ATEN A10 Networks Inc

Solid Performance Driven by Demand Improvement from Service Providers and Continued Execution in Enterprise Business

A10 Networks, Inc. (NYSE: ATEN or the “Company”), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Summary

• Revenue of $74.2 million, compared to $70.4 million in the fourth quarter of 2023, representing a 5% increase.
• Enterprise revenue grew 8% for the quarter year-over-year, and service provider revenue grew 4%.
• GAAP gross margin of 79.9%; non-GAAP gross margin of 80.7%.
• GAAP net income was $18.3 million (24.7% of revenue), or $0.24 per diluted share, compared to net income of $17.9 million (25.4% of revenue) or $0.24 per diluted share in the fourth quarter of 2023.
• Non-GAAP net income of $23.0 million (30.9% of revenue), or $0.31 per diluted share (non-GAAP EPS) compared to non-GAAP net income of $18.5 million (26.2% of revenue) or $0.25 per diluted share in the fourth quarter of 2023.
• Adjusted EBITDA was $27.3 million (36.8% of revenue) compared to $24.0 million (34.0% of revenue) in the fourth quarter of 2023.
• The Company completed the quarter with cash and investments of $195.6 million, up from $159.3 million as of December 31, 2023. A10 generated $25.7 million in cash from operations during the quarter.
• The Company returned $10.2 million to investors, having repurchased 360,000 shares at an average price of $15.99 per share for a total of $5.8 million and having paid $4.4 million in cash dividends in the quarter.
• The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable March 3, 2025, to stockholders of record at the close of business on February 14, 2025.

Full-Year 2024 Financial Summary

• Revenue of $261.7 million, up $10.0 million (4.0%) compared to $251.7 million in 2023.
• GAAP net income of $50.1 million (representing 19.2% of revenue), or $0.67 per diluted share.
• Non-GAAP net income of $64.8 million (representing 24.8% of revenue) or $0.86 per diluted share compared to $54.9 million (representing 21.8% of revenue), or $0.73 per diluted share (non-GAAP EPS).
• Adjusted EBITDA margin of 28.5% vs. 28.3% in 2023.

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

“The demand from service provider customers improved throughout the second half of 2024, and we enter 2025 with growing optimism of an ongoing normalization of spending from these customers,” commented Dhrupad Trivedi, A10 Network’s President and Chief Executive Officer. “AI continues to serve as a significant catalyst for spending in general, and for A10 customer’s priorities in particular, because of the efficiency of our high throughput, low latency solutions for all operating environments. Our solutions lower the total cost of ownership, utilizing less power and integrated security capabilities, creating a durable competitive advantage within energy-hungry AI data centers.”

“Simultaneously, we delivered significant growth with enterprise customers, and we are investing heavily to further enhance our offerings for these customers,” added Trivedi. “During the coming year, we anticipate launching solutions to further expand our security offerings. We view 2025 as a year that will benefit from several years of R&D investment, furthering our competitive position with both service provider and enterprise customers.”

“As we drive the company transformation to a more agile engineering and delivery model, focused on security and efficiency, we have transformed our processes and systems,” concluded Trivedi. “The continued focus on operational excellence and long-term business model provides a strong foundation for a durable business model delivering consistent returns for all our stakeholders.”

Conference Call

Management will host a call today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) to discuss the results.

Interested parties may access the conference call by dialing (833) 470-1428 (toll-free) or (404) 975-4839 and referencing access code: 475407.

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 596790.

About A10 Networks

A10 Networks (NYSE: ATEN) provides security and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments. Our 7000+ customers span global large enterprises and communications, cloud and web service providers who must ensure business-critical applications and networks are secure, available, and efficient. Founded in 2004, A10 Networks is based in San Jose, Calif. and serves customers globally. For more information, visit A10networks.com and follow us at 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.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding our quarterly dividend payments, strategy, including as to AI, growth, demand, positioning, products, profitability, revenue expectations for 2025, market trends and investments. 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, which may in turn negatively impact our ability to administer the quarterly dividends; 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 29, 2024. 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) tax planning expense, (iv) workforce reduction expense, (v) cyber incident remediation expense, (vi) one-time legal expense and (vii) income tax effect of non-GAAP items (i) to (vi) 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) workforce reduction expense and (iii) cyber incident remediation expense. We define non-GAAP gross margin as our non-GAAP gross profit 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) tax planning expense, (iv) workforce reduction expense, (v) cyber incident remediation expense and (vi) one-time legal expense. 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) tax planning expense, (iv) workforce reduction expense, (v) cyber incident remediation expense and (vi) one-time legal expense. We define non-GAAP operating margin as our non-GAAP operating income divided by our GAAP revenue. We define Adjusted EBITDA as our GAAP net income excluding (i) interest and other income, net, (ii) depreciation and amortization expense, (iii) provision for income taxes, (iv) stock-based compensation and related payroll tax, (v) impairment expense, (vi) tax planning expense, (vii) workforce reduction expense, (viii) cyber incident remediation expense and (ix) one-time legal 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.

