ATEN A10 Networks Inc

Board Authorizes New Repurchase Plan Based on Sustained Business Performance

A10 Networks, Inc. (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its third quarter ended September 30, 2023.

Third Quarter 2023 Financial Summary

• Revenue of $57.8 million, in-line with preliminary expectations and down $14.3 million year-over-year due to delays related to North American service provider customers’ capital expenditures.
• Enterprise revenue up 7% year-over-year.
• GAAP gross margin of 80.9%; non-GAAP gross margin of 81.8% as a result of continued focus on operational execution of business model goals in spite of near-term volatility in the market.
• GAAP net income of $6.5 million (representing 11.2% of revenue), or $0.09 per diluted share. Year-to-date, GAAP net income was $22.1 million (12.2% of revenue), or $0.29 per diluted share.
• Non-GAAP net income of $12.0 million (representing 20.8% of revenue), or $0.16 per diluted share (non-GAAP EPS).
• Company repurchased 168,000 shares at an average price of $14.52 for a total of $2.4 million. The Board has also authorized a new repurchase plan for up to $50 million.
• The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable on December 1, 2023 to stockholders of record at the close of business on November 17, 2023.

A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

“Our intentional revenue diversification and proven business model is enabling A10 to navigate a challenging period while maintaining profitability, cash generation and the continued return of capital to shareholders,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “Growth in enterprise revenue partially offset delays in service provider spending that resulted in a decline in short-term service provider revenue. We continue to believe opportunities have been delayed, not lost, and that the long-term demand for security and network expansion solutions remains robust, supporting our intermediate-term outlook.”

“A10 remains solidly and systemically profitable, and we adjusted our business priorities to maintain solid profitability as we navigate these macro headwinds,” continued Trivedi. “Our year-to-date Adjusted EBITDA margin was 26.1%, in-line with our stated business goals. Our expense management initiatives are focused on preserving our long-term growth investments, enabling us to maintain strong cash generation and advancing security-focused solutions as our customers navigate economic uncertainty and a higher cost of capital.”

Conference Call

Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, November 7, 2023, to discuss these results. Interested parties may access the conference call by dialing (833) 470-1428 (toll-free) or (646) 904-5544 and referencing access code: 743487.

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 948753.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding our quarterly dividend payments and repurchase program, strategy, including with respect to expense management, demand and order pattern challenges, positioning and growth. 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 any unforeseen need for capital which may require us to divert funds we may have otherwise used for the dividend program or stock repurchase program, which may in turn negatively impact our ability to administer the quarterly dividends or the repurchase of our common stock; 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 February 27, 2023. 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, Adjusted EBITDA and Adjusted EBITDA margin. 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 expense, (iii) cyber incident remediation expense, (iv) workforce reduction expense and (v) income tax effect of excluding non-GAAP items (i) to (iv) listed above. 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 non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, (ii) cyber incident remediation expense and (iii) workforce reduction 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) impairment expense, (iii) cyber incident remediation expense and (iv) workforce reduction 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) impairment expense, (iii) cyber incident remediation expense and (iv) workforce reduction 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 income taxes, (iv) stock-based compensation and related payroll tax, (v) impairment expense, (vi) workforce reduction expense and (vii) cyber incident remediation expense. We define Adjusted EBITDA margin as our Adjusted EBITDA divided by our GAAP revenue.

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 September 30,

 

Nine Months Ended September 30,

 

2023

 

2022

 

2023

 

2022

Revenue:

 

 

 

 

 

 

 

Products

$

30,260

 

 

$

45,104

 

 

$

100,532

 

$

123,624

 

Services

 

27,515

 

 

 

26,955

 

 

 

80,751

 

 

 

79,080

 

Total revenue

 

57,775

 

 

 

72,059

 

 

 

181,283

 

 

 

202,704

 

Cost of revenue:

 

 

 

 

 

 

 

Products

 

6,815

 

 

 

10,191

 

 

 

22,334

 

 

 

28,342

 

Services

 

4,194

 

 

 

4,574

 

 

 

12,354

 

 

 

12,747

 

Total cost of revenue

 

11,009

 

 

 

14,765

 

 

 

34,688

 

 

 

41,089

 

Gross profit

 

46,766

 

 

 

57,294

 

 

 

146,595

 

 

 

161,615

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

21,324

 

 

 

21,605

 

 

 

64,526

 

 

 

66,159

 

