A10 Networks, Inc. · NYSE:ATEN
A10 Networks — Q4 2016 Earnings Presentation
22 slides from A10 Networks's earnings presentation, Feb 9, 2017
Slide 1: Fourth Quarter 2016 Financial Results & Commentary
YOUR SECURE APPLICATION SERVICES COMPANY Fourth Quarter 2016 Financial Results & Commentary February 9, 2017 1
Slide 2: Agenda
Agenda Introduction • Maria Riley, Investor Relations Results Overview • Lee Chen, CEO, President and Founder Q4 and Year 2016 Financial Results & Q1 2017 Business Outlook • Greg Straughn, CFO Q & A • Lee Chen, CEO, President and Founder • Greg Straughn, CFO • Ray Smets, EVP – Worldwide Sales 2
Slide 3: Cautionary Statements and Disclosures
Cautionary Statements and Disclosures This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management, including A10’s continued acceptance of A10’s products
Slide 4: Cautionary Statements and Disclosures (non-GAAP)
Cautionary Statements and Disclosures In addition to the U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. The non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results un
Slide 5: Lee Chen, CEO, President and Founder
Lee Chen CEO, President and Founder 5
Slide 6: Fourth Quarter 2016 Summary
Fourth Quarter 2016 Summary Fourth Quarter Revenue of $64.0 M, up 13% y/y • Record product revenue of $43.5 M, up 23% over Q3 and 10% y/y • Record security revenue; leading cloud provider contributed 13% of total revenue • Record revenue in the U.S., which grew 38% over Q3 and 6% y/y, to reach $33.5
Slide 7: 2016 Year Review
2016 Year Review Year 2016 Revenue of $230.0 M, up 16% from 2015 • Revenue from Japan grew 49% to $53.0 M • Revenue from the U.S. grew 11% to $118.7 M • Exceeded our goal for security revenue, and expect our security product revenue to be over 20% of our total product revenue in 2017 • Enterprise re
Slide 8: Recent Customer Engagements
Recent Customer Engagements • Tier-1 U.S. service provider selected Thunder TPS and SSLi • A leading service provider in the U.S. chose Thunder ADC with SSL Offload • Leading mobile carrier in South Korea selected Thunder CFW, with combined Gi Firewall and CGN • A large international organization se
Slide 9: Enabling Application Agility
9 Enabling Application Agility ACOS ACOS Application Delivery & Security Appliance & SDN Virtualization / NFV Lightweight ADC Secure Application Services Containers & Microservices On Premise Cloud S TA B I L I T Y & P E R F O R M A N C E A G I L I T Y & F LU I D I T Y ANALYTICS API CONFIGS APPLICAT
Slide 10: A10's Harmony Vision
10 ANY USER. ANY APP. ANY WHERE. PRIVATE CLOUD DATA CENTER HACKER DDOS ATTACK HOME OFFICE REMOTE USER PUBLIC CLOUD SAAS CLOUD AVAILABILITY SECURITY VISIBILITY A10’s Harmony Vision
Slide 11: Greg Straughn, CFO
Greg Straughn CFO 11
Slide 12: Revenue Trend
Revenue Trend QUARTERLY $M $179 $199 $230 2014 2015 2016 ANNUAL $M Annual $44 $48 $51 $57 $54 $57 $55 $64 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 12
Slide 13: Revenue Mix
Revenue Mix $ MILLIONS / % REVENUE Product Geography Verticals Numbers may not total to 100% due to rounding. 13
Slide 14: Non-GAAP Gross Profit
Non-GAAP Gross Profit *Non-GAAP rounded financial measures. For reconciliation see Appendix. 14 Add years 2015 2016 2014
Slide 15: Summary Financial Results
Summary Financial Results *Non-GAAP rounded financial measures. For reconciliation see Appendix. 15
Slide 16: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow im GAAP FINANCIAL MEASURES (sm Cash and Securities $85.6 $96.2 $100.5 $98.1 $107.5 Q1'2015_Q2’2015 _Q3'2015 Q4’2015 Q1’2016 Q2’2016 _Q3’2016 Q4’2016 $113.7 $116.8 $114.3 Accounts Receivable $52.8 $46.2 $41.5 $57.8 $41.9 Deferred Revenue (total) $59.7 $65.8 $66.3 $72.8 $74.8
Slide 17: Q1 2017 Business Outlook
Q1 2017 Business Outlook Management will host a conference call to discuss A10’s financial results for its fourth quarter and year 2016 and the current outlook for the first quarter of 2017 on February 9, 2017 at 4:30 p.m. Eastern time / 1:30 p.m. Pacific time. Open to the public, investors may acce
Slide 18: Question & Answer Session
Question & Answer Session LEE CHEN CEO, President and Founder GREG STRAUGHN CFO RAY SMETS EVP Worldwide Sales 18
Slide 19: Non-GAAP Reconciliation – Gross Profit
Non-GAAP Reconciliation – Gross Profit * SBC = stock-based compensation 19
Slide 20: Non-GAAP Reconciliation – Expense Items
Non-GAAP Reconciliation – Expense Items * SBC stands for stock-based compensation. 20
Slide 21: Non-GAAP Reconciliation – Income (Loss) Items
Non-GAAP Reconciliation – Income (Loss) Items 21
Slide 22: Thank You
Thank You www.a10networks.com