A10 Networks Q2 2025 Earnings Call Transcript

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Provided by Quartr
August 5, 2025

Key Takeaways

  • Positive Sentiment: Q2 revenue was $69.4 million, up 15% year-over-year, with trailing-12-month revenue growth of 11% (enterprise +8%, service provider +14%) and a forecast of high-single-digit annual growth.
  • Positive Sentiment: The company highlighted its strategic alignment with AI and cybersecurity tailwinds, including a selection by a global cloud leader to build AI infrastructure, and its balanced enterprise and service provider focus for resilience.
  • Positive Sentiment: Profitability remained strong with an 80% gross margin, 28.3% adjusted EBITDA margin, non-GAAP EPS of $0.21 (vs. $0.18 prior year) and GAAP EPS of $0.14 (vs. $0.13).
  • Positive Sentiment: Financial position strengthened with $367.4 million in cash and equivalents, $22.2 million generated from operations, a $0.06 quarterly dividend, and $3.9 million in share repurchases (with $71.1 million remaining).
  • Neutral Sentiment: Management noted choppy market conditions, uneven service provider spending recovery—especially in North America—and tougher year-over-year comparisons in the next quarter.
AI Generated. May Contain Errors.
Earnings Conference Call
A10 Networks Q2 2025
00:00 / 00:00

Transcript Sections

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Operator

Good day, everyone, and welcome to the A10 Networks Second Quarter twenty twenty five Financial Results. At this time, all participants are in a listen only mode. If you have any questions or comments during the presentation, you may press star one on your phone to enter the question queue at any time. And we'll open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Tom Baumann of FNK IR. Sir, the floor is yours.

Thomas Baumann
Vice President at FNK IR

Thank you, and thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least ninety days via the ATN Networks website, a10networks.com. Hosting the call today are Dhrupa Trivedi, ATN's President and CEO and CFO, Brian Becker. Before we begin, I would like to remind you that shortly after the market closed today, ATN Networks issued a press release announcing its second quarter twenty twenty five financial results. Additionally, ATN published a presentation and supplemental trended financial statements.

Thomas Baumann
Vice President at FNK IR

You may access the press release, presentation and trended financial statements on the Investor Relations section of the company's website. During the course of today's call, management will make forward looking statements, including statements regarding projections for future operating results, demand, industry and customer trends, macroeconomic factors, strategy, potential new products and solutions, our capital allocation strategy, profitability, expenses, and investments, positioning, and our dividend program. These statements are based on current expectations and beliefs as of today, 08/05/2025. These forward looking statements involve a number of risks and uncertainties, some of which are beyond our control that could cause actual results to differ materially and you should not rely on them as predictions of future events. ATN does not intend to update information contained in these forward looking statements, whether as a result of new information, future events or otherwise, unless required by law.

Thomas Baumann
Vice President at FNK IR

For a more detailed description of these risks and uncertainties, please refer to our most recent 10 ks and quarterly report on Form 10 Q. Please note, with the exception of revenue, financial measures discussed today are on a non GAAP basis and have been adjusted to exclude certain charges. The non GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP and may be different from non GAAP financial measures presented by other companies. A reconciliation between GAAP and non GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company's website at www.a10networks.com. Now, I'd like to turn the call over to Dhrupa Trivedi, President and CEO of A10 Networks.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thank you, Tom, and thank you all for joining us today. ATN continued to deliver growth and profitability in the second quarter. This performance demonstrate the continued validation of our strategy. We have strategically aligned our technology roadmap and go to market focus with the evolving cybersecurity landscape where our customers are facing increasingly complex challenges. Our solutions emphasize high performance and advanced security, two areas that are increasingly central to both the service provider and enterprise customers.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

