To use a sports analogy, innovative small-cap stocks are akin to drafting college football players or picking out compelling prospects in baseball. While these players may have performed exceptionally well in the amateur leagues, there’s no guarantee that said performance will translate into the top tier of competition. However, when you do find the next Tom Brady or Aaron Judge, the rewards can be intense.That’s the allure of small-capitalization enterprises. They offer a lot of promise – boy do they ever! ...

Funtap Thesis A10 Networks (NYSE:ATEN) will be on the rise, as by improving cybersecurity features and switching to flexible and scalable models in consumption, it will secure its growth. A10 Networks aspires to gain customer loyalty through innovative and efficient cyber defense techniques, involving not only AI and machine learning for risk analysis but also subscription and cloud solutions. It is A10 Networks' long-term strategy, and on top of that, it aims to attract and keep customers, particularly ...

While advanced technologies will always be celebrated, the reality is that with innovation comes nefarious activity. It’s just the way of the world. With that, cybersecurity stocks present an excellent opportunity. In many ways, they benefit from a permanently relevant narrative.According to Grand View Research, the global cybersecurity market size reached a valuation of $222.66 billion. By 2030, the sector could be worth $500.7 billion, implying a compound annual growth rate (CAGR) of 12.3% from 2023. More ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | |--------------------------------------------|----------------------------------------------------------------------------------- ...

Q1 2024 Financial Results & Commentary April 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 regardingour 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 ...

Financial Data and Key Metrics Changes - First quarter revenue was $60.7 million, an increase of 5.2% year-over-year [15] - Gross margin in the first quarter was 81.9%, in line with the stated goals of 80% to 82% [16] - Non-GAAP net income for the quarter was $12.7 million, or $0.17 per diluted share, compared to $9.9 million, or $0.13 per diluted share in the year-ago quarter [17] - Adjusted EBITDA was $13.9 million for the quarter, representing 22.9% of revenue [16] Business Line Data and Key Metrics Changes - Product revenue for the quarter was $30.1 million, representing 50% of total revenue, while services revenue was $30.6 million, also 50% of total revenue [15] - First quarter recurring revenue increased 13% compared to the first quarter last year, and deferred revenue increased nearly 10% [15] - Revenue from service providers was up 16% year-over-year in the quarter [10] Market Data and Key Metrics Changes - Strong growth was observed in the APJ region, indicating a positive trend in that market [10] - Enterprise revenue growth continues to outpace overall revenue growth on a trailing 12-month basis [10] Company Strategy and Development Direction - The company is focusing on enhancing cybersecurity capabilities and developing more flexible consumption models for enterprise customers [12] - Investments are being made in both enterprise-facing sales and marketing teams and R&D to strengthen capabilities targeting the enterprise segment [11] - The company aims to maintain gross margins of 80% to 82% and adjusted EBITDA margins of 26% to 28% [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability and delivering value to shareholders while investing in innovation [14] - The company anticipates that enterprise sales in the second quarter will be better than the first quarter, with meaningful improvement expected in the second half of the year [11] - Management noted that while sales cycles have elongated, they are not seeing deterioration in business conditions compared to previous quarters [30] Other Important Information - The company continues to buy back stock and has a cash flow that more than funds buybacks and dividends [14][18] - The Board approved a quarterly cash dividend of $0.6 per share to be paid on June 3, 2024 [18] Q&A Session Summary Question: What inning is the company in regarding changes in the sales team? - Management indicated they are in the second or third inning of seeing results from changes made to the sales team [22] Question: How are conversations regarding pricing power going? - Management stated that while there are inflationary cost pressures, they focus on operational efficiency rather than driving margins through price increases [24] Question: What are the capital allocation priorities? - The first priority is investing in organic growth, followed by balancing dividends and buybacks, and finally considering inorganic opportunities [26][27] Question: Is the business at an inflection point? - Management noted that while they are cautious about using the term "inflection point," they see trends improving compared to the previous year [30] Question: What happened in Q1 regarding service provider and enterprise revenue? - Management explained that enterprise revenue faced a tough comparison due to a strong Q1 last year, while service provider revenue showed recovery after delayed spending [33] Question: What is the investment focus in the sales process? - The focus is on technical capabilities for service providers and hiring experienced sales personnel for the enterprise segment [39] Question: What percentage of revenue comes from new customers? - Approximately 20% of revenue comes from new customers, with the majority being from existing customers [41] Question: What are the priorities for service provider investments? - Investments related to capacity and security are top priorities, while modernization projects are more likely to be delayed [52] Question: What is the penetration rate of security solutions among the customer base? - Management indicated that while they do not have specific data, there is significant opportunity for growth in security solutions among existing customers [54] Question: How has the exchange rate impacted Q1 results? - There was a modest impact from the Japanese yen exchange rate, but it was not significant enough to disclose [59]

A10 Networks (ATEN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this provider of networking technologies would post earnings of $0.27 per share when it actually produced earnings of $0.25, delivering a surprise of -7.41%.Over the last fo ...

EXHIBIT 99.1 A10 Networks Reports In-line Financial Results for the First Quarter of 2024 Company Delivers Revenue Growth YoY and Expands Earnings Per Share SAN JOSE, Calif., April 30, 2024 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its first quarter ended March 31, 2024. First Quarter 2024 Financial Summary • Revenue of $60.7 million, in-line with expectations and up 5.2% year-over-year. • GAAP gross margin of ...

The Zacks Communication-Network Software industry players like Frontier Communications (FYBR) , A10 Networks (ATEN) and Weave Communications (WEAV) are gaining from the ongoing digitalization efforts that include a shift to cloud computing and the rapid deployment of 5G-based networks. The strong demand for network security benefits industry participants as a secure environment is required to run cloud-based applications. Industry players are leveraging AI and machine learning to develop security solutions, ...

Ever since the rise of computer technology, cybersecurity stocks have represented an important cog in the innovation ecosystem. However, their pertinence has risen significantly in recent years. First, cyberattacks are becoming increasingly complex and therefore damaging. Recently, Microsoft (NASDAQ:MSFT) stated that it’s still dissecting a data breach that occurred in January. That attack stemmed from a Russian state-sponsored actor, thus underscoring the wide addressable market for undervalued cybersecuri ...