12% Full-Year Revenue Growth Drives Record
Profitability
A10 Networks (NYSE: ATEN), a leading provider of cybersecurity
and infrastructure solutions, today announced financial results for
its fourth quarter and full-year period ended December 31,
2022.
Fourth Quarter 2022 Financial
Summary
- Record revenue of $77.6 million, up 9.9% year-over-year.
- Revenue growth was broad-based, with increases in North America
and APAC, as well as Japan on a constant currency basis.
- GAAP gross margin of 79.7%; non-GAAP gross margin of 80.3% as a
result of better product mix and continued successful navigation of
short-term input cost pressures.
- GAAP net income of $18.0 million, or $0.24 per diluted share,
compared with GAAP net income of $10.7 million, or $0.13 per
diluted share in the fourth quarter of 2021.
- Non-GAAP net income of $18.4 million, or $0.24 per diluted
share (non-GAAP EPS), compared with non-GAAP net income of $16.4
million, or $0.20 per diluted share in the fourth quarter of
2021.
- Adjusted EBITDA of $22.3 million, representing 28.7% of
revenue, in line with stated business model goals, and representing
more Adjusted EBITDA than A10 generated in all of 2018 and 2019
combined.
- The Board of Directors approved a quarterly cash dividend of
$0.06 per share, payable on March 1, 2023 to stockholders of record
at the close of business on February 17, 2023.
Full-Year 2022 Financial
Summary
- Record revenue of $280.3 million, up 12.1% year-over-year.
- Revenue growth was broad-based, with increases in all major
geographies and customer verticals on a constant currency
basis.
- GAAP gross margin of 79.7%; non-GAAP gross margin of
80.3%.
- GAAP net income of $46.9 million, or $0.60 per diluted share,
compared with GAAP net income (inclusive of a non-recurring $65.4
million income tax benefit related to sustained profitability) of
$94.9 million, or $1.19 per diluted share in 2021.
- Non-GAAP net income of $57.7 million, or $0.74 per diluted
share, compared with non-GAAP net income of $50.1 million, or $0.63
per diluted share in 2021.
- Q3 and Q4 2022 GAAP EPS of $0.16 and $0.24 per diluted share,
respectively, compared to Q3 and Q4 2021 GAAP EPS of $0.94 and
$0.13 per diluted share, respectively. Full-year 2022 GAAP EPS was
$0.60 vs. $1.19 last year.
- With Q3 and Q4 2022 non-GAAP EPS of $0.20 and $0.24 per diluted
share, respectively, and Q3 and Q4 2021 non-GAAP EPS of $0.17 and
$0.20 per diluted share, respectively, A10’s profit accelerated in
the second-half of 2022 compared to the second-half of 2021.
Full-year 2022 non-GAAP EPS was $0.74 vs. $0.63 last year.
- Adjusted EBITDA of $75.1 million, representing 26.8% of
revenue, in line with stated goals for profitability.
- Full-year cash flow from operations increased 31.9% to $66.1
million, compared to $50.1 million in 2021.
- A10 returned more than $95 million to shareholders during 2022,
repurchasing approximately 6.1 million shares at an average price
of $13.01 per share for a total of $79.3 million and issuing $15.9
million in cash dividends.
($ in millions, except
per-share)
2019
2020
2021
2022
2022 vs. 2021
Revenue
$212.6
$225.5
$250.0
$280.3
+12.1%
Adjusted EBITDA %
5.5%
20.2%
25.0%
26.8%
+182 bps
GAAP EPS
($0.23)
$0.22
$1.19
$0.60
(49.1%)
Non-GAAP EPS
$0.03
$0.44
$0.63
$0.74
+18.6%
A reconciliation between GAAP and non-GAAP information is
contained in the financial statements below.
