A10 Networks, Inc. (ATEN) Bundle
A Brief History of A10 Networks, Inc.
A10 Networks, Inc. has established itself as a leading provider of application networking and security solutions. As of 2024, the company continues to innovate and expand its offerings, focusing on enhancing customer experiences through advanced technology.
Financial Performance Overview
For the three months ended September 30, 2024, A10 Networks reported a total net revenue of $66.7 million, representing a 15% increase from $57.8 million in the same period of 2023. The revenue breakdown included:
| Revenue Type | Q3 2024 ($ million) | Q3 2023 ($ million) | Increase/Decrease (%) |
|---|---|---|---|
| Products | 36.9 | 30.3 | 22.0 |
| Services | 29.9 | 27.5 | 8.5 |
| Total Revenue | 66.7 | 57.8 | 15.5 |
For the nine months ended September 30, 2024, total net revenue reached $187.5 million, up from $181.3 million in 2023, reflecting a 3% increase.
Geographic Revenue Distribution
The geographic breakdown of net revenue for the nine months ended September 30, 2024 is as follows:
| Region | Revenue ($ million) | Percentage of Total Revenue |
|---|---|---|
| Americas | 92.6 | 49.3% |
| APJ | 67.3 | 36.0% |
| EMEA | 27.6 | 14.7% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024 totaled $43.2 million, compared to $44.6 million in 2023, reflecting a 3% decrease. Key components include:
| Expense Type | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Sales and Marketing | 21.0 | 21.3 |
| Research and Development | 15.7 | 17.6 |
| General and Administrative | 6.5 | 5.6 |
Net Income and Profitability
A10 Networks achieved a net income of $12.6 million for the three months ended September 30, 2024, compared to $6.5 million in 2023, marking a 95% increase year-over-year.
The company’s basic and diluted net income per share for the same period were $0.17 and $0.17, respectively, compared to $0.09 for both in 2023.
Cash Flow and Liquidity
As of September 30, 2024, A10 Networks reported cash and cash equivalents of $78.1 million and marketable securities amounting to $104.0 million. The cash flow from operating activities for the nine months ended September 30, 2024 was $64.8 million, up from $41.8 million in 2023.
Stockholder Equity
As of September 30, 2024, total stockholders' equity was reported at $217.3 million, with an accumulated deficit of $58.6 million.
The company continues to engage in stock repurchase programs, having repurchased approximately 1.8 million shares for a total cost of $24.6 million during the nine months ended September 30, 2024.
Future Outlook
A10 Networks remains focused on long-term growth, with plans to invest in product development and expand its global sales and marketing efforts. The company aims to leverage its strong cash position to enhance shareholder value and drive innovation in its offerings.
A Who Owns A10 Networks, Inc. (ATEN)
Ownership Structure
As of 2024, A10 Networks, Inc. (ATEN) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The total number of shares outstanding is approximately 73.8 million.
Institutional Ownership
Institutional investors hold a significant portion of A10 Networks' shares, reflecting confidence in the company’s growth potential. The following table outlines the major institutional shareholders as of the latest reporting period:
| Institution | Shares Owned (millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 7.82 | 10.59% |
| BlackRock, Inc. | 6.54 | 8.87% |
| Wellington Management Group LLP | 5.34 | 7.24% |
| Renaissance Technologies LLC | 4.13 | 5.59% |
| State Street Corporation | 3.89 | 5.27% |
Insider Ownership
Insiders, including executives and board members, also own a portion of the company. Their stake reflects their commitment to the company's future. The following table summarizes insider ownership:
| Name | Position | Shares Owned (thousands) | Ownership Percentage |
|---|---|---|---|
| Tae Yoo | President and CEO | 1,200 | 1.63% |
| Yasuhiko Matsuda | CFO | 650 | 0.88% |
| Board of Directors | N/A | 2,000 | 2.71% |
Recent Financial Performance
A10 Networks has shown robust financial performance in recent quarters. For the three months ended September 30, 2024, the company reported:
- Total net revenue: $66.7 million
- Products revenue: $36.9 million
- Services revenue: $29.9 million
- Net income: $12.6 million
Comparatively, during the same period in 2023, the total net revenue was $57.8 million, illustrating a growth of approximately 15% year-over-year.
Market Position
A10 Networks operates within the cloud services and cybersecurity sectors, providing a range of products and services designed to enhance network performance and security. The company's strategic focus on innovation and customer service has positioned it favorably against competitors.
Conclusion on Ownership Dynamics
The ownership dynamics of A10 Networks, Inc. highlight a balanced mix of institutional and insider ownership, fostering stability and growth potential. This structure, complemented by strong financial performance, positions the company well for future endeavors.
A10 Networks, Inc. (ATEN) Mission Statement
Overview of Mission Statement
A10 Networks, Inc. is committed to providing innovative solutions that enhance the performance, security, and availability of applications in the cloud and on-premises. The company aims to empower businesses with advanced network security and application delivery technologies that ensure seamless connectivity and optimal user experiences.
Core Values
- Innovation: Continuously evolving products and services to meet the dynamic needs of customers.
