8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________

FORM 8-K

____________________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

February 9, 2021

Date of Report (Date of earliest event reported)

____________________________________________________________________________

A10 NETWORKS, INC.

(Exact name of the registrant as specified in its charter)

____________________________________________________________________________

Delaware	001-36343	20-1446869
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

2300 Orchard Parkway

San Jose, CA 95131

(Address of principal executive offices, including zip code)

(408) 325-8668

(Name and telephone number, including area code, of the person to contact in connection with this report)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

____________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.00001 par value per share	ATEN	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02    Results of Operations and Financial Condition

On February 9, 2021, A10 Networks, Inc. (the “Company”) issued a press release regarding financial results for the quarter and full fiscal year ended December 31, 2020. The Company also posted on its website (www.a10networks.com) slides regarding such financial results. Copies of the press release and slides are attached as Exhibits 99.1 and 99.2, respectively, and the information in Exhibits 99.1 and 99.2 are incorporated herein by reference.

The information in Item 2.02 and Item 9.01 in this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit Description

99.1 Press release dated February 9, 2021.

99.2 Slides of A10 Networks, Inc. dated February 9, 2021, regarding financiala10exhibit992v6.htmresults of the fourth quarter ended December 31, 2020.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 9, 2021

A10 NETWORKS, INC.
By: /s/ Brian Becker
Brian Becker
Interim Chief Financial Officer (Principal Accounting and Financial Officer)

Document

EXHIBIT 99.1

A10 Networks Reports Record GAAP Net Income of $7.8 Million for Fourth Quarter of 2020

Fourth Quarter GAAP EPS of $0.10, non-GAAP EPS of $0.18 and Full Year GAAP EPS of $0.22, non-GAAP EPS of $0.44;

Full-Year 2020 Revenue Growth of 6% and Fourth Quarter Cash Flow from Operations of $16.8 Million

SAN JOSE, Calif., February 9, 2021 -- A10 Networks (NYSE: ATEN), a leading provider of secure application services and solutions, today announced financial results for its fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Financial Summary

•Revenue of $62.7 million, up 4% year-over-year.

•GAAP gross margin of 78.5%; non-GAAP gross margin of 79.6%.

•GAAP operating expenses of $41.4 million, non-GAAP operating expenses of $36.0 million.

•Record GAAP net income of $7.8 million, or $0.10 per share, compared with $51,000, or $0.00 per share in the fourth quarter of 2019.

•Record non-GAAP net income of $13.9 million, or $0.18 per share compared with non-GAAP net income of $7.8 million, or $0.10 per share in the fourth quarter of 2019.

•Record Adjusted EBITDA of $16.1 million, an improvement of $6.1 million compared with $10.0 million in the fourth quarter of 2019.

Year 2020 Financial Summary

•Revenue of $225.5 million, compared with $212.6 million in 2019.

•GAAP gross margin of 77.8%; non-GAAP gross margin of 78.6%.

•GAAP operating margin of 7.9%; non-GAAP operating margin of 15.6%.

•GAAP net income of $17.8 million, or $0.22 per share, compared with a GAAP net loss of $17.8 million, or $0.23 per share in 2019, non-GAAP net income of $35.3 million, or $0.44 per share.

•Adjusted EBITDA of $45.6 million, an improvement of $33.9 million compared with $11.6 million in 2019.

•Ended the year with $158.1 million in cash and cash equivalents, after $32.5 million of total stock repurchase activity, including $19.2 million as part of the Company’s $50 million share repurchase plan, compared to $129.9 million dollars as of December 31, 2019.

A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

“This was a dynamic year for A10, as we increased full-year earnings by $36 million compared to last year’s $18 million loss while successfully navigating a challenging economy,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “Our solutions-based sales focus and market strategy also enabled us to deliver 6% year-over-year growth, versus negative organic growth last year, and our focus on execution and cost discipline drove $55.3 million in cash from operations, funding a sizable stock buyback while preserving the strong balance sheet position to navigate uncertain markets. Our strategic focus is to drive our portfolio and continue to invest in faster growth opportunities like cybersecurity, 5G and cloud - leveraging our historic leadership position in those markets.”

“The operational and commercial foundation provide us with the ability to further build our recurring revenue in line with our customers’ preference and their business priorities,” continued Trivedi. “We expect this portion to grow faster than our overall revenue growth. We enjoy broad and sustainable industry tailwinds, particularly in the areas of 5G, multi-cloud and cybersecurity, bolstered by our industry leading solutions for these growing areas of focus. A10 enters 2021 in a strong position, with leading products, a proven team, and a solid balance sheet. We plan to leverage this strong position to increase our focus on portfolio management, with the goal of increasing our recurring revenue.”

