A10 Networks, Inc.

Good day and welcome to the ATEN Network's Q2 2021 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star followed by 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 has been 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 may be accessed for at least 90 days on the ATEN network website. Members of ATEN management team joining me today are Drew Petrovedi, President and CEO, and CFO Brian Becker. Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its second quarter 2021 financial results. Additionally, A10 published a presentation and supplemental trended financial statements. You may access the press release, the presentation, and the 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 their projections, future operating results, including as to revenue, our continued efforts to improve operational efficiency, our 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, including in Japan, the development and performance of our products, and anticipated customer benefits from use of our products, our expectations and priorities with respect to 5G. These statements are based on current expectations and beliefs as of today, July 27, 2021. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, such as the potential impact of COVID-19 on the business and operations that could cause actual results to differ materially, and you should not rely on them as predictions of future results. 810 does not intend to update information contained in forward-looking statements, whether as a result of new information, future events, or otherwise. For a more detailed description of these risks and uncertainties, please refer to the company's most recent 10-K. 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. With all that said, I'd like to turn the call over to Drupad Trivedi, President and CEO of A10 Networks. Drupad.

Thank you, Rob, and thank you all for joining us today. The second quarter was a strong quarter for A10. validating the changes we have made in our strategy while driving operational improvements. We delivered 12.7% year-over-year growth in the quarter, resulting in 7% growth for the first half of 2021 and reinforcing our confidence for the year. I am encouraged by all of our trends, including our improving revenue mix our customer diversification, and market traction for our strategic product initiatives. As previously mentioned, we have made changes last year to improve commercial execution in the Americas, which is an important growth opportunity. Those investments are now delivering results as revenues in the Americas, which includes Latin America, increased 20% year-over-year in Q2. The quality of our sales funnel and customer opportunities give us confidence that this is not a short-term fluctuation in buying patterns. We are systematically capturing market share in both of our verticals, driving larger sales with existing customers and building a more diversified customer base. In the service provider market, which includes telcos, MSOs, cloud, and satellite providers, we continued to expand our customer base and grew our revenue even as our historically largest customer was not the largest contributor for the quarter. Their buying pattern was in line with their spending cycles and our projections. We were able to grow our customer count and expand our revenue per customer to deliver consistent growth in line with past projections. In North America, our average revenue per customer among our top customers has increased more than 30% year-over-year compared to second quarter last year as our security solutions are helping us expand deals with key customers validating our opportunity to grow share of wallet with compelling solutions. This also contributes to further revenue diversification as we align ourselves better to secular tailwinds. Entering 2021, we stated that our strategic goal was to grow recurring revenue faster than consolidated revenue. Year to date, Our recurring revenue has outpaced consolidated revenue growth rates, and we see that trend continuing. This is due in large part to the growing security needs of our customers and our offerings in this area that are helping us gain market share. Our solutions are built upon a foundation of high throughput, low latency, and ability to scale. These have been further enhanced by natively integrating multiple securities like DDoS that offer sophisticated zero-day protection and multi-level remediation methodologies that can be fully automated. These attributes are directly relevant to solving our customers' business problems and help deliver better returns on CapEx and OpEx for our customers achieve cybersecurity objectives, and assist them in their own technology transitions while protecting current investments. We continue to invest in our strategic priorities while maintaining discipline in our resource allocation. We have taken steps to mitigate COVID-related challenges within the supply chain with minimal impact to our gross margins as we focused on ensuring timely delivery to our customers. The net result is that our GAAP net income was $6.6 million in the quarter, and we generated $17.2 million in cash flow from operations, enabling us to further strengthen our balance sheet even while repurchasing more than $11 million of stock in the quarter. Today, A10 is very well positioned in growing markets with secular tailwinds. Striking events such as the Colonial Pipeline ransomware attack continue to drive demand for security-led solutions, and we have best-in-class solutions to help address those challenges. The ongoing multi-year 5G rollout and focus on network availability with security is also driving ongoing demand. We remain focused on driving strategic initiatives for sustainable, profitable growth, uniquely addressing the opportunities across cybersecurity, 5G, and digital transformation of businesses. With that, I'd like to turn the call over to Brian for a detailed review of the quarter. Brian?