EXHIBIT 99.1

A10 Networks Reports Record Revenue, Full-Year Revenue of $280.3 Million,

Fourth Quarter Revenue of $77.6 Million

12% Full-Year Revenue Growth Drives Record Profitability

SAN JOSE, Calif., February 7, 2023 -- A10 Networks (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its fourth quarter and full-year period ended December 31, 2022.

Fourth Quarter 2022 Financial Summary

•Record revenue of $77.6 million, up 9.9% year-over-year.

•Revenue growth was broad-based, with increases in North America and APAC, as well as Japan on a constant currency basis.

•GAAP gross margin of 79.7%; non-GAAP gross margin of 80.3% as a result of better product mix and continued successful navigation of short-term input cost pressures.

•GAAP net income of $18.0 million, or $0.24 per diluted share, compared with GAAP net income of $10.7 million, or $0.13 per diluted share in the fourth quarter of 2021.

•Non-GAAP net income of $18.4 million, or $0.24 per diluted share (non-GAAP EPS), compared with non-GAAP net income of $16.4 million, or $0.20 per diluted share in the fourth quarter of 2021.

•Adjusted EBITDA of $22.3 million, representing 28.7% of revenue, in line with stated business model goals, and representing more Adjusted EBITDA than A10 generated in all of 2018 and 2019 combined.

•The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable on March 1, 2023 to stockholders of record at the close of business on February 17, 2023.

Full-Year 2022 Financial Summary

•Record revenue of $280.3 million, up 12.1% year-over-year.

•Revenue growth was broad-based, with increases in all major geographies and customer verticals on a constant currency basis.

•GAAP gross margin of 79.7%; non-GAAP gross margin of 80.3%.

•GAAP net income of $46.9 million, or $0.60 per diluted share, compared with GAAP net income (inclusive of a non-recurring $65.4 million income tax benefit related to sustained profitability) of $94.9 million, or $1.19 per diluted share in 2021.

•Non-GAAP net income of $57.7 million, or $0.74 per diluted share, compared with non-GAAP net income of $50.1 million, or $0.63 per diluted share in 2021.

•Q3 and Q4 2022 GAAP EPS of $0.16 and $0.24 per diluted share, respectively, compared to Q3 and Q4 2021 GAAP EPS of $0.94 and $0.13 per diluted share, respectively. Full-year 2022 GAAP EPS was $0.60 vs. $1.19 last year.

•With Q3 and Q4 2022 non-GAAP EPS of $0.20 and $0.24 per diluted share, respectively, and Q3 and Q4 2021 non-GAAP EPS of $0.17 and $0.20 per diluted share, respectively, A10’s profit accelerated in the second-half of 2022 compared to the second-half of 2021. Full-year 2022 non-GAAP EPS was $0.74 vs. $0.63 last year.

•Adjusted EBITDA of $75.1 million, representing 26.8% of revenue, in line with stated goals for profitability.

•Full-year cash flow from operations increased 31.9% to $66.1 million, compared to $50.1 million in 2021.

•A10 returned more than $95 million to shareholders during 2022, repurchasing approximately 6.1 million shares at an average price of $13.01 per share for a total of $79.3 million and issuing $15.9 million in cash dividends.

($ in millions, except per-share)	2019	2020	2021	2022	2022 vs. 2021
Revenue	$212.6	$225.5	$250.0	$280.3	+12.1%
Adjusted EBITDA %	5.5%	20.2%	25.0%	26.8%	+182 bps
GAAP EPS	($0.23)	$0.22	$1.19	$0.60	(49.1%)
Non-GAAP EPS	$0.03	$0.44	$0.63	$0.74	+18.6%

A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

“Strong demand for our proprietary security-led solutions drove record revenues for the quarter and the full-year, with continued broad-based growth across both enterprises and service providers and in each key geographic region, on a constant-currency basis,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “Increasingly, A10 is positioned as a diversified, differentiated security solutions provider, structured to mitigate fluctuations from any single customer or region. While

we are not immune from recessionary impacts, our industry leadership makes our offerings a priority over discretionary investments. We remain well-positioned for continued success with both enterprise and service provider customers.”

