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 ...

While advanced technologies will always be celebrated, the reality is that with innovation comes nefarious activity. It’s just the way of the world. With that, cybersecurity stocks present an excellent opportunity. In many ways, they benefit from a permanently relevant narrative.According to Grand View Research, the global cybersecurity market size reached a valuation of $222.66 billion. By 2030, the sector could be worth $500.7 billion, implying a compound annual growth rate (CAGR) of 12.3% from 2023. More ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements, management's discussion, market risk disclosures, and internal controls [ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=6&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents A10 Networks' unaudited condensed consolidated financial statements, covering balance sheets, income, comprehensive income, equity, cash flows, and related notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, presenting assets, liabilities, and stockholders' equity at quarter-end and year-end | ASSETS (in thousands) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Cash and cash equivalents | $122,909 | $97,244 | | Marketable securities | $59,163 | $62,056 | | Accounts receivable, net | $55,906 | $74,307 | | Inventory | $24,895 | $23,522 | | Total current assets | $276,098 | $271,824 | | Total assets | $395,658 | $389,809 | | | | | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | | | | Accounts payable | $5,049 | $7,024 | | Accrued liabilities | $24,466 | $21,388 | | Deferred revenue | $83,345 | $82,657 | | Total current liabilities | $112,860 | $111,069 | | Total liabilities | $181,349 | $181,933 | | Total stockholders' equity | $214,309 | $207,876 | | Total liabilities and stockholders' equity | $395,658 | $389,809 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's financial performance, detailing net revenue, gross profit, operating income, and net income for the three-month periods | (in thousands, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net revenue: | | | | Products | $30,069 | $31,182 | | Services | $30,606 | $26,509 | | **Total net revenue** | **$60,675** | **$57,691** | | Gross profit | $49,231 | $47,475 | | Income from operations | $7,213 | $6,167 | | Non-operating income (expense), net | $4,007 | $(1,245) | | Income before provision for income taxes | $11,220 | $4,922 | | Provision for income taxes | $1,494 | $964 | | **Net income** | **$9,726** | **$3,958** | | Net income per share: | | | | Basic | $0.13 | $0.05 | | Diluted | $0.13 | $0.05 | - Net income increased by **145.7%** to **$9.7 million** for the three months ended March 31, 2024, compared to **$3.9 million** in the same period of 2023[18](index=18&type=chunk)[121](index=121&type=chunk) - Total net revenue increased by **5.2%** to **$60.7 million**, driven by a **15.5% increase in services revenue**, partially offset by a **3.6% decrease in products revenue**[18](index=18&type=chunk)[121](index=121&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details the company's comprehensive income, including net income and other comprehensive income (loss) components for the three-month periods | (unaudited, in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Net income | $9,726 | $3,958 | | Other comprehensive income (loss), net of tax: | | | | Unrealized gain (loss) on marketable securities, net of tax | $(39) | $527 | | Unrealized gain on cash flow hedge, net of tax | $51 | $36 | | **Comprehensive income** | **$9,738** | **$4,521** | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in stockholders' equity, including net income, stock repurchases, and dividends, for the three-month period | (in thousands) | Balance at Dec 31, 2023 | Common stock issued | Repurchase of common stock | Stock-based compensation expense | Payments for dividends | Unrealized loss on marketable securities | Unrealized gain on cash flow hedge | Net Income | Balance at Mar 31, 2024 | | :------------- | :---------------------- | :------------------ | :------------------------- | :------------------------------- | :--------------------- | :--------------------------------------- | :--------------------------------- | :--------- | :---------------------- | | Total Stockholders' Equity | $207,876 | $89 | $(3,039) | $4,117 | $(4,472) | $(39) | $51 | $9,726 | $214,309 | - Total stockholders' equity increased from **$207.9 million** at December 31, 2023, to **$214.3 million** at March 31, 2024, primarily due to net income and stock-based compensation, partially offset by stock repurchases and dividend payments[16](index=16&type=chunk)[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash flow activities from operations, investing, and financing for the three-month periods | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | Cash flows from operating activities | $32,444 | $(846) | | Cash flows from investing activities | $643 | $5,367 | | Cash flows from financing activities | $(7,422) | $(3,973) | | Net increase in cash and cash equivalents | $25,665 | $548 | | Cash and cash equivalents—end of period | $122,909 | $68,519 | - Net cash provided by operating activities significantly increased to **$32.4 million** in Q1 2024 from cash used of **$0.8 million** in Q1 2023, driven by higher net income and favorable changes in working capital[26](index=26&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes supporting the condensed consolidated financial statements, covering accounting policies, leases, marketable securities, and other components [1. Description of Business and Summary of Significant Accounting Policies](index=11&type=section&id=1.