A10 Networks Reports Record Revenue, Full-Year Revenue of $280.3 Million, Fourth Quarter Revenue of $77.6 Million
A10 Networks (NYSE: ATEN) reported a strong financial performance for Q4 and full-year 2022, achieving record revenues of $77.6 million and $280.3 million, respectively, marking a year-over-year growth of 9.9% and 12.1%. The company demonstrated robust profitability with a GAAP net income of $18.0 million, translating to $0.24 per diluted share. Full-year cash flow from operations rose by 31.9% to $66.1 million. A quarterly cash dividend of $0.06 per share was announced. CEO Dhrupad Trivedi highlighted the company's resilience amidst economic pressures, projecting continued revenue growth and a commitment to return capital to shareholders.
- Record revenue of $77.6 million in Q4 2022, up 9.9% year-over-year.
- Full-year revenue reached $280.3 million, a 12.1% increase.
- GAAP net income of $18.0 million in Q4 2022, up from $10.7 million YoY.
- Non-GAAP net income for the full year was $57.7 million, up from $50.1 million YoY.
- Cash flow from operations increased by 31.9% to $66.1 million.
- Returned over $95 million to shareholders through stock repurchases and dividends.
- GAAP EPS decreased significantly from $1.19 in 2021 to $0.60 in 2022.
- Despite revenue growth, broader economic pressures could impact future performance.
Fourth Quarter 2022 Financial Summary
-
Record revenue of
$77.6 million 9.9% year-over-year. -
Revenue growth was broad-based, with increases in
North America and APAC, as well asJapan on a constant currency basis. -
GAAP gross margin of
79.7% ; non-GAAP gross margin of80.3% as a result of better product mix and continued successful navigation of short-term input cost pressures. -
GAAP net income of
$18.0 million $0.24 $10.7 million $0.13 -
Non-GAAP net income of
$18.4 million $0.24 $16.4 million $0.20 -
Adjusted EBITDA of
$22.3 million 28.7% of revenue, in line with stated business model goals, and representing more Adjusted EBITDA than A10 generated in all of 2018 and 2019 combined. -
The Board of Directors approved a quarterly cash dividend of
$0.06 March 1, 2023 to stockholders of record at the close of business onFebruary 17, 2023 .
Full-Year 2022 Financial Summary
-
Record revenue of
$280.3 million 12.1% year-over-year. - Revenue growth was broad-based, with increases in all major geographies and customer verticals on a constant currency basis.
-
GAAP gross margin of
79.7% ; non-GAAP gross margin of80.3% . -
GAAP net income of
$46.9 million $0.60 $65.4 million $94.9 million $1.19 -
Non-GAAP net income of
$57.7 million $0.74 $50.1 million $0.63 -
Q3 and Q4 2022 GAAP EPS of
$0.16 $0.24 $0.94 $0.13 $0.60 $1.19 -
With Q3 and Q4 2022 non-GAAP EPS of
$0.20 $0.24 $0.17 $0.20 $0.74 $0.63 -
Adjusted EBITDA of
$75.1 million 26.8% of revenue, in line with stated goals for profitability. -
Full-year cash flow from operations increased
31.9% to$66.1 million $50.1 million -
A10 returned more than
$95 million $13.01 $79.3 million $15.9 million
($ in millions, except per-share) |
2019 |
2020 |
2021 |
2022 |
2022 vs. 2021 |
Revenue |
|
|
|
|
+ |
Adjusted EBITDA % |
|
|
|
|
+182 bps |
GAAP EPS |
( |
|
|
|
( |
Non-GAAP EPS |
|
|
|
|
+ |
A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.
“Strong demand for our proprietary security-led solutions drove record revenues for the quarter and the full-year, with continued broad-based growth across both enterprises and service providers and in each key geographic region, on a constant-currency basis,” said
“In 2022 we successfully navigated supply chain constraints, maintained robust gross margins and effectively managed our operating expenses, which drove profitability and free cash flow,” added Trivedi. “With revenue growth that outpaced operating expenses, we were able to grow our bottom line faster than our top line. For the year, we delivered record non-GAAP operating income and EBITDA margins, enabling us to repurchase more than
Conference Call
Management will host a call at
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 897429.
