A10 NETWORKS, INC., 10-Q filed on 5/6/2025
Quarterly Report
v3.25.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2025
May 01, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 001-36343  
Entity Registrant Name A10 NETWORKS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-1446869  
Entity Address, Address Line One 2300 Orchard Parkway  
Entity Address, City or Town San Jose  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95131  
City Area Code 408  
Local Phone Number 325-8668  
Title of 12(b) Security Common Stock, par value $0.00001 per share  
Trading Symbol ATEN  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   72,080,717
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001580808  
Current Fiscal Year End Date --12-31  
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 243,846 $ 95,129
Marketable securities 111,996 100,429
Accounts receivable, net of allowances of $530 and $465, respectively 65,379 76,687
Inventory 20,539 22,005
Prepaid expenses and other current assets 16,429 13,038
Total current assets 458,189 307,288
Property and equipment, net 42,167 39,142
Goodwill 15,070 1,307
Intangible assets, net 7,397 0
Deferred tax assets, net 62,174 62,364
Other non-current assets 21,226 22,714
Total assets 606,223 432,815
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Accounts payable 7,636 12,542
Accrued liabilities 25,905 32,696
Deferred revenue 79,682 78,335
Total current liabilities 113,223 123,573
Deferred revenue, non-current 73,060 69,924
Long-Term Debt 217,723 0
Other non-current liabilities 6,333 7,489
Total liabilities 410,339 200,986
Commitments and contingencies (Note 2 and Note 8)
Stockholders' equity:    
Common stock, $0.00001 par value: 500,000 shares authorized; 91,050 and 90,520 shares issued and 71,821 and 73,693 shares outstanding, respectively 1 1
Treasury stock, at cost: 19,229 and 16,827 shares, respectively (228,022) (180,992)
Additional paid-in-capital 514,405 508,387
Dividends paid (59,851) (55,417)
Accumulated other comprehensive income 152 194
Accumulated deficit (30,801) (40,344)
Total stockholders' equity 195,884 231,829
Total liabilities and stockholders' equity $ 606,223 $ 432,815
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable $ 530 $ 465
Common Stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 91,050,000 90,520,000
Common stock, shares outstanding (in shares) 71,821,000 73,693,000
Treasury stock (shares) 19,229,000 16,827,000
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Net revenue:    
Total net revenue $ 66,137 $ 60,675
Cost of net revenue:    
Total cost of net revenue 13,442 11,444
Gross profit 52,695 49,231
Operating expenses:    
Sales and marketing 19,545 21,214
Research and development 15,900 14,063
General and administrative 8,472 6,741
Total operating expenses 43,917 42,018
Income from operations 8,778 7,213
Non-operating income (expense):    
Interest and other income (expense), net 1,790 1,681
Other Nonoperating Income (Expense) (90) 2,326
Total non-operating income, net 1,700 4,007
Income (Loss) Attributable to Parent, before Tax 10,478 11,220
Provision for income taxes 935 1,494
Net income $ 9,543 $ 9,726
Net income per share:    
Basic $ 0.13 $ 0.13
Diluted $ 0.13 $ 0.13
Weighted-average shares used in computing net income per share:    
Basic 73,555 74,451
Diluted 75,048 75,318
Products    
Net revenue:    
Total net revenue $ 35,979 $ 30,069
Cost of net revenue:    
Total cost of net revenue 7,263 6,799
Services    
Net revenue:    
Total net revenue 30,158 30,606
Cost of net revenue:    
Total cost of net revenue $ 6,179 $ 4,645
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]    
Net income $ 9,543 $ 9,726
Other comprehensive income (loss), net of tax:    
Unrealized gain (loss) on marketable securities 23 (39)
Unrealized gain (loss) on cash flow hedge (65) 51
Comprehensive income $ 9,501 $ 9,738
v3.25.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Dividends Declared
Treasury Stock, Common
Beginning balance at Dec. 31, 2023 $ 207,876 $ 1 $ 486,958 $ (71) $ (90,484) $ (37,619) $ (150,909)
Beginning balance (in shares) at Dec. 31, 2023   74,359,000          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common stock issued under employee equity incentive plans (in shares)   305,000          
Common stock issued under employee equity incentive plans 89   89        
Unrealized gain (loss) on marketable securities (39)     (39)      
Net income 9,726       9,726    
Unrealized gain (loss) on cash flow hedge 51     51      
Ending balance (in shares) at Mar. 31, 2024   74,434,000          
Ending balance at Mar. 31, 2024 214,309 $ 1 491,164 (59) (80,758) (42,091) $ (153,948)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends, Common Stock, Cash 4,472         (4,472)  
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition 4,117   4,117        
Stock Repurchased During Period, Value (3,039)            
Treasury Stock, Shares, Acquired             (230,000)
Beginning balance at Dec. 31, 2024 231,829 $ 1 508,387 194 (40,344) (55,417) $ (180,992)
Beginning balance (in shares) at Dec. 31, 2024   73,693,000          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common stock issued under employee equity incentive plans (in shares)   530,000          
Common stock issued under employee equity incentive plans 0   0        
Unrealized gain (loss) on marketable securities 23     23      
Net income 9,543       9,543    
Unrealized gain (loss) on cash flow hedge (65)     (65)      
Ending balance (in shares) at Mar. 31, 2025   71,821,000          
Ending balance at Mar. 31, 2025 195,884 $ 1 514,405 $ 152 $ (30,801) (59,851) $ (228,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends, Common Stock, Cash 4,434         $ (4,434)  
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition 6,018   $ 6,018        
Stock Repurchased During Period, Value $ (47,030)            
Treasury Stock, Shares, Acquired (2,229,140)           (2,402,000)
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net income $ 9,543 $ 9,726
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 3,396 2,692
Stock-based compensation 6,018 3,839
Other non-cash items 1,237 456
Changes in operating assets and liabilities:    
Accounts receivable 10,543 17,684
Inventory 1,152 (2,187)
Prepaid expenses and other assets (2,896) 1,549
Accounts payable (5,646) (2,707)
Accrued liabilities (8,175) 1,820
Deferred revenue 2,032 (428)
Net cash provided by operating activities 17,204 32,444
Cash flows from investing activities:    
Proceeds from sales of marketable securities 0 4,391
Proceeds from maturities of marketable securities 30,744 39,899
Purchases of marketable securities (41,896) (40,722)
Payments to Acquire Businesses, Net of Cash Acquired (19,100) 0
Capital expenditures (4,494) (2,925)
Net cash provided by (used in) investing activities (34,746) 643
Cash flows from financing activities:    
Proceeds from issuance of common stock under employee equity incentive plans 0 89
Proceeds from Issuance of Long-Term Debt 225,000 0
Payments of Debt Issuance Costs (7,277) 0
Repurchase of common stock (47,030) (3,039)
Payments for dividends (4,434) (4,472)
Net cash provided by (used in) financing activities 166,259 (7,422)
Net increase in cash and cash equivalents 148,717 25,665
Cash and cash equivalents—beginning of period 95,129 97,244
Cash and cash equivalents—end of period 243,846 122,909
Non-cash investing and financing activities:    
Transfers between inventory and property and equipment 314 813
Capital expenditures included in accounts payable $ 193 $ 732
v3.25.1
Description of Business and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Significant Accounting Policies Description of Business and Summary of Significant Accounting Policies
Description of Business

A10 Networks, Inc. (together with our subsidiaries, the “Company”, “A10”, “we”, “our” or “us”) was incorporated in California in 2004 and reincorporated in Delaware in March 2014. We are headquartered in San Jose, California and have wholly-owned subsidiaries throughout the world including Asia and Europe.

We are a leading provider of secure application solutions and services that enable a new generation of intelligently connected companies with the ability to continuously improve cyber protection and digital responsiveness across dynamic Information Technology (“IT”) and network infrastructures. Our product portfolio seeks to address many of the cyber protection challenges and solution requirements. The portfolio consists of network infrastructure and security products. The infrastructure portfolio powers the delivery of internet services and applications while the security products protect applications, application programming interfaces (“APIs”), infrastructure and enterprises from cyber-attacks. Our security suite is known as A10 Defend. In addition, we have an intelligent management and automation tool known as A10 Control (formally Harmony Controller), which provides intelligent management, automation and analytics for secure application delivery in multi-cloud environments to help simplify operations.

Our secure infrastructure solutions include; Thunder Application Delivery Controller (“ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”). Our security products include; A10 Defend Threat Control, A10 Defend Orchestrator, A10 Defend Detector, A10 Defend Mitigator and A10 Defend ThreatX Protect. Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software. Our customers include leading service providers (cloud, telecommunications, multiple system operators, cable), government organizations, and enterprises.

