Q2 2024 A10 Networks Inc Earnings Call Transcript
Key Points
- A10 Networks Inc (ATEN) reported a 25% increase in Enterprise-related revenue, offsetting a 25% decline in the Service Provider segment.
- The company secured a significant win by displacing a competitor for a major digital communications technology company's hybrid infrastructure solution.
- A10 Networks Inc (ATEN) achieved non-GAAP EPS targets despite market challenges, demonstrating robust profitability.
- The company's gross margins were in line with the stated goal of 80% to 82%, and adjusted EBITDA margin was nearly 26%.
- A10 Networks Inc (ATEN) continues to invest in AI-based solutions to enhance security offerings, aligning with long-term growth goals.
- Second quarter revenue decreased by 8.7% year-over-year, primarily due to volatility in the North American Service Provider sector.
- Product revenue was down 15% year-to-date, representing a challenge in maintaining growth in this segment.
- Non-GAAP net income for the quarter decreased to $13.2 million from $14.5 million in the year-ago quarter.
- The North American Service Provider market remains challenging, with projects being delayed and spending levels managed cautiously.
- Despite strong cash flow, the company faces ongoing revenue headwinds, particularly in the North American Service Provider market.
Thank you for joining. I would like to welcome you all to the A10 Network's second-quarter 2024 financial results conference call. My name is Brika and I'll be your moderator for today. (Operator Instructions)
I would now like to pass the conference over to your host, Tom Bauman with FNK IR. Thank you. You may proceed Tom.
Thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least 90 days via the A10 Networks' website, atennetworks.com. Hosting the call today are Dhrupad Trivedi, A10's President and CEO; and CFO, Brian Becker.
Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its second-quarter 2024 tour financial results. Additionally, A10 published a presentation and supplemental trended financial statement. You may access the press release, presentation, and trended financial statements on the Investor Relations section of the company's website.
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