A10 Networks Reports Financial Results for the Third Quarter of 2024
A10 Networks (NYSE: ATEN) reported strong Q3 2024 financial results with revenue of $66.7 million, up from $57.8 million in Q3 2023. The company achieved a GAAP net income of $12.6 million ($0.17 per diluted share) and non-GAAP net income of $15.9 million ($0.21 per diluted share). Notable highlights include an 80.5% GAAP gross margin, cash and investments reaching $182.1 million, and $21.0 million generated from operations. The company returned $13.9 million to investors through share repurchases and dividends. Security-led revenue represented 63% of total revenue, reflecting A10's evolution into a cybersecurity-focused organization.
A10 Networks (NYSE: ATEN) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato di 66,7 milioni di dollari, in aumento rispetto ai 57,8 milioni di dollari del terzo trimestre del 2023. L'azienda ha registrato un (0,17 dollari per azione diluita) e un utile netto non-GAAP di 15,9 milioni di dollari (0,21 dollari per azione diluita). Tra i punti salienti, spiccano un margine lordo GAAP dell'80,5%, una liquidità e investimenti che hanno raggiunto 182,1 milioni di dollari, e 21,0 milioni di dollari generati dalle operazioni. L'azienda ha restituito 13,9 milioni di dollari agli investitori attraverso riacquisti di azioni e dividendi. I ricavi guidati dalla sicurezza hanno rappresentato il 63% del fatturato totale, riflettendo l'evoluzione di A10 verso un'organizzazione focalizzata sulla cybersicurezza.
A10 Networks (NYSE: ATEN) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos de 66,7 millones de dólares, un aumento con respecto a los 57,8 millones de dólares en el tercer trimestre de 2023. La compañía logró un ingreso neto GAAP de 12,6 millones de dólares (0,17 dólares por acción diluida) y un ingreso neto no-GAAP de 15,9 millones de dólares (0,21 dólares por acción diluida). Los aspectos más destacados incluyen un margen bruto GAAP del 80,5%, efectivo e inversiones que alcanzaron los 182,1 millones de dólares y 21,0 millones de dólares generados por operaciones. La empresa devolvió 13,9 millones de dólares a los inversores a través de recompras de acciones y dividendos. Los ingresos impulsados por la seguridad representaron el 63% de los ingresos totales, reflejando la evolución de A10 hacia una organización centrada en la ciberseguridad.
A10 Networks (NYSE: ATEN)는 2024년 3분기에 강력한 재무 결과를 보고하며, 매출이 6,670만 달러로 2023년 3분기의 5,780만 달러에서 증가했습니다. 회사는 GAAP 순이익 1,260만 달러 (희석 주당 0.17달러) 및 비GAAP 순이익 1,590만 달러 (희석 주당 0.21달러)를 기록했습니다. 주요 하이라이트에는 80.5%의 GAAP 총 마진, 1억 8,210만 달러에 도달한 현금 및 투자, 그리고 운영에서 발생한 2,100만 달러가 포함됩니다. 이 회사는 주식 재매입 및 배당금을 통해 투자자에게 1,390만 달러를 반환했습니다. 보안 중심의 수익은 총 수익의 63%를 차지하며 A10이 사이버 보안에 중점을 둔 조직으로 발전하고 있음을 반영합니다.
A10 Networks (NYSE: ATEN) a rapporté de solides résultats financiers pour le troisième trimestre 2024, avec des revenus de 66,7 millions de dollars, en hausse par rapport à 57,8 millions de dollars au troisième trimestre 2023. L'entreprise a réalisé un bénéfice net GAAP de 12,6 millions de dollars (0,17 dollar par action diluée) et un bénéfice net non-GAAP de 15,9 millions de dollars (0,21 dollar par action diluée). Parmi les points forts, on note une marge brute GAAP de 80,5 %, des liquidités et investissements atteignant 182,1 millions de dollars et 21,0 millions de dollars générés par les opérations. L'entreprise a restitué 13,9 millions de dollars aux investisseurs par le biais de rachats d'actions et de dividendes. Les revenus liés à la sécurité ont représenté 63 % des revenus totaux, reflétant l'évolution d'A10 vers une organisation axée sur la cybersécurité.
