A10 Networks Reports Financial Results for the Third Quarter of 2024

Improving Demand from Service Providers and continued Enterprise Execution Drive Revenue Growth, Profitability

A10 Networks, Inc. (NYSE: ATEN or the “Company”), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its third quarter ended September 30, 2024.

Third Quarter 2024 Financial Summary

• Revenue of $66.7 million, compared to $57.8 million in the third quarter of 2023. Revenue for the first nine months of 2024 was $187.5 million, compared to $181.3 million for the first nine months of 2023.
• GAAP gross margin of 80.5%; non-GAAP gross margin of 81.3% as a result of continued focus on operational execution of business model goals.
• GAAP net income of $12.6 million (18.9% of revenue), or $0.17 per diluted share, compared to net income of $6.5 million (11.2% of revenue) or $0.09 per diluted share in the third quarter of 2023.
• Non-GAAP net income of $15.9 million (23.9% of revenue), or $0.21 per diluted share (non-GAAP EPS) compared to non-GAAP net income of $12.0 million (20.8% of revenue) or $0.16 per diluted share in the third quarter of 2023.
• The Company completed the quarter with cash and investments of $182.1 million, up from $159.3 million as of December 31, 2023. A10 generated $21.0 million in cash from operations during the quarter.
• The Company returned $13.9 million to investors, having repurchased 747,000 shares at an average price of $12.64 per share for a total of $9.4 million and having paid $4.4 million in cash dividends in the quarter.
• The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable December 2, 2024, to stockholders of record at the close of business on November 18, 2024. The Board of Directors also authorized a new common stock repurchase program for up to $50 million.

A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

“Our third quarter results reflect the strength of our business and the value we provide our customers,” commented Dhrupad Trivedi, A10 Network’s President and Chief Executive Officer. “Revenue from Enterprise customers continues to grow, in line with our stated strategy. Revenue from North American service provider customers resumed growth, demonstrating the market’s need for our evolving product portfolio. Our solutions remain designed into customer buildout plans, and while sales cycles have elongated and spending decisions are more carefully considered, our solutions are increasingly critical for evolving networks.”

“A10 continues to leverage AI technology and we announced plans for a blueprint to integrate AI into multiple facets of our business including enhanced security solutions to address new threats posed by AI traffic,” added Trivedi. “We have accelerated our investment in R&D consistent with our strategy. Building upon our industry-leading operating system, the new A10 Control platform provides integrated management and ease of use across our best-in-class security and infrastructure solutions.”

“The overall market environment remains volatile, and A10 is navigating these challenges efficiently based on the durability of our business,” concluded Trivedi. “Security-led revenue now represent 63% of total revenue in the quarter, demonstrating A10’s continued evolution to a cybersecurity-focused organization that increasingly leverages AI tools to benefit customers. We have aligned our cost structure to enable consistent profitability despite macro uncertainty, and when the market improves, we deliver increased operating leverage.”

Conference Call

Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, Thursday, November 7, 2024, to discuss these results. Interested parties may access the conference call by dialing [phone] (toll-free) or [phone] and referencing access code: 713043.

A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Network’s website at investors.a10networks.com. The webcast will be archived for at least 90 days. A telephonic replay of the conference call will be available two hours after the conclusion of the live call and will run for seven days and may be accessed by dialing [phone] (toll-free) or [phone] and entering the passcode 350985.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding our quarterly dividend payments and stock repurchase program, strategy, including as to AI, growth, demand, positioning, products, profitability, revenue and cash expectations for 2024, market trends, investments and return of capital. 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.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we refer to certain non-GAAP financial measures, including non-GAAP net income, non-GAAP net income per basic and diluted share (or non-GAAP EPS), non-GAAP gross profit and gross margin, non-GAAP operating income and operating margin, non-GAAP operating expenses, Adjusted EBITDA and Adjusted EBITDA margin. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled 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) workforce reduction expense, (iv) cyber incident remediation expense, (v) one-time tax planning expense, (vi) one-time legal expense and (vii) income tax effect of non-GAAP items (i) to (vi) 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) workforce reduction expense and (iii) cyber incident remediation expense. We define non-GAAP gross margin as our non-GAAP gross profit 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) workforce reduction expense, (iv) cyber incident remediation expense, (v) one-time tax planning expense and (vi) one-time legal expense. 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) workforce reduction expense, (iv) cyber incident remediation expense, (v) one-time tax planning expense and (vi) one-time legal expense. We define non-GAAP operating margin as our non-GAAP operating income divided by our GAAP revenue. 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, (vii) cyber incident remediation expense, (viii) one-time tax planning expense and (ix) one-time legal expense. We define Adjusted EBITDA margin as our Adjusted EBITDA divided by our GAAP revenue.

Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results.