Forward-Looking Statements
This press release contains “forward-looking statements,” including statements regarding our anticipated future financial results, quarterly dividend payments, drivers of growth, strategy, demand, supply chain challenges, positioning, growth and Adjusted EBITDA and non-GAAP EPS expectations. 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 the impact of the COVID-19 pandemic on our business and the business of our customers; 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
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with
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 of investment, (iii) amortization expense related to acquisition, (iv) global distribution center transition expense, (v) litigation and investigation expense (recovery, (vi) non-recurring facilities expense, (vii) restructuring expense and related taxes, (viii) tax benefit of amended returns and (ix) release of deferred tax asset valuation allowance. 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 tax effected non-GAAP net income as non-GAAP net income adjusted for the income tax effect of excluding the non-GAAP items (i) to (ix) listed above. We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, and (ii) global distribution center transition expense. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating income as our GAAP income from operations excluding (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition and (iii) global distribution center transition expense. We define non-GAAP operating margin as our non-GAAP operating income 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) amortization expense related to acquisition and (iii) global distribution center transition expense. 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 (benefit from) income taxes, (iv) stock-based compensation and related payroll tax, (v) litigation and investigation expense (recovery), (vi) non-recurring facilities expense, (vi) impairment of investment, (vii) global distribution center transition expense and (ix) restructuring expense.
Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results.
About
The A10 logo and
Source:
|
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Products |
$ |
49,577 |
|
|
$ |
43,680 |
|
|
$ |
173,201 |
|
|
$ |
148,398 |
|
Services |
|
28,057 |
|
|
|
26,991 |
|
|
|
107,137 |
|
|
|
101,644 |
|
Total revenue |
|
77,634 |
|
|
|
70,671 |
|
|
|
280,338 |
|
|
|
250,042 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Products |
|
11,793 |
|
|
|
9,460 |
|
|
|
40,135 |
|
|
|
32,620 |
|
Services |
|
3,950 |
|
|
|
4,722 |
|
|
|
16,697 |
|
|
|
20,885 |
|
Total cost of revenue |
|
15,743 |
|
|
|
14,182 |
|
|
|
56,832 |
|
|
|
53,505 |
|
Gross profit |
|
61,891 |
|
|
|
56,489 |
|
|
|
223,506 |
|
|
|
196,537 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
22,351 |
|
|
|
25,456 |
|
|
|
88,511 |
|
|
|
85,651 |
|
Research and development |
|
16,916 |
|
|
|
13,027 |
|
|
|
58,398 |
|
|
|
54,077 |
|
General and administrative |
|
6,358 |
|
|
|
6,161 |
|
|
|
23,518 |
|
|
|
23,421 |
|
Total operating expenses |
|
45,625 |
|
|
|
44,644 |
|
|
|
170,427 |
|
|
|
163,149 |
|
Income from operations |
|
16,266 |
|
|
|
11,845 |
|
|
|
53,079 |
|
|
|
33,388 |
|
Non-operating income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
568 |
|
|
|
103 |
|
|
|
1,304 |
|
|
|
409 |
|
Interest and other income (expense), net |
|
(464 |
) |
|
|
(356 |
) |
|
|
(1,667 |