Conference Call Information

A10 Networks will host a conference call today at 4:30 p.m. Eastern time / 1:30 p.m. Pacific time for analysts and investors to discuss its fourth quarter and full year 2020 financial results. Open to the public, interested parties may access the conference call by dialing 1-844-792-3728 or 1-412-317-5105. A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Networks’ website at investors.a10networks.com. The webcast will be archived for at least 90 days. A telephonic replay of the conference call will be available two hours after the call and will run for seven business days and may be accessed by dialing 1-877-344-7529 or 1-412-317-0088 and entering the passcode 10151378. A presentation with management’s prepared remarks and supplemental financial information will be posted to the website following the issuance of the company’s fourth quarter and full year 2020 results press release after U.S. markets close on Tuesday, February 9, 2021. These materials will be accessible from the “Investor Relations” section of A10 Network’s website at investors.a10networks.com.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding our strategic focus, portfolio management, investment in growth opportunities, revenue growth, including recurring revenue, industry tailwinds and our positioning. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied

by the forward-looking statements. Factors that may cause actual results to differ include the impact of the COVID-19 pandemic, including public health requirements in response thereto, on our business and operations, which is evolving and beyond our control, and its impact on the timing of customer orders and product shipments; members of our management team or a significant number of our global employee base becoming ill with COVID-19; changes in government regulations and mandates to address COVID-19 that may adversely impact our ability to continue to operate without disruption; a significant decline in global macroeconomic conditions that have an adverse impact on our business and financial results; challenges to our infrastructure because of the number of employees working from remote locations; business interruptions related to our supply chain; our ability to manage our business and expenses if customers cancel or delay orders; execution risks related to closing key deals and improving our execution; the continued market adoption of our products; our ability to successfully anticipate market needs and opportunities; our timely development of new products and features; our ability to achieve or maintain profitability; any loss or delay of expected purchases by our largest end-customers; our ability to maintain or improve our competitive position; competitive and execution risks related to cloud-based computing trends; our ability to attract and retain new end-customers and our largest end-consumers; our ability to maintain and enhance our brand and reputation, changes demanded by our customers in the deployment and payment model for our products; continued growth in markets relating to network security; the success of any future acquisitions or investments in complementary companies, products, services or technologies; the ability of our sales team to execute well; our ability to shorten our close cycles; the ability of our channel partners to sell our products; variations in product mix or geographic locations of our sales; risks associated with our presence in international markets; weaknesses or deficiencies in our internal control over financial reporting; our ability to timely file periodic reports required to be filed under the Securities Exchange Act of 1934; and other risks that are described in “Risk Factors” in our periodic filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Commission on March 10, 2020. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP net income (loss), non-GAAP net income (loss) per basic and diluted share, non-GAAP gross profit and gross margin, non-GAAP operating income (loss) and operating margin, non-GAAP operating expenses, and Adjusted EBITDA. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies.

A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the company's management for that purpose.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

We define non-GAAP net income as our GAAP net income (loss) excluding: (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition, (iii) non-recurring expenses associated with the litigation settlement and internal investigation expense (recovery), (iv) restructuring expense and related tax, and (v) non-recurring facilities expense. We define non-GAAP net income per basic and diluted share as our non-GAAP net income (loss) divided by our basic and diluted weighted-average shares outstanding.  We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, and (ii) global portfolio rationalization expense. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating income (loss) as our GAAP income (loss) from operations excluding (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition, (iii) non-recurring expenses associated with the litigation settlement and internal investigation expense (recovery), (iv) restructuring expense, (v) global portfolio rationalization expense, and (vi) non-recurring facilities expense. We define non-GAAP operating margin as our non-GAAP operating income (loss) divided by our GAAP revenue. We define non-GAAP operating expenses as our GAAP operating expenses excluding (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition, (iii) non-recurring expenses associated with the litigation settlement and internal investigation expense (recovery), (iv) restructuring expense, (v) global portfolio rationalization expense, and (vi) non-recurring facilities expense. We define Adjusted EBITDA as our GAAP net income (loss) excluding (i) interest expense, (ii) interest income and other (income) expense, net, (iii) depreciation and amortization expense, (iv) provision for income taxes, (v) stock-based compensation and related payroll tax, (vi) litigation settlement and internal investigation expense (recovery), (vii) restructuring expense, (viii) global portfolio rationalization expense, and (ix) non-recurring facilities expense.

