Overview

* A10 Networks ( ATEN ) Q3 revenue grows 11.9% yr/yr, beating analyst expectations

* Company repurchased 634,000 shares, returning $15.3 mln to investors

Outlook

* Company highlights alignment with AI and cybersecurity trends as key growth drivers

* A10 Networks ( ATEN ) emphasizes operational discipline to drive profitability and cash flow

* Company focuses on disciplined execution for sustained growth

Result Drivers

* AI INFRASTRUCTURE - Co attributes revenue growth to AI infrastructure buildouts serving as key catalysts

* SECURITY DEMAND - Increasing demand for security and performance in infrastructure due to accelerating cyber threats

* OPERATIONAL DISCIPLINE - Co cites operational discipline as crucial for converting revenue growth into profitability and cash flow

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $74.68 $70.70

Revenue mln mln (7

Analysts

)

Q3 Net $12.19

Income mln

Q3 EBIT $12.99

mln

Q3 Gross $59.85

Profit mln

Q3 $46.85

Operatin mln

g

Expenses

Q3 $13.99

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for A10 Networks Inc ( ATEN ) is $23.00, about 21.9% above its November 3 closing price of $17.97

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)