%20Description%20of%20Business%20and%20Summary%20of%20Significant%20Accounting%20Policies) A10 Networks provides secure application solutions and services globally, generating revenue from products and services, with financial statements prepared under U.S. GAAP and no material accounting policy changes in Q1 2024 - A10 Networks is a leading provider of secure application solutions and services, addressing cyber protection and digital responsiveness across IT and network infrastructures[30](index=30&type=chunk) - Revenue is generated from two main sources: products (hardware, perpetual/term software licenses) and services (post-contract support, professional services, training, SaaS)[31](index=31&type=chunk) - Sales are primarily conducted globally through distribution channel partners to service providers and enterprises, with revenue reported across Americas, APJ, and EMEA regions[32](index=32&type=chunk)[33](index=33&type=chunk) Significant Customers (Revenue Contribution) | Significant Customers (Revenue Contribution) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | | Customer A | 14% | <10% | | Customer B | 11% | 15% | - As of March 31, 2024, one customer accounted for **19% of total gross accounts receivable**, consistent with December 31, 2023[43](index=43&type=chunk) - The company is evaluating the impact of new FASB ASUs 2023-07 (Segment Reporting) and 2023-09 (Income Tax Disclosures), effective for fiscal years beginning after December 15, 2024[44](index=44&type=chunk)[45](index=45&type=chunk) [2. Leases](index=13&type=section&id=2.%20Leases) The company leases operating spaces globally, with total operating lease liabilities of **$15.6 million** as of March 31, 2024, and Q1 2024 lease costs of **$1.2 million** Operating Leases (in thousands) | Operating Leases (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------ | :------------- | :---------------- | | Right-of-use assets | $15,155 | $16,376 | | Total operating lease liabilities | $15,558 | $16,820 | Lease Costs (in thousands) | Lease Costs (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------- | :-------------------------------- | :-------------------------------- | | Operating lease costs | $1,085 | $1,110 | | Short-term lease costs | $116 | $127 | | Total lease costs | $1,201 | $1,237 | - The weighted-average remaining lease term decreased to **3.15 years** as of March 31, 2024, from **4.07 years** as of March 31, 2023, with a consistent weighted-average discount rate of **3.2%**[51](index=51&type=chunk) [3. Marketable Securities and Fair Value Measurements](index=14&type=section&id=3.%20Marketable%20Securities%20and%20Fair%20Value%20Measurements) Marketable securities, primarily available-for-sale, totaled **$59.2 million** at fair value as of March 31, 2024, mainly corporate and U.S. Treasury securities, with no impairment charges Marketable Securities (in thousands) | Marketable Securities (in thousands) | Fair Value as of March 31, 2024 | Fair Value as of December 31, 2023 | | :----------------------------------- | :------------------------------ | :--------------------------------- | | Corporate securities | $12,734 | $15,393 | | U.S. Treasury and agency securities | $43,829 | $39,937 | | Commercial paper | $0 | $998 | | Publicly held equity securities | $2,600 | $5,728 | | **Total marketable securities** | **$59,163** | **$62,056** | - As of March 31, 2024, marketable securities in an unrealized loss position totaled **$76 thousand**, primarily from U.S. Treasury and agency securities[57](index=57&type=chunk) Fair Value Measurements (in thousands) | Fair Value Measurements (in thousands) | Level 1 (March 31, 2024) | Level 2 (March 31, 2024) | Total (March 31, 2024) | | :------------------------------------- | :----------------------- | :----------------------- | :--------------------- | | Cash | $77,050 | $0 | $77,050 | | Cash equivalents | $45,859 | $0 | $45,859 | | Corporate securities | $0 | $12,734 | $12,734 | | U.S. Treasury and agency securities | $13,233 | $30,596 | $43,829 | | Publicly held equity securities | $2,600 | $0 | $2,600 | | **Total** | **$138,742** | **$43,330** | **$182,072** | [4. Derivatives](index=16&type=section&id=4.%20Derivatives) The company uses foreign exchange forward contracts to manage currency exposures, with non-hedging notional amounts increasing to **$43.3 million** and resulting in **$0.2 million** net losses in Q1 2024 - Foreign exchange forward contracts not designated as hedging instruments had a total notional amount of **$43.3 million** as of March 31, 2024, up from **$34.5 million** at December 31, 2023[61](index=61&type=chunk) - The company recorded net losses of **$0.2 million** from non-hedging foreign exchange forward contracts for the three months ended March 31, 2024, compared to **$0.6 million** in losses for the same period in 2023[61](index=61&type=chunk) - No foreign exchange forward contracts designated as hedging instruments were outstanding as of March 31, 2024[62](index=62&type=chunk) [5. Condensed Consolidated Financial Statement Components](index=16&type=section&id=5.%20Condensed%20Consolidated%20Financial%20Statement%20Components) This section details changes in key financial statement components, including increased allowance for credit losses and inventory, decreased prepaid expenses, and stable deferred revenue Accounts Receivable Allowance for Credit Losses (in thousands) | Accounts Receivable Allowance for Credit Losses (in thousands) | March 31, 2024 | December 31, 2023 | | :----------------------------------------------------------- | :------------- | :---------------- | | Beginning balance | $405 | $32 | | Increase (decrease) in allowance | $1,562 | $1,181 | | Write-offs | $(786) | $(808) | | Ending balance | $1,181 | $405 | Inventory (in thousands) | Inventory (in thousands) | March 31, 2024 | December 31, 2023 | | :----------------------- | :------------- | :---------------- | | Raw materials | $17,585 | $15,473 | | Finished goods | $7,310 | $8,049 | | Total inventory | $24,895 | $23,522 | Accrued Liabilities (in thousands) | Accrued Liabilities (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------- | :------------- | :---------------- | | Accrued compensation and benefits | $8,899 | $7,633 | | Accrued tax liabilities | $3,332 | $1,429 | | Lease liability | $5,000 | $4,998 | | Other | $7,235 | $7,328 | | Total accrued liabilities | $24,466 | $21,388 | Deferred Revenue (in thousands) | Deferred Revenue (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------ | :------------- | :---------------- | | Products | $15,131 | $14,917 | | Services | $125,775 | $126,417 | | Total deferred revenue | $140,906 | $141,334 | | Less: current portion | $(83,345) | $(82,657) | | Non-current portion | $57,561 | $58,677 | [6. Commitments and Contingencies](index=18&type=section&id=6.