A10 Networks, Inc. (NYSE: ATEN) is engaged as a cybersecurity that focuses on securing applications for edge-cloud and multi-cloud environments. Shares of the secure applications solutions provider are rallying 25% through early trading on Friday, October 29, 2021. Over the past three months, A10 Networks has seen average daily volume of 530,810 shares. However, volume of 1.37 million shares or dollar volume of $24.41 million, has already exchanged hands through early trading Friday.
Shares of A10 Networks are rallying after the company reported third quarter 2021 financial results for the period ending September 30, 2021. The cybersecurity company reported revenues of $65.4 million, growth of 15% year-over-year. Deferred revenue hit a record of $117.1 million, up 15% year-over-year. GAAP net income came in at $74.9 million or $0.94 earnings per diluted share. Net income saw a boost thanks to a non-reoccurring tax benefit. A10 Networks reported adjusted EBITDA of $16.8 million, which is growth compared to last year’s Q3 reading of $12.5 million.
In addition to the solid underlying growth at A10 Networks, the Board of Directors has declared a quarterly dividend and authorized a new share repurchase program. A10 Networks shareholders will receive a quarterly dividend of $0.05 per share, which will be payable December 15, 2021 to shareholders of record on November 12, 2021. The new stock buyback program allows the company to repurchase up to $100 million of its outstanding common shares.
Turning to the fourth quarter, A10 Networks estimates revenue growth to hit 10% year-over-year during the last three months of the year. Management estimates sustained growth momentum into 2022. Growth estimates come as the company sees continued strength in demand for its cybersecurity products and services.
“We achieved strong top- and bottom-line results as our security-led solutions are enabling us to capture market share and driving accelerated growth,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “Long-term deferred revenue has grown 16% year-over-year, outpacing total revenue growth. Our diversified model is enabling us to successfully navigate regional and logistical challenges, as evidenced by our 15% revenue growth and nearly 26% adjusted EBITDA margin validating the business model transformation. The increasing profitability of our business required us to release our full tax valuation allowance, as we now expect to utilize our entire net operating loss carryforwards in future periods. Our business model positions us to meaningfully drive growth and continue to improve the business model. In addition, the strong, sustainable free cash flow has enabled our Board to return capital to stockholders by declaring a quarterly cash dividend and significantly expanding our share repurchase program.”
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