A10 Networks, Inc. · NYSE:ATEN

A10 Networks — Q1 2023 Earnings Presentation

13 slides from A10 Networks's earnings presentation, May 4, 2023

  1. Slide 1: Q1 2023 Financial Results & Commentary

    Q1 2023 Financial Results & Commentary May 4, 2023

  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, routes to market, technical differe

  3. Slide 3: Agenda

    Agenda ▪ Q1 Overview ▪ Q1 Financial Performance ▪ FY 2023 Outlook

  4. Slide 4: Q1'23: Continued Profitability; Revenue Challenges

    Q1’23: Continued Profitability; Revenue Challenges Revenue Overview • Q1 revenue decreased 7.9% year-over-year • Buying pauses from tier-one service providers in North America due to the economy • No deals lost to competitors, just delayed Consistent Profitability • Adjusted EBITDA was $15.5 million

  5. Slide 5: Quarterly Revenue & Non-GAAP Operating Income

    Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Revenue, $ Millions $77.6 $62.7 $72.1 $68.0 $57.7 $62.7 $57.7 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q1'23 Non-GAAP Operating Income, $ Millions Non-GAAP Operating Income, $ Millions $19.5 $19.8 $13.4 $16.1 $11.7 $13.4 $11.7 Q1'22 Q2'22

  6. Slide 6: Quarterly Revenue by Customer Vertical

    Quarterly Revenue by Customer Vertical Q1’23 $57.7 million 35.0% 34.9% 30.8% 37.6% 43.6% 69.2% 65.0% 65.1% 62.4% 56.4% 43.6% 56.4% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Enterprise Service Provider

  7. Slide 7: Quarterly Revenue by Geography

    Quarterly Revenue by Geography $ Millions 11% Q1’23 12% 14% 16% 17% 17% 19% 16% 21% $57.7 million 32% 39% 28% 34% 33% 36% 34% 35% 27% 21% 52% 27% 53% 57% 53% 52% 48% 49% 49% 48% 50% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Americas APJ EMEA

  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) FY FY FY Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 2020 2021 2022 Revenue $53.8 $52.5 $56.6 $62.7 $225.5 $54.8 $59.2 $65.4 $70.7 $250.0 $62.7 $68.0 $72.1 $77.6 $280.3 $57.7 Non-GAAP Gross 78.3% 78.8% 77.6% 79.6%

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

    GAAP to Non-GAAP – Gross Margin and EPS Year Ended % of Revenue except EPS Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Dec 31 2022 Gross Margin % - GAAP 79.5% 80.2% 79.5% 79.7% 82.3% 79.7% Stock-based compensation 0.7% 0.5% 0.7% 0.5% 0.8% 0.6% Global distribution center transition expense 0.0% 0.0% 0.0% 0.0% 0.0%

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

    GAAP to Non-GAAP – Operating Income Year Ended $ Millions Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Dec 31 2022 Income from operations $ - GAAP $ 8.0 $ 13.1 $ 15.7 $ 16.3 $ 6.2 $ 53.1 Stock-based compensation 3.7 2.9 3.8 3.5 4.0 14.0 Restructuring expense - - - - 1.9 - Cyber incident remediation expense - - - -

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

    GAAP to Non-GAAP – Adjusted EBITDA Year Ended $ Millions Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Dec 31 2022 GAAP net income $ 6.3 $ 10.4 $ 12.1 $ 18.0 $ 4.0 $ 46.9 Exclude: Interest income and other (income) expense, net 0.5 (0.5) 0.4 (0.1) 1.2 0.4 Exclude: Depreciation & amortization expense 1.8 1.9 1.8 2.5

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