A10 Networks, Inc.

Good afternoon and thank you for attending today's A-10 third quarter 2022 financial results conference call. My name is Austin and I shall 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'd like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to our host, Rob Fink. Rob, you may proceed.

Thank you, Operator, and thank you all for joining us today. This call is being recorded and webcasted live. There may be access for at least 90 days via the ATEN Networks website at atennetworks.com. Hosting the call today are Drew Petrovetti, ATEN's President and CEO, and CFO Brian Becker. Before we begin, I would like to remind you that shortly after the market closed today, ATEN Networks issued a press release announcing its third quarter 2022 financial results. Additionally, ATEN published a presentation and supplemental trended financial statements. You may access the press release presentation and 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. including revenue growth, industry and customer trends, focus on an investment in the go-to-market strategy and infrastructure, its capital allocation strategy, M&A opportunities, supply chain constraints, and expectation positioning for the repurchase and dividend programs and its market share. These statements are based on current expectations and beliefs as of today, November 1st, 2022. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, such as the potential impact of the COVID-19 pandemic on business and operations that could cause actual results to differ maturely. You should not rely on them as predictions of future events. ATED 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 ATIN's 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 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 statement that's posted on the company's website. Now, I'd like to turn the call over to Drupad Trivedi. Drupad, the call is yours.

Thank you, Rob, and thank you all for joining us today. ATEN continues to deliver strong revenue growth and earnings power. The third quarter was our 11th consecutive quarter of meeting revenue and EPS consensus expectations. We are achieving this consistency despite a global pandemic, economic volatility, higher interest rates, and supply chain challenges. This is a testament to the business we have built upon a great technical foundation and to a team that relentlessly delivers excellence. We have proven that our business can be durable, leveraging differentiators to drive success, even amidst unprecedented challenges. Today, ATEN is a security-focused organization, building cybersecurity into everything we do while building upon our deep networking expertise and global customer footprint. This positioning is evident in our business model as our growth and operating margins reflect proprietary security-led solutions and strong customer demand for cybersecurity and infrastructure solutions. By design, we are not reliant on any single geographic region. And in fact, we are generating growth in nearly every region of the world despite foreign currency headwinds. To the best of our ability, we have built a risk-mitigated business model largely insulated from volatility in any specific region, product category, or customer consumption model. 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 impacted enterprise spending while service provider revenue continued to grow, providing a balanced model. In the third quarter, revenue from enterprise customers represented our faster growing customer segment, demonstrating that balance in our strategy. Both enterprise and service provider segments grew in the third quarter, And we continue to see demand from US large enterprises align with the secular tailwind for our security-led solution. I'd like to highlight two wins that came from our enterprise segment, where ATEN is gaining market share by delivering a superior solution for the customer and exceeding performance criteria in head-to-head testing for critical customer needs. One of ATAN's largest transactions for Q3 came via one of the world's top digital advertising platform companies. Our customer had an urgent need to rapidly upgrade its infrastructure in order to support added features and enhance functionality, including security for its end customers. ATAN's high throughput, low latency solution, which also supports security encryption across this customer's network infrastructure ensured the customer's existing revenue streams while expanding their ability to generate new revenue streams. Another key customer win came from one of the largest government agencies in Europe. This existing customer had a relatively small product footprint with ATAN, but had an urgent need to expand its deployment in support of a new online filing mandate on the country's citizens and businesses with a very tight deadline. ATEN was able to service this customer's critical technological need for high volume and security, and we were able to deliver this solution within their required timeframes. Similar to the first example, our solution help this enterprise to ensure the ability to expand and capture new revenue streams while actually improving their network performance. Today, ATEN works with nine of the top 10 wireless carriers, four of the top six banks, three of the top five web giants, dozens of financial and educational institutions, and several government agencies. Our customer base is clearly diversified. We are not reliant on any single customer or small group of customers to achieve our results. Our revenue growth continues to be driven by our proprietary security-led product revenue, which on a trailing 12-month basis is now up 21% backed by secular tailwinds and a series of product innovations which were continually delivered by ATF. Overall product revenue, which is a leading indicator of future recurring revenue, increased 13% versus Q3 of 2021. This success is due to our ability to combine networking expertise with the security needs of our customers. The need for cybersecurity infrastructure continues to evolve and grow. Global geopolitical events serve as a near-term catalyst for this growth. Cybersecurity solutions are being prioritized even amidst higher interest rates and ongoing economic challenges because these threats are now viewed as an enterprise-level risk. Our product and technology roadmap deeply integrates infrastructure and security needs on a common platform, delivering increasing efficacy and value to our customers. Our quarterly revenues increased 10.2% year-over-year in line with our target ranges, and non-GAAP operating gross margin was better than 80%, driving record levels of operating income and non-GAAP EBITDA of 29.5%. This is a result of our focus on customer-centric innovation and delivering productivity across all functional areas. We ended the quarter with nearly $128 million in cash, even after repurchasing more than $47.5 million in stock in the quarter. We continue to maintain a Fortress balance sheet. We have also demonstrated a proven business model with the bottom line growing faster than our top line. We continue to maintain a disciplined, flexible, and opportunistic capital allocation strategy. The share purchase in this quarter was an example of this. Our quarterly dividend is another example. Today, we announced that our board approved a 20% increase in our quarterly dividend from 5 cents per share to 6 cents per share. Additionally, we announced a new $50 million share repurchase authorization. At the same time, we continue to increase our investments for organic growth in R&D and sales and marketing. Our year-to-date performance and customer traction reinforces our expectation that we can achieve our full-year target of revenue growth of 10% to 12% and EBITDA in the range of 26% to 28%. This outlook fully incorporates foreign currency headwinds. With that, I'd like to turn the call over to Brian for a detailed review of the quarter. Brian?