We have included our non-GAAP net income (loss), non-GAAP gross profit and gross margin, non-GAAP operating income (loss) and operating margin, non-GAAP operating expenses and Adjusted EBITDA in this press release. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results.

About A10 Networks

A10 Networks (NYSE: ATEN) provides 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. We deliver better business outcomes that support investment protection, new business models and help future-proof infrastructures, empowering our customers to

provide the most secure and available digital experience. Founded in 2004, A10 Networks is based in San Jose, Calif. and serves customers globally. For more information, visit https://www.a10networks.com/ and follow us @A10Networks.

The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in the United States and other countries. All other trademarks are the property of their respective owners.

Investor Contact:

Rob Fink

FNK IR

646.809.4048

aten@fnkir.com

Brian Becker

Interim Chief Financial Officer

investors@a10networks.com

Source: A10 Networks, Inc.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts, on a GAAP Basis)

	Three Months Ended<br><br>December 31,				Year Ended<br><br>December 31,
	2020		2019		2020		2019
Revenue:
Products	$	37,738	$	36,853	$	129,876	$	121,920
Services	24,917		23,463		95,651		90,708
Total revenue	62,655		60,316		225,527		212,628
Cost of revenue:
Products	8,014		8,301		29,109		29,816
Services	5,447		5,139		21,039		19,065
Total cost of revenue	13,461		13,440		50,148		48,881
Gross profit	49,194		46,876		175,379		163,747
Operating expenses:
Sales and marketing	20,079		22,618		77,732		92,783
Research and development	15,604		15,257		58,063		61,824
General and administrative	5,725		6,393		21,851		23,704
Restructuring expense	—		2,530		—		2,530
Total operating expenses	41,408		46,798		157,646		180,841
Income (loss) from operations	7,786		78		17,733		(17,094)
Non-operating income (expense):
Interest expense	—		(15)		(1)		(237)
Interest and other income, net	469		522		1,407		919
Total non-operating income, net	469		507		1,406		682
Income (loss) before provision for income taxes	8,255		585		19,139		(16,412)
Provision for income taxes	414		534		1,323		1,407
Net income (loss)	$	7,841	$	51	$	17,816	$	(17,819)
Net income (loss) per share:
Basic	$	0.10	$	—	$	0.23	$	(0.23)
Diluted	$	0.10	$	—	$	0.22	$	(0.23)
Weighted-average shares used in computing net income (loss) per share:
Basic	76,638		77,147		77,776		76,080
Diluted	78,775		79,248		80,019		76,080

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)

(unaudited, in thousands, except per share amounts)

	Three Months Ended<br><br>December 31,				Year EndedDecember 31,
	2020		2019		2020		2019
GAAP net income (loss)	$	7,841	$	51			$	(17,819)
Non-GAAP adjustments:
Stock-based compensation and related payroll tax		2,947		4,332				16,790
Amortization expense related to acquisition		252		253				1,012
Litigation and investigation expense (recovery)		—		43				(1,066)
Non-recurring facilities expense		—		425				425
Global portfolio rationalization expense		2,884		—				—
Restructuring expense and related taxes		—		2,676				2,676
Non-GAAP net income	$	13,924	$	7,780		35,353	$	2,018
GAAP net income per share:
Basic	$	0.10	$	—		0.23	$	(0.23)
Diluted	$	0.10	$	—		0.22	$	(0.23)
Non-GAAP adjustments:
Stock-based compensation and related payroll tax		0.04		0.05		0.16		0.21
Amortization expense related to acquisition		—		—		0.01		0.01
Litigation and investigation expense (recovery)		—		—		—		(0.01)
Non-recurring facilities expense		—		0.01		0.01		0.01
Global portfolio rationalization expense		0.04		—		0.04		—
Restructuring expense and related taxes		—		0.03		—		0.03
Non-GAAP net income (loss) per share:
Basic	$	0.18	$	0.10		0.45	$	0.03
Diluted	$	0.18	$	0.10		0.44	$	0.03
Weighted-average shares used in computing non-GAAP net income per share:
Basic		76,638		77,147		77,776		76,080
Diluted		78,775		79,248		80,019		78,487

All values are in US Dollars.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except par value, on a GAAP Basis)

