睿科網路 (ATEN) 2025 Q3 法說會逐字稿

Good day, everyone, and welcome to the A10 Networks third-quarter 2025 financial results conference call. (Operator Instructions)

大家好，歡迎參加 A10 Networks 2025 年第三季財務業績電話會議。（操作說明）

It is now my pleasure to turn the floor over to your host, Tom Baumann. Sir, the floor is yours.

現在我很高興把發言權交給主持人湯姆鮑曼。先生，請您發言。

Thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least 90 days via the A10 Networks website at a10networks.com. Hosting the call today are Dhrupad Trivedi, A10's President and CEO; and CFO, Michelle Caron.

感謝各位今天蒞臨。本次電話會議將進行錄音和網路直播，可透過 A10 Networks 網站 a10networks.com 訪問，至少保留 90 天。今天主持本次電話會議的是 A10 總裁兼執行長 Dhrupad Trivedi 和財務長 Michelle Caron。

Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its third-quarter 2025 financial results. Additionally, A10 published a presentation and supplemental trended financial statements. You may access the press release, presentation, and trended financial statements on the Investor Relations section of the company's website.

在開始之前，我想提醒大家，今天股市收盤後不久，A10 Networks 發布了一份新聞稿，宣布了 2025 年第三季的財務表現。此外，A10 還發布了一份簡報和補充趨勢財務報表。您可以在公司網站的投資者關係版塊查閱新聞稿、簡報和趨勢財務報表。

During the course of today's call, management will make forward-looking statements, including statements regarding projections for future operating results, demand, industry and customer trends, macroeconomic factors, strategy, potential new products and solutions, our capital allocation strategy, profitability, expenses and investments, positioning, and our dividend program.

在今天的電話會議中，管理層將發表前瞻性聲明，包括有關未來經營業績、需求、行業和客戶趨勢、宏觀經濟因素、戰略、潛在新產品和解決方案、我們的資本配置戰略、盈利能力、支出和投資、定位以及我們的股息計劃的預測聲明。

These statements are based on current expectations and beliefs as of today, November 4, 2025. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control that could cause actual results to differ materially, and you should not rely on them as predictions of future events.

這些聲明是基於截至 2025 年 11 月 4 日的當前預期和信念。這些前瞻性陳述涉及許多風險和不確定性，其中一些是我們無法控制的，可能導致實際結果與預期結果有重大差異，因此您不應依賴這些陳述來預測未來事件。

A10 does not intend to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. For a more detailed description of these risks and uncertainties, please refer to our most recent 10-K and quarterly report on Form 10-Q.

除非法律要求，否則 A10 不打算更新這些前瞻性聲明中包含的信息，無論是由於新信息、未來事件或其他原因。有關這些風險和不確定性的更詳細描述，請參閱我們最新的 10-K 表格和 10-Q 表格季度報告。

Please note that with the exception of revenue, financial measures discussed today are on a non-GAAP basis, unless otherwise noted and have been adjusted to exclude certain charges. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company's website at a10networks.com.

請注意，除收入外，今天討論的財務指標均為非公認會計準則（non-GAAP），除非另有說明，並且已進行調整以排除某些費用。非公認會計準則財務指標不應單獨考慮，也不應取代依照公認會計準則編制的結果，並且可能與其他公司提供的非公認會計準則財務指標有所不同。有關 GAAP 和非 GAAP 指標的調節表，請參閱今天發布的新聞稿以及公司網站 a10networks.com 上發布的季度財務報表。

Now I would like to turn the call over to Dhrupad Trivedi, President and CEO of A10 Networks.

現在我想把電話交給 A10 Networks 的總裁兼執行長 Dhrupad Trivedi。

Thank you, Tom, and thank you all for joining us today. A10's strategic position, aligning our solutions and technology roadmap with the persistent needs of our customers around trusted infrastructure, cybersecurity, and AI capabilities continues to enable growth that outpaces our market peers. Our solutions emphasize high throughput, low latency, and integrated security, which our customers and the broader market increasingly view as essential. A10 is well positioned alongside the durable catalyst that are driving spending across our markets.

謝謝你，湯姆，也謝謝今天所有到場的各位。A10 的策略定位，即透過調整我們的解決方案和技術路線圖，以滿足客戶在可信任基礎設施、網路安全和人工智慧能力方面的持續需求，持續推動公司成長，超越市場同業。我們的解決方案強調高吞吐量、低延遲和整合安全性，我們的客戶和更廣泛的市場越來越認為這些是必不可少的。A10 與推動我們市場消費的持久催化劑保持著良好的關係。

In the third quarter, revenue grew nearly 12% year over year. On a trailing 12-month basis, growth from enterprise customers in North America continues to outpace our overall company-wide growth. Revenue from the Americas has increased 25% on a trailing 12-month basis, driven primarily by investment in AI infrastructure. This performance helped offset macro-related headwinds in other regions.

第三季度，營收年增近12%。以過去 12 個月計算，來自北美企業客戶的成長速度持續超過公司整體的成長速度。過去 12 個月，美洲地區的收入成長了 25%，這主要得益於對人工智慧基礎設施的投資。這一表現有助於抵銷其他地區宏觀經濟相關的不利因素。

Our global diversification continues to enable consistent performance despite macro variability. AI-related deployments were a key driver for growth, where security and performance at scale are critical. These applications are power hungry, and our solutions deliver efficient throughput and low latency with integrated best-in-class security capabilities. This allows customers to achieve target performance with fewer devices, improving total cost of ownership, while maintaining the highest levels of network performance. We continue to leverage this advantage in large data center opportunities globally.

儘管宏觀經濟情勢波動，但我們的全球多元化佈局仍能確保業績持續穩定成長。人工智慧相關的部署是成長的關鍵驅動因素，其中大規模的安全性和效能至關重要。這些應用對效能要求很高，而我們的解決方案能夠提供高效的吞吐量和低延遲，並整合一流的安全功能。這樣一來，客戶就能用更少的設備達到目標效能，降低整體擁有成本，同時維持最高的網路效能。我們將繼續利用這項優勢，在全球大型資料中心領域中把握機會。

Our operating model continues to focus on discipline and leverage, converting growth into profitability and cash, while reinvesting in strategic priorities. EBITDA margins expanded year over year from 26.7% to 29.3%, while non-GAAP operating margin expanded from 22.6% to 24.7%. This demonstrates the inherent leverage in our model even as we continue to invest more in R&D.