We derive revenue from two sources: (i) products revenue, which includes hardware, perpetual software licenses and software subscription offerings, which include term-based license agreements; and (ii) services revenue, which includes post contract support (“PCS”), professional services, training and software-as-a-service (“SaaS”) offerings. Revenue for term-based license agreements is recognized at a point in time when the Company delivers the software license to the customer and over time once the subscription term has commenced. For our software-as-a-service offerings, our customers do not take possession of the Company’s software but rather we provide access to the service via a hosting arrangement. Revenue in these arrangements is recognized over time as the services are provided. A substantial portion of our revenue is from sales of our products and services through distribution channels, such as resellers and distributors. Our customers predominantly purchase PCS services in conjunction with purchases of our products.

We sell our products globally to service providers and enterprises that depend on data center applications and networks to generate revenue and manage operations efficiently. We report two customer verticals: service providers, which accounted for 59% and 62% of our total revenue during the three months ended March 31, 2025 and 2024, respectively, and enterprise, which accounted for 41% and 38% of our total revenue during the three months ended March 31, 2025 and 2024, respectively. While we expect total demand to remain strong as the need for cybersecurity solutions continues to increase, we expect the demand shift trend from service provider to enterprise to continue in the near term. We report customer revenues in three broad geographic regions: the Americas, APJ and EMEA regions. The Americas region comprises the U.S. and all other countries in the Americas (excluding the U.S.). The APJ region comprises Japan and all other countries in APAC (excluding Japan). The EMEA region comprises Europe, Middle East and Africa. We believe this geographic view aligns with how we manage the business and maps our product portfolio to customer verticals.

Our end-customers operate in a variety of industries, including telecommunications, technology, industrial, retail, financial, gaming, education and government. Since inception, our customer base has grown significantly.

We sell substantially all of our solutions through our high-touch sales organization as well as distribution channels, including distributors, value-added resellers and system integrators, and fulfill nearly all orders globally through such resellers. We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers. We outsource the manufacturing of our hardware products to original design manufacturers. We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations.

As a result of the nature of our target market and the current stage of our development, a substantial portion of our revenue comes from a limited number of large end-customers and service providers. Purchases from our ten largest end-customers accounted for 44% of our total revenue for both the three months ended March 31, 2025 and 2024, respectively. Sales to these large end-customers have typically been characterized by large but irregular purchases with long sales cycles. The timing of these purchases and the delivery of the purchased products are difficult to predict and rely upon customer growth and
network enhancements. Consequently, any acceleration or delay in anticipated product purchases by or deliveries to our largest end-customers could materially impact our revenue and operating results in any quarterly period. This may cause our quarterly revenue and operating results to fluctuate from quarter to quarter and make them difficult to predict.

In February 2025, we acquired substantially all assets and key personnel of ThreatX Protect, which expanded our cybersecurity portfolio with WAAP protection (web application and application programming interfaces).

We intend to continue to invest for long-term growth. We have invested and expect to continue to invest in our product development efforts to deliver new products and additional features in our current products to address customer needs. In addition, we may expand our global sales and marketing organizations, expand our distribution channel programs and increase awareness of our solutions on a global basis. Our investments in growth in these areas may affect our short-term profitability.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions.

We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2024 has been derived from our audited financial statements, which are included in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 25, 2025 (the “2024 Annual Report”).

These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. 

These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2024 Annual Report.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for credit losses for potential uncollectible amounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, contingencies and litigation, accrued liabilities, deferred commissions, ThreatX Protect purchase consideration and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements, therefore, actual results could differ from management’s estimates.

Significant Accounting Policies

Business Combinations
We use our best estimates and assumptions to allocate the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We apply significant judgment in determining the fair value of the intangible assets acquired, which involves the use of significant estimates and assumptions with respect to revenue growth rates, royalty rate and technology migration curve. While we use our best estimates and judgments, our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to our preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the final determination of the fair value of assets acquired or liabilities assumed during the measurement period, any subsequent adjustments are included in our condensed consolidated statements of operations.

The results of operations for businesses acquired are included in the financial statements from the acquisition date. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.

The Company’s other significant accounting policies are disclosed in Part II – Item 8, “Financial Statements and Supplementary Data” of the 2024 Annual Report. Aside from adding the Company’s significant accounting policy regarding business combinations, there have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2025.

Concentration of Credit Risk and Significant Customers

Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high-credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk.

Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable.

Significant customers, including distribution channels and direct customers (“end-customers”), are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date.

A substantial portion of our revenue is from sales of our products and services through distribution channels, such as resellers and distributors. In the three months ended March 31, 2025, sales through a single distribution channel partner represented 17% of our total revenue. In the three months ended March 31, 2024, sales through two distribution channels represented 18% and 14% of our total revenue.

Revenues from our significant end-customers as a percentage of our total revenue are as follows:

Three Months Ended March 31,
Customers20252024
Customer A15%14%
Customer B*11%
* represents less than 10% of total revenue
As of March 31, 2025, one distribution channel accounted for 21% of our total gross accounts receivable. As of December 31, 2024, one distribution channel accounted for 34% of our total gross accounts receivable.

Recent Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the consolidated financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We chose not to early adopt ASU 2023-09.

There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the three months ended March 31, 2025 that are of significance or potential significance to us.
v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company leases various operating spaces in the United States, Asia and Europe under non-cancellable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses.

The table below presents the Company’s right-of-use assets and lease liabilities as of March 31, 2025 (in thousands):

As of March 31, 2025As of December 31, 2024
Operating leases
Right-of-use assets:
Other non-current assets$10,294 $11,539 
Total right-of-use assets$10,294 $11,539 
Lease liabilities:
Accrued liabilities$4,669 $4,744 
Other non-current liabilities6,015 7,194 
Total operating lease liabilities$10,684 $11,938 

The aggregate future lease payments for non-cancelable operating leases as of March 31, 2025 were as follows (in thousands):

Remainder of 2025$3,617 
20264,913 
20272,441 
Total lease payments10,971 
Less: imputed interest(287)
Present value of lease liabilities$10,684 

The components of lease costs were as follows (in thousands):
Three Months Ended March 31,
20252024
Operating lease costs$1,086 $1,085 
Short-term lease costs185 116 
Total lease costs$1,271 $1,201 

Average lease terms and discount rates for the Company’s operating leases were as follows:
Three Months Ended March 31,
20252024
Weighted-average remaining term (years)2.243.15
Weighted-average discount rate3.18%3.19%

Supplemental cash flow information for the Company’s operating leases were as follows (in thousands):
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,369 $1,354 
v3.25.1
Marketable Securities and Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Marketable Securities and Fair Value Measurements Marketable Securities and Fair Value Measurements
Marketable Securities

Marketable securities, classified as available-for-sale, consisted of the following (in thousands):
As of March 31, 2025As of December 31, 2024
 Amortized CostGross Unrealized GainsGross Unrealized LossesFair ValueAmortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Corporate securities$58,885 $62 $(10)$58,937 $52,311 $102 $(12)$52,401 
U.S. Treasury and agency securities52,828 238 (7)53,059 47,865 163 — 48,028 
Debt securities$111,713 $300 $(17)$111,996 $100,176 $265 $(12)$100,429 

During the three months ended March 31, 2025 and 2024, we did not reclassify any amount to earnings from accumulated other comprehensive income related to unrealized gains or losses.

The following table summarizes the cost and estimated fair value of our marketable securities based on stated effective maturities as of March 31, 2025 (excluding publicly held equity securities, in thousands):
As of March 31, 2025Amortized CostFair Value
Less than 1 year$60,062 $60,164 
Mature in 1 - 3 years51,651 51,832 
Debt securities$111,713 $111,996 
All available-for-sale securities have been classified as current because they are available for use in current operations.
Marketable securities in an unrealized loss position as of March 31, 2025 consisted of the following (in thousands):

Less Than 12 Months12 Months or MoreTotal
As of March 31, 2025Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Corporate securities$16,448 $(10)$— $— $16,448 $(10)
U.S. Treasury and agency securities6,993 (7)— — 6,993 (7)
Total$23,441 $(17)$— $— $23,441 $(17)

Marketable securities in an unrealized loss position as of December 31, 2024 consisted of the following (in thousands):

Less Than 12 Months12 Months or MoreTotal
As of December 31, 2024Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Corporate securities$12,516 $(12)$— $— $12,516 $(12)
Total$12,516 $(12)$— $— $12,516 $(12)

Based on evaluation of securities that have been in a continuous loss position, we did not recognize any other-than-temporary impairment charges during the three months ended March 31, 2025 and 2024.