%20Commitments%20and%20Contingencies) The company has **$15.6 million** in non-cancellable operating lease commitments and **$11.1 million** in open purchase commitments, with no significant impact from indemnification provisions to date - Total future lease payments for non-cancelable operating leases were **$16.3 million** as of March 31, 2024, with a present value of **$15.6 million**[49](index=49&type=chunk) - Rent expense was **$1.2 million** for both the three months ended March 31, 2024 and 2023[74](index=74&type=chunk) - Open purchase commitments with third-party contract manufacturers in Taiwan totaled **$11.1 million** as of March 31, 2024[75](index=75&type=chunk) [7. Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Program](index=18&type=section&id=7.%20Equity%20Incentive%20Plans%2C%20Stock-Based%20Compensation%20and%20Stock%20Repurchase%20Program) The company operates equity incentive and stock purchase plans, with **4.4 million** shares available for grant, **$3.8 million** in Q1 2024 stock-based compensation, and **$3.0 million** in stock repurchases - As of March 31, 2024, **4,379,799 shares** were available for future grant under the 2023 Stock Incentive Plan[77](index=77&type=chunk) - Stock-based compensation expense for the three months ended March 31, 2024, was **$3.8 million**, an increase from **$3.7 million** in the prior year period[80](index=80&type=chunk) - During Q1 2024, the company repurchased **0.2 million shares** for a total cost of **$3.0 million** under the 2023 stock repurchase program[86](index=86&type=chunk) Stock Option Activity (thousands) | Stock Option Activity (thousands) | Number of Shares | Weighted-Average Exercise Price Per Share | | :-------------------------------- | :--------------- | :---------------------------------------- | | Outstanding as of Dec 31, 2023 | 80 | $4.63 | | Exercised | (20) | $4.40 | | Canceled | (3) | $12.19 | | Outstanding as of Mar 31, 2024 | 57 | $4.38 | | Vested and exercisable as of Mar 31, 2024 | 57 | $4.38 | [8. Net Income Per Share](index=20&type=section&id=8.%20Net%20Income%20Per%20Share) Basic and diluted net income per share for Q1 2024 significantly increased to **$0.13** from **$0.05** in Q1 2023, based on weighted-average shares outstanding Net Income Per Share (in thousands, except per share amounts) | Net Income Per Share (in thousands, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income | $9,726 | $3,958 | | Weighted-average shares outstanding - basic | 74,451 | 74,001 | | Effect of dilutive potential common shares | 867 | 1,540 | | Weighted-average shares outstanding - diluted | 75,318 | 75,541 | | Net income per share: | | | | Basic | $0.13 | $0.05 | | Diluted | $0.13 | $0.05 | - Potentially dilutive shares excluded from diluted EPS calculation due to anti-dilutive effect decreased to **65 thousand** in Q1 2024 from **186 thousand** in Q1 2023[91](index=91&type=chunk) [9. Income Taxes](index=21&type=section&id=9.%20Income%20Taxes) The income tax provision increased to **$1.5 million** for Q1 2024, with unrecognized tax benefits totaling **$8.1 million** as of March 31, 2024, and no material change expected - Provision for income taxes increased to **$1.5 million** for Q1 2024, compared to **$1.0 million** for Q1 2023[92](index=92&type=chunk) - Unrecognized tax benefits were **$8.1 million** as of March 31, 2024, with no material change expected in the next 12 months[92](index=92&type=chunk) [10. Geographic Information](index=21&type=section&id=10.%20Geographic%20Information) A10 Networks reports revenue across Americas, APJ, and EMEA, with APJ revenue significantly increasing by **59%** to **$25.0 million** in Q1 2024, while Americas and EMEA declined Net Revenue by Geographic Region (in thousands) | Net Revenue by Geographic Region (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Americas | $27,442 | $29,956 | | United States | $23,144 | $24,121 | | Americas-other | $4,298 | $5,835 | | APJ | $25,043 | $15,760 | | EMEA | $8,190 | $11,975 | | **Total net revenue** | **$60,675** | **$57,691** | - APJ region revenue increased by **59%** year-over-year, primarily driven by Japan, while Americas and EMEA regions experienced decreases of **8%** and **32%** respectively[97](index=97&type=chunk)[127](index=127&type=chunk) [11. Revenue](index=22&type=section&id=11.%20Revenue) Total net revenue for Q1 2024 increased by **5%** to **$60.7 million**, driven by service provider and services revenue growth, with remaining performance obligations totaling **$140.9 million** Revenue by Customer Vertical (in thousands) | Revenue by Customer Vertical (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Service providers | $37,661 | $32,566 | | Enterprises | $23,014 | $25,125 | | **Total** | **$60,675** | **$57,691** | - Service provider revenue increased by **$5.1 million**, while enterprise revenue decreased by **$2.1 million** in Q1 2024 compared to Q1 2023[127](index=127&type=chunk) - Services revenue increased by **15%** due to growing installed customer base and PCS sales, particularly in APJ and Americas regions[128](index=128&type=chunk) Remaining Performance Obligations (in thousands) | Remaining Performance Obligations (in thousands) | March 31, 2024 | | :----------------------------------------------- | :------------- | | Within 1 year | $83,345 | | Next 2 to 3 years | $54,135 | | Thereafter | $3,426 | | **Total** | **$140,906** | [11. Subsequent Events](index=23&type=section&id=11.