我們的營運模式持續專注於紀律和槓桿作用，將成長轉化為獲利能力和現金，同時對策略重點進行再投資。EBITDA 利潤率年增，從 26.7% 增至 29.3%，而非 GAAP 營業利潤率年增，從 22.6% 增至 24.7%。這證明了即使我們繼續加大研發投入，我們的模式也具有內在的槓桿作用。

A10 is well positioned to serve both enterprise and service customers alike while we navigate macro uncertainty. In the world of AI, these will be harder to demarket as customers redefine their architectures. Our increasingly strong alignment with AI infrastructure buildout and adoption gives us confidence in our strategic positioning as we align investment with structural tailwinds of AI and cybersecurity.

在應對宏觀經濟不確定性之際，A10 已做好充分準備，為企業客戶和服務客戶提供服務。在人工智慧領域，隨著客戶重新定義其架構，這些產品將更難被取消市場地位。我們與人工智慧基礎設施建設和應用的日益緊密的聯繫，使我們對自己的策略定位充滿信心，因為我們將投資與人工智慧和網路安全的結構性利好因素相結合。

As our investments in innovation and product enhancements have taken shape, we have established ourselves as a stronger, more differentiated technology solution provider. On a trailing 12-month basis, growth stands at just over 10%. Based on momentum in key strategic initiatives, we expect full-year growth rate of 10%.

隨著我們在創新和產品改進方面的投資逐步落實，我們已成為更強大、更具差異化的技術解決方案提供者。過去 12 個月的成長率略高於 10%。基於關鍵策略舉措的良好勢頭，我們預計全年成長率將達到 10%。

With that, I'd like to formally welcome Michelle Caron, our new Chief Financial Officer, to the call. I also want to take a moment to thank Brian Becker. Brian had been an important part of the leadership team during A10's progress and had instituted strong processes that will continue to serve us well into the future.

在此，我正式歡迎我們的新任財務長米歇爾‧卡倫參加本次電話會議。我還要藉此機會感謝布萊恩貝克爾。在 A10 發展過程中，Brian 一直是領導團隊的重要成員，他建立的強大流程將繼續為我們帶來長遠的益處。

Michelle brings deep operational and financial expertise from complex global organizations and a proven ability to align financial strategy with growth opportunities. Her background complements A10's disciplined culture and long-term transformation agenda. We expect continued disciplined execution and an increased focus on capital deployment to play a role in our overall growth. Michelle's experience positions us well to help drive that next phase of the company. Michelle?

米歇爾擁有來自複雜全球組織的深厚營運和財務專業知識，以及將財務策略與成長機會相結合的成熟能力。她的背景與 A10 嚴謹的企業文化和長期轉型計劃相得益彰。我們預計，持續嚴謹的執行力和對資本部署的日益重視將對我們的整體成長起到促進作用。米歇爾的經驗使我們能夠更好地推動公司進入下一個發展階段。米歇爾？

Thank you, Dhrupad. I'm excited to join A10 at this important inflection point. What drew me here is the combination of a strong foundation, coupled with an even stronger opportunity ahead. With a proven business model, solutions that are ideally aligned with global spending trends, and a Tier 1 customer base, A10 is positioned for consistent success.

謝謝你，德魯帕德。我很高興在這個重要的轉折點加入A10。吸引我來到這裡的是它堅實的基礎，以及未來更廣闊的發展機會。憑藉成熟的商業模式、與全球消費趨勢完美契合的解決方案以及一流的客戶群，A10 已做好持續成功的準備。

I share Dhrupad's belief that we can continue to grow, both organically and inorganically, and I look forward to contributing to both sides of that growth equation. My near-term focus involves building on our solid base and driving greater consistency, predictability, and profitability as we grow.

我認同德魯帕德的觀點，即我們可以繼續發展，無論是透過有機增長還是無機增長，我期待著為這一增長方程式的兩方面都做出貢獻。我近期的重點是鞏固我們堅實的基礎，並在發展過程中提高穩定性、可預測性和盈利能力。

I'll be concentrating on a few key areas. First, maintaining financial discipline and transparency, better aligning our performance and market expectations. Second, driving profitable growth, balancing top-line expansion with healthy margins and cash flow. And third, maintaining disciplined capital allocation. Investing where we can create the most value, while continuing to return capital to our shareholders. Supporting our pipeline of M&A activities and effectively putting our cash to work will be part of this initiative.

我將重點放在幾個關鍵領域。首先，保持財務紀律和透明度，並更好地使我們的業績與市場預期保持一致。其次，要實現獲利成長，在維持健康利潤率和現金流的同時，實現營收擴張。第三，保持嚴謹的資本配置。在能夠創造最大價值的領域進行投資，同時持續為股東帶來資本回報。支持我們的併購活動計劃並有效利用我們的現金將是這項措施的一部分。

Now let me turn to the results. As Dhrupad noted, we delivered a strong Q3, growing revenue almost 12% to $74.7 million, reflecting a mix of 58% product revenue and 42% service revenue. Global service revenue of $31.6 million grew 6% while product revenue of $43.1 million grew 17% year over year. Product revenue, which has been strong for the last two quarters, represents a leading indicator of future revenue. Our third-quarter performance gives us confidence we're on the right track to deliver on our strategic priorities, while continuing to drive rigor building on our culture of excellence.

現在讓我來看看結果。正如 Dhrupad 指出的那樣，我們第三季業績強勁，營收成長近 12%，達到 7,470 萬美元，其中產品收入佔 58%，服務收入佔 42%。全球服務收入為 3,160 萬美元，年增 6%；產品收入為 4,310 萬美元，年增 17%。過去兩季產品營收表現強勁，是未來營收的領先指標。第三季的業績讓我們有信心，我們正走在實現戰略重點的正確道路上，同時繼續在卓越文化的基礎上推進嚴謹的工作。

Within our product revenue category, the third quarter reflected a greater contribution of security-led revenue, exceeding our long-term target of generating 65% of our total revenue from security-led solutions. This performance reflects customer demand and our alignment with customer needs, particularly within North America, for both service providers and enterprises.