	December 31, 2020		December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	83,281	$	45,742
Marketable securities	74,851		84,180
Accounts receivable, net of allowances of $41 and $52, respectively	51,051		53,566
Inventory	20,730		22,384
Prepaid expenses and other current assets	12,390		15,067
Total current assets	242,303		220,939
Property and equipment, net	7,888		7,656
Goodwill	1,307		1,307
Intangible assets, net	862		2,305
Other non-current assets	38,451		41,846
Total assets	$	290,811	$	274,053
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,851	$	7,592
Accrued liabilities	36,930		27,756
Deferred revenue	65,999		62,233
Total current liabilities	107,780		97,581
Deferred revenue, non-current	42,700		38,931
Other non-current liabilities	24,357		28,754
Total liabilities	174,837		165,266
Commitments and contingencies
Stockholders' equity:
Common stock, $0.00001 par value: 500,000 shares authorized; 76,346 and 77,580 shares issued and outstanding, respectively	1		1
Treasury stock	(32,540)		—
Additional paid-in-capital	420,664		398,600
Accumulated other comprehensive income	98		251
Accumulated deficit	(272,249)		(290,065)
Total stockholders' equity	115,974		108,787
Total liabilities and stockholders' equity	$	290,811	$	274,053

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, on a GAAP Basis)

	Year Ended<br><br>December 31,
	2020		2019
Cash flows from operating activities:
Net income (loss)	$	17,816	$	(17,819)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	11,303		10,028
Stock-based compensation	12,310		16,529
Other non-cash items	1,066		(343)
Changes in operating assets and liabilities:
Accounts receivable	2,346		599
Inventory	543		(5,648)
Prepaid expenses and other assets	1,141		(452)
Accounts payable	(2,683)		(621)
Accrued and other liabilities	3,909		(5,897)
Deferred revenue	7,535		3,198
Net cash provided by (used in) operating activities	55,286		(426)
Cash flows from investing activities:
Proceeds from sales of marketable securities	9,051		32,200
Proceeds from maturities of marketable securities	57,707		43,525
Purchases of marketable securities	(57,992)		(71,636)
Purchases of property and equipment	(3,564)		(4,340)
Net cash provided by (used in) investing activities	5,202		(251)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee equity incentive plans	9,591		5,798
Repurchase of common stock	(32,540)		—
Net cash provided by (used in) financing activities	(22,949)		5,798
Net increase in cash and cash equivalents	37,539		5,121
Cash and cash equivalents—beginning of period	$	45,742	$	40,621
Cash and cash equivalents—end of period	$	83,281	$	45,742

A10 NETWORKS, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

(unaudited, in thousands, except percentages)

	Three Months Ended<br><br>December 31,						Year Ended<br><br>December 31,
	2020			2019			2020			2019
GAAP gross profit	$	49,194		$	46,876		$	175,379		$	163,747
GAAP gross margin		78.5	%		77.7	%		77.8	%		77.0	%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax		385			466			1,641			1,592
Global portfolio rationalization expense		307			—			307			—
Non-GAAP gross profit	$	49,886		$	47,342		$	177,327		$	165,339
Non-GAAP gross margin		79.6	%		78.5	%		78.6	%		77.8	%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES TO

TO NON-GAAP TOTAL OPERATING EXPENSES

(unaudited, in thousands)

	Three Months Ended<br><br>December 31,				Year Ended<br><br>December 31,
	2020		2019		2020		2019
GAAP total operating expenses	$	41,408	$	46,798	$	157,646	$	180,841
Non-GAAP adjustments:
Stock-based compensation and related payroll tax		(2,562)		(3,866)		(11,176)		(15,197)
Amortization expense related to acquisition		(252)		(253)		(1,011)		(1,012)
Litigation and investigation (expense) recovery		—		(43)		(30)		1,066
Non-recurring facilities expense		—		(425)		(795)		(425)
Global portfolio rationalization expense		(2,577)		—		(2,577)		—
Restructuring expense		—		(2,530)		—		(2,530)
Non-GAAP total operating expenses	$	36,017	$	39,681	$	142,057	$	162,743

A10 NETWORKS, INC.

RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS

TO NON-GAAP OPERATING INCOME (LOSS)

(unaudited, in thousands, except percentages)

	Three Months Ended<br><br>December 31,						Year Ended<br><br>December 31,
	2020			2019			2020			2019
GAAP income (loss) from operations	$	7,786		$	78		$	17,733		$	(17,094)
GAAP operating margin		12.4	%		0.1	%		7.9	%		(8.0	)%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax		2,947			4,332			12,817			16,790
Amortization expense related to acquisition		252			253			1,011			1,012
Litigation and investigation expense (recovery)		—			43			30			(1,066)
Non-recurring facilities expense		—			425			795			425
Global portfolio rationalization expense		2,884			—			2,884			—
Restructuring expense		—			2,530			—			2,530
Non-GAAP operating income	$	13,869		$	7,661		$	35,270		$	2,597
Non-GAAP operating margin		22.1	%		12.7	%		15.6	%		1.2	%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(unaudited, in thousands)

	Three Months Ended<br><br>December 31,				Year Ended<br><br>December 31,
	2020		2019		2020		2019
GAAP net income (loss)	$	7,841	$	51	$	17,816	$	(17,819)
Exclude: Interest expense		—		15		1		237
Exclude: Interest and other income, net	(469)		(522)		(1,407)		(919)
Exclude: Depreciation and amortization expense	2,531		2,595		11,303		10,028
Exclude: Provision for income taxes	414		534		1,323		1,407
EBITDA	10,317		2,673		29,036		(7,066)
Exclude: Stock-based compensation and related payroll tax	2,947		4,332		12,817		16,790
Exclude: Litigation and investigation expense (recovery)	—		43		30		(1,066)
Exclude: Non-recurring facilities expense	—		425		795		425
Exclude: Global portfolio rationalization expense	2,884		—		2,884		—
Exclude: Restructuring expense	—		2,530		—		2,530
Adjusted EBITDA	$	16,148	$	10,003	$	45,562	$	11,613

a10exhibit992v6

Always Secure. Always Available. Q4 and FY 2020 Financial Results & Commentary February 9, 2021

---

2 Cautionary Statements & Disclosures This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions, including statements regardingour positioning, global business environment, strategy, including portfolio management, recurring revenue, growth and profitabil ity. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results to differ materially from those anticipated or implied by our forward-looking statements. These factors include, but are not l imited to, the impact of the COVID-19 pandemic on our business, on the business of our customers and suppliers, and on the global economy in general, execution risks related to closing key deals and improving our execution, successfully executing our strategies, market adoption of our products, successfully anticipating market needs and opportunities, timely development of new products and features, achieving or maintaining profitability, loss or delay of expected purchases,our ability to maintain or improve our competitive position; competitive and execution risks related to cloud-based computing trends, attracting and retaining new end-customers, maintaining and enhancing our brand and reputation, changes demanded by our customers in the deployment and payment model for our products, growth in markets relating to network security, the success of any future acquisitions or investments, the success of our partnerships with technology providers, the abil ity of our sales team to execute well, our abil ity to shorten our close cycle, the abil ity of our channel partners tosell our products, variations in product mix or geographic locations of our sales, our presence in international markets, and other factors described in our quarterly reports on Form 10-Q, annual reports on Form 10-K and other fi l ings made with the Securities and Exchange Commission, to which your attention is directed. The forward-looking statements included in this presentation are based on current expectations and beliefs as of February 9, 2021 only. We do not intend to update this information contained in the forward-looking statements, except as required by law. This presentation and the accompanying oral presentation also include certain non-GAAP financial measures including Non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP operating margin, Adjusted EBITDA and Non-GAAP EPS. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titles measures presented by other companies. A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the company’s management for that purpose. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We define non-GAAP net income as our GAAP net income (loss) excluding: (i) stock-based compensation and related payroll tax, (i i) amortization expense related to acquisition, (i i i) non-recurring expenses associated with the litigation settlement and internal investigation expense (recovery), (iv) restructuring expense and related tax, and (v) non-recurring facil ity expense. We define non-GAAP net income per basic and diluted share as our non-GAAP net income (loss) divided by our basic and diluted weighted-average shares outstanding. We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, and (i i) global portfolio rationalization expense. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating income (loss) as our GAAP income (loss) from operations excluding (i) stock-based compensation and related payroll tax, (i i) amortization expense related to acquisition, (i i i) non-recurring expenses associated with the litigation settlement and internal investigation expense (recover), (iv) restructuring expense, (v) global portfolio rationalization expense, and (vi) non-recurring facilities expense. We define non-GAAP operating margin as our non-GAAP operating income (loss) divided by our GAAP revenue. We define non-GAAP operating expenses as our GAAP operating expenses excluding (i) stock-based compensation and related payroll tax, (i i) amortization expense related to acquisition, (i ii) non- recurring expenses associated with the l itigation settlement and internal investigation expense (recovery), (iv) restructuring expense, (v) global portfolio rationalization expense, and (vi) non-recurring facil ities expense. We define Adjusted EBITDA as our GAAP net income (loss) excluding (i) interest expense, (i i) interest income and other (income) expense, net, (i i i) depreciation and amortization expense, (iv) provision for income taxes, (v) stock-based compensation and related payroll tax, (vi) l itigation settlement and internal investigation ex pense (recovery), (vii) restructuring expense, (vii i) global portfolio rationalization expense, and (ix) non-recurring facility expense. A reconcil iation between GAAP and non-GAAP financial measures can be found in the appendix to this document and in the accompany financial results press release.

