating an increase in cash outflow[23]. - Total stockholders' equity increased to $196,922 thousand as of September 30, 2023, up from $192,938 thousand at June 30, 2023, reflecting a growth of approximately 1.5%[18]. - Total stockholders' equity as of September 30, 2024, was $217,270 million, compared to $207,876 million at the end of 2023, reflecting a growth of 4%[21]. - The company’s cash and cash equivalents decreased to $78,063 thousand at the end of the period from $104,152 thousand at the beginning, representing a decrease of approximately 25%[23]. Customer and Market Information - The company serves over 7000 customers globally, including large enterprises, communications, cloud and web service providers, and government organizations[26]. - The company’s customer base spans various industries, including telecommunications, technology, industrial, retail, financial, gaming, education, and government[29]. - As of September 30, 2024, one customer accounted for 41% of total gross accounts receivable, up from 19% as of December 31, 2023[41]. - The Americas region generated $34.3 million in revenue for the three months ended September 30, 2024, compared to $25.8 million in the same period of 2023, a growth of 32.5%[94]. Future Outlook and Plans - The company plans to introduce new products and continue investing in sales, marketing, and research and development[5]. - Future expectations include maintaining profitability while managing growth and potential acquisitions of complementary companies[5]. - The company expects to continue expanding its market presence and enhancing its product offerings to address evolving cybersecurity challenges[26]. Deferred Revenue and Liabilities - Deferred revenue as of September 30, 2024, was $144,219,000, up from $141,334,000 as of December 31, 2023[69]. - Deferred revenue, current, increased to $89.509 million as of September 30, 2024, compared to $82.657 million as of December 31, 2023, representing an increase of 8.9%[98]. - Total accrued liabilities increased to $29,985,000 as of September 30, 2024, from $21,388,000 as of December 31, 2023[68]. Marketable Securities and Investments - The company holds marketable securities with a fair value of $104,043,000 as of September 30, 2024, compared to $62,056,000 as of December 31, 2023[52]. - The total allowance for credit losses increased to $1,171 thousand as of September 30, 2024, from $405 thousand as of December 31, 2023, marking a significant increase of 189.9%[62]. - The company recorded foreign exchange related net losses of $32 thousand for the three months ended September 30, 2024, compared to net gains of $300 thousand for the same period in 2023[59].

Financial Performance - Revenue for Q3 2024 was $66.7 million, a 15.5% increase from $57.8 million in Q3 2023[2] - GAAP net income for Q3 2024 was $12.6 million, representing 18.9% of revenue, compared to $6.5 million (11.2% of revenue) in Q3 2023[3] - Non-GAAP net income for Q3 2024 was $15.9 million (23.9% of revenue), up from $12.0 million (20.8% of revenue) in Q3 2023[3] - GAAP net income for Q3 2024 was $12,637,000, a 95% increase from $6,469,000 in Q3 2023[17] - Non-GAAP net income for Q3 2024 was $15,926,000, compared to $11,996,000 in Q3 2023, reflecting a 32% year-over-year growth[17] - GAAP gross profit for Q3 2024 was $53,682,000, with a gross margin of 80.5%, slightly down from 80.9% in Q3 2023[21] - Non-GAAP gross profit for Q3 2024 was $54,216,000, with a non-GAAP gross margin of 81.3%[21] - GAAP total operating expenses for Q3 2024 were $43,239 thousand, a decrease from $44,557 thousand in Q3 2023[22] - GAAP income from operations for Q3 2024 was $10,443 thousand, significantly up from $2,209 thousand in Q3 2023, resulting in a GAAP operating margin of 15.7% compared to 3.8%[23] - Non-GAAP operating income for Q3 2024 reached $15,059 thousand, an increase from $11,876 thousand in Q3 2023, with a non-GAAP operating margin of 22.6% versus 20.6%[23] - Adjusted EBITDA for Q3 2024 was $17,800 thousand, an increase from $14,413 thousand in Q3 2023, with an adjusted EBITDA margin of 26.7% compared to 24.9%[24] Cash and Investments - Cash and investments at the end of Q3 2024 totaled $182.1 million, an increase from $159.3 million at the end of 2023[4] - A10 Networks generated $21.0 million in cash from operations during Q3 2024[4] - Cash and cash equivalents decreased to $78,063,000 from $97,244,000 at the end of 2023[20] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $64,782,000, up from $41,783,000 in the same period of 2023[20] Shareholder Returns - The company returned $13.9 million to investors through share repurchases and cash dividends during the quarter[4] - A quarterly cash dividend of $0.06 per share was approved, payable on December 2, 2024[5] - The company has authorized a new common stock repurchase program for up to $50 million[5] Assets and Liabilities - Total current assets increased to $283,837,000 as of September 30, 2024, up from $271,824,000 at the end of 2023[18] - Total liabilities rose to $190,477,000 as of September 30, 2024, compared to $181,933,000 at the end of 2023[19] - The company reported a total stockholders' equity of $217,270,000 as of September 30, 2024, compared to $207,876,000 at the end of 2023[19] Expenses and Compensation - The company incurred $4,516,000 in stock-based compensation for Q3 2024, slightly up from $4,255,000 in Q3 2023[17] - Stock-based compensation and related payroll tax for Q3 2024 amounted to $4,516 thousand, slightly up from $4,255 thousand in Q3 2023[23] - The company reported a decrease in impairment expenses from $2,975 thousand in Q3 2023 to zero in Q3 2024[23] - The company incurred a one-time tax planning expense of $100 thousand in Q3 2024, compared to zero in Q3 2023[23] Strategic Focus - Security-led revenue accounted for 63% of total revenue in Q3 2024, highlighting the company's focus on cybersecurity solutions[6] - The company plans to integrate AI into its product offerings to enhance security solutions and address new threats[6] - The company is focusing on market expansion and new product development as part of its future strategy[22]