在我們的產品收入類別中，第三季安全解決方案的收入貢獻更大，超過了我們長期目標，即安全解決方案的收入佔總收入的 65%。這項業績反映了客戶需求以及我們與客戶需求的契合度，尤其是在北美地區，無論是服務提供者還是企業。

Now looking at our major verticals, enterprise customers represented 36% of Q3 revenues. As previously stated, America is our priority region, and we continue to see growth in excess of overall revenue on a trailing 12-month basis. Service provider revenue, which was 64% of total revenue, was weighted towards cloud providers, further indication of our success in strategically aligning our offerings with AI infrastructure buildout.

現在來看我們的主要垂直產業，企業客戶佔第三季營收的 36%。如前所述，美洲是我們的優先區域，過去 12 個月以來，我們持續看到美洲地區的成長超過整體收入的成長。服務提供者收入佔總收入的 64%，其中雲端服務提供者佔比較高，這進一步表明我們在策略上將我們的產品與人工智慧基礎設施建設相結合方面取得了成功。

From a geo perspective, our Americas region represented 65% of global revenue, reflecting the benefits of A10's investments in our enterprise segment and strength of AI infrastructure buildout. As Dhrupad mentioned, macro-related headwinds in Rest of World were made up for in the Americas region.

從地理角度來看，美洲地區佔全球收入的 65%，這反映了 A10 在企業領域的投資效益以及人工智慧基礎設施建設的實力。正如德魯帕德所提到的，世界其他地區的宏觀經濟逆風在美洲地區得到了彌補。

Now with the exception of revenue, all of the metrics discussed on this call are on a non-GAAP basis, unless otherwise stated. A full reconciliation of GAAP to non-GAAP results is provided in our press release and on our website.

除收入外，本次電話會議討論的所有指標均以非GAAP準則為基礎，除非另有說明。我們的新聞稿和網站上提供了 GAAP 與非 GAAP 結果的完整調整表。

Our continued operating discipline contributed to our strong Q3 results. Non-GAAP gross margin was 80.7%, in line with our stated goals of 80% to 82%. Operating expenses were $41.8 million, reflecting an operating margin of 24.7%, an improvement of about 215 basis points year over year.

我們持續的營運紀律為我們第三季的強勁業績做出了貢獻。非GAAP毛利率為80.7%，符合我們設定的80%至82%的目標。營業費用為 4,180 萬美元，營業利潤率為 24.7%，比上年同期提高了約 215 個基點。

GAAP net income for the quarter was $12.2 million or $0.17 per diluted share. Non-GAAP net income for the quarter was $16.7 million or $0.23 per diluted share, reflecting a 7.4% EPS growth from the year-ago period. Diluted weighted shares used for computing non-GAAP EPS for the third quarter were approximately 73 million shares, down 1.7 million shares year over year, driven by our continued share buyback. Adjusted EBITDA was $21.9 million, 29.3% of revenue, which is aligned with our long-term strategic goals.

本季GAAP淨利為1,220萬美元，即每股攤薄收益0.17美元。本季非GAAP淨收入為1,670萬美元，即每股攤薄收益0.23美元，較上年同期成長7.4%。第三季用於計算非GAAP每股盈餘的稀釋加權股份約為7,300萬股，年減170萬股，主要原因是我們持續進行股票回購。調整後 EBITDA 為 2,190 萬美元，佔營收的 29.3%，這與我們的長期策略目標相符。

Turning to the year-to-date results, revenue for the first nine months of 2025 was $210.2 million compared to $187.5 million, an increase of 12.1%. Non-GAAP gross margin was 80.5% year to date. Adjusted EBITDA was $61.1 million year to date, reflecting 29% of revenue. Non-GAAP net income on a year-to-date basis was $47.2 million or $0.64 per diluted share compared to $41.9 million or $0.56 per diluted share last year. On a GAAP basis, net income for the first nine months was $32.3 million or $0.44 per diluted share compared to net income of $31.8 million or $0.42 per diluted share in the first nine months last year.

從年初至今的業績來看，2025 年前九個月的營收為 2.102 億美元，而去年同期為 1.875 億美元，成長了 12.1%。今年迄今，非GAAP毛利率為80.5%。截至目前，調整後 EBITDA 為 6,110 萬美元，佔營收的 29%。今年迄今的非GAAP淨收入為4,720萬美元，即每股攤薄收益0.64美元，去年同期為4,190萬美元，即每股攤薄收益0.56美元。以美國通用會計準則計算，前九個月的淨收入為 3,230 萬美元，即每股攤薄收益 0.44 美元，而去年同期的淨收入為 3,180 萬美元，即每股攤薄收益 0.42 美元。

I'll now turn to the cash flow and balance sheet, both of which are very strong. We generated $22.8 million in cash flow from operations in Q3. CapEx was $4.7 million with cash and investments totaling $371 million at the end of the quarter. Deferred revenue was $143.5 million. During the quarter, we paid $4.3 million in cash dividends and repurchased $11 million worth of shares. The Board has approved a quarterly cash dividend of $0.06 per share to be paid on December 1, 2025, to shareholders of record on November 17, 2025. The company still has over $60 million remaining of its $75 million share repurchase authorization.

接下來我將分析現金流量表和資產負債表，這兩份報表都非常強勁。第三季度，我們的經營活動產生了 2,280 萬美元的現金流。本季末，資本支出為 470 萬美元，現金和投資總額為 3.71 億美元。遞延收入為1.435億美元。本季度，我們支付了 430 萬美元的現金股息，並回購了價值 1,100 萬美元的股票。董事會已批准派發每股 0.06 美元的季度現金股息，將於 2025 年 12 月 1 日支付給 2025 年 11 月 17 日登記在冊的股東。該公司7,500萬美元的股票回購授權額度中，仍有超過6,000萬美元的剩餘額度。

I look forward to speaking with many of you in the coming weeks, gathering your feedback on our strategy and operations. I'll now turn the call back to Dhrupad for closing comments.

我期待在接下來的幾週與各位交流，收集你們對我們策略和營運的回饋意見。現在我將把電話轉回給德魯帕德，請他作總結發言。

Thank you, Michelle. We are encouraged by continued business execution and remain confident that A10 is strategically well positioned in the market, especially as we see acceleration in AI infrastructure buildout. A10 is positioned squarely in front of multiple durable secular catalyst.