Fair Value Measurements

The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands):
 As of March 31, 2025As of December 31, 2024
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash$118,202 $— $— $118,202 $89,195 $— $— $89,195 
Cash equivalents125,644 — — 125,644 5,934 — — 5,934 
Corporate securities— 58,937 — 58,937 — 52,401 — 52,401 
U.S. Treasury and agency securities38,320 14,739 — 53,059 38,025 10,003 — 48,028 
$282,166 $73,676 $— $355,842 $133,154 $62,404 $— $195,558 
There were no transfers between Level 1 and Level 2 fair value measurement categories during the three months ended March 31, 2025 and 2024.
The Company measures the fair value of the 2030 Notes (as defined below) for disclosure purposes on a recurring basis. The carrying value of the 2030 Notes approximates fair value. The 2030 Notes are categorized as Level 2 since their fair values is based on Level 2 inputs of quoted prices.
v3.25.1
Acquisition
 3 Months Ended
Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisition Acquisition
ThreatX Protect Business

In February 2025, we completed an acquisition of the ThreatX Protect business of ThreatX, Inc. for $19.6 million in cash. This acquisition has been accounted for as a business combination. The preliminary purchase price allocation is as follows: $7.6 million to identified intangible assets, $2.5 million to deferred revenue assumed and $0.7 million to net assets acquired, with the excess $13.8 million of the preliminary purchase price over the fair value of net assets acquired recorded as goodwill, allocated to our single operating segment. Goodwill is primarily attributable to assembled workforce, future synergies, and other intangible assets that do not qualify for separate recognition. Goodwill is not deductible for tax purposes.

The results of operations of the acquired business, which are not material, have been included in our condensed consolidated financial statements from the date of the acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to the condensed consolidated statements of operations.

The Company incurred approximately $0.3 million of acquisition-related costs, including legal, accounting, and advisory fees. These costs were expensed as incurred and included in general and administrative expenses in the condensed consolidated statements of operations. The cash outflows for these costs are classified as operating activities in the condensed consolidated statements of cash flows.

Acquired Intangible Assets

The following table sets forth the components of acquired intangible assets and their estimated useful lives as of the date of acquisition (in thousands, except years):
Fair ValueUseful Life (Years)
Developed technology$5,700,000 5
Customer relationships1,500,000 5
Trademark / trade name400,000 4
Total$7,600,000 

Intangible assets subject to amortization as of March 31, 2025 are as follows (in thousands, except years):
 GrossAccumulated AmortizationNetWeighted-Average Remaining Useful Life
(in years)
Developed technology$5,700 $(150)$5,550 4.9
Customer relationships1,500 (40)1,460 4.9
Trademark / trade name400 (13)387 3.9
$7,600 $(203)$7,397 


Amortization expense from acquired intangible assets was $0.2 million for the period ended March 31, 2025.

The expected future amortization expense for acquired intangible assets as of March 31, 2025 is as follows (in thousands):

Remainder of 2025$1,155 
20261,540 
20271,540 
20281,540 
20291,452 
2030170 
Total amortization expense$7,397 

Goodwill

The Company recorded goodwill in the amount of $13.8 million. There were no events or changes in circumstances that triggered an impairment review during the three months ended March 31, 2025.
v3.25.1
Long-Term Debt
 3 Months Ended
Mar. 31, 2025
Line of Credit Facility [Abstract]  
Long-Term Debt Long-Term Debt
2030 Convertible Senior Notes

In March 2025, the Company issued $225.0 million aggregate principal amount of 2.75% Convertible Senior Notes due 2030 (the “2030 Notes”). The Company received net proceeds from the offering of approximately $217.7 million. The 2030 Notes will mature on April 1, 2030, unless earlier converted, redeemed or repurchased.

The 2030 Notes bear interest at the stated rate of 2.75% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2025. The 2030 Notes are convertible into solely cash, or a combination of cash and shares of common stock, at the Company’s election, at an initial conversion rate of 42.6257 shares of common stock per $1,000 principal amount of 2030 Notes, which is equivalent to an initial conversion price of $23.46003 per share of common stock. The conversion rate is subject to customary adjustments for certain events as described in the indenture governing the 2030 Notes (the “2030 Notes Indenture”). Special interest and additional interest will accrue on the 2030 Notes in the circumstances and at the rates described in the 2030 Notes Indenture. The debt issuance costs are amortized to interest expense applying the effective interest method. The 2030 Notes do not contain financial maintenance covenants.

The holders may convert their 2030 Notes at their option only in the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on June 30, 2025, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during five consecutive business days immediately after any ten consecutive trading day period (such ten consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of 2030 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of Company’s common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on the Company’s common stock, as described in the 2030 Notes Indenture; (4) if the Company calls such 2030 Notes for redemption; and (5) at any time from, and including, December 1, 2029 until the close of business on the 2nd scheduled trading day immediately before the maturity date.

If the Company undergoes a fundamental change (as defined in the 2030 Notes Indenture), subject to certain conditions, holders may require the Company to repurchase for cash all or any portion of their 2030 Notes, at a fundamental change repurchase price equal to 100% of the principal amount of the 2030 Notes to be repurchased, plus any accrued and unpaid special interest and additional interest, if any, up to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events or if the Company issues a notice of redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their 2030 Notes in connection with such corporate event or during the relevant redemption period.

The 2030 Notes are redeemable, in whole or in part (subject to certain limitations), for cash at Company’s option at any time, and from time to time, on or after April 5, 2028 and on or before the 60th scheduled trading day immediately before the maturity date, but only if (i) the 2030 Notes are “freely tradable” (as defined in the 2030 Notes Indenture) and all accrued and unpaid additional interest, if any, has been paid in full; and (ii) the last reported sale price per share of common stock is at least 130% of the conversion price for a specified period of time. The redemption price will be equal to the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid special and additional interest, if any, to, but excluding, the redemption date.
The 2030 Notes have customary provisions relating to the occurrence of “events of default” (as defined in the 2030 Notes Indenture). The occurrence of such events of default may result in the acceleration of all amounts due under 2030 Notes. The 2030 Notes were not eligible for conversion as of March 31, 2025. No sinking fund is provided for the 2030 Notes.

The 2030 Notes are general unsecured obligations of the Company and rank senior in right of payment to all of Company’s existing and future indebtedness that is expressly subordinated in the right of payment to the 2030 Notes; equal in right of payment with all of the Company’s existing and future senior, unsecured indebtedness; effectively subordinated to any of the Company’s existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness; and structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity if any, of the Company’s current or future subsidiaries. As of March 31, 2025, none of the conditions permitting the holders of the 2030 Notes to convert their notes early had been met. Therefore, the 2030 Notes are classified as long-term debt.

The Company accounted for the issuance of the 2030 Notes as a single liability measured at its amortized cost, as no embedded features require bifurcation and recognition as derivatives.

The carrying value of the 2030 Notes, net of unamortized issuance costs of $7.3 million, was $217.7 million as of March 31, 2025. Interest expense related to the amortization of debt issuance costs was $0.3 million for the three months ended March 31, 2025. The effective interest rate on the 2030 Notes is 3.43%.
v3.25.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Lease Commitments

We lease various operating spaces in the United States, Asia and Europe under non-cancelable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. We recognize rent expense under these arrangements on a straight-line basis over the term of the lease. See Note 2 – Leases for the Company’s aggregate future lease payments for the Company’s non-cancelable operating leases as of March 31, 2025.

Rent expense was $1.3 million and $1.2 million for the three months ended March 31, 2025 and 2024, respectively.

Purchase Commitments

We have open purchase commitments with third-party contract manufacturers with facilities in Taiwan to supply nearly all of our finished goods inventories, spare parts, and accessories. These purchase orders are expected to be paid within one year of the issuance date. We had open purchase commitments with manufacturers in Taiwan totaling $12.1 million as of March 31, 2025.

