A10 Networks, Inc.

Good afternoon, and thank you for attending today's ATEN Networks Q1 2022 earnings call. My name is Sam, and I will be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star 1 on your telephone keypad. This time, I'd now like to turn the call over to our host, Rob Fink of FNKIR. Rob, please proceed.

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 via the A10 Networks website at atennetworks.com. Hosting the call 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 first quarter 2022 financial results. Additionally, 810 published a presentation and supplemental trended financial statements. You may access the press release, presentations, and the 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 its projections for future operating results, including potential revenue growth, industry and customer trends, and its focus and investment in code of market strategy and infrastructure, a capital allocation strategy, M&A opportunities, supply chain constraints and expectations and positioning, and repurchases and dividend programs and its market share. These statements are based on current expectations and beliefs as of today, May 3rd, 2022. 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 the COVID-19 pandemic on its business and operations that could cause actual results to differ materially, and you should not rely on them as predictions of future results. A-10 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. For a 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 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 that 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 that was 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. Drupad, the call is yours.

Thank you, Rob, and thank you all for joining us today. Driven by continued adoption of our security-led solutions, Revenue increased more than 14 percent year-over-year, positioning us to deliver revenue growth at the high end of our full-year guidance range. As expected, we continue to see leverage in our business model with improvements in gross margin, operating income, and earnings per share. We generated $15.9 million in cash from operations ending the quarter with $164.7 million in cash and cash equivalents after repurchasing $28.3 million in stock and returning $3.9 million in cash to shareholders in the form of a dividend during the quarter. As discussed at our recent analyst day, we have developed a sustainable business model, and our goal is to achieve the rule of 40, meaning a combined revenue growth and EBITDA margin of 40% or greater, in line with highly valued cybersecurity companies. The first quarter results continue to build upon that foundation and demonstrate that our model is working in spite of multiple macro headwinds. Security-led solutions continue to serve as a durable secular catalyst for our growth. We have built security into every facet of our business, helping differentiate our technology solutions with focus on customer centric innovation that delivers business value for our clients. We all continue to see high profile cybersecurity incidents, including recent ransomware situations impacting large technology organizations here in the States, as well as the several state sponsored cyber attacks taking place around the world, including Ukraine. Headlines about cybersecurity intrusion seem to be a weekly, if not a daily occurrence, with attacks moving beyond isolated incidents involving small groups or individuals to state-sponsored, sophisticated, and large scale, targeting key infrastructure, government agencies, and utility companies alike. As a result, CIOs and IT leaders are increasingly focused on security first. Our ability to integrate security and encryption capabilities into all of our networking solutions sets us apart. ATAN has differentiated itself as a leader in security-led infrastructure solution, including the zero trust architecture with superior networking performance and best-in-class cybersecurity protection. As a result, we are winning in our target markets and applications. Our global customers also continue to expand their global IT networks in an effort to handle more traffic and data. ATEN's product suite allows our customers to increase traffic capacity and throughput without sacrificing security. In fact, we build DDoS recognition and mitigation capabilities as well as malware protection and privacy safeguards into nearly all our networking offerings, enabling our customers to improve their resiliency while expanding their networks. Let me highlight some key areas of progress within our business. Security-led product revenue increased 20.1% year over year in the quarter, with North America being the leading driver of this growth. From a geographical perspective, revenue from the Americas grew 25.5% year-over-year to 33 million, reflecting our investment on commercial initiatives in the Americas. AMIA revenue increased year-over-year from 8.6 million to 11.9 million. Asia, including Japan, declined from 20 million to 17.8 million. This is a consequence of continued depressed economic outlook in those countries and the lingering impact of COVID-19. Within APJ, Japan went from 13.6 million to 11.5 million in Q1 2022, inclusive of a significant foreign exchange headwind and in line with our expectations. Our diversification continues to provide a resilient foundation. We continue to focus our investment in growth opportunities with balanced profitability and a focus on achieving our stated rule of 40 goals. A key part of this strategy is improving our ability to cross-sell solutions to our customers while continuing to reduce their overall capex and opex. Over the past year, our product revenue growth rate with existing customers has consistently exceeded our target growth rate, demonstrating our ability to successfully leverage our strong install base and bolsters our confidence in delivering 10 to 12% consolidated growth. We have proven our ability to grow, invest for future growth, return capital to shareholders, and bolster our Fortress balance sheet. We will maintain a disciplined, flexible, and opportunistic capital allocation strategy, exploring all options while demonstrating rigor in evaluating potential uses of shareholder capital. As I'm sure you are all aware, supply chain issues continue throughout our industry. ATEN has been able to successfully navigate these issues to date. Our customers are looking for supply assurance and we have been able to meet those requirements so far. ATAN is well positioned in a growing market and this is proven by our strong financial performance. Cybersecurity remains the primary catalyst for our growth. We are now well positioned to achieve the high end of our full year targets around top line growth of 10 to 12% and expanding EBITDA in the range of 26 to 28%. With that, I'd like to turn the call over to Brian for a detailed review of the quarter. Brian?