reliable security always

CONFIDENTIAL | DO NOT DISTRIBUTE 1.1

NEEDHAM GROWTH CONFERENCE

JANUARY 2019

Reliable Security Always


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 projections for our future operating results, our expectations for future revenue growth, profitability and

market opportunities, the performance of our products, our future strategies, our ability to penetrate certain markets, expec ted product launches and the

general growth of our business.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results to

differ materially from those anticipated or implied by our forward-looking statements. These factors include, but are not limited to, successfully executing our

strategies, market adoption of our products, successfully anticipating market needs and opportunities, timely development of new products and features,

achieving or maintaining profitability, loss or delay of expected purchases, attracting and retaining new end-customers, maintaining and enhancing our brand

and reputation, growth in markets relating to network security, the success of any future acquisitions or investments, our ab ility to shorten our close cycle, the

ability of our channel partners to sell our products, our presence in international markets, and other factors described in our quarterly reports on Form 10-Q,

annual reports on Form 10-K and other filings made with the Securities and Exchange Commission, to which your attention is directed. We assume no

responsibility for the accuracy and completeness of the forward-looking statements and disclaim any obligation to update information contained in these

forward-looking statements.

This presentation and the accompanying oral presentation also include certain non-GAAP financial measures. Non-GAAP financial measures have limitations

as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under U.S . GAAP. Definitions of our non-

GAAP financial measures and a reconciliation between GAAP and non-GAAP financial measures can be found in the appendix to this document. A

reconciliation of non-GAAP guidance measures to corresponding GAAP measures on a forward-looking basis is not available due to high variability and low

visibility with respect to the charges which are excluded from these non-GAAP measures.


RELIABLE

SECURITY

ALWAYS

THE A10 VISION

Enabling intelligent

automation to ensure

business critical applications

are reliable, secure and

available always

3


THE MARKET IS TRANSFORMING


APPLICATION DELIVERY

Advanced Core Operating System (ACOS)

Secure

Application

Services

Platform

SECURITY

SECURITY 5G CLOUD

Thunder TPSDDoS Protection

HYPERSCALE FLEXIBLE SOLUTIONS

Thunder

SSLiSSL Visibility

Thunder CFWConverged Firewall

Thunder ADCApp Delivery

Controller

Thunder CGNIPv4 Preservation


<1msLatency in 5G

is critical for new use

cases3

20GbpsDownlink cell site video1

100XMore devices connected

per km2

Source: Network World, Ericsson, GSMA

5G: A MAJOR TRANSFORMATION


125BIoT devices could be

weaponized by 2030

ESCALATING SECURITY THREATS

4XGrowth in size of average

DDoS attack over 2 years

29%Of Internet traffic from

botnets

Source: SecurityIntelligence.com, IHS Markit, SC Magazine


928cloud apps on average per

enterprise2

5 Cloudson average per enterprise1

135MOffice 365 users

worldwide3

MULTICLOUD MIGRATION

1. Rightscale ; 2. Symantec ; 3. Reuters


A10’s Offerings for 4G and 5G

Evolved

Packet coreGi-LAN

(IP Services)

MEC

(Edge Cloud)

CGN

Visibility

250 SP

Customers

Internet

L4/L7

Firewall

Roaming

Firewall

GTP

Director

CGN Gi/SGi

Firewall

CGN Visibility TPS


A10: Well-Positioned in 5G

• A10’s proven strength in hyper-scalability, low latency, security and CGN

consolidation, and AI-driven automation

• Strong anti-DDoS attack solutions and integrated security and CGN analytic

platform

• High-end hardware and SDN/NFV/container solutions

• Strong presence with global service providers

• Partners are important. Ericsson & NEC are strong partners

Scale, performance, low latency, security,

extreme reliability and automation


5G IS TRANSFORMATIVE:

A Large and Growing Market

$-

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

2018 2019 2020 2021 2022 2023

DO

LL

AR

S (

M)

Aggregate TAM Aggregate SAM

CAGR for TAM:

~13%

CAGR for SAM:

~50%


CFW

SSLi

TPS

Carrier Class

FirewallURL

Filtering

SSL

Decryption/Encryption

Multi-Vector

DDoS Protection

Traffic

Steering)

High-performance Security Solutions

Ease-of-use

Application

FirewallSecure Web

GatewayIntegrated

Security

Third-party Security Solutions

Integration


The company adopted ASC 606 accounting standard effective January 1, 2018, all prior periods are based on ASC 605 standard

Represents Security Product Revenue as a % of total Product Revenue.