Financial Data and Key Metrics Changes - Second quarter revenue was $60.1 million, a decrease of 8.7% year-over-year [16] - Year-to-date revenue was $120.8 million, down 2.2% year-over-year [18] - Non-GAAP net income for the quarter was $13.2 million or $0.18 per diluted share, compared to $14.5 million or $0.19 per diluted share in the year-ago quarter [17] - Gross margin in the second quarter was 80.9%, in line with stated goals of 80% to 82% [17] - Adjusted EBITDA was $15.5 million for the quarter, reflecting 25.8% of total revenue [17] Business Line Data and Key Metrics Changes - Service Provider revenue, excluding North America, was up 20% year-to-date, while Enterprise-related revenue increased 25% [9] - Service Provider segment experienced a 25% decline, offset by improvements in the Enterprise segment [9] - Product revenue for the quarter was $29.5 million, representing 49% of total revenue, while services revenue was $30.6 million or 51% of total revenue [16] Market Data and Key Metrics Changes - North American Service Provider market remains choppy, with spending trending positively overall [8] - APJ and EMEA regions are stable on both Enterprise and Service Provider sides [36] Company Strategy and Development Direction - Company is focusing on diversifying its business model to navigate market challenges and drive growth [11] - Investments are being made in R&D and sales to target Enterprise opportunities, with expectations for continued growth in this segment [9][12] - The company is also investing in AI solutions to enhance security offerings and address emerging threats [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the North American Service Provider market is facing challenges, but the company is making steady progress in the Enterprise market [21] - The company expects low single-digit growth in revenue for the full year, with a focus on maintaining profitability [39] - Management remains confident in achieving full-year business model objectives, including targets for gross margin and adjusted EBITDA margin [15][20] Other Important Information - The company reported a quarterly cash dividend of $0.06 per share, with $34.8 million remaining in its share repurchase authorization [20] - Cash generated from operations was $43.8 million year-to-date, in line with full-year targets [19] Q&A Session Summary Question: Are service providers expected to return in the second half? - Management indicated that conversations with North American service providers show continued spending, but new projects are being pushed out [25] Question: How is the competitive environment? - Management stated that they are gaining share, particularly in the Enterprise market, with a year-to-date growth of about 7% [29] Question: What is the pricing power in the current environment? - Management mentioned that pricing is balanced, with selective price increases to offset input cost inflation [31] Question: Where is the company in the sales team restructuring? - Management indicated they are in the third to fourth inning of restructuring, with good progress in cross-selling [33] Question: What is the overall spending environment and macro headwinds? - Management noted stability in APJ and EMEA, while North America is facing some project re-scoping [36] Question: What drove the strong free cash flow in the first half? - Management attributed strong free cash flow to improved cash spending and linearity [41]

分组1 - A10 Networks reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, but down from $0.19 per share a year ago [1] - The company posted revenues of $60.1 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.17% and down from $65.82 million year-over-year [1] - A10 Networks has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates two times as well [1] 分组2 - The stock has added about 7% since the beginning of the year, underperforming the S&P 500's gain of 14.5% [2] - The current consensus EPS estimate for the coming quarter is $0.22 on revenues of $68.97 million, and for the current fiscal year, it is $0.82 on revenues of $265.32 million [4] - The Communication - Network Software industry is currently in the bottom 27% of the Zacks industries, indicating potential challenges for stocks in this sector [5]

