A10 Networks, Inc. · NYSE:ATEN
A10 Networks — Q1 2022 Earnings Presentation
16 slides from A10 Networks's earnings presentation, May 3, 2022
Slide 1: Q1 2022 Financial Results & Commentary
Q1 2022 Financial Results & Commentary May 3, 2022
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
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 Operating Profit is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparable GAAP financial measures. $54.8 $59.2 $65.4 $70.7 $62.7 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Revenue, $ Millions $10.8 $11.1 $14.5 $17.6 $11.7 Q1'21 Q2'21 Q3'21
Slide 6: Quarterly Revenue by Customer Vertical
65% 35% Q1’22 $62.7 million Quarterly Revenue by Customer Vertical 62.0% 60.9% 64.7% 63.3% 65.0% 38.0% 39.1% 35.3% 36.7% 35.0% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Enterprise Service Provider
Slide 7: Quarterly Revenue by Geography
Quarterly Revenue by Geography 47% 46% 39% 43% 48% 49% 49% 48% 53% 42% 40% 47% 43% 36% 39% 17% 35% 28% 11% 15% 14% 14% 15% 12% 17% 17% 19% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 $ Millions Americas APJ EMEA 53% 28% 19% Q1’21 $62.7 million
Slide 8: Consistent Value Creation
Consistent Value Creation Business Model Revenue Growth Capital Allocation
Slide 9: Full Year 2022 Outlook
Well positioned to achieve the high end of our full year guidance • 10 - 12% Revenue Growth • 26 - 28% Adjusted EBITDA Full Year 2022 Outlook
Slide 10: Appendix
Appendix 10 ©2022. A10 Networks, Inc. All rights reserved.
Slide 11: Financial Performance Trends
Financial Performance Trends Numbers may not sum due to rounding. Please refer to the supplemental financials posted in the “Investor Relations” section of the A10 Networks website at investors.a10networks.com Gross Margin %, Operating Margin %, Adjusted EBITDA and EPS are Non-GAAP Financial Measure
Slide 12: GAAP to Non-GAAP – Gross Margin and EPS
GAAP to Non-GAAP – Gross Margin and EPS Numbers may not sum due to rounding. EPS data is presented on a basic and diluted basis. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.a10networks.com. % of Revenue except EPS Q1'20
Slide 13: GAAP to Non-GAAP – Operating Income (Loss)
GAAP to Non-GAAP – Operating Income (Loss) Numbers may not sum due to rounding. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.a10networks.com. $ Millions Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'
Slide 14: GAAP to Non-GAAP – Adjusted EBITDA
GAAP to Non-GAAP – Adjusted EBITDA Numbers may not sum due to rounding. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.a10networks.com. $ Millions Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 GAAP
Slide 15: Quarterly Recurring Revenue
Quarterly Recurring Revenue $25.7 $24.0 $29.0 $29.9 $27.9 $23 $24 $25 $26 $27 $28 $29 $30 $31 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 $ Millions
Slide 16: TTM Recurring Revenue
TTM Recurring Revenue $85.5 $85.8 $85.8 $86.5 $87.5 $88.7 $90.6 $92.3 $93.5 $95.1 $96.2 $98.0 $99.7 $7.0 $8.0 $8.4 $8.1 $7.8 $8.6 $11.5 $13.4 $14.1 $14.4 $14.1 $13.1 $13.7 $92.5 $93.8 $94.2 $94.5 $95.3 $97.3 $102.1 $105.7 $107.6 $109.5 $110.3 $111.0 $113.3 Q1'19 TTM Q2'19 TTM Q3'19 TTM Q4'19 TTM Q1'