A10 Networks, Inc.

Good afternoon. Thank you for attending today's A10 Network second quarter 2023 financial results. My name is Cole and I'll 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 would like to ask a question, please press star one on your telephone keypad. I'd now like to pass the conference over to our host, Rob Fink with A10. Please go ahead.

Thank you, Carl, and thank you all for joining us tonight. This call is being recorded and webcasted live and may be accessed for at least 90 days via ATEN Network's website, atennetworks.com. Hosting the call today are Drew Petrivedi, 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 second quarter 2023 financial results. Additionally, ATIN published a presentation and supplemental trended financial statements. You may access the press release presentation and trended financials 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 potential revenue growth, industry and customer trends, capital allocation strategy, supply chain constraints, and expectations, positioning, or repurchase and dividend programs, and market share. These statements are based on current expectations and beliefs as of July 26, 2023. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond the company's control, that could cause actual results to differ materially, and you should not rely on them as predictions of future events. A-10 does not intend to update information in these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. For more detailed description of these risks and uncertainties, please refer to the 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 on the press release issued today on the trended quarterly financial statements posted on the company's website. With all that said, I'd now like to turn the call over to Drupad. Drupad, the call is yours.

Thank you, Rob, and thank you all for joining us today. This was an encouraging quarter for ATEN with revenues that grew double digits sequentially and nearly matched a particularly strong year-over-year comp. This performance supports our belief that the first quarter represented the floor for our results with the expectation of sequential improvement as we move through the balance of 2023. In addition, we generated higher profitability demonstrating our strong execution and the systemic profitability that is now central to ATEN's business model. Our adjusted EBITDA margin for the first six months of 2023 was a record 26.6% of 248 basis points compared to the first six months of 2022, demonstrating the earnings power of our business model. This also continues to be in line with our stated goal of 26 to 28% at our analyst day in early 2022. The marketplace remains challenging, especially in North America, and particularly with larger enterprises and tier one service providers. Many of these organizations are taking a cautious and conservative approach to planned spending and the result is the shifting of some projects across periods. In the second quarter, our revenue performance in the rest of the world offset this weakness in North America. We do not believe we have lost these opportunities. They have just been delayed. This highlights the importance of diversification in our business, both in terms of geography and customer types. Businesses that are heavily reliant on the North American market face a challenging macro environment right now. Our strong presence in Asia Pacific, in particular, helped us mitigate the North American headwind in the second quarter. Additionally, while many projects are being delayed, security investments are often the last to be trimmed. Both on a trailing 12-month basis and year-over-year in the quarter, security-led revenue is up 6%. We have received questions about artificial intelligence and the impact of AI on our business. I'd note that we have used machine learning and AI, especially in our security-led solutions, for some time now. AI helps our DDoS mitigation solution, for example, to detect and mitigate threats in real time. In this respect, AI acts as a force multiplier, making our technology more effective and more attractive to customers. We will continue to harness the power of AI in this way. We expect the AI infrastructure to require extremely low latency and high throughput, as well as generating more and more network traffic. This serves as a catalyst to encourage the construction of new and next generation data centers and the expansion of existing ones. In general, we believe AI serves as a tailwind for our business and aligns with the concept of making AI more cost effective as that market continues to mature. Our business model enables us to proactively flex operating expenses based on near-term and mid-term demand. I want to note that we were mindful of our long-term goals, particularly related to growth, as we reviewed our near-term spend. As a result, while our revenue is down 5.5% year-to-date, our operating expenses declined more by 6.6%, enabling us to expand our profitability even while investing for future growth and navigating macro challenges. In fact, our R&D dedicated to security products increased 3% year over year and is up nearly 8% from two years ago, demonstrating our commitment to investing in organic growth opportunities. Recently, we highlighted how ATEN's carrier-grade networking and DDoS protection solutions help deliver a secure and consistent subscriber experience for businesses and consumers in Turkey. One of the nation's largest telecom operators with over 50 million subscribers chose ATEN to help facilitate their network's shift to the cloud while protecting their subscribers' critical infrastructure. Our threat protection system provided the backbone to their security operations center, helping to analyze all incoming internet traffic, detect anomalies and DDoS attacks, and block or clear illegitimate traffic. Our new solution, enabling hybrid infrastructure, directly helped create a customer value in this case. ATAN's DDoS mitigation solution has long been deployed by cloud service providers to protect their traffic. Increasingly important is the ability to monetize this mitigation by these cloud providers. In North America, our solution has been utilized by a cloud service provider to provide DDoS scrubbing service and continues to be significantly more effective over alternate approaches for almost five years now. Our consistent profitability fuels our capital allocation strategy. During the quarter, we paid 4.4 million in cash dividends and repurchased 6.2 million worth of our shares, all while growing our cash balance. We continue to focus on our three-pronged strategy for capital allocation. First, investing in our business for future growth. Second, returning capital to shareholders. And third, continuing to explore strategic and accretive acquisitions. With that, I'd like to turn the call over to Brian for a detailed review of the quarter and the first six months of the year. Brian?