A10 Networks, Inc. · NYSE:ATEN

A10 Networks — Q1 2025 Earnings Presentation

15 slides from A10 Networks's earnings presentation, May 1, 2025

  1. Slide 1: Q1 2025 Financial Results & Commentary

    Q1 2025 Financial Results & Commentary May 1, 2025

  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 quarterly dividend payments and stock repurchase program, strategy, positio

  3. Slide 3: Agenda

    Agenda ▪ Q1 2025 Overview ▪ ThreatX Protect Acquisition ▪ Strengthened Balance Sheet

  4. Slide 4: Q1'25: Broad-Based Improvements

    Q1’25: Broad-Based Improvements Revenue Overview • Q1 Revenue increased 9% year-over-year • Enterprise revenue up 18% • Service provider revenue up 3% Consistent Profitability • Non-GAAP gross margins of 80.9% in Q1’25 • GAAP EPS of $0.13, unchanged from Q1’24 • Non-GAAP EPS of $0.20 compared to $0.

  5. Slide 5: Quarterly Revenue & Adjusted EBITDA

    Quarterly Revenue & Adjusted EBITDA Revenue, $ Millions Revenue, $ Millions $74.2 $66.7 $66.1 $60.7 $60.1 $66.1 $60.7 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q1'25 Adjusted EBITDA, $ Millions Adjusted EBITDA, $ Millions $27.3 $19.5 $13.9 $19.5 $17.8 $15.5 $13.9 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q1'25

  6. Slide 6: Revenue by Customer Vertical

    Revenue by Customer Vertical Enterprise Revenue, $ Millions Revenue, $ Millions $27.1 $23.0 $42.7 $41.1 $36.7 $39.0 $37.7 $33.4 Q1'24 Q1'25 $31.5 Service Provider $29.3 $30.0 $26.7 $27.1 Revenue, $ Millions $23.0 $39.0 $37.3 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Service Provider Enterprise Q1'24 Q1'25

  7. Slide 7: Quarterly Revenue by Geography

    Quarterly Revenue by Geography $ Millions Q1’24 14% 17% 14% 17% $66.1 million 21% 32% 35% 27% 41% 28% 21% 51% 28% 51% 51% 56% 51% 45% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Americas APJ EMEA

  8. Slide 8: 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

  9. Slide 9: Consistent Value Creation

    Consistent Value Creation Revenue Business Capital Growth Model Allocation

  10. Slide 10: Strong Balance Sheet

    Strong Balance Sheet (In $ millions) March 31, December 31, Long-Term Debt 2025 2024 • $225 million Convertible Senior Cash and Cash Equivalents $243.8 $95.1 Notes Marketable Securities $112.0 $100.4 • Issued March 2025 maturing Total Assets $606.2 $432.8 April 2030 • Coupon rate of 2.75% per Long-T

  11. Slide 11: Appendix

    Appendix 11 ©2025 A10 Networks, Inc. All rights reserved.

  12. Slide 12: Financial Performance Trends

    Financial Performance Trends $ Millions (except EPS) FY Q1’22 Q2’22 Q3’22 Q4’22 FY 2022 Q1’23 Q2’23 Q3’23 Q4’23 FY 2023 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 2024 Revenue $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 $74.2 $261.7 $66.1 Non-GAAP 80.2% 80.6% 80.2% 80.3% 80.3%

  13. Slide 13: GAAP to Non-GAAP – Gross Margin and EPS

    GAAP to Non-GAAP – Gross Margin and EPS Year Ended Q1'24 Q2'24 Q3'24 Q4'24 Dec 31 2024 Q1'25 Revenue $ 60.7 $ 60.1 $ 66.7 $ 74.2 $ 261.7 $ 66.1 Gross Margin % - Non-GAAP 81.9% 80.9% 81.3% 80.6% 81.2% 80.9% Income from operations % - Non-GAAP 18.5% 21.1% 22.6% 32.7% 24.2% 24.4% Adjusted EBITDA - Non-

  14. Slide 14: GAAP to Non-GAAP – Operating Income

    GAAP to Non-GAAP – Operating Income Year Ended $ Millions Q1'24 Q2'24 Q3'24 Q4'24 Dec 31 2024 Q1'25 Income from operations $ - GAAP $ 7.2 $ 7.9 $ 10.4 $ 18.4 $ 44.0 $ 8.8 Stock-based compensation 4.0 4.3 4.5 4.8 17.6 6.3 Tax planning expense - 0.4 0.1 - 0.5 - One-time legal expense - 0.1 - - 0.1 0.5

  15. Slide 15: GAAP to Non-GAAP – Adjusted EBITDA

    GAAP to Non-GAAP – Adjusted EBITDA Year Ended $ Millions Q1'24 Q2'24 Q3'24 Q4'24 Dec 31 2024 Q1'25 GAAP net income $ 9.7 $ 9.5 $ 12.6 $ 18.3 $ 50.1 $ 9.5 Exclude: Interest income and other (income) expense, net (4.0) (3.1) (3.9) (3.1) (14.1) (1.7) Exclude: Depreciation & amortization expense 2.7 2.8

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