Financial Performance - Revenue for Q3 2024 was $66.7 million, a 15.5% increase from $57.8 million in Q3 2023[2] - GAAP net income for Q3 2024 was $12.6 million, representing 18.9% of revenue, compared to $6.5 million (11.2% of revenue) in Q3 2023[3] - Non-GAAP net income for Q3 2024 was $15.9 million (23.9% of revenue), up from $12.0 million (20.8% of revenue) in Q3 2023[3] - GAAP net income for Q3 2024 was $12,637,000, a 95% increase from $6,469,000 in Q3 2023[17] - Non-GAAP net income for Q3 2024 was $15,926,000, compared to $11,996,000 in Q3 2023, reflecting a 32% year-over-year growth[17] - GAAP gross profit for Q3 2024 was $53,682,000, with a gross margin of 80.5%, slightly down from 80.9% in Q3 2023[21] - Non-GAAP gross profit for Q3 2024 was $54,216,000, with a non-GAAP gross margin of 81.3%[21] - GAAP total operating expenses for Q3 2024 were $43,239 thousand, a decrease from $44,557 thousand in Q3 2023[22] - GAAP income from operations for Q3 2024 was $10,443 thousand, significantly up from $2,209 thousand in Q3 2023, resulting in a GAAP operating margin of 15.7% compared to 3.8%[23] - Non-GAAP operating income for Q3 2024 reached $15,059 thousand, an increase from $11,876 thousand in Q3 2023, with a non-GAAP operating margin of 22.6% versus 20.6%[23] - Adjusted EBITDA for Q3 2024 was $17,800 thousand, an increase from $14,413 thousand in Q3 2023, with an adjusted EBITDA margin of 26.7% compared to 24.9%[24] Cash and Investments - Cash and investments at the end of Q3 2024 totaled $182.1 million, an increase from $159.3 million at the end of 2023[4] - A10 Networks generated $21.0 million in cash from operations during Q3 2024[4] - Cash and cash equivalents decreased to $78,063,000 from $97,244,000 at the end of 2023[20] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $64,782,000, up from $41,783,000 in the same period of 2023[20] Shareholder Returns - The company returned $13.9 million to investors through share repurchases and cash dividends during the quarter[4] - A quarterly cash dividend of $0.06 per share was approved, payable on December 2, 2024[5] - The company has authorized a new common stock repurchase program for up to $50 million[5] Assets and Liabilities - Total current assets increased to $283,837,000 as of September 30, 2024, up from $271,824,000 at the end of 2023[18] - Total liabilities rose to $190,477,000 as of September 30, 2024, compared to $181,933,000 at the end of 2023[19] - The company reported a total stockholders' equity of $217,270,000 as of September 30, 2024, compared to $207,876,000 at the end of 2023[19] Expenses and Compensation - The company incurred $4,516,000 in stock-based compensation for Q3 2024, slightly up from $4,255,000 in Q3 2023[17] - Stock-based compensation and related payroll tax for Q3 2024 amounted to $4,516 thousand, slightly up from $4,255 thousand in Q3 2023[23] - The company reported a decrease in impairment expenses from $2,975 thousand in Q3 2023 to zero in Q3 2024[23] - The company incurred a one-time tax planning expense of $100 thousand in Q3 2024, compared to zero in Q3 2023[23] Strategic Focus - Security-led revenue accounted for 63% of total revenue in Q3 2024, highlighting the company's focus on cybersecurity solutions[6] - The company plans to integrate AI into its product offerings to enhance security solutions and address new threats[6] - The company is focusing on market expansion and new product development as part of its future strategy[22]