Guarantees and Indemnifications

In the normal course of business, we provide indemnifications to customers against claims of intellectual property infringement made by third parties arising from the use of our products. Other guarantees or indemnification arrangements include guarantees of product and service performance, and standby letters of credit for lease facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantees and indemnification arrangements have not had any significant impact on our condensed consolidated financial statements to date.
v3.25.1
Equity Incentive Plans and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans and Stock-Based Compensation Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Programs
Equity Incentive Plans

2014 Equity Incentive Plan and 2023 Stock Incentive Plan

The 2014 Equity Incentive Plan (the “2014 Plan”) was in effect until it was replaced by the 2023 Stock Incentive Plan (the “2023 Plan”) on April 1, 2023. No further grants will be made under the 2014 Plan. Both the 2014 Plan and 2023 Plan provide for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), market performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our Board of Directors (the “Board”). As of March 31, 2025, we had 3,109,003 shares available for future grant under the 2023 Plan.
2014 Employee Stock Purchase Plan

The 2014 Employee Stock Purchase Plan, as amended (the “Amended 2014 Purchase Plan”) provides employees with an opportunity to purchase our common stock through accumulated contributions, up to a maximum of 10% of eligible compensation, with offering periods of six months in duration, beginning on or about December 1 and June 1 each year. As of March 31, 2025, the Company had 531,170 shares available for future issuance under the Amended 2014 Purchase Plan.

Stock-Based Compensation

A summary of our stock-based compensation expense is as follows (in thousands):
Three Months Ended March 31,
20252024
Stock-based compensation by type of award:
Stock awards$5,794 $3,532 
Employee stock purchase rights224 307 
$6,018 $3,839 
Stock-based compensation by category of expense:
Cost of net revenue$625 $457 
Sales and marketing894 1,033 
Research and development1,390 869 
General and administrative3,109 1,480 
$6,018 $3,839 

As of March 31, 2025, the Company had $35.8 million of unrecognized stock-based compensation expense related to unvested stock-based awards, including common stock acquired under our Amended 2014 Purchase Plan, which will be recognized over a weighted-average period of 2.4 years.

Stock Options

There were no options outstanding during the three months ended March 31, 2025.

The intrinsic value of options exercised was $0.2 million during the three months ended March 31, 2024.

Stock Awards

The Company has granted RSUs to its employees, consultants and members of the Board, and PSUs to certain executives and employees. The Company’s PSUs have market performance-based vesting conditions as well as service-based vesting conditions. As of March 31, 2025, there were 2,502,457 RSUs and 654,750 PSUs outstanding.
The following table summarizes our stock award activities and related information:
Number of Shares (thousands)Weighted-Average Grant Date Fair Value Per ShareWeighted-Average Remaining Vesting Term
(years)		Aggregate Fair Value (thousands)
Nonvested as of December 31, 20243,243 $13.65 
Granted468 19.61 
Released(530)12.64 
Canceled(24)14.71 
Nonvested as of March 31, 20253,157 $14.70 1.69$51,589 

The aggregate fair value of stock awards released was $6.7 million and $2.9 million for the three months ended March 31, 2025 and 2024, respectively.

Stock Repurchase Programs

On November 1, 2022, the Company announced that the Board authorized a stock repurchase program of up to $50 million of its common stock over a period of twelve months. On November 7, 2023, the Company announced that the Board authorized a stock repurchase program of up to $50 million of its common stock over a period of twelve months. These repurchase programs were active for twelve months and are expired.

On November 7, 2024, the Company announced that the Board authorized a stock repurchase program of up to $50 million of its common stock (the “2024 Program”). The 2024 Program does not have a specified term or termination date. During the three months ended March 31, 2025, we repurchased 2,229,140 shares for a total of $43.6 million or $19.55 per share under the 2024 Program. As of March 31, 2025, the Company had $1.2 million available to repurchase shares under the 2024 Program. The Board terminated the 2024 Program on May 1, 2025.

On May 1, 2025, the Company announced that the Board authorized a new stock repurchase program of up to $75 million of its common stock (the “2025 Program”). The 2025 Program does not have a specified term or termination date.

Under the Company’s stock repurchase programs, repurchased shares are held in treasury at cost. The Company’s stock repurchase programs do not obligate it to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities and Exchange Act of 1934 (the “Exchange Act”).
v3.25.1
Net Income Per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic net income per share is computed using the weighted average number of common shares outstanding for the period. Diluted net income per share applying the treasury stock method is computed using the weighted average number of common shares outstanding for the period plus potential dilutive common shares, including stock options, RSUs, PSUs, employee stock purchase rights and the 2030 Notes, unless the potential common shares are anti-dilutive.

Basic and diluted net income per share are calculated as follows (in thousands, except per share amounts):
Three Months Ended March 31,
20252024
Basic and diluted net income per share
Numerator:
Net income$9,543 $9,726 
Denominator:
Weighted-average shares outstanding - basic73,555 74,451 
Effect of dilutive potential common shares from stock options, stock awards and employee stock purchase plan1,493 867 
Weighted-average shares outstanding - diluted75,048 75,318 
Net income per share:
Basic$0.13 $0.13 
Diluted$0.13 $0.13 

The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive (in thousands):

Three Months Ended March 31,
20252024
Stock options, stock awards and employee stock purchase rights144 65 
2030 Notes1,598 — 
Total1,742 65 
v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We recorded a provision for income taxes of $0.9 million and $1.5 million for the three months ended March 31, 2025 and 2024, respectively. The Company’s income tax provision for the three months ended March 31, 2025 and 2024 primarily consisted of U.S. federal and state taxes.

We had $8.2 million of unrecognized tax benefits as of March 31, 2025. We do not anticipate a material change to our unrecognized tax benefits over the next twelve months. Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business.

Accrued interest and penalties related to unrecognized tax benefits are recognized as part of our provision for income taxes in our condensed consolidated statements of operations.

We are subject to taxation in the United States, various states, and several foreign jurisdictions. Because we have net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state and foreign taxing authorities may examine our tax returns for all years from 2005 through the current period. We are not currently under examination by any taxing authorities.
v3.25.1
Geographic Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Geographic Information Segment and Geographic Information
ASC 280 Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") to assess performance and to decide how to allocate resources. The Company manages its business on the basis of one reportable segment and one operating segment and derives revenues from two sources: products revenue and services revenue.

The Company’s CODM is our Chief Executive Officer, Dhrupad Trivedi. Our CODM assesses the performance of the Company and decides how to allocate resources based upon consolidated net income, which is also reported within the
condensed consolidated statements of operations. The CODM uses consolidated net income to monitor period-over-period results, to assess financial performance and decide where to allocate additional resources within the business. The CODM does not regularly review significant classifications of expenses outside those shown on the condensed consolidated statements of operations.

We report customer revenues in three broad geographic regions: the Americas, APJ and EMEA regions. The Americas region comprises the United States and other countries in the Americas (excluding the United States). The APJ region comprises Japan and all other countries in APAC (excluding Japan). The EMEA region comprises Europe, Middle East and Africa. We believe this geographic view aligns with how we manage the business and maps our product portfolio to customer verticals.

The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers (in thousands):
Three Months Ended March 31,
20252024
Americas$33,496 $27,442 
United States30,117 23,144 
Americas-other3,379 4,298 
APJ18,619 25,043 
EMEA14,022 8,190 
Total net revenue$66,137 $60,675 

The following table is a summary of our long-lived assets which include property and equipment, net and operating lease right-of-use assets based on the physical location of the assets (in thousands):
As of March 31, 2025As of December 31, 2024
Americas$47,915 $48,468 
Japan284 363 
Other2,285 1,850 
Total$50,484 $50,681 
v3.25.1
Revenue Revenue
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
We report two customer verticals: service providers and enterprises. Revenue generated from service providers and enterprises was as follows (in thousands):
Three Months Ended March 31,
20252024
Service providers$38,997 $37,661 
Enterprises27,140 23,014 
Total$66,137 $60,675 

Contract Balances
The following table reflects contract balances with customers (in thousands):
 As of March 31, 2025As of December 31, 2024
Accounts receivable, net$65,379 $76,687 
Deferred revenue, current79,682 78,335 
Deferred revenue, non-current73,060 69,924 
We receive payments from customers based upon billing cycles. Invoice payment terms usually range from 30 to 90 days.

Accounts receivable are recorded when the right to consideration becomes unconditional.

Contract assets include amounts related to our contractual right to consideration for performance obligations not yet billed and are included in prepaid and other current assets in the condensed consolidated balance sheets. The amounts were immaterial as of March 31, 2025 and December 31, 2024.