%20Subsequent%20Events) The Board of Directors declared a quarterly cash dividend of **$0.06 per share** on April 30, 2024, payable on June 3, 2024, with future dividends subject to approval - A quarterly cash dividend of **$0.06 per share** was declared on April 30, 2024, to be paid on June 3, 2024[108](index=108&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=24&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's analysis of financial condition and results of operations for Q1 2024, covering revenue, expenses, liquidity, cash flows, and critical accounting policies [Overview](index=24&type=section&id=Overview) A10 Networks provides secure application solutions globally, with Q1 2024 revenue primarily from Americas and APJ, strong service provider contribution, and healthy cash and marketable securities balances - A10 Networks provides secure application solutions and services, including Thunder ADC, CGN, TPS, SSLi, CFW, and management tools like Harmony Controller and aGalaxy TPS[111](index=111&type=chunk) - Revenue sources include products (hardware, perpetual/term software licenses) and services (PCS, professional services, training, SaaS), with a substantial portion from distribution channel partners[112](index=112&type=chunk) Revenue Contribution (Q1 2024) | Revenue Contribution (Q1 2024) | Percentage of Total Revenue | | :----------------------------- | :-------------------------- | | Americas region | 45% | | APJ region | 41% | | EMEA region | 14% | | Service provider customers | 62% | | Enterprise customers | 38% | | Top ten end-customers | 44% | - Cash and cash equivalents were **$122.9 million** and marketable securities were **$59.2 million** as of March 31, 2024. Cash provided by operating activities was **$32.4 million** for Q1 2024, a significant improvement from cash used in Q1 2023[118](index=118&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2024 saw total net revenue increase by **5.2%** to **$60.7 million**, driven by services growth, leading to a **145.7%** increase in net income to **$9.7 million** despite product revenue declines | Financial Metric (in thousands) | Q1 2024 Amount | Q1 2024 % of Revenue | Q1 2023 Amount | Q1 2023 % of Revenue | Change Amount | Change % | | :------------------------------ | :------------- | :------------------- | :------------- | :------------------- | :------------ | :------- | | Total net revenue | $60,675 | 100.0% | $57,691 | 100.0% | $2,984 | 5.2% | | Products revenue | $30,069 | 49.6% | $31,182 | 54.1% | $(1,113) | (3.6)% | | Services revenue | $30,606 | 50.4% | $26,509 | 45.9% | $4,097 | 15.5% | | Gross profit | $49,231 | 81.1% | $47,475 | 82.3% | $1,756 | 3.7% | | Income from operations | $7,213 | 11.9% | $6,167 | 10.7% | $1,046 | 17.0% | | Non-operating income (expense), net | $4,007 | 6.6% | $(1,245) | (2.2)% | $5,252 | (421.8)% | | Net income | $9,726 | 16.0% | $3,958 | 6.9% | $5,768 | 145.7% | [Net Revenue](index=26&type=section&id=Net%20Revenue) Total net revenue increased by **5%** year-over-year, driven by a **59%** increase in the APJ region, while products revenue decreased and services revenue increased by **15%** - Total net revenue increased by **$3.0 million (5%)** year-over-year, driven by a **$9.3 million increase in the APJ region (59% growth)**, partially offset by decreases in EMEA (**$3.8 million, 32% decline**) and Americas (**$2.5 million, 8% decline**)[127](index=127&type=chunk) - Products revenue decreased by **$1.1 million (4%)** due to lower demand from enterprise customers in EMEA and Americas. Services revenue increased by **$4.1 million (15%)** due to higher PCS sales from a growing customer base, especially in APJ and Americas[127](index=127&type=chunk)[128](index=128&type=chunk) [Cost of Net Revenue, Gross Profit and Gross Margin](index=28&type=section&id=Cost%20of%20Net%20Revenue%2C%20Gross%20Profit%20and%20Gross%20Margin) Total cost of net revenue increased by **12%**, leading to a **1.2%** decrease in overall gross margin, despite a slight increase in services gross margin Cost of Net Revenue (in thousands) | Cost of Net Revenue (in thousands) | Q1 2024 Amount | Q1 2023 Amount | Change Amount | Change % | | :--------------------------------- | :------------- | :------------- | :------------ | :------- | | Products | $6,799 | $6,083 | $716 | 11.8% | | Services | $4,645 | $4,133 | $512 | 12.4% | | **Total cost of net revenue** | **$11,444** | **$10,216** | **$1,228** | **12.0%** | - Products cost of revenue increased by **11.8%** due to higher products revenue, while services cost of revenue increased by **12.4%** driven by the mix of services delivered[133](index=133&type=chunk)[134](index=134&type=chunk) Gross Profit and Margin (in thousands) | Gross Profit and Margin (in thousands) | Q1 2024 Amount | Q1 2024 Gross Margin | Q1 2023 Amount | Q1 2023 Gross Margin | Change Amount | Change in Gross Margin | | :------------------------------------- | :------------- | :------------------- | :------------- | :------------------- | :------------ | :--------------------- | | Products | $23,270 | 77.4% | $25,099 | 80.5% | $(1,829) | (3.1)% | | Services | $25,961 | 84.8% | $22,376 | 84.4% | $3,585 | 0.4% | | **Total gross profit** | **$49,231** | **81.1%** | **$47,475** | **82.3%** | **$1,756** | **(1.2)%** | - Products gross margin decreased by **3.1%** due to product and regional mix, while services gross margin slightly increased by **0.4%**[137](index=137&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20Expenses) Total operating expenses increased by **1.7%**, driven by a **20.6%** rise in R&D due to strategic investments, while sales and marketing, and G&A expenses decreased Operating