SECURITY TRANSFORMATION IS UNDERWAY

8%

92%

2014

Security ADC, CGN

26%

74%

2017

Security ADC, CGN

+30%

2018 Goal

Security ADC, CGN


135,000,000 USERS 6,000,000 ORGANIZATIONS 48,000,000 USERS

RELIABLE SECURITY AT SCALE

14

40 DATA CENTERS

36 GLOBAL REGIONS


MULTI-CLOUD DC:

Performance, Agile, Flexible & Automation

SSL SECURITYO365 CLOUD/HCADC

ANY PLATFORM

BARE METAL

VIRTUAL

CONTAINER

APPLIANCE

PERPETUAL

FLEXPOOL

SUBSCRIPTION

ANYWAY

On-premises,

Cloud


HARMONY CONTROLLER:

Multi-cloud orchestrator

Simple Integrated Intelligent Automation

ACTIONABLEINTEGRATED

REAL-TIMEMODERN

On-premises,

Cloud


HARMONY CONTROLLER:

Unprecedented Control & Visibility

Descriptive Analytics

• Health Status

• Logs & Events

PERFORMANCE

MONITORING

Diagnostic Analytics

• Per-App metrics

• Trend Analysis

FASTER

TROUBLESHOOTING

ADC

SSLi

DC Firewall

Carrier Firewall, CGN

O365...

INTEGRATED

Prescriptive Analytics

• Policy updates

• Behavior Analysis

• Correlation

ACTIONALBE

INSIGHTS


59%Enterprise, Cloud

10 of Top 10Telecom Operators

8 of Top 12Video Gaming Companies

5 of Top 10Media Companies

2 of Top 3 Cloud Providers

20 of Top 50Fortune Global 500

PROTECTING MAJOR BUSINESSES GLOBALLY

41%Service Provider

Enterprise/Service Provider revenue mix is as of 3Q18.

>6,500 customers as of 3Q18


New TeamOperational

Excellence

A10’s EVOLUTION: BEYOND TECH LEADERSHIP

KPI focus

Go-to-market excellence

Profitable growth

Disciplined investing

Tom Constantino, CFO

Western Digital, HP, Operational

excellence focused

Chris White, EVP Sales

Proofpoint, 10 years security

Gunter Reiss, VP, WW Marketing

Ericsson

Technology

Vision

Standalone products to

solutions focused

Controller architecture with

machine learning

Built in security with analytics

and enhanced automation

Part

ners

Re

se

llers


FINANCIAL PROFILE


FINANCIAL PERFORMANCE HIGHLIGHTS

$ Millions (except EPS)

Income Statement Summary: Q318 Q317 Q318 YTD Q317 YTD

Revenue $ 60.5 $ 62.0 $ 170.4 $ 179.9

Gross Margin % 78.8% 78.3% 78.4% 77.6%

Operating Margin % 4.2% 4.9% (1.4)% 1.9%

EPS $ 0.03 $ 0.03 $ (0.04) $ 0.04

Balance Sheet & Cash Flow Summary: Q318 Q317 Q318 YTD Q317 YTD

Cash & Marketable Security $ 123.6 $ 123.9 $ 123.6 $ 123.9

Accounts Receivable $ 51.1 $ 49.1 $ 51.1 $ 49.1

Deferred Revenue $ 94.9 $ 90.4 $ 94.9 $ 90.4

Debt - - - -

Free Cash Flow $ (3.9) $ (6.5) $ (7.8) $ 5.8

Numbers may not sum due to rounding. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.a10networks.com

Gross Margin, Operating Margin and EPS are Non-GAAP Financial Measures. See Appendix for reconciliation to most comparable GAAP financial measures.