This strategic focus and delivery of innovation is resonating in the market. This concentration was further validated by our recent selection by a global cloud leader to help build their future AI infrastructure, indicating that ATN's offering is well positioned at the intersection of today's most urgent priorities for the world's most demanding customers. Increasingly, that alignment with the key drivers of technology investment is the most important point I want to share with investors today. ATN is exceedingly well aligned with these two primary catalysts, influencing IT and infrastructure spending, artificial intelligence and cybersecurity. We believe we have the right technology, the right product road map, and increasingly, the right go to market execution to fully capitalize on these trends.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Our intentional diversification enhances our resilience. In the second quarter, we saw an improvement in parts of global service provider spending, driven by the factors I mentioned earlier. Our balanced exposure across verticals and geographies is a core strength of our business model, and it allows us to maintain momentum while we capitalize on secular tailwinds in AI and cybersecurity. Looking at performance on a trailing twelve month basis provides a view of our underlying momentum. Total revenue grew 11% year over year, with enterprise up 8% and service provider revenue increasing 14%.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Even after adjusting for the favorable year over year comparison, we believe this reflects a sustainable growth trend aligned with our strategy, and we remain comfortable in our ability to deliver annual revenue growth in the high single digit range. Our first half results are consistent with these expectations. We will continue to navigate choppy market conditions while focusing on execution and aligning investments with long term growth expectations and business model goals. Our service provider revenue during the period benefited from improved demand from data center expansions and AI infrastructure investments. As I mentioned in the past, AI applications are power hungry, making our solutions which provide industry leading efficiency in terms of throughput, low latency, and best in class security more attractive as customers can achieve better ROI on those investments.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

We are actively leveraging this competitive advantage along with our networking expertise, in opportunities for large data center projects around the world. Our EBITDA as a percent of revenue grew year over year, even as we aggressively invest in new areas. As an indicator, we had two AI products win the top awards at the prestigious Interop event in Japan, competing against much larger players as well as startups. Our comprehensive AT and T FEND portfolio of solutions provide hybrid DDoS protection, threat intelligence, web application, and bot protection, and now adds a fully featured VAP solution, all integrated into a single solution with end to end delivery and stronger security for mission critical applications. Stepping back, I am increasingly confident in our strategic positioning.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Our deliberate focus on aligning ATN's growth and investment strategy with structural tailwinds of AI and cybersecurity continues to pay dividends. Our focus on systematically growing enterprise market adds another growth vector. We believe Aegon is well positioned to serve both enterprise and service provider customers, employing an intentional diversification strategy that delivers resiliency in our results. We are also well diversified across regions. The business continues to effectively navigate short term market volatility, delivering consistent profitability and returning capital to shareholders.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

As markets evolve, we are well positioned to outpace the market in terms of revenue growth while increasing our profitability in line with our business model. With that, I'd like to turn the call over to Brian for a detailed review of the quarter. Brian?

Brian Becker
Brian Becker
CFO at A10 Networks

Thank you, Dhruvit. Second quarter revenue was $69,400,000 an increase of 15% year over year. The results benefited from a more normalized service provider quarter compared to last year and the strategic investments we've made in enterprise and AI infrastructure. The overall trends are positive, and we continue to maintain our focus on global diversification. Product revenue for the quarter was $39,200,000 representing 56% of total revenue.

Brian Becker
Brian Becker
CFO at A10 Networks

Services revenue was $30,200,000 or 44% of total revenue. Total deferred revenue increased to $144,400,000 As expected, we see strong uptake of our cutting edge portfolio evidenced by continued product revenue growth and renewal rates on eligible contracts remain above 90%. The high renewal rates are an indicator that we are not losing any customers or market share. With the exception of revenue, all of the metrics discussed on this call are on a non GAAP basis unless otherwise stated. A full reconciliation of GAAP to non GAAP results are provided in our press release and on our website.