) |
|
|
(2,155 |
) |
Total non-operating income (expense), net |
|
104 |
|
|
|
(253 |
) |
|
|
(363 |
) |
|
|
(1,746 |
) |
Income before income taxes |
|
16,370 |
|
|
|
11,592 |
|
|
|
52,716 |
|
|
|
31,642 |
|
Provision for (benefit from) income taxes |
|
(1,660 |
) |
|
|
864 |
|
|
|
5,808 |
|
|
|
(63,245 |
) |
Net income |
$ |
18,030 |
|
|
$ |
10,728 |
|
|
$ |
46,908 |
|
|
$ |
94,887 |
|
Net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.25 |
|
|
$ |
0.14 |
|
|
$ |
0.62 |
|
|
$ |
1.23 |
|
Diluted |
$ |
0.24 |
|
|
$ |
0.13 |
|
|
$ |
0.60 |
|
|
$ |
1.19 |
|
Weighted-average shares used in computing net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
73,560 |
|
|
|
77,548 |
|
|
|
75,528 |
|
|
|
77,046 |
|
Diluted |
|
75,392 |
|
|
|
80,316 |
|
|
|
77,751 |
|
|
|
80,037 |
|
|
||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||||||||
GAAP net income |
$ |
18,030 |
|
|
|
$ |
10,728 |
|
|
$ |
46,908 |
|
|
|
$ |
94,887 |
|
|
||||
Non-GAAP items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Stock-based compensation and related payroll tax |
|
|
3,546 |
|
|
|
|
|
3,598 |
|
|
|
|
13,969 |
|
|
|
|
|
15,031 |
|
|
Impairment of investment |
|
|
1,000 |
|
|
|
|
|
— |
|
|
|
|
1,000 |
|
|
|
|
|
— |
|
|
Amortization expense related to acquisition |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
505 |
|
|
Global distribution center transition expense |
|
|
— |
|
|
|
|
|
2,117 |
|
|
|
|
— |
|
|
|
|
|
5,063 |
|
|
Tax benefit from amended returns |
|
|
(4,176 |
) |
|
|
|
|
— |
|
|
|
|
(4,176 |
) |
|
|
|
|
— |
|
|
Release of deferred tax asset valuation allowance |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(65,417 |
) |
|
Total non-GAAP items |
|
|
370 |
|
|
|
|
|
5,715 |
|
|
|
|
10,793 |
|
|
|
|
|
(44,818 |
) |
|
Non-GAAP net income (1) |
$ |
|
18,400 |
|
|
|
$ |
|
16,443 |
|
|
$ |
|
57,701 |
|
|
|
$ |
|
50,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.25 |
|
|
|
$ |
0.14 |
|
|
$ |
0.62 |
|
|
|
$ |
1.23 |
|
|
||||
Diluted |
$ |
0.24 |
|
|
|
$ |
0.13 |
|
|
$ |
0.60 |
|
|
|
$ |
1.19 |
|
|
||||
Non-GAAP items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Stock-based compensation and related payroll tax |
|
|
0.05 |
|
|
|
|
|
0.04 |
|
|
|
|
0.18 |
|
|
|
|
|
0.19 |
|
|
Impairment of investment |
|
|
0.01 |
|
|
|
|
|
— |
|
|
|
|
0.01 |
|
|
|
|
|
— |
|
|
Amortization expense related to acquisition |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
0.01 |
|
|
Global distribution center transition expense |
|
|
— |
|
|
|
|
|
0.03 |
|
|
|
|
— |
|
|
|
|
|
0.06 |
|
|
Tax benefit from amended returns |
|
|
(0.06 |
) |
|
|
|
|
— |
|
|
|
|
(0.05 |
) |
|
|
|
|
— |
|
|
Release of deferred tax asset valuation allowance |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(0.82 |
) |
|
Total non-GAAP items |
|
|
— |
|
|
|
|
|
0.07 |
|
|
|
|
0.14 |
|
|
|
|
|
(0.56 |
) |
|
Non-GAAP net income per share: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.25 |
|
|
|
$ |
0.21 |
|
|
$ |
0.76 |
|
|
|
$ |
0.65 |
|
|
||||
Diluted |
$ |
0.24 |
|
|
|
$ |
0.20 |
|
|
$ |
0.74 |
|
|
|
$ |
0.63 |
|
|
||||
Weighted average shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
73,560 |
|
|
|
|
77,548 |
|
|
|
75,528 |
|
|
|
|
77,046 |
|
|
||||
Diluted |
|
75,392 |
|
|
|
|
80,316 |
|
|
|
77,751 |
|
|
|
|
80,037 |
|
|
||||
-
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
U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate adjusted net income and earnings per share in the same manner.