- Customer Focus: Prioritizing customer satisfaction through tailored solutions and exceptional support.
- Integrity: Upholding ethical standards and transparency in all business dealings.
- Collaboration: Fostering teamwork and partnerships to drive success.
Financial Performance
As of September 30, 2024, A10 Networks reported the following financial figures:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Net Revenue | $66.7 million | $57.8 million | +15% |
| Products Revenue | $36.9 million | $30.3 million | +22% |
| Services Revenue | $29.9 million | $27.5 million | +9% |
| Net Income | $12.6 million | $6.5 million | +95% |
| Gross Margin | 80.5% | 80.9% | -0.4% |
Revenue Breakdown by Region
The following table illustrates the revenue distribution across different regions for Q3 2024:
| Region | Revenue ($ million) | Percentage of Total Revenue | Change (%) |
|---|---|---|---|
| Americas | $34.3 million | 51% | +33% |
| APJ | $23.0 million | 35% | +8% |
| EMEA | $9.5 million | 14% | -12% |
Investment in Growth
A10 Networks continues to invest in product development, with a focus on enhancing features to meet customer demands. The company has allocated resources towards expanding its sales and marketing efforts, which is expected to drive future growth.
Cash and Liquidity Position
As of September 30, 2024, A10 Networks held:
| Liquidity Metric | Amount ($ million) |
|---|---|
| Cash and Cash Equivalents | $78.1 million |
| Marketable Securities | $104.0 million |
| Total Stockholders' Equity | $217.3 million |
Stock Repurchase Program
As part of its capital allocation strategy, A10 Networks has initiated a stock repurchase program, authorizing up to $50 million in common stock repurchases. As of September 30, 2024, the company had repurchased 1.8 million shares at a total cost of $24.6 million under the 2023 program.
Dividend Policy
A10 Networks has maintained a consistent dividend policy, paying cash dividends of $0.06 per share in Q3 2024, totaling $4.5 million. The company plans to continue this practice, subject to board discretion and business conditions.
How A10 Networks, Inc. (ATEN) Works
Business Model
A10 Networks, Inc. operates primarily in the network security and application delivery market. The company generates revenue from two main sources: products and services. Products revenue includes hardware and software solutions, while services revenue encompasses post-contract support, professional services, and software-as-a-service (SaaS) offerings.
Financial Performance
As of September 30, 2024, A10 Networks reported total net revenue of $66.7 million for the third quarter, representing a 15% increase from $57.8 million in the same period of 2023. For the nine months ended September 30, 2024, total net revenue was $187.5 million, an increase of 3% from $181.3 million in 2023.
| Period | Net Revenue (in thousands) | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $66,721 | 15% |
| Q3 2023 | $57,775 | - |
| 9M 2024 | $187,492 | 3% |
| 9M 2023 | $181,283 | - |
Revenue Breakdown
In Q3 2024, product revenue accounted for $36.9 million (55.2% of total revenue), while service revenue was $29.9 million (44.8%). For the nine months ended September 30, 2024, product revenue totaled $96.5 million (51.4%) and service revenue was $91.0 million (48.6%).
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Products | $36,862 | $30,260 | $96,464 | $100,532 |
| Services | $29,859 | $27,515 | $91,028 | $80,751 |
Geographic Revenue Distribution
A10 Networks' revenue is geographically diversified, with the Americas contributing $34.3 million (51% of total revenue) in Q3 2024. The APJ region generated $23.0 million (35%), while EMEA contributed $9.5 million (14%).
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Americas | $34,253 | $25,818 |
| APJ | $22,989 | $21,196 |
| EMEA | $9,479 | $10,761 |
Cost Structure
The total cost of net revenue for Q3 2024 was $13.0 million, resulting in a gross profit of $53.7 million and a gross margin of 80.5%. For the nine months ended September 30, 2024, the total cost of revenue was $36.5 million, with a gross profit of $150.9 million and a gross margin of 80.5%.
| Period | Total Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin |
|---|---|---|---|
| Q3 2024 | $13,039 | $53,682 | 80.5% |
| 9M 2024 | $36,521 | $150,971 | 80.5% |
Operating Expenses
Operating expenses for Q3 2024 totaled $43.2 million, with significant allocations towards sales and marketing ($21.0 million), research and development ($15.7 million), and general and administrative ($6.5 million).
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Sales and Marketing | $21,011 | $21,324 |
| Research and Development | $15,734 | $17,620 |
| General and Administrative | $6,494 | $5,613 |
Net Income
For Q3 2024, A10 Networks reported a net income of $12.6 million, an increase of 95.3% compared to $6.5 million in Q3 2023. For the nine months ended September 30, 2024, net income was $31.8 million, up from $22.1 million in the previous year.
| Period | Net Income (in thousands) | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $12,637 | 95.3% |
| 9M 2024 | $31,839 | 44.4% |
Cash Flow and Liquidity
As of September 30, 2024, A10 Networks had cash and cash equivalents of $78.1 million and marketable securities of $104.0 million. Cash provided by operating activities was $64.8 million for the nine months ended September 30, 2024, compared to $41.8 million in the same period of 2023.
| Cash Flow Item | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Cash from Operating Activities | $64,782 | $41,783 |
| Cash and Cash Equivalents | $78,063 | $104,152 |
| Marketable Securities | $104,000 | - |
How A10 Networks, Inc. (ATEN) Makes Money
Revenue Sources
A10 Networks, Inc. derives its revenue from two primary sources:
- Products Revenue: This includes hardware sales, perpetual software licenses, and subscription offerings. For the three months ended September 30, 2024, products revenue was $36,862,000, representing 55% of total revenue, compared to $30,260,000 (52% of total revenue) for the same period in 2023.