Deferred revenue primarily consists of amounts that have been invoiced but not yet been recognized as revenue and consists of performance obligations pertaining to support and subscription services. We recognized revenue of $26.1 million and $27.2 million during the three months ended March 31, 2025 and 2024, respectively, related to deferred revenues at the beginning of the respective periods.
Deferred Contract Acquisition Costs

We capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense.
As of March 31, 2025, the current and non-current portions of deferred contract acquisition costs were $6.5 million and $5.0 million, respectively. As of December 31, 2024, the current and non-current portions of deferred contract acquisition costs were $6.2 million and $4.4 million, respectively. Related amortization expense was $1.7 million and $2.0 million for the three months ended March 31, 2025 and 2024, respectively.

We had no impairment loss in relation to the costs capitalized and no asset impairment charges related to contract assets during the three months ended March 31, 2025 and 2024.

Remaining Performance Obligations
Remaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations, which include deferred revenues and amounts that will be invoiced and recognized as revenues in future periods.
We expect to recognize revenue on the remaining performance obligations as follows (in thousands):
As of March 31, 2025
Within 1 year$79,682 
Next 2 to 3 years56,772 
Thereafter16,288 
Total$152,742 
v3.25.1
Subsequent Events
 3 Months Ended
Mar. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On May 1, 2025, the Company announced that the Board approved a quarterly cash dividend. The dividend, in the amount of $0.06 per share outstanding, will be paid on June 2, 2025 to stockholders of record on May 15, 2025 as a return of capital. Future dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews the Company’s capital allocation strategy from time-to-time.

Also on May 1, 2025, the Company announced that the Board authorized a new stock repurchase program (the “2025 Program”) under which the Company may repurchase up to $75 million of its outstanding common stock. The 2025 Program does not have a specified term or termination date. Under the 2025 Program, the Company is authorized to repurchase shares of common stock in open market or privately negotiated transactions, including under plans complying with Rule 10b5-1 under
the Exchange Act. Any repurchase of such shares in open market transactions shall be conducted in accordance with the limitations and guidelines of Rule 10b-18 promulgated by the SEC pursuant to the Exchange Act. The Board will review the stock repurchase program periodically and may authorize adjustment of its term and size. The Company plans to fund repurchases from its existing cash balance and cash provided by operating activities. In connection with the authorization of the 2025 Program, the Board terminated the 2024 Program.
v3.25.1
Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure Derivatives
Foreign Exchange Forward Contracts

The Company uses derivative financial instruments to manage exposures to foreign currency that may or may not be designated as hedging instruments. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The Company enters into foreign exchange forward contracts primarily to mitigate the effect of gains and losses generated by foreign currency transactions related to certain operating expenses and remeasurement of certain assets and liabilities denominated in foreign currencies.
For foreign exchange forward contracts not designated as hedging instruments, the fair value of the derivatives in a net gain or net loss position are recorded in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. Changes in the fair value of derivatives are recorded in other income, net in the accompanying condensed consolidated statements of operations. As of March 31, 2025 and December 31, 2024, foreign exchange forward currency contracts not designated as hedging instruments had total notional amounts of $1.9 million and $7.6 million, respectively. These contracts have maturities of approximately 30 days. For the three months ended March 31, 2025 and 2024, the Company recorded unrealized net losses of $24 thousand and $0.2 million, respectively, in its condensed consolidated statements of operations related to these contracts. For the three months ended March 31, 2025 and 2024, the net realized gain recorded in the condensed consolidated statements of operations from these contracts was $0.5 million and $2.7 million, respectively.

For foreign exchange forward contracts designated as hedging instruments, unrealized gains and losses arising from these contracts are recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. These hedging contracts have 30 day maturities. The hedging gains and losses in accumulated other comprehensive income (loss) in the consolidated balance sheet are subsequently reclassified to expenses, as applicable, in the consolidated statements of operations in the same period in which the underlying transactions affect the Company’s earnings. As of March 31, 2025, foreign exchange forward currency contracts designated as hedging instruments had notional amounts of $14.5 million. As of December 31, 2024, there were no outstanding foreign exchange forward contracts designated as hedging instruments.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net income $ 9,543 $ 9,726
v3.25.1
Insider Trading Arrangements
shares in Thousands
 3 Months Ended
Mar. 31, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Scott Weber [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On February 24, 2025, Scott Weber, General Counsel and Corporate Secretary, adopted a trading plan intended to satisfy Rule 10b5-1(c) under the Exchange Act with respect to the sale of up to 5,000 shares of our common stock between May 27, 2025 and May 28, 2025.
Name Scott Weber
Title General Counsel and Corporate Secretary
Rule 10b5-1 Arrangement Adopted true
Adoption Date February 24, 2025
Expiration Date May 28, 2025
Arrangement Duration 1 day
Aggregate Available 5
v3.25.1
Description of Business and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions.

We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2024 has been derived from our audited financial statements, which are included in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 25, 2025 (the “2024 Annual Report”).

These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. 

These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2024 Annual Report.
Use of Estimates
Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for credit losses for potential uncollectible amounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, contingencies and litigation, accrued liabilities, deferred commissions, ThreatX Protect purchase consideration and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements, therefore, actual results could differ from management’s estimates.
Concentration of Credit Risk and Significant Customers
Concentration of Credit Risk and Significant Customers

Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high-credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk.

Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable.

Significant customers, including distribution channels and direct customers (“end-customers”), are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date.

A substantial portion of our revenue is from sales of our products and services through distribution channels, such as resellers and distributors. In the three months ended March 31, 2025, sales through a single distribution channel partner represented 17% of our total revenue. In the three months ended March 31, 2024, sales through two distribution channels represented 18% and 14% of our total revenue.
Recently Adopted Accounting Guidance/Recent Accounting Pronouncements Not Yet Effective
Recent Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the consolidated financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We chose not to early adopt ASU 2023-09.

There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the three months ended March 31, 2025 that are of significance or potential significance to us.
Deferred Contract Acquisition Costs
Deferred Contract Acquisition Costs

We capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense.
v3.25.1
Description of Business and Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Revenue as Percentage of Total Revenue
Three Months Ended March 31,
Customers20252024
Customer A15%14%
Customer B*11%
* represents less than 10% of total revenue
v3.25.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Assets And Liabilities,
The table below presents the Company’s right-of-use assets and lease liabilities as of March 31, 2025 (in thousands):

As of March 31, 2025As of December 31, 2024
Operating leases
Right-of-use assets:
Other non-current assets$10,294 $11,539 
Total right-of-use assets$10,294 $11,539 
Lease liabilities:
Accrued liabilities$4,669 $4,744 
Other non-current liabilities6,015 7,194 
Total operating lease liabilities$10,684 $11,938 
Lease Payments
The aggregate future lease payments for non-cancelable operating leases as of March 31, 2025 were as follows (in thousands):

Remainder of 2025$3,617 
20264,913 
20272,441 
Total lease payments10,971 
Less: imputed interest(287)
Present value of lease liabilities$10,684 
Lease Costs
Three Months Ended March 31,
20252024
Operating lease costs$1,086 $1,085 
Short-term lease costs185 116 
Total lease costs$1,271 $1,201 

Average lease terms and discount rates for the Company’s operating leases were as follows:
Three Months Ended March 31,
20252024
Weighted-average remaining term (years)2.243.15
Weighted-average discount rate3.18%3.19%

Supplemental cash flow information for the Company’s operating leases were as follows (in thousands):
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,369 $1,354 
v3.25.1
Marketable Securities and Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Available-for-sale Securities
Marketable securities, classified as available-for-sale, consisted of the following (in thousands):
As of March 31, 2025As of December 31, 2024
 Amortized CostGross Unrealized GainsGross Unrealized LossesFair ValueAmortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Corporate securities$58,885 $62 $(10)$58,937 $52,311 $102 $(12)$52,401 
U.S. Treasury and agency securities52,828 238 (7)53,059 47,865 163 — 48,028 
Debt securities$111,713 $300 $(17)$111,996 $100,176 $265 $(12)$100,429 
Schedule of Cost and Estimated Fair Values of Available-for-sale Securities by Contractual Maturity
The following table summarizes the cost and estimated fair value of our marketable securities based on stated effective maturities as of March 31, 2025 (excluding publicly held equity securities, in thousands):
As of March 31, 2025Amortized CostFair Value
Less than 1 year$60,062 $60,164 
Mature in 1 - 3 years51,651 51,832 
Debt securities$111,713 $111,996 
Schedule of gross unrealized losses
Marketable securities in an unrealized loss position as of March 31, 2025 consisted of the following (in thousands):

Less Than 12 Months12 Months or MoreTotal
As of March 31, 2025Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Corporate securities$16,448 $(10)$— $— $16,448 $(10)
U.S. Treasury and agency securities6,993 (7)— — 6,993 (7)
Total$23,441 $(17)$— $— $23,441 $(17)