Expenses (in thousands) | Operating Expenses (in thousands) | Q1 2024 Amount | Q1 2023 Amount | Change Amount | Change % | | :-------------------------------- | :------------- | :------------- | :------------ | :------- | | Sales and marketing | $21,214 | $22,334 | $(1,120) | (5.0)% | | Research and development | $14,063 | $11,665 | $2,398 | 20.6% | | General and administrative | $6,741 | $7,309 | $(568) | (7.8)% | | **Total operating expenses** | **$42,018** | **$41,308** | **$710** | **1.7%** | - Sales and marketing expenses decreased by **5.0%** primarily due to lower personnel costs. Research and development expenses increased by **20.6%** due to strategic investments in cybersecurity technology and personnel costs[140](index=140&type=chunk)[141](index=141&type=chunk) - General and administrative expenses decreased by **7.8%** mainly due to a decrease in professional services costs[142](index=142&type=chunk) [Non-Operating Income (Expense), Net](index=30&type=section&id=Non-Operating%20Income%20(Expense)%2C%20Net) Non-operating income saw a favorable change of **$5.3 million** in Q1 2024, primarily due to foreign exchange gains and increased interest income - Non-operating income (expense), net, had a favorable change of **$5.3 million** in Q1 2024 compared to Q1 2023, primarily driven by a **$3.8 million** favorable change in foreign exchange gains and losses (mainly Japanese Yen vs. U.S. Dollar)[144](index=144&type=chunk) - Interest income increased by **$0.7 million** and fair value adjustments increased by **$0.7 million** in Q1 2024 compared to Q1 2023[144](index=144&type=chunk) [Provision for Income Taxes](index=30&type=section&id=Provision%20for%20Income%20Taxes) The provision for income taxes increased to **$1.5 million** in Q1 2024, primarily due to U.S. federal and state taxes - The provision for income taxes increased to **$1.5 million** in Q1 2024 from **$1.0 million** in Q1 2023, primarily due to U.S. federal and state taxes[145](index=145&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held **$122.9 million** in cash and **$59.2 million** in marketable securities, with sufficient capital for the next 12 months, while executing stock repurchases and dividend payments - As of March 31, 2024, the company had **$122.9 million** in cash and cash equivalents and **$59.2 million** in marketable securities, with working capital of **$163.2 million**[146](index=146&type=chunk) - The company believes its existing cash and marketable securities are sufficient to meet anticipated cash needs for at least the next 12 months and beyond[147](index=147&type=chunk) - During Q1 2024, the company repurchased **$3.0 million** of common stock under the 2023 Program and paid **$4.5 million** in cash dividends (**$0.06 per share**)[148](index=148&type=chunk)[149](index=149&type=chunk) [Statements of Cash Flows](index=31&type=section&id=Statements%20of%20Cash%20Flows) Q1 2024 saw operating cash flow significantly increase to **$32.4 million**, with investing activities providing **$0.6 million**, and financing activities using **$7.4 million** for dividends and repurchases Cash Flows (in thousands) | Cash Flows (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Operating activities | $32,444 | $(846) | | Investing activities | $643 | $5,367 | | Financing activities | $(7,422) | $(3,973) | | Net increase in cash | $25,665 | $548 | - Cash provided by operating activities in Q1 2024 was **$32.4 million**, a substantial increase from cash used of **$0.8 million** in Q1 2023, primarily due to higher net income and favorable changes in accounts receivable and accrued liabilities[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - Cash provided by investing activities decreased to **$0.6 million** in Q1 2024 from **$5.4 million** in Q1 2023, mainly due to changes in purchases and maturities of marketable securities[158](index=158&type=chunk) - Cash used in financing activities increased to **$7.4 million** in Q1 2024 from **$4.0 million** in Q1 2023, driven by stock repurchases and dividend payments[159](index=159&type=chunk) [Contractual Obligations](index=32&type=section&id=Contractual%20Obligations) Contractual obligations include **$15.6 million** in non-cancellable operating leases and **$8.1 million** in uncertain tax liabilities, with no reliable settlement timing estimate for the latter - Contractual obligations include **$15.6 million** in non-cancellable operating lease arrangements as of March 31, 2024[160](index=160&type=chunk) - The company has **$8.1 million** of tax liabilities related to uncertain tax positions, with no reliable estimate for timing of settlement[160](index=160&type=chunk) [Critical Accounting Policies and Estimates](index=32&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statements are prepared under U.S. GAAP, requiring estimates for revenue, credit losses, inventory, and stock-based compensation, with no material changes to accounting policies in Q1 2024 - Key estimates and assumptions affect revenue recognition, allowance for credit losses, inventory valuation, marketable securities, contingencies, accrued liabilities, deferred commissions, and stock-based compensation[161](index=161&type=chunk) - No material changes to the company's significant accounting policies occurred during the three months ended March 31, 2024[161](index=161&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=32&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's exposure to market risks, including foreign currency fluctuations and interest rate sensitivity, with a hypothetical **10%** change in either not expected to have a significant impact [Foreign Currency Risk](index=32&type=section&id=Foreign%20Currency%20Risk) The company's financial results are subject to foreign currency fluctuations, particularly for sales and costs in various currencies, though a **10%** change is not expected to have a significant