“Strong demand for our proprietary security-led solutions drove
record revenues for the quarter and the full-year, with continued
broad-based growth across both enterprises and service providers
and in each key geographic region, on a constant-currency basis,”
said Dhrupad Trivedi, President and Chief Executive Officer of A10
Networks. “Increasingly, A10 is positioned as a diversified,
differentiated security solutions provider, structured to mitigate
fluctuations from any single customer or region. While we are not
immune from recessionary impacts, our industry leadership makes our
offerings a priority over discretionary investments. We remain
well-positioned for continued success with both enterprise and
service provider customers.”
“In 2022 we successfully navigated supply chain constraints,
maintained robust gross margins and effectively managed our
operating expenses, which drove profitability and free cash flow,”
added Trivedi. “With revenue growth that outpaced operating
expenses, we were able to grow our bottom line faster than our top
line. For the year, we delivered record non-GAAP operating income
and EBITDA margins, enabling us to repurchase more than $79.3
million of our stock and return further capital to shareholders
through meaningful cash dividends. Simultaneously, we continued to
strategically invest in technology, augmenting our already durable
differentiators and making our business increasingly resilient. We
remain committed to delivering revenue growth that outpaces our
peer set, navigating recessionary headwinds better than our peers
and delivering solid bottom-line growth, with expected double-digit
growth in 2023 full-year non-GAAP EPS. We continue to carry no debt
and hold $151.0 million of cash and cash equivalents.”
Conference Call
Management will host a call at 1:30 p.m. Pacific time (4:30 p.m.
Eastern time) today, February 7, 2023, to discuss these results.
Interested parties may access the conference call by dialing (844)
200-6205 (toll-free) or (929) 526-1599 and referencing access code:
125471.
A live audio webcast of the conference call will be accessible
from the “Investor Relations” section of A10 Network’s website at
investors.a10networks.com. The webcast will be archived for at
least 90 days. A telephonic replay of the conference call will be
available two hours after the conclusion of the live call and will
run for seven days and may be accessed by dialing (866) 813-9403
(toll-free) or (929) 458-6194 and entering the passcode 897429.
Forward-Looking
Statements
This press release contains “forward-looking statements,”
including statements regarding our anticipated future financial
results, quarterly dividend payments, drivers of growth, strategy,
demand, supply chain challenges, positioning, growth and Adjusted
EBITDA and non-GAAP EPS expectations. Forward-looking statements
are subject to known and unknown risks and uncertainties and are
based on assumptions that may prove to be incorrect, which could
cause actual results to differ materially from those expected or
implied by the forward-looking statements. Factors that may cause
actual results to differ include the impact of the COVID-19
pandemic on our business and the business of our customers; a
significant decline in global macroeconomic or political conditions
that have an adverse impact on our business and financial results;
business interruptions related to our supply chain; our ability to
manage our business and expenses if customers cancel or delay
orders; execution risks related to closing key deals and improving
our execution; the continued market adoption of our products; our
ability to successfully anticipate market needs and opportunities;
our timely development of new products and features; our ability to
achieve or maintain profitability; any loss or delay of expected
purchases by our largest end-customers; our ability to maintain or
improve our competitive position; competitive and execution risks
related to cloud-based computing trends; our ability to attract and
retain new end-customers and our largest end-consumers; our ability
to maintain and enhance our brand and reputation; changes demanded
by our customers in the deployment and payment model for our
products; continued growth in markets relating to network security;
the success of any future acquisitions or investments in
complementary companies, products, services or technologies; the
ability of our sales team to execute well; our ability to shorten
our close cycles; the ability of our channel partners to sell our
products; variations in product mix or geographic locations of our
sales; risks associated with our presence in international markets;
weaknesses or deficiencies in our internal control over financial
reporting; our ability to timely file periodic reports required to
be filed under the Securities Exchange Act of 1934; and other risks
that are described in “Risk Factors” in our periodic filings with
the Securities and Exchange Commission, including our Form 10-K
filed with the Securities and Exchange Commission on March 8, 2022.
