A10 Networks Reports Financial Results for the Second Quarter of 2024
A10 Networks (NYSE: ATEN) reported its Q2 2024 financial results, showing revenue of $60.1 million, down from $65.8 million in Q2 2023. Despite the decrease, the company maintained solid profitability with a GAAP gross margin of 80.0% and non-GAAP gross margin of 80.9%. GAAP net income was $9.5 million ($0.13 per diluted share), while non-GAAP net income reached $13.2 million ($0.18 per diluted share).
The company returned $16.3 million to investors through share repurchases and dividends. A10 Networks' CEO, Dhrupad Trivedi, noted volatility in the North American service provider market but highlighted 25% growth in Enterprise revenue for Q2 and 7% year-to-date. The company continues to invest in R&D, focusing on enterprise-targeted solutions and AI-driven market potential.
A10 Networks (NYSE: ATEN) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando un fatturato di 60,1 milioni di dollari, in calo rispetto ai 65,8 milioni di dollari del secondo trimestre 2023. Nonostante la diminuzione, l'azienda ha mantenuto una solida redditività con un margine lordo GAAP dell'80,0% e un margine lordo non GAAP dell'80,9%. Il reddito netto GAAP è stato di 9,5 milioni di dollari (0,13 dollari per azione diluita), mentre il reddito netto non GAAP ha raggiunto i 13,2 milioni di dollari (0,18 dollari per azione diluita).
L'azienda ha restituito 16,3 milioni di dollari agli investitori attraverso riacquisti di azioni e dividendi. Il CEO di A10 Networks, Dhrupad Trivedi, ha osservato la volatilità nel mercato dei fornitori di servizi del Nord America, ma ha evidenziato una crescita del 25% nel fatturato per le imprese nel secondo trimestre e del 7% da inizio anno. L'azienda continua a investire in ricerca e sviluppo, concentrandosi su soluzioni mirate alle imprese e al potenziale di mercato guidato dall'IA.
A10 Networks (NYSE: ATEN) reportó sus resultados financieros del segundo trimestre de 2024, mostrando ingresos de 60,1 millones de dólares, una disminución desde los 65,8 millones de dólares en el segundo trimestre de 2023. A pesar de la caída, la compañía mantuvo una sólida rentabilidad con un margen bruto GAAP del 80,0% y un margen bruto no GAAP del 80,9%. El ingreso neto GAAP fue de 9,5 millones de dólares (0,13 dólares por acción diluida), mientras que el ingreso neto no GAAP alcanzó los 13,2 millones de dólares (0,18 dólares por acción diluida).
La compañía devolvió 16,3 millones de dólares a los inversionistas a través de la recompra de acciones y dividendos. El CEO de A10 Networks, Dhrupad Trivedi, señaló la volatilidad en el mercado de proveedores de servicios de América del Norte, pero destacó un crecimiento del 25% en los ingresos empresariales para el segundo trimestre y un 7% en el año hasta la fecha. La empresa sigue invirtiendo en I+D, enfocándose en soluciones dirigidas a empresas y en el potencial del mercado impulsado por la inteligencia artificial.
A10 Networks (NYSE: ATEN)는 2024년 2분기 재무 결과를 발표하며 6천만 1천 달러의 수익을 기록했다고 밝혔습니다. 이는 2023년 2분기의 6천5백 8십만 달러에서 감소한 것입니다. 감소에도 불구하고, 회사는 GAAP 총 마진 80.0%과 비 GAAP 총 마진 80.9%로 견고한 수익성을 유지했습니다. GAAP 순이익은 950만 달러(희석 주식당 0.13달러)였으며, 비 GAAP 순이익은 1천 320만 달러(희석 주식당 0.18달러)에 달했습니다.
회사는 주식 재매입과 배당금으로 투자자에게 1천 630만 달러를 반환했습니다. A10 Networks의 CEO인 Dhrupad Trivedi는 북미 서비스 제공업체 시장의 변동성을 언급하면서도, 2분기 기업 수익 25% 성장과 연간 7% 성장을 강조했습니다. 회사는 기업 타겟 솔루션과 AI 기반 시장 잠재력에 집중하여 R&D에 계속 투자하고 있습니다.