impact - The company's financial results are subject to foreign currency fluctuations, particularly for sales in Japanese Yen and costs in local currencies across Americas, EMEA, and APJ[162](index=162&type=chunk) - Net foreign exchange gains of **$1.6 million** were recorded in Q1 2024, a favorable change from **$2.2 million** in net losses in Q1 2023[164](index=164&type=chunk) - A hypothetical **10%** change in exchange rates is not expected to have a significant impact on consolidated results of operations[164](index=164&type=chunk) [Interest Rate Sensitivity](index=33&type=section&id=Interest%20Rate%20Sensitivity) Market risk from interest rate changes primarily relates to **$59.2 million** in marketable securities, with a hypothetical **10%** change not expected to materially impact interest expense - Market risk from interest rate changes primarily relates to marketable securities, which had an aggregate fair value of **$59.2 million** as of March 31, 2024[165](index=165&type=chunk) - A hypothetical **10%** change in interest rates would not have a material impact on the company's interest expense[165](index=165&type=chunk) Marketable Securities (in thousands) | Marketable Securities (in thousands) | -150 BPS | -100 BPS | -50 BPS | Fair Value as of 3/31/2024 | +50 BPS | +100 BPS | +150 BPS | | :----------------------------------- | :------- | :------- | :------ | :------------------------- | :------ | :------- | :------- | | Marketable securities | $56,563 | $57,057 | $56,728 | $59,163 | $56,399 | $56,234 | $56,069 | [ITEM 4. CONTROLS AND PROCEDURES](index=33&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting identified during Q1 2024 - Management concluded that disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2024[170](index=170&type=chunk) - No material changes in internal control over financial reporting were identified during the three months ended March 31, 2024[171](index=171&type=chunk) - The report emphasizes that control systems provide reasonable, not absolute, assurance due to inherent limitations and resource constraints[173](index=173&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, equity security sales, other disclosures, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=35&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings with uncertain outcomes, requiring management to assess potential losses, which could materially impact financial results - The company is involved in various legal proceedings with uncertain outcomes, requiring management to assess the probability and estimability of potential losses[176](index=176&type=chunk) - Judgments are subjective and actual outcomes may differ materially, potentially having adverse effects on the company's financial condition and results of operations[176](index=176&type=chunk) [ITEM 1A. RISK FACTORS](index=35&type=section&id=ITEM%201A.%20RISK%20FACTORS) Investing in the company's common stock involves a high degree of risk, with no material changes to previously disclosed risk factors in the 2023 Annual Report on Form 10-K - Investing in the company's common stock involves a high degree of risk[177](index=177&type=chunk) - No material changes to the risk factors disclosed in the 2023 Annual Report on Form 10-K have occurred[177](index=177&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=35&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The Board authorized a **$50 million** share repurchase program, under which **230 thousand** shares were repurchased for **$3.0 million** in Q1 2024, leaving **$46.7 million** available - A new **$50 million** share repurchase program (2023 Program) was authorized on November 7, 2023[178](index=178&type=chunk) Periods | Periods | Total Number of Shares Purchased (thousands) | Average Price Paid Per Share | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (thousands) | | :------------------ | :------------------------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------------- | | January 1 - 31, 2024 | — | — | $49,702 | | February 1 - 28, 2024 | 147 | $12.93 | $47,794 | | March 1 - 31, 2024 | 83 | $13.65 | $46,663 | | **Total** | **230** | | **$46,663** | - As of March 31, 2024, **$46.7 million** remained available for repurchases under the 2023 Program[180](index=180&type=chunk) [ITEM 5. OTHER INFORMATION](index=35&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section reports on insider trading arrangements, specifically the sale of **60,606 shares** by the President, CEO, and Chairman under a Rule 10b5-1(c) trading plan - Dhrupad Trivedi, President, CEO, and Chairman, sold **60,606 shares** of common stock on March 5, 2024, under a Rule 10b5-1(c) trading plan adopted on November 27, 2023[181](index=181&type=chunk)[183](index=183&type=chunk) [ITEM 6. EXHIBITS](index=36&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including organizational documents, equity incentive plans, related agreements, CEO/CFO certifications, and Inline XBRL documents - Exhibits include organizational documents (Amended and Restated Certificate of Incorporation, Bylaws), equity incentive plans (2023 Stock Incentive Plan), and related agreements[185](index=185&type=chunk) - Certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act are included[185](index=185&type=chunk) - Inline XBRL Document Sets for financial statements and the cover page are also filed[185](index=185&type=chunk) [Signatures](index=37&type=section&id=Signatures) The report was signed by Dhrupad Trivedi (President and CEO) and Brian Becker (CFO) on May 3, 2024, certifying its submission under the Securities Exchange Act of 1934 - The report was signed by Dhrupad Trivedi (President and CEO) and Brian Becker (CFO) on May 3, 2024[188](index=188&type=chunk)

Q1 2024 Financial Results & Commentary April 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 regardingour 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 ...