We do not intend to update or alter our forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
Non-GAAP Financial
Measures
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), we refer to certain non-GAAP financial measures, including
non-GAAP net income, non-GAAP net income per basic and diluted
share (or non-GAAP EPS), non-GAAP gross profit and gross margin,
non-GAAP operating income and operating margin, non-GAAP operating
expenses, and Adjusted EBITDA. Non-GAAP financial measures do not
have any standardized meaning and are therefore unlikely to be
comparable to similarly titled measures presented by other
companies.
A10 Networks considers these non-GAAP financial measures to be
important because they provide useful measures of the operating
performance of the company, exclusive of unusual events or factors
that do not directly affect what we consider to be our core
operating performance and are used by the company's management for
that purpose.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP.
We define non-GAAP net income as our GAAP net income excluding:
(i) stock-based compensation and related payroll tax, (ii)
impairment of investment, (iii) amortization expense related to
acquisition, (iv) global distribution center transition expense,
(v) litigation and investigation expense (recovery, (vi)
non-recurring facilities expense, (vii) restructuring expense and
related taxes, (viii) tax benefit of amended returns and (ix)
release of deferred tax asset valuation allowance. We define
non-GAAP net income per basic and diluted share as our non-GAAP net
income divided by our basic and diluted weighted-average shares
outstanding. We define tax effected non-GAAP net income as non-GAAP
net income adjusted for the income tax effect of excluding the
non-GAAP items (i) to (ix) listed above. We define non-GAAP gross
profit as our GAAP gross profit excluding (i) stock-based
compensation and related payroll tax, and (ii) global distribution
center transition expense. We define non-GAAP gross margin as our
non-GAAP gross profit divided by our GAAP revenue. We define
non-GAAP operating income as our GAAP income from operations
excluding (i) stock-based compensation and related payroll tax,
(ii) amortization expense related to acquisition and (iii) global
distribution center transition expense. We define non-GAAP
operating margin as our non-GAAP operating income divided by our
GAAP revenue. We define non-GAAP operating expenses as our GAAP
operating expenses excluding (i) stock-based compensation and
related payroll tax, (ii) amortization expense related to
acquisition and (iii) global distribution center transition
expense. We define Adjusted EBITDA as our GAAP net income excluding
(i) interest and other (income) expense, net, (ii) depreciation and
amortization expense, (iii) provision for (benefit from) income
taxes, (iv) stock-based compensation and related payroll tax, (v)
litigation and investigation expense (recovery), (vi) non-recurring
facilities expense, (vi) impairment of investment, (vii) global
distribution center transition expense and (ix) restructuring
expense.
Non-GAAP financial measures are presented for supplemental
informational purposes only for understanding the company's
operating results.
About A10 Networks
A10 Networks (NYSE: ATEN) provides secure application services
and solutions for on-premises, multi-cloud and edge-cloud
environments at hyperscale. Our mission is to enable service
providers and enterprises to deliver business-critical applications
that are secure, available and efficient for multi-cloud
transformation and 5G readiness. We deliver better business
outcomes that support investment protection, new business models
and help future-proof infrastructures, empowering our customers to
provide the most secure and available digital experience. Founded
in 2004, A10 Networks is based in San Jose, Calif. and serves
customers globally. For more information, visit
https://www.a10networks.com/ and follow us @A10Networks.
The A10 logo and A10 Networks are trademarks or registered
trademarks of A10 Networks, Inc. in the United States and other
countries. All other trademarks are the property of their
respective owners.
Source: A10 Networks, Inc.
