A10 Networks, Inc. · NYSE:ATEN

A10 Networks — Q4 2023 Earnings Presentation

14 slides from A10 Networks's earnings presentation, Feb 6, 2024

1. Slide 1: Q4 2023 Financial Results & Commentary

   Q4 2023 Financial Results & Commentary February 6, 2024

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, demand, positioning, capital alloca

3. Slide 3: Agenda

   Agenda ▪ Q4 and FY2023 Overview ▪ Q4 Financial Performance ▪ FY 2024 Outlook

4. Slide 4: Q4'23: Expanded Profitability Despite Revenue Headwinds

   Q4’23: Expanded Profitability Despite Revenue Headwinds Revenue Overview • Q4 revenue decreased 9.3% year-over-year • Continued challenges from tier-one Service Providers in North America partially offset by strength with Enterprise customers • Enterprise customer revenue up 23%; Service provider cu

5. Slide 5: Quarterly Revenue & Adjusted EBITDA

   Quarterly Revenue & Adjusted EBITDA Revenue, $ Millions Revenue, $ Millions $77.6 $77.6 $70.4 $65.8 $70.4 $57.7 $57.8 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q4'23 Adjusted EBITDA, $ Millions Adjusted EBITDA, $ Millions $23.9 $22.9 $23.9 $22.9 $17.4 $15.5 $14.4 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q4'23

6. Slide 6: Full-Year Revenue & Non-GAAP Operating Income

   Full-Year Revenue & Non-GAAP Operating Income Revenue, $ Millions $280.3 $250.0 $251.7 $225.5 $212.6 2019 2020 2021 2022 2023 Non-GAAP Operating Income, $ Millions $67.0 $61.8 $54.0 $35.3 $2.6 2019 2020 2021 2022 2023 Operating Income is a Non-GAAP Financial Measure. See Appendix for reconciliation

7. Slide 7: Quarterly Revenue by Customer Vertical

   Quarterly Revenue by Customer Vertical Q4’23 $70.2 million 30.8% 32.6% 43.6% 41.6% 50.3% 69.2% 67.4% 56.4% 58.4% 42% 49.7% 58% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Enterprise Service Provider

8. Slide 8: Quarterly Revenue by Geography

   Quarterly Revenue by Geography $ Millions 11% 11% Q4’23 12% 14% 17% 17% 19% 16% 21% 19% 16% $70.2 million 32% 33% 26% 39% 28% 34% 33% 34% 35% 27% 37% 16% 26% 57% 53% 57% 53% 56% 57% 49% 49% 48% 50% 52% 45% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Americas APJ EMEA

9. Slide 9: Consistent Value Creation

   Consistent Value Creation Revenue Business Capital Growth Model Allocation

10. Slide 10: Appendix

    Appendix 10 ©2023 A10 Networks, Inc. All rights reserved.

11. Slide 11: Financial Performance Trends

    Financial Performance Trends $ Millions (except EPS) FY 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 Q2’23 Q3’23 Q4’23 2020 2021 2022 2023 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 $65.8 $57.8

12. Slide 12: 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 Q2'23 Q3'23 Q4'23 Dec 31 2022 Dec 31 2023 Gross Margin % - GAAP 79.5% 80.2% 79.5% 79.7% 82.3% 79.5% 80.9% 81.1% 79.7% 80.9% Stock-based compensation 0.7% 0.5% 0.7% 0.5% 0.8% 0.6% 0.9% 0.6% 0.6% 0

13. Slide 13: 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 Q2'23 Q3'23 Q4'23 Dec 31 2022 Dec 31 2023 Income from operations $ - GAAP $ 8.0 $ 13.1 $ 15.7 $ 16.3 $ 6.2 $ 12.3 $ 2.2 $ 18.0 $ 53.1 $ 38.6 Stock-based compensation 3.7 2.9 3.8 3.5 4.0 3.5 4.3 2.9 14.0 14.7 One-

14. Slide 14: 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 Q2'23 Q3'23 Q4'23 Dec 31 2022 Dec 31 2023 GAAP net income $ 6.3 $ 10.4 $ 12.1 $ 18.0 $ 4.0 $ 11.6 $ 6.5 $ 17.9 $ 46.9 $ 40.0 Exclude: Interest income and other (income) expense, net 0.5 (0.5) 0.4 (0.1) 1.2 (2.5) (

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