Financial Performance - Total net revenue for Q2 2024 was $60,096 thousand, a decrease of 8.3% compared to $65,817 thousand in Q2 2023[18]. - Net income for Q2 2024 was $9,476 thousand, down 18.5% from $11,626 thousand in Q2 2023[20]. - Gross profit for the first half of 2024 was $97,289 thousand, compared to $99,829 thousand in the same period of 2023, reflecting a decrease of 2.5%[18]. - Operating expenses for Q2 2024 totaled $40,142 thousand, slightly up from $40,088 thousand in Q2 2023[18]. - The company reported a diluted net income per share of $0.13 for Q2 2024, down from $0.15 in Q2 2023[18]. - Comprehensive income for the first half of 2024 was $19,738 thousand, compared to $16,852 thousand in the same period of 2023, indicating an increase of 17.3%[20]. - Net income for the six months ended June 30, 2024, was $19,202, compared to $15,584 for the same period in 2023, representing a year-over-year increase of 23%[30]. - Total net revenue for the first half of 2024 was $120.8 million compared to $123.5 million in the same period of 2023[97]. Assets and Liabilities - Total assets as of June 30, 2024, increased to $397.17 million from $389.81 million as of December 31, 2023, representing a growth of approximately 1.4%[16]. - Total current liabilities increased to $115.03 million from $111.07 million, reflecting a rise of approximately 3.5%[16]. - Total liabilities rose to $182,813,000 as of June 30, 2024, compared to $181,933,000 at the end of 2023[16]. - Stockholders' equity grew to $214.36 million from $207.88 million, an increase of about 3.6%[16]. - The total stockholders' equity as of June 30, 2024, was $214,309 thousand, up from $192,938 thousand as of June 30, 2023[24]. - The accumulated deficit reduction from $90.48 million to $71.28 million, a decrease of approximately 21.2%[16]. Cash Flow and Investments - Cash and cash equivalents decreased to $77.46 million from $97.24 million, a decline of about 20.3%[16]. - Cash provided by operating activities for the six months ended June 30, 2024, was $44,650, significantly up from $18,722 in the prior year[30]. - The company reported a net cash used in investing activities of $(42,472) for the six months ended June 30, 2024, compared to a net cash provided of $37,039 in the prior year[30]. - Total cash and cash equivalents at the end of the period decreased to $77,457 thousand as of June 30, 2024, from $111,181 thousand as of June 30, 2023, indicating a decline in liquidity[30]. Market and Product Strategy - The company plans to introduce new products and enhance its market position, focusing on effective management of growth and operations[8]. - Future expectations include maintaining profitability while investing in sales, marketing, and product development[8]. - A10 Networks is committed to monitoring market trends and adapting strategies to ensure competitive positioning in the networking and network security sectors[9]. - The company’s revenue is derived from two sources: products revenue and services revenue, with a significant portion coming from sales through distribution channel partners[35]. - The company has a diverse product portfolio that includes six secure application solutions and two intelligent management tools, addressing various cyber protection challenges[34]. Customer and Revenue Concentration - One customer accounted for 43% of total gross accounts receivable as of June 30, 2024, up from 19% as of December 31, 2023[47]. - For the three months ended June 30, 2024, revenue from significant end-customer A represented 14% of total revenue, down from 25% in the same period of 2023[45]. Stock Repurchase and Compensation - The company repurchased common stock worth $11,837 thousand during the first half of 2024[24]. - The company repurchased 1.1 million shares for a total cost of $14.9 million under the 2023 stock repurchase program during the six months ended June 30, 2024[89]. - Stock-based compensation for the six months ended June 30, 2024, was $8,105, compared to $7,214 in the same period of 2023[30]. Inventory and Expenses - Total inventory increased to $25,212 thousand as of June 30, 2024, compared to $23,522 thousand as of December 31, 2023, representing an increase of 7.2%[69]. - Research and development expenses increased to $14,737 thousand in Q2 2024, compared to $13,965 thousand in Q2 2023, marking a rise of 5.5%[18]. - Total accrued liabilities increased to $27,398 thousand as of June 30, 2024, from $21,388 thousand as of December 31, 2023, representing an increase of 28.1%[75]. Lease and Asset Management - Total right-of-use assets decreased from $16,376,000 to $13,928,000, representing a decline of approximately 14.98%[51]. - Total operating lease liabilities decreased from $16,820,000 to $14,319,000, a reduction of about 11.86%[51]. - The average remaining lease term decreased from 3.84 years to 2.92 years, indicating a shortening of lease commitments[55]. Tax and Regulatory Matters - The company recorded a provision for income tax of $1.5 million for the three months ended June 30, 2024, compared to $3.2 million for the same period in 2023, a decrease of 53.1%[94]. - The company had $8.1 million of unrecognized tax benefits as of June 30, 2024, with no anticipated material change over the next twelve months[94].

EXHIBIT 99.1 A10 Networks Reports Financial Results for the Second Quarter of 2024 Company Maintains Solid Profitability SAN JOSE, Calif., July 30, 2024 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its second quarter ended June 30, 2024. Second Quarter 2024 Financial Summary • Revenue of $60.1 million, compared to $65.8 million in the second quarter of 2023. Revenue for the first six months of 2024 was $120.8 mill ...

Q2 2024 Financial Results & Commentary July 30, 2024 Cautionary Statements & Disclosures This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on our management's beliefs and assumptions, including statements regarding our future financial performance, strategy, demand, positioning, capital allocation strategy and value creation, and market and technology trends. Forward-looking statements are subject to known and unknown risks and uncertainties and are ...