A10 NETWORKS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands,
except per share amounts, on a GAAP Basis)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Revenue:
Products
$
49,577
$
43,680
$
173,201
$
148,398
Services
28,057
26,991
107,137
101,644
Total revenue
77,634
70,671
280,338
250,042
Cost of revenue:
Products
11,793
9,460
40,135
32,620
Services
3,950
4,722
16,697
20,885
Total cost of revenue
15,743
14,182
56,832
53,505
Gross profit
61,891
56,489
223,506
196,537
Operating expenses:
Sales and marketing
22,351
25,456
88,511
85,651
Research and development
16,916
13,027
58,398
54,077
General and administrative
6,358
6,161
23,518
23,421
Total operating expenses
45,625
44,644
170,427
163,149
Income from operations
16,266
11,845
53,079
33,388
Non-operating income (expense):
Interest income
568
103
1,304
409
Interest and other income
(expense), net
(464
)
(356
)
(1,667
)
(2,155
)
Total non-operating income
(expense), net
104
(253
)
(363
)
(1,746
)
Income before income taxes
16,370
11,592
52,716
31,642
Provision for (benefit from) income
taxes
(1,660
)
864
5,808
(63,245
)
Net income
$
18,030
$
10,728
$
46,908
$
94,887
Net income per share:
Basic
$
0.25
$
0.14
$
0.62
$
1.23
Diluted
$
0.24
$
0.13
$
0.60
$
1.19
Weighted-average shares used in computing
net income per share:
Basic
73,560
77,548
75,528
77,046
Diluted
75,392
80,316
77,751
80,037
A10 NETWORKS, INC.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited, in thousands, except per share amounts)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
GAAP net income
$
18,030
$
10,728
$
46,908
$
94,887
Non-GAAP items:
Stock-based compensation and
related payroll tax
3,546
3,598
13,969
15,031
Impairment of investment
1,000
—
1,000
—
Amortization expense related to
acquisition
—
—
—
505
Global distribution center
transition expense
—
2,117
—
5,063
Tax benefit from amended
returns
(4,176
)
—
(4,176
)
—
Release of deferred tax asset
valuation allowance
—
—
—
(65,417
)
Total non-GAAP items
370
5,715
10,793
(44,818
)
Non-GAAP net income (1)
$
18,400
$
16,443
$
57,701
$
50,069
GAAP net income per share:
Basic
$
0.25
$
0.14
$
0.62
$
1.23
Diluted
$
0.24
$
0.13
$
0.60
$
1.19
Non-GAAP items:
Stock-based compensation and
related payroll tax
0.05
0.04
0.18
0.19
Impairment of investment
0.01
—
0.01
—
Amortization expense related to
acquisition
—
—
—
0.01
Global distribution center
transition expense
—
0.03
—
0.06
Tax benefit from amended
returns
(0.06
)
—
(0.05
)
—
Release of deferred tax asset
valuation allowance
—
—
—
(0.82
)
Total non-GAAP items
—
0.07
0.14
(0.56
)
Non-GAAP net income per share: (1)
Basic
$
0.25
$
0.21
$
0.76
$
0.65
Diluted
$
0.24
$
0.20
$
0.74
$
0.63
Weighted average shares used in computing
net income per share:
Basic
73,560
77,548
75,528
77,046
Diluted
75,392
80,316
77,751
80,037
- Net income and earnings per share excluding adjustments are
non-GAAP financial measures presented as supplemental financial
measures to enable a user of the financial information to
understand the impact of these adjustments on reported results.
These financial measures should not be considered an alternative to
net income, operating income, cash flows provided by operating
activities, or any other measure of financial performance or
liquidity presented in accordance with U.S. GAAP. Our adjusted net
income and earnings per share may not be comparable to similarly
titled measures of another company because all companies may not
calculate adjusted net income and earnings per share in the same
manner.