Brian Becker
Brian Becker
CFO at A10 Networks

Gross margin in the second quarter was 80%, in line with our stated goals of 80% to 82%. Adjusted EBITDA was $19,700,000 for the quarter, reflecting 28.3% of revenue, in line with our stated long term goals. Non GAAP net income for the quarter was $15,500,000 or $0.21 per diluted share compared to $13,200,000 or $0.18 per diluted share in the year ago quarter. Diluted weighted shares used for computing non GAAP EPS for the second quarter were approximately 73,100,000.0 shares, down 2,400,000.0 shares year over year due to our continued share buyback. On a GAAP basis, net income for the quarter was $10,500,000 or $0.14 per diluted share compared to net income of $9,500,000 or $0.13 per diluted share in the year ago quarter.

Brian Becker
Brian Becker
CFO at A10 Networks

During the quarter, we generated $22,200,000 in cash from operations. Turning to the year to date results. Revenue for the first six months of 2025 was $135,500,000 compared to $120,800,000 an increase of 12%. Non GAAP gross margin was 80.4% year to date. We continue to navigate macro uncertainties and are aggressively supporting our key AI customers.

Brian Becker
Brian Becker
CFO at A10 Networks

Adjusted EBITDA was $39,200,000 year to date, reflecting 28.9% of revenue. Non GAAP net income on a year to date basis was $30,500,000 or $0.41 per diluted share compared to $26,000,000 or $0.35 per diluted share last year. On a GAAP basis, net income for the first six months was $20,100,000 or $0.27 per diluted share compared to net income of $19,200,000 or $0.26 per diluted share in the first six months of last year. Turning to the balance sheet. As of 06/30/2025, we had $367,400,000 in cash, cash equivalents and marketable securities compared to $195,600,000 in the 2024.

Brian Becker
Brian Becker
CFO at A10 Networks

We ended the quarter with convertible debt of $218,100,000 as a result of our convertible debt offering completed in Q1. During the quarter, we paid $4,300,000 in cash dividends and repurchased $3,900,000 worth of shares. The Board has approved a quarterly cash dividend of $06 per share to be paid on 09/02/2025, for shareholders of record on 08/15/2025. The company has 71,100,000 remaining of its $75,000,000 share repurchase authorization. I'll now call the turn the call back over to Dhruvib for closing comments.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thank you, Brian. We are encouraged by the continued business execution and remain confident that ATN is strategically well positioned in the market. Technology spending is heavily influenced by increased demand for cybersecurity solutions and the accelerating adoption of AI related spending. ATAN is positioned squarely in front of these two durable secular catalysts. We are investing to enhance our position in the enterprise space and remain aligned with key leaders in the service provider sector around the world.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

We believe our business model enables us to dynamically allocate resources to address changing market conditions while preserving profitability and shareholder returns. Operator, you can now open the call for questions.

Operator

Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. Your first question is coming from Gray Powell from BTIG. Your line is live.

Gray Powell
Managing Director at BTIG

Okay, great. Thanks for taking the question and congratulations on the good results.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thank you, Gray.

Gray Powell
Managing Director at BTIG

Yes, absolutely. So yes, you posted the best product revenue growth in Q2 that we've seen in over five years. I realize that comps get tougher next quarter, but just how should we think about the potential to sustain your recent momentum and just the sustainability of the service provider segment? Do you think you've, like, hit a turning point there?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Yeah. No, great question. So I'll probably address them both separately. So you're right. I think, Gray, so obviously, we are pleased with the progress and results on the product side because ultimately that builds a foundation for us, right, with the customer base and results in more sustained growth long term.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So, that's one. The part of the driver for that, I would say two things. One is on the enterprise side as we are able to penetrate, you know, larger enterprise customers. That's part of how we are able to grow that revenue, profile and ultimately resulting in a stronger customer base. Second is related to your second point, I would say, when we look at our service provider performance, outside of North America, we continue to make good progress on service providers' sustainability.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Within North America, I think we saw a little bit mix where some of the customers are beginning to have a more normal spending pattern, relative to last year, so that's a positive sign. And not all of them are there yet. We still see some of them sort of holding off on CapEx and decisions. So, it it could get better. But it fundamentally, the product revenue growth should be seen as an indicator of customers choosing us to either refresh existing installations or selecting us over competitors to go to new ones.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

And it's a lead indicator of, you know, growth now as well as in the future.

