Slide 1: Q2 2022 Financial Results & Commentary
Q2 2022 Financial Results & Commentary August 2, 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 future financial performance, strategy, routes to market, technical differe
Slide 3: Agenda
Agenda ▪ Q2 Overview ▪ Q2 Financial Performance ▪ FY 2022 Outlook
Slide 4: Q2'22: Continued Business Momentum
Q2’22: Continued Business Momentum Growth Highlights • Revenue grew 14.9% year-over-year, led by continued growth in security-led products • 33.7% revenue growth in the Americas Consistent Profitability • Adjusted EBTIDA was $18.0 million, or 26.4% of revenue • Non-GAAP Gross margin was 80.6% • Favo
Slide 5: Quarterly Revenue & Non-GAAP Operating Income
Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Revenue, $ Millions $70.7 $68.0 $68.0 $59.2 $65.4 $62.7 $59.2 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q2'22 Non-GAAP Operating Income, $ Millions Non-GAAP Operating Income, $ Millions $17.6 $16.1 $16.1 $14.5 $11.1 $11.7 $11.1 Q2'21 Q3'21
Slide 6: Quarterly Revenue by Customer Vertical
Quarterly Revenue by Customer Vertical Q2’22 39.1% 35.3% 36.7% 35.0% 34.9% $68.0 million 64.7% 63.3% 65.0% 65.1% 60.9% 34.9% 65.1% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Enterprise Service Provider
Slide 7: Quarterly Revenue by Geography
Quarterly Revenue by Geography $ Millions 11% 15% 14% 14% 15% 12% 17% 17% 19% 11% Q2’22 $68.0 million 32% 42% 36% 39% 28% 40% 43% 34% 35% 47% 11% 32% 57% 53% 57% 47% 46% 48% 49% 49% 48% 39% 43% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Americas APJ EMEA
Slide 8: Consistent Value Creation
Consistent Value Creation Revenue Business Capital Growth Model Allocation
Slide 9: Full-Year 2022 Outlook
Full-Year 2022 Outlook On track to achieve full-year guidance • 10 - 12% Revenue Growth • 26 - 28% Adjusted EBITDA
Slide 10: Appendix
Appendix 10 ©2022. A10 Networks, Inc. All rights reserved.
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 FY 2020 Q1’21 Q2’21 Q3’21 Q4’21 FY 2021 Q1’22 Q2’22 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 $65.4 $70.7 $250.0 $62.7 $68.0 Non-GAAP Gross Margin 76.3
Slide 12: GAAP to Non-GAAP – Gross Margin and EPS
GAAP to Non-GAAP – Gross Margin and EPS % of Revenue except EPS Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 Q2'22 Gross Margin % - GAAP 77.4% 78.2% 76.8% 78.5% 77.8% 77.2% 77.0% 79.8% 79.9% 78.6% 79.5% 80.2% Stock-based compensation 0.9% 0.6% 0.8% 0.6% 0.7% 1.2% 0.5% 0.6% 0
Slide 13: GAAP to Non-GAAP – Operating Income (Loss)
GAAP to Non-GAAP – Operating Income (Loss) $ Millions Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 Q2'22 Income (loss) from operations $ - GAAP $ (0.2) $ 3.9 $ 6.2 $ 7.8 $ 17.7 $ 4.0 $ 7.2 $ 10.3 $ 11.8 $ 33.4 $ 8.0 $ 13.1 Stock-based compensation 3.2 3.1 3.6 2.9 12.8 4.6 2.
Slide 14: GAAP to Non-GAAP – Adjusted EBITDA
GAAP to Non-GAAP – Adjusted EBITDA $ Millions Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 Q2'22 GAAP net income (loss) $ (0.3) $ 3.8 $ 6.5 $ 7.8 $ 17.8 $ 2.7 $ 6.6 $ 74.9 $ 10.7 $ 94.9 $ 6.3 $ 10.4 Exclude: Interest expense - 0.0 - - 0.0 - - - - - - - Exclude: Interest inco