A10 Networks, Inc. · NYSE:ATEN
A10 Networks — Q1 2021 Earnings Presentation
17 slides from A10 Networks's earnings presentation, Apr 27, 2021
Slide 1: Q1 2021 Financial Results & Commentary
Q1 2021 Financial Results & Commentary April 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 positioning, global business environment, strategy, including portfolio man
Slide 3: Agenda
Agenda • Introduction • Q1 Overview • Q1 Financial Performance 3
Slide 4: A10 at a Glance
A10 at a Glance Enabling a Secure and Available Digital World IoT Shift to 5G Operational Security Proliferation Cloud Deployment Complexity Threats $225M $113M 78.8% 7,800+ Q1’21 NON-GAAP 2020 ANNUAL DEFERRED REV CUSTOMERS GROSS MARGIN REVENUE AS OF 3/31/21 $161M CASH & MARKETABLE $0 SECURITIES DEB
Slide 5: Q1'21: Building on our Successes
Q1’21: Building on our Successes • Accelerating recurring revenue • Recurring revenue increased 8% year-over-year • Deferred revenue reaches a record $113.2 million, up approximately 12% year-over-year • Record profitability • Quarterly operating expenses reduced by approximately $5.6 million, or ap
Slide 6: Near-term Expectations
Near-term Expectations • Increasing focus on higher growth portfolio • Deliver integrated solutions that drive established strengths in cybersecurity, 5G, network availability • Grow recurring revenue faster than overall revenue growth • Guidance • Targeting sustainable growth of 6-8% annually with
Slide 7: Quarterly Recurring Revenue
$120.0 Quarterly Recurring Revenue $ Millions $28.2 $28.4 $25.5 $4.3 $25.6 $24.4 $24.8 $4.6 $23.4 $23.4 $23.7 $2.2 $23.0 $22.9 $2.4 $3.0 $22.1 $2.7 $1.7 $1.5 $21.4 $1.2 $1.8 $2.2 $1.2 $1.1 $31.0 $23.6 $24.1 $23.4 $21.8 $21.7 $21.7 $22.4 $22.2 $22.5 $20.3 $20.9 $21.1 $21.2 Q1'18 Q2'18 Q3'18 Q4'18 Q1'
Slide 8: Quarterly Revenue & Non-GAAP Operating Income
Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Revenue, $ Millions $62.7 $53.8 $54.8 $56.6 $54.8 $53.8 $52.5 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q1'21 Non-GAAP Operating Income, $ Millions Non-GAAP Operating Income, $ Millions $13.9 $10.8 $10.8 $10.0 $7.2 $4.1 $4.1 Q1'20 Q2'20 Q3'
Slide 9: Quarterly Revenue by Customer Vertical
Quarterly Revenue by Customer Vertical Q1’21 34.9% 40.5% 40.0% 38.0% $54.8 million 42.1% 65.1% 60.0% 62.0% 57.9% 59.5% 38% 62% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Enterprise Service Provider 9
Slide 10: Quarterly Revenue by Geography
Quarterly Revenue by Geography $ Millions 11% 15% 14% 15% 16% Q1’21 9% $54.8 million 15% 15% 13% 12% 33% 24% 25% 16% 30% 32% 12% 48% 25% 47% 46% 48% 39% 43% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Americas Japan APAC ex Japan EMEA 10
Slide 11: Quarterly Revenue & Non-GAAP Operating Income
Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Non-GAAP Operating Income, $ Millions $54.8 $10.8 $53.8 $4.1 Q1'20 Q1'21 Q1'20 Q1'21 Operating Profit is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparable GAAP financial measures. 11
Slide 12: 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 Revenue $50.3 $49.2 $52.8 $60.3 $212.6 $53.8 $52.5 $56.6 $62.7 $225.5 $54.8 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% Non-GAAP Ope
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 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% Stock-based compensation 0.6% 1.0% 0.6% 0.8% 0.7% 0.9% 0.6% 0.8% 0.6% 0.7% 1.2
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 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 Stock-based compensation 3.9 5.0 3.5 4.3 16.8 3.2 3.1 3.6 2.
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 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 Exclude: Interest expense 0.2 0.0 0.0 0.0 0.2 - 0.0 - - 0.0 - Exclude: Interest inco
Slide 17: Thank You
Thank You Investors@a10networks.com Always Secure. Always Available.