Marketable securities in an unrealized loss position as of December 31, 2024 consisted of the following (in thousands):

Less Than 12 Months12 Months or MoreTotal
As of December 31, 2024Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Corporate securities$12,516 $(12)$— $— $12,516 $(12)
Total$12,516 $(12)$— $— $12,516 $(12)
Schedule of Cash, Cash Equivalents and Available-for-sale Investments Measured at Fair Value on Recurring Basis
The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands):
 As of March 31, 2025As of December 31, 2024
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash$118,202 $— $— $118,202 $89,195 $— $— $89,195 
Cash equivalents125,644 — — 125,644 5,934 — — 5,934 
Corporate securities— 58,937 — 58,937 — 52,401 — 52,401 
U.S. Treasury and agency securities38,320 14,739 — 53,059 38,025 10,003 — 48,028 
$282,166 $73,676 $— $355,842 $133,154 $62,404 $— $195,558 
v3.25.1
Acquisition (Tables)
 3 Months Ended
Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquired Intangible Assets and Estimated Useful Lives
The following table sets forth the components of acquired intangible assets and their estimated useful lives as of the date of acquisition (in thousands, except years):
Fair ValueUseful Life (Years)
Developed technology$5,700,000 5
Customer relationships1,500,000 5
Trademark / trade name400,000 4
Total$7,600,000 
Schedule of Intangible Assets Subject to Amortization
Intangible assets subject to amortization as of March 31, 2025 are as follows (in thousands, except years):
 GrossAccumulated AmortizationNetWeighted-Average Remaining Useful Life
(in years)
Developed technology$5,700 $(150)$5,550 4.9
Customer relationships1,500 (40)1,460 4.9
Trademark / trade name400 (13)387 3.9
$7,600 $(203)$7,397 
Schedule of Expected Future Amortization Expense
The expected future amortization expense for acquired intangible assets as of March 31, 2025 is as follows (in thousands):

Remainder of 2025$1,155 
20261,540 
20271,540 
20281,540 
20291,452 
2030170 
Total amortization expense$7,397 
v3.25.1
Condensed Consolidated Financial Statement Details (Tables)
 3 Months Ended
Mar. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Inventory
Inventory consisted of the following (in thousands):
As of March 31, 2025As of December 31, 2024
Raw materials$12,548 $12,883 
Finished goods7,991 9,122 
Total inventory$20,539 $22,005 
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
As of March 31, 2025As of December 31, 2024
Prepaid expenses$7,989 $4,245 
Deferred contract acquisition costs6,502 6,201 
Other1,938 2,592 
       Total prepaid expenses and other current assets$16,429 $13,038 
Schedule of Property and Equipment, Net
Property and equipment, net, consisted of the following (in thousands):
Useful LifeAs of March 31, 2025As of December 31, 2024
(in years)
Equipment1 - 5$38,640 $36,615 
Software1 - 36,478 5,705 
Furniture and fixtures1 - 7531 531 
Leasehold improvementsLease term3,439 3,439 
Construction in process24,685 22,651 
Property and equipment, gross73,773 68,941 
Less: accumulated depreciation(31,606)(29,799)
Property and equipment, net$42,167 $39,142 
Schedule of Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
As of March 31, 2025As of December 31, 2024
Accrued compensation and benefits$11,198 $19,058 
Accrued tax liabilities2,989 2,687 
Lease liability4,669 4,744 
Other7,049 6,207 
Total accrued liabilities$25,905 $32,696 
Schedule of Deferred Revenue
Deferred revenue consisted of the following (in thousands):
As of March 31, 2025As of December 31, 2024
Deferred revenue:
Products$5,355 $4,405 
Services147,387 143,854 
Total deferred revenue152,742 148,259 
Less: current portion(79,682)(78,335)
Non-current portion$73,060 $69,924 
The following table reflects contract balances with customers (in thousands):
 As of March 31, 2025As of December 31, 2024
Accounts receivable, net$65,379 $76,687 
Deferred revenue, current79,682 78,335 
Deferred revenue, non-current73,060 69,924 
Financing Receivable, Allowance for Credit Loss
Accounts Receivable Allowance for Credit Losses

The following table presents the change in the Company’s accounts receivable allowance for credit losses (in thousands):

As of March 31, 2025As of December 31, 2024
Allowance for credit losses, beginning balance$465 $405 
Increase in allowance131 1,067 
Write-offs(66)(1,007)
Allowance for credit losses, ending balance$530 $465 
v3.25.1
Equity Incentive Plans and Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-based Compensation
A summary of our stock-based compensation expense is as follows (in thousands):
Three Months Ended March 31,
20252024
Stock-based compensation by type of award:
Stock awards$5,794 $3,532 
Employee stock purchase rights224 307 
$6,018 $3,839 
Stock-based compensation by category of expense:
Cost of net revenue$625 $457 
Sales and marketing894 1,033 
Research and development1,390 869 
General and administrative3,109 1,480 
$6,018 $3,839 
Summary of Activity under Stock Option Plans
There were no options outstanding during the three months ended March 31, 2025.

The intrinsic value of options exercised was $0.2 million during the three months ended March 31, 2024.
Summary of Restricted Stock Units Activity
The following table summarizes our stock award activities and related information:
Number of Shares (thousands)Weighted-Average Grant Date Fair Value Per ShareWeighted-Average Remaining Vesting Term
(years)		Aggregate Fair Value (thousands)
Nonvested as of December 31, 20243,243 $13.65 
Granted468 19.61 
Released(530)12.64 
Canceled(24)14.71 
Nonvested as of March 31, 20253,157 $14.70 1.69$51,589 
v3.25.1
Net Income Per Share (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
Basic and diluted net income per share are calculated as follows (in thousands, except per share amounts):
Three Months Ended March 31,
20252024
Basic and diluted net income per share
Numerator:
Net income$9,543 $9,726 
Denominator:
Weighted-average shares outstanding - basic73,555 74,451 
Effect of dilutive potential common shares from stock options, stock awards and employee stock purchase plan1,493 867 
Weighted-average shares outstanding - diluted75,048 75,318 
Net income per share:
Basic$0.13 $0.13 
Diluted$0.13 $0.13 
Summary of Anti-dilutive Shares
The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive (in thousands):

