A10 Networks Inc (ATEN) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

GuruFocus.com11-08

Revenue: $66.7 million, an increase of 15.5% year over year. Enterprise Revenue: Increased 5% year-to-date and 9% on a trailing 12-month basis. Service Provider Revenue: Up 2% year-to-date. Security-...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA10 Networks Inc (ATEN) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 23:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/a10-networks-inc-aten-q3-150309147.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $66.7 million, an increase of 15.5% year over year.\nEnterprise Revenue: Increased 5% year-to-date and 9% on a trailing 12-month basis.\nService Provider Revenue: Up 2% year-to-date.\nSecurity-...</p>\n\n<a href=\"https://finance.yahoo.com/news/a10-networks-inc-aten-q3-150309147.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ATEN","symbol_name":"A10 Networks Inc","start_time":0,"source_url":"https://finance.yahoo.com/news/a10-networks-inc-aten-q3-150309147.html","article_id":"2482485487","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/JQx0KKs4wBMwbuZwsWiPrw--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/9a97c38130497961809dcf46c66b0c52"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482485487","pubTimestamp":1731078189,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $66.7 million, an increase of 15.5% year over year.Enterprise Revenue: Increased 5% year-to-date and 9% on a trailing 12-month basis.Product Revenue: $36.9 million, representing 55% of total revenue.Services Revenue: $29.9 million, or 45% of total revenue.Recurring Revenue: Increased 6% compared to the third quarter last year.Deferred Revenue: $144.2 million, up 6% year over year.Adjusted EBITDA: $17.8 million, reflecting 26.7% of revenue.Non-GAAP Net Income: $15.9 million or 21 per diluted share.GAAP Net Income: $12.6 million or 17 per diluted share.Cash from Operations: $21 million generated during the quarter.Total Cash and Equivalents: $182.1 million as of September 30, 2024.Cash Dividends Paid: $4.4 million during the quarter.Share Repurchase: $9.4 million worth of shares purchased during the quarter.GuruFocus has detected 7 Warning Sign with ATEN.A10 Networks Inc  generated over $21 million in cash from operations, keeping them on track for full-year targets.Q: Can you p","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ATEN":"A10 Networks Inc"},"translate_title":"A10 Networks Inc(ATEN)2024年第三季度收益看涨期权亮点：强劲的收入增长和战略……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ATEN":1},"content_text":"Revenue: $66.7 million, an increase of 15.5% year over year.\nEnterprise Revenue: Increased 5% year-to-date and 9% on a trailing 12-month basis.\nService Provider Revenue: Up 2% year-to-date.\nSecurity-led Revenue: Increased 10% year-to-date.\nProduct Revenue: $36.9 million, representing 55% of total revenue.\nServices Revenue: $29.9 million, or 45% of total revenue.\nRecurring Revenue: Increased 6% compared to the third quarter last year.\nDeferred Revenue: $144.2 million, up 6% year over year.\nGross Margin: 81.3% in the third quarter.\nAdjusted EBITDA: $17.8 million, reflecting 26.7% of revenue.\nNon-GAAP Net Income: $15.9 million or 21 per diluted share.\nGAAP Net Income: $12.6 million or 17 per diluted share.\nCash from Operations: $21 million generated during the quarter.\nTotal Cash and Equivalents: $182.1 million as of September 30, 2024.\nCash Dividends Paid: $4.4 million during the quarter.\nShare Repurchase: $9.4 million worth of shares purchased during the quarter.\nDebt: No debt carried.\n\n\nWarning! GuruFocus has detected 7 Warning Sign with ATEN.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nEnterprise revenue increased by 5% year-to-date and 9% on a trailing 12-month basis, indicating strong growth in this segment.\nService provider revenue showed improvement, increasing by 2% year-to-date after a decline in the first half of 2024.\nSecurity-led revenue increased by 10% year-to-date, highlighting the company's strong focus on cybersecurity solutions.\nThe company maintained robust profitability, with expanded operating, EBITDA, and net margins.\nA10 Networks Inc (NYSE:ATEN) generated over $21 million in cash from operations, keeping them on track for full-year targets.\n\n Negative Points \n\nNorth American service provider segment remains volatile, with no clear indication of stabilization.\nAccounts receivable increased significantly compared to Q2, raising concerns about payment delays.\nEnterprise revenue growth was only 3% year-over-year, which is lower than previous quarters.\nThe company's EPS benefited from non-recurring foreign currency factors, which may not be sustainable.\nDespite increased R&D investment, there is uncertainty about the immediate impact on revenue growth.\n\n Q & A Highlights \nQ: How should we expect demand in the service provider segment to continue throughout the rest of the year and into next year? A: Dhrupad Trivedi, President and CEO, stated that while some volatility is expected, the overall trend is improving and stabilizing. They are seeing positive signs of resumed investments and infrastructure growth plans from customers, which aligns with their long-term expectations for the segment.\nQ: Can you provide more details on the enterprise revenue growth, which was only up 3% year-over-year? A: Dhrupad Trivedi explained that their focus is on large enterprises, and the growth is in line with expectations. The year-to-date and trailing 12-month growth rates are above industry averages, indicating progress in this segment.\nQ: What is the plan to manage the increase in accounts receivable, and are there any delays in getting paid? A: Brian Becker, CFO, mentioned that the increase is due to period linearity and is not a concern. The aging of receivables is in line with or better than usual, reflecting healthy financials.\nQ: Could you clarify the comments on service provider volatility and optimism that the worst is behind? A: Dhrupad Trivedi clarified that while there is some volatility, particularly in North America, the overall trend is positive. The opportunities and customer plans for capital use are more favorable than six to twelve months ago.\nQ: What are your future expectations for the security-led business, which grew 10% year-to-date? A: Brian Becker stated that they expect the security-led business to grow at a rate of 10% to 12% in the near future, which is incorporated into their plans.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482485487"}