謝謝你，米歇爾。我們對公司持續的業務執行感到鼓舞，並且仍然相信 A10 在市場中擁有良好的戰略地位，尤其是在我們看到人工智慧基礎設施建設加速發展的情況下。A10 正好位於多個持久性世俗催化劑的正前方。

In fact, our strength in high-performance hardware and software is more relevant than ever before. We are investing to enhance our position in the enterprise space and remain aligned with key leaders in the service provider sector around the world. We believe our business model enables us to dynamically allocate resources to address changing market conditions while preserving profitability and shareholder returns.

事實上，我們在高效能硬體和軟體方面的優勢比以往任何時候都更加重要。我們正在加大投資，以提升我們在企業領域的地位，並與全球服務提供者領域的關鍵領導者保持步調一致。我們相信，我們的商業模式使我們能夠動態地分配資源，以應對不斷變化的市場狀況，同時保持獲利能力和股東回報。

Operator, you can now open the call up for questions.

操作員，現在可以開始接受提問了。

(Operator Instructions) [Gary Powell], BTIG.

（操作說明）[Gary Powell]，BTIG。

Hey, thanks. It's actually Gray up again for Gary. Gary is traveling today. But just want to say congratulations on the good results. I just had a couple of questions.

嘿，謝謝。事實上，格雷又要替加里上場了。加里今天出差了。不過還是要祝賀你們取得了好成績。我還有幾個問題。

Thank you. I appreciate it, thank you.

謝謝。非常感謝。

Yes, absolutely. I think last year, security-led revenue was around 63% of the business, growing 9%. You called out 65% in the prepared remarks in the slide deck. Just how is it tracking this year? And where do you think it can go longer term?

是的，絕對的。我認為去年安全相關的收入約占公司業務的 63%，成長了 9%。你在投影片準備的發言稿中提到了65%。今年的情況如何？你認為它長遠發展會走向何方？

Yes, good question. Thank you. I think -- so we had said long term, our goal was 65% because -- we see the connection between security and infrastructure as something that actually is a strength for us, in the sense we want those things to work together and make it even better.

是的，問得好。謝謝。我認為——所以我們說過，從長遠來看，我們的目標是 65%，因為——我們認為安全和基礎設施之間的聯繫實際上是我們的優勢，因為我們希望這些方面能夠協同工作，使其變得更好。

So if you look at where we actually ended up in Q3, the number was higher than 65%. And so we feel pretty good continuing to maintain that goal of about 65%. And if we do better, that's great. But at the same time, we are not looking to lose infrastructure revenue in its place, right? So I feel pretty good that we have been able to improve that mix to -- from somewhere less than 30% to 65%. And obviously, our goal is to lead with that because that tends to expose us to higher growth markets and applications.

所以，如果你看一下我們在第三季的實際結果，這個數字高於 65%。因此，我們感覺能夠繼續保持 65% 左右的目標，而且感覺相當不錯。如果我們做得更好，那就太好了。但同時，我們不希望因此而損失基礎設施收入，對吧？所以我覺得我們能夠將這個比例從不到 30% 提高到 65%，這相當不錯。顯然，我們的目標是以此為先導，因為這往往能讓我們接觸到成長更快的市場和應用領域。

Understood. Okay, that's really helpful. And then just a separate topic, and this one might be a little bit early. But F5 had a pretty bad data breach a few weeks ago. Again, I'm sure it's a little bit early from your side, but is that something that can potentially help your customer discussions on the enterprise side of the business? Is that something that's come up at all in conversations yet? Or is there any -- I don't know, is there any directional commentary you could make about that?

明白了。好的，這真的很有幫助。再補充一點，這個話題可能有點早。但F5幾週前遭遇了非常嚴重的資料外洩事件。我知道現在對您來說可能有點早，但這是否有可能對您在企業業務方面與客戶的討論有所幫助？這個問題在之前的談話中有人提到過嗎？或者，我不知道，您能否就此發表一些指導性的評論？

Sure, yes. No, I think -- good question. And I think, first of all, I would say that all of us in the cybersecurity industry face the same kinds of attacks and challenges that we are all resolving, right? So obviously, we cannot specifically comment on anything.

當然可以。不，我想——問得好。首先，我認為網路安全產業的每個人都面臨著同樣的攻擊和挑戰，我們也都在努力解決這些問題，對吧？所以很顯然，我們不能對任何事情發表具體評論。

But I would say as we navigate that market environment and you look at some of the key players in that space, including F5, of course, I think we have seen certainly an increased level of interest from customers, not necessarily wanting to change, but wanting to understand what else is in the market and what alternatives there might be towards making sure that their own infrastructure is more resilient in the future, right? So of course, I think we'll continue to work with our customers just as we'll continue to work with the industry overall to find better ways to manage and handle cybersecurity challenges.

但我想說，當我們探索當前的市場環境，並審視該領域的一些主要參與者，當然也包括 F5，我認為我們已經看到客戶的興趣明顯增加，他們不一定想要改變，而是想要了解市場上還有哪些其他選擇，以及為了確保他們自己的基礎設施在未來更具韌性，可能有哪些替代方案，對吧？所以，我認為我們當然會繼續與客戶合作，就像我們繼續與整個行業合作一樣，尋找更好的方法來管理和應對網路安全挑戰。

Okay, thank you very much.

好的，非常感謝。

Thanks. I appreciate it.

謝謝。謝謝。

Simon Leopold, Raymond James.

西蒙·利奧波德，雷蒙德·詹姆斯。

Hi, guys. This is Victor Chiu in for Simon Leopold. You noted strength in North American AI infrastructure investments in your prepared remarks. But can you elaborate on some of the specific factors contributing to the upside this quarter? Were there a handful of specific customers or deals? Or was it more -- was the strength more broad based?

嗨，大家好。這位是維克多·邱，他代替西蒙·利奧波德出場。您在事先準備好的演講稿中提到了北美人工智慧基礎設施投資的強勁勢頭。但您能否詳細說明本季業績上漲的具體因素？是否有少數特定的客戶或交易？或者說，這種力量是否更廣泛？

Sure, Victor, thank you. I think -- so as -- of course, you know well too the market today in AI is pretty concentrated with several large players. And then in the longer term, we are also engaged with multitude of players who, in two to three years' time, will be doing a lot more things on their own, right? So right now, it's in the phase of initial big buildout, and then it becomes more realistic in terms of business goals, local models. and so forth.