|
|||||||
|
|
|
|
||||
ASSETS |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
67,971 |
|
|
$ |
78,925 |
|
Marketable securities |
|
83,018 |
|
|
|
106,117 |
|
Accounts receivable, net of allowances of |
|
72,928 |
|
|
|
61,795 |
|
Inventory |
|
19,693 |
|
|
|
22,462 |
|
Prepaid expenses and other current assets |
|
13,381 |
|
|
|
14,720 |
|
Total current assets |
|
256,991 |
|
|
|
284,019 |
|
Property and equipment, net |
|
19,743 |
|
|
|
10,692 |
|
|
|
1,307 |
|
|
|
1,307 |
|
Deferred tax assets, net |
|
63,183 |
|
|
|
65,773 |
|
Other non-current assets |
|
27,881 |
|
|
|
31,294 |
|
Total assets |
$ |
369,105 |
|
|
$ |
393,085 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
6,725 |
|
|
$ |
6,852 |
|
Accrued and other liabilities |
|
37,183 |
|
|
|
36,101 |
|
Deferred revenue, current |
|
74,340 |
|
|
|
73,132 |
|
Total current liabilities |
|
118,248 |
|
|
|
116,085 |
|
Deferred revenue, non-current |
|
52,652 |
|
|
|
48,499 |
|
Other non-current liabilities |
|
17,193 |
|
|
|
19,613 |
|
Total liabilities |
|
188,093 |
|
|
|
184,197 |
|
Stockholders' equity: |
|||||||
Common stock, |
|
1 |
|
|
|
1 |
|
|
|
(134,934 |
) |
|
|
(55,677 |
) |
Additional paid-in-capital |
|
466,927 |
|
|
|
446,035 |
|
Dividends paid |
|
(19,802 |
) |
|
|
(3,880 |
) |
Accumulated other comprehensive loss |
|
(726 |
) |
|
|
(229 |
) |
Accumulated deficit |
|
(130,454 |
) |
|
|
(177,362 |
) |
Total stockholders' equity |
|
181,012 |
|
|
|
208,888 |
|
Total liabilities and stockholders' equity |
$ |
369,105 |
|
|
$ |
393,085 |
|
|
|||||||
|
Year Ended |
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
46,908 |
|
|
$ |
94,887 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
7,381 |
|
|
|
8,907 |
|
Stock-based compensation |
|
13,331 |
|
|
|
14,422 |
|
Provision for doubtful accounts and sales returns |
|
166 |
|
|
|
(616 |
) |
Release of deferred tax asset valuation allowance and other adjustments |
|
— |
|
|
|
(64,186 |
) |
Other non-cash items |
|
591 |
|
|
|
1,688 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(10,065 |
) |
|
|
(10,399 |
) |
Inventory |
|
2,035 |
|
|
|
(1,826 |
) |
Prepaid expenses and other assets |
|
1,627 |
|
|
|
(2,134 |
) |
Accounts payable |
|
103 |
|
|
|
1,995 |
|
Accrued and other liabilities |
|
(1,338 |
) |
|
|
(5,573 |
) |
Deferred revenue |
|
5,361 |
|
|
|
12,932 |
|
Net cash provided by operating activities |
|
66,100 |
|
|
|
50,097 |
|
Cash flows from investing activities: |
|
|
|
||||
Proceeds from sales of marketable securities |
|
6,252 |
|
|
|
6,865 |
|
Proceeds from maturities of marketable securities |
|
71,045 |
|
|
|
88,790 |
|
Purchases of marketable securities |
|
(55,411 |
) |
|
|
(128,554 |
) |
Purchases of property and equipment |
|
(10,799 |
) |
|
|
(5,171 |
) |
Net cash provided by (used in) investing activities |
|
11,087 |
|
|
|
(38,070 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock under employee equity incentive plans |
|
7,038 |
|
|
|
5,764 |
|
Repurchases of common stock |
|
(79,257 |
) |
|
|
(18,267 |
) |
Payments for dividends |
|
(15,922 |
) |
|
|
(3,880 |
) |
Net cash used in financing activities |
|
(88,141 |
) |
|
|
(16,383 |
) |
Net decrease in cash and cash equivalents |
|
(10,954 |
) |
|
|
(4,356 |
) |
Cash and cash equivalents—beginning of period |
|
78,925 |
|
|
|
83,281 |
|
Cash and cash equivalents—end of period |
$ |
67,971 |
|
|
$ |
78,925 |
|
|
|
|
