A10 Networks, Inc. · NYSE:ATEN
A10 Networks — Q4 2024 Earnings Presentation
15 slides from A10 Networks's earnings presentation, Feb 4, 2025
Slide 1: Q4 2024 Financial Results & Commentary
Q4 2024 Financial Results & Commentary February 4, 2025
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 ▪ Q4 2024 Overview ▪ Full-Year 2024 Overview ▪ Q4 Financial Performance ▪ Enhanced R&D Processes
Slide 4: Q4'24: Improving Market Conditions
Q4’24: Improving Market Conditions Revenue Overview • Q4 Revenue increased 5.4% year-over-year • Full-Year 2024 Revenue increased 4.0% • On a full-year basis, Enterprise revenue increased 6.1% YOY and Service Provider revenue increased 2.5% YOY Consistent Profitability • Non-GAAP gross margins of 80
Slide 5: Quarterly Revenue & Adjusted EBITDA
Quarterly Revenue & Adjusted EBITDA Revenue, $ Millions Revenue, $ Millions $74.2 $70.4 $66.7 $74.2 $60.7 $60.1 $70.4 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q4'24 Adjusted EBITDA, $ Millions Adjusted EBITDA, $ Millions $27.3 $23.9 $27.3 $17.8 $23.9 $15.5 $13.9 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q4'24
Slide 6: Full-Year Revenue & Adjusted EBITDA
Full-Year Revenue & Adjusted EBITDA Revenue, $ Millions $280.3 $261.7 $250.0 $251.7 2021 2022 2023 2024 Adjusted EBITDA, $ Millions $75.1 $74.5 $71.2 $62.3 2021 2022 2023 2024 Adjusted EBITDA is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparable GAAP financial measures.
Slide 7: Revenue by Customer Vertical
Revenue by Customer Vertical FY Enterprise Revenue, $ Millions Revenue, $ Millions $104.9 $111.3 $42.7 $41.1 $36.7 $28.7 $37.7 $33.4 2023 2024 $31.5 FY Service Provider $29.0 $29.3 $30.0 $26.7 Revenue, $ Millions $23.0 $150.4 $146.8 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Service Provider Enterprise 202
Slide 8: Quarterly Revenue by Geography
Quarterly Revenue by Geography $ Millions Q4’24 16% 14% 17% 14% 17% $74.2 million 26% 35% 27% 41% 32% 17% 27% 56% 57% 56% 51% 51% 45% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Americas APJ EMEA
Slide 9: What We Do
What We Do Hybrid Infrastructure 2 A10 Control: 4 Long term and AI buildout Analytics, Insights and Automation Management Layer that support third party solutions A10 Infrastructure A10 Defend A Unified software 1 A10 Platform 3 Provide a common platform to deliver way to manage best in class techni
Slide 10: Consistent Value Creation
Consistent Value Creation Revenue Business Capital Growth Model Allocation
Slide 11: Appendix
Appendix 11 ©2025 A10 Networks, Inc. All rights reserved.
Slide 12: Financial Performance Trends
Financial Performance Trends $ Millions (except EPS) FY 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 Q4’24 2021 2022 2023 2024 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
Slide 13: GAAP to Non-GAAP – Gross Margin and EPS
GAAP to Non-GAAP – Gross Margin and EPS Year Ended Year Ended Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Q2'24 Q3'24 Q4'24 Dec 31 2024 Revenue $ 57.7 $ 65.8 $ 57.8 $ 70.4 $ 251.7 $ 60.7 $ 60.1 $ 66.7 $ 74.2 $ 261.7 Gross Margin % - Non-GAAP 83.1% 80.2% 81.8% 81.8% 81.7% 81.9% 80.9% 81.3% 80.6% 81.2%
Slide 14: GAAP to Non-GAAP – Operating Income
GAAP to Non-GAAP – Operating Income Year Ended Year Ended $ Millions Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Q2'24 Q3'24 Q4'24 Dec 31 2024 Income from operations $ - GAAP $ 6.2 $ 12.3 $ 2.2 $ 18.0 $ 38.6 $ 7.2 $ 7.9 $ 10.4 $ 18.4 $ 44.0 Stock-based compensation 4.0 3.5 4.3 2.9 14.7 4.0 4.3 4.5 4.8
Slide 15: GAAP to Non-GAAP – Adjusted EBITDA
GAAP to Non-GAAP – Adjusted EBITDA Year Ended Year Ended $ Millions Q1'23 Q2'23 Q3'23 Q4'23 Dec 31 2023 Q1'24 Q2'24 Q3'24 Q4'24 Dec 31 2024 GAAP net income $ 4.0 $ 11.6 $ 6.5 $ 17.9 $ 40.0 $ 9.7 $ 9.5 $ 12.6 $ 18.3 $ 50.1 Exclude: Interest income and other (income) expense, net 1.2 (2.5) (2.8) (1.1)