A10 Networks, Inc.

Good afternoon. Thank you for attending today's A10 Network's fourth quarter and full year 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. I would now like to pass the conference over to your host, Rob Fink. Please proceed.

Thank you, operator, and thank you all for joining us today. This call is being recorded and may be accessed for at least 90 days via the ATEN Networks website at atennetworks.com. Hosting the call today are Drew Petruvetti, 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 fourth quarter and full year 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 be making forward-looking statements, including statements regarding projections for future operating results, including potential revenue growth, industry and customer trends, capital allocation strategy, supply chain constraints, expectations, company's positioning, and repurchase and dividend programs, along with its market share. These statements are based on current expectations and beliefs as of today, February 7, 2023. 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 the business and 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 the forward-looking statement, 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 the company's most recent 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 Dhruved Trivedi. Dhruved, the call is yours.

Thank you, Rob, and thank you all for joining us today. This was another record year for ATEN, the top and bottom line performance that validates ATEN's solid position in the marketplace and the earning power of our business. We continue to deliver revenue growth that exceeds the growth rate of the industry as we gain market share with best-in-class proprietary solutions. With strong growth margins and rigorous expense management, our bottom line grew faster than our top line, and we utilized our robust cash generation to invest in technology for future growth and return capital to shareholders. Our management team has delivered consistent financial and operational results in spite of macro challenges. This is a testament to our team, our focus on execution, and our loyal global customer base that continues to embrace our solutions. The part of our business related to cybersecurity and revenue generating solutions for customers is increasingly durable while we navigate increased volatility in areas of our business related to modernization. Our focus on critical network infrastructure and security solutions continues to drive our growth. Even when CapEx investments are moderated due to economy or interest rates, our solutions are prioritized. This is evident in the 14% product revenue growth in the quarter and the fact that we delivered strong growth in key regions such as the Americas and Asia Pacific. On a trailing 12-month basis, our product revenue is up 17%. As we have said in the past and evidenced by performance in the fourth quarter, we are not reliant on any single geographic region and in fact, we are generating growth on a constant currency basis in nearly every region of the world where we operate. We have done our best to build a risk-mitigated business model, which we believe is largely insulated from volatility in any specific region, product category, or customer type. This diversification is evident in our top customers. Looking at 10% customers by quarter, only three companies appeared on that list in 2022. In fact, 22 different customers contributed revenue that put them in our top 10 at least once. I'd like to highlight two wins that demonstrate ATEN's successful land and expand commercial strategy. Rooted in our ability to capture market share through our technical superiority and performance criteria in head-to-head testing for critical customer needs, we were able to display a competitive security incumbent in Japan with our DDoS protection solution. Having a long, proven track record with the customer with our ADC and CGN solutions, A cloud service provider in Japan chose our DDoS protection to protect their environment while providing significant zero-day automated protection, which was a differentiator for the sale. We discussed last quarter a deal with one of world's top digital advertising platform companies. As a reminder, this customer had an urgent need to rapidly upgrade their infrastructure in order to support added features and enhance functionality, including efficient and rapid infrastructure buildup. As a result, our high throughput, low latency solution was chosen to help ensure the customer's existing revenue streams while expanding their ability to generate new revenue streams. These expansion orders are a reflection of our ability to continue growing with our large installed base representing the most significant durable opportunity for continued growth. Diversification does not make us immune from economic challenge, but we believe we are positioned to navigate these situations better than our peers. Like many, we are seeing extended cycles. In addition, while many of our peers are reporting results that compared to low growth period last year, our team has continued to deliver several quarters consecutively robust growth. Most importantly, we are increasingly confident in our ability to achieve our profitability targets. Our EPS performance in the fourth quarter is also due in part to our ability to react quickly to increased volatility by managing expenses and allocating resources to ensure consistent and predictable profitability. Our differentiation and technical strength enables us to maintain non-GAAP gross margins exceeding 80%. For the full year, this was 80.3%. In addition, we are effectively allocating our operating expenses while continuing to invest in the business, especially in our technology. In the fourth quarter, our operating expenses increased 7.7% compared to prior year, and for the full year, our operating expenses increased by $13.2 million, or 9.1%. against a 12.1% revenue growth. The result is accelerating profitability and EPS growth. Our adjusted EBITDA was a record 22.3 million for the fourth quarter and 75.1 million for the year. ATEN's earning power is clear. During 2022, we returned more than 95 million to shareholders in the form of cash dividends and stock repurchases and ended the year with nearly $151 million in cash and no debt. This is approximately $2 in cash per share. We continue to manage and maintain a Fortress balance sheet. We also continue to maintain a disciplined, flexible, and opportunistic capital allocation strategy. Today, our board approved a quarterly dividend of $0.06 per share. We enter 2023 expecting full-year revenue growth that outpaces our peer set while still delivering on our profitability goals in terms of adjusted EBITDA and EPS. With that, I'd like to turn the call over to Brian for a detailed review of the quarter and the year. Brian?