---

3 Agenda • Introduction • 4Q Overview • 4Q Financial Performance • FY2020 Financial Performance

---

4 A10 at a Glance Enabling a Secure and Available Digital World IoT Proliferation Shift to Cloud 5G Deployment Operational Complexity Security Threats Protect investments f or enterprises and s e rvice providers Support seamless migration to the cloud and cloud- native with hybrid solutions Se cure multi- generational ne tworks through the transition to 5G and cloud Protect networks f rom cyberattacks that threaten network availability Simplify IT ops with connected intel, automation, ML and DevOps/ SecOps tools Provide always available application de livery and security on-prem and in the cloud $225M 2020 REVENUE 78.6% 2020 NON-GAAP GROSS MARGIN $158M CASH & MARKETABLE SECURITIES AS OF 12/31 $109M DEFERRED REV AS OF 12/31 7,800+ CUSTOMERS $0 DEBT See Appendix for reconciliation to most comparable GAAP financial measures.

---

5 Q4’20: Building on our Successes • Continued, sustained growth • Fourth consecutive quarter of 4%+ revenue growth • Record profitability • Annual operating expenses reduced by approximately $20.6 million • Reflecting 13% reduction • Q4 operating income improved by 81% ($6.2M) YoY • Adjusted EBITDA improved by 61% ($6.1M) YoY • Continued execution in a challenging economic environment • Year-over-Year growth for: • Revenue • Net Income • Adjusted EBITDA • Diluted EPS Operating Income & Adjusted EBITDA presented is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparableGAAP financial measures.

---

6 Near-term Expectations • Continue to effectively manage the business • Well-equipped to mitigate disruption • Sustainable win rate with lower visibility of order patterns in the next 90-day period related to changing global business environment • Increasing focus on portfolio management • Deliver integrated solutions that drive established strengths in cybersecurity, 5G, network availability • Grow recurring revenue 2X faster than overall revenue growth • Guidance • Targeting sustainable and consistent growth with expectation to maintain GAAP profitability going forward

---

7 Quarterly Recurring Revenue $20.3 $20.9 $21.8 $21.7 $21.1 $21.2 $21.7 $22.4 $22.2 $22.5 $23.6 $24.1 $0.7 $0.8 $0.8 $2.1 $1.3 $1.4 $1.0 $1.2 $1.1 $2.2 $3.9 $3.3 $0.4 $0.4 $0.4 $0.6 $0.5 $0.8 $0.7 $1.2 $0.4 $0.8 $0.7 $1.0 $21.4 $22.1 $23.0 $24.4 $22.9 $23.4 $23.4 $24.8 $23.7 $25.5 $28.2 $28.4 Q1'18 Q2'18 Q3'18 Q418 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Exiting 2021 Support Subscription Security Subscription Non-Security $120.0

---

8 Quarterly Revenue & Non-GAAP Operating Income Operating Income is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparable GAAP financial measures. $60.3 $53.8 $52.5 $56.6 $62.7 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Revenue, $ Millions $7.8 $4.0 $7.1 $10.3 $13.9 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Non-GAAP Operating Income, $ Millions $60.3 $62.7 Q4'19 Q4'20 Revenue, $ Millions $7.8 $13.9 Q4'19 Q4'20 Non-GAAP Operating Income, $ Millions

---

9 60% 40% 4Q 2020 $62.7 million 64% 65% 58% 60% 60% 36% 35% 42% 40% 40% Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 $Millions Service and Cloud Providers Enterprise Quarterly Revenue by Customer Vertical

---

10 Quarterly Revenue by Geography 46% 47% 46% 39% 43% 27% 33% 24% 32% 30% 15% 9% 15% 15% 13% 12% 11% 15% 14% 14% Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 $Millions Americas Japan APAC ex Japan EMEA 43% 30% 13% 14% 4Q 2020 $62.7 million

---

11 Annual Revenue & Non-GAAP Operating Income Operating Income is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparable GAAP financial measures. $212.6 $225.5 FY2019 FY2020 Revenue, $ Millions $2.0 $35.3 FY2019 FY2020 Non-GAAP Operating Income, $ Millions Up 6% Up 14X