A10 NETWORKS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par
value, on a GAAP Basis)
December 31,
2022
December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents
$
67,971
$
78,925
Marketable securities
83,018
106,117
Accounts receivable, net of
allowances of $32 and $543, respectively
72,928
61,795
Inventory
19,693
22,462
Prepaid expenses and other
current assets
13,381
14,720
Total current assets
256,991
284,019
Property and equipment, net
19,743
10,692
Goodwill
1,307
1,307
Deferred tax assets, net
63,183
65,773
Other non-current assets
27,881
31,294
Total assets
$
369,105
$
393,085
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
6,725
$
6,852
Accrued and other
liabilities
37,183
36,101
Deferred revenue, current
74,340
73,132
Total current liabilities
118,248
116,085
Deferred revenue, non-current
52,652
48,499
Other non-current liabilities
17,193
19,613
Total liabilities
188,093
184,197
Stockholders' equity:
Common stock, $0.00001 par
value: 500,000 shares authorized; 87,123 and 84,717 shares issued
and 73,738 and 77,423 shares outstanding, respectively
1
1
Treasury stock, at cost: 13,384
and 7,294 shares, respectively
(134,934
)
(55,677
)
Additional paid-in-capital
466,927
446,035
Dividends paid
(19,802
)
(3,880
)
Accumulated other comprehensive
loss
(726
)
(229
)
Accumulated deficit
(130,454
)
(177,362
)
Total stockholders' equity
181,012
208,888
Total liabilities and stockholders'
equity
$
369,105
$
393,085
A10 NETWORKS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands, on
a GAAP Basis)
Year Ended December
31,
2022
2021
Cash flows from operating activities:
Net income
$
46,908
$
94,887
Adjustments to reconcile net
income to net cash provided by (used in) operating activities:
Depreciation and
amortization
7,381
8,907
Stock-based compensation
13,331
14,422
Provision for doubtful accounts
and sales returns
166
(616
)
Release of deferred tax asset
valuation allowance and other adjustments
—
(64,186
)
Other non-cash items
591
1,688
Changes in operating assets and
liabilities:
Accounts receivable
(10,065
)
(10,399
)
Inventory
2,035
(1,826
)
Prepaid expenses and other
assets
1,627
(2,134
)
Accounts payable
103
1,995
Accrued and other
liabilities
(1,338
)
(5,573
)
Deferred revenue
5,361
12,932
Net cash provided by operating
activities
66,100
50,097
Cash flows from investing activities:
Proceeds from sales of
marketable securities
6,252
6,865
Proceeds from maturities of
marketable securities
71,045
88,790
Purchases of marketable
securities
(55,411
)
(128,554
)
Purchases of property and
equipment
(10,799
)
(5,171
)
Net cash provided by (used in)
investing activities
11,087
(38,070
)
Cash flows from financing activities:
Proceeds from issuance of
common stock under employee equity incentive plans
7,038
5,764
Repurchases of common stock
(79,257
)
(18,267
)
Payments for dividends
(15,922
)
(3,880
)
Net cash used in financing
activities
(88,141
)
(16,383
)
Net decrease in cash and cash
equivalents
(10,954
)
(4,356
)
Cash and cash equivalents—beginning of
period
78,925
83,281
Cash and cash equivalents—end of
period
$
67,971
$
78,925
Non-cash investing and financing
activities:
Transfers between inventory and
property and equipment
$
733
$
94
Purchases of property and
equipment included in accounts payable
$
230
$
6
A10 NETWORKS, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
(unaudited, in thousands, except percentages)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
GAAP gross profit
$
61,891
$
56,489
$
223,506
$
196,537
GAAP gross margin
79.7
%
79.9
%
79.7
%
78.6
%
Non-GAAP adjustments:
Stock-based compensation and
related payroll tax
414
398
1,662
1,733
Global distribution center
transition expense
—
117
—
655
Non-GAAP gross profit
$
62,305
$
57,004
$
225,168
$
198,925
Non-GAAP gross margin
80.3
%
80.7
%
80.3
%
79.6
%
A10 NETWORKS, INC.
RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES TO NON-GAAP TOTAL
OPERATING EXPENSES (unaudited, in thousands)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
GAAP total operating expenses
$
45,625
$
44,644
$
170,427
$
163,149
Non-GAAP adjustments:
Stock-based compensation and
related payroll tax
(3,132
)
(3,200
)
(12,307
)
(13,298
)
Amortization expense related to
acquisition
—
—
—
(505
)
Global distribution center
transition expense
—
(2,000
)
—
(4,408
)
Non-GAAP total operating expenses
$
42,493
$
39,444
$
158,120
$
144,938
A10 NETWORKS, INC.
