A10 Networks(ATEN) - 2024 Q3 - Quarterly Results

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]