Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||
2021
|
2020
|
2021
|
2020
| ||||||||||||
Revenue:
| |||||||||||||||
Products
|
$
|
39,815
|
$
|
32,188
|
$
|
104,718
|
$
| 92,138 | |||||||
Services
|
25,545
|
24,420
|
74,653
|
70,734
| |||||||||||
Total revenue
|
65,360
|
56,608
|
179,371
|
162,872
| |||||||||||
Cost of revenue:
| |||||||||||||||
Products
|
7,859
|
7,610
|
23,160
|
21,095
| |||||||||||
Services
|
5,335
|
5,513
|
16,163
|
15,592
| |||||||||||
Total cost of revenue
|
13,194
|
13,123
|
39,323
|
36,687
| |||||||||||
Gross profit
|
52,166
|
43,485
|
140,048
|
126,185
| |||||||||||
Operating expenses:
| |||||||||||||||
Sales and marketing
|
21,354
|
18,556
|
60,195
|
57,653
| |||||||||||
Research and development
|
13,578
|
13,694
|
41,050
|
42,459
| |||||||||||
General and administrative
|
6,931
|
4,994
|
17,260
|
16,126
| |||||||||||
Total operating expenses
|
41,863
|
37,244
|
118,505
|
116,238
| |||||||||||
Income from operations
|
10,303
|
6,241
|
21,543
|
9,947
| |||||||||||
Non-operating income (expense):
| |||||||||||||||
Interest and other income (expense), net
|
(198)
|
479
|
(1,493)
|
937
| |||||||||||
Total non-operating income (expense), net
|
(198)
|
479
|
(1,493)
|
937
| |||||||||||
Income before income taxes
|
10,105
|
6,720
|
20,050
|
10,884
| |||||||||||
Benefit from (provision for) for income taxes
|
64,781
|
(256)
|
64,109
|
(909)
| |||||||||||
Net income
|
$
|
74,886
|
$
|
6,464
|
$
|
84,159
|
$
|
9,975
| |||||||
Net income per share:
| |||||||||||||||
Basic
|
$
|
0.97
|
$
|
0.08
|
$
|
1.09
|
$
|
0.13
| |||||||
Diluted
|
$
|
0.94
|
$
|
0.08
|
$
|
1.05
|
$
|
0.12
| |||||||
Weighted-average shares used in computing net income per share:
| |||||||||||||||
Basic
|
77,149
|
78,235
|
76,885
|
78,158
| |||||||||||
Diluted
|
79,927
|
80,424
|
79,803
|
80,232
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||
2021
|
2020
|
2021
|
2020
| ||||||||||||
GAAP net income
|
$
|
74,886
|
$
|
6,464
|
$
|
84,159
|
$
|
9,975
| |||||||
Non-GAAP adjustments:
| |||||||||||||||
Stock-based compensation and related payroll tax
|
4,201
|
3,554
|
11,433
|
9,870
| |||||||||||
Amortization expense related to acquisition
|
-
|
253
|
505
|
759
| |||||||||||
Litigation and investigation expense
|
-
|
-
|
-
|
30
| |||||||||||
Non-recurring facilities expense
|
-
|
-
|
-
|
795
| |||||||||||
Global distribution center transition expense
|
(1)
|
-
|
2,946
|
-
| |||||||||||
Release of deferred tax asset valuation allowance | (65,417) |
-
|
(65,417)
|
-
| |||||||||||
Non-GAAP net income
|
$
|
13,669
|
$
|
10,271
|
$
|
33,626
|
$
|
21,429
| |||||||
GAAP net income per share:
| |||||||||||||||
Basic
|
$
|
0.97
|
$
|
0.08
|
$
|
1.09
|
$
|
0.13
| |||||||
Diluted
|
$
|
0.94
|
$
|
0.08
|
$
|
1.05
|
$
|
0.12
| |||||||
Non-GAAP adjustments:
| |||||||||||||||
Stock-based compensation and related payroll tax
|
0.05
|
0.05
|
0.14
|
0.13
| |||||||||||
Amortization expense related to acquisition
|
-
|
-
|
0.01
|
0.01
| |||||||||||
Non-recurring facilities expense
|
-
|
-
|
-
|
0.01
| |||||||||||
Global distribution center transition expense
|
-
|
-
|
0.04
|
-
| |||||||||||
Release of deferred tax asset valuation allowance | (0.82) | - | (0.82) | - | |||||||||||
Non-GAAP net income per share:
| |||||||||||||||
Basic
|
$
|
0.18
|
$
|
0.13
|
$
|
0.44
|
$
|
0.27
| |||||||
Diluted
|
$
|
0.17
|
$
|
0.13
|
$
|
0.42
|
$
|
0.27
| |||||||
Weighted-average shares used in computing non-GAAP net income per share:
