A10 Networks, Inc. · NYSE:ATEN

A10 Networks — Q3 2022 Earnings Presentation

14 slides from A10 Networks's earnings presentation, Nov 1, 2022

  1. Slide 1: Q3 2022 Financial Results & Commentary

    Q3 2022 Financial Results & Commentary November 1, 2022

  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, routes to market, technical differe

  3. Slide 3: Agenda

    Agenda ▪ Q3 Overview ▪ Q3 Financial Performance ▪ FY 2022 Outlook

  4. Slide 4: Q3'22: Record Revenue and Non-GAAP Profitability

    Q3’22: Record Revenue and Non-GAAP Profitability Growth Highlights • Revenue grew 10.2% year-over-year • Enterprise revenue grows 17.3%; Service Provider revenue grows 6.3% • Geographic performance reflects broad-based demand Consistent Profitability • Adjusted EBITDA was a record $21.3 million, or

  5. Slide 5: Quarterly Revenue & Non-GAAP Operating Income

    Quarterly Revenue & Non-GAAP Operating Income Revenue, $ Millions Revenue, $ Millions $72.1 $70.7 $72.1 $68.0 $65.4 $65.4 $62.7 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q3'22 Non-GAAP Operating Income, $ Millions Non-GAAP Operating Income, $ Millions $19.5 $19.5 $17.6 $16.1 $14.5 $11.7 $14.5 Q3'21 Q4'21

  6. Slide 6: Quarterly Revenue by Customer Vertical

    Quarterly Revenue by Customer Vertical Q3’22 35.3% 36.7% 35.0% 34.9% 37.6% $72.1 million 64.7% 63.3% 65.0% 65.1% 62.4% 37.6% 62.4% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Enterprise Service Provider

  7. Slide 7: Quarterly Revenue by Geography

    Quarterly Revenue by Geography $ Millions 11% Q3’22 14% 14% 12% 16% 17% 17% 19% 16% $72.1 million 32% 36% 39% 34% 28% 34% 43% 35% 16% 47% 50% 34% 53% 57% 48% 49% 49% 48% 50% 39% 43% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Americas APJ EMEA

  8. Slide 8: Consistent Value Creation

    Consistent Value Creation Revenue Business Capital Growth Model Allocation

  9. 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

  10. Slide 10: Appendix

    Appendix 10 ©2022. A10 Networks, Inc. All rights reserved.

  11. Slide 11: Financial Performance Trends

    Financial Performance Trends $ Millions (except EPS) FY FY FY Q1'19 Q2'19 Q3’19 Q4'19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 2019 2020 2021 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 $72.1 Non-GAAP Gross

  12. Slide 12: GAAP to Non-GAAP – Gross Margin and EPS

    GAAP to Non-GAAP – Gross Margin and EPS % of Revenue except EPS Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 Q2'22 Q3'22 Gross Margin % - GAAP 77.2% 77.0% 79.8% 79.9% 78.6% 79.5% 80.2% 79.5% Stock-based compensation 1.2% 0.5% 0.6% 0.6% 0.7% 0.7% 0.5% 0.7% Global distribution center transition expense 0.5%

  13. Slide 13: GAAP to Non-GAAP – Operating Income (Loss)

    GAAP to Non-GAAP – Operating Income (Loss) $ Millions Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 Q2'22 Q3'22 Income (loss) from operations $ - GAAP $ 4.0 $ 7.2 $ 10.3 $ 11.8 $ 33.4 $ 8.0 $ 13.1 $ 15.7 Stock-based compensation 4.6 2.6 4.2 3.6 15.0 3.7 2.9 3.8 Litigation and Investigation expense (recovery

  14. Slide 14: GAAP to Non-GAAP – Adjusted EBITDA

    GAAP to Non-GAAP – Adjusted EBITDA $ Millions Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q1'22 Q2'22 Q3'22 GAAP net income (loss) $ 2.7 $ 6.6 $ 74.9 $ 10.7 $ 94.9 $ 6.3 $ 10.4 $ 12.1 Exclude: Interest expense - - - - - - - - Exclude: Interest income and other (income) expense, net 1.2 0.1 0.2 0.3 1.7 0.5 (0.5)

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