當然，維克多，謝謝你。我認為——當然，你也很清楚，如今人工智慧市場高度集中，由幾家大型企業主導。從長遠來看，我們也與許多參與者合作，在兩到三年內，他們將更獨立地開展業務，對吧？所以目前它正處於初期大規模建設階段，之後在業務目標、在地化模式等方面會變得更加現實。

So in this phase of the evolution, certainly, the benefit to us was from a few large customers, who are investing aggressively into building the AI infrastructure. But we are equally engaged with customers around the world on the enterprise side as well, who will be the beneficiaries long term as they build out their own solutions and decide how to take advantage of AI.

因此，在這一發展階段，我們當然受益於少數幾家大客戶，他們正在大力投資建設人工智慧基礎設施。但我們也同樣積極與世界各地的企業客戶合作，從長遠來看，他們將是人工智慧的受益者，因為他們可以建立自己的解決方案並決定如何利用人工智慧。

Great. That's very helpful. And just a quick follow up, just to elaborate on the previous question, have you observed any -- on the flip side, have you observed any negative collateral impact from the high-profile security breach from one of your key competitors that customers express specific concerns or hesitations moving forward with planned deployments?

偉大的。那很有幫助。最後再補充一點，為了詳細說明上一個問題，您是否觀察到——另一方面，您是否觀察到您的主要競爭對手之一的高調安全漏洞對客戶產生了任何負面的附帶影響，導致客戶對推進計劃部署表示具體的擔憂或猶豫？

No, we are certainly not seeing any negative impact from that. I think people are used to kind of having to deal with public as well as private incidents in that space for many, many years to come. So it is certainly not a negative thing for us at all. And it's -- I would say, it has certainly increased conversations we are having with customers. But at the same time, it's hard to say it's positive. But certainly, there's no hesitation on customer side in terms of spending on A10's products and holding off on that in any way.

不，我們目前完全沒有看到任何負面影響。我認為在未來很多年裡，人們都將習慣在這個領域處理公共和私人事件。所以這對我們來說絕對不是一件壞事。而且——我想說，它確實增加了我們與客戶的對話。但同時，很難說這是正面的。但可以肯定的是，消費者在購買 A10 產品方面沒有任何猶豫，也不會以任何方式推遲購買。

Great, thank you. Thank you very much.

太好了，謝謝。非常感謝。

No problem. Thank you.

沒問題。謝謝。

Julio Romero, Sidoti & Company.

胡里奧·羅梅羅，西多蒂公司。

Great, thanks. Good afternoon. This is Julio on for Anja. Thanks for taking questions.

太好了，謝謝。午安.這是胡里歐替安雅發言。謝謝回答問題。

Thanks. How are you?

謝謝。你好嗎？

I'm good, thanks. So my first question would be just it seems like the efforts you've done on the enterprise sales push have been working. Are there any more initiatives you can do there? And then secondly, where are you in the innings of expanding within this market?

我很好，謝謝。所以我的第一個問題是，看起來你們在企業銷售推廣方面所做的努力已經奏效了。你們還能在那裡開展其他什麼活動嗎？其次，您目前處於拓展該市場業務的哪個階段？

Yes. No, good question. And I think we have been talking about that for a few periods now, right? So I think our initial thesis was around building up our capability on the product solution side as well as on the commercial execution side to get more stability with enterprise customers than growing our share.

是的。不，問得好。我想我們已經討論過這個問題好幾次了，對吧？所以我認為我們最初的論點是，與其追求市場佔有率的成長，不如著力提升我們在產品解決方案和商業執行方面的能力，從而獲得企業客戶的更多穩定性。

I think in the last two to three years, we have continued to see that kind of maturation process, if you will. And we believe, certainly with our sales leadership currently in place, there is a lot of focus around that while we continue to support our service provider customers as well. So I would say, if I had to characterize it in that sense, I would say probably we are in the third or fourth innings as we continue to build kind of our own maturation of the team but also engagement with customers.

我認為在過去的兩三年裡，我們一直在看到這個成熟過程。我們相信，憑藉我們目前的銷售領導團隊，我們將專注於這一點，同時我們也將繼續支援我們的服務提供者客戶。所以，如果非要從這個意義上來描述的話，我會說我們可能正處於第三局或第四局，因為我們仍在不斷提升團隊的成熟度，同時也在加強與客戶的互動。

Excellent. Very helpful. And then just any preliminary thoughts you could share on how you would view 2026 shaping up for you from a top-line and bottom-line perspective just at a high level at this point?

出色的。很有幫助。那麼，您能否就2026年的整體發展前景，從營收和利潤兩個方面，簡單分享一下您的看法？

Yes. No, good question. And I think I would say, you can see, obviously, last year was a little bit unusual year in terms of seasonality. And this year, as we talked about, we expect on a full-year basis to get back to 10% growth and obviously the EBITDA results as well. As we look into the future, I would say the challenge like everybody else is we are dealing with uncertainties that we cannot control, such as interest rates and tariffs and everything else.

是的。不，問得好。而且我認為，很明顯，去年在季節性方面有點不尋常。正如我們之前討論過的，我們預計今年全年成長率將恢復到 10%，EBITDA 業績自然也會如此。展望未來，我認為我們面臨的挑戰和其他人一樣，都是我們無法控制的不確定因素，例如利率、關稅等等。

But given the momentum in the business, particularly around secular tailwinds that we are aligning more and more to, we feel that going into next year, we should be able to sustain the growth level that we are seeing now. And we obviously will continue to provide more clarity as we see it as well. But our goal is obviously to be in that high single-digit range and if the market aligns do better than that, but at the same time, focused on -- our business model goals on 26% to 28% EBITDA as well as EPS growth faster than top line.

但鑑於公司目前的業務發展勢頭，特別是隨著我們越來越順應的長期發展趨勢，我們認為，進入明年，我們應該能夠保持目前所看到的成長水平。我們當然也會根據情況持續提供更清晰的資訊。但我們的目標顯然是達到個位數高位，如果市場情況允許，我們會做得更好，但同時，我們專注於實現我們的商業模式目標，即 EBITDA 增長 26% 至 28%，並且 EPS 增長速度超過營收增長速度。

Excellent, thanks very much, and best of luck in the fourth quarter.