About A10 Networks

A10 Networks (NYSE: ATEN) provides security and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments. Our 7000+ customers span global large enterprises and communications, cloud and web service providers who must ensure business-critical applications and networks are secure, available, and efficient. Founded in 2004, A10 Networks is based in San Jose, Calif. and serves customers globally. For more information, visit A10networks.com and follow us at A10Networks.

The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in the United States and other countries. All other trademarks are the property of their respective owners.

Source: A10 Networks, Inc.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts, on a GAAP Basis)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Net revenue:

 

 

 

 

 

 

 

Products

$

36,862

 

$

30,260

 

 

$

96,464

 

$

100,532

Services

 

29,859

 

 

27,515

 

 

 

91,028

 

 

80,751

Total net revenue

 

66,721

 

 

57,775

 

 

 

187,492

 

 

181,283

Cost of net revenue:

 

 

 

 

 

 

 

Products

 

7,531

 

 

6,815

 

 

 

21,143

 

 

22,334

Services

 

5,508

 

 

4,194

 

 

 

15,378

 

 

12,354

Total cost of net revenue

 

13,039

 

 

11,009

 

 

 

36,521

 

 

34,688

Gross profit

 

53,682

 

 

46,766

 

 

 

150,971

 

 

146,595

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

21,011

 

 

21,324

 

 

 

61,678

 

 

64,526

Research and development

 

15,734

 

 

17,620

 

 

 

44,533

 

 

43,250

General and administrative

 

6,494

 

 

5,613

 

 

 

19,188

 

 

18,177

Total operating expenses

 

43,239

 

 

44,557

 

 

 

125,399

 

 

125,953

Income from operations

 

10,443

 

 

2,209

 

 

 

25,572

 

 

20,642

Non-operating income, net:

 

 

 

 

 

 

 

Interest income

 

1,634

 

 

1,766

 

 

 

5,077

 

 

3,401

Other income, net

 

2,312

 

 

987

 

 

 

5,943

 

 

653

Non-operating income, net

 

3,946

 

 

2,753

 

 

 

11,020

 

 

4,054

Income before provision for (benefit from) income taxes

 

14,389

 

 

4,962

 

 

 

36,592

 

 

24,696

Provision for (benefit from) income taxes

 

1,752

 

 

(1,507

)

 

 

4,753

 

 

2,643

Net income

$

12,637

 

$

6,469

 

 

$

31,839

 

$

22,053

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.17

 

$

0.09

 

 

$

0.43

 

$

0.30

Diluted

$

0.17

 

$

0.09

 

 

$

0.42

 

$

0.29

Weighted-average shares used in computing net income per share:

 

 

 

 

 

 

 

Basic

 

73,823

 

 

74,526

 

 

 

74,200

 

 

74,184

Diluted

 

74,780

 

 

75,807

 

 

 

75,236

 

 

75,639

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

(unaudited, in thousands, except per share amounts)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

GAAP net income

$

12,637

 

 

$

6,469

 

 

$

31,839

 

 

$

22,053

 

Non-GAAP items:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

4,516

 

 

 

4,255

 

 

 

12,814

 

 

 

11,752

 

Impairment expense

 

—

 

 

 

2,975

 

 

 

—

 

 

 

2,975

 

Workforce reduction expense

 

—

 

 

 

2,437

 

 

 

—

 

 

 

4,298

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

732

 

One-time tax planning expense

 

100

 

 

 

—

 

 

 

500

 

 

 

—

 

One-time legal expense

 

—

 

 

 

—

 

 

 

71

 

 

 

—

 

Income tax-effect of non-GAAP items

 

(1,327

)

 

 

(4,140

)

 

 

(3,343

)

 

 

(5,358

)

Total non-GAAP items

 

3,289

 

 

 

5,527

 

 

 

10,042

 

 

 

14,399

 

Non-GAAP net income

$

15,926

 

 

$

11,996

 

 

$

41,881

 

 

$

36,452

 

 

 

 

 

 

 

 

 

GAAP net income per share:

 

 

 

 

 

 

 

Basic

$

0.17

 

 

$

0.09

 

 

$

0.43

 

 

$

0.30

 

Diluted

$

0.17

 

 

$

0.09

 

 

$

0.42

 

 

$

0.29

 

Non-GAAP items:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

0.06

 

 

 

0.06

 

 

 

0.17

 

 

 

0.15

 

Impairment expense

 

—

 

 

 

0.04

 

 

 

—

 

 

 

0.04

 

Workforce reduction expense

 

—

 

 

 

0.03

 

 

 

—

 

 

 

0.06

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

0.01

 

One-time tax planning expense

 

—

 

 

 

—

 

 

 

0.01

 

 

 

—

 

One-time legal expense

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax-effect of non-GAAP items

 

(0.02

)

 

 

(0.06

)

 

 

(0.04

)

 

 

(0.07

)

Total non-GAAP items

 

0.04

 

