Slide 1: Q1 2022 Financial Results & Commentary
Q1 2022 Financial Results & Commentary May 3, 2022 11 ©2022 A10 Networks, Inc. All rights reserved.
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 strategy, routes to market, technical differentiation, positioning, capital
Slide 3: Agenda
Agenda ▪ Q1 Overview ▪ Q1 Financial Performance ▪ FY 2022 Outlook 3 ©2022 A10 Networks, Inc. All rights reserved.
Slide 4: Q1'22: Continued Business Momentum
Q1’22: Continued Business Momentum Growth Highlights • Revenue grew 14.3% year-over-year, led by the Americas which grew 25.5% driven by security • Security-led product revenue grew 20.1% year-over-year Consistent Profitability • Adjusted EBTIDA was $13.5 million or 21.6% of revenue • Non-GAAP Gross
Slide 5: Quarterly Revenue & Non-GAAP Operating Income
Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Revenue, $ Millions $70.7 $62.7 $65.4 $62.7 $59.2 $54.8 $54.8 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q1'22 Non-GAAP Opera ng Income, $ Non-GAAP Opera ng Income, $ Millions Millions $17.6 $11.7 $14.5 $10.8 $11.1 $11.7 $10.8 Q1'21 Q2'21 Q3
Slide 6: Quarterly Revenue by Customer Vertical
Quarterly Revenue by Customer Vertical Q1’22 $62.7 million 38.0% 39.1% 35.3% 36.7% 35.0% 64.7% 63.3% 65.0% 62.0% 60.9% 35% 65% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Service Provider Enterprise 6 ©2022 A10 Networks, Inc. All rights reserved.
Slide 7: Quarterly Revenue by Geography
Quarterly Revenue by Geography $ Millions 11% 15% 14% 14% 15% 12% 17% 19% Q1’22 20% $62.7 million 42% 39% 20% 28% 40% 43% 36% 35% 19% 47% 53% 28% 59% 48% 49% 53% 47% 46% 48% 39% 43% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Americas APJ EMEA 7 ©2022 A10 Networks, Inc. All rights reserved
Slide 8: Consistent Value Creation
Consistent Value Creation Revenue Business Capital Growth Model Allocation 8 ©2022 A10 Networks, Inc. All rights reserved.
Slide 9: Full Year 2022 Outlook
Full Year 2022 Outlook Well positioned to achieve the high end of our full year guidance • 10 - 12% Revenue Growth • 26 - 28% Adjusted EBITDA 9 ©2022 A10 Networks, Inc. All rights reserved.
Slide 10: Appendix
Appendix 10 ©2022 A10 Networks, Inc. All rights reserved.
Slide 11: Financial Performance Trends
Financial Performance Trends $ Millions (except EPS) FY FY FY Q1'19 Q2'19 Q3’19 Q4'19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 2019 2020 2021 Revenue $50.3 $49.2 $52.8 $60.3 $212.6 $53.8 $52.5 $56.6 $62.7 $225.5 $54.8 $59.2 $65.4 $70.7 $250.0 $62.7 Non-GAAP Gross Margin 76.3% 78.0% 78.1
Slide 12: GAAP to Non-GAAP – Gross Margin and EPS
GAAP to Non-GAAP – Gross Margin and EPS % of Revenue except EPS Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 Gross Margin % - GAAP 77.4% 78.2% 76.8% 78.5% 77.8% 77.2% 77.0% 79.8% 79.9% 78.6% 79.5% Stock-based compensation 0.9% 0.6% 0.8% 0.6% 0.7% 1.2% 0.5% 0.6% 0.6% 0.7% 0.7
Slide 13: GAAP to Non-GAAP – Operating Income (Loss)
GAAP to Non-GAAP – Operating Income (Loss) $ Millions Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 $ Income (loss) from operations $ - GAAP (0.2) $ 3.9 $ 6.2 $ 7.8 $ 17.7 $ 4.0 $ 7.2 $ 10.3 $ 11.8 $ 33.4 $ 8.0 Stock-based compensation 3.2 3.1 3.6 2.9 12.8 4.6 2.6 4.2 3.6 15.
Slide 14: GAAP to Non-GAAP – Adjusted EBITDA
GAAP to Non-GAAP – Adjusted EBITDA $ Millions Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 GAAP net income (loss) $ (0.3) $ 3.8 $ 6.5 $ 7.8 $ 17.8 $ 2.7 $ 6.6 $ 74.9 $ 10.7 $ 94.9 $ 6.3 Exclude: Interest expense - 0.0 - - 0.0 - - - - - - Exclude: Interest income and other (i
Slide 15: Quarterly Recurring Revenue
Quarterly Recurring Revenue $30 $ Millions $23 $15 $29.9 $29.0 $27.3 $27.9 $25.7 $8 $0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 15 ©2022 A10 Networks, Inc. All rights reserved.