A10 Networks Delivers Strong Financial Performance for 2024
A10 Networks Reports Impressive Fourth Quarter and Full Year Financial Results
A10 Networks, Inc. (NYSE: ATEN), recognized as a pivotal provider of cybersecurity and infrastructure solutions, has recently disclosed its financial achievements for the fourth quarter and full year ending December 31, 2024. The results reflect a solid increase in revenue and enhanced profitability, emphasizing the company's robust market position.
Fourth Quarter 2024 Financial Highlights
The fourth quarter showcased remarkable financial progress:
- Revenue surged to $74.2 million, a 5% improvement from $70.4 million reported in the same quarter of 2023.
- Enterprise revenue experienced a commendable growth of 8% year-over-year, alongside a 4% increase in service provider revenue.
- The GAAP gross margin stood at an impressive 79.9%, while the non-GAAP gross margin was reported at 80.7%.
- GAAP net income for the quarter reached $18.3 million, accounting for 24.7% of revenue, translating to $0.24 per diluted share, virtually unchanged from the fourth quarter of 2023, where net income was $17.9 million.
- In non-GAAP terms, net income hit $23.0 million (30.9% of revenue), equating to $0.31 per diluted share, significantly up from $18.5 million recorded in Q4 2023.
- Adjusted EBITDA rose to $27.3 million, representing 36.8% of revenue, compared to $24.0 million in Q4 2023.
- A10 concluded the quarter with a strong cash and investments balance of $195.6 million, up from $159.3 million a year prior, successfully generating $25.7 million in cash from operations.
- Moreover, $10.2 million was returned to shareholders through share buybacks and dividends.
Full Year 2024 Financial Overview
For the entire year, A10 Networks reported:
- Annual revenue of $261.7 million, evidencing a growth of $10.0 million or 4% from $251.7 million in 2023.
- GAAP net income of $50.1 million, comprising 19.2% of revenue, equaling $0.67 per diluted share.
- Non-GAAP net income tallied at $64.8 million, accounting for 24.8% of revenue, and $0.86 per diluted share, a notable increase from $54.9 million in 2023.
- The adjusted EBITDA margin slightly improved to 28.5% compared to the previous 28.3% year-over-year.
Strategic Insights from Leadership
Dhrupad Trivedi, President and CEO of A10 Networks, expressed optimism regarding the demand from service provider customers as they prepare for 2025. They anticipate a stabilization in spending habits and expect to witness further growth fueled by AI technology.
Trivedi also pointed out that significant advancements with enterprise customers are underway, and the company is committed to investing in enriching its services. Upcoming innovations aim to bolster their security offerings further.
As the company adapts to a swifter engineering and delivery model, which emphasizes security and operational efficiency, A10 competes effectively, providing consistent returns for stakeholders.
Upcoming Events
A conference call is scheduled for today at 1:30 p.m. Pacific (4:30 p.m. Eastern) to further discuss the financial results. Interested participants can join by calling (833) 470-1428 or (404) 975-4839 with access code: 475407. A live audio webcast will also be available on the A10 Networks investor relations page.
About A10 Networks
A10 Networks is a leading provider of security and infrastructure solutions designed for various environments including on-premises, hybrid cloud, and edge-cloud. The firm supports over 7000 customers, including large global enterprises and communication service providers, focused on securing and optimizing their critical applications and networks. Founded in 2004, A10 Networks is headquartered in San Jose, Calif.
Frequently Asked Questions
What were A10 Networks' revenue figures for Q4 2024?
The revenue for Q4 2024 was $74.2 million, a 5% increase from the previous year.
How did the annual revenue change in 2024 compared to 2023?
A10 Networks recorded $261.7 million in revenue for 2024, which is an increase from $251.7 million in 2023.
What is the GAAP net income for Q4 2024?
The GAAP net income for Q4 2024 was $18.3 million, which was 24.7% of the revenue.
What investments is A10 Networks making for the future?
A10 Networks is heavily investing in enhancing its service offerings, particularly focusing on security solutions to meet growing demand.
When is the next presentation by the management team?
A10 Networks management has scheduled a conference call for today to discuss the quarterly and annual results in detail.
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