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,

 

Years Ended December 31,

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

Revenue:

 

 

 

 

 

 

 

Products

$

43,335

 

$

40,550

 

 

$

139,799

 

$

141,082

Services

 

30,869

 

 

29,867

 

 

 

121,897

 

 

110,618

Total revenue

 

74,204

 

 

70,417

 

 

 

261,696

 

 

251,700

Cost of revenue:

 

 

 

 

 

 

 

Products

 

10,075

 

 

9,134

 

 

 

31,218

 

 

31,468

Services

 

4,823

 

 

4,140

 

 

 

20,201

 

 

16,494

Total cost of revenue

 

14,898

 

 

13,274

 

 

 

51,419

 

 

47,962

Gross profit

 

59,306

 

 

57,143

 

 

 

210,277

 

 

203,738

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

21,622

 

 

21,450

 

 

 

83,300

 

 

85,976

Research and development

 

13,192

 

 

11,979

 

 

 

57,726

 

 

55,229

General and administrative

 

6,096

 

 

5,708

 

 

 

25,283

 

 

23,885

Total operating expenses

 

40,910

 

 

39,137

 

 

 

166,309

 

 

165,090

Income from operations

 

18,396

 

 

18,006

 

 

 

43,968

 

 

38,648

Non-operating income (expense):

 

 

 

 

 

 

 

Interest income

 

1,671

 

 

1,677

 

 

 

6,747

 

 

5,078

Interest and other income (expense), net

 

1,440

 

 

(584

)

 

 

7,384

 

 

69

Total non-operating income (expense), net

 

3,111

 

 

1,093

 

 

 

14,131

 

 

5,147

Income before income taxes

 

21,507

 

 

19,099

 

 

 

58,099

 

 

43,795

Provision for income taxes

 

3,206

 

 

1,182

 

 

 

7,959

 

 

3,825

Net income

$

18,301

 

$

17,917

 

 

$

50,140

 

$

39,970

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.25

 

$

0.24

 

 

$

0.68

 

$

0.54

Diluted

$

0.24

 

$

0.24

 

 

$

0.67

 

$

0.53

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

 

 

 

 

 

 

 

Basic

 

73,691

 

 

74,288

 

 

 

74,088

 

 

74,210

Diluted

 

74,975

 

74,972

 

 

75,302

 

75,550

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,

 

Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

GAAP net income

$

18,301

 

 

$

17,917

 

 

$

50,140

 

 

$

39,970

 

Non-GAAP items:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

4,811

 

 

 

2,922

 

 

 

17,625

 

 

 

14,674

 

Impairment expense

 

—

 

 

 

—

 

 

 

—

 

 

 

2,975

 

Tax planning expense

 

—

 

 

 

500

 

 

 

500

 

 

 

500

 

Workforce reduction expense

 

1,075

 

 

 

—

 

 

 

1,075

 

 

 

4,298

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

732

 

One-time legal expense

 

—

 

 

 

—

 

 

 

71

 

 

 

—

 

Income tax-effect of non-GAAP items

 

(1,232

)

 

 

(2,872

)

 

 

(4,575

)

 

 

(8,230

)

Total non-GAAP items

 

4,654

 

 

 

550

 

 

 

14,696

 

 

 

14,949

 

Non-GAAP net income (1)

$

22,955

 

 

$

18,467

 

 

$

64,836

 

 

$

54,919

 

 

 

 

 

 

 

 

 

GAAP net income per share:

 

 

 

 

 

 

 

Basic

$

0.25

 

 

$

0.24

 

 

$

0.68

 

 

$

0.54

 

Diluted

$

0.24

 

 

$

0.24

 

 

$

0.67

 

 

$

0.53

 

Non-GAAP items:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

0.07

 

 

 

0.04

 

 

 

0.23

 

 

 

0.19

 

Impairment expense

 

—

 

 

 

—

 

 

 

—

 

 

 

0.04

 

Tax planning expense

 

—

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

Workforce reduction expense

 

0.01

 

 

 

—

 

 

 

0.01

 

 

 

0.06

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

0.01

 

One-time legal expense

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax-effect of non-GAAP items

 

(0.01

)

 

 

(0.04

)

 

 

(0.06

)

 

 

(0.11

)

Total non-GAAP items

 