Gray Powell
Managing Director at BTIG

Really helpful. And then just some of the other vendors we covered, they've highlighted like a more back end loaded June quarter as well as strength in July. Can you provide any commentary on how linearity played out this quarter, or just any any insights on what you saw, like, you know, so far in July? Just any any color at all?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Sure. Yeah. So I think I would say we did not see linearity very different in q two than we would like to see and we drive towards. So we do not see sort of an unexpected burst of activity in month three relative to month one and month two. I would say entering the third quarter, we see sort of a phenomenon of customers on track versus what we expect to happen in q three, and not a lot of noise between quarters around orders being pulled in or pushed out.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Right? So we we don't see that as as a major thing, but we certainly don't see any signs in July that make us think any better or worse on the outlook.

Gray Powell
Managing Director at BTIG

Understood. Thank you very much.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thanks. Thank you, Ed.

Operator

Thank you. Your next question is coming from Simon Leopold from Raymond James. Your line is live.

Victor Chiu
Victor Chiu
Equity Research Associate - Telecom & Technology at Raymond James Financial

Hi. Thank you. This is, Victor Chew in for, Simon Leopold. Can you tell us, how we should think about the potential, materiality and contributions from potential Microsoft award that you announced recently?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Yeah. No. Good question, Victor. So I think, you know, the I think, obviously, we don't disclose revenue by customer. And so I would say two two things to probably reflect on.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

One is the objective was, you know, that's a very, very, very important customer for ATN for a long period of time with a deep relationship. And so the objective for us really was to highlight that, you know, we are partnering together long term and continue to be a part of their thinking around not just their current infrastructure on cloud as but also how they think about AI and connectivity. And, obviously, we appreciate the continued partnership there. Right? So it's not it's more reflective of the fact that our solution is highly relevant to a global leader in cloud networking, who obviously expects and runs their network with very, very high expectations.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So that's that's probably the right way to think of it. We did have other customers who are also buying our products that go into their AI infrastructure. The key point to note is, maybe six to nine months ago, our customer interactions were around building data centers that now would support AI. What is evolving and changing is more and more customers in The US, but also outside The US, are thinking of building AI data centers almost as a higher priority than just making sure that their current trajectory is relevant for AI. Right?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So that's that's the importance and relevance of why we announced that, and we appreciate that partnership for long term. So

Victor Chiu
Victor Chiu
Equity Research Associate - Telecom & Technology at Raymond James Financial

Great. That's that's very helpful. And then just one follow-up. Telcos have kind of talked about, you know, raising CapEx, you know, somewhat following the big beautiful bill passage and kind of the improved cash flow that they'll see from there. Does ATN kind of see this trend, you know, trickling down to them and kind of, you know, seeing tailwinds from this over the longer term?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Yeah. No. Good good question, Victor. And I would say, you are correct. So I think there's two factors that go into it.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So, you know, first, I would separate the notion of telcos in North America versus rest of world. So rest of world is kind of stable, not that different. North America, I think the two big factors that affected are, one, these investments are typically based on, you know, what is the interest rate, what is the ROI, and is there consumer sentiment that's positive? And so based on that, I think if we see, you know, speculatively, a little bit of movement on interest rates, certainly, it would probably encourage some of them to to lean in a little harder. And so, of course, for us, intrinsically, what that means is a tailwind relative to them trying to make the business case work.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Right? So that that that would certainly be the case. The second element of it is, I would say, the telco spending pattern, what we have done strategically is there is think of it as maintenance CapEx that they have to do and build new networks and maintain networks, and we obviously participate and benefit when they increase that. But at the same time, what we are doing is continuing to work with them on other parts of their solutions, such as security, which are somewhat decoupled from the CapEx to just build out a new network. Right?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So so as they spend more money on CapEx and build networks or upgrade, that's good. But our strategy is also to continue to improve share of wallet by selling them more security solutions.