A10 Networks (NYSE: ATEN) a publié ses résultats financiers du deuxième trimestre 2024, annonçant un chiffre d'affaires de 60,1 millions de dollars, en baisse par rapport à 65,8 millions de dollars au deuxième trimestre 2023. Malgré cette baisse, l'entreprise a maintenu une rentabilité solide avec une marge brute GAAP de 80,0% et une marge brute non-GAAP de 80,9%. Le résultat net GAAP s'élevait à 9,5 millions de dollars (0,13 dollar par action diluée), tandis que le résultat net non-GAAP a atteint 13,2 millions de dollars (0,18 dollar par action diluée).
L'entreprise a restitué 16,3 millions de dollars aux investisseurs par le biais de rachats d'actions et de dividendes. Le PDG d'A10 Networks, Dhrupad Trivedi, a noté la volatilité sur le marché nord-américain des fournisseurs de services, tout en soulignant une croissance de 25% du chiffre d'affaires entreprises pour le deuxième trimestre et de 7% depuis le début de l'année. L'entreprise continue d'investir dans la R&D, en se concentrant sur des solutions destinées aux entreprises et sur le potentiel du marché alimenté par l'IA.
A10 Networks (NYSE: ATEN) hat die Finanzergebnisse für das zweite Quartal 2024 veröffentlicht, mit Umsätzen von 60,1 Millionen Dollar, ein Rückgang von 65,8 Millionen Dollar im zweiten Quartal 2023. Trotz des Rückgangs konnte das Unternehmen eine solide Rentabilität mit einer GAAP-Bruttomarge von 80,0% und einer Non-GAAP-Bruttomarge von 80,9% aufrechterhalten. Der GAAP-Nettoertrag betrug 9,5 Millionen Dollar (0,13 Dollar pro verwässerter Aktie), während der Non-GAAP-Nettoertrag 13,2 Millionen Dollar (0,18 Dollar pro verwässerter Aktie) erreichte.
Das Unternehmen hat 16,3 Millionen Dollar an die Investoren durch Aktienrückkäufe und Dividenden zurückgegeben. Der CEO von A10 Networks, Dhrupad Trivedi, bemerkte die Volatilität auf dem nordamerikanischen Dienstanbieter-Markt, hob aber ein Wachstum von 25% im Unternehmensumsatz für das zweite Quartal und 7% im bisherigen Jahresverlauf hervor. Das Unternehmen investiert weiterhin in Forschung und Entwicklung, mit einem Fokus auf enterprise-orientierte Lösungen und das KI-gesteuerte Marktpotenzial.
- Maintained solid profitability with GAAP gross margin of 80.0% and non-GAAP gross margin of 80.9%
- Enterprise revenue increased by 25% in Q2 and 7% year-to-date
- Returned $16.3 million to investors through share repurchases and dividends
- Continued investment in R&D focused on enterprise-targeted solutions and AI-driven market potential
- Revenue decreased to $60.1 million from $65.8 million in Q2 2023
- GAAP net income declined to $9.5 million from $11.6 million in Q2 2023
- Non-GAAP net income decreased to $13.2 million from $14.5 million in Q2 2023
- Volatility in the North American service provider market impacting quarter-to-quarter visibility
Insights
A10 Networks' Q2 2024 results present a mixed picture. Revenue declined to
The decline in revenue can be attributed to volatility in the North American service provider market, resulting in elongated sales cycles. This situation warrants careful monitoring, as persistent slowdowns could impact future growth. On a positive note, the Enterprise segment showed robust growth, increasing by
A10 Networks' commitment to shareholder returns is evident, with
The company's focus on AI-driven solutions and increased R&D investments in enterprise-targeted products could potentially offset the current market challenges. However, the success of these initiatives remains to be seen and should be closely monitored in upcoming quarters.
Overall, while A10 Networks faces near-term headwinds, its solid profitability, strategic focus on enterprise growth and investment in future technologies provide a foundation for potential long-term value creation.
A10 Networks' Q2 2024 results reflect the ongoing transformation in the networking and cybersecurity landscape. The company's focus on security-led solutions aligns with the increasing importance of cybersecurity in today's digital environment. However, the volatility in the service provider market suggests a potential shift in how these customers are approaching network infrastructure investments.
The 25% growth in Enterprise revenue is particularly noteworthy. This trend indicates that A10 Networks is successfully positioning its products to meet the evolving needs of enterprise customers, who are increasingly prioritizing robust security and infrastructure solutions in the face of growing cyber threats and digital transformation initiatives.
