A10 Networks, Inc. · NYSE:ATEN
A10 Networks — Q3 2024 Earnings Presentation
14 slides from A10 Networks's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Financial Results & Commentary
Q3 2024 Financial Results & Commentary November 7, 2024
Slide 2: Cautionary Statements & Disclosures
Cautionary Statements & Disclosures This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions, including statements regarding our future financial performance, strategy, demand, positioning, capital alloca
Slide 3: Agenda
Agenda ▪ Q3 2024 Overview ▪ Q3 Financial Performance ▪ Expanded Cybersecurity Platform
Slide 4: Q3'24: Enterprise Improvement, Service Provider Uptick
Q3’24: Enterprise Improvement, Service Provider Uptick Revenue Overview • Q3 Revenue increased 15.5% year-over-year • YTD Revenue increased 3.4% year-over-year • On YTD basis, Enterprise revenue increased 5.5% YOY and Service Provider revenue increased 2% YOY Consistent Profitability • Non-GAAP gros
Slide 5: Quarterly Revenue & Adjusted EBITDA
Quarterly Revenue & Adjusted EBITDA Revenue, $ Millions Revenue, $ Millions $70.4 $66.7 $66.7 $57.8 $60.7 $60.1 $57.8 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q3'24 Adjusted EBITDA, $ Millions Adjusted EBITDA, $ Millions $23.9 $17.8 $17.8 $14.4 $15.5 $13.9 $14.4 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q3'24
Slide 6: Quarterly Revenue by Customer Vertical
Quarterly Revenue by Customer Vertical YTD Enterprise Revenue, $ Millions Revenue, $ Millions $79.7 $75.6 $41.1 $36.7 $44.4 $28.7 $37.7 $33.4 $32.6 Q3'23 YTD Q3'24 YTD Service Provider $29.0 $29.3 $30.0 $25.1 $26.7 Revenue, $ Millions $21.4 $23.0 $107.8 $105.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'
Slide 7: Quarterly Revenue by Geography
Quarterly Revenue by Geography $ Millions 11% Q3’24 19% 16% 14% 17% 14% $66.7 million 21% 33% 26% 32% 35% 27% 41% 14% 37% 51% 35% 56% 57% 52% 51% 51% 45% 45% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Americas APJ EMEA
Slide 8: A10 and AI
A10 and AI Enable next-gen datacenters with ultra- 1 low-latency AI-ready platform, systems and solutions Improve response time of security 2 solutions 3 Protect and secure sensitive data A10 has deep history in using AI in security products, positioning us to support our customer’s roadmap 4 Provid
Slide 9: Consistent Value Creation
Consistent Value Creation Revenue Business Capital Growth Model Allocation
Slide 10: Appendix
Appendix 10 ©2023 A10 Networks, Inc. All rights reserved.
Slide 11: Financial Performance Trends
Financial Performance Trends $ Millions (except EPS) FY FY FY Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 2021 2022 2023 Revenue $54.8 $59.2 $65.4 $70.7 $250.0 $62.7 $68.0 $72.1 $77.6 $280.3 $57.7 $65.8 $57.8 $70.4 $251.7 $60.7 $60.1 $66.7 Non-GAAP Gross
Slide 12: GAAP to Non-GAAP – Gross Margin and EPS
GAAP to Non-GAAP – Gross Margin and EPS Year Ended Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Q2'24 Q3'24 Revenue $ 57.7 $ 65.8 $ 57.8 $ 70.4 $ 251.7 $ 60.7 $ 60.1 $ 66.7 Gross Margin % - Non-GAAP 83.1% 80.2% 81.8% 81.8% 81.7% 81.9% 80.9% 81.3% Income from operations % - Non-GAAP 23.1% 23.1% 20.6% 30
Slide 13: GAAP to Non-GAAP – Operating Income
GAAP to Non-GAAP – Operating Income Year Ended $ Millions Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Q2'24 Q3'24 Income from operations $ - GAAP $ 6.2 $ 12.3 $ 2.2 $ 18.0 $ 38.6 $ 7.2 $ 7.9 $ 10.4 Stock-based compensation 4.0 3.5 4.3 2.9 14.7 4.0 4.3 4.5 One-time tax planning expense - - - 0.5 0.5 -
Slide 14: GAAP to Non-GAAP – Adjusted EBITDA
GAAP to Non-GAAP – Adjusted EBITDA Year Ended $ Millions Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Q2'24 Q3'24 GAAP net income $ 4.0 $ 11.6 $ 6.5 $ 17.9 $ 40.0 $ 9.7 $ 9.5 $ 12.6 Exclude: Interest income and other (income) expense, net 1.2 (2.5) (2.8) (1.1) (5.1) (4.0) (3.1) (3.9) Exclude: Depreciat