Victor Chiu
Victor Chiu
Equity Research Associate - Telecom & Technology at Raymond James Financial

Great. Thank you.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thank you.

Operator

Thank you. And once again, everyone, if you have any questions or comments, please press star then one on your phone. Your next question is coming from Hamed Khorsand from BWS Financial. Your line is live.

Hamed Khorsand
Principal at BWS Financial

Hi, could you elaborate on the comment that was in your press release about the AI global leaders. Are these mainly North American companies? Are they international? I mean, you're using PluralTense, so it's it sounds like you have multiple customers there.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Yeah. No. That's right. Good question, Ahmed. Thank you.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

The so I would say two two parts to it. I think, certainly, some of them are North American players. And as as, obviously, you can imagine, are not all in the same type of company, but a lot of them are in the forefront of building new AI infrastructure. Right? So that is correct.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

It's more than one. And the second part of it is, you know, obviously, part of the reason and motivation for us to talk about some of the new AI products in, like, Interop event in Japan, as well is we have traction in EMEA as well as Japan with large global players who are evolving their plans around how do they take advantage of AI, and not all of them want to depend on three American companies for AI. Right? So so we are partnered with those customers long term, in Asia as well as in Europe.

Hamed Khorsand
Principal at BWS Financial

Okay. And then how much of a benefit did you see from foreign exchange this quarter?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So I think if you you know, you you know this, Hamed, but obviously, for us, the only foreign exchange exposure is with, Japanese yen. Everything else is conducted in US dollars. And, I think this quarter, foreign exchange was a small, very small advantage, like not a lot less than 100 basis point. Lot less.

Hamed Khorsand
Principal at BWS Financial

Okay. Great. Thank you.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

No problem. Thank you, Ahmed.

Operator

Thank you. Your next question is coming from Christian Schwab from Craig Hallum. Your line is live.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Can you great quarter, by the way. But can you help us just again, what what what percentage of revenue is is AI driven? And I'm kind of thinking maybe some of your firewall products to secure AI and large language model inference environments. You know, given the growth that we're seeing there, you know, how long before that kinda drives, you know, double digit plus type of year over year growth for you?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Yep. No. Great. Thank no. Good question.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thank you, Christian. So, two two maybe two points. One is, the growth in our results that we are seeing because of AI relates more to our customers building new data centers that host and manage AI traffic more than anything else, because that's today. Where we are engaged with customers on things like AI firewall and predictive analytics, is in the early phase of where those customers are deciding how to take advantage of AI, what does this mean for them, etcetera. So that will translate into revenue probably in '26 and beyond, but it's really important to be engaged with them on that road map today.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

And the and it's a fair question, and we'll figure out how to maybe explicitly address that in the future. But the subtlety of that question is, if a customer was planning to build four data centers, Now they are saying, we still are going to build four data centers, but change them to be able to accommodate more AI type traffic and AI related security than before. So it's a little bit subtle for us to try to judge what is the differential between if they build regular data centers versus AI data centers. Right? But I understand your question, which is how much of our growth is exposed and driven by AI, and I think we'll figure out a way to quantitatively address that.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Fantastic. No other questions. Thank you.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thank you, Christian. Appreciate it.

Operator

Thank you. Your next question is coming from Michael Romanelli from Mizuho. Your line is live.

Michael Romanelli
Vice President at Mizuho Securities

Yes. Hey guys, thanks for taking the questions and congrats Maybe on the strong just to start here, I believe on last quarter's earnings call, you guys had mentioned that ATN had sort of multiple customers that helped drive the good enterprise revenue growth in Q1. So just looking within the enterprise cohort, can you maybe double click on what you saw this quarter, whether that be from know, a customer vertical and or geo perspective?