| |||||||||||||||
Basic
|
$
|
77,149
|
$
|
78,235
|
$
|
76,885
|
$
|
78,158
| |||||||
Diluted
|
$
|
79,927
|
$
|
80,424
|
$
|
79,803
|
$
|
80,232
| |||||||
September 30,
2021
|
December 31,
2020
| ||||||
ASSETS
| |||||||
Current assets:
| |||||||
Cash and cash equivalents
|
$
|
85,637
|
$
|
83,281
| |||
Marketable securities
|
101,820
|
74,851
| |||||
Accounts receivable, net of allowances of $540 and $41, respectively
|
46,784
|
51,051
| |||||
Inventory
|
19,169
|
20,730
| |||||
Prepaid expenses and other current assets
|
13,910
|
12,390
| |||||
Total current assets
|
267,320
|
242,303
| |||||
Property and equipment, net
|
9,555
|
7,888
| |||||
Goodwill
|
1,307
|
1,307
| |||||
Intangible assets, net
|
33
|
862
| |||||
Other non-current assets
|
96,230
|
38,451
| |||||
Total assets
|
$
|
374,445
|
$
|
290,811
| |||
LIABILITIES AND STOCKHOLDERS' EQUITY
| |||||||
Current liabilities:
| |||||||
Accounts payable
|
$
|
3,755
|
$
|
4,851
| |||
Accrued liabilities
|
28,968
|
36,930
| |||||
Deferred revenue
|
70,501
|
65,999
| |||||
Total current liabilities
|
103,224
|
107,780
| |||||
Deferred revenue, non-current
|
46,616
|
42,700
| |||||
Other non-current liabilities
|
21,010
|
24,357
| |||||
Total liabilities
|
170,850
|
174,837
| |||||
Commitments and contingencies
| |||||||
Stockholders' equity:
| |||||||
Common stock, $0.00001 par value: 500,000 shares authorized; 77,508 and 76,346 shares issued and outstanding, respectively
|
1
|
1
| |||||
Treasury stock, at cost: 6,825 and 5,578 shares, respectively
|
(48,623)
|
(37,410)
| |||||
Additional paid-in-capital
|
440,305
|
425,534
| |||||
Accumulated other comprehensive income
|
2
|
98
| |||||
Accumulated deficit
|
(188,090)
|
(272,249)
| |||||
Total stockholders' equity
|
203,595
|
115,974
| |||||
Total liabilities and stockholders' equity
|
$
|
374,445
|
$
|
290,811
|
Nine Months Ended September 30,
| |||||||
2021
|
2020
| ||||||
Cash flows from operating activities:
| |||||||
Net income
|
$
|
84,159
|
$
|
9,975
| |||
Adjustments to reconcile net income to net cash provided by operating activities:
| |||||||
Depreciation and amortization
|
7,044
|
8,773
| |||||
Stock-based compensation
|
10,848
|
9,382
| |||||
Other non-cash items
|
(64,631)
|
466
| |||||
Changes in operating assets and liabilities:
| |||||||
Accounts receivable
|
4,418
|
10,777
| |||||
Inventory
|
1,438
|
(810)
| |||||
Prepaid expenses and other assets
|
1,905
|
3,716
| |||||
Accounts payable
|
(1,086)
|
(322)
| |||||
Accrued and other liabilities
|
(11,309)
|
(4,297)
| |||||
Deferred revenue
|
8,417
|
861
| |||||
Net cash provided by operating activities
|
41,203
|
38,521
| |||||
Cash flows from investing activities:
| |||||||
Proceeds from sales of marketable securities
|
5,865
|
8,330
| |||||
Proceeds from maturities of marketable securities
|
70,870
|
39,280
| |||||
Purchases of marketable securities
|
(104,732)
|
(39,695)
| |||||
Purchases of property and equipment
|
(3,387)
|
(2,549)
| |||||
Net cash provided by (used in) investing activities
|
(31,384)
|
5,366
| |||||
Cash flows from financing activities:
| |||||||
Proceeds from issuance of common stock under employee equity incentive plans
|
3,750
|
6,776
| |||||
Repurchase of common stock
|
(11,213)
|
(13,336)
| |||||
Net cash used in financing activities
|
(7,463)
|
(6,560)
| |||||
Net increase in cash and cash equivalents
|
2,356
|
37,327
| |||||