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP OPERATING
INCOME (unaudited, in thousands, except percentages)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
GAAP income from operations
$
16,266
$
11,845
$
53,079
$
33,388
GAAP operating margin
21.0
%
16.8
%
18.9
%
13.4
%
Non-GAAP adjustments:
Stock-based compensation and
related payroll tax
3,546
3,598
13,969
15,031
Amortization expense related to
acquisition
—
—
—
505
Global distribution center
transition expense
—
2,117
—
5,063
Non-GAAP operating income
$
19,812
$
17,560
$
67,048
$
53,987
Non-GAAP operating margin
25.5
%
24.8
%
23.9
%
21.6
%
A10 NETWORKS, INC.
RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA
(NON-GAAP) (unaudited, in thousands, except percentages)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
GAAP net income
$
18,030
$
10,728
$
46,908
$
94,887
GAAP net income margin
23.2
%
15.2
%
16.7
%
37.9
%
Exclude: Interest and other
(income) expense, net
(104
)
253
363
1,746
Exclude: Depreciation and
amortization
2,473
1,863
8,012
8,907
Exclude: Provision for (benefit
from) income taxes
(1,660
)
864
5,808
(63,245
)
EBITDA
18,739
13,708
61,091
42,295
Exclude: Stock-based
compensation and related payroll tax
3,546
3,598
13,969
15,031
Exclude: Global distribution
center transition expense
—
2,117
—
5,063
Adjusted EBITDA
$
22,285
$
19,423
$
75,060
$
62,389
Adjusted EBITDA margin
28.7
%
27.5
%
26.8
%
25.0
%
A10 NETWORKS, INC.
RECONCILIATION OF ADJUSTED EBITDA (NON-GAAP) TO TAX EFFECTED
NON-GAAP NET INCOME (unaudited, in thousands)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Adjusted EBITDA
$
22,285
$
19,423
$
75,060
$
62,389
Reconciling items:
Interest and other income
(expense), net
104
(253
)
(363
)
(1,746
)
Depreciation and
amortization
(2,473
)
(1,863
)
(8,012
)
(8,907
)
Provision for (benefit from)
income taxes (1)
(2,516
)
(864
)
(9,984
)
(2,172
)
Impairment of investment
1,000
—
1,000
—
Amortization expense related to
acquisition
—
—
—
505
Income tax effect of non-GAAP
items (2)
(889
)
(1,095
)
(5,487
)
(5,857
)
Total
(4,774
)
(4,075
)
(22,846
)
(18,177
)
Tax effected non-GAAP net income
17,511
15,348
52,214
44,212
Exclude: Income tax effect of
non-GAAP items (2)
889
1,095
5,487
5,857
Non-GAAP net income
$
18,400
$
16,443
$
57,701
$
50,069
- In addition to provision for (benefit from) income taxes,
includes tax benefit from amended returns of $4,176 thousand in the
three months and year ended December 31, 2022 and release of
deferred tax asset valuation allowance of $65,417 thousand in the
year ended December 31, 2021.
- For the three months and year ended December 31, 2022 this
represents the tax impact using estimated non-GAAP profit before
tax rates of 4.8% and 9.5%, respectively. For the three months and
year ended December 31, 2021 this represents the tax impact using
estimated non-GAAP profit before tax rates of 6.7% and 11.7%,
respectively.
A10 NETWORKS, INC. Q3 2022 AND
Q3 2021 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited, in thousands, except per share amounts)
Three Months Ended
September 30, 2022
September 30, 2021
GAAP net income
$
12,113
$
74,886
Non-GAAP items:
Stock-based compensation and related
payroll tax
3,798
4,201
Global distribution center transition
expense
—
(1
)
Release of deferred tax asset valuation
allowance
—
(65,417
)
Total non-GAAP items
3,798
(61,217
)
Non-GAAP net income (1)
$
15,911
$
13,669
GAAP net income per share:
Basic
$
0.16
$
0.97
Diluted
$
0.16
$
0.94
Non-GAAP items:
Stock-based compensation and related
payroll tax
0.04
0.05
Global distribution center transition
expense
—
—
Release of deferred tax asset valuation
allowance
—
(0.82
)
Total non-GAAP items
0.04
(0.77
)
Non-GAAP net income per share: (1)
Basic
$
0.21
$
0.18
Diluted
$
0.20
$
0.17
Weighted average shares used in computing
net income per share:
Basic
75,881
77,149
Diluted
77,679
79,927
- Net income and earnings per share excluding adjustments are
non-GAAP financial measures presented as supplemental financial
measures to enable a user of the financial information to
understand the impact of these adjustments on reported results.