太好了，非常感謝，祝你第四季一切順利。

Thank you. Appreciate it.

謝謝。謝謝。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

Hi. I was just wanted to see what kind of progress you've been making as far as expanding your service provider customer base.

你好。我只是想了解您在擴大服務提供者客戶群方面取得了哪些進展。

Yes. No, good question. So I think, Hamed, I would probably differentiate it in two ways. So one is we -- during this year, with our existing large Tier 1 service provider, I think that has been like most companies have seen, a lot of pressure on CapEx. And so our efforts there have been more around improving share of wallet and cross-selling, whether it's in US or Europe or Asia, right?

是的。不，問得好。所以我覺得，哈米德，我可能會從兩個方面來區分它。所以，一方面，我們——在今年，與我們現有的大型一級服務提供者合作期間，我認為這和大多數公司的情況一樣，資本支出方面面臨著很大的壓力。因此，無論是在美國、歐洲還是亞洲，我們的努力都更圍繞著提高錢包份額和交叉銷售展開，對吧？

Where we are seeing a little bit more traction is on the Tier 2 service provider side, where it's not necessarily related to things like BEAD funding, but we are certainly seeing a little more activity and rollout. So our progress there is, I would say, gaining new customers that are in that category of independent or Tier 2-type service providers. With Tier 1 in addition to waiting for CapEx, really trying to expand our footprint to sell into different business units or selling them multiple products.

我們看到，在二級服務提供者方面，情況有所好轉，這不一定與 BEAD 資金等因素有關，但我們確實看到了一些更多的活動和推廣。所以，我認為我們在該領域取得的進展是，獲得了屬於獨立或二級服務提供者類別的新客戶。除了等待資本支出外，一級供應商也在努力擴大業務範圍，向不同的業務部門銷售產品或向他們銷售多種產品。

Okay. And then just looking out to the clarity you're seeing as far as your service prices are concerned, do you have that clarity at all? Is it better?

好的。那麼，就貴公司的服務價格而言，您是否完全清楚價格的透明度呢？這樣更好嗎？

Yes, so good question, Hamed. So I would say on the service provider customer side, it probably varies. So on the ones that are exposed to more building out things like cloud infrastructure, the clarity is decent, I would say. And we have a six- to nine-month kind of cycle. So we generally have a reasonably good idea.

是的，哈米德，問得好。所以我覺得，從服務提供者和客戶的角度來看，情況可能會有所不同。所以，對於那些更多地接觸到雲端基礎設施等建構方式的人來說，清晰度還算不錯，我認為。我們的周期大約是六到九個月。所以我們通常能有一個比較準確的判斷。

On the Tier 1 telcos in Europe, I think we have reasonably good clarity, a little slower than normal but moving along. Japan is pretty slow, but their economy is still in a difficult spot, right? So that we -- it's in line with what we expect. In the US Tier 1 service provider, I would say, where they are exposed to cloud and infrastructure like that is good. But on the pure classic telco side, it's still a little bit choppy in the sense they may still spend the same amount for the full year, but projecting it by quarter is still harder than it normally used to be.

我認為歐洲一級電信業者的狀況相當不錯，雖然比正常情況慢一些，但總體上還在繼續。日本經濟成長較慢，但其經濟情勢依然嚴峻，對吧？所以——這符合我們的預期。在美國一級服務供應商中，我認為，如果他們能夠接觸到雲端和類似的基礎設施，那就很好了。但就純粹的傳統電信業者而言，情況仍然有些不穩定，因為他們全年的支出可能仍然相同，但按季度預測仍然比以往更加困難。

Okay. And could you just talk about what drove that big outperformance this quarter in the EMEA region for you?

好的。能否請您談談是什麼因素促成了本季 EMEA 地區的出色業績？

Sorry, Hamed, I think you broke up for one second. Can you please repeat that?

抱歉，哈米德，我覺得你剛才好像斷斷續續地停頓了一下。請您再說一次好嗎？

In the EMEA region, it seems like on your presentation slides, that was a big revenue portion. What drove that?

從你的簡報來看，EMEA 地區似乎佔據了很大的收入份額。是什麼原因導致這種情況？

I think so the -- in Q3, the EMEA portion, the step up that you saw was one big project that culminated in the period. So it's probably fair to look at that three quarter and average it to be more indicative of it. And it's not like a new step level that you should expect to continue seeing there.

我認為是的——在第三季度，也就是歐洲、中東和非洲地區，你看到的成長是一個大項目，在該時期達到了頂峰。所以，或許應該看看這四分之三的數據，取其平均值，這樣更能反映實際情況。而且這並不是一個全新的階段，你不會期待在那裡繼續看到它。

Very good. Thank you.

非常好。謝謝。

Thank you, Hamed.

謝謝你，哈米德。

Christian Schwab, Craig-Hallum.

克里斯蒂安·施瓦布，克雷格·哈勒姆。

Excuse me, great quarter. Can you give us an idea yet of the percentage of product revenue that's tied to AI-related security products?

不好意思，這季度很棒。您能否大致說明一下與人工智慧相關的安全產品在產品收入中所佔的百分比？

Yes. No, good question, Christian. And I think you have mentioned that last time as well. So we are working internally on how to create a view that does that. And the complication for us is -- for many of our customers, they were, let's say, going to build 10 data centers. Now they are still building 10, but six are designed for AI and four were what they used to do before. And I think we are trying to get a better handle on that through our customers so that we are more specific and clear in how we represent that.

是的。不，問得好，克里斯蒂安。我想你上次也提到過這一點。所以我們正在內部研究如何創建一個能夠實現這項功能的視圖。對我們來說，問題在於——比如說，我們的許多客戶打算建造 10 個資料中心。現在他們仍在建造 10 座大樓，但其中 6 座是為人工智慧設計的，另外 4 座是他們以前建造的。我認為我們正在努力透過客戶更好地了解這一點，以便我們能夠更具體地、清晰地表達這一點。

So that's the tougher part of it. Now when you look at our service provider growth improvement, I would say majority of it is related too because they are doing AI buildout. But it's hard for me to say, from the 10 data centers, they build four were AI and six were not AI, right? Because they don't market that way either. But that's something that's on our docket, Christian, and that we are working towards in our Q1 comments to start figuring out a way to show some kind of a proxy for that.

