A10 Networks Stock Jumps After Strong Earnings Report
Oct 29, 2021 By MarketDepth
A10 Networks, Inc. (NYSE: ATEN) shares jumped more than 30% after announcing financial results for its third quarter ended September 30, 2021. The Company announced revenue of $65.4 million, up 15% year-over-year and GAAP net income of $74.9 million (114.6% of revenue), or $0.94 per diluted share, inclusive of a non-recurring tax benefit, compared with net income of $6.5 million, or $0.08 per diluted share in the third quarter of 2020.
“We achieved strong top- and bottom-line results as our security-led solutions are enabling us to capture market share and driving accelerated growth. Long-term deferred revenue has grown 16% year-over-year, outpacing total revenue growth. Our diversified model is enabling us to successfully navigate regional and logistical challenges, as evidenced by our 15% revenue growth and nearly 26% adjusted EBITDA margin validating the business model transformation. The increasing profitability of our business required us to release our full tax valuation allowance, as we now expect to utilize our entire net operating loss carryforwards in future periods. Our business model positions us to meaningfully drive growth and continue to improve the business model. In addition, the strong, sustainable free cash flow has enabled our Board to return capital to stockholders by declaring a quarterly cash dividend and significantly expanding our share repurchase program.”Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks
A10 Networks is a provider of secure application services and solutions for on-premises, multi-cloud and edge-cloud environments at hyperscale. Our mission is to enable service providers and enterprises to deliver business-critical applications that are secure, available and efficient for multi-cloud transformation and 5G readiness.