“In 2022 we successfully navigated supply chain constraints, maintained robust gross margins and effectively managed our operating expenses, which drove profitability and free cash flow,” added Trivedi. “With revenue growth that outpaced operating expenses, we were able to grow our bottom line faster than our top line. For the year, we delivered record non-GAAP operating income and EBITDA margins, enabling us to repurchase more than $79.3 million of our stock and return further capital to shareholders through meaningful cash dividends. Simultaneously, we continued to strategically invest in technology, augmenting our already durable differentiators and making our business increasingly resilient. We remain committed to delivering revenue growth that outpaces our peer set, navigating recessionary headwinds better than our peers and delivering solid bottom-line growth, with expected double-digit growth in 2023 full-year non-GAAP EPS. We continue to carry no debt and hold $151.0 million of cash and cash equivalents.”

Conference Call

Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, February 7, 2023, to discuss these results. Interested parties may access the conference call by dialing (844) 200-6205 (toll-free) or (929) 526-1599 and referencing access code: 125471.

A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Network’s website at investors.a10networks.com. The webcast will be archived for at least 90 days. A telephonic replay of the conference call will be available two hours after the conclusion of the live call and will run for seven days and may be accessed by dialing (866) 813-9403 (toll-free) or (929) 458-6194 and entering the passcode 897429.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding our anticipated future financial results, quarterly dividend payments, drivers of growth, strategy, demand, supply chain challenges, positioning, growth and Adjusted EBITDA and non-GAAP EPS expectations. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Factors that may cause actual results to differ include the impact of the COVID-19 pandemic on our business and the business of our customers; a significant decline in global macroeconomic or political conditions that have an adverse impact on our business and financial results;business interruptions related to our supply chain; our ability to manage our business and expenses if customers cancel or delay orders; execution risks related to closing key deals and improving our execution; the continued market adoption of our products; our ability to successfully anticipate market needs and opportunities; our timely development of new products and features; our ability to achieve or maintain profitability; any loss or delay of expected purchases by our largest end-customers; our ability to maintain or improve our competitive position; competitive and execution risks related to cloud-based computing trends; our ability to attract and retain new end-customers and our largest end-consumers; our ability to maintain and enhance our brand and reputation; changes demanded by our customers in the deployment and payment model for our products; continued growth in markets relating to network security; the success of any future acquisitions or investments in complementary companies, products, services or technologies; the ability of our sales team to execute well; our ability to shorten our close cycles; the ability of our channel partners to sell our products; variations in product mix or geographic locations of our sales; risks associated with our presence in international markets; weaknesses or deficiencies in our internal control over financial reporting; our ability to timely file periodic reports required to be filed under the Securities Exchange Act of 1934; and other risks that are described in “Risk Factors” in our periodic filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Commission on March 8, 2022. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we refer to certain non-GAAP financial measures, including non-GAAP net income, non-GAAP net income per basic and diluted share (or non-GAAP EPS), non-GAAP gross profit and gross margin, non-GAAP operating income and operating margin, non-

GAAP operating expenses, and Adjusted EBITDA. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies.

A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance and are used by the company's management for that purpose.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