Financial Data and Key Metrics Changes - First quarter revenue was $60.7 million, an increase of 5.2% year-over-year [15] - Gross margin in the first quarter was 81.9%, in line with the stated goals of 80% to 82% [16] - Non-GAAP net income for the quarter was $12.7 million, or $0.17 per diluted share, compared to $9.9 million, or $0.13 per diluted share in the year-ago quarter [17] - Adjusted EBITDA was $13.9 million for the quarter, representing 22.9% of revenue [16] Business Line Data and Key Metrics Changes - Product revenue for the quarter was $30.1 million, representing 50% of total revenue, while services revenue was $30.6 million, also 50% of total revenue [15] - First quarter recurring revenue increased 13% compared to the first quarter last year, and deferred revenue increased nearly 10% [15] - Revenue from service providers was up 16% year-over-year in the quarter [10] Market Data and Key Metrics Changes - Strong growth was observed in the APJ region, indicating a positive trend in that market [10] - Enterprise revenue growth continues to outpace overall revenue growth on a trailing 12-month basis [10] Company Strategy and Development Direction - The company is focusing on enhancing cybersecurity capabilities and developing more flexible consumption models for enterprise customers [12] - Investments are being made in both enterprise-facing sales and marketing teams and R&D to strengthen capabilities targeting the enterprise segment [11] - The company aims to maintain gross margins of 80% to 82% and adjusted EBITDA margins of 26% to 28% [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability and delivering value to shareholders while investing in innovation [14] - The company anticipates that enterprise sales in the second quarter will be better than the first quarter, with meaningful improvement expected in the second half of the year [11] - Management noted that while sales cycles have elongated, they are not seeing deterioration in business conditions compared to previous quarters [30] Other Important Information - The company continues to buy back stock and has a cash flow that more than funds buybacks and dividends [14][18] - The Board approved a quarterly cash dividend of $0.6 per share to be paid on June 3, 2024 [18] Q&A Session Summary Question: What inning is the company in regarding changes in the sales team? - Management indicated they are in the second or third inning of seeing results from changes made to the sales team [22] Question: How are conversations regarding pricing power going? - Management stated that while there are inflationary cost pressures, they focus on operational efficiency rather than driving margins through price increases [24] Question: What are the capital allocation priorities? - The first priority is investing in organic growth, followed by balancing dividends and buybacks, and finally considering inorganic opportunities [26][27] Question: Is the business at an inflection point? - Management noted that while they are cautious about using the term "inflection point," they see trends improving compared to the previous year [30] Question: What happened in Q1 regarding service provider and enterprise revenue? - Management explained that enterprise revenue faced a tough comparison due to a strong Q1 last year, while service provider revenue showed recovery after delayed spending [33] Question: What is the investment focus in the sales process? - The focus is on technical capabilities for service providers and hiring experienced sales personnel for the enterprise segment [39] Question: What percentage of revenue comes from new customers? - Approximately 20% of revenue comes from new customers, with the majority being from existing customers [41] Question: What are the priorities for service provider investments? - Investments related to capacity and security are top priorities, while modernization projects are more likely to be delayed [52] Question: What is the penetration rate of security solutions among the customer base? - Management indicated that while they do not have specific data, there is significant opportunity for growth in security solutions among existing customers [54] Question: How has the exchange rate impacted Q1 results? - There was a modest impact from the Japanese yen exchange rate, but it was not significant enough to disclose [59]

A10 Networks (ATEN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this provider of networking technologies would post earnings of $0.27 per share when it actually produced earnings of $0.25, delivering a surprise of -7.41%.Over the last fo ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) A10 Networks reported Q1 2024 revenue of $60.7 million, a 5.2% YoY increase, with significant growth in GAAP and Non-GAAP net income and EPS Q1 2024 Key Financial Metrics (YoY Comparison) | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $60.7M | $57.7M | +5.2% YoY | | **GAAP Gross Margin** | 81.1% | 82.3% | -1.2 p.p. | | **Non-GAAP Gross Margin** | 81.9% | 83.1% | -1.2 p.p. | | **GAAP Net Income** | $9.7M | $4.0M | +142.5% YoY | | **Non-GAAP Net Income** | $12.7M | $9.9M | +28.3% YoY | | **GAAP Diluted EPS** | $0.13 | $0.05 | +160.0% YoY | | **Non-GAAP Diluted EPS** | $0.17 | $0.13 | +30.8% YoY | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Dhrupad Trivedi emphasized successful market navigation through diversification, enterprise growth, and continued focus on security and R&D investments - Successfully navigated market volatility, with diversification enabling the company to address near-term fluctuations in the Service Provider segment[3](index=3&type=chunk) - Investments in the enterprise market are yielding results, with deferred revenue growing faster than overall revenue, indicating positive buying behavior from enterprise customers[3](index=3&type=chunk) - Security solutions remain a strategic focus, accounting for **61% of consolidated revenue** in the quarter[3](index=3&type=chunk) - The company maintains solid profitability while increasing R&D investments to address evolving customer needs, including AI solutions[3](index=3&type=chunk) [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns) A10 Networks returned **$7.5 million** to shareholders in Q1 2024 through share repurchases and cash dividends, with a **$0.06 per share** dividend approved Q1 2024 Capital Return Summary | Activity | Amount | Details | | :--- | :--- | :--- | | **Share Repurchases** | $3.0M | 230,500 shares at an average price of $13.19 | | **Cash Dividends Paid** | $4.5M | - | | **Total Returned** | $7.5M | - | - The Board of Directors approved a quarterly cash dividend of **$0.06 per share**, payable on June 3, 2024[2](index=2&type=chunk) [Financial Statements (GAAP)](index=5&type=section&id=Financial%20Statements%20(GAAP)) GAAP financial statements for Q1 2024 show increased revenue and net income, stable balance sheet assets and