A10 Networks (NYSE: ATEN) hat im dritten Quartal 2024 starke finanzielle Ergebnisse erzielt, mit einem Umsatz von 66,7 Millionen Dollar, ein Anstieg von 57,8 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte einen GAAP-Nettoertrag von 12,6 Millionen Dollar (0,17 Dollar pro verwässerter Aktie) und einen Non-GAAP-Nettoertrag von 15,9 Millionen Dollar (0,21 Dollar pro verwässerter Aktie). Zu den bemerkenswerten Highlights gehören eine GAAP-Bruttomarge von 80,5%, flüssige Mittel und Investitionen in Höhe von 182,1 Millionen Dollar sowie 21 Millionen Dollar aus dem operativen Geschäft. Das Unternehmen gab 13,9 Millionen Dollar an Investoren zurück, durch Aktienrückkäufe und Dividenden. Sicherheitssensiertes Einkommen machte 63 % des Gesamteinkommens aus und spiegelt A10s Entwicklung zu einer auf Cybersicherheit fokussierten Organisation wider.
- Revenue increased 15.4% YoY to $66.7 million in Q3 2024
- GAAP net income nearly doubled to $12.6 million from $6.5 million YoY
- Strong gross margin at 80.5% GAAP and 81.3% non-GAAP
- Cash and investments grew to $182.1 million from $159.3 million
- Generated $21.0 million in cash from operations
- Board authorized new $50 million stock repurchase program
- Sales cycles have elongated due to careful spending decisions
- Market environment remains volatile
Insights
A10 Networks delivered a strong third quarter with notable financial improvements.
Key strengths include robust cash generation of
The shift toward security-focused solutions, now representing
A10's strategic pivot towards AI-enhanced security solutions marks a significant evolution in their product strategy. The introduction of the A10 Control platform demonstrates commitment to innovation in network security and infrastructure management, particularly important as networks face increasingly sophisticated threats.
The company's focus on security-led revenue and AI integration creates a compelling competitive advantage in the cybersecurity space. The elongated sales cycles indicate careful customer consideration, but continued design wins suggest strong product-market fit and essential nature of A10's solutions in customer infrastructure.
Improving Demand from Service Providers and continued Enterprise Execution Drive Revenue Growth, Profitability
Third Quarter 2024 Financial Summary
-
Revenue of
, compared to$66.7 million in the third quarter of 2023. Revenue for the first nine months of 2024 was$57.8 million , compared to$187.5 million for the first nine months of 2023.$181.3 million -
GAAP gross margin of
80.5% ; non-GAAP gross margin of81.3% as a result of continued focus on operational execution of business model goals. -
GAAP net income of
($12.6 million 18.9% of revenue), or per diluted share, compared to net income of$0.17 ($6.5 million 11.2% of revenue) or per diluted share in the third quarter of 2023.$0.09 -
Non-GAAP net income of
($15.9 million 23.9% of revenue), or per diluted share (non-GAAP EPS) compared to non-GAAP net income of$0.21 ($12.0 million 20.8% of revenue) or per diluted share in the third quarter of 2023.$0.16 -
The Company completed the quarter with cash and investments of
, up from$182.1 million as of December 31, 2023. A10 generated$159.3 million in cash from operations during the quarter.$21.0 million -
The Company returned
to investors, having repurchased 747,000 shares at an average price of$13.9 million per share for a total of$12.64 and having paid$9.4 million in cash dividends in the quarter.$4.4 million -
The Board of Directors approved a quarterly cash dividend of
per share, payable December 2, 2024, to stockholders of record at the close of business on November 18, 2024. The Board of Directors also authorized a new common stock repurchase program for up to$0.06 .$50 million
A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.
“Our third quarter results reflect the strength of our business and the value we provide our customers,” commented Dhrupad Trivedi, A10 Network’s President and Chief Executive Officer. “Revenue from Enterprise customers continues to grow, in line with our stated strategy. Revenue from North American service provider customers resumed growth, demonstrating the market’s need for our evolving product portfolio. Our solutions remain designed into customer buildout plans, and while sales cycles have elongated and spending decisions are more carefully considered, our solutions are increasingly critical for evolving networks.”