We define non-GAAP net income as our GAAP net income excluding: (i) stock-based compensation and related payroll tax, (ii) impairment of investment, (iii) amortization expense related to acquisition, (iv) global distribution center transition expense, (v) litigation and investigation expense (recovery, (vi) non-recurring facilities expense, (vii) restructuring expense and related taxes, (viii) tax benefit of amended returns and (ix) release of deferred tax asset valuation allowance. We define non-GAAP net income per basic and diluted share as our non-GAAP net income divided by our basic and diluted weighted-average shares outstanding. We define tax effected non-GAAP net income as non-GAAP net income adjusted for the income tax effect of excluding the non-GAAP items (i) to (ix) listed above. We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, and (ii) global distribution center transition expense. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating income as our GAAP income from operations excluding (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition and (iii) global distribution center transition expense. We define non-GAAP operating margin as our non-GAAP operating income divided by our GAAP revenue. We define non-GAAP operating expenses as our GAAP operating expenses excluding (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition and (iii) global distribution center transition expense. We define Adjusted EBITDA as our GAAP net income excluding (i) interest and other (income) expense, net, (ii) depreciation and amortization expense, (iii) provision for (benefit from) income taxes, (iv) stock-based compensation and related payroll tax, (v) litigation and investigation expense (recovery), (vi) non-recurring facilities expense, (vi) impairment of investment, (vii) global distribution center transition expense and (ix) restructuring expense.

Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results.

About A10 Networks

A10 Networks (NYSE: ATEN) provides secure application services and solutions for on-premises, multi-cloud and edge-cloud environments at hyperscale. Our mission is to enable service providers and enterprises to deliver business-critical applications that are secure, available and efficient for multi-cloud transformation and 5G readiness. We deliver better business outcomes that support investment protection, new business models and help future-proof infrastructures, empowering our customers to provide the most secure and available digital experience. Founded in 2004, A10 Networks is based in San Jose, Calif. and serves customers globally. For more information, visit https://www.a10networks.com/ and follow us @A10Networks. 

The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in the United States and other countries. All other trademarks are the property of their respective owners.

Investor Contact:

Rob Fink / Tom Baumann

FNK IR

646.809.4048 / 646.349.6641

aten@fnkir.com

Brian Becker

Chief Financial Officer

investors@a10networks.com

Source: A10 Networks, Inc.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts, on a GAAP Basis)

	Three Months Ended December 31,				Year Ended December 31,
	2022		2021		2022		2021
Revenue:
Products	$	49,577	$	43,680	$	173,201	$	148,398
Services	28,057		26,991		107,137		101,644
Total revenue	77,634		70,671		280,338		250,042
Cost of revenue:
Products	11,793		9,460		40,135		32,620
Services	3,950		4,722		16,697		20,885
Total cost of revenue	15,743		14,182		56,832		53,505
Gross profit	61,891		56,489		223,506		196,537
Operating expenses:
Sales and marketing	22,351		25,456		88,511		85,651
Research and development	16,916		13,027		58,398		54,077
General and administrative	6,358		6,161		23,518		23,421
Total operating expenses	45,625		44,644		170,427		163,149
Income from operations	16,266		11,845		53,079		33,388
Non-operating income (expense):
Interest income	568		103		1,304		409
Interest and other income (expense), net	(464)		(356)		(1,667)		(2,155)
Total non-operating income (expense), net	104		(253)		(363)		(1,746)
Income before income taxes	16,370		11,592		52,716		31,642
Provision for (benefit from) income taxes	(1,660)		864		5,808		(63,245)
Net income	$	18,030	$	10,728	$	46,908	$	94,887
Net income per share:
Basic	$	0.25	$	0.14	$	0.62	$	1.23
Diluted	$	0.24	$	0.13	$	0.60	$	1.19
Weighted-average shares used in computing net income per share:
Basic	73,560		77,548		75,528		77,046
Diluted	75,392		80,316		77,751		80,037