Research and development

 

17,620

 

 

 

14,360

 

 

 

43,250

 

 

 

41,483

 

General and administrative

 

5,613

 

 

 

5,661

 

 

 

18,177

 

 

 

17,160

 

Total operating expenses

 

44,557

 

 

 

41,626

 

 

 

125,953

 

 

 

124,802

 

Income from operations

 

2,209

 

 

 

15,668

 

 

 

20,642

 

 

 

36,813

 

Non-operating income (expense), net:

 

 

 

 

 

 

 

Interest income

 

1,766

 

 

 

432

 

 

 

3,401

 

 

 

736

 

Other income (expense), net

 

987

 

 

 

(871

)

 

 

653

 

 

 

(1,204

)

Non-operating income (expense), net

 

2,753

 

 

 

(439

)

 

 

4,054

 

 

 

(468

)

Income before provision for income taxes

 

4,962

 

 

 

15,229

 

 

 

24,696

 

 

 

36,345

 

Income tax provision (benefit)

 

(1,507

)

 

 

3,116

 

 

 

2,643

 

 

 

7,467

 

Net income

$

6,469

 

 

$

12,113

 

 

$

22,053

 

 

$

28,878

 

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.09

 

 

$

0.16

 

 

$

0.30

 

 

$

0.38

 

Diluted

$

0.09

 

 

$

0.16

 

 

$

0.29

 

 

$

0.37

 

Weighted-average shares used in computing net income per share:

 

 

 

 

 

 

 

Basic

 

74,526

 

 

 

75,881

 

 

 

74,184

 

 

 

76,191

 

Diluted

 

75,807

 

 

 

77,679

 

 

 

75,639

 

 

 

78,454

 

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

(unaudited, in thousands, except per share amounts)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

GAAP net income

$

6,469

 

 

$

12,113

 

$

22,053

 

 

$

28,878

Non-GAAP items:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

4,255

 

 

 

3,798

 

 

 

11,752

 

 

 

10,423

 

Impairment expense

 

2,975

 

 

 

—

 

 

 

2,975

 

 

 

—

 

Workforce reduction expense

 

2,437

 

 

 

—

 

 

 

4,298

 

 

 

—

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

732

 

 

 

—

 

Adoption of tax-effecting non-GAAP items (1)

 

(4,140

)

 

 

—

 

 

 

(5,358

)

 

 

—

 

Total non-GAAP items

 

5,527

 

 

 

3,798

 

 

 

14,399

 

 

 

10,423

 

Non-GAAP net income (1)(2)

 

11,996

 

 

 

15,911

 

 

 

36,452

 

 

 

39,301

 

GAAP net income per share:

 

 

 

 

 

 

 

Basic

$

0.09

 

 

$

0.16

 

 

$

0.30

 

 

$

0.38

 

Diluted

$

0.09

 

 

$

0.16

 

 

$

0.29

 

 

$

0.37

 

Non-GAAP items:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

0.06

 

 

 

0.04

 

 

 

0.15

 

 

 

0.13

 

Impairment expense

 

0.04

 

 

 

—

 

 

 

0.04

 

 

 

—

 

Workforce reduction expense

 

0.03

 

 

 

—

 

 

 

0.06

 

 

 

—

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

0.01

 

 

 

—

 

Adoption of tax-effecting non-GAAP items (1)

 

(0.06

)

 

 

—

 

 

 

(0.07

)

 

 

—

 

Total non-GAAP items

 

0.07

 

 

 

0.04

 

 

 

0.19

 

 

 

0.13

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share: (1)(2)

 

 

 

 

 

 

 

Basic

$

0.16

 

 

$

0.20

 

 

$

0.49

 

 

$

0.51

 

Diluted

$

0.16

 

 

$

0.20

 

 

$

0.48

 

 

$

0.50

 

Weighted average shares used in computing net income per share:

 

 

 

 

 

 

 

Basic

 

74,526

 

 

 

75,881

 

 

 

74,184

 

 

 

76,191

 

Diluted

 

75,807

 

 

 

77,679

 

 

 

75,639

 

 

 

78,454

 

(1)

