A10 Networks, Inc. · NYSE:ATEN
A10 Networks — Q2 2021 Earnings Presentation
17 slides from A10 Networks's earnings presentation, Jul 27, 2021
Slide 1: Q2 2021 Financial Results & Commentary
Q2 2021 Financial Results & Commentary Dhrupad Trivedi, Brian Becker, CEO CFO July 27, 2021 Always Secure. Always Available.
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, margins, near term expectations, including a continued focus on a
Slide 3: Agenda
Agenda ▪ Introduction ▪ Q2 Overview ▪ Q2 Financial Performance 3
Slide 4: A10 At-a-Glance
A10 At-a-Glance Large installed base and best-in-class solutions aligned Key Financials with secular tailwinds • Delivering solutions for managing data growth with integrated security • Geographically diversified with a global presence • Directly aligned with trends in cybersecurity, 5G and cloud su
Slide 5: Q2'21: Strong Execution, Capturing Share
Q2’21: Strong Execution, Capturing Share • Growth and diversification • Revenue grew 12.7% YoY • Recurring revenue increased 7% year-over-year; YTD recurring revenue growth outpacing consolidated revenue • Deferred revenue reaches a record $116.3 million • Record profitability • Quarterly net income
Slide 6: Quarterly Recurring Revenue
Quarterly Recurring Revenue $120.0 $120.0 $ Millions $28.2 $28.4 $27.1 $25.5 $25.7 $24.8 $4.6 $4.3 $24.4 $3.3 $23.4 $23.4 $23.7 $2.3 $23.0 $22.9 $2.4 $3.0 $22.1 $2.7 $1.5 $21.4 $1.2 $1.8 $2.2 $1.7 $1.2 $1.1 $31.0 $23.6 $24.1 $23.4 $23.8 $21.8 $21.7 $21.7 $22.4 $22.2 $22.5 $20.3 $20.9 $21.1 $21.2 Q1'
Slide 7: Quarterly Revenue & Non-GAAP Operating Income
Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Revenue, $ Millions $62.7 $59.2 $59.2 $56.6 $52.5 $54.8 $52.5 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q2'20 Q2'21 Non-GAAP Operating Income, $ Millions Non-GAAP Operating Income, $ Millions $13.9 $11.1 $10.8 $11.1 $10.0 $7.2 $7.2 Q2'20 Q3'20 Q4
Slide 8: Quarterly Revenue by Customer Vertical
Quarterly Revenue by Customer Vertical Q2’21 40.5% 40.0% 38.0% 39.1% $59.2 million 42.1% 60.0% 62.0% 60.9% 57.9% 59.5% 39% 61% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Enterprise Service Provider 8
Slide 9: Quarterly Revenue by Geography
Quarterly Revenue by Geography $ Millions 11% 15% 14% 15% 16% 12% Q2’21 9% $59.2 million 13% 15% 15% 13% 12% 33% 26% 12% 24% 25% 30% 32% 13% 49% 26% 47% 46% 48% 49% 39% 43% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Americas Japan APAC ex Japan EMEA 9
Slide 10: Quarterly Revenue & Non-GAAP Operating Income
Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Non-GAAP Operating Income, $ Millions $11.1 $59.2 $7.2 $52.5 Q2'20 Q2'21 Q2'20 Q2'21 Operating Profit is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparable GAAP financial measures. 10
Slide 11: Financial Performance Trends
Financial Performance Trends $ Millions (except EPS) Q1'19 Q2'19 Q3’19 Q4'19 FY 2019 Q1’20 Q2’20 Q3’20 Q4’20 FY2020 Q1’21 Q2’21 Revenue $50.3 $49.2 $52.8 $60.3 $212.6 $53.8 $52.5 $56.6 $62.7 $225.5 $54.8 $59.2 Non-GAAP Gross Margin % 76.3% 78.0% 78.1% 78.5% 77.8% 78.3% 78.8% 77.6% 79.6% 78.6% 78.9%
Slide 12: Q3'2021 Outlook
Q3'2021 Outlook • Revenue of $60.6 to $63.4 million • We expect to grow our bottom-line faster than our top line 12
Slide 13: Appendix
Appendix 13
Slide 14: GAAP to Non-GAAP — Gross Margin and EPS
GAAP to Non-GAAP — Gross Margin and EPS % of Revenue except EPS Q1'19 Q2'19 Q3'19 Q4'19 FY 2019 Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Gross Margin % - GAAP 75.6% 77.1% 77.4% 77.7% 77.0% 77.4% 78.2% 76.8% 78.5% 77.8% 77.2% 77.0% Stock-based compensation 0.6% 1.0% 0.6% 0.8% 0.7% 0.9% 0.6% 0.8% 0
Slide 15: GAAP to Non-GAAP — Operating Income (Loss)
GAAP to Non-GAAP — Operating Income (Loss) $ Millions Q1'19 Q2'19 Q3'19 Q4'19 FY 2019 Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Income (loss) from operations $ - GAAP $ (11.0) $ (6.4) $ 0.2 $ 0.1 $ (17.1) $ (0.2) $ 3.9 $ 6.2 $ 7.8 $ 17.7 $ 4.0 $ 7.2 Stock-based compensation 3.9 5.0 3.5 4.3 16.8 3.
Slide 16: GAAP to Non-GAAP — Adjusted EBITDA
GAAP to Non-GAAP — Adjusted EBITDA $ Millions Q1'19 Q2'19 Q3'19 Q4'19 FY 2019 Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 GAAP net income (loss) $ (12.3) $ (5.8) $ 0.2 $ 0.1 $ (17.8) $ (0.3) $ 3.8 $ 6.5 $ 7.8 $ 17.8 $ 2.7 $ 6.6 Exclude: Interest expense 0.2 0.0 0.0 0.0 0.2 - 0.0 - - 0.0 - - Exclude:
Slide 17: Thank You
Thank You Investors@A10networks.com Always Secure. Always Available.