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

(unaudited, in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
GAAP net income	$	18,030		$	10,728		$	46,908		$	94,887
Non-GAAP items:
Stock-based compensation and related payroll tax			3,546			3,598			13,969			15,031
Impairment of investment			1,000			—			1,000			—
Amortization expense related to acquisition			—			—			—			505
Global distribution center transition expense			—			2,117			—			5,063
Tax benefit from amended returns			(4,176)			—			(4,176)			—
Release of deferred tax asset valuation allowance			—			—			—			(65,417)
Total non-GAAP items			370			5,715			10,793			(44,818)
Non-GAAP net income (1)	$		18,400	$		16,443	$		57,701	$		50,069
GAAP net income per share:
Basic	$	0.25		$	0.14		$	0.62		$	1.23
Diluted	$	0.24		$	0.13		$	0.60		$	1.19
Non-GAAP items:
Stock-based compensation and related payroll tax			0.05			0.04			0.18			0.19
Impairment of investment			0.01			—			0.01			—
Amortization expense related to acquisition			—			—			—			0.01
Global distribution center transition expense			—			0.03			—			0.06
Tax benefit from amended returns			(0.06)			—			(0.05)			—
Release of deferred tax asset valuation allowance			—			—			—			(0.82)
Total non-GAAP items			—			0.07			0.14			(0.56)
Non-GAAP net income per share: (1)
Basic	$	0.25		$	0.21		$	0.76		$	0.65
Diluted	$	0.24		$	0.20		$	0.74		$	0.63
Weighted average shares used in computing net income per share:
Basic	73,560			77,548			75,528			77,046
Diluted	75,392			80,316			77,751			80,037

(1)Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate adjusted net income and earnings per share in the same manner.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except par value, on a GAAP Basis)

	December 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	67,971	$	78,925
Marketable securities	83,018		106,117
Accounts receivable, net of allowances of $32 and $543, respectively	72,928		61,795
Inventory	19,693		22,462
Prepaid expenses and other current assets	13,381		14,720
Total current assets	256,991		284,019
Property and equipment, net	19,743		10,692
Goodwill	1,307		1,307
Deferred tax assets, net	63,183		65,773
Other non-current assets	27,881		31,294
Total assets	$	369,105	$	393,085
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,725	$	6,852
Accrued and other liabilities	37,183		36,101
Deferred revenue, current	74,340		73,132
Total current liabilities	118,248		116,085
Deferred revenue, non-current	52,652		48,499
Other non-current liabilities	17,193		19,613
Total liabilities	188,093		184,197
Stockholders' equity:
Common stock, $0.00001 par value: 500,000 shares authorized; 87,123 and 84,717 shares issued and 73,738 and 77,423 shares outstanding, respectively	1		1
Treasury stock, at cost: 13,384 and 7,294 shares, respectively	(134,934)		(55,677)
Additional paid-in-capital	466,927		446,035
Dividends paid	(19,802)		(3,880)
Accumulated other comprehensive loss	(726)		(229)
Accumulated deficit	(130,454)		(177,362)
Total stockholders' equity	181,012		208,888
Total liabilities and stockholders' equity	$	369,105	$	393,085

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, on a GAAP Basis)

	Year Ended December 31,
	2022		2021
Cash flows from operating activities:
Net income	$	46,908	$	94,887
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	7,381		8,907
Stock-based compensation	13,331		14,422
Provision for doubtful accounts and sales returns	166		(616)
Release of deferred tax asset valuation allowance and other adjustments	—		(64,186)
Other non-cash items	591		1,688
Changes in operating assets and liabilities:
Accounts receivable	(10,065)		(10,399)
Inventory	2,035		(1,826)
Prepaid expenses and other assets	1,627		(2,134)
Accounts payable	103		1,995
Accrued and other liabilities	(1,338)		(5,573)
Deferred revenue	5,361		12,932
Net cash provided by operating activities	66,100		50,097
Cash flows from investing activities:
Proceeds from sales of marketable securities	6,252		6,865
Proceeds from maturities of marketable securities	71,045		88,790
Purchases of marketable securities	(55,411)		(128,554)
Purchases of property and equipment	(10,799)		(5,171)
Net cash provided by (used in) investing activities	11,087		(38,070)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee equity incentive plans	7,038		5,764
Repurchases of common stock	(79,257)		(18,267)
Payments for dividends	(15,922)		(3,880)
Net cash used in financing activities	(88,141)		(16,383)
Net decrease in cash and cash equivalents	(10,954)		(4,356)
Cash and cash equivalents—beginning of period	78,925		83,281
Cash and cash equivalents—end of period	$	67,971	$	78,925
Non-cash investing and financing activities:
Transfers between inventory and property and equipment	$	733	$	94
Purchases of property and equipment included in accounts payable	$	230	$	6

