NYSE$ATEN

A10 Networks Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

A10 Networks's financial performance decreased due to volatility in the North American service provider market, while maintaining solid profitability and returning capital to shareholders.

A10 Networks reported a decrease in revenue for Q2 2024, impacted by volatility in the North American service provider market. However, the company maintained solid profitability and continued to return capital to shareholders through stock repurchases and dividends. The Enterprise segment showed growth, increasing 25% during the quarter.

  • Revenue was $60.1 million, compared to $65.8 million in Q2 2023.
  • GAAP net income was $9.5 million, or $0.13 per diluted share, compared to $11.6 million, or $0.15 per diluted share in Q2 2023.
  • Non-GAAP net income was $13.2 million, or $0.18 per diluted share, compared to $14.5 million, or $0.19 per diluted share in Q2 2023.
  • The company returned $16.3 million to investors through share repurchases and cash dividends.

Headline financials

Total Revenue

$60.1M

Previous: $65.8M-8.7%
EPS (adj)

$0.18

Previous: $0.19-5.3%
Capital Expenditures

-$6.41M

Previous: -$5.07M-26.6%
Free Cash Flow

$3.06M

Previous: $6.56M-53.3%
Net Income

$9.48M

Previous: $11.6M-18.5%
Operating Income

$7.92M

Previous: $12.3M-35.5%
Gross Profit

$48.1M

Previous: $52.4M-8.2%
R&D Expense

$14.7M

No prior period
Stock-Based Comp

$4.27M

Previous: $3.47M+22.9%

Revenue & EPS history

A10 Networks · Revenue · Quarterly

$60.1M

Q2 2024-8.7%vs Q2 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

The North American service provider market remains volatile, impacting quarter-to-quarter visibility. Continued investment in research and development to capitalize on AI-driven market potential.

Tailwinds

  • Demand for security-led solutions remains robust.
  • Enterprise segment continues to grow.
  • Enterprise revenue increased 25% during the second quarter
  • Continued investment in research and development, focused on enterprise-targeted solutions and capitalizing on AI-driven market potential.
  • Business model enables solid and consistent profitability.

Headwinds

  • North American service provider market remains volatile, impacting quarter-to-quarter visibility.
  • Elongated sales cycles have slowed service provider revenue.
  • Macro challenges persist.
  • Revenue diversification is needed to navigate challenging market conditions.
  • Customer opportunities may be delayed.

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 Q2 2024

Historical avgQ2 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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