A10's increased investment in R&D, particularly in AI-driven market potential, is a strategic move that could pay dividends in the future. As AI continues to reshape the tech landscape, networking and security solutions that leverage AI capabilities are likely to gain a competitive edge. This focus could help A10 differentiate its offerings in a crowded market.
The company's ability to maintain high gross margins (
Looking ahead, A10's success will likely depend on its ability to capitalize on the growing enterprise market, successfully bring AI-enhanced products to market and navigate the evolving needs of service providers. The company's strategic direction appears sound, but execution in the coming quarters will be crucial.
Company Maintains Solid Profitability
Second Quarter 2024 Financial Summary
-
Revenue of
$60.1 million $65.8 million $120.8 million $123.5 million -
GAAP gross margin of
80.0% ; non-GAAP gross margin of80.9% as a result of continued focus on operational execution of business model goals in spite of near-term volatility in the market. -
GAAP net income of
$9.5 million 15.8% of revenue), or$0.13 $11.6 million 17.7% of revenue) or$0.15 -
Non-GAAP net income of
$13.2 million 22.0% of revenue), or$0.18 $14.5 million 22.1% of revenue) or$0.19 -
The Company returned
$16.3 million $14.02 $11.8 million $4.5 million -
The Board of Directors approved a quarterly cash dividend of
$0.06
A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.
“Consistent with our prior comments and expectations, the North American service provider market remains volatile, impacting our quarter-to-quarter visibility,” commented Dhrupad Trivedi, A10 Network’s President and Chief Executive Officer. “While elongated sales cycles have slowed service provider revenue, we continue to believe that we have not lost those customer opportunities to competitors or cancellations, and demand for our security-led solutions remains robust. The Enterprise segment continues to grow in line with our stated strategy. During the second quarter, Enterprise revenue increased
“Despite the macro challenges, we continued to deliver bottom-line results in-line with expectations while returning significant capital to shareholders,” added Trivedi. “We believe our business model enables solid and consistent profitability, and our revenue diversification positions A10 to navigate challenging market conditions.”
Conference Call
Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, Tuesday, July 30, 2024, to discuss these results. Interested parties may access the conference call by dialing (833) 470-1428 (toll-free) or (404) 975-4839 and referencing access code: 707454.
A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Network’s website at investors.a10networks.com. The webcast will be archived for at least 90 days. A telephonic replay of the conference call will be available two hours after the conclusion of the live call and will run for seven days and may be accessed by dialing (866) 813-9403 (toll-free) or (929) 458-6194 and entering the passcode 793093.
Forward-Looking Statements
This press release contains “forward-looking statements,” including statements regarding our quarterly dividend payments and stock repurchase program, strategy, growth, customer opportunities, demand, positioning, profitability, revenue and expectations for 2024, market trends, investments and return of capital. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Factors that may cause actual results to differ include any unforeseen need for capital which may require us to divert funds we may have otherwise used for the dividend program or stock repurchase program, which may in turn negatively impact our ability to administer the quarterly dividends or the repurchase of our common stock; a significant decline in global macroeconomic or political conditions that have an adverse impact on our business and financial results; business interruptions related to our supply chain; our ability to manage our business