These financial measures should not be considered an alternative to
net income, operating income, cash flows provided by operating
activities, or any other measure of financial performance or
liquidity presented in accordance with U.S. GAAP. Our adjusted net
income and earnings per share may not be comparable to similarly
titled measures of another company because all companies may not
calculate adjusted net income and earnings per share in the same
manner.
A10 NETWORKS, INC. 2020 AND
2019 RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED
EBITDA (NON-GAAP) (unaudited, in thousands, except
percentages)
Year Ended December
31,
2020
2019
GAAP net income
$
17,816
$
(17,819
)
GAAP net income margin
7.9
%
(8.4
) %
Exclude: Interest and other
(income) expense, net
(1,406
)
(682
)
Exclude: Depreciation and
amortization
11,303
10,028
Exclude: Provision for (benefit
from) income taxes
1,323
1,407
EBITDA
29,036
(7,066
)
Exclude: Stock-based
compensation and related payroll tax
12,817
16,790
Exclude: Litigation and
investigation expense (recovery)
30
(1,066
)
Exclude: Non-recurring
facilities expense
795
425
Exclude: Global distribution
center transition expense
2,884
—
Exclude: Restructuring
expense
—
2,530
Adjusted EBITDA
$
45,562
$
11,613
Adjusted EBITDA margin
20.2
%
5.5
%
A10 NETWORKS, INC. 2020 AND
2019 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited, in thousands, except per share amounts)
Year Ended December
31,
2020
2019
GAAP net income (loss)
$
17,816
$
(17,819
)
Non-GAAP items:
Stock-based compensation and related
payroll tax
12,817
16,790
Amortization expense related to
acquisition
1,011
1,012
Litigation and investigation expense
(recovery)
30
(1,066
)
Non-recurring facilities expense
795
425
Global distribution center transition
expense
2,884
—
Restructuring expense and related
taxes
—
2,676
Total non-GAAP items
17,537
19,837
Non-GAAP net income (1)
$
35,353
$
2,018
GAAP net income (loss) per share:
Basic
$
0.23
$
(0.23
)
Diluted
$
0.22
$
(0.23
)
Non-GAAP items:
Stock-based compensation and related
payroll tax
0.16
0.22
Amortization expense related to
acquisition
0.01
0.01
Litigation and investigation expense
(recovery)
—
(0.01
)
Non-recurring facilities expense
0.01
0.01
Global distribution center transition
expense
0.04
—
Restructuring expense and related
taxes
—
0.03
Total non-GAAP items
0.22
0.26
Non-GAAP net income per share: (1)
Basic
$
0.45
$
0.03
Diluted
$
0.44
$
0.03
Weighted average shares used in computing
net income per share:
Basic
77,776
76,080
Diluted
80,019
78,487
- Net income and earnings per share excluding adjustments are
non-GAAP financial measures presented as supplemental financial
measures to enable a user of the financial information to
understand the impact of these adjustments on reported results.
These financial measures should not be considered an alternative to
net income, operating income, cash flows provided by operating
activities, or any other measure of financial performance or
liquidity presented in accordance with U.S. GAAP. Our adjusted net
income and earnings per share may not be comparable to similarly
titled measures of another company because all companies may not
calculate adjusted net income and earnings per share in the same
manner.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230207006075/en/
Investor Contact: Rob Fink / Tom Baumann FNK IR
646.809.4048 / 646.349.6641 aten@fnkir.com
Brian Becker Chief Financial Officer
investors@a10networks.com
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