Cash and cash equivalents-beginning of period
|
$
|
83,281
|
$
|
45,742
| |||
Cash and cash equivalents-end of period
|
$
|
85,637
|
$
|
83,069
| |||
Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||
2021
|
2020
|
2021
|
2020
| ||||||||||||
GAAP gross profit
|
$
|
52,166
|
$
|
43,485
|
$
|
140,048
|
$
|
126,185
| |||||||
GAAP gross margin
|
79.8
|
%
|
76.8
|
%
|
78.1
|
%
|
77.5
|
%
| |||||||
Non-GAAP adjustments:
| |||||||||||||||
Stock-based compensation and related payroll tax
|
391
|
459
|
1,335
|
1,256
| |||||||||||
Global distribution center transition expense
|
13
|
-
|
538
|
-
| |||||||||||
Non-GAAP gross profit
|
$
|
52,570
|
$
|
43,944
|
$
|
141,921
|
$
|
127,441
| |||||||
Non-GAAP gross margin
|
80.4
|
%
|
77.6
|
%
|
79.1
|
%
|
78.2
|
%
| |||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||
2021
|
2020
|
2021
|
2020
| ||||||||||||
GAAP total operating expenses
|
$
|
41,863
|
$
|
37,244
|
$
|
118,505
|
$
|
116,238
| |||||||
Non-GAAP adjustments:
| |||||||||||||||
Stock-based compensation and related payroll tax
|
(3,810)
|
(3,095)
|
(10,098)
|
(8,614)
| |||||||||||
Amortization expense related to acquisition
|
-
|
(253)
|
(505)
|
(759)
| |||||||||||
Litigation and investigation expense
|
-
|
-
|
-
|
(30)
| |||||||||||
Non-recurring facilities expense
|
-
|
-
|
-
|
(795)
| |||||||||||
Global distribution center transition expense
|
14
|
-
|
(2,408)
|
-
| |||||||||||
Non-GAAP total operating expenses
|
$
|
38,067
|
$
|
33,896
|
$
|
105,494
|
$
|
106,040
| |||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||
2021
|
2020
|
2021
|
2020
| ||||||||||||
GAAP income from operations
|
$
|
10,303
|
$
|
6,241
|
$
|
21,543
|
$
|
9,947
| |||||||
GAAP operating margin
|
15.8
|
%
|
11.0
|
%
|
12.0
|
%
|
6.1
|
%
| |||||||
Non-GAAP adjustments:
| |||||||||||||||
Stock-based compensation and related payroll tax
|
4,201
|
3,554
|
11,433
|
9,870
| |||||||||||
Amortization expense related to acquisition
|
-
|
253
|
505
|
759
| |||||||||||
Litigation and investigation expense
|
-
|
-
|
-
|
30
| |||||||||||
Non-recurring facilities expense
|
-
|
-
|
-
|
795
| |||||||||||
Global distribution center transition expense
|
(1)
|
-
|
2,946
|
-
| |||||||||||
Non-GAAP operating income
|
$
|
14,503
|
$
|
10,048
|
$
|
36,427
|
$
|
21,401
| |||||||
Non-GAAP operating margin
|
22.2
|
%
|
17.8
|
%
|
20.3
|
%
|
13.1
|
%
| |||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||
2021
|
2020
|
2021
|
2020
| ||||||||||||
GAAP net income
|
$
|
74,886
|
$
|
6,464
|
$
|
84,159
|
$
|
9,975
| |||||||
Exclude: Interest and other (income) expense, net
|
198
|
(479)
|
1,493
|
(937)
| |||||||||||
Exclude: Depreciation and amortization expense
|
2,291
|
2,676
|
7,044
|
8,772
| |||||||||||
Exclude: Provision for (benefit from) income taxes
|
(64,781)
|
256
|
(64,109)
|
909
| |||||||||||
EBITDA
|
12,594
|
8,917
|
28,587
|
18,719
| |||||||||||
Exclude: Stock-based compensation and related payroll tax
|
4,201
|
3,554
|
11,433
|
9,870
| |||||||||||
Exclude: Litigation and investigation expense
|
-
|
-
|
-
|
30
| |||||||||||
Exclude: Non-recurring facilities expense
|
-
|
-
|
-
|
795
| |||||||||||
Exclude: Global distribution center transition expense
|
(1)
|
-
|
2,946
|
-
| |||||||||||
Adjusted EBITDA
|
$
|
16,794
|
$
|
12,471
|
$
|
42,966
|
$
|
29,414
|
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Disclaimer
A10 Networks Inc. published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 20:30:19 UTC.