“A10 continues to leverage AI technology and we announced plans for a blueprint to integrate AI into multiple facets of our business including enhanced security solutions to address new threats posed by AI traffic,” added Trivedi. “We have accelerated our investment in R&D consistent with our strategy. Building upon our industry-leading operating system, the new A10 Control platform provides integrated management and ease of use across our best-in-class security and infrastructure solutions.”
“The overall market environment remains volatile, and A10 is navigating these challenges efficiently based on the durability of our business,” concluded Trivedi. “Security-led revenue now represent
Conference Call
Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, Thursday, November 7, 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: 713043.
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 350985.
Forward-Looking Statements
This press release contains “forward-looking statements,” including statements regarding our quarterly dividend payments and stock repurchase program, strategy, including as to AI, growth, demand, positioning, products, profitability, revenue and cash 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) impairment expense, (iii) workforce reduction expense, (iv) cyber incident remediation expense, (v) one-time tax planning expense, (vi) one-time legal expense and (vii) income tax effect of non-GAAP items (i) to (vi) 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) workforce reduction 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) impairment expense, (iii) workforce reduction expense, (iv) cyber incident remediation expense, (v) one-time tax planning expense and (vi) 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) impairment expense, (iii) workforce reduction expense, (iv) cyber incident remediation expense, (v) one-time tax planning expense and (vi) 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) impairment expense, (vi) workforce reduction expense, (vii) cyber incident remediation expense, (viii) one-time tax planning expense and (ix) 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 September
|
|
Nine Months Ended September
|
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Net revenue: |
|
|
|
|
|
|
|
|||||
Products |
$ |
36,862 |
|
$ |
30,260 |
|
|
$ |
96,464 |
|
$ |
100,532 |
Services |
|
29,859 |
|
|
27,515 |
|
|
|
91,028 |
|
|
80,751 |
Total net revenue |
|
66,721 |
|
|
57,775 |
|
|
|
187,492 |
|
|
181,283 |
Cost of net revenue: |
|
|
|
|
|
|
|
|||||
Products |
|
7,531 |
|
|
6,815 |
|
|
|
21,143 |
|
|
22,334 |
Services |
|
5,508 |
|
|
4,194 |
|
|
|
15,378 |
|
|
12,354 |
Total cost of net revenue |
|
13,039 |
|
|
11,009 |
|
|
|
36,521 |
|
|
34,688 |
Gross profit |
|
53,682 |
|
|
46,766 |
|
|
|
150,971 |
|
|
146,595 |
Operating expenses: |
|
|
|
|
|
|
|
|||||
Sales and marketing |
|
21,011 |
|
|
21,324 |
|
|
|
61,678 |
|
|
64,526 |
Research and development |
|
15,734 |
|
|
17,620 |
|
|
|
44,533 |
|
|
43,250 |
General and administrative |
|
6,494 |
|
|
5,613 |
|
|
|
19,188 |
|
|
18,177 |
Total operating expenses |
|
43,239 |
|
|
44,557 |
|
|
|
125,399 |
|
|
125,953 |
Income from operations |
|
10,443 |
|
|
2,209 |
|
|
|
25,572 |
|
|
20,642 |
Non-operating income, net: |
|
|
|
|
|
|
|
|||||
Interest income |
|
1,634 |
|
|
1,766 |
|
|
|
5,077 |
|
|
3,401 |
Other income, net |
|
2,312 |
|
|
987 |
|
|
|
5,943 |
|
|
653 |
Non-operating income, net |
|
3,946 |
|
|
2,753 |
|
|
|
11,020 |
|
|
4,054 |
Income before provision for (benefit from) income taxes |