Three Months Ended March 31,
20252024
Stock options, stock awards and employee stock purchase rights144 65 
2030 Notes1,598 — 
Total1,742 65 
v3.25.1
Geographic Information (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Schedule of Total Revenue Based on Customer's Location The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers (in thousands):
Three Months Ended March 31,
20252024
Americas$33,496 $27,442 
United States30,117 23,144 
Americas-other3,379 4,298 
APJ18,619 25,043 
EMEA14,022 8,190 
Total net revenue$66,137 $60,675 
Long-lived Assets by Geographic Areas
The following table is a summary of our long-lived assets which include property and equipment, net and operating lease right-of-use assets based on the physical location of the assets (in thousands):
As of March 31, 2025As of December 31, 2024
Americas$47,915 $48,468 
Japan284 363 
Other2,285 1,850 
Total$50,484 $50,681 
v3.25.1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Asset and Liability
Deferred revenue consisted of the following (in thousands):
As of March 31, 2025As of December 31, 2024
Deferred revenue:
Products$5,355 $4,405 
Services147,387 143,854 
Total deferred revenue152,742 148,259 
Less: current portion(79,682)(78,335)
Non-current portion$73,060 $69,924 
The following table reflects contract balances with customers (in thousands):
 As of March 31, 2025As of December 31, 2024
Accounts receivable, net$65,379 $76,687 
Deferred revenue, current79,682 78,335 
Deferred revenue, non-current73,060 69,924 
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
We expect to recognize revenue on the remaining performance obligations as follows (in thousands):
As of March 31, 2025
Within 1 year$79,682 
Next 2 to 3 years56,772 
Thereafter16,288 
Total$152,742 
Disaggregation of Revenue Revenue generated from service providers and enterprises was as follows (in thousands):
Three Months Ended March 31,
20252024
Service providers$38,997 $37,661 
Enterprises27,140 23,014 
Total$66,137 $60,675 
v3.25.1
Description of Business and Summary of Significant Accounting Policies - Concentration Risk (Details) - Customer Concentration Risk
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Customer A | Revenue      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent) 15.00% 14.00%  
Customer A | Accounts Receivable      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent) 21.00%   34.00%
Customer B | Revenue      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent)   11.00%  
Customer C | Revenue Benchmark      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent) 17.00% 18.00%  
Customer D | Revenue Benchmark      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent)   14.00%  
Service Providers | Revenue      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent) 59.00% 62.00%  
Enterprises | Revenue      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent) 41.00% 38.00%  
Ten Customers | Revenue      
Entity Wide Revenue Major Customer [Line Items]      
Percentage representation of significant customers (percent) 44.00% 44.00%  
v3.25.1
Leases - Assets and Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Total right-of-use assets $ 10,294 $ 11,539
Accrued liabilities 4,669 4,744
Other non-current liabilities 6,015 7,194
Total operating lease liabilities $ 10,684 $ 11,938
v3.25.1
Leases - Lease Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Remainder of 2025 $ 3,617  
2021 4,913  
2022 2,441  
Total lease payments 10,971  
Less: imputed interest (287)  
Present value of lease liabilities $ 10,684 $ 11,938
v3.25.1
Leases - Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Leases [Abstract]    
Operating lease costs $ 1,086 $ 1,085
Short-term lease costs 185 116
Total lease costs $ 1,271 $ 1,201
Weighted-average remaining term (years) 2 years 2 months 26 days 3 years 1 month 24 days
Weighted-average discount rate 3.18% 3.19%
Operating cash flows from operating leases $ 1,369 $ 1,354
v3.25.1
Marketable Securities and Fair Value Measurements - Estimate of Fair Value of Marketable Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 111,713 $ 100,176
Gross Unrealized Gains 300 265
Gross Unrealized Losses (17) (12)
Fair Value 111,996 100,429
Corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 58,885 52,311
Gross Unrealized Gains 62 102
Gross Unrealized Losses (10) (12)
Fair Value 58,937 52,401
U.S. Treasury and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 52,828 47,865
Gross Unrealized Gains 238 163
Gross Unrealized Losses (7) 0
Fair Value $ 53,059 $ 48,028
v3.25.1
Marketable Securities and Fair Value Measurements - Contractual Maturities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Amortized Cost    
Less than 1 year $ 60,062  
Mature in 1 - 3 years 51,651  
Amortized Cost 111,713 $ 100,176
Fair Value    
Less than 1 year 60,164  
Mature in 1 - 3 years 51,832  
Fair Value $ 111,996 $ 100,429
v3.25.1
Marketable Securities and Fair Value Measurements - Securities in Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less Than 12 Months $ 23,441 $ 12,516
Fair Value, 12 Months or More 0 0
Fair Value, Total 23,441 12,516
Gross Unrealized Losses, Less Than 12 Months (17) (12)
Gross Unrealized Losses,12 Months or More 0 0
Gross Unrealized Losses (17) (12)
Corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less Than 12 Months 16,448 12,516
Fair Value, 12 Months or More 0 0
Fair Value, Total 16,448 12,516
Gross Unrealized Losses, Less Than 12 Months (10) (12)
Gross Unrealized Losses,12 Months or More 0 0
Gross Unrealized Losses (10) $ (12)
U.S. Treasury and agency securities    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less Than 12 Months 6,993  
Fair Value, 12 Months or More 0  
Fair Value, Total 6,993  
Gross Unrealized Losses, Less Than 12 Months (7)  
Gross Unrealized Losses,12 Months or More 0  
Gross Unrealized Losses $ (7)  
v3.25.1
Marketable Securities and Fair Value Measurements - Schedule of Fair Value of Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Financial Assets    
Marketable Securities $ 111,996 $ 100,429
Level 1    
Financial Assets    
Total 282,166 133,154
Level 2    
Financial Assets    
Total 73,676 62,404
Fair Value, Inputs, Level 1, 2 and 3    
Financial Assets    
Total 355,842 195,558
Cash    
Financial Assets    
Cash and Cash Equivalents 118,202 89,195
Cash | Level 1    
Financial Assets    
Cash and Cash Equivalents 118,202 89,195
Cash equivalents    
Financial Assets    
Cash and Cash Equivalents 125,644 5,934
Cash equivalents | Level 1    
Financial Assets    
Cash and Cash Equivalents 125,644 5,934
Corporate securities    
Financial Assets    
Marketable Securities 58,937 52,401
Corporate securities | Level 2    
Financial Assets    
Marketable Securities 58,937 52,401
U.S. Treasury and agency securities    
Financial Assets    
Marketable Securities 53,059 48,028
U.S. Treasury and agency securities | Level 1    
Financial Assets    
Marketable Securities 38,320 38,025
U.S. Treasury and agency securities | Level 2    
Financial Assets    
Marketable Securities $ 14,739 $ 10,003
v3.25.1
Acquisition - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Feb. 12, 2025
Mar. 31, 2025
Dec. 31, 2024
Business Acquisition [Line Items]      
Goodwill   $ 15,070 $ 1,307
ThreatX Protect      
Business Acquisition [Line Items]      
Consideration transferred $ 19,600    
Intangible assets acquired 7,600    
Deferred revenue assumed (2,500)    
Net assets acquired 700    
Goodwill $ 13,800    
Acquisition-related costs   300  
Amortization expense related to intangible assets   $ 200  
v3.25.1
Acquisition - Acquired Intangible Assets and Estimated Useful Lives (Details) - USD ($)
$ in Thousands
 3 Months Ended
Feb. 12, 2025
Mar. 31, 2025
Developed technology    
Business Acquisition [Line Items]    
Useful Life (Years)   4 years 10 months 24 days
Customer relationships    
Business Acquisition [Line Items]    
Useful Life (Years)   4 years 10 months 24 days
Trademark / trade name    
Business Acquisition [Line Items]    
Useful Life (Years)   3 years 10 months 24 days
ThreatX Protect    
Business Acquisition [Line Items]    
Fair Value $ 7,600  
ThreatX Protect | Developed technology    
Business Acquisition [Line Items]    
Fair Value $ 5,700  
Useful Life (Years) 5 years  
ThreatX Protect | Customer relationships    
Business Acquisition [Line Items]    
Fair Value $ 1,500  
Useful Life (Years) 5 years  
ThreatX Protect | Trademark / trade name    
Business Acquisition [Line Items]    
Fair Value $ 400  
Useful Life (Years) 4 years  
v3.25.1
Acquisition - Schedule of Intangible Assets Subject to Amortization (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
USD ($)
Business Acquisition [Line Items]  
Gross $ 7,600
Accumulated Amortization (203)
Finite-Lived Intangible Assets, Net, Total 7,397
Developed technology  
Business Acquisition [Line Items]  
Gross 5,700
Accumulated Amortization (150)
Finite-Lived Intangible Assets, Net, Total $ 5,550
Useful Life (Years) 4 years 10 months 24 days
Customer relationships  
Business Acquisition [Line Items]  
Gross $ 1,500
Accumulated Amortization (40)
Finite-Lived Intangible Assets, Net, Total $ 1,460
Useful Life (Years) 4 years 10 months 24 days
Trademark / trade name  
Business Acquisition [Line Items]  
Gross $ 400
Accumulated Amortization (13)
Finite-Lived Intangible Assets, Net, Total $ 387
Useful Life (Years) 3 years 10 months 24 days
v3.25.1
Acquisition - Schedule of Expected Future Amortization Expense (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Remainder of 2025 $ 1,155
2026 1,540
2027 1,540
2028 1,540
2029 1,452
2030 170
Finite-Lived Intangible Assets, Net, Total $ 7,397
v3.25.1
Condensed Consolidated Financial Statement Details - Accounts Receivable Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Increase in allowance    
Allowance for credit losses, beginning balance $ 465 $ 405
Increase in allowance 131 1,067
Write-offs (66) (1,007)
Allowance for credit losses, ending balance $ 530 $ 465
v3.25.1
Condensed Consolidated Financial Statement Details - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 12,548 $ 12,883
Finished goods 7,991 9,122
Total inventory $ 20,539 $ 22,005
v3.25.1
Condensed Consolidated Financial Statement Details - Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Abstract]    