The company adopted ASC 606 accounting standard effective January 1, 2018, all prior periods are based on ASC 605 standard.

http://investors.a10networks.com/CorporateProfile.aspx?iid=4433033


RETURN TO REVENUE GROWTH


$142

$180$196

$227 $235

$180 $170

2013 2014 2015 2016 2017 YTD 2017 YTD 2018

$Millions


PRODUCT AND SERVICE REVENUE


79%75% 69%

67% 64%

65% 62%

21%

25%31%

33% 36%

35%38%

2013 2014 2015 2016 2017 YTD 2017 YTD 2018

$Millions

Product Service

$170

$235$227

$196$180

$142

$180


47%46% 44% 42% 46%

46%40%

53%

54%56%

58%54%

54%60%

2013 2014 2015 2016 2017 YTD 2017 YTD 2018

$Millions

SP Enterprise

REVENUE BY CUSTOMER VERTICAL


$170

$235$227

$196$180

$142

$180


REVENUE BY GEOGRAPHY


48%48%

53% 51% 49%51%

46%

28%

26%18%

23% 22%

21%23%

11%

10%12%

13% 14%

15%16%8%

11%

14%

10% 12%

10%12%

5%

5%

3%

3%3%

3%3%

2013 2014 2015 2016 2017 YTD 2017 YTD 2018

$Millions

United States Japan APAC ex Japan EMEA Other

$170

$235$227

$196$180

$142

$180


Lee Chen

Founder & CEO

THE A10 LEADERSHIP TEAM

Chris White

EVP, WW Sales

Raj Jalan

CTO

Rob Cochran

VP, General Counsel

Tom Constantino

CFO

Gunter Reiss

VP, WW Marketing &

BD

Todd Kleppe

VP, Global Operations

Eric Kwok

VP, WW Support

Laurie Buzzell

VP, WW HR


THANK YOU

Reliable Security Always


APPENDIX


Q318 Q317 Q318 YTD Q317 YTD

Gross Margin % - GAAP 78.5% 77.6% 77.6% 77.0%

Stock-based compensation 0.3 0.6 0.7 0.6

Gross Margin % – Non-GAAP 78.8% 78.3% 78.4% 77.6%

$ Millions

GAAP to NON-GAAP



EPS $ – GAAP $ (0.02) $ (0.03) $ (0.36) $ (0.17)


Litigation and investigation expense (benefit) 0.02 - 0.12 -

Amortization expense related to acquisition - - 0.01 0.01

EPS $ – Non-GAAP $ 0.03 $ 0.03 $ (0.04) $ 0.04



Q318 Q317 Q318 YTD Q317 YTD

Total operating expenses $ – GAAP $ 49.1 $ 49.9 $ 157.6 $ 149.7

Stock-based compensation (2.1) (4.1) (11.8) (12.8)

Litigation and investigation expense (benefit) (1.5) - (9.0) -

Amortization expense related to acquisition (0.3) (0.3) (0.8) (0.8)

Total operating expenses $ – Non-GAAP $ 45.1 $ 45.5 $ 136.0 $ 136.2

$ Millions

GAAP to NON-GAAP



Total operating expenses %– GAAP 81% 80% 92% 83%

Stock-based compensation (4) (7) (7) (7)

Litigation and investigation expense (benefit) (3) - (5) -

Amortization expense related to acquisition - - - -

Total operating expenses % – Non-GAAP 75% 73% 80% 76%

% of Revenue



Q318 Q317 Q318 YTD Q317 YTD

Loss from operations $ – GAAP $ (1.6) $ (1.7) $ (25.3) $ (11.2)


Litigation and investigation expense (benefit) 1.5 - 9.0 -

Amortization expense related to acquisition 0.3 0.3 0.8 0.8

Income (loss) from operations $ – Non-GAAP $ 2.5 $ 3.1 $ (2.4) $ 3.4

GAAP to NON-GAAP



Loss from operations %– GAAP (3)% (3)% (15)% (6)%

Stock-based compensation 4 7 8 8

Litigation and investigation expense (benefit) 3 - 5 -

Amortization expense related to acquisition - - - -

Income (loss) from operations % – Non-GAAP 4% 5% (1)% 2%

$ Millions

% of Revenue



GAAP to NON-GAAP

2013 2014 2015 2016 2017

Gross Margin % - GAAP 76.4% 76.1% 75.3% 76.1% 77.4%

Stock-based compensation 0.2 0.6 0.7 0.5 0.6

Gross Margin % - Non-GAAP 76.6% 76.7% 76.1% 76.5% 77.9%

Loss from operations $ - GAAP $ (22.8) $ (30.3) $ (40.3) $ (20.6) $ (10.4)

Stock-based compensation 4.3 12.4 16.9 16.9 17.2

Litigation and investigation expense (benefit) 7.3 (7.0) 0.7 0.8 -

Amortization expense related to acquisition - - - 0.5 1.0

Income (loss) from operations $ - Non-GAAP $ (11.2) $ (24.9) $ (22.8) $ (2.3) $ 7.8

$Millions




reliable security always

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