and expenses if customers cancel or delay orders; execution risks related to closing key deals and improving our execution; the continued market adoption of our products; our ability to successfully anticipate market needs and opportunities; our timely development of new products and features; our ability to achieve or maintain profitability; any loss or delay of expected purchases by our largest end-customers; our ability to maintain or improve our competitive position; competitive and execution risks related to cloud-based computing trends; our ability to attract and retain new end-customers and our largest end-consumers; our ability to maintain and enhance our brand and reputation; changes demanded by our customers in the deployment and payment model for our products; continued growth in markets relating to network security; the success of any future acquisitions or investments in complementary companies, products, services or technologies; the ability of our sales team to execute well; our ability to shorten our close cycles; the ability of our channel partners to sell our products; variations in product mix or geographic locations of our sales; risks associated with our presence in international markets; weaknesses or deficiencies in our internal control over financial reporting; our ability to timely file periodic reports required to be filed under the Securities Exchange Act of 1934; and other risks that are described in “Risk Factors” in our periodic filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Commission on February 29, 2024. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with
A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance and are used by the company's management for that purpose.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
We define non-GAAP net income as our GAAP net income excluding: (i) stock-based compensation and related payroll tax, (ii) restructuring expense, (iii) cyber incident remediation expense, (iv) one-time tax planning expense, (v) one-time legal expense and (vi) income tax effect of non-GAAP items (i) to (v) listed above. We define non-GAAP net income per basic and diluted share as our non-GAAP net income divided by our basic and diluted weighted-average shares outstanding. We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, (ii) restructuring expense and (iii) cyber incident remediation expense. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating expenses as our GAAP operating expenses excluding (i) stock-based compensation and related payroll tax, (ii) restructuring expense, (iii) cyber incident remediation expense, (iv) one-time tax planning expense and (v) one-time legal expense. We define non-GAAP operating income as our GAAP income from operations excluding (i) stock-based compensation and related payroll tax, (ii) restructuring expense, (iii) cyber incident remediation expense, (iv) one-time tax planning expense and (v) one-time legal expense. We define non-GAAP operating margin as our non-GAAP operating income divided by our GAAP revenue. We define Adjusted EBITDA as our GAAP net income excluding (i) interest and other (income) expense, net, (ii) depreciation and amortization expense, (iii) provision for income taxes, (iv) stock-based compensation and related payroll tax, (v) restructuring expense, (vi) cyber incident remediation expense, (vii) one-time tax planning expense and (viii) one-time legal expense. We define Adjusted EBITDA margin as our Adjusted EBITDA divided by our GAAP revenue.
Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results.
About A10 Networks
A10 Networks (NYSE: ATEN) provides security and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments. Our 7000+ customers span global large enterprises and communications, cloud and web service providers who must ensure business-critical applications and networks are secure, available, and efficient. Founded in 2004, A10 Networks is based in
The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in