|
14,389 |
|
|
4,962 |
|
|
|
36,592 |
|
|
24,696 |
Provision for (benefit from) income taxes |
|
1,752 |
|
|
(1,507 |
) |
|
|
4,753 |
|
|
2,643 |
Net income |
$ |
12,637 |
|
$ |
6,469 |
|
|
$ |
31,839 |
|
$ |
22,053 |
Net income per share: |
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.17 |
|
$ |
0.09 |
|
|
$ |
0.43 |
|
$ |
0.30 |
Diluted |
$ |
0.17 |
|
$ |
0.09 |
|
|
$ |
0.42 |
|
$ |
0.29 |
Weighted-average shares used in computing net income per share: |
|
|
|
|
|
|
|
|||||
Basic |
|
73,823 |
|
|
74,526 |
|
|
|
74,200 |
|
|
74,184 |
Diluted |
|
74,780 |
|
|
75,807 |
|
|
|
75,236 |
|
|
75,639 |
A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (unaudited, in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP net income |
$ |
12,637 |
|
|
$ |
6,469 |
|
|
$ |
31,839 |
|
|
$ |
22,053 |
|
Non-GAAP items: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
4,516 |
|
|
|
4,255 |
|
|
|
12,814 |
|
|
|
11,752 |
|
Impairment expense |
|
— |
|
|
|
2,975 |
|
|
|
— |
|
|
|
2,975 |
|
Workforce reduction expense |
|
— |
|
|
|
2,437 |
|
|
|
— |
|
|
|
4,298 |
|
Cyber incident remediation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
732 |
|
One-time tax planning expense |
|
100 |
|
|
|
— |
|
|
|
500 |
|
|
|
— |
|
One-time legal expense |
|
— |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Income tax-effect of non-GAAP items |
|
(1,327 |
) |
|
|
(4,140 |
) |
|
|
(3,343 |
) |
|
|
(5,358 |
) |
Total non-GAAP items |
|
3,289 |
|
|
|
5,527 |
|
|
|
10,042 |
|
|
|
14,399 |
|
Non-GAAP net income |
$ |
15,926 |
|
|
$ |
11,996 |
|
|
$ |
41,881 |
|
|
$ |
36,452 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.17 |
|
|
$ |
0.09 |
|
|
$ |
0.43 |
|
|
$ |
0.30 |
|
Diluted |
$ |
0.17 |
|
|
$ |
0.09 |
|
|
$ |
0.42 |
|
|
$ |
0.29 |
|
Non-GAAP items: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
0.06 |
|
|
|
0.06 |
|
|
|
0.17 |
|
|
|
0.15 |
|
Impairment expense |
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
Workforce reduction expense |
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.06 |
|
Cyber incident remediation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
One-time tax planning expense |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
One-time legal expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax-effect of non-GAAP items |
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.04 |
) |
|
|
(0.07 |
) |
Total non-GAAP items |
|
0.04 |
|
|
|
0.07 |
|
|
|
0.14 |
|
|
|
0.19 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.22 |
|
|
$ |
0.16 |
|
|
$ |
0.56 |
|
|
$ |
0.49 |
|
Diluted |
$ |
0.21 |
|
|
$ |
0.16 |
|
|
$ |
0.56 |
|
|
$ |
0.48 |
|
Weighted average shares used in computing net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
73,823 |
|
|
|
74,526 |
|
|
|
74,200 |
|
|
|
74,184 |
|
Diluted |
|
74,780 |
|
|
|
75,807 |
|
|
|
75,236 |
|
|
|
75,639 |
|
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) |
|||||||
|
September 30,
|
|
December 31,
|
||||
ASSETS |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
78,063 |
|
|
$ |
97,244 |
|
Marketable securities |
|
104,043 |
|
|
|
62,056 |
|
Accounts receivable, net of allowances of |
|
64,949 |
|
|
|
74,307 |
|
Inventory |
|
23,417 |
|
|
|
23,522 |
|
Prepaid expenses and other current assets |
|
13,365 |
|
|
|
14,695 |
|
Total current assets |
|
283,837 |
|
|
|
271,824 |
|
Property and equipment, net |
|
37,313 |
|
|
|
29,876 |
|
Goodwill |
|
1,307 |
|
|
|
1,307 |
|
Deferred tax assets, net |
|
62,632 |
|
|
|
62,725 |
|
Other non-current assets |
|
22,658 |
|
|
|
24,077 |