A10 NETWORKS, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

(unaudited, in thousands, except percentages)

	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
GAAP gross profit	$	61,891		$	56,489		$	223,506		$	196,537
GAAP gross margin			79.7%			79.9%			79.7%			78.6%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax			414			398			1,662			1,733
Global distribution center transition expense			—			117			—			655
Non-GAAP gross profit	$	62,305		$	57,004		$	225,168		$	198,925
Non-GAAP gross margin			80.3%			80.7%			80.3%			79.6%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES

TO NON-GAAP TOTAL OPERATING EXPENSES

(unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
GAAP total operating expenses	$	45,625		$	44,644		$	170,427		$	163,149
Non-GAAP adjustments:
Stock-based compensation and related payroll tax			(3,132)			(3,200)			(12,307)			(13,298)
Amortization expense related to acquisition			—			—			—			(505)
Global distribution center transition expense			—			(2,000)			—			(4,408)
Non-GAAP total operating expenses	$	42,493		$	39,444		$	158,120		$	144,938

A10 NETWORKS, INC.

RECONCILIATION OF GAAP INCOME FROM OPERATIONS

TO NON-GAAP OPERATING INCOME

(unaudited, in thousands, except percentages)

	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
GAAP income from operations	$	16,266		$	11,845		$	53,079		$	33,388
GAAP operating margin			21.0%			16.8%			18.9%			13.4%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax			3,546			3,598			13,969			15,031
Amortization expense related to acquisition			—			—			—			505
Global distribution center transition expense			—			2,117			—			5,063
Non-GAAP operating income	$	19,812		$	17,560		$	67,048		$	53,987
Non-GAAP operating margin			25.5%			24.8%			23.9%			21.6%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME

TO EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(unaudited, in thousands, except percentages)

	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
GAAP net income	$	18,030		$	10,728		$	46,908		$	94,887
GAAP net income margin			23.2%			15.2%			16.7%			37.9%
Exclude: Interest and other (income) expense, net			(104)			253			363			1,746
Exclude: Depreciation and amortization			2,473			1,863			8,012			8,907
Exclude: Provision for (benefit from) income taxes			(1,660)			864			5,808			(63,245)
EBITDA			18,739			13,708			61,091			42,295
Exclude: Stock-based compensation and related payroll tax			3,546			3,598			13,969			15,031
Exclude: Global distribution center transition expense			—			2,117			—			5,063
Adjusted EBITDA	$	22,285		$	19,423		$	75,060		$	62,389
Adjusted EBITDA margin			28.7%			27.5%			26.8%			25.0%

A10 NETWORKS, INC.

RECONCILIATION OF ADJUSTED EBITDA (NON-GAAP)

TO TAX EFFECTED NON-GAAP NET INCOME

(unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
Adjusted EBITDA	$	22,285		$	19,423		$	75,060		$	62,389
Reconciling items:
Interest and other income (expense), net	104			(253)			(363)			(1,746)
Depreciation and amortization	(2,473)			(1,863)			(8,012)			(8,907)
Provision for (benefit from) income taxes (1)	(2,516)			(864)			(9,984)			(2,172)
Impairment of investment			1,000			—			1,000			—
Amortization expense related to acquisition			—			—			—			505
Income tax effect of non-GAAP items (2)			(889)			(1,095)			(5,487)			(5,857)
Total	(4,774)			(4,075)			(22,846)			(18,177)
Tax effected non-GAAP net income	17,511			15,348			52,214			44,212
Exclude: Income tax effect of non-GAAP items (2)	889			1,095			5,487			5,857
Non-GAAP net income	$	18,400		$	16,443		$	57,701		$	50,069

(1)In addition to provision for (benefit from) income taxes, includes tax benefit from amended returns of $4,176 thousand in the three months and year ended December 31, 2022 and release of deferred tax asset valuation allowance of $65,417 thousand in the year ended December 31, 2021.