|
||||
Non-cash investing and financing activities: |
|
|
|
||||
Transfers between inventory and property and equipment |
$ |
733 |
|
|
$ |
94 |
|
Purchases of property and equipment included in accounts payable |
$ |
230 |
|
|
$ |
6 |
|
|
|||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||||||
GAAP gross profit |
$ |
61,891 |
|
|
|
$ |
56,489 |
|
|
|
$ |
223,506 |
|
|
|
$ |
196,537 |
|
|
||||
GAAP gross margin |
|
|
79.7 |
% |
|
|
|
|
79.9 |
% |
|
|
|
|
79.7 |
% |
|
|
|
|
78.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
|
414 |
|
|
|
|
|
398 |
|
|
|
|
|
1,662 |
|
|
|
|
|
1,733 |
|
|
Global distribution center transition expense |
|
|
— |
|
|
|
|
|
117 |
|
|
|
|
|
— |
|
|
|
|
|
655 |
|
|
Non-GAAP gross profit |
$ |
62,305 |
|
|
|
$ |
57,004 |
|
|
|
$ |
225,168 |
|
|
|
$ |
198,925 |
|
|
||||
Non-GAAP gross margin |
|
|
80.3 |
% |
|
|
|
|
80.7 |
% |
|
|
|
|
80.3 |
% |
|
|
|
|
79.6 |
% |
|
|
|||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||||||
GAAP total operating expenses |
$ |
45,625 |
|
|
|
$ |
44,644 |
|
|
|
$ |
170,427 |
|
|
|
$ |
163,149 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
|
(3,132 |
) |
|
|
|
|
(3,200 |
) |
|
|
|
|
(12,307 |
) |
|
|
|
|
(13,298 |
) |
|
Amortization expense related to acquisition |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(505 |
) |
|
Global distribution center transition expense |
|
|
— |
|
|
|
|
|
(2,000 |
) |
|
|
|
|
— |
|
|
|
|
|
(4,408 |
) |
|
Non-GAAP total operating expenses |
$ |
42,493 |
|
|
|
$ |
39,444 |
|
|
|
$ |
158,120 |
|
|
|
$ |
144,938 |
|
|
||||
|
|||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||||||
GAAP income from operations |
$ |
16,266 |
|
|
|
$ |
11,845 |
|
|
|
$ |
53,079 |
|
|
|
$ |
33,388 |
|
|
||||
GAAP operating margin |
|
|
21.0 |
% |
|
|
|
|
16.8 |
% |
|
|
|
|
18.9 |
% |
|
|
|
|
13.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation and related payroll tax |
|
|
3,546 |
|
|
|
|
|
3,598 |
|
|
|
|
|
13,969 |
|
|
|
|
|
15,031 |
|
|
Amortization expense related to acquisition |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
505 |
|
|
Global distribution center transition expense |
|
|
— |
|
|
|
|
|
2,117 |
|
|
|
|
|
— |
|
|
|
|
|
5,063 |
|
|
Non-GAAP operating income |
$ |
19,812 |
|
|
|
$ |
17,560 |
|
|
|
$ |
67,048 |
|
|
|
$ |
53,987 |
|
|
||||
Non-GAAP operating margin |
|
|
25.5 |
% |
|
|
|
|
24.8 |
% |
|
|
|
|
23.9 |
% |
|
|
|
|
21.6 |
% |
|
|
|||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||||||
GAAP net income |
$ |
18,030 |
|
|
|
$ |
10,728 |
|
|
|
$ |
46,908 |
|
|
|
$ |
94,887 |
|
|
||||
GAAP net income margin |
|
|
23.2 |
% |
|
|
|
|
15.2 |
% |
|
|
|
|
16.7 |
% |
|
|
|
|
37.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Exclude: Interest and other (income) expense, net |
|
|
(104 |
) |
|
|
|
|
253 |
|
|
|
|
|
363 |
|
|
|
|
|
1,746 |
|
|
Exclude: Depreciation and amortization |
|
|
2,473 |
|
|
|
|
|
1,863 |
|
|
|
|
|
8,012 |
|
|
|
|
|
8,907 |
|
|
Exclude: Provision for (benefit from) income taxes |
|
|
(1,660 |
) |
|
|
|
|
864 |
|
|
|
|
|
5,808 |
|
|
|
|
|
(63,245 |
) |
|
EBITDA |
|
|
18,739 |
|
|
|
|
|
13,708 |
|
|
|
|
|
61,091 |
|
|
|
|
|
42,295 |
|
|
Exclude: Stock-based compensation and related payroll tax |
|
|
3,546 |
|
|
|
|
|
3,598 |
|
|
|
|
|
13,969 |
|
|
|
|
|
15,031 |
|
|
Exclude: Global distribution center transition expense |
|
|
— |
|
|
|
|
|
2,117 |
|
|
|
|
|
— |
|
|
|
|
|
