a10_investor_presentation

©A10 Networks, Inc.

First Quarter 2016 Financial Results & Commentary

April 28, 2016

2©A10 Networks, Inc.

This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs andassumptions and on information currently available to management, including A10’s continued acceptance of A10’s products in the marketplace, growingdemand for ADC security features, financial results, plans, assumptions, strategy, international growth, business outlook and revenue.

We operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for our management topredict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actualresults to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements are subject to known andunknown risks, uncertainties, assumptions and other factors including, but not limited to, those related to our ability to maintain an adequate rate ofrevenue growth, our business plan and our ability to effectively manage our growth, costs associated with defending intellectual property infringement andother claims, risks and costs related to litigation, our ability to attract and retain end-customers, our ability to further penetrate our existing customer base,our ability to displace existing products in established markets, our ability to timely and effectively scale and adapt our existing technology, our ability toinnovate new products and bring them to market in a timely manner, our ability to expand internationally, the effects of increased competition in ourmarket and our ability to compete effectively, the effects of seasonal trends on our results of operations, our expectations concerning relationships with thirdparties, the attraction and retention of qualified employees and key personnel, our ability to maintain, protect, and enhance our brand and intellectualproperty, and future acquisitions of or investments in complementary companies, products, services or technologies.

These factors, together with those described in our quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings made with the Securitiesand Exchange Commission (“SEC”), may cause our actual results, performance or achievements to differ materially and adversely from those anticipatedor implied by our forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although our management believes that the expectations reflected inour forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstancesdescribed in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assume responsibility for the accuracyand completeness of the forward-looking statements. We disclaim any obligation to update information contained in these forward-looking statementswhether as a result of new information, future events, or otherwise.

Cautionary Statements and Disclosures


In addition to the U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. The non-GAAP measures have limitations asanalytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under U.S. GAAP. There are a number oflimitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculatenon-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.

A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of thecompany, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by thecompany's management for that purpose.

With the exception of revenue, all financial measures discussed today are on a non-GAAP basis and have been adjusted to exclude certain charges. Theuse of non-GAAP measures is further discussed in the accompanying press release, which has been furnished to the SEC on Form 8-K and posted on A10Networks’ website. The press release also defines our non-GAAP financial measures.

A reconciliation between GAAP and non-GAAP measures can also be found in the appendix to this document, in the accompanying press release and onthe trended quarterly financial statements posted on the company’s website.

Cautionary Statements and Disclosures


Investment Highlights

High Performance and Extensible ACOS Platform

Experienced Management Team

Next Generation Application Networking & Security Solutions

Large, Growing Customer Base

Security & Cloud Driving Revenue Growth

$12B+ Application Networking Market

2010 2015

29% CAGR

REVENUE

$55M

$199 M


4,700+ Customers in 72 Countries

SERVICE PROVIDER

3 of Top 4U.S. WIRELESS CARRIERS

7 of Top 10U.S. CABLE PROVIDERS

Top 3WIRELESS CARRIERS

IN JAPAN

ENTERPRISE & TECHNOLOGY


Application Networking and Security Leadership

Compact ADC, All Inclusive Pricing

1st Virtual Chassis ADC & Soft ADC

1st SSL Intercept & 4k-bit SSL keys

1st Scalable Shared Memory OS: ACOS

1st 64-bit ADC OS ACOS 2.0

1st Standalone CGN & IPv4/IPv6 Solution

1st ADC with Integrated Security Module (UASG)