|
Total assets |
$ |
407,747 |
|
|
$ |
389,809 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
7,544 |
|
|
$ |
7,024 |
|
Accrued liabilities |
|
29,985 |
|
|
|
21,388 |
|
Deferred revenue |
|
89,509 |
|
|
|
82,657 |
|
Total current liabilities |
|
127,038 |
|
|
|
111,069 |
|
Deferred revenue, non-current |
|
54,710 |
|
|
|
58,677 |
|
Other non-current liabilities |
|
8,729 |
|
|
|
12,187 |
|
Total liabilities |
|
190,477 |
|
|
|
181,933 |
|
|
|
|
|
||||
Stockholders' equity: |
|||||||
Common stock, |
|
1 |
|
|
|
1 |
|
Treasury stock, at cost: 16,467 and 14,644 shares, respectively |
|
(175,230 |
) |
|
|
(150,909 |
) |
Additional paid-in-capital |
|
501,918 |
|
|
|
486,958 |
|
Dividends paid |
|
(50,988 |
) |
|
|
(37,619 |
) |
Accumulated other comprehensive income (loss) |
|
214 |
|
|
|
(71 |
) |
Accumulated deficit |
|
(58,645 |
) |
|
|
(90,484 |
) |
Total stockholders' equity |
|
217,270 |
|
|
|
207,876 |
|
Total liabilities and stockholders' equity |
$ |
407,747 |
|
|
$ |
389,809 |
|
A10 NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands, on a GAAP Basis) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
31,839 |
|
|
$ |
22,053 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
8,248 |
|
|
|
6,845 |
|
Stock-based compensation |
|
12,284 |
|
|
|
11,180 |
|
Other non-cash items |
|
(1,013 |
) |
|
|
774 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
8,378 |
|
|
|
14,056 |
|
Inventory |
|
(1,911 |
) |
|
|
(5,313 |
) |
Prepaid expenses and other assets |
|
753 |
|
|
|
2,033 |
|
Accounts payable |
|
(1,820 |
) |
|
|
(1,183 |
) |
Accrued liabilities |
|
5,139 |
|
|
|
(17,384 |
) |
Deferred revenue |
|
2,885 |
|
|
|
8,722 |
|
Net cash provided by operating activities |
|
64,782 |
|
|
|
41,783 |
|
Cash flows from investing activities: |
|
|
|
||||
Proceeds from sales of marketable securities |
|
22,536 |
|
|
|
42,252 |
|
Proceeds from maturities of marketable securities |
|
66,446 |
|
|
|
54,007 |
|
Purchases of marketable securities |
|
(127,288 |
) |
|
|
(75,064 |
) |
Capital expenditures |
|
(9,886 |
) |
|
|
(7,752 |
) |
Net cash provided by (used in) investing activities |
|
(48,192 |
) |
|
|
13,443 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock under employee equity incentive plans |
|
1,919 |
|
|
|
2,996 |
|
Repurchase of common stock |
|
(24,321 |
) |
|
|
(8,672 |
) |
Payments for dividends |
|
(13,369 |
) |
|
|
(13,369 |
) |
Net cash used in financing activities |
|
(35,771 |
) |
|
|
(19,045 |
) |
Net increase (decrease) in cash and cash equivalents |
|
(19,181 |
) |
|
|
36,181 |
|
Cash and cash equivalents—beginning of period |
|
97,244 |
|
|
|
67,971 |
|
Cash and cash equivalents—end of period |
$ |
78,063 |
|
|
$ |
104,152 |
|
|
|
|
|
||||
Non-cash investing and financing activities: |
|
|
|
||||
Transfers between inventory and property and equipment |
$ |
2,015 |
|
|
$ |
1,445 |
|
Purchases of property and equipment included in accounts payable |
$ |
2,340 |
|
|
$ |
2,672 |
A10 NETWORKS, INC. RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT (unaudited, in thousands, except percentages) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
53,682 |
|
|
$ |
46,766 |
|
|
$ |
150,971 |
|
|
$ |
146,595 |
|
GAAP gross margin |
|
80.5 |
% |
|
|
80.9 |
% |
|
|
80.5 |
% |
|
|
80.9 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
534 |
|
|
|
512 |
|
|
|
1,568 |
|
|
|
1,373 |
|
Workforce reduction expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42 |
|
Cyber incident remediation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Non-GAAP gross profit |
