A10 : Sidoti Virtual Small-Cap Conference

Sidoti Virtual Small-Cap Conference

June 12th-13th, 2024

Cautionary Statements & Disclosures

This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on our management's beliefs and assumptions, including statements regarding our future financial performance, strategy, routes to market, technical differentiation, positioning, capital allocation strategy, expansion opportunities, growth, profitability, market growth, as well as market and technology trends.

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 any unforeseen need for capital which may require us to divert funds we may have otherwise used for the dividend program or stock repurchase program, which may in turn negatively impact our ability to administer the quarterly dividends or the repurchase of our common stock; 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 February 29, 2024. 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.

This presentation and the accompanying oral presentation also include certain non-GAAP financial measures including Non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non- GAAP operating margin, Adjusted EBITDA and Non-GAAP EPS. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titles 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 expense, (iii) cyber incident remediation expense, (iv) workforce reduction expense and (v) income tax effect of excluding non-GAAP items

1. to (iv) listed above. 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 non- GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, (ii) cyber incident remediation expense and (iii) workforce reduction 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) impairment expense, (iii) cyber incident remediation expense and (iv) workforce reduction 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) impairment expense, (iii) cyber incident remediation expense and (iv) workforce reduction 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 income taxes, (iv) stock-based compensation and related payroll tax, (v) impairment expense, (vi) workforce reduction expense and (vii) cyber incident remediation expense. We define Adjusted EBITDA margin as our Adjusted EBITDA divided by our GAAP revenue.

A reconciliation between GAAP and non-GAAP financial measures can be found in the appendix to this document and in the accompany financial results press release.

A10 Mission

Enabling business-critical networks that are secure, available and efficient

Transformation to Deliver

Sustained Business Results

• Evolved to deliver durable business results even in challenging environment
• Growth driven by customer need for cybersecurity and efficient infrastructure
• Aligned commercial execution with product roadmap
• Focus on business model

• Expanding reach into large Enterprise market
• Continued strength and expansion into Tier 1 Service Providers around the world
• Secular tailwinds in cybersecurity
• Other tailwinds in 5G, rural broadband and cloud transformation

• Value creation based on growth, gross margin and continuous productivity
• Customer focus driven by better business outcomes
• Track record of demonstrating operating leverage and multiple expansion opportunity

Track Record of Profitable Growth

		25.0%	26.8%	28.3%
	20.2%
~0.9%
2014-2019	2020	2021	2022	2023

EBITDA %

		$0.63	$0.74	$0.73
	$0.26
~($0.43)
2014-2019	2020	2021	2022	2023

Non-GAAP EPS

2023 FY

Revenue

$252M

EBITDA EPS

28% $0.73

Note: All figures Non-GAAP; 1. 2014-2019 CAGR; 2. 2014-2019 average EBITDA % of Revenue; 3. 2014-2019 average diluted non-GAAP EPS $

Changing Buying Decisions are

Opportunities for Growth

Increased cyber risk		Technologies like AI		Hybrid Operating
creates need to holistically		represent a Leap Forward		Models offer
address infrastructure and		for Cyber Defense and		flexible path for
network security		Network Architecture		business outcomes

Growth Drivers

CybersecurityInfrastructure

• Distributed denial-of-service (DDoS) mitigation to counter growing attack sophistication and volume
• Expending Security categories and new threat vectors to gain share with common A10 Defend Portfolio
• Cloud based Security protection in conjunction with On-Prem solutions

• Hybrid architectures to accommodate movement of applications to any consumption model
• Conversion of license model to subscription and consumption models
• Market share gain by aligning solutions with customer economic goals

Our Investments are Aligned to Two Themes

Infrastructure Evolution		Cybersecurity

12

HYBRID	CYBERSECURITY
Enable on-premises,	Leading network
private cloud and	cybersecurity insights
public cloud	and tools

Business Value Drivers

1

Sell more products to installed base - better ways to manage data growth, becoming more secure

2

Lead with cybersecurity to create new opportunities - TAM creation vs. expansion

3

Drive Enterprise growth with Hybrid solutions - better solutions that align with customer economic goals vs. technology

Leverage common platform and management layer for best-in-class technical performance that creates customer ROI

Large Installed Base Opportunity for Growth

Enable customers to deploy		7,000+
hybrid solutions on-premises
	Customers
and in the cloud

Of workloads are 65% cloud ready by 2027

2023 % of Revenue from Public and Private 22% Cloud Customers2

21 of Top 50	8 of Top 10
Fortune	Cloud Providers
Global 500
15 of Top 25	9 of Top 10
Video Gaming	Telecom
Companies	Operators

1. Gartner, 2023 Planning Guide for Cloud, Data Center and Edge Infrastructure
2. Based on end-customer revenue data