Financial Data and Key Metrics Changes - Second quarter revenue was $60.1 million, a decrease of 8.7% year-over-year [16] - Year-to-date revenue was $120.8 million, down 2.2% year-over-year [18] - Non-GAAP net income for the quarter was $13.2 million or $0.18 per diluted share, compared to $14.5 million or $0.19 per diluted share in the year-ago quarter [17] - Gross margin in the second quarter was 80.9%, in line with stated goals of 80% to 82% [17] - Adjusted EBITDA was $15.5 million for the quarter, reflecting 25.8% of total revenue [17] Business Line Data and Key Metrics Changes - Service Provider revenue, excluding North America, was up 20% year-to-date, while Enterprise-related revenue increased 25% [9] - Service Provider segment experienced a 25% decline, offset by improvements in the Enterprise segment [9] - Product revenue for the quarter was $29.5 million, representing 49% of total revenue, while services revenue was $30.6 million or 51% of total revenue [16] Market Data and Key Metrics Changes - North American Service Provider market remains choppy, with spending trending positively overall [8] - APJ and EMEA regions are stable on both Enterprise and Service Provider sides [36] Company Strategy and Development Direction - Company is focusing on diversifying its business model to navigate market challenges and drive growth [11] - Investments are being made in R&D and sales to target Enterprise opportunities, with expectations for continued growth in this segment [9][12] - The company is also investing in AI solutions to enhance security offerings and address emerging threats [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the North American Service Provider market is facing challenges, but the company is making steady progress in the Enterprise market [21] - The company expects low single-digit growth in revenue for the full year, with a focus on maintaining profitability [39] - Management remains confident in achieving full-year business model objectives, including targets for gross margin and adjusted EBITDA margin [15][20] Other Important Information - The company reported a quarterly cash dividend of $0.06 per share, with $34.8 million remaining in its share repurchase authorization [20] - Cash generated from operations was $43.8 million year-to-date, in line with full-year targets [19] Q&A Session Summary Question: Are service providers expected to return in the second half? - Management indicated that conversations with North American service providers show continued spending, but new projects are being pushed out [25] Question: How is the competitive environment? - Management stated that they are gaining share, particularly in the Enterprise market, with a year-to-date growth of about 7% [29] Question: What is the pricing power in the current environment? - Management mentioned that pricing is balanced, with selective price increases to offset input cost inflation [31] Question: Where is the company in the sales team restructuring? - Management indicated they are in the third to fourth inning of restructuring, with good progress in cross-selling [33] Question: What is the overall spending environment and macro headwinds? - Management noted stability in APJ and EMEA, while North America is facing some project re-scoping [36] Question: What drove the strong free cash flow in the first half? - Management attributed strong free cash flow to improved cash spending and linearity [41]

分组1 - A10 Networks reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, but down from $0.19 per share a year ago [1] - The company posted revenues of $60.1 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.17% and down from $65.82 million year-over-year [1] - A10 Networks has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates two times as well [1] 分组2 - The stock has added about 7% since the beginning of the year, underperforming the S&P 500's gain of 14.5% [2] - The current consensus EPS estimate for the coming quarter is $0.22 on revenues of $68.97 million, and for the current fiscal year, it is $0.82 on revenues of $265.32 million [4] - The Communication - Network Software industry is currently in the bottom 27% of the Zacks industries, indicating potential challenges for stocks in this sector [5]