 

 

0.07

 

 

 

0.14

 

 

 

0.19

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

Basic

$

0.22

 

 

$

0.16

 

 

$

0.56

 

 

$

0.49

 

Diluted

$

0.21

 

 

$

0.16

 

 

$

0.56

 

 

$

0.48

 

Weighted average shares used in computing net income per share:

 

 

 

 

 

 

 

Basic

 

73,823

 

 

 

74,526

 

 

 

74,200

 

 

 

74,184

 

Diluted

 

74,780

 

 

 

75,807

 

 

 

75,236

 

 

 

75,639

 

Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because companies may not all calculate adjusted net income and earnings per share in the same manner.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except par value, on a GAAP Basis)

 

September 30, 2024

 

December 31, 2023

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

78,063

 

 

$

97,244

 

Marketable securities

 

104,043

 

 

 

62,056

 

Accounts receivable, net of allowances of $1,171 and $405, respectively

 

64,949

 

 

 

74,307

 

Inventory

 

23,417

 

 

 

23,522

 

Prepaid expenses and other current assets

 

13,365

 

 

 

14,695

 

Total current assets

 

283,837

 

 

 

271,824

 

Property and equipment, net

 

37,313

 

 

 

29,876

 

Goodwill

 

1,307

 

 

 

1,307

 

Deferred tax assets, net

 

62,632

 

 

 

62,725

 

Other non-current assets

 

22,658

 

 

 

24,077

 

Total assets

$

407,747

 

 

$

389,809

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

7,544

 

 

$

7,024

 

Accrued liabilities

 

29,985

 

 

 

21,388

 

Deferred revenue

 

89,509

 

 

 

82,657

 

Total current liabilities

 

127,038

 

 

 

111,069

 

Deferred revenue, non-current

 

54,710

 

 

 

58,677

 

Other non-current liabilities

 

8,729

 

 

 

12,187

 

Total liabilities

 

190,477

 

 

 

181,933

 

 

 

 

 

Stockholders' equity:

Common stock, $0.00001 par value: 500,000 shares authorized; 90,249 and 89,003 shares issued and 73,783 and 74,359 shares outstanding, respectively

 

1

 

 

 

1

 

Treasury stock, at cost: 16,467 and 14,644 shares, respectively

 

(175,230

)

 

 

(150,909

)

Additional paid-in-capital

 

501,918

 

 

 

486,958

 

Dividends paid

 

(50,988

)

 

 

(37,619

)

Accumulated other comprehensive income (loss)

 

214

 

 

 

(71

)

Accumulated deficit

 

(58,645

)

 

 

(90,484

)

Total stockholders' equity

 

217,270

 

 

 

207,876

 

Total liabilities and stockholders' equity

$

407,747

 

 

$

389,809

 

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, on a GAAP Basis)

 

Nine Months Ended September 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net income

$

31,839

 

 

$

22,053

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

8,248

 

 

 

6,845

 

Stock-based compensation

 

12,284

 

 

 

11,180

 

Other non-cash items

 

(1,013

)

 

 

774

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

8,378

 

 

 

14,056

 

Inventory

 

(1,911

)

 

 

(5,313

)

Prepaid expenses and other assets

 

753

 

 

 

2,033

 

Accounts payable

 

(1,820

)

 

 

(1,183

)

Accrued liabilities

 

5,139

 

 

 

(17,384

)

Deferred revenue

 

2,885

 

 

 

8,722

 

Net cash provided by operating activities

 

64,782

 

 

 

41,783

 

Cash flows from investing activities:

 

 

 

Proceeds from sales of marketable securities

 

22,536

 

 

 

42,252

 

Proceeds from maturities of marketable securities

 

66,446

 

 

 

54,007

 

Purchases of marketable securities

 

(127,288

)

 

 

(75,064

)

Capital expenditures

 

(9,886

)

 

 

(7,752

)

Net cash provided by (used in) investing activities

 

(48,192

)

 

 

13,443

 

Cash flows from financing activities:

 

 

 

Proceeds from issuance of common stock under employee equity incentive plans

 

1,919

 

 

 

2,996

 

Repurchase of common stock

 

(24,321

)

 

 

(8,672

)

Payments for dividends

 

(13,369

)

 

 

(13,369

)

Net cash used in financing activities

 

(35,771

)

 

 

(19,045

)

Net increase (decrease) in cash and cash equivalents

 

(19,181

)

 

 

36,181

 

Cash and cash equivalents—beginning of period

 

97,244

 

 

 

67,971

 

Cash and cash equivalents—end of period

$

78,063

 

 

$

104,152

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

Transfers between inventory and property and equipment

$

2,015

 

 

$

1,445

 

Purchases of property and equipment included in accounts payable

$

2,340

 

 

$

2,672

A10 NETWORKS, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

(unaudited, in thousands, except percentages)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

