ATEN Earnings Prediction
The chart below shows how ATEN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ATEN sees a -2.67% change in stock price 10 days leading up to the earnings, and a +4.54% change 10 days following the report. On the earnings day itself, the stock moves by +0.55%. This data can give you a slight idea of what to expect for the next quarter's release.
ATEN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
74.20M
5.38%
11.22%
Gross Margin
79.92%
-1.52%
-0.67%
Operating Margin
24.79%
-3.05%
58.40%
Net Margin
24.66%
-3.07%
30.20%
EPS
0.24
0.00%
41.18%
No Data Available
ATEN Earnings Analysis
A10 Networks Inc Corporation (ATEN.N) Earnings Conference Call
Positive
Earnings Per Share Beat: A10 Networks reported a Q4 EPS of $0.31, exceeding expectations of $0.22, reflecting strong financial performance.
Fourth Quarter Revenue Increase: Fourth quarter revenue reached $74.2 million, marking a 5.4% year-over-year increase, driven by a 4% rise in service provider revenue and an 8% increase in enterprise revenue.
Security Revenue Growth: Security-led revenue grew by 6% in Q4 and 9% for the year, contributing to 63% of total revenue, aligning with the company's long-term goal of 65%.
Strong Cash Generation: The company generated $90.5 million in cash from operations for the year, surpassing full-year targets and demonstrating strong cash generation capabilities.
Cash and Marketable Securities Increase: A10 ended the year with $195.6 million in cash and marketable securities, an increase from $159.3 million at the end of 2023, while maintaining no debt.
Negative
Service Provider Revenue Recovery: Service provider revenue increased only 2.5% for the year, recovering from a nearly 8% decline in the first half, indicating ongoing volatility in this segment.
Adjusted EPS Analysis: Adjusted non-GAAP EPS for the quarter would have been $0.27 per diluted share when excluding a one-time gain, reflecting weaker underlying performance than reported.
Limited Revenue Expansion: Full year revenue growth was only 4%, suggesting limited expansion in a competitive market environment.
Product Revenue Growth Challenges: Despite a 5% increase in deferred revenue, the overall growth in product revenue was only 5.4%, indicating potential challenges in sustaining momentum.
EBITDA Margin Analysis: The adjusted EBITDA margin for the year was 28.5%, which is below the targeted range of 26% to 28%, suggesting pressure on profitability.
ATEN FAQs
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ATEN Earning Call Sentiment
A10 Networks, Inc. (NYSE:ATEN) Q4 2024 Earnings Call Transcript
ATEN.N
-1.06%Positive
The earnings call reveals strong financial performance with a 5.4% YoY revenue increase and solid gross margins. The company maintains a robust cash position and continues its share repurchase program, indicating confidence in future growth. Despite some uncertainties in AI revenue and mixed geographic results, the optimistic guidance, strategic investments in AI and cybersecurity, and continued shareholder returns suggest a positive stock price movement. Given the small-cap nature of the company, a 2% to 8% increase is likely.