所以，這才是難點所在。現在，當你觀察我們服務提供者的成長改善時，我認為大部分也與他們進行人工智慧建置有關。但我很難說，他們建造的 10 個資料中心中，有 4 個是人工智慧資料中心，6 個不是，對吧？因為他們也不採用那種行銷方式。但克里斯蒂安，這是我們正在考慮的事情，也是我們在第一季報告中努力的方向，我們將開始想辦法找到某種替代方法。

Great. And then when you talked about the momentum in the business sustaining itself in '26, we kind of did 10%, then you went back to high single digits. So should we just kind of assume sustaining the momentum in the business, next year's top-line growth objective would be 8% to 10%. Is that -- did I hear that right?

偉大的。然後，當你談到業務在 2026 年能否保持成長勢頭時，我們實現了 10% 的成長，然後又回到了個位數的高成長。所以，如果我們假設業務維持目前的成長勢頭，那麼明年的營收成長目標將是 8% 到 10%。那是──我沒聽錯吧？

Yes, I think that's a fair way to look at it. So I think that's sort of the line of sight we have, right, is in that range for next year as well? And as we navigate things up and down, it's hard to kind of nail it down by quarter at this point. But on a full-year basis, certainly, we feel good with that ZIP code, yes.

是的，我認為這是合理的看法。所以我覺得這就是我們目前的目標方向，對吧，明年也該在這個範圍內？在我們經歷起伏的過程中，目前很難按季度準確預測結果。但從全年來看，我們對這個郵遞區號確實很滿意。

Great. And then my last question, seeing the increased customer interest as an alternative given F5's recent issues, when would be a logical time for those indications of interest to potentially turn to orders? Is that three months, nine months? How should we be thinking about that opportunity?

偉大的。最後一個問題，鑑於 F5 最近出現的問題，客戶對替代方案的興趣日益濃厚，那麼在什麼情況下，這種興趣才有可能轉化為訂單呢？是三個月，還是九個月？我們該如何看待這個機會？

Yes. No, good question. So I think, yes, as I said before, certainly, we are having customer conversations. And certainly, we wish all those customers and F5 to resolve those problems swiftly for themselves because a good thing for the industry. Typical sales cycle for us in that kind of an enterprise market is six to nine months. And we are engaged or talking to customers. But roughly speaking, that's the window in which you would see it translate into incremental bookings if that were going to be the case.

是的。不，問得好。所以我覺得，是的，正如我之前所說，我們當然在與客戶對話。當然，我們希望所有客戶和 F5 能夠盡快自行解決這些問題，這對整個產業來說都是一件好事。在這種類型的企業市場中，我們的典型銷售週期為六到九個月。我們正在與客戶互動或交談。但粗略地說，如果情況屬實，那麼你就會在這個時間內看到預訂量的增長。

Great. No other questions. Thank you.

偉大的。沒有其他問題了。謝謝。

Thank you, Christian.

謝謝你，克里斯蒂安。

Michael Romanelli, Mizuho Securities.

Michael Romanelli，瑞穗證券。

Yes. Hey, guys, thanks for taking the questions here. Yes, maybe to start off, I was wondering --

是的。嘿，各位，感謝你們回答這些問題。是的，或許一開始，我只是想問--

Hey, Mike.

嘿，麥克。

Hey, Dhrupad. I was wondering if you can comment on linearity in the quarter and how activity has been through the month of October?

嘿，德魯帕德。我想請您談談本季的線性成長情況以及10月份的業務活動？

Yes. No, good question. And I think, Michael, that it varies a little bit by regions as well. So I would say that linearity for us outside of Americas has been not atypical or in line with what we expect to get to. Within Americas, I think there is a little bit of jitter around kind of political things and tariff and interest rate. But overall, we don't see a dramatic change in linearity relative to what we were expecting.

是的。不，問得好。邁克爾，我認為這種情況在不同地區也會略有不同。所以我認為，對於我們這些身處美洲以外的人來說，這種線性發展並非異常，也並非我們預期會達到的程度。我認為，在美洲，圍繞政治、關稅和利率等方面的局勢有些動盪不安。但整體而言，與我們的預期相比，線性度並沒有顯著變化。

Got it, okay. That's helpful. And then as my follow up, it's nice to see the services revenue return to growth following consecutive quarters of decline. As part of revenue algo, how should we be thinking about your services revenue growth going forward? Thanks.

明白了，好的。那很有幫助。另外，很高興看到服務收入在連續幾季下滑後恢復成長。作為收入演算法的一部分，我們應該如何看待您未來的服務收入成長？謝謝。

Yes. No, good question. So you are right. I think there's a little bit of timing element to the service revenue because it's related to one-year, two-year, three-year kind of support contracts and so forth. The way you should think about it is if our product is growing at a certain rate, typically, that is sold with one-year service or support contract. So one year from that date, we would have a larger eligible pool of renewals and support contract and revenue. So in that sense, product revenue growing faster means that a year from now, it should naturally lead itself to service revenue growing faster as well.

是的。不，問得好。你說得對。我認為服務收入有一定的時效性因素，因為它與一年、兩年、三年等的支援合約有關。你應該這樣想：如果我們的產品以一定的速度成長，通常情況下，我們會提供一年的服務或支援合約。因此，從該日期起一年後，我們將擁有更大的符合資格的續約和支援合約及收入池。因此，從這個意義上講，產品收入成長更快意味著一年後，服務收入自然也會成長更快。

Got it, very helpful. Thank you.

明白了，很有幫助。謝謝。

No problem. Thank you. Thank you, Mike.

沒問題。謝謝。謝謝你，麥克。

Hendi Susanto, Gabelli Funds.

Hendi Susanto，Gabelli基金。

Good evening, Drupad and Michelle. Thank you for taking my questions. Dhrupad, would you talk about opportunity in AI, like we are somewhat familiar with A10 like core application, but perhaps you can go deeper into use cases for AI for service providers, data centers, Tier 1 service providers, like where you foresee A10 in influencing? For example, whether it is -- what are the growth drivers in AI, whether it is traffic or security and whether there are things that are somewhat presenting new use cases for A10?

