A10 Networks, Inc.

Good day, and welcome to the A10 Network's first quarter 2021 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Rob Fink of FNKIR. Please go ahead.

Thank you, Operator, and thank you all for joining us today. This call is being recorded and webcasted live, and it may be accessed for at least 90 days on ATEN Network's investor relation website at atennetworks.com. Hosting the call today are Drew Pettrivedi, ATEN's President and CEO, and CFO Brian Becker. Before we begin, I would like to remind you that shortly after the market closed, 810 issued a press release announcing its first quarter 2021 financial results. Additionally, 810 published a presentation and supplemental trended financial statements. You may access the press release presentation and 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, continued reductions in operating expenses, continued efforts to improve operational efficiency, and focus on driving growth, business optimization, and overall profitability. Our belief that we can continue to build upon customer momentum going forward, our expectations regarding future opportunities, and our ability to execute on those opportunities our expectations for future market growth, and the general growth of our business. The development and performance of our products and the anticipated customer benefits from the use of our products, our expectations and priorities with respect to 5G. These statements are based on current expectations and beliefs as of today, April 27, 2021. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond the company's control, such as the potential impact of COVID-19 pandemic on the business and its operations that could cause actual results to differ materially, and you should not rely on them as predictions for future events. ATEN does not intend to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise. For more detailed description of these risks and uncertainties, please refer to our most recent 10-K. Please note that, 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 they may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found on the press release issued earlier today and on the trended quarterly financial statements posted on the company's website. With all that said, I would now like to turn the call over to Drupad. Drupad, the call is yours.

Thank you, Rob, and thank you all for joining us today. This was another solid quarter for ATEN, particularly in our strategic initiatives to grow recurring revenue and security solutions. Our deferred revenue, which is a good proxy for our recurring revenue, grew by 11.8% year-over-year to $113.2 million. This is contracted revenue which will be recognized in future periods, creating a solid and growing base for us and giving us greater visibility into our future results. Despite the expected timing impacts in Japan, overall revenues grew 2% year-over-year to 54.8 million in line with expectations. Our full year for Japan remains unchanged and positive. Aligned with our strategic goals, our recurring revenue continues to grow faster than our overall revenue. In fact, it increased 8% year-over-year and recurring revenue is becoming an increasingly large portion of our overall revenue mix, supporting our long-term business model. This was our fifth consecutive quarter of organic growth. We have refined our go-to-market strategy, establishing strategic relationships with partners and resellers, streamlining our sales organization around the globe, to focus on the most promising and profitable opportunities. This strategy is enabling us to successfully transition from a provider of commoditized solutions to a strategic integrator providing best-in-class security solutions in several growth-oriented technological areas. The evidence of this is seen in our deferred contracted revenue growth and the progress we have made in selling security solutions. Security solutions as a percent of our revenue mix have been steadily increasing. On a trailing 12-month basis, security solutions represented 57% of our revenue compared to about 50% of revenue for the trailing 12 months ending December 31st, 2020. In particular, we are well positioned in cybersecurity, 5G rollout, and network availability, including DDoS prevention. Each of these areas enjoy broad tailwinds, and our offerings are best in class and differentiated. Additionally, new planned federal infrastructure investments further support these catalysts in the U.S. During the quarter, we had important wins aligned with our strategic goals. A large higher education network in Northern Europe was under heavy cyber attacks. ATEN was able to help them navigate this challenging time with remote students and also provide a much more comprehensive protection solution that includes multiple elements of protection versus point products from our competitors. Our ability to rapidly deploy a new technical solution and leverage our global support footprint were further enablers. The result is that 600,000 subscribers now have a more secure, robust, and available e-learning platform. Also, an online gaming platform in the Americas saw large growth in that traffic after COVID-related shutdowns. This strained their networks in terms of capacity as well as increased risk of cyber attack. ATEN was able to provide them a better price per subscriber, smaller footprint, and more security. This competitive win was against a very large global networking giant. ATEN won this business because our solution ultimately provided better performance with lower capex and lower opex for the customers. The customer plans to deploy the same solution to other sites in the future. The inherent leverage of our business model is enabling us to grow our profitability faster than we grow our revenue. Due in part to continued disciplined execution, we grew our adjusted EBITDA by 80.9% and our EPS by 135%. compared to the first quarter of last year, both ahead of expectations. Our first quarter adjusted EBITDA was $13 million, representing a solid start to the new year. At the same time, we have increased our investments in areas that support accelerated growth while maintaining our current financial goals. With that, I'd like to turn the call over to Brian for a detailed review of the fourth quarter and full year. Brian?