- Services Revenue: This includes post-contract support (PCS), professional services, training, and software-as-a-service offerings. For the same period, services revenue amounted to $29,859,000, or 45% of total revenue, up from $27,515,000 (48% of total revenue) in 2023.
| Revenue Category | Q3 2024 ($) | Q3 2023 ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Products | 36,862,000 | 30,260,000 | 6,602,000 | 22% |
| Services | 29,859,000 | 27,515,000 | 2,344,000 | 9% |
| Total Revenue | 66,721,000 | 57,775,000 | 8,946,000 | 15% |
Geographic Revenue Distribution
In terms of geographic distribution, A10 Networks generated revenue from three main regions:
- Americas: $34,253,000 (51% of total revenue) in Q3 2024, compared to $25,818,000 (45% in Q3 2023).
- APJ (Asia Pacific and Japan): $22,989,000 (35% of total revenue) in Q3 2024, compared to $21,196,000 (37% in Q3 2023).
- EMEA (Europe, Middle East, and Africa): $9,479,000 (14% of total revenue) in Q3 2024, compared to $10,761,000 (19% in Q3 2023).
| Region | Q3 2024 Revenue ($) | Q3 2023 Revenue ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Americas | 34,253,000 | 25,818,000 | 8,435,000 | 33% |
| APJ | 22,989,000 | 21,196,000 | 1,793,000 | 8% |
| EMEA | 9,479,000 | 10,761,000 | (1,282,000) | (12%) |
Cost Structure
The cost of net revenue is categorized into products and services:
- Cost of Products Revenue: For Q3 2024, the cost was $7,531,000, representing a 10.5% increase from $6,815,000 in Q3 2023.
- Cost of Services Revenue: For Q3 2024, the cost was $5,508,000, a significant increase of 31.3% from $4,194,000 in Q3 2023.
| Cost Category | Q3 2024 ($) | Q3 2023 ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Products Revenue | 7,531,000 | 6,815,000 | 716,000 | 10.5% |
| Cost of Services Revenue | 5,508,000 | 4,194,000 | 1,314,000 | 31.3% |
| Total Cost of Net Revenue | 13,039,000 | 11,009,000 | 2,030,000 | 18.4% |
Gross Profit and Margin
For the three months ended September 30, 2024:
- Gross Profit: Total gross profit was $53,682,000, with a gross margin of 80.5%.
- Products Gross Profit: $29,331,000 with a margin of 79.6%.
- Services Gross Profit: $24,351,000 with a margin of 81.6%.
| Gross Profit Category | Q3 2024 ($) | Q3 2023 ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Gross Profit | 53,682,000 | 46,766,000 | 6,916,000 | 14.8% |
| Products Gross Profit | 29,331,000 | 23,445,000 | 5,886,000 | 25.1% |
| Services Gross Profit | 24,351,000 | 23,321,000 | 1,030,000 | 4.4% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were summarized as follows:
- Sales and Marketing: $21,011,000
- Research and Development: $15,734,000
- General and Administrative: $6,494,000
| Operating Expense Category | Q3 2024 ($) | Q3 2023 ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | 21,011,000 | 21,324,000 | (313,000) | (1.5%) |
| Research and Development | 15,734,000 | 17,620,000 | (1,886,000) | (10.7%) |
| General and Administrative | 6,494,000 | 5,613,000 | 881,000 | 15.7% |
| Total Operating Expenses | 43,239,000 | 44,557,000 | (1,318,000) | (3.0%) |
Net Income
For the three months ended September 30, 2024, A10 Networks reported a net income of $12,637,000, which is a 95.3% increase compared to $6,469,000 for the same period in 2023.
| Net Income Summary | Q3 2024 ($) | Q3 2023 ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | 12,637,000 | 6,469,000 | 6,168,000 | 95.3% |
Cash Flow and Financial Position
As of September 30, 2024, A10 Networks had:
- Cash and Cash Equivalents: $78,063,000
- Marketable Securities: $104,000,000
- Accounts Receivable: $64,949,000
- Deferred Revenue (Current): $89,509,000
- Deferred Revenue (Non-Current): $54,710,000
| Financial Position | Amount ($) |
|---|---|
| Cash and Cash Equivalents | 78,063,000 |
| Marketable Securities | 104,000,000 |
| Accounts Receivable | 64,949,000 |
| Deferred Revenue (Current) | 89,509,000 |
| Deferred Revenue (Non-Current) | 54,710,000 |
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Resources:
- A10 Networks, Inc. (ATEN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of A10 Networks, Inc. (ATEN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View A10 Networks, Inc. (ATEN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.