Source: A10 Networks, Inc.
A10 NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts, on a GAAP Basis) |
||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Net revenue: |
|
|
|
|
|
|
|
|||||
Products |
$ |
29,533 |
|
$ |
39,090 |
|
$ |
59,602 |
|
$ |
70,272 |
|
Services |
|
30,563 |
|
|
26,727 |
|
|
61,169 |
|
|
53,236 |
|
Total net revenue |
|
60,096 |
|
|
65,817 |
|
|
120,771 |
|
|
123,508 |
|
Cost of net revenue: |
|
|
|
|
|
|
|
|||||
Products |
|
6,813 |
|
|
9,436 |
|
|
13,612 |
|
|
15,519 |
|
Services |
|
5,225 |
|
|
4,027 |
|
|
9,870 |
|
|
8,160 |
|
Total cost of net revenue |
|
12,038 |
|
|
13,463 |
|
|
23,482 |
|
|
23,679 |
|
Gross profit |
|
48,058 |
|
|
52,354 |
|
|
97,289 |
|
|
99,829 |
|
Operating expenses: |
|
|
|
|
|
|
|
|||||
Sales and marketing |
|
19,453 |
|
|
20,868 |
|
|
40,667 |
|
|
43,202 |
|
Research and development |
|
14,737 |
|
|
13,965 |
|
|
28,800 |
|
|
25,630 |
|
General and administrative |
|
5,952 |
|
|
5,255 |
|
|
12,693 |
|
|
12,564 |
|
Total operating expenses |
|
40,142 |
|
|
40,088 |
|
|
82,160 |
|
|
81,396 |
|
Income from operations |
|
7,916 |
|
|
12,266 |
|
|
15,129 |
|
|
18,433 |
|
Non-operating income, net: |
|
|
|
|
|
|
|
|||||
Interest income |
|
1,761 |
|
|
662 |
|
|
3,442 |
|
|
1,635 |
|
Other income (expense), net |
|
1,306 |
|
|
1,884 |
|
|
3,632 |
|
|
(334 |
) |
Non-operating income, net |
|
3,067 |
|
|
2,546 |
|
|
7,074 |
|
|
1,301 |
|
Income before provision for income taxes |
|
10,983 |
|
|
14,812 |
|
|
22,203 |
|
|
19,734 |
|
Provision for income taxes |
|
1,507 |
|
|
3,186 |
|
|
3,001 |
|
|
4,150 |
|
Net income |
$ |
9,476 |
|
$ |
11,626 |
|
$ |
19,202 |
|
$ |
15,584 |
|
Net income per share: |
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.13 |
|
$ |
0.16 |
|
$ |
0.26 |
|
$ |
0.21 |
|
Diluted |
$ |
0.13 |
|
$ |
0.15 |
|
$ |
0.25 |
|
$ |
0.21 |
|
Weighted-average shares used in computing net income per share: |
|
|
|
|
|
|
|
|||||
Basic |
|
74,366 |
|
|
74,017 |
|
|
74,401 |
|
|
74,009 |
|
Diluted |
|
75,497 |
|
|
75,428 |
|
|
75,432 |
|
|
75,512 |
|
A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (unaudited, in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP net income |
$ |
9,476 |
|
|
$ |
11,626 |
|
|
$ |
19,202 |
|
|
$ |
15,584 |
|
Non-GAAP items: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
4,309 |
|
|
|
3,527 |
|
|
|
8,298 |
|
|
|
7,497 |
|
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,861 |
|
Cyber incident remediation expense (recovery) |
|
— |
|
|
|
(621 |
) |
|
|
— |
|
|
|
732 |
|
One-time tax planning expense |
|
400 |
|
|
|
— |
|
|
|
400 |
|
|
|
— |
|
One-time legal expense |
|
71 |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Income tax-effect of non-GAAP items |
|
(1,046 |
) |
|
|
(3 |
) |
|
|
(2,017 |
) |
|
|
(1,218 |
) |
Total non-GAAP items |
|
3,734 |
|
|
|
2,903 |
|
|
|
6,752 |
|
|
|
8,872 |
|
Non-GAAP net income |
$ |
13,210 |
|
|
$ |
14,529 |
|
|
$ |
25,954 |
|
|
$ |
24,456 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.13 |
|
|
$ |
0.16 |
|
|
$ |
0.26 |
|
|
$ |
0.21 |
|
Diluted |
$ |
0.13 |
|
|
$ |
0.15 |
|
|
$ |
0.25 |
|
|
$ |
0.21 |
|
Non-GAAP items: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
0.05 |
|
|
|
0.05 |
|
|
|
0.11 |
|
|
|
0.10 |
|
Restructuring expense |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
Cyber incident remediation expense (recovery) |
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
0.01 |
|
One-time tax planning expense |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
One-time legal expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax-effect of non-GAAP items |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.02 |
) |
Total non-GAAP items |
|
0.05 |
|
|
|
0.04 |
|
|
|
0.09 |
|
|
|
0.12 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
0.35 |
|
|
$ |
0.33 |
|
Diluted |
$ |
0.18 |
|
|
$ |
0.19 |
|
|
$ |
0.34 |
|
|
$ |
0.32 |
|
Weighted average shares used in computing net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
74,366 |
|
|
|
74,017 |
|
|
|
74,401 |
|
|
