A10 Networks Reports Growth in 2024 Earnings

A10 Networks ( (ATEN) ) has released its Q4 earnings. Here is a breakdown of the information A10 Networks presented to its investors.

A10 Networks is a provider of cybersecurity and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments, serving a global customer base of large enterprises and communication service providers. The company recently announced its fourth quarter and full-year 2024 financial results, highlighting a recovery in demand from service providers and continued execution in the enterprise business.

For the fourth quarter of 2024, A10 Networks reported a revenue increase of 5% year-over-year, reaching $74.2 million. The company’s enterprise revenue grew by 8%, and service provider revenue increased by 4%. The GAAP gross margin was 79.9%, while the non-GAAP gross margin stood at 80.7%. A10 Networks achieved a GAAP net income of $18.3 million, or $0.24 per diluted share, and a non-GAAP net income of $23.0 million, or $0.31 per diluted share. The company returned $10.2 million to investors and announced a quarterly cash dividend.

For the full year 2024, A10 Networks reported a revenue of $261.7 million, reflecting a 4% increase from 2023. The company achieved a GAAP net income of $50.1 million, or $0.67 per diluted share, and a non-GAAP net income of $64.8 million, or $0.86 per diluted share. The adjusted EBITDA margin slightly improved to 28.5% from 28.3% in 2023.

Looking ahead, A10 Networks is optimistic about the ongoing normalization of spending from service provider customers and plans to launch new security solutions in 2025. The company is investing heavily in research and development to enhance its offerings for enterprise customers, aiming to solidify its competitive position in the market. Management emphasizes a continued focus on operational excellence and a durable business model to deliver consistent returns for stakeholders.