5,063 |
|
|
Adjusted EBITDA |
$ |
22,285 |
|
|
|
$ |
19,423 |
|
|
|
$ |
75,060 |
|
|
|
$ |
62,389 |
|
|
||||
Adjusted EBITDA margin |
|
|
28.7 |
% |
|
|
|
|
27.5 |
% |
|
|
|
|
26.8 |
% |
|
|
|
|
25.0 |
% |
|
|
|||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||||||
Adjusted EBITDA |
$ |
22,285 |
|
|
|
$ |
19,423 |
|
|
|
$ |
75,060 |
|
|
|
$ |
62,389 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and other income (expense), net |
|
104 |
|
|
|
|
(253 |
) |
|
|
|
(363 |
) |
|
|
|
(1,746 |
) |
|
||||
Depreciation and amortization |
|
(2,473 |
) |
|
|
|
(1,863 |
) |
|
|
|
(8,012 |
) |
|
|
|
(8,907 |
) |
|
||||
Provision for (benefit from) income taxes (1) |
|
(2,516 |
) |
|
|
|
(864 |
) |
|
|
|
(9,984 |
) |
|
|
|
(2,172 |
) |
|
||||
Impairment of investment |
|
|
1,000 |
|
|
|
|
|
— |
|
|
|
|
|
1,000 |
|
|
|
|
|
— |
|
|
Amortization expense related to acquisition |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
505 |
|
|
Income tax effect of non-GAAP items (2) |
|
|
(889 |
) |
|
|
|
|
(1,095 |
) |
|
|
|
|
(5,487 |
) |
|
|
|
|
(5,857 |
) |
|
Total |
|
(4,774 |
) |
|
|
|
(4,075 |
) |
|
|
|
(22,846 |
) |
|
|
|
(18,177 |
) |
|
||||
Tax effected non-GAAP net income |
|
17,511 |
|
|
|
|
15,348 |
|
|
|
|
52,214 |
|
|
|
|
44,212 |
|
|
||||
Exclude: Income tax effect of non-GAAP items (2) |
|
889 |
|
|
|
|
1,095 |
|
|
|
|
5,487 |
|
|
|
|
5,857 |
|
|
||||
Non-GAAP net income |
$ |
18,400 |
|
|
|
$ |
16,443 |
|
|
|
$ |
57,701 |
|
|
|
$ |
50,069 |
|
|
||||
-
In addition to provision for (benefit from) income taxes, includes tax benefit from amended returns of
$4,176 thousand December 31, 2022 and release of deferred tax asset valuation allowance of$65,417 thousand December 31, 2021 . -
For the three months and year ended
December 31, 2022 this represents the tax impact using estimated non-GAAP profit before tax rates of4.8% and9.5% , respectively. For the three months and year endedDecember 31, 2021 this represents the tax impact using estimated non-GAAP profit before tax rates of6.7% and11.7% , respectively.
|
|||||||
|
Three Months Ended |
|
|||||
|
|
|
|
|
|||
GAAP net income |
$ |
12,113 |
|
$ |
74,886 |
|
|
Non-GAAP items: |
|
|
|
|
|||
Stock-based compensation and related payroll tax |
|
3,798 |
|
|
4,201 |
|
|
Global distribution center transition expense |
|
— |
|
|
(1 |
) |
|
Release of deferred tax asset valuation allowance |
|
— |
|
|
(65,417 |
) |
|
Total non-GAAP items |
|
3,798 |
|
|
(61,217 |
) |
|
Non-GAAP net income (1) |
$ |
15,911 |
|
$ |
13,669 |
|
|
|
|
|
|
|
|||
GAAP net income per share: |
|
|
|
|
|||
Basic |
$ |
0.16 |
|
$ |
0.97 |
|
|
Diluted |
$ |
0.16 |
|
$ |
0.94 |
|
|
Non-GAAP items: |
|
|
|
|
|||
Stock-based compensation and related payroll tax |
|
0.04 |
|
|
0.05 |
|
|
Global distribution center transition expense |
|
— |
|
|
— |
|
|
Release of deferred tax asset valuation allowance |
|
— |
|
|
(0.82 |
) |
|
Total non-GAAP items |
|
0.04 |
|
|
(0.77 |
) |
|
Non-GAAP net income per share: (1) |
|
|
|
|
|||
Basic |
$ |
0.21 |
|
$ |
0.18 |
|
|
Diluted |
$ |
0.20 |
|
$ |
0.17 |
|
|
Weighted average shares used in computing net income per share: |
|
|
|
|
|||
Basic |
|
75,881 |
|
|
77,149 |
|
|
Diluted |
|
77,679 |
|
|
79,927 |
|
|
-
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
U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate adjusted net income and earnings per share in the same manner.