晚上好，Drupad 和 Michelle。謝謝您回答我的問題。Dhrupad，您能否談談人工智慧領域的機會？我們對 A10 等核心應用都比較熟悉，但您能否更深入地探討一下人工智慧在服務供應商、資料中心、一級服務供應商等領域的應用案例，例如您認為 A10 將在哪些方面產生影響？例如，人工智慧的成長驅動因素是什麼？是交通還是安全？是否存在一些為 A10 帶來新用例的事物？

Sure, yes, Hendi. Thank you. Good question. So I think I'll do that briefly here. But for us, really, the -- like we have done in the last several years, we connect everything back to our differentiation. So on the foundation level, we have hardware platforms and software that now also support higher throughput, lower latency, and GPU-based architecture. So those feed into people building out data centers, whether it's enterprise or service provider or telco or cloud, right? So that's the first foundation level.

當然可以，亨迪。謝謝。問得好。所以我想我會在這裡簡要地做一下說明。但對我們來說，實際上——就像我們在過去幾年裡所做的那樣——我們將一切都與我們的差異化聯繫起來。因此，從基礎層面來看，我們現在擁有能夠支援更高吞吐量、更低延遲和基於 GPU 的架構的硬體平台和軟體。所以這些都會影響到人們建設資料中心，無論是企業、服務供應商、電信公司或雲端服務商，對吧？這是基礎第一層。

Second level is in our cybersecurity product, we have expanded coverage to where our products are able to detect and remediate threats that occur now because of AI traffic, and that will be things like prompt injection and loss of PII data and so forth, right? So that's an expansion of our networking know-how to now handle new kinds of threats that happen because of AI.

第二層是在我們的網路安全產品中，我們已經擴大了覆蓋範圍，使我們的產品能夠檢測和修復現在由於人工智慧流量而發生的威脅，例如快速注入和丟失個人識別資訊 (PII) 資料等等，對吧？這是對我們網路技術知識的擴展，現在我們可以應對因人工智慧而產生的新型威脅。

Third is, obviously, we are working with our customers on a longer-term basis to understand how we can look at traffic data from a long period of time in complex networks and use AI tools to drive predictive analytics, which, ultimately, for them, helps do better things around network planning, resource management, and which is ultimately their cost of running -- like building and running a network, right?

第三，很顯然，我們正在與客戶進行長期合作，了解如何查看複雜網路中長期的流量數據，並使用人工智慧工具來驅動預測分析，最終，這可以幫助他們在網路規劃、資源管理方面做得更好，而這最終會影響他們的營運成本——就像建立和營運網路一樣，對吧？

So that's the range of things we do. So we don't come into it thinking we are a new AI startup. What we do is we know 20 years of networking, we know cybersecurity, we have a large team of people, a lot of young graduates as well who are AI engineers. And what we are doing is we are taking our know-how in networking and security and using that as a foundation to create AI solutions that are value creating for our customers.

這就是我們所做的事情的範圍。所以，我們進入這個領域時，並不認為自己是一家新興的人工智慧新創公司。我們擁有 20 年的網路經驗，我們了解網路安全，我們擁有一支龐大的團隊，其中還有很多年輕的人工智慧工程師畢業生。我們正在做的，就是利用我們在網路和安全方面的專業知識，以此為基礎，為我們的客戶創造能夠帶來價值的人工智慧解決方案。

Got it. And then, Dhrupad, I think when you talk about US service providers, you refer like Tier 1. What does the opportunity in Tier 2 service provider look like at A10 now?

知道了。然後，Dhrupad，我想當你談到美國服務提供者時，你會提到一級服務提供者。目前A10在二級服務提供者領域的機會如何？

So I think, broadly -- so this is not AI, right? But broadly speaking, I think in the Tier 2 service provider side, a few years ago, there was a lot of discussion of government spending, rural broadband, things like that. Obviously, that has changed quite a bit, particularly with the government actually in shutdown now. So it's not that, but it's more that for those kind of carriers, our solution does not require them to fully rip and replace everything they do and then figure out how to monetize it or pay for it, right?

所以我覺得，總的來說——所以這不是人工智慧，對吧？但總的來說，我認為幾年前，在二級服務提供者方面，有很多關於政府支出、農村寬頻等問題的討論。顯然，這種情況已經發生了很大變化，特別是現在政府實際上已經停擺。所以問題不在於此，而在於對於這類運營商而言，我們的解決方案不需要他們徹底推翻並替換他們所做的一切，然後再去想如何將其貨幣化或支付費用，對吧？

Our solutions are more aligned on getting more out of those networks, doing more virtualization, things like CGNAT, which allows them to reuse addresses cheaper. And so progress there is more on an economic value proposition based on our technology. It is not a substitute for a Tier 1 who might spend 5 times as much, right? But it is something where we continue to see good resonance with our technology and solutions.

我們的解決方案更專注於從這些網路中獲得更多收益，進行更多虛擬化，例如 CGNAT，這使得它們能夠以更低的成本重複使用位址。因此，我們所取得的進展更體現在我們技術的經濟價值主張上。它不能取代消費金額可能是其 5 倍的一級商家，對吧？但我們的技術和解決方案在這方面持續獲得了良好的迴響。

Okay. Thank you, Dhrupad.

好的。謝謝你，德魯帕德。

Thank you, Hendi.

謝謝你，亨迪。

Thank you. That concludes our Q&A session. I will now hand the conference back to Dhrupad Trivedi for closing remarks. Please go ahead.

謝謝。我們的問答環節到此結束。現在我將把會議交還給德魯帕德·特里維迪，請他作閉幕致詞。請繼續。

Thank you, and thank you to all of our employees, customers and shareholders for joining us today and for your continued support. I am increasingly confident in our strategy and about our future. Thank you for your time and attention.

謝謝大家，也感謝我們所有的員工、客戶和股東今天蒞臨現場，並感謝你們一直以來的支持。我對我們的策略和未來越來越有信心。感謝您抽出寶貴時間關注。

Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

謝謝。各位，今天的活動到此結束。您可以暫時斷開連接，祝您有美好的一天。感謝您的參與。