A10 Networks, Inc.

Good afternoon. Thank you for attending today's second quarter 2022 earnings conference call. My name is Tamia, and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. It is now my pleasure to pass the conference over to our host, Rob Fink of F&K IR. Please proceed.

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 via the 810 Networks website at 810networks.com. Hosting the call today are Drew Petrovetti, President and CEO, and CFO Brian Becker. Before we begin, I would like to remind you that shortly after the market closed today, 810 issued a press release announcing its second quarter financial results. Additionally, 810 published a presentation and supplemental trended financial statements. You may access the press release 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 projections for future operating results, potential revenue growth, industry and customer trends, focus on investment in go-to-market strategies and infrastructure, capital allocation strategy, M&A opportunities, supply chain constraints and expectations, its positioning, its repurchase and dividend programs, and market share. These statements are based on current expectations and beliefs as of today, August 2nd. 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 on its business and operations that could cause actual results to differ materially, and you should not rely on them as predictions of future events. 810 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 810's most recent 10-K. Please also 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 in the company's press release issued today and on the trended quarterly financial statements that was posted on the company's website. With all that said, I'd like to turn the call over to Dhruv Head. Dhruv Head, the call is yours.

Thank you, Rob, and thank you all for joining us today. The second quarter was another strong quarter for ATEN. It was our 10th quarter in a row of meetings revenue, and EPS expectations. I'm proud of the team we have built at ATEN and the significant operational improvements we have driven together, leaning into our proprietary security-led solutions, transitioning away from legacy offerings, and positioning ATEN as a recognized leader in one of the most important market catalysts in technology today, network security. ATEN faces the same market conditions, supply chain challenges, and economic realities as our peers. But despite COVID recessionary conditions, currency headwinds, and a global supply chain crisis, we have established a clear and durable track record of success. Central to this success has been our focus on the network security needs of our customers and our diversification efforts. We sell to two main customer groups, enterprises and service providers. And within these two groups, our business is aligned with two secular tailwinds, infrastructure and cybersecurity. In the first half of 2022, the economy had a disproportionate impact on this mix. Cybersecurity continues to grow, and the global geopolitical events have only served as more of a catalyst for this growth. Simultaneously, infrastructure build-out requires capital expenditures, which can be impacted by interest rates and inflation unless it is linked to revenue generation. Like our peers, our visibility with small and mid-sized enterprises, especially related to infrastructure build-out, is not as clear as it was exiting 2021. However, cybersecurity solutions are being prioritized even amidst economic challenges, and especially by service providers for whom network security and reliability is a business essential. The net result for ATEN is performance in the first half of the year that exceeded published expectations, further strengthening our confidence in our full-year outlook and ability to invest for future growth. Driven by continued adoption of our proprietary security-led solutions, revenue increased 14.9% year-over-year. Our gross margin was better than 80% despite continued supply chain challenges and input cost pressures, driving higher levels of operating income, EBITDA, and net income. During the second quarter, we achieved our Rule of 40 goal, with revenue growth of 14.9% and adjusted EBITDA margins of 26.4%, representing a combined 41.3%. We ended the quarter with nearly $167 million in cash, or $2.13 per share, even after returning more than $7 million to shareholders in the form of share repurchases and a cash dividend. We have a fortress balance sheet positioning us to thrive if the economy slows and creating incremental opportunities as relative valuations reset. We also have a proven business model with our bottom line growing faster than our top line. Building upon a strong legacy, we have built security solutions into every facet of our portfolio. As discussed before, product mix improvement is an important metric for ATEN. Standalone ADC continued to decline as a percent of overall revenue, even as consolidated top line grew 14.9%, demonstrating the progress we have made in transitioning to a security and infrastructure solutions company. Today, ATEN focuses on customer centric innovation, and a solution-based sales approach, delivering tangible business value and industry-leading total cost of ownership for our clients regardless of whether the solutions are deployed on-prem, in private cloud, or public cloud. The cybersecurity threats only grow in magnitude, frequency, and sophistication. The war in Ukraine and the global diplomatic response has created new threats and exacerbated old ones. Our advanced machine learning solutions continue to identify and mitigate new challenges, such as the emerging LDAP amplification threats. Our current solutions identify and cover a significantly broader spectrum of threats, including setting the standard for identifying and isolating DDoS attacks. ATEN's technology strengths and infrastructure allow us to do this efficiently while providing best-in-class cybersecurity integrated with network traffic flow. CIOs are increasingly focused on security first, and ATEN is capturing share because of our differentiated approach to solving our customers' problems. Let me highlight some key areas of progress within our business. Our revenue growth continues to be driven by our proprietary security-led product revenue, which on a trailing 12-month basis is now up 26% backed by secular tailwinds. Overall product revenue, which is a leading indicator of future recurring service revenue, increased 21% versus Q2 of 2021. From a geographic perspective, Revenue from the Americas grew 33.7% year over year to $38.6 million, reflecting our investment in commercial initiatives in the Americas and strong demand for our solutions. EMEA revenue increased 10.5% year over year. Asia, including Japan, was essentially flat on a constant currency basis, exceeding our expectations. Inclusive of the significant foreign currency impact, APJ revenue decreased 7.1% year-over-year. Our diversification continues to provide a resilient foundation as different regions navigate macroeconomic and geopolitical headwinds. We continue to focus our investments in growth opportunities, including expanded and new capabilities in cybersecurity, We also continue to partner on hybrid solutions, enabling our customers to navigate their own technology roadmaps amidst the current economic climate. A priority within these investments is improving our ability to cross-sell solutions to our customers while enabling them to reduce overall capex and opex. Our own opex increased 11% year-over-year demonstrating these investments. 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 compared to the prior year. We are committed to maintaining a disciplined, flexible, and opportunistic capital allocation strategy. The recent economic conditions have impacted valuations across the board, and while we will continue to demonstrate rigor in evaluating potential uses of shareholder capital, the current market conditions are only likely to provide increased opportunities. Supply chain issues continue throughout our industry. But to date, ATEN has been able to navigate these conditions as evidenced by our gross margin improvements and our consistent ability to deliver products to customers. Our year-to-date performance reinforces our expectation that we can achieve our full-year targets of revenue growth of 10% to 12% year-over-year and EBITDA in the range of 26 to 28% of revenue for 2022. We have taken the current external environment into account and have identified levers in our business to achieve our targeted bottom line performance for the year. With that, I'd like to turn the call over to Brian for a detailed review of the quarter. Brian?