$ |
54,216 |
|
|
$ |
47,278 |
|
|
$ |
152,539 |
|
|
$ |
148,013 |
|
Non-GAAP gross margin |
|
81.3 |
% |
|
|
81.8 |
% |
|
|
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
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP total operating expenses |
$ |
43,239 |
|
|
$ |
44,557 |
|
|
$ |
125,399 |
|
|
$ |
125,953 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
(3,982 |
) |
|
|
(3,743 |
) |
|
|
(11,246 |
) |
|
|
(10,379 |
) |
Impairment expense |
|
— |
|
|
|
(2,975 |
) |
|
|
— |
|
|
|
(2,975 |
) |
Workforce reduction expense |
|
— |
|
|
|
(2,437 |
) |
|
|
— |
|
|
|
(4,256 |
) |
Cyber incident remediation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(729 |
) |
One-time tax planning expense |
|
(100 |
) |
|
|
— |
|
|
|
(500 |
) |
|
|
— |
|
One-time legal expense |
|
— |
|
|
|
— |
|
|
|
(71 |
) |
|
|
— |
|
Non-GAAP total operating expenses |
$ |
39,157 |
|
|
$ |
35,402 |
|
|
$ |
113,582 |
|
|
$ |
107,614 |
A10 NETWORKS, INC. RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP OPERATING INCOME (unaudited, in thousands, except percentages) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP income from operations |
$ |
10,443 |
|
|
$ |
2,209 |
|
|
$ |
25,572 |
|
|
$ |
20,642 |
|
GAAP operating margin |
|
15.7 |
% |
|
|
3.8 |
% |
|
|
13.6 |
% |
|
|
11.4 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
4,516 |
|
|
|
4,255 |
|
|
|
12,814 |
|
|
|
11,752 |
|
Impairment expense |
|
— |
|
|
|
2,975 |
|
|
|
— |
|
|
|
2,975 |
|
Workforce reduction expense |
|
— |
|
|
|
2,437 |
|
|
|
— |
|
|
|
4,298 |
|
Cyber incident remediation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
732 |
|
One-time tax planning expense |
|
100 |
|
|
|
— |
|
|
|
500 |
|
|
|
— |
|
One-time legal expense |
|
— |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Non-GAAP operating income |
$ |
15,059 |
|
|
$ |
11,876 |
|
|
$ |
38,957 |
|
|
$ |
40,399 |
|
Non-GAAP operating margin |
|
22.6 |
% |
|
|
20.6 |
% |
|
|
20.8 |
% |
|
|
22.3 |
% |
A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) (unaudited, in thousands, except percentages) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
GAAP net income |
$ |
12,637 |
|
|
$ |
6,469 |
|
|
$ |
31,839 |
|
|
$ |
22,053 |
|
GAAP net income margin |
|
18.9 |
% |
|
|
11.2 |
% |
|
|
17.0 |
% |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Exclude: Interest and other income, net |
|
(3,946 |
) |
|
|
(2,753 |
) |
|
|
(11,020 |
) |
|
|
(4,054 |
) |
Exclude: Depreciation and amortization |
|
2,741 |
|
|
|
2,537 |
|
|
|
8,248 |
|
|
|
6,845 |
|
Exclude: Provision for income taxes |
|
1,752 |
|
|
|
(1,507 |
) |
|
|
4,753 |
|
|
|
2,643 |
|
EBITDA |
|
13,184 |
|
|
|
4,746 |
|
|
|
33,820 |
|
|
|
27,487 |
|
Exclude: Stock-based compensation and related payroll tax |
|
4,516 |
|
|
|
4,255 |
|
|
|
12,814 |
|
|
|
11,752 |
|
Exclude: Impairment expense |
|
— |
|
|
|
2,975 |
|
|
|
— |
|
|
|
2,975 |
|
Exclude: Workforce reduction expense |
|
— |
|
|
|
2,437 |
|
|
|
— |
|
|
|
4,298 |
|
Exclude: Cyber incident remediation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
732 |
|
Exclude: One-time tax planning expense |
|
100 |
|
|
|
— |
|
|
|
500 |
|
|
|
— |
|
Exclude: One-time legal expense |
|
— |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
17,800 |
|
|
$ |
14,413 |
|
|
$ |
47,205 |
|
|
$ |
47,244 |
|
Adjusted EBITDA margin |
|
26.7 |
% |
|
|
24.9 |
% |
|
|
25.2 |
% |
|
|
26.1 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107318251/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
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