|
74,009 |
|
Diluted |
|
75,497 |
|
|
|
75,428 |
|
|
|
75,432 |
|
|
|
75,512 |
|
Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with
A10 NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value, on a GAAP Basis) |
|||||||
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
77,457 |
|
|
$ |
97,244 |
|
Marketable securities |
|
99,682 |
|
|
|
62,056 |
|
Accounts receivable, net of allowances of |
|
57,395 |
|
|
|
74,307 |
|
Inventory |
|
25,212 |
|
|
|
23,522 |
|
Prepaid expenses and other current assets |
|
15,301 |
|
|
|
14,695 |
|
Total current assets |
|
275,047 |
|
|
|
271,824 |
|
Property and equipment, net |
|
34,012 |
|
|
|
29,876 |
|
Goodwill |
|
1,307 |
|
|
|
1,307 |
|
Deferred tax assets, net |
|
62,327 |
|
|
|
62,725 |
|
Other non-current assets |
|
24,477 |
|
|
|
24,077 |
|
Total assets |
$ |
397,170 |
|
|
$ |
389,809 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
5,642 |
|
|
$ |
7,024 |
|
Accrued liabilities |
|
27,398 |
|
|
|
21,388 |
|
Deferred revenue |
|
81,993 |
|
|
|
82,657 |
|
Total current liabilities |
|
115,033 |
|
|
|
111,069 |
|
Deferred revenue, non-current |
|
57,963 |
|
|
|
58,677 |
|
Other non-current liabilities |
|
9,817 |
|
|
|
12,187 |
|
Total liabilities |
|
182,813 |
|
|
|
181,933 |
|
|
|
|
|
||||
Stockholders' equity: |
|||||||
Common stock, |
|
1 |
|
|
|
1 |
|
Treasury stock, at cost: 15,720 and 14,644 shares, respectively |
|
(165,785 |
) |
|
|
(150,909 |
) |
Additional paid-in-capital |
|
497,520 |
|
|
|
486,958 |
|
Dividends paid |
|
(46,562 |
) |
|
|
(37,619 |
) |
Accumulated other comprehensive income (loss) |
|
465 |
|
|
|
(71 |
) |
Accumulated deficit |
|
(71,282 |
) |
|
|
(90,484 |
) |
Total stockholders' equity |
|
214,357 |
|
|
|
207,876 |
|
Total liabilities and stockholders' equity |
$ |
397,170 |
|
|
$ |
389,809 |
|
A10 NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands, on a GAAP Basis) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
19,202 |
|
|
$ |
15,584 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
5,507 |
|
|
|
4,307 |
|
Stock-based compensation |
|
8,105 |
|
|
|
7,214 |
|
Other non-cash items |
|
(403 |
) |
|
|
(270 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
16,695 |
|
|
|
3,698 |
|
Inventory |
|
(3,318 |
) |
|
|
(1,705 |
) |
Prepaid expenses and other assets |
|
(541 |
) |
|
|
3,827 |
|
Accounts payable |
|
(2,859 |
) |
|
|
(1,460 |
) |
Accrued liabilities |
|
3,640 |
|
|
|
(17,094 |
) |
Deferred revenue |
|
(1,378 |
) |
|
|
4,621 |
|
Net cash provided by operating activities |
|
44,650 |
|
|
|
18,722 |
|
Cash flows from investing activities: |
|
|
|
||||
Proceeds from sales of marketable securities |
|
22,536 |
|
|
|
42,252 |
|
Proceeds from maturities of marketable securities |
|
47,699 |
|
|
|
44,532 |
|
Purchases of marketable securities |
|
(106,293 |
) |
|
|
(44,680 |
) |
Capital expenditures |
|
(6,414 |
) |
|
|
(5,065 |
) |
Net cash provided by (used in) investing activities |
|
(42,472 |
) |
|
|
37,039 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock under employee equity incentive plans |
|
1,854 |
|
|
|
2,559 |
|
Repurchase of common stock |
|
(14,876 |
) |
|
|
(6,230 |
) |
Payments for dividends |
|
(8,943 |
) |
|
|
(8,880 |
) |
Net cash used in financing activities |
|
(21,965 |
) |
|
|
(12,551 |
) |
Net increase (decrease) in cash and cash equivalents |
|
(19,787 |
) |
|
|
43,210 |
|
Cash and cash equivalents—beginning of period |
|
97,244 |
|
|
|
67,971 |
|
Cash and cash equivalents—end of period |
$ |
77,457 |
|
|
$ |
111,181 |
|
|
|
|
|
||||
Non-cash investing and financing activities: |
|
|
|
||||
Transfers between inventory and property and equipment |
$ |
1,628 |
|
|
$ |
959 |
|
Purchases of property and equipment included in accounts payable |
$ |
1,477 |
|
|
$ |
1,134 |
|
A10 NETWORKS, INC. RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT (unaudited, in thousands, except percentages) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
48,058 |
|
|
$ |
52,354 |
|
|
$ |
97,289 |
|
|
$ |
99,829 |
|
GAAP gross margin |