Financial Performance - Total net revenue for Q2 2024 was $60,096 thousand, a decrease of 8.3% compared to $65,817 thousand in Q2 2023[18]. - Net income for Q2 2024 was $9,476 thousand, down 18.5% from $11,626 thousand in Q2 2023[20]. - Gross profit for the first half of 2024 was $97,289 thousand, compared to $99,829 thousand in the same period of 2023, reflecting a decrease of 2.5%[18]. - Operating expenses for Q2 2024 totaled $40,142 thousand, slightly up from $40,088 thousand in Q2 2023[18]. - The company reported a diluted net income per share of $0.13 for Q2 2024, down from $0.15 in Q2 2023[18]. - Comprehensive income for the first half of 2024 was $19,738 thousand, compared to $16,852 thousand in the same period of 2023, indicating an increase of 17.3%[20]. - Net income for the six months ended June 30, 2024, was $19,202, compared to $15,584 for the same period in 2023, representing a year-over-year increase of 23%[30]. - Total net revenue for the first half of 2024 was $120.8 million compared to $123.5 million in the same period of 2023[97]. Assets and Liabilities - Total assets as of June 30, 2024, increased to $397.17 million from $389.81 million as of December 31, 2023, representing a growth of approximately 1.4%[16]. - Total current liabilities increased to $115.03 million from $111.07 million, reflecting a rise of approximately 3.5%[16]. - Total liabilities rose to $182,813,000 as of June 30, 2024, compared to $181,933,000 at the end of 2023[16]. - Stockholders' equity grew to $214.36 million from $207.88 million, an increase of about 3.6%[16]. - The total stockholders' equity as of June 30, 2024, was $214,309 thousand, up from $192,938 thousand as of June 30, 2023[24]. - The accumulated deficit reduction from $90.48 million to $71.28 million, a decrease of approximately 21.2%[16]. Cash Flow and Investments - Cash and cash equivalents decreased to $77.46 million from $97.24 million, a decline of about 20.3%[16]. - Cash provided by operating activities for the six months ended June 30, 2024, was $44,650, significantly up from $18,722 in the prior year[30]. - The company reported a net cash used in investing activities of $(42,472) for the six months ended June 30, 2024, compared to a net cash provided of $37,039 in the prior year[30]. - Total cash and cash equivalents at the end of the period decreased to $77,457 thousand as of June 30, 2024, from $111,181 thousand as of June 30, 2023, indicating a decline in liquidity[30]. Market and Product Strategy - The company plans to introduce new products and enhance its market position, focusing on effective management of growth and operations[8]. - Future expectations include maintaining profitability while investing in sales, marketing, and product development[8]. - A10 Networks is committed to monitoring market trends and adapting strategies to ensure competitive positioning in the networking and network security sectors[9]. - The company’s revenue is derived from two sources: products revenue and services revenue, with a significant portion coming from sales through distribution channel partners[35]. - The company has a diverse product portfolio that includes six secure application solutions and two intelligent management tools, addressing various cyber protection challenges[34]. Customer and Revenue Concentration - One customer accounted for 43% of total gross accounts receivable as of June 30, 2024, up from 19% as of December 31, 2023[47]. - For the three months ended June 30, 2024, revenue from significant end-customer A represented 14% of total revenue, down from 25% in the same period of 2023[45]. Stock Repurchase and Compensation - The company repurchased common stock worth $11,837 thousand during the first half of 2024[24]. - The company repurchased 1.1 million shares for a total cost of $14.9 million under the 2023 stock repurchase program during the six months ended June 30, 2024[89]. - Stock-based compensation for the six months ended June 30, 2024, was $8,105, compared to $7,214 in the same period of 2023[30]. Inventory and Expenses - Total inventory increased to $25,212 thousand as of June 30, 2024, compared to $23,522 thousand as of December 31, 2023, representing an increase of 7.2%[69]. - Research and development expenses increased to $14,737 thousand in Q2 2024, compared to $13,965 thousand in Q2 2023, marking a rise of 5.5%[18]. - Total accrued liabilities increased to $27,398 thousand as of June 30, 2024, from $21,388 thousand as of December 31, 2023, representing an increase of 28.1%[75]. Lease and Asset Management - Total right-of-use assets decreased from $16,376,000 to $13,928,000, representing a decline of approximately 14.98%[51]. - Total operating lease liabilities decreased from $16,820,000 to $14,319,000, a reduction of about 11.86%[51]. - The average remaining lease term decreased from 3.84 years to 2.92 years, indicating a shortening of lease commitments[55]. Tax and Regulatory Matters - The company recorded a provision for income tax of $1.5 million for the three months ended June 30, 2024, compared to $3.2 million for the same period in 2023, a decrease of 53.1%[94]. - The company had $8.1 million of unrecognized tax benefits as of June 30, 2024, with no anticipated material change over the next twelve months[94].

EXHIBIT 99.1 A10 Networks Reports Financial Results for the Second Quarter of 2024 Company Maintains Solid Profitability SAN JOSE, Calif., July 30, 2024 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its second quarter ended June 30, 2024. Second Quarter 2024 Financial Summary • Revenue of $60.1 million, compared to $65.8 million in the second quarter of 2023. Revenue for the first six months of 2024 was $120.8 mill ...

Q2 2024 Financial Results & Commentary July 30, 2024 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 allocation strategy and value creation, and market and technology trends. Forward-looking statements are subject to known and unknown risks and uncertainties and are ...

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Funtap Thesis A10 Networks (NYSE:ATEN) will be on the rise, as by improving cybersecurity features and switching to flexible and scalable models in consumption, it will secure its growth. A10 Networks aspires to gain customer loyalty through innovative and efficient cyber defense techniques, involving not only AI and machine learning for risk analysis but also subscription and cloud solutions. It is A10 Networks' long-term strategy, and on top of that, it aims to attract and keep customers, particularly ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | |--------------------------------------------|----------------------------------------------------------------------------------- ...