0.07

 

 

 

0.01

 

 

 

0.19

 

 

 

0.20

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share: (1)

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.25

 

 

$

0.88

 

 

$

0.74

 

Diluted

$

0.31

 

 

$

0.25

 

 

$

0.86

 

 

$

0.73

 

Weighted average shares used in computing net income per share:

 

 

 

 

 

 

 

Basic

 

73,691

 

 

 

74,288

 

 

 

74,088

 

 

 

74,210

 

Diluted

 

74,975

 

 

 

74,972

 

 

 

75,302

 

 

 

75,550

 

(1)

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)

 

 

As of December 31, 2024

 

As of December 31, 2023

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

95,129

 

 

$

97,244

 

Marketable securities

 

100,429

 

 

 

62,056

 

Accounts receivable, net of allowances of $465 and $405, respectively

 

76,687

 

 

 

74,307

 

Inventory

 

22,005

 

 

 

23,522

 

Prepaid expenses and other current assets

 

13,038

 

 

 

14,695

 

Total current assets

 

307,288

 

 

 

271,824

 

Property and equipment, net

 

39,142

 

 

 

29,876

 

Goodwill

 

1,307

 

 

 

1,307

 

Deferred tax assets, net

 

62,364

 

 

 

62,725

 

Other non-current assets

 

22,714

 

 

 

24,077

 

Total assets

$

432,815

 

 

$

389,809

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

12,542

 

 

$

7,024

 

Accrued and other liabilities

 

32,696

 

 

 

21,388

 

Deferred revenue, current

 

78,335

 

 

 

82,657

 

Total current liabilities

 

123,573

 

 

 

111,069

 

Deferred revenue, non-current

 

69,924

 

 

 

58,677

 

Other non-current liabilities

 

7,489

 

 

 

12,187

 

Total liabilities

 

200,986

 

 

 

181,933

 

 

 

 

 

Stockholders' equity:

Common stock, $0.00001 par value: 500,000 shares authorized; 90,520 and 89,003 shares issued and 73,693 and 74,359 shares outstanding, respectively

 

1

 

 

 

1

 

Treasury stock, at cost: 16,827 and 14,644 shares, respectively

 

(180,992

)

 

 

(150,909

)

Additional paid-in-capital

 

508,387

 

 

 

486,958

 

Dividends paid

 

(55,417

)

 

 

(37,619

)

Accumulated other comprehensive income (loss)

 

194

 

 

 

(71

)

Accumulated deficit

 

(40,344

)

 

 

(90,484

)

Total stockholders' equity

 

231,829

 

 

 

207,876

 

Total liabilities and stockholders' equity

$

432,815

 

$

389,809

 

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, on a GAAP Basis)

 

 

Years Ended December 31,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net income

$

50,140

 

 

$

39,970

 

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

 

 

 

Depreciation and amortization

 

11,293

 

 

 

9,346

 

Stock-based compensation

 

17,048

 

 

 

14,081

 

Provision for (recovery from) doubtful accounts and sales returns

 

59

 

 

 

(699

)

Other non-cash items

 

(424

)

 

 

117

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(2,555

)

 

 

(679

)

Inventory

 

(760

)

 

 

(6,302

)

Prepaid expenses and other assets

 

(67

)

 

 

(1,862

)

Accounts payable

 

2,224

 

 

 

(2,999

)

Accrued and other liabilities

 

6,609

 

 

 

(20,801

)

Deferred revenue

 

6,925

 

 

 

14,342

 

Net cash provided by operating activities

 

90,492

 

 

 

44,514

 

Cash flows from investing activities:

 

 

 

Proceeds from sales of marketable securities

 

25,531

 

 

 

45,420

 

Proceeds from maturities of marketable securities

 

81,146

 

 

 

64,504

 

Purchases of marketable securities

 

(142,759

)

 

 

(85,420

)

Capital expenditures

 

(12,268

)

 

 

(10,896

)

Net cash provided by (used in) investing activities

 

(48,350

)

 

 

13,608

 

Cash flows from financing activities:

 

 

 

Proceeds from issuance of common stock under employee equity incentive plans

 

3,624

 

 

 

4,943

 

Repurchases of common stock

 

(30,084

)

 

 

(15,975

)

Payments for dividends

 

(17,797

)

 

 

(17,817

)

Net cash used in financing activities

 

(44,257

)

 

 

(28,849

)

Net increase (decrease) in cash and cash equivalents

 

(2,115

)

 

 

29,273

 

Cash and cash equivalents—beginning of period

 

97,244

 

 

 

67,971

 

Cash and cash equivalents—end of period

$

95,129

 

 