liabilities, and improved operating cash flow [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 total net revenue increased to **$60.7 million**, with gross profit at **$49.2 million** and net income significantly rising to **$9.7 million** Q1 2024 vs Q1 2023 Income Statement Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Total net revenue** | $60,675 | $57,691 | | Products Revenue | $30,069 | $31,182 | | Services Revenue | $30,606 | $26,509 | | **Gross profit** | $49,231 | $47,475 | | **Income from operations** | $7,213 | $6,167 | | **Net income** | $9,726 | $3,958 | | **Diluted EPS** | $0.13 | $0.05 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets reached **$395.7 million**, with **$122.9 million** in cash, stable liabilities, and increased stockholders' equity Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $122,909 | $97,244 | | **Total current assets** | $276,098 | $271,824 | | **Total assets** | $395,658 | $389,809 | | **Total current liabilities** | $112,860 | $111,069 | | **Total liabilities** | $181,349 | $181,933 | | **Total stockholders' equity** | $214,309 | $207,876 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash from operations significantly improved to **$32.4 million**, with **$7.4 million** used in financing, ending with **$122.9 million** cash Q1 2024 vs Q1 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $32,444 | $(846) | | **Net cash provided by investing activities** | $643 | $5,367 | | **Net cash used in financing activities** | $(7,422) | $(3,973) | | **Net increase in cash and cash equivalents** | $25,665 | $548 | | **Cash and cash equivalents—end of period** | $122,909 | $68,519 | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP measures provide a clearer view of core operating performance by excluding specific items, with detailed reconciliations for key financial metrics - The company uses non-GAAP measures to provide a view of operating performance exclusive of unusual events or factors not directly affecting core operations[7](index=7&type=chunk) - Key adjustments to GAAP figures include stock-based compensation, restructuring expenses, cyber incident remediation expenses, and their income tax effects[9](index=9&type=chunk) [Net Income Reconciliation](index=6&type=section&id=Net%20Income%20Reconciliation) Q1 2024 Non-GAAP net income was **$12.7 million** (**$0.17 per diluted share**), adjusted primarily for stock-based compensation and tax effects GAAP to Non-GAAP Net Income Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP net income** | $9,726 | $3,958 | | Stock-based compensation | $3,989 | $3,970 | | Restructuring expense | $— | $1,861 | | Cyber incident remediation | $— | $1,353 | | Income tax-effect | $(970) | $(1,215) | | **Non-GAAP net income** | $12,745 | $9,927 | [Gross Profit and Operating Expenses Reconciliation](index=9&type=section&id=Gross%20Profit%20and%20Operating%20Expenses%20Reconciliation) Q1 2024 Non-GAAP gross profit was **$49.7 million** (**81.9% margin**), while Non-GAAP operating expenses increased to **$38.5 million** GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP gross profit** | $49,231 | $47,475 | | **Non-GAAP gross profit** | $49,702 | $47,964 | | **Non-GAAP gross margin** | 81.9% | 83.1% | GAAP to Non-GAAP Operating Expenses Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP total operating expenses** | $42,018 | $41,308 | | **Non-GAAP total operating expenses** | $38,500 | $34,613 | [Operating Income Reconciliation](index=10&type=section&id=Operating%20Income%20Reconciliation) Q1 2024 Non-GAAP operating income was **$11.2 million** (**18.5% margin**), a decrease from Q1 2023 due to higher expenses GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP income from operations** | $7,213 | $6,167 | | **Non-GAAP operating income** | $11,202 | $13,351 | | **Non-GAAP operating margin** | 18.5% | 23.1% | [EBITDA and Adjusted EBITDA Reconciliation](index=11&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) Q1 2024 Adjusted EBITDA was **$13.9 million**, reconciled from GAAP net income with standard and non-GAAP adjustments GAAP Net Income to Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP net income** | $9,726 | $3,958 | | EBITDA | $9,905 | $8,273 | | **Adjusted EBITDA** | $13,894 | $15,457 | [Other Information](index=1&type=section&id=Other%20Information) This section provides supplementary information including conference call details, forward-looking statement disclaimers, and a business overview [Conference Call Information](index=1&type=section&id=Conference%20Call%20Information) Details for the April 30, 2024, investor conference call, including dial-in and webcast information, are provided for results discussion - Management hosted a conference call on April 30, 2024, to discuss the financial results, with details provided for live access and replay[4](index=4&type=chunk) [Forward-Looking Statements](index=1&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements on strategy and growth, subject to risks detailed in the company's SEC filings - The report contains forward-looking statements regarding strategy, growth, and profitability, which are subject to known and unknown risks and uncertainties[5](index=5&type=chunk) - Readers are advised to consult the "Risk Factors" section in the company's periodic SEC filings for a comprehensive list of potential risks[6](index=6&type=chunk)

The Zacks Communication-Network Software industry players like Frontier Communications (FYBR) , A10 Networks (ATEN) and Weave Communications (WEAV) are gaining from the ongoing digitalization efforts that include a shift to cloud computing and the rapid deployment of 5G-based networks. The strong demand for network security benefits industry participants as a secure environment is required to run cloud-based applications. Industry players are leveraging AI and machine learning to develop security solutions, ...

Ever since the rise of computer technology, cybersecurity stocks have represented an important cog in the innovation ecosystem. However, their pertinence has risen significantly in recent years. First, cyberattacks are becoming increasingly complex and therefore damaging. Recently, Microsoft (NASDAQ:MSFT) stated that it’s still dissecting a data breach that occurred in January. That attack stemmed from a Russian state-sponsored actor, thus underscoring the wide addressable market for undervalued cybersecuri ...

If passive income is the equivalent of sushi, then cheap dividend stocks – if you’re not careful – is the equivalent of sushi bought at a gas station. Here’s what I mean.Many folks may be squeamish about the idea of eating raw fish. So, when eating sushi, it pays to eat from professionals who know what they’re doing. In the same manner, many people put serious money into passive-income providers because they tend to be blue-chip stalwarts. You can trust these folks.On the other hand, a convenience store is ...