A10 Networks, Inc.

Welcome to ATEN Network's fourth quarter and full year 2024 financial results call. My name is Lydia and I'll be your operator today. After the prepared remarks, there will be an opportunity to ask questions. If you'd like to participate in the Q&A, you can do so by pressing star followed by one on your telephone keypad. I'll now hand you over to Tom Bauman at SNK IR to begin. Please go ahead.

Thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least 90 days via the ATEN Networks website at atennetworks.com. Hosting the call today are Drupal Trivedi, 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 2024 financial results. Additionally, ATEN published a presentation and supplemental trended financial statement. 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, demand, industry and customer trends, strategy, potential new products and solutions, or capital allocation strategy, profitability, expenses and investments, positioning, and our dividend program. These statements are based on current expectations and beliefs as of today, February 4th, 2025. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our 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 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 and quarterly report on Form 10-Q. 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 Statements posted on the company's website. Now, I'd like to turn the call over to Dhruva Trivedi President and CEO of ATEN Network.

Thank you, Tom, and thank you all for joining us today. ATEN ended the 2024 year delivering 5% growth for the quarter and 4% growth for the year as our service provider marketplace continues to normalize and we are making the expected progress to expand our presence with enterprise customers. We entered 2025 expecting the current trends around service providers to continue and deliver continued growth with enterprise customers. Our optimism is bolstered by an improving competitive position with both customer segments and the recognition that security and AI related investments are increasingly serving as a catalyst for spending. We believe that ATEN's offering is exceedingly well aligned with both of these secular trends. For service providers, the need to expand AI data centers continues. Data centers are incredibly hungry for power and the availability and cost of reliable electricity are considerations for locations and logistics. As a result, we are seeing accelerating interest in ATEN solutions as part of AI data center development. Our products provide industry-leading efficiency in terms of throughput and low latency and also include integrated security capabilities. The result is that service provider customers need fewer ATEN products compared to competitive offerings materially reducing the power consumption without sacrificing performance. This is serving not only as a catalyst for our business, but also as a meaningful competitive advantage. Combined with the expected backfill of spending following the pauses we experienced last year, we are seeing an improving pipeline from North American service provider customers. We expect this to continue while short term quarter to quarter volatility in spending patterns may persist. I am encouraged that service provider revenue was up 2.5% for the year, considering that it was down nearly 8% through the first six months of the year. The turnaround in the second half, while expected, is a positive indicator heading into 2025. On the enterprise customer side, we responded to the slowdown in spending from service providers by accelerating investments to drive demand from enterprise. This initiative was successful as we grew revenue from enterprise customers faster at 6% for the year, then we did consolidated revenue at 4%. We have a compelling offering to enterprise customers and we are investing heavily to further expand and bolster our suite of solutions, particularly to align with AI trends. Most of these investments are the culmination of several years of innovation and engineering, and we are just now beginning to see the benefits. We are developing additional solutions for bot protection, DDoS mitigation, and technologies that are designed specifically for GPU-based AI infrastructure. We will integrate AI to predict performance with our solutions, and with ATEN control, we will enable centralized management for all ATEN products. Within ATEN Defend, our cybersecurity suite, we continue to develop solutions that will help our customers protect their mission-critical applications and infrastructure from an ever-growing number of cyber threats. We anticipate an improving pipeline related to these investments in 2025. AI has become an important near-term catalyst for our business, and we are strong and getting stronger in this area. This, combined with our focus on cybersecurity solutions, continues to play a role in our growth. Security-led revenue increased 6% for the quarter and 9% for the year. Our focus on security continues to make our solutions less optional, mitigating the impact of short-term fluctuations in spending priorities and enabling ATEN to outperform our peer group. We had previously stated our long-term goal was to derive 65% of our revenue from security-led solutions, and for the full year, security represented 63% of revenue. I think it's also worth noting that in Q4, we delivered growth in all key regions, North America, Asia Pacific, Japan, and EMEA. For the past year, we had been stating that demand was consistent in EMEA and Japan, but soft in North America. That trend has begun to correct in line with the improving market conditions for North American service providers, as previously mentioned, and validating the strength of our technical solutions in all markets. Our priorities continue to be a mix of internal investments to support revenue generation, returning capital to shareholders, and evaluating strategic opportunities to accelerate growth. I spoke in detail about the internal investment related to our long-term cybersecurity blueprint in the last earnings call. Simultaneously, we continue to consistently return significant capital to shareholders. In spite of a challenging macro environment, our strong second half performance continues to demonstrate the earnings power of our business model. We maintain robust profitability in line and slightly ahead of our targets in the quarter. Our strong results also enabled us to support our R&D investments while simultaneously accelerating our cash generation, ending the year with nearly $200 million in cash and marketable securities, even as we return significant capital to shareholders. We have continued to buy back stock, and our cash flow has more than funded our buyback and dividend programs. With that, I'd like to turn the call over to Brian for a detailed review of the quarter and the year. Brian?