A10 Networks' Q4 2024: Discrepancies in Growth Rates, Revenue Expectations, and Sales Transformation
Earnings DecryptTuesday, Feb 4, 2025 9:17 pm ET

These are the key contradictions discussed in A10 Networks' latest 2024Q4 earnings call, specifically including: Growth Rates in the Enterprise Segment, Strategic Outlook on Growth, Revenue Growth Expectations, and Sales Cycle and Transformation:
Revenue Growth and Market Normalization:
- A10 Networks reported 5% growth for Q4 and 4% growth for the year, with service provider revenue increasing by 2.5% year-over-year.
- The growth was driven by the normalization of service provider spending patterns and an improving competitive position with both customer segments, particularly in AI and security-related investments.
Enterprise Revenue Expansion:
- Enterprise revenue increased 6% for the year, faster than the consolidated revenue growth of 4%.
- This was attributed to investments made to drive demand from enterprise customers, bolstered by a compelling offering and alignment with AI trends.
Security Revenue Growth:
- Security-led revenue increased 6% for the quarter and 9% for the year, representing 63% of A10's total revenue.
- The growth in security revenue was driven by the development of cybersecurity solutions, which made A10's offerings less optional and mitigated short-term spending fluctuations.
Regional Revenue Performance:
- A10 delivered growth in all key regions: North America, Asia Pacific, Japan, and EMEA.
- This performance was attributed to the improving market conditions for North American service providers and the strength of A10's technical solutions in all markets.
ATEN Market Cap, Total Revenue YoY...
Revenue Growth and Market Normalization:
- A10 Networks reported 5% growth for Q4 and 4% growth for the year, with service provider revenue increasing by 2.5% year-over-year.
- The growth was driven by the normalization of service provider spending patterns and an improving competitive position with both customer segments, particularly in AI and security-related investments.
Enterprise Revenue Expansion:
- Enterprise revenue increased 6% for the year, faster than the consolidated revenue growth of 4%.
- This was attributed to investments made to drive demand from enterprise customers, bolstered by a compelling offering and alignment with AI trends.
Security Revenue Growth:
- Security-led revenue increased 6% for the quarter and 9% for the year, representing 63% of A10's total revenue.
- The growth in security revenue was driven by the development of cybersecurity solutions, which made A10's offerings less optional and mitigated short-term spending fluctuations.
Regional Revenue Performance:
- A10 delivered growth in all key regions: North America, Asia Pacific, Japan, and EMEA.
- This performance was attributed to the improving market conditions for North American service providers and the strength of A10's technical solutions in all markets.

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