A10 Networks Reports Financial Results for the First Quarter of 2025

In This Article:

Company Delivers Revenue Growth YoY and Expands Earnings Per Share

Board Authorizes New Buyback Program

SAN JOSE, Calif., May 01, 2025--(BUSINESS WIRE)--A10 Networks, Inc. (NYSE: ATEN), a leading provider of secure application services and solutions, today announced financial results for its first quarter ended March 31, 2025.

First Quarter 2025 Financial Summary

  • Revenue of $66.1 million, up 9% year-over-year compared to $60.7 million in the first quarter of 2024.

  • GAAP gross margin of 79.7%; non-GAAP gross margin of 80.9% as a result of continued focus on operational execution of business model goals despite near-term volatility in the market.

  • GAAP net income of $9.5 million (14.4% of revenue), or $0.13 per diluted share, compared to net income of $9.7 million (16.0% of revenue), or $0.13 per diluted share, in the first quarter of 2024.

  • Non-GAAP net income of $15.0 million (22.7% of revenue), or $0.20 per diluted share, compared to non-GAAP net income of $12.7 million (21.0% of revenue), or $0.17 per diluted share in the first quarter of 2024.

  • The Company returned $51.4 million to investors, having repurchased 2.4 million shares at an average price of $19.58 for a total of $47.0 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 June 2, 2025 to stockholders of record at the close of business on May 15, 2025.

  • The Board of Directors also authorized a new, $75 million share repurchase program.

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

"A10 continued to deliver solid execution, benefiting from some stabilization in our service provider segment, particularly in North America, and steady progress in the enterprise segment," said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. "The recent acquisition of ThreatX Protect, which closed in February, bolsters our capabilities to protect against attacks on web applications and application programming interfaces (APIs), a key area of focus for enterprise customers. Overall, our increased focus on enterprise market continues to provide durable growth, and security-related revenue continues to grow faster than overall revenue. As a result of our continued focus on diversification, in terms of customer segments and geographies, we remain well-positioned to outperform the broader industry."

"Simultaneously, we continue to navigate macroeconomic volatility from a position of strength with a robust balance sheet and an innovation engine aligned with secular growth trends," continued Trivedi. "Service provider spending patterns could remain uneven due to unpredictable impact of trade policies, causing customers to proceed cautiously. We are monitoring and jointly navigating tariff-related input cost increases with our customers, minimizing the impact on our profitability, though we are not completely immune to these challenges."