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Sure. Yeah. So I think, you know, if you look at our results by geography, first thing you'll notice is, right, if you look at even our enterprise growth, on a DTM basis of 8%, right, which we think on a peer group basis is is still stronger, Our growth in enterprise in North America was significantly higher than 8%. So our, you know, investments have been aligned with growing with large enterprise segment, not small and medium, but large enterprise segment in North America. And our growth reflects effectively that result, right, where even if the global number is eight, North America, particularly than US, number is much higher.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So that's one element of it. The second thing you asked around, you know, what types of customers. So, you know, we obviously, for a company of our size, we need to be a lot more focused, versus going after every enterprise customer. And as I think we have continued to say in the past, our focus is around large enterprise customers who operate very complex networks and are highly concerned about security. And what that means is segments like financials, gaming and technology companies, for example, where you have a lot of users, high risk of security and data breach, and mission critical things such as, you know, latency of your network, which is very important, whether it's from a gaming experience perspective or from the perspective of being able to process trades on Wall Street.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So that's our focus area. That's where we made investments around product, product roadmap, as well as commercially. And that's where, you know, we expect and hope we continue to execute well to build that foundation.

Michael Romanelli
Vice President at Mizuho Securities

Got it. Super helpful. And then I just wanted to touch on ThreatX. I appreciate it's still early days, I was wondering how those conversations are going with both existing prospective customers, how it's been integrated and if you guys think that it could help drive higher net new business, you know, for your cybersecurity portfolio, particularly within the the larger enterprise. Any color here would be helpful. Thanks, guys.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Yeah. No. Michael, thank you. Good good question. So I think absolutely right.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

So I think for us, obviously, with ThreadX, we were able to integrate into our portfolio a very, very strong product, which is particularly recognized in the industry as something that is very easy to download, set up, and run, and in cybersecurity that's a big premium because typically, you know, people are just confused by 20 acronyms thrown at them. So I think the fact that they are easy to set up and run is actually a differentiator, and one of the reasons we really like their solution. The second part is, as you said correctly, as we think of the evolution of network architecture and cybersecurity, what is important is, when the world moves to more of a networking and AI and learning centers, all distributed, it becomes more of an API and VAP security story. And with ThreadX now, we are able to integrate our strength in, you know, DDoS, bot, all those components already, alongside with a contemporary API and WAP solution that helps us not just be aligned today on a product side, but actually be aligned from a road map perspective long term. So, in terms of scale, it's hard to say how important ThreadX is, but in terms of importance to our customers, it is a very, very important part of us being seen as the relevant solution for them, who provides the right mix of networking expertise and security expertise, while being contemporary with their road map on AI as well.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

And sorry, Michael. The second part you asked was, you know, so you are correct. It's pretty early days to to know one way or the other. But our goal is, of course, eventually, we continue to learn more about the customers, the buyer behavior, and the market trend, that we are able to start taking it to more and more of our customers. And it's a process we have started already, and we we think it's promising relative to what we were expecting.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

But, obviously, those cycles typically take six to nine months, so it's hard to declare victory or not. But, certainly, our early indicators are it has clearly helped us access different types of buyers and expand kind of the aperture of what we discuss with customers.

Michael Romanelli
Vice President at Mizuho Securities

Perfect. Thanks for the color.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Yep. Thank you.

Operator

Thank you. That concludes our Q and A session. I'll now hand the conference back to Dhrupat Trivedi for closing remarks. Please go ahead.

Dhrupad Trivedi
Dhrupad Trivedi
President, CEO & Board Chair at A10 Networks

Thank you. Thank you to all of our shareholders for joining us today and for your continued support. We greatly appreciate the deep customer relationships along with our dedicated employee base around the world for working to deliver consistent results. Thank you.

Operator

Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

Executives
Analysts
    • Thomas Baumann
      Vice President at FNK IR
    • Gray Powell
      Managing Director at BTIG
    • Victor Chiu
      Equity Research Associate - Telecom & Technology at Raymond James Financial
    • Hamed Khorsand
      Principal at BWS Financial
    • Christian Schwab
      Senior Research Analyst at Craig-Hallum Capital Group LLC
    • Michael Romanelli
      Vice President at Mizuho Securities
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