Financial Data and Key Metrics Changes - A10 Networks reported record revenue of $72.1 million for Q3 2022, representing a 10.2% year-over-year increase [16] - Product revenue was $45.1 million, accounting for 62.6% of total revenue, up 13.3% year-over-year [16] - Non-GAAP operating income reached $19.5 million, up 34.2% compared to $14.5 million in the same quarter last year [18] - Non-GAAP net income for the quarter was $15.9 million, or $0.20 per share, an 18% increase from $0.17 per share in Q3 2021 [18][19] - Non-GAAP operating gross margin was over 80%, with adjusted EBITDA at 29.5% of revenue [14][18] Business Line Data and Key Metrics Changes - Revenue from Enterprise customers was the fastest-growing segment, indicating a balanced strategy between Enterprise and Service Provider segments [10] - Proprietary security-led product revenue increased by 21% on a trailing 12-month basis [12] - Overall product revenue increased by 13% compared to Q3 2021, driven by the combination of networking expertise and security needs [13] Market Data and Key Metrics Changes - Revenue from the Americas was $36 million, up 11.6% year-over-year; EMEA revenue was $11.2 million, up 2%; and Asia-Pacific revenue was $24.9 million, up 12.4% [16] - On a constant currency basis, revenue in Japan increased by 15% year-over-year [17] Company Strategy and Development Direction - A10 is focused on integrating cybersecurity into its offerings while leveraging its networking expertise [8] - The company maintains a diversified customer base, not reliant on any single customer or region [12] - A10's capital allocation strategy includes a 20% increase in quarterly dividends and a new $50 million share repurchase authorization [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue growth of 10% to 12% and EBITDA margins of 26% to 28% despite foreign currency headwinds [15][20] - The company is optimistic about continued demand for security-led solutions across various customer segments and geographies [24] Other Important Information - A10 ended the quarter with nearly $128 million in cash, maintaining a strong balance sheet with no debt [14][20] - The company is investing in R&D and sales and marketing to support organic growth [29] Q&A Session Summary Question: Will security-led solutions drive strong double-digit growth in the enterprise next year? - Management does not view it that way but sees continued traction in the large enterprise segment, expecting to achieve the 10% to 12% growth range [24] Question: Are there any positive spending patterns in the service provider area? - Management noted that service providers are increasingly concerned about cybersecurity, which impacts their network performance and revenue generation [26] Question: Is A10 exploring potential M&A opportunities? - Management indicated that while they are open to M&A, their primary focus remains on organic growth and expanding their product portfolio [29] Question: Are there inflationary pressures affecting A10? - Management acknowledged inflationary pressures in shipping, logistics, and labor but aims to offset these with productivity measures [39] Question: How will A10 fare in a potential recession? - Management believes their products are critical for customers, which should help maintain demand even in a recession [40] Question: What areas is A10 investing in for organic growth? - Investments are focused on enhancing cybersecurity capabilities and integrating security with network infrastructure [42][44] Question: How is A10 managing the strong USD appreciation in Japan? - Management stated that the strong USD has impacted revenue, but diversification across geographies helped mitigate some of the effects [46][47] Question: What is the recurring revenue percentage by the end of Q3? - Recurring revenue, including support and subscription contracts, makes up a little less than half of total revenue [48]

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 June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36343 A10 NETWORKS, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 20-1446869 (State or Other Jurisdiction ...

Financial Data and Key Metrics Changes - Revenue in Q1 2022 was $62.7 million, up 14.3% year-over-year [15] - Product revenue was $37 million, representing 59.1% of total revenue, up 21.3% year-over-year [15] - Gross margin in Q1 was 80.2%, with non-GAAP operating income of $11.7 million compared to $10.8 million in the previous year [17] - Non-GAAP income for the quarter was $10 million or $0.13 per share, compared to $6.3 million or $0.08 per share on a GAAP basis [18][19] Business Line Data and Key Metrics Changes - Security-led product revenue increased 20.1% year-over-year, with North America being the leading driver [11] - Services revenue, including maintenance and support, was $25.6 million, or 40.9% of total revenue [15] - Recurring revenue grew 8.9% year-over-year to $27.9 million, within the target range of 45% to 50% of total revenue [16] Market Data and Key Metrics Changes - Revenue from the Americas grew 25.5% year-over-year to $33 million [11] - EMEA revenue increased from $8.6 million to $11.9 million year-over-year [11] - Revenue from Asia, including Japan, declined from $20 million to $17.8 million, impacted by economic conditions and COVID-19 [11][15] Company Strategy and Development Direction - The company aims to achieve the Rule of 40, targeting a combined revenue growth and EBITDA margin of 40% or greater [8] - Focus on integrating security into all networking solutions to differentiate technology offerings [10] - Continued investment in growth opportunities while balancing profitability [12] Management's Comments on Operating Environment and Future Outlook - Management noted that cybersecurity remains a primary growth catalyst, with increasing focus from CIOs and IT leaders on security [9][13] - The company is well-positioned to achieve high-end revenue growth targets of 10% to 12% for the full year [19] - Management expressed confidence in navigating supply chain issues and maintaining operational performance [13] Other Important Information - The company repurchased $28.3 million in stock and returned $3.9 million to shareholders in dividends during the quarter [8][19] - Deferred revenue was $121.3 million, up 7.2% year-over-year, consistent with typical seasonality [16] Q&A Session Summary Question: Supply chain challenges and performance consistency - Management highlighted long-term planning and regionalizing supply chains as key strategies to mitigate supply chain issues [23][24] Question: Competitive landscape in the current security environment - Management noted competition primarily from established players in the DDoS marketplace and emphasized the importance of high reliability and expertise over price [25][26] Question: Product gross margin contraction - Management indicated that variations in product mix and input cost inflation were factors affecting gross margin [30][31] Question: Impact of geopolitical events on EMEA - Management observed increased importance of cybersecurity in EMEA, with expectations of budget prioritization despite economic uncertainty [36][38] Question: Order visibility and pipeline conviction - Management discussed refining sales processes and maintaining visibility on project budgets and approvals, indicating improved visibility compared to previous years [50][52]

A10 Networks, Inc. (NYSE:ATEN) Q3 2021 Results Earnings Conference Call October 28, 2021 4:30 PM ET Company Participants Jeff Stanlis - Investor Relations Dhrupad Trivedi - President and Chief Executive Officer Brian Becker - Chief Financial Officer Conference Call Participants Tyler Burmeister - Craig-Hallum Capital Group Anja Soderstrom - Sidoti & Company Hendi Susanto - Gabelli Fund Operator Good day and welcome to the A10 Networks Q3 2021 Earnings Conference Call. All participants will be in listen-only ...