|
80.0 |
% |
|
|
79.5 |
% |
|
|
80.6 |
% |
|
|
80.8 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
563 |
|
|
|
417 |
|
|
|
1,034 |
|
|
|
861 |
|
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42 |
|
Cyber incident remediation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Non-GAAP gross profit |
$ |
48,621 |
|
|
$ |
52,771 |
|
|
$ |
98,323 |
|
|
$ |
100,735 |
|
Non-GAAP gross margin |
|
80.9 |
% |
|
|
80.2 |
% |
|
|
81.4 |
% |
|
|
81.6 |
% |
A10 NETWORKS, INC. RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES TO NON-GAAP TOTAL OPERATING EXPENSES (unaudited, in thousands) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP total operating expenses |
$ |
40,142 |
|
|
$ |
40,088 |
|
|
$ |
82,160 |
|
|
$ |
81,396 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
(3,746 |
) |
|
|
(3,110 |
) |
|
|
(7,264 |
) |
|
|
(6,636 |
) |
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,819 |
) |
Cyber incident remediation recovery (expense) |
|
— |
|
|
|
621 |
|
|
|
— |
|
|
|
(729 |
) |
One-time tax planning expense |
|
(400 |
) |
|
|
— |
|
|
|
(400 |
) |
|
|
— |
|
One-time legal expense |
|
(71 |
) |
|
|
— |
|
|
|
(71 |
) |
|
|
— |
|
Non-GAAP total operating expenses |
$ |
35,925 |
|
|
$ |
37,599 |
|
|
$ |
74,425 |
|
|
$ |
72,212 |
|
A10 NETWORKS, INC. RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP OPERATING INCOME (unaudited, in thousands, except percentages) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP income from operations |
$ |
7,916 |
|
|
$ |
12,266 |
|
|
$ |
15,129 |
|
|
$ |
18,433 |
|
GAAP operating margin |
|
13.2 |
% |
|
|
18.6 |
% |
|
|
12.5 |
% |
|
|
14.9 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
4,309 |
|
|
|
3,527 |
|
|
|
8,298 |
|
|
|
7,497 |
|
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,861 |
|
Cyber incident remediation expense (recovery) |
|
— |
|
|
|
(621 |
) |
|
|
— |
|
|
|
732 |
|
One-time tax planning expense |
|
400 |
|
|
|
— |
|
|
|
400 |
|
|
|
— |
|
One-time legal expense |
|
71 |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Non-GAAP operating income |
$ |
12,696 |
|
|
$ |
15,172 |
|
|
$ |
23,898 |
|
|
$ |
28,523 |
|
Non-GAAP operating margin |
|
21.1 |
% |
|
|
23.1 |
% |
|
|
19.8 |
% |
|
|
23.1 |
% |
A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) (unaudited, in thousands, except percentages) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP net income |
$ |
9,476 |
|
|
$ |
11,626 |
|
|
$ |
19,202 |
|
|
$ |
15,584 |
|
GAAP net income margin |
|
15.8 |
% |
|
|
17.7 |
% |
|
|
15.9 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Exclude: Interest and other (income) expense, net |
|
(3,067 |
) |
|
|
(2,546 |
) |
|
|
(7,074 |
) |
|
|
(1,301 |
) |
Exclude: Depreciation and amortization |
|
2,815 |
|
|
|
2,202 |
|
|
|
5,507 |
|
|
|
4,308 |
|
Exclude: Provision for income taxes |
|
1,507 |
|
|
|
3,186 |
|
|
|
3,001 |
|
|
|
4,150 |
|
EBITDA |
|
10,731 |
|
|
|
14,468 |
|
|
|
20,636 |
|
|
|
22,741 |
|
Exclude: Stock-based compensation and related payroll tax |
|
4,309 |
|
|
|
3,527 |
|
|
|
8,298 |
|
|
|
7,497 |
|
Exclude: Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,861 |
|
Exclude: Cyber incident remediation expense |
|
— |
|
|
|
(621 |
) |
|
|
— |
|
|
|
732 |
|
Exclude: One-time tax planning expense |
|
400 |
|
|
|
— |
|
|
|
400 |
|
|
|
— |
|
Exclude: One-time legal expense |
|
71 |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
15,511 |
|
|
$ |
17,374 |
|
|
$ |
29,405 |
|
|
$ |
32,831 |
|
Adjusted EBITDA margin |
|
25.8 |
% |
|
|
26.4 |
% |
|
|
24.3 |
% |
|
|
26.6 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730915062/en/
Investor Contact:
Rob Fink / Tom Baumann
FNK IR
646.809.4048 / 646.349.6641
aten@fnkir.com
Brian Becker
Chief Financial Officer
investors@a10networks.com
Source: A10 Networks
FAQ
What was A10 Networks' (ATEN) revenue for Q2 2024?
How much did A10 Networks (ATEN) return to investors in Q2 2024?
What was A10 Networks' (ATEN) Enterprise revenue growth in Q2 2024?
What is A10 Networks' (ATEN) dividend for Q3 2024?