GAAP gross profit

$

53,682

 

 

$

46,766

 

 

$

150,971

 

 

$

146,595

 

GAAP gross margin

 

80.5

%

 

 

80.9

%

 

 

80.5

%

 

 

80.9

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

534

 

 

 

512

 

 

 

1,568

 

 

 

1,373

 

Workforce reduction expense

 

—

 

 

 

—

 

 

 

—

 

 

 

42

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

Non-GAAP gross profit

$

54,216

 

 

$

47,278

 

 

$

152,539

 

 

$

148,013

 

Non-GAAP gross margin

 

81.3

%

 

 

81.8

%

 

 

81.4

%

 

 

81.6

%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES

TO NON-GAAP TOTAL OPERATING EXPENSES

(unaudited, in thousands)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

GAAP total operating expenses

$

43,239

 

 

$

44,557

 

 

$

125,399

 

 

$

125,953

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

(3,982

)

 

 

(3,743

)

 

 

(11,246

)

 

 

(10,379

)

Impairment expense

 

—

 

 

 

(2,975

)

 

 

—

 

 

 

(2,975

)

Workforce reduction expense

 

—

 

 

 

(2,437

)

 

 

—

 

 

 

(4,256

)

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

(729

)

One-time tax planning expense

 

(100

)

 

 

—

 

 

 

(500

)

 

 

—

 

One-time legal expense

 

—

 

 

 

—

 

 

 

(71

)

 

 

—

 

Non-GAAP total operating expenses

$

39,157

 

 

$

35,402

 

 

$

113,582

 

 

$

107,614

A10 NETWORKS, INC.

RECONCILIATION OF GAAP INCOME FROM OPERATIONS

TO NON-GAAP OPERATING INCOME

(unaudited, in thousands, except percentages)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

GAAP income from operations

$

10,443

 

 

$

2,209

 

 

$

25,572

 

 

$

20,642

 

GAAP operating margin

 

15.7

%

 

 

3.8

%

 

 

13.6

%

 

 

11.4

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation and related payroll tax

 

4,516

 

 

 

4,255

 

 

 

12,814

 

 

 

11,752

 

Impairment expense

 

—

 

 

 

2,975

 

 

 

—

 

 

 

2,975

 

Workforce reduction expense

 

—

 

 

 

2,437

 

 

 

—

 

 

 

4,298

 

Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

732

 

One-time tax planning expense

 

100

 

 

 

—

 

 

 

500

 

 

 

—

 

One-time legal expense

 

—

 

 

 

—

 

 

 

71

 

 

 

—

 

Non-GAAP operating income

$

15,059

 

 

$

11,876

 

 

$

38,957

 

 

$

40,399

 

Non-GAAP operating margin

 

22.6

%

 

 

20.6

%

 

 

20.8

%

 

 

22.3

%

A10 NETWORKS, INC.

RECONCILIATION OF GAAP NET INCOME TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(unaudited, in thousands, except percentages)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

GAAP net income

$

12,637

 

 

$

6,469

 

 

$

31,839

 

 

$

22,053

 

GAAP net income margin

 

18.9

%

 

 

11.2

%

 

 

17.0

%

 

 

12.2

%

 

 

 

 

 

 

 

 

Exclude: Interest and other income, net

 

(3,946

)

 

 

(2,753

)

 

 

(11,020

)

 

 

(4,054

)

Exclude: Depreciation and amortization

 

2,741

 

 

 

2,537

 

 

 

8,248

 

 

 

6,845

 

Exclude: Provision for income taxes

 

1,752

 

 

 

(1,507

)

 

 

4,753

 

 

 

2,643

 

EBITDA

 

13,184

 

 

 

4,746

 

 

 

33,820

 

 

 

27,487

 

Exclude: Stock-based compensation and related payroll tax

 

4,516

 

 

 

4,255

 

 

 

12,814

 

 

 

11,752

 

Exclude: Impairment expense

 

—

 

 

 

2,975

 

 

 

—

 

 

 

2,975

 

Exclude: Workforce reduction expense

 

—

 

 

 

2,437

 

 

 

—

 

 

 

4,298

 

Exclude: Cyber incident remediation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

732

 

Exclude: One-time tax planning expense

 

100

 

 

 

—

 

 

 

500

 

 

 

—

 

Exclude: One-time legal expense

 

—

 

 

 

—

 

 

 

71

 

 

 

—

 

Adjusted EBITDA

$

17,800

 

 

$

14,413

 

 

$

47,205

 

 

$

47,244

 

Adjusted EBITDA margin

 

26.7

%

 

 

24.9

%

 

 

25.2

%

 

 

26.1

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107318251/en/

Investor Contact: Rob Fink / Tom Baumann FNK IR 646.809.4048 / 646.349.6641 [e-mail]

Brian Becker Chief Financial Officer [e-mail]