1st High Performance DDoS Solution

Cloud-ready ACOS 4.0

1st High Performance Convergent Firewall

2007 2008 2009 2010 2011 2012 2013 2014 2015


On Premise &

In-the-cloud

We Keep

Your Business

From Web, Network and Internet Threats

Secure

With Applications Delivered at Amazing Speed

Responsive

Protection Against Deadly Multi-vector DDoS Attacks

Always On

Users

Infrastructure

Applications


With ACOS Harmony – The L4-7 Services Platform

aGalaxyCentralized Management System

ACOS Harmony Platform

Thunder ADC

Responsive

Thunder CFW

Secure

Thunder TPS & CGN

Always On


Addressing Market Challenges

Explosion

of Devices

Increased Traffic

1

SSL Traffic

Tsunami

Increased Security Risk

3 Internet

of Things

Increased Connections & Attack Surface

4

Move

to Cloud2

Increased Flexibility & Automation


aGalaxy Centralized Management System

ADC CGN TPS CFW

Harmony Architecture

ACOS 4.1

Power & Versatility of ACOS Harmony Platform


ADC

SLB NATSSL

ACCEL.DDoS DNS FW WAF SSL INTERCEPT AAM

Platform Extensible into New Products and Markets

NAT DDoS

CGN

CGNAT IPv6IP PROXY

GATEWAY

TPS

VOLUMETRIC

ATTACK

MITIGATION

RESOURCE

ATTACK

MITIGATION

PROTOCOL

ATTACK

MITIGATION

Future Products in Development

CFW

DCF Gi FW SWG

2011

2014

2015

2007


Thunder Convergent Firewall

aGalaxy Centralized Management System

High-Performance

ExplicitProxy

SSLInsight

URL Filtering

VPN Tunnels

AcrossInternet

Secure Web Gateway Data Center Firewall Gi/SGi Firewall IPSec Site-to-Site

VPN

DDoSProtection

StatefulFirewall,

ALG

ADC DDoSProtection

Gi/SgiInterfaceProtection

CGNAT

Convergence of Convergence of Convergence of


First Quarter Summary

Achieved revenue growth of 22% y/y to $53.8 M

• United States revenue of $29.6 M, up 29% y/y

• Product revenue of $36.4 M, up 19% y/y

• Record enterprise revenue of $32.2 M, up 29% y/y

• Record deferred revenue of $74.8 M, up 3% sequentially and 25% y/y

Highlights

• Strong adoption within public and private cloud deployments &

security-focused Thunder products.

• Strong performance in Japan - closed a new TPS deal with one of our

marquee service provider customers; 31% y/y enterprise bookings growth.


QUARTERLY $M

Revenue Trend

$142

$179

$199

2013 2014 2015

ANNUAL $M

Annual

$46 $45 $43

$45 $44

$48

$51

$57 $54

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

20152014 2016


Revenue Mix

$ MILLIONS / % REVENUE

Product Geography Verticals

Numbers may not total to 100% due to rounding.


Non-GAAP Gross Profit

*Non-GAAP rounded financial measures. For reconciliation see Appendix.

QUARTERLY GROSS MARGIN$M / %

2014 20162015


Summary Financial Results

NON-GAAP* FINANCIAL MEASURES ($M) Q1’2015 Q2’2015 Q3’2015 Q4’2015 Q1’2016

Sales & Marketing $22.5 $23.1 $23.7 $27.6 $24.7

Research & Development $12.7 $12.4 $12.1 $12.2 $13.3

General, Administrative & Litigation $7.5 $5.5 $6.8 $6.7 $6.9

Operating Loss $(8.9) $(4.7) $(4.0) $(3.2) $(4.0)

Net Loss Per share $(0.15) $(0.09) $(0.07) $(0.06) $(0.06)

*Non-GAAP rounded financial measures. For reconciliation see Appendix.


Balance Sheet & Cash Flow

SELECTED GAAP FINANCIAL MEASURES ($M) Q1’2015 Q2’2015 Q3’2015 Q4’2015 Q1’2016

Cash and Marketable Securities $85.6 $96.2 $100.5 $98.1 $107.5

Accounts Receivable $52.8 $46.2 $41.5 $57.8 $41.9

Deferred Revenue (total) $59.7 $65.8 $66.3 $72.8 $74.8

Cash Flow Provided by (Used in) Ops $(5.5) $9.0 $4.2 $(4.2) $10.4


Growth Strategy

Extend Product Offerings in

Networking and Security

TECHNOLOGY PLATFORM

Increase Our Total Value Offered

to Customers

CUSTOMER RELATIONSHIPS

Expand Our Global Sales Organization

to Attract New Customers

GLOBAL SALES FOOTPRINT

Enhance and Expand Our Technology

and Channel Partner Ecosystem

PARTNERSHIPS

New Security Products:DDoS – 2014 SSLi – 2015 CFW – 2016

Grew Sales & Marketing teams 15%.Grew customer base 45% since IPO.

Top customers buy product in over 80% of following quarters.

Key OEM and reseller partners. Increased channel-led deal flow.

Appendix


Thunder Security Deployments

DDoS Mitigation ADC Security


FORM FACTOROPTIONS

Physical Appliance

Hybrid Virtual Appliance

Virtual Appliance

Virtual

Dedicated Network Managed Hosting Cloud IaaS

DEPLOYMENT OPTIONS

Own

Rent

Utility

BILLING OPTIONS

= Most Common

All-Inclusive

LICENSE

Customer-Friendly Business Model


Shared Memory Architecture

High-Speed Shared

Memory

L4-7CPU 4

L4-7CPU 3

L4-7CPU 2

L4-7CPU 1

2-5x PERFORMANCE*

ACOS Shared Memory Advantages

IPC Memory Architecture

Communication Bus

L4-7CPU 4

L4-7CPU 3

L4-7CPU 2

L4-7CPU 1

AN ANALOGY

Single Simultaneous Resource

Shared in Cloud

Synching Multiple Versions

Shared via Email

Duplication and Latency

* Measured by web transactions (Layer 4 connections / second) in product comparisons per unit of computing and memory resources, power, rack space or list price.