For 2023, we adopted presenting non-GAAP net income impacted for the income tax effect of excluding non-GAAP items. In the three and nine months ended September 30, 2023, the income tax effect represents a non-GAAP profit before tax rate of 18.0%. For the three months ended September 30, 2022, the income tax effect of excluding non-GAAP items would be $2,831 thousand and non-GAAP net income adjusted for the income tax effect of excluding non-GAAP items would be $13,080 thousand, representing a $0.03 decrease in reported non-GAAP net income per share in the table above. The tax effect of $2,831 thousand represents a non-GAAP profit before tax rate of 14.9%. For the nine months ended September 30, 2022, the income tax effect of excluding non-GAAP items would be $5,876 thousand and non-GAAP net income adjusted for the income tax effect of excluding non-GAAP items would be $33,425 thousand, representing a $0.07 decrease in reported non-GAAP net income per share in the table above. The tax effect of $5,876 thousand represents a non-GAAP profit before tax rate of 12.6%.

 

 

(2)

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 companies may not all 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)

 

 

September 30, 2023

 

December 31, 2022

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

104,152

 

 

$

67,971

 

Marketable securities

 

64,889

 

 

 

83,018

 

Accounts receivable, net of allowances of $197 and $32, respectively

 

59,070

 

 

 

72,928

 

Inventory

 

23,561

 

 

 

19,693

 

Prepaid expenses and other current assets

 

12,959

 

 

 

13,381

 

Total current assets

 

264,631

 

 

 

256,991

 

Property and equipment, net

 

26,054

 

 

 

19,743

 

Goodwill

 

1,307

 

 

 

1,307

 

Deferred tax assets, net

 

61,088

 

 

 

63,183

 

Other non-current assets

 

24,762

 

 

 

27,881

 

Total assets

$

377,842

 

 

$

369,105

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

8,214

 

 

$

6,725

 

Accrued liabilities

 

23,577

 

 

 

37,183

 

Deferred revenue

 

79,540

 

 

 

74,340

 

Total current liabilities

 

111,331

 

 

 

118,248

 

Deferred revenue, non-current

 

56,174

 

 

 

52,652

 

Other non-current liabilities

 

13,415

 

 

 

17,193

 

Total liabilities

 

180,920

 

 

 

188,093

 

Stockholders' equity:

Common stock, $0.00001 par value: 500,000 shares authorized; 88,739 and 87,123 shares issued and 74,750 and 73,738 shares outstanding, respectively

 

1

 

 

 

1

 

Treasury stock, at cost: 13,989 and 13,384 shares, respectively

 

(143,606

)

 

 

(134,934

)

Additional paid-in-capital

 

481,765

 

 

 

466,927

 

Dividends paid

 

(33,171

)

 

 

(19,802

)

Accumulated other comprehensive income (loss)

 

334

 

 

 

(726

)

Accumulated deficit

 

(108,401

)

 

 

(130,454

)

Total stockholders' equity

 

196,922

 

 

 

181,012

 

Total liabilities and stockholders' equity

$

377,842

 

 

$

369,105

 

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, on a GAAP Basis)

 

 

Nine Months Ended September 30,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net income

$

22,053

 

 

$

28,878

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

6,845

 

 

 

5,539

 

Stock-based compensation

 

11,180

 

 

 

9,818

 

Other non-cash items

 

774

 

 

 

49

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

14,056

 

 

 

(11,090

)

Inventory

 

(5,313

)

 

 

530

 

Prepaid expenses and other assets

 

2,033

 

 

 

(2,574

)

Accounts payable

 

(1,183

)

 

 

(914

)

Accrued liabilities

 

(17,384

)

 

 

4,001

 

Deferred revenue

 

8,722

 

 

 

4,536

 

Net cash provided by operating activities

 

41,783

 

 

 

38,773

 

Cash flows from investing activities:

 

 

 

Proceeds from sales of marketable securities

 

42,252

 

 

 

6,252

 

Proceeds from maturities of marketable securities

 

54,007

 

 

 

48,248

 

Purchases of marketable securities

 

(75,064

)

 

 

(45,699

)

Purchases of property and equipment

 

(7,752

)

 

 

(8,261

)

Net cash provided by investing activities

 

13,443

 

 

 

540

 

Cash flows from financing activities:

 

 

 

Proceeds from issuance of common stock under employee equity incentive plans

 

2,996

 

 

 

4,662

 

Repurchase of common stock

 

(8,672

)

 

 

(79,257

)

Payments for dividends

 

(13,369

)

 

 

(11,512

)

Net cash used in financing activities

 

(19,045

)

 

 

(86,107

)

Net increase (decrease) in cash and cash equivalents

 