$

97,244

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

Transfers between inventory and property and equipment

$

2,277

 

 

$

2,473

 

Capital expenditures included in accounts payable

$

3,294

 

 

$

3,298

 

A10 NETWORKS, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

(unaudited, in thousands, except percentages)

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

59,306

 

 

$

57,143

 

 

$

210,277

 

 

$

203,738

 

GAAP gross margin

 

79.9

%

 

 

81.1

%

 

 

80.4

%

 

 

80.9

%

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

523

 

 

 

441

 

 

 

2,091

 

 

 

1,814

 

Workforce reduction expense

 

20

 

 

 

—

 

 

 

20

 

 

 

42

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

Non-GAAP gross profit

$

59,849

 

 

$

57,584

 

 

$

212,388

 

 

$

205,597

 

Non-GAAP gross margin

 

80.7

%

 

 

81.8

%

 

 

81.2

%

 

 

81.7

%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES

TO NON-GAAP TOTAL OPERATING EXPENSES

(unaudited, in thousands)

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

GAAP total operating expenses

$

40,910

 

 

$

39,137

 

 

$

166,309

 

 

$

165,090

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

(4,288

)

 

 

(2,481

)

 

 

(15,534

)

 

 

(12,860

)

Impairment expense

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,975

)

Tax planning expense

 

—

 

 

 

(500

)

 

 

(500

)

 

 

(500

)

Workforce reduction expense

 

(1,055

)

 

 

—

 

 

 

(1,055

)

 

 

(4,256

)

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

(729

)

One-time legal expense

 

—

 

 

 

—

 

 

 

(71

)

 

 

—

 

Non-GAAP total operating expenses

$

35,567

 

 

$

36,156

 

 

$

149,149

 

 

$

143,770

 

A10 NETWORKS, INC.

RECONCILIATION OF GAAP INCOME FROM OPERATIONS

TO NON-GAAP OPERATING INCOME

(unaudited, in thousands, except percentages)

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

GAAP income from operations

$

18,396

 

 

$

18,006

 

 

$

43,968

 

 

$

38,648

 

GAAP operating margin

 

24.8

%

 

 

25.6

%

 

 

16.8

%

 

 

15.4

%

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

4,811

 

 

 

2,922

 

 

 

17,625

 

 

 

14,674

 

Impairment expense

 

—

 

 

 

—

 

 

 

—

 

 

 

2,975

 

Tax planning expense

 

—

 

 

 

500

 

 

 

500

 

 

 

500

 

Workforce reduction expense

 

1,075

 

 

 

—

 

 

 

1,075

 

 

 

4,298

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

732

 

One-time legal expense

 

—

 

 

 

—

 

 

 

71

 

 

 

—

 

Non-GAAP operating income

$

24,282

 

 

$

21,428

 

 

$

63,239

 

 

$

61,827

 

Non-GAAP operating margin

 

32.7

%

 

30.4

%

 

24.2

%

 

24.6

%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(unaudited, in thousands)

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

GAAP net income

$

18,301

 

 

$

17,917

 

 

$

50,140

 

 

$

39,970

 

GAAP net income margin

 

24.7

%

 

 

25.4

%

 

 

19.2

%

 

 

15.9

%

 

 

 

 

 

 

 

 

Exclude: Interest and other income, net

 

(3,111

)

 

 

(1,093

)

 

 

(14,131

)

 

 

(5,147

)

Exclude: Depreciation and amortization

 

3,045

 

 

 

2,501

 

 

 

11,293

 

 

 

9,346

 

Exclude: Provision for income taxes

 

3,206

 

 

 

1,182

 

 

 

7,959

 

 

 

3,825

 

EBITDA

 

21,441

 

 

 

20,507

 

 

 

55,261

 

 

 

47,994

 

Exclude: Stock-based compensation and related payroll tax

 

4,811

 

 

 

2,922

 

 

 

17,625

 

 

 

14,674

 

Exclude: Impairment expense

 

—

 

 

 

—

 

 

 

—

 

 

 

2,975

 

Exclude: Tax planning expense

 

—

 

 

 

500

 

 

 

500

 

 

 

500

 

Exclude: Workforce reduction expense

 

1,075

 

 

 

—

 

 

 

1,075

 

 

 

4,298

 

Exclude: Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

732

 

Exclude: One-time legal expense

 

—

 

 

 

—

 

 

 

71

 

 

 

—

 

Adjusted EBITDA

$

27,327

 

 

$

23,929

 

 

$

74,532

 

 

$

71,173

 

Adjusted EBITDA margin

 

36.8

%

 

 

34.0

%

 

 

28.5

%

 

 

28.3

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250204009324/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