Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $68 million, up 14.9% year-over-year, marking the second highest quarterly revenue in the company's history [17] - Product revenue, a leading indicator for future revenue, was $41.5 million, representing 61% of total revenue and up 20.7% year-over-year [17] - Gross margin for Q2 was 80.6%, with non-GAAP operating income of $16.1 million compared to $11.1 million in the same quarter last year [18][19] - Non-GAAP net income for Q2 was $13.4 million, or $0.17 per share, compared to $0.08 per share in the prior year [19][20] - Year-to-date revenue for the first half of 2022 was $130.6 million, up 14% year-over-year [20] Business Line Data and Key Metrics Changes - Standalone ADC revenue continued to decline as a percentage of overall revenue, while proprietary security-led product revenue increased by 26% on a trailing 12-month basis [11][12] - Services revenue, which includes maintenance and support, was $26.5 million, or 39% of total revenue [17] Market Data and Key Metrics Changes - Revenue from the Americas grew 33.7% year-over-year to $38.6 million, reflecting strong demand and investment in commercial initiatives [13][17] - EMEA revenue increased 10.5% year-over-year, while Asia revenue decreased 7.1% year-over-year due to currency impacts [13][17] Company Strategy and Development Direction - The company is focused on transitioning from legacy offerings to proprietary security-led solutions, positioning itself as a leader in network security [8][10] - A10 aims to achieve full-year revenue growth of 10% to 12% and adjusted EBITDA margins of 26% to 28% for 2022 [15][22] - The company is committed to a disciplined capital allocation strategy, prioritizing organic growth while remaining open to M&A opportunities [15][37] Management's Comments on Operating Environment and Future Outlook - Management noted that cybersecurity solutions are prioritized even amid economic challenges, particularly by service providers [9][10] - The company expressed confidence in its ability to navigate supply chain challenges and maintain gross margins despite external pressures [10][15] Other Important Information - A10 ended the quarter with nearly $167 million in cash, or $2.13 per share, and returned over $39 million to shareholders through share repurchases and dividends [10][22] - The board approved a quarterly cash dividend of $0.05 per share to be paid on September 1, 2022 [22] Q&A Session Summary Question: Impact of stronger dollar on international markets - Management indicated that the stronger dollar has not significantly impacted their North American business, while Japan faced headwinds due to currency fluctuations [25][26] Question: Sales funnel clarity and customer order delays - Management reported no significant delays in customer orders, attributing this to the essential nature of their solutions [29][30] Question: Competitive landscape and product differentiation - The company competes primarily with Arbor Networks and F5 Networks, with a focus on service providers and large enterprises [34][35] Question: Growth expectations between enterprise and service providers - Management expects service provider growth to remain strong, while enterprise growth may be slower due to macroeconomic factors [46][48] Question: Sustainability of gross margin levels - Management confirmed that they are tracking towards the higher end of their gross margin target of 78% to 80% for the year [49][50]

Financial Data and Key Metrics Changes - Revenue in Q1 2022 was $62.7 million, up 14.3% year-over-year [15] - Product revenue was $37 million, representing 59.1% of total revenue, up 21.3% year-over-year [15] - Gross margin in Q1 was 80.2%, with non-GAAP operating income of $11.7 million compared to $10.8 million in the previous year [17] - Non-GAAP income for the quarter was $10 million or $0.13 per share, compared to $6.3 million or $0.08 per share on a GAAP basis [18][19] Business Line Data and Key Metrics Changes - Security-led product revenue increased 20.1% year-over-year, with North America being the leading driver [11] - Services revenue, including maintenance and support, was $25.6 million, or 40.9% of total revenue [15] - Recurring revenue grew 8.9% year-over-year to $27.9 million, within the target range of 45% to 50% of total revenue [16] Market Data and Key Metrics Changes - Revenue from the Americas grew 25.5% year-over-year to $33 million [11] - EMEA revenue increased from $8.6 million to $11.9 million year-over-year [11] - Revenue from Asia, including Japan, declined from $20 million to $17.8 million, impacted by economic conditions and COVID-19 [11][15] Company Strategy and Development Direction - The company aims to achieve the Rule of 40, targeting a combined revenue growth and EBITDA margin of 40% or greater [8] - Focus on integrating security into all networking solutions to differentiate technology offerings [10] - Continued investment in growth opportunities while balancing profitability [12] Management's Comments on Operating Environment and Future Outlook - Management noted that cybersecurity remains a primary growth catalyst, with increasing focus from CIOs and IT leaders on security [9][13] - The company is well-positioned to achieve high-end revenue growth targets of 10% to 12% for the full year [19] - Management expressed confidence in navigating supply chain issues and maintaining operational performance [13] Other Important Information - The company repurchased $28.3 million in stock and returned $3.9 million to shareholders in dividends during the quarter [8][19] - Deferred revenue was $121.3 million, up 7.2% year-over-year, consistent with typical seasonality [16] Q&A Session Summary Question: Supply chain challenges and performance consistency - Management highlighted long-term planning and regionalizing supply chains as key strategies to mitigate supply chain issues [23][24] Question: Competitive landscape in the current security environment - Management noted competition primarily from established players in the DDoS marketplace and emphasized the importance of high reliability and expertise over price [25][26] Question: Product gross margin contraction - Management indicated that variations in product mix and input cost inflation were factors affecting gross margin [30][31] Question: Impact of geopolitical events on EMEA - Management observed increased importance of cybersecurity in EMEA, with expectations of budget prioritization despite economic uncertainty [36][38] Question: Order visibility and pipeline conviction - Management discussed refining sales processes and maintaining visibility on project budgets and approvals, indicating improved visibility compared to previous years [50][52]

A10 Networks, Inc. (NYSE:ATEN) Q3 2021 Results Earnings Conference Call October 28, 2021 4:30 PM ET Company Participants Jeff Stanlis - Investor Relations Dhrupad Trivedi - President and Chief Executive Officer Brian Becker - Chief Financial Officer Conference Call Participants Tyler Burmeister - Craig-Hallum Capital Group Anja Soderstrom - Sidoti & Company Hendi Susanto - Gabelli Fund Operator Good day and welcome to the A10 Networks Q3 2021 Earnings Conference Call. All participants will be in listen-only ...

A10 Networks, Inc. (NYSE:ATEN) Q2 2021 Earnings Conference Call July 27, 2021 4:30 PM ET Company Participants Rob Fink - Investor Relations Dhrupad Trivedi - President and Chief Executive Officer Brian Becker - Chief Financial Officer Conference Call Participants Christian Schwab - Craig-Hallum Capital Group Anja Soderstrom - Sidoti Hendi Susanto - Gabelli Fund Operator Good day and welcome to the A10 Networks’ Q2, 2021 Earnings Conference Call. [Operator Instructions] I would now like to turn the conferenc ...