NYSE$ATEN

A10 Networks Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

A10 Networks' first quarter results for 2024 were reported, showcasing revenue growth and increased earnings per share.

A10 Networks reported revenue of $60.7 million, a 5.2% year-over-year increase, and a GAAP net income of $9.7 million, or $0.13 per diluted share. The company's diversification strategy and focus on security solutions contributed to the solid results.

  • Revenue increased by 5.2% year-over-year, reaching $60.7 million.
  • GAAP net income was $9.7 million, or $0.13 per diluted share, compared to $4.0 million, or $0.05 per diluted share in Q1 2023.
  • Non-GAAP net income was $12.7 million, or $0.17 per diluted share, compared to $9.9 million, or $0.13 per diluted share in Q1 2023.
  • The company returned $7.5 million to investors through share repurchases and cash dividends.

Headline financials

Total Revenue

$60.7M

Previous: $57.7M+5.2%
EPS

$0.13

Previous: $0.13+0.0%
Non-GAAP Gross Margin

81.9%

No prior period
Non-GAAP Operating Income

$11.2M

No prior period
Non-GAAP Operating Margin

18.5%

No prior period
Adjusted EBITDA

$13.9M

No prior period
Adjusted EBITDA Margin

22.9%

No prior period
Capital Expenditures

-$2.93M

Previous: -$2.68M-9.3%
Free Cash Flow

$6.8M

Previous: $1.28M+430.1%
Net Income

$9.73M

Previous: $3.96M+145.7%
Operating Income

$7.21M

Previous: $6.17M+17.0%
Gross Profit

$49.2M

Previous: $47.5M+3.7%
R&D Expense

$14.1M

No prior period
Stock-Based Comp

$3.84M

Previous: $3.74M+2.6%

Revenue & EPS history

A10 Networks · Revenue · Quarterly

$60.7M

Q1 2024+5.2%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

A10 Networks · $57.8M total across 2 segments · Q3 2023

  • Products
    $30.3M
  • Services
    $27.5M

Forward guidance

A10 anticipates continued growth in enterprise revenue throughout the year, driven by active pipeline and customer engagements. The company expects the demand for security solutions to remain strong.

Tailwinds

  • Enterprise revenue is expected to grow throughout the year.
  • Active pipeline and customer engagements are driving enterprise revenue growth.
  • Demand for security solutions remains strong.
  • Investments in R&D are addressing evolving customer needs, including AI solutions.
  • Diversification in customer type and region provides a durable foundation.

Headwinds

  • The economic environment remains somewhat unpredictable.
  • Market volatility continues to pose challenges.
  • Service Provider fluctuations may impact near-term results.
  • Unforeseen capital needs may require diverting funds from dividend or stock repurchase programs.
  • Global macroeconomic or political conditions could adversely affect the business and financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+2.9%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.8%

Avg return

30 days after

62%

33 / 53 earnings

Positive

+37.6%

Q3 2021

Best reaction

-18.7%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-3.9%+6.8%
Q4 2025+10.3%+19.4%+16.8%
Q3 2025+3.5%-1.8%+1.4%
Q1 2025-0.6%+2.9%+4.9%
Q4 2024+2.7%+1.3%-2.9%
Q3 2024+6.3%+9.4%+19.0%
Q2 2024-7.1%-7.5%-2.3%
Q1 2024+14.7%+13.1%+12.7%
Q4 2023+0.2%+2.4%+4.0%
Q3 2023+6.6%+9.4%+14.3%
Q2 2023+5.3%+6.2%+0.3%
Q1 2023-2.3%-2.1%+5.5%
Q4 2022-4.5%-3.9%-5.3%
Q3 2022+8.2%+8.7%+13.0%
Q2 2022+3.5%+2.1%-11.8%
Q1 2022+14.0%+1.4%+9.5%
Q4 2021-5.9%-5.5%-3.1%
Q3 2021+37.6%+13.7%+12.2%
Q2 2021+9.9%+12.4%+21.9%
Q1 2021-8.3%-9.2%+3.0%
Q4 2020-12.4%-17.2%-9.4%
Q3 2020+5.4%-1.0%+19.4%
Q2 2020+14.2%+11.8%+19.1%
Q1 2020+8.2%-1.6%+3.3%
Q4 2019+0.0%+0.1%-39.8%
Q3 2019+12.9%+11.5%+4.0%
Q2 2019+2.3%-2.6%-6.1%
Q1 2019-5.7%-9.7%-13.1%
Q4 2018-7.6%-4.9%-1.9%
Q3 2018+3.8%+10.4%+12.3%
Q1 2018+1.0%-4.2%-11.9%
Q2 2018+1.0%-4.2%-11.9%
Q4 2017-0.3%+0.3%-12.5%
Q3 2017+0.9%-0.9%+9.6%
Q2 2017+12.7%+12.6%-0.5%
Q1 2017-11.7%-13.4%-8.3%
Q4 2016+14.7%+17.1%+10.2%
Q3 2016-17.7%-15.7%-5.3%
Q2 2016+4.1%+5.7%+31.2%
Q1 2016-9.7%
Q4 2015+13.4%
Q3 2015+20.5%
Q2 2015+24.5%
Q1 2015+16.3%
Q4 2012+5.6%
Q4 2014-18.7%
Q3 2013+0.5%
Q3 2014+7.1%
Q2 2013-5.8%
Q2 2014-13.3%
Q1 2013-1.4%
Q4 2013-1.4%
Q1 2014-5.3%
Q3 2012

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