A10 Networks, Inc. · NYSE:ATEN

A10 Networks — Q1 2024 Earnings Presentation

13 slides from A10 Networks's earnings presentation, Apr 30, 2024

  1. Slide 1: Q1 2024 Financial Results & Commentary

    Q1 2024 Financial Results & Commentary April 30, 2024

  2. 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

  3. Slide 3: Agenda

    Agenda ▪ Q1 2024 Overview ▪ Q1 Financial Performance ▪ FY 2024 Outlook

  4. Slide 4: Q1'24: In-line Revenue Growth & EPS Expansion

    Q1’24: In-line Revenue Growth & EPS Expansion Revenue Overview • Q1 revenue increased 5.2% year-over-year • Improvement from Service Providers represents an encouraging data point amidst an unpredictable economic environment Consistent Profitability • Non-GAAP gross margins of 81.9% • GAAP EPS of $0

  5. Slide 5: Quarterly Revenue & Adjusted EBITDA

    Quarterly Revenue & Adjusted EBITDA Revenue, $ Millions Revenue, $ Millions $70.4 $65.8 $60.7 $57.7 $57.8 $60.7 $57.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q1'24 Adjusted EBITDA, $ Millions Adjusted EBITDA, $ Millions $23.9 $17.4 $15.5 $15.5 $14.4 $13.9 $13.9 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q1'24

  6. Slide 6: Quarterly Revenue by Customer Vertical

    Quarterly Revenue by Customer Vertical Q1’24 $60.7 million 32.6% 41.6% 38.0% 43.6% 50.3% 67.4% 62.0% 56.4% 58.4% 38% 49.7% 62% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Enterprise Service Provider

  7. Slide 7: Quarterly Revenue by Geography

    Quarterly Revenue by Geography $ Millions 11% 11% Q1’24 12% 14% 14% 17% 17% 19% 16% 21% 19% 16% $60.7 million 32% 33% 26% 39% 28% 34% 33% 34% 35% 27% 41% 14% 37% 45% 41% 53% 57% 53% 56% 57% 49% 49% 48% 50% 52% 45% 45% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Americas A

  8. Slide 8: Consistent Value Creation

    Consistent Value Creation Revenue Business Capital Growth Model Allocation

  9. Slide 9: Appendix

    Appendix 9 ©2023 A10 Networks, Inc. All rights reserved.

  10. Slide 10: Financial Performance Trends

    Financial Performance Trends $ Millions (except EPS) Q1’21 Q2’21 Q3’21 Q4’21 FY 2021 Q1’22 Q2’22 Q3’22 Q4’22 FY 2022 Q1’23 Q2’23 Q3’23 Q4’23 FY 2023 Q1’24 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 Non-GAAP Gross 78.9% 77.9% 80.4% 80.7%

  11. Slide 11: GAAP to Non-GAAP – Gross Margin and EPS

    GAAP to Non-GAAP – Gross Margin and EPS Years Ended Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Revenue $ 57.7 $ 65.8 $ 57.8 $ 70.4 $ 251.7 $ 60.7 Gross Margin % - Non-GAAP 83.1% 80.2% 81.8% 81.8% 81.7% 81.9% Income from operations % - Non-GAAP 23.1% 23.1% 20.6% 30.4% 24.6% 18.5% Adjusted EBITDA - Non

  12. Slide 12: GAAP to Non-GAAP – Operating Income

    GAAP to Non-GAAP – Operating Income Years Ended $ Millions Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Income from operations $ - GAAP $ 6.2 $ 12.3 $ 2.2 $ 18.0 $ 38.6 $ 7.2 Stock-based compensation 4.0 3.5 4.3 2.9 14.7 4.0 One-time tax planning expense - - - 0.5 0.5 - Capitalized project impairment -

  13. Slide 13: GAAP to Non-GAAP – Adjusted EBITDA

    GAAP to Non-GAAP – Adjusted EBITDA Years Ended $ Millions Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 GAAP net income $ 4.0 $ 11.6 $ 6.5 $ 17.9 $ 40.0 $ 9.7 Exclude: Interest income and other (income) expense, net 1.2 (2.5) (2.8) (1.1) (5.1) (4.0) Exclude: Depreciation & amortization expense 2.1 2.2 2

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