---

12 57% 58% 61% 43% 42% 39% FY2018 FY2019 FY2020 $Millions Service and Cloud Providers Enterprise Annual Revenue by Customer Vertical 61% 39% FY2020 $225.5 million

---

13 Annual Revenue by Geography 48% 42% 44% 24% 28% 30% 16% 17% 13% 12% 13% 13% FY2018 FY2019 FY2020 $Millions Americas Japan APAC ex Japan EMEA 44% 30% 13% 13% FY2020 $225.5 million

---

159.1 158.1 0.2 19.2 16.8 2.8 - 50.0 100.0 150.0 200.0 250.0 Cash & Cash Equivalents September 30, 2020 Operations Investing Financing Share Repurchases Cash & Cash Equivalents December 31, 2020 Cash Flows Q4-20 Total Used Provided 130 158 33 55 5 10 - 50 100 150 200 250 Cash & Cash Equivalents December 31, 2019 Operations Investing Financing Share Repurchases Cash & Cash Equivalents December 31, 2020 Cash Flows FY2020 Total Used Provided (in millions) (in millions) 2.7M shares purchased @ an avg price of $7.11 per share. Quarterly and Full-Year Cash Flows

---

15 Financial Performance Trends Numbers may not sum due to rounding. Please refer to the supplemental financials posted in the “Investor Relations” section of the A10 Networks website at investors.a10networks.com Gross Margin %, Operating Margin %, Adjusted EBITDA and EPS are Non-GAAP Financial Measures. See Appendix for reconciliation to most comparable GAAP financial measures. $ Millions (except EPS) 1Q'19 2Q'19 Q3’19 4Q'19 FY 2019 1Q’20 2Q’20 3Q’20 4Q’20 FY2020 Revenue $50.3 $49.2 $52.8 $60.3 $212.6 $53.8 $52.5 $56.6 $62.7 $225.5 Non-GAAP Gross Margin % 76.3% 78.0% 78.1% 78.5% 77.8% 78.3% 78.8% 77.6% 79.6% 78.6% Non-GAAP Operating Margin % (11.8%) (1.9%) 3.5% 12.7% 1.2% 7.7% 13.8% 17.8% 22.1% 15.6% Adjusted EBITDA (non-GAAP) ($3.7) $1.3 $4.0 $10.0 $11.6 $7.2 $9.8 $12.5 $16.1 $45.6 Non-GAAP EPS ($0.10) $0.00 $0.02 $0.10 $0.03 $0.05 $0.09 $0.13 $0.18 $0.44 Ending Cash & Marketable Securities $122.8 $119.3 $122.6 $129.9 $129.9 $142.9 $143.4 $159.1 $158.1 $158.1

---

16 Appendix

---

17 GAAP to Non-GAAP - Gross Margin and EPS Numbers may not sum due to rounding. EPS data i s presented on a basic and diluted basis. Please refer to the supplemental f inancials posted the “Investor Relations” section of the A10 Networks website at investors.a10networks.com. % of Revenue except EPS Q1'19 Q2'19 Q3'19 Q4'19 FY 2019 Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Gross Margin % - GAAP 75.6% 77.1% 77.4% 77.7% 77.0% 77.4% 78.2% 76.8% 78.5% 77.8% Stock-based compensation 0.6% 1.0% 0.6% 0.8% 0.7% 0.9% 0.6% 0.8% 0.6% 0.7% Global portfolio rationalization expense 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.1% Non-reccuring facilities expense 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Gross Margin % - Non-GAAP 76.3% 78.0% 78.1% 78.5% 77.8% 78.3% 78.8% 77.6% 79.6% 78.6% EPS $ - GAAP (0.16)$ (0.08)$ 0.00$ 0.00$ (0.23)$ (0.00)$ 0.05$ 0.08$ 0.10$ 0.22$ Stock-based compensation 0.05 0.07 0.04 0.05 0.21 0.04 0.04 0.05 0.04 0.16 Litigation and Investigation expense (benefit) 0.01 0.00 (0.03) 0.00 (0.01) 0.00 - - - 0.00 Amortization expense related to acquisition 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.01 Global portfolio rationalization expense - - - - - - - - 0.04 0.04 Restructuring expense, and related tax - - - 0.03 0.03 - - - - - Non-recurring facilities expense - - - 0.01 0.01 0.01 - - - 0.01 EPS $ - Non-GAAP (0.10)$ 0.00$ 0.02$ 0.10$ 0.03$ 0.05$ 0.09$ 0.13$ 0.18$ 0.44$