High Performance, Best-in-Class Products

ADC TPSCGN

WHY WE WIN

Superior Performance and Scalability

Throughput

Total Flows

# of Subscribers

512,000

120,000

256M

60M

115 Gbps

30 Gbps

30

10

Gbps

750,000

150,000

L4 CPS

$30K

$64K All-In

Price

200M+

<40M

Packet per Second

40+ Gbps Price

<25M

$200K

~$800K

~$600K

A10 AX CGN

1 RU Space

Cisco CRS1/CR3 4

Slots CGSE Cards (3)

17 RU Space

A10 Thunder ADC

F5 ADC Big-IP 4000S

A10 Thunder TPS

Arbor Peakflow TMS

RadwareDefensepro

$30K

Base

3x

5x 4x 4x ~4x5x


Non-GAAP Reconciliation – Gross Profit

QUARTERLY Q1'15 Q2’15 Q3’15 Q4’15 Q1’16

Gross Profit Margin (GAAP) 75% 75% 75% 76% 75%

SBC included in COGS 2% 1% 1% —% 1%

Gross Profit Margin (Non-GAAP) 77% 76% 76% 76% 76%

* SBC = stock-based compensation

QUARTERLY ($M) Q1'15 Q2’15 Q3’15 Q4’15 Q1’16

Gross Profit (GAAP) $33.2 $35.9 $38.1 $43.0 $40.6

SBC included in COGS 0.5 0.3 0.4 0.3 0.3

Gross Profit (Non-GAAP) $33.7 $36.3 $38.5 $43.3 $40.9


Non-GAAP Reconciliation – Expense Items

$ Millions Q1'15 Q2’15 Q3’15 Q4’15 Q1’16

Sales & Marketing (GAAP) $24.5 $25.0 $25.8 $29.3 $26.8

SBC included in Sales & Marketing (2.1) (1.9) (2.1) (1.7) (2.1)Sales & Marketing (Non-GAAP) $22.5 $23.1 $23.7 $27.6 $24.7

R&D (GAAP) $14.3 $13.7 $13.6 $13.3 $14.8SBC included in R&D (1.6) (1.3) (1.5) (1.1) (1.5)

R&D (Non-GAAP) $12.7 $12.4 $12.1 $12.2 $13.3

G&A (GAAP) $7.5 $5.7 $6.9 $6.9 $6.7SBC included in G&A (0.5) (0.5) (0.6) (0.5) (0.8)

G&A (Non-GAAP) $7.0 $5.2 $6.3 $6.4 5.9

Litigation (GAAP) $0.4 $1.0 $0.5 $0.3 $1.8Litigation and Settlement — (0.7) — — (0.8)

Litigation (Non-GAAP) $0.4 $0.3 $0.5 $0.3 $1.0

Total Op Exp (GAAP) $46.8 $45.4 $46.7 $49.8 $50.0SBC included in Total Op Exp (4.2) (3.7) (4.2) (3.3) (4.3)Litigation Settlement — (0.7) — — (0.8)

Total Op Exp (Non-GAAP) $42.6 $41.0 $42.5 $46.4 $44.9

* SBC stands for stock-based compensation.


$ Millions Q1'15 Q2’15 Q3’15 Q4’15 Q1’16

Loss from Operations (GAAP) $(13.6) $(9.4) $(8.6) $(6.8) $(9.4)

Stock-Based Compensation 4.6 4.0 4.6 3.6 4.6

Litigation and Settlement — 0.7 — — 0.8Loss from Operations (Non-GAAP)

$(8.9) $(4.7) $(4.0) $(3.2) $(4.0)

Net loss (GAAP) $(13.7) $(10.0) $(9.0) $(7.4) $(9.5)

Stock-Based Compensation 4.6 4.0 4.6 3.6 4.6

Litigation and Settlement — 0.7 — — 0.8Net loss (Non-GAAP) $(9.1) $(5.3) $(4.4) $(3.7) $(4.1)

Weighted Average Shares used in per share calculations for non-GAAP, basic and diluted

61.5 61.9 62.8 63.7 64.3

Non-GAAP Reconciliation – Income (Loss) Items

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