(2)For the three months and year ended December 31, 2022 this represents the tax impact using estimated non-GAAP profit before tax rates of 4.8% and 9.5%, respectively. For the three months and year ended December 31, 2021 this represents the tax impact using estimated non-GAAP profit before tax rates of 6.7% and 11.7%, respectively.

A10 NETWORKS, INC.

Q3 2022 AND Q3 2021 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

(unaudited, in thousands, except per share amounts)

	Three Months Ended
	September 30, 2022		September 30, 2021
GAAP net income	$	12,113	$	74,886
Non-GAAP items:
Stock-based compensation and related payroll tax	3,798		4,201
Global distribution center transition expense	—		(1)
Release of deferred tax asset valuation allowance	—		(65,417)
Total non-GAAP items	3,798		(61,217)
Non-GAAP net income (1)	$	15,911	$	13,669
GAAP net income per share:
Basic	$	0.16	$	0.97
Diluted	$	0.16	$	0.94
Non-GAAP items:
Stock-based compensation and related payroll tax	0.04		0.05
Global distribution center transition expense	—		—
Release of deferred tax asset valuation allowance	—		(0.82)
Total non-GAAP items	0.04		(0.77)
Non-GAAP net income per share: (1)
Basic	$	0.21	$	0.18
Diluted	$	0.20	$	0.17
Weighted average shares used in computing net income per share:
Basic	75,881		77,149
Diluted	77,679		79,927

(1)Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate adjusted net income and earnings per share in the same manner.

A10 NETWORKS, INC.

2020 AND 2019 RECONCILIATION OF GAAP NET INCOME

TO EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(unaudited, in thousands, except percentages)

	Year Ended December 31,
	2020			2019
GAAP net income	$	17,816		$	(17,819)
GAAP net income margin			7.9%			(8.4)%
Exclude: Interest and other (income) expense, net			(1,406)			(682)
Exclude: Depreciation and amortization			11,303			10,028
Exclude: Provision for (benefit from) income taxes			1,323			1,407
EBITDA			29,036			(7,066)
Exclude: Stock-based compensation and related payroll tax			12,817			16,790
Exclude: Litigation and investigation expense (recovery)			30			(1,066)
Exclude: Non-recurring facilities expense			795			425
Exclude: Global distribution center transition expense			2,884			—
Exclude: Restructuring expense			—			2,530
Adjusted EBITDA	$	45,562		$	11,613
Adjusted EBITDA margin			20.2%			5.5%

A10 NETWORKS, INC.

2020 AND 2019 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

(unaudited, in thousands, except per share amounts)

	Year Ended December 31,
	2020		2019
GAAP net income (loss)	$	17,816	$	(17,819)
Non-GAAP items:
Stock-based compensation and related payroll tax	12,817		16,790
Amortization expense related to acquisition	1,011		1,012
Litigation and investigation expense (recovery)	30		(1,066)
Non-recurring facilities expense	795		425
Global distribution center transition expense	2,884		—
Restructuring expense and related taxes	—		2,676
Total non-GAAP items	17,537		19,837
Non-GAAP net income (1)	$	35,353	$	2,018
GAAP net income (loss) per share:
Basic	$	0.23	$	(0.23)
Diluted	$	0.22	$	(0.23)
Non-GAAP items:
Stock-based compensation and related payroll tax	0.16		0.22
Amortization expense related to acquisition	0.01		0.01
Litigation and investigation expense (recovery)	—		(0.01)
Non-recurring facilities expense	0.01		0.01
Global distribution center transition expense	0.04		—
Restructuring expense and related taxes	—		0.03
Total non-GAAP items	0.22		0.26
Non-GAAP net income per share: (1)
Basic	$	0.45	$	0.03
Diluted	$	0.44	$	0.03
Weighted average shares used in computing net income per share:
Basic	77,776		76,080
Diluted	80,019		78,487

(1)Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate adjusted net income and earnings per share in the same manner.