|
||||||||||||
|
|
Year Ended |
||||||||||
|
|
2020 |
|
2019 |
||||||||
GAAP net income |
|
$ |
17,816 |
|
|
|
$ |
(17,819 |
) |
|
||
GAAP net income margin |
|
|
|
7.9 |
% |
|
|
|
|
(8.4 |
) % |
|
|
|
|
|
|
|
|
|
|
||||
Exclude: Interest and other (income) expense, net |
|
|
|
(1,406 |
) |
|
|
|
|
(682 |
) |
|
Exclude: Depreciation and amortization |
|
|
|
11,303 |
|
|
|
|
|
10,028 |
|
|
Exclude: Provision for (benefit from) income taxes |
|
|
|
1,323 |
|
|
|
|
|
1,407 |
|
|
EBITDA |
|
|
|
29,036 |
|
|
|
|
|
(7,066 |
) |
|
Exclude: Stock-based compensation and related payroll tax |
|
|
|
12,817 |
|
|
|
|
|
16,790 |
|
|
Exclude: Litigation and investigation expense (recovery) |
|
|
|
30 |
|
|
|
|
|
(1,066 |
) |
|
Exclude: Non-recurring facilities expense |
|
|
|
795 |
|
|
|
|
|
425 |
|
|
Exclude: Global distribution center transition expense |
|
|
|
2,884 |
|
|
|
|
|
— |
|
|
Exclude: Restructuring expense |
|
|
|
— |
|
|
|
|
|
2,530 |
|
|
Adjusted EBITDA |
|
$ |
45,562 |
|
|
|
$ |
11,613 |
|
|
||
Adjusted EBITDA margin |
|
|
|
20.2 |
% |
|
|
|
|
5.5 |
% |
|
|
||||||
|
Year Ended |
|||||
|
2020 |
|
2019 |
|||
GAAP net income (loss) |
$ |
17,816 |
|
$ |
(17,819 |
) |
Non-GAAP items: |
|
|
|
|||
Stock-based compensation and related payroll tax |
|
12,817 |
|
|
16,790 |
|
Amortization expense related to acquisition |
|
1,011 |
|
|
1,012 |
|
Litigation and investigation expense (recovery) |
|
30 |
|
|
(1,066 |
) |
Non-recurring facilities expense |
|
795 |
|
|
425 |
|
Global distribution center transition expense |
|
2,884 |
|
|
— |
|
Restructuring expense and related taxes |
|
— |
|
|
2,676 |
|
Total non-GAAP items |
|
17,537 |
|
|
19,837 |
|
Non-GAAP net income (1) |
$ |
35,353 |
|
$ |
2,018 |
|
|
|
|
|
|||
GAAP net income (loss) per share: |
|
|
|
|||
Basic |
$ |
0.23 |
|
$ |
(0.23 |
) |
Diluted |
$ |
0.22 |
|
$ |
(0.23 |
) |
Non-GAAP items: |
|
|
|
|||
Stock-based compensation and related payroll tax |
|
0.16 |
|
|
0.22 |
|
Amortization expense related to acquisition |
|
0.01 |
|
|
0.01 |
|
Litigation and investigation expense (recovery) |
|
— |
|
|
(0.01 |
) |
Non-recurring facilities expense |
|
0.01 |
|
|
0.01 |
|
Global distribution center transition expense |
|
0.04 |
|
|
— |
|
Restructuring expense and related taxes |
|
— |
|
|
0.03 |
|
Total non-GAAP items |
|
0.22 |
|
|
0.26 |
|
Non-GAAP net income per share: (1) |
|
|
|
|||
Basic |
$ |
0.45 |
|
$ |
0.03 |
|
Diluted |
$ |
0.44 |
|
$ |
0.03 |
|
Weighted average shares used in computing net income per share: |
|
|
|
|||
Basic |
|
77,776 |
|
|
76,080 |
|
Diluted |
|
80,019 |
|
|
78,487 |
|
-
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
U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate adjusted net income and earnings per share in the same manner.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230207006075/en/
Investor Contact:
FNK IR
646.809.4048 / 646.349.6641
aten@fnkir.com
Chief Financial Officer
investors@a10networks.com
Source:
FAQ
What were A10 Networks' Q4 2022 financial results?
How did A10 Networks perform in 2022 compared to 2021?
What is the cash dividend announced by A10 Networks?
What is A10 Networks' outlook for 2023?
How has A10 Networks managed its operating expenses?