36,181

 

 

 

(46,794

)

Cash and cash equivalents—beginning of period

 

67,971

 

 

 

78,925

 

Cash and cash equivalents—end of period

$

104,152

 

 

$

32,131

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

Transfers between inventory and property and equipment

$

1,445

 

 

$

642

 

Purchases of property and equipment included in accounts payable

$

2,672

 

 

$

108

 

A10 NETWORKS, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

(unaudited, in thousands, except percentages)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

GAAP gross profit

$

46,766

 

 

$

57,294

 

 

$

146,595

 

 

$

161,615

 

GAAP gross margin

 

80.9

%

 

 

79.5

%

 

 

80.9

%

 

 

79.7

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

512

 

 

 

489

 

 

 

1,373

 

 

 

1,248

 

Workforce reduction expense

 

—

 

 

 

—

 

 

 

42

 

 

 

—

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

Non-GAAP gross profit

$

47,278

 

 

$

57,783

 

 

$

148,013

 

 

$

162,863

 

Non-GAAP gross margin

 

81.8

%

 

 

80.2

%

 

 

81.6

%

 

 

80.3

%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES

TO NON-GAAP TOTAL OPERATING EXPENSES

(unaudited, in thousands)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

GAAP total operating expenses

$

44,557

 

 

$

41,626

 

 

$

125,953

 

 

$

124,802

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

(3,743

)

 

 

(3,309

)

 

 

(10,379

)

 

 

(9,175

)

Impairment expense

 

(2,975

)

 

 

—

 

 

 

(2,975

)

 

 

—

 

Workforce reduction expense

 

(2,437

)

 

 

—

 

 

 

(4,256

)

 

 

—

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

(729

)

 

 

—

 

Non-GAAP total operating expenses

$

35,402

 

 

$

38,317

 

 

$

107,614

 

 

$

115,627

 

A10 NETWORKS, INC.

RECONCILIATION OF GAAP INCOME FROM OPERATIONS

TO NON-GAAP OPERATING INCOME

(unaudited, in thousands, except percentages)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

GAAP income from operations

$

2,209

 

 

$

15,668

 

 

$

20,642

 

 

$

36,813

 

GAAP operating margin

 

3.8

%

 

 

21.7

%

 

 

11.4

%

 

 

18.2

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

4,255

 

 

 

3,798

 

 

 

11,752

 

 

 

10,423

 

Impairment expense

 

2,975

 

 

 

—

 

 

 

2,975

 

 

 

—

 

Workforce reduction expense

 

2,437

 

 

 

—

 

 

 

4,298

 

 

 

—

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

732

 

 

 

—

 

Non-GAAP operating income

$

11,876

 

 

$

19,466

 

 

$

40,399

 

 

$

47,236

 

Non-GAAP operating margin

 

20.6

%

 

 

27.0

%

 

 

22.3

%

 

 

23.3

%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(unaudited, in thousands)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

GAAP net income

$

6,469

 

 

$

12,113

 

 

$

22,053

 

 

$

28,878

 

GAAP net income margin

 

11.2

%

 

 

16.8

%

 

 

12.2

%

 

 

14.2

%

 

 

 

 

 

 

 

 

Exclude: Interest and other (income) expense, net

 

(2,753

)

 

 

439

 

 

 

(4,054

)

 

 

468

 

Exclude: Depreciation and amortization

 

2,537

 

 

 

1,827

 

 

 

6,845

 

 

 

5,539

 

Exclude: Income tax provision (benefit)

 

(1,507

)

 

 

3,116

 

 

 

2,643

 

 

 

7,467

 

EBITDA

 

4,746

 

 

 

17,495

 

 

 

27,487

 

 

 

42,352

 

Exclude: Stock-based compensation and related payroll tax

 

4,255

 

 

 

3,798

 

 

 

11,752

 

 

 

10,423

 

Exclude: Impairment expense

 

2,975

 

 

 

—

 

 

 

2,975

 

 

 

—

 

Exclude: Workforce reduction expense

 

2,437

 

 

 

—

 

 

 

4,298

 

 

 

—

 

Exclude: Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

732

 

 

 

—

 

Adjusted EBITDA

$

14,413

 

 

$

21,293

 

 

$

47,244

 

 

$

52,775

 

Adjusted EBITDA margin

 

24.9

%

 

 

29.5

%

 

 

26.1

%

 

 

26.0

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231107441651/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