---

18 GAAP to Non-GAAP - Operating Income (Loss) Numbers may not sum due to rounding. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.a10networks.com. $ Millions Q1'19 Q2'19 Q3'19 Q4'19 FY 2019 Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 Income (loss) from operations $ - GAAP (11.0)$ (6.4)$ 0.2$ 0.1$ (17.1)$ (0.2)$ 3.9$ 6.2$ 7.8$ 17.7$ Stock-based compensation 3.9 5.0 3.5 4.3 16.8 3.2 3.1 3.6 2.9 12.8 Litigation and Investigation expense (benefit) 0.9 0.2 (2.2) 0.0 (1.1) 0.0 - - - 0.0 Amortization expense related to acquisition 0.3 0.3 0.3 0.3 1.0 0.3 0.3 0.3 0.3 1.0 Global portfolio rationalization expense - - - - - - - - 2.9 2.9 Restructuring expense - - - 2.5 2.5 - - - - - Non-recurring facilities expense - - - 0.4 0.4 0.8 - - - 0.8 Income (loss) from operations $ - Non-GAAP (5.9)$ (0.9)$ 1.8$ 7.7$ 2.6$ 4.1$ 7.2$ 10.0$ 13.9$ 35.3$ % of Revenue Income (loss) from operations % - GAAP (21.8)% (13.1)% 0.4 % 0.1 % (8.0)% (0.4)% 7.5 % 11.0 % 12.4 % 7.9 % Stock-based compensation 7.7 % 10.3 % 6.6 % 7.2 % 7.9 % 6.0 % 5.9 % 6.3 % 4.7 % 5.7 % Litigation and Investigation expense (benefit) 1.7 % 0.4 % (4.1)% 0.1 % (0.5)% 0.1 % —% —% —% 0.0 % Amortization expense related to acquisition 0.5 % 0.5 % 0.5 % 0.4 % 0.5 % 0.5 % 0.5 % 0.4 % 0.4 % 0.4 % Global portfolio rationalization expense —% —% —% —% —% —% —% —% 4.6 % 1.3 % Restructuring expense —% —% —% 4.2 % 1.2 % —% —% —% —% —% Non-recurring facilities expense —% —% —% 0.7 % 0.2 % 1.5 % —% —% —% 0.4 % Income (loss) from operations % - Non-GAAP (11.8)% (1.9)% 3.5 % 12.7 % 1.2 % 7.7 % 13.8 % 17.8 % 22.1 % 15.6 %

---

19 GAAP to Non-GAAP - Adjusted EBITDA Numbers may not sum due to rounding. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.a10networks.com. $ Millions Q1'19 Q2'19 Q3'19 Q4'19 FY 2019 Q1'20 Q2'20 Q3'20 Q4'20 FY 2020 GAAP net income (loss) (12.3)$ (5.8)$ 0.2$ 0.1$ (17.8)$ (0.3)$ 3.8$ 6.5$ 7.8$ 17.8$ Exclude: Interest expense 0.2 0.0 0.0 0.0 0.2 - 0.0 - - 0.0 Exclude: Interest income and other (income) expense, net 0.6 (0.8) (0.3) (0.5) (0.9) (0.2) (0.2) (0.5) (0.5) (1.4) Exclude: Depreciation & amortization expense 2.4 2.5 2.5 2.6 10.0 3.3 2.8 2.7 2.5 11.3 Exclude: Provision for income taxes 0.5 0.1 0.3 0.5 1.4 0.3 0.3 0.3 0.4 1.3 EBITDA (8.5) (3.9) 2.7 2.7 (7.1) 3.1 6.7 8.9 10.3 29.0 Exclude: Stock-based compensation 3.9 5.0 3.5 4.3 16.8 3.2 3.1 3.6 2.9 12.8 Exclude: Litigation settlement and investigation expense 0.9 0.2 (2.2) 0.0 (1.1) 0.0 - - - 0.0 Exclude: Global portfolio rationalization expense - - - - - - - - 2.9 2.9 Exclude: Restructuring expense - - - 2.5 2.5 - - - - - Exclude: Non-recurring facilities expense - - - 0.4 0.4 0.8 - - - 0.8 Adjusted EBITDA - Non-GAAP (3.7)$ 1.3$ 4.0$ 10.0$ 11.6$ 7.2$ 9.8$ 12.5$ 16.1$ 45.6$

---

Thank You Always Secure. Always Available. Investors@a10networks.com

---