Prepaid expenses $ 7,989 $ 4,245
Deferred contract acquisition costs 6,502 6,201
Other 1,938 2,592
Total prepaid expenses and other current assets $ 16,429 $ 13,038
v3.25.1
Condensed Consolidated Financial Statement Details - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Property Plant And Equipment [Line Items]      
Property and equipment, gross $ 73,773   $ 68,941
Less: accumulated depreciation (31,606)   (29,799)
Property and equipment, net 42,167   39,142
Depreciation expense 2,200 $ 1,500  
Equipment      
Property Plant And Equipment [Line Items]      
Property and equipment, gross 38,640   36,615
Software      
Property Plant And Equipment [Line Items]      
Property and equipment, gross 6,478   5,705
Furniture and fixtures      
Property Plant And Equipment [Line Items]      
Property and equipment, gross 531   531
Leasehold improvements      
Property Plant And Equipment [Line Items]      
Property and equipment, gross 3,439   3,439
Construction in process      
Property Plant And Equipment [Line Items]      
Property and equipment, gross $ 24,685   $ 22,651
Minimum | Equipment      
Property Plant And Equipment [Line Items]      
Useful life 1 year    
Minimum | Software      
Property Plant And Equipment [Line Items]      
Useful life 1 year    
Minimum | Furniture and fixtures      
Property Plant And Equipment [Line Items]      
Useful life 1 year    
Maximum | Equipment      
Property Plant And Equipment [Line Items]      
Useful life 5 years    
Maximum | Software      
Property Plant And Equipment [Line Items]      
Useful life 6 years    
Maximum | Furniture and fixtures      
Property Plant And Equipment [Line Items]      
Useful life 7 years    
v3.25.1
Condensed Consolidated Financial Statement Details - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Property, Plant and Equipment [Abstract]    
Depreciation expense $ 2.2 $ 1.5
Capitalized Computer Software, Net 1.6  
Capitalized Computer Software, Amortization $ 0.1 $ 0.1
v3.25.1
Condensed Consolidated Financial Statement Details - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Accrued Liabilities, Current [Abstract]    
Accrued compensation and benefits $ 11,198 $ 19,058
Accrued tax liabilities 2,989 2,687
Lease liability 4,669 4,744
Other 7,049 6,207
Total accrued liabilities $ 25,905 $ 32,696
v3.25.1
Condensed Consolidated Financial Statement Details - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue $ 152,742 $ 148,259
Less: current portion (79,682) (78,335)
Non-current portion 73,060 69,924
Products    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 5,355 4,405
Services    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue $ 147,387 $ 143,854
v3.25.1
Long-Term Debt (Details)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended
Mar. 31, 2025
USD ($)
$ / shares
Mar. 31, 2025
USD ($)
$ / shares
Line of Credit Facility [Line Items]    
Proceeds from offering $ 217.7  
Interest expense   $ 0.3
Senior Notes | 2.75% Convertible Senior Notes (The 2030 Notes)    
Line of Credit Facility [Line Items]    
Principal amount $ 225.0 $ 225.0
Interest rate 2.75% 2.75%
Conversion rate 4.26257%  
Conversion price (dollars per share) | $ / shares $ 23.46003 $ 23.46003
Unamortized issuance costs $ 7.3 $ 7.3
Effective interest rate 3.43% 3.43%
v3.25.1
Commitments and Contingencies (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
Rent expense $ 1.3 $ 1.2
Remaining purchase commitments $ 12.1  
v3.25.1
Equity Incentive Plans and Stock-Based Compensation - 2014 Equity Incentive Plan/ESPP (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Oct. 31, 2018
Mar. 31, 2024
Mar. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Intrinsic value of options exercised   $ 0.2  
2014 Stock Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for future grant (in shares)     3,109,003
Amended 2014 Employee Stock Purchase Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for future grant (in shares)     531,170
Amended 2014 Employee Stock Purchase Plan | ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of eligible compensation 10.00%    
Offering period 6 months    
v3.25.1
Equity Incentive Plans and Stock-Based Compensation - Schedule of Stock-based Compensation Awards Granted under Stock Option Plan in Consolidated Statements of Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation $ 6,018 $ 3,839
Cost of net revenue    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation 625 457
Sales and marketing    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation 894 1,033
Research and development    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation 1,390 869
General and administrative    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation 3,109 1,480
Stock awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation 5,794 3,532
Employee stock purchase rights    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation $ 224 $ 307
v3.25.1
Equity Incentive Plans and Stock-Based Compensation - Stock-based Compensation/Stock Repurchase Program (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
Share-Based Payment Arrangement [Abstract]  
Total compensation expense related to unvested awards granted, not yet recognized $ 35.8
Total compensation expense related to unvested awards granted, not yet recognized weighted-average period for recognition (in years) 2 years 4 months 24 days
v3.25.1
Equity Incentive Plans and Stock-Based Compensation - Summary of Activity under Stock Option Plans (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]  
Intrinsic value of options exercised $ 0.2
v3.25.1
Equity Incentive Plans and Stock-Based Compensation - Information About Stock Options (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value $ 0.2
v3.25.1
Equity Incentive Plans and Stock-Based Compensation - Summary of RSU activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Unvested at end of period (in shares) 3,157,000  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested $ 51,589  
Restricted Stock    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Unvested at beginning of period (in shares) 3,243,000  
Granted (in shares) 468,000  
Released (in shares) (530,000)  
Canceled (in shares) (24,000)  
Unvested at end of period (in shares) 2,502,457  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Unvested at beginning of period (in dollars per share) $ 13.65  
Granted (in dollars per share) 19.61  
Released (in dollars per share) 12.64  
Canceled (in dollars per share) 14.71  
Unvested at ending of period (in dollars per share) $ 14.70  
Weighted-Average Remaining Vesting Term (years) 1 year 8 months 8 days  
Fair value of released awards $ 6,700 $ 2,900
Performance Stock Units (PSUs)    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Unvested at end of period (in shares) 654,750  
v3.25.1
Equity Incentive Plans and Stock-Based Compensation - Stock Repurchase Program (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Nov. 07, 2024
Nov. 07, 2023
Nov. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share Repurchase Program, Authorized, Amount   $ 50.0 $ 50.0 $ 50.0
Treasury Stock, Value, Acquired, Cost Method $ 43.6      
Treasury Stock, Shares, Acquired 2,229,140      
v3.25.1
Net Income Per Share - Summary of Outstanding Shares of Common Stock Equivalents (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Earnings Per Share Diluted [Line Items]    
Net income $ 9,543 $ 9,726
Weighted-average shares outstanding - basic (in shares) 73,555 74,451
Weighted Average Number Diluted Shares Outstanding Adjustment 1,493 867
Weighted-average shares outstanding - diluted (in shares) 75,048 75,318
Basic $ 0.13 $ 0.13
Diluted $ 0.13 $ 0.13
Anti-dilutive securities excluded from computation of diluted net income per share 1,742 65
Stock options, stock awards and employee stock purchase rights    
Earnings Per Share Diluted [Line Items]    
Anti-dilutive securities excluded from computation of diluted net income per share 144 65
Convertible Debt    
Earnings Per Share Diluted [Line Items]    
Anti-dilutive securities excluded from computation of diluted net income per share 1,598 0
v3.25.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]    
Income tax expense (benefit) $ 935 $ 1,494
Unrecognized tax benefits $ 8,200  
v3.25.1
Geographic Information - Schedule of Total Revenue Based on Customer's Location (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Information [Line Items]    
Total net revenue $ 66,137 $ 60,675
Americas    
Segment Reporting Information [Line Items]    
Total net revenue 33,496 27,442
Americas    
Segment Reporting Information [Line Items]    
Total net revenue 30,117 23,144
Americas excluding United States    
Segment Reporting Information [Line Items]    
Total net revenue 3,379 4,298
APJ    
Segment Reporting Information [Line Items]    
Total net revenue 18,619 25,043
EMEA    
Segment Reporting Information [Line Items]    
Total net revenue $ 14,022 $ 8,190
v3.25.1
Geographic Information - Long Lived Assets By Geographic Area (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 50,484 $ 50,681
Americas    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 47,915 48,468
APAC    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 284 363
EMEA    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 2,285 $ 1,850
v3.25.1
Revenue - Additional Information (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Accumulated deficit $ 30,801,000   $ 40,344,000
Deferred revenue 152,742,000   148,259,000
Revenue recognized 26,100,000 $ 27,200,000  
Asset impairment charges for contract assets 0    
Deferred contract acquisition costs 6,502,000   6,201,000
Deferred Sales Commissions      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Deferred contract acquisition costs 5,000,000.0   4,400,000
Impairment loss of contract acquisition costs 0    
Deferred contract acquisition costs $ 6,500,000   $ 6,200,000
v3.25.1
Revenue - Contract Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]      
Accounts receivable, net $ 65,379   $ 76,687
Deferred revenue 79,682   78,335
Deferred revenue, non-current 73,060   69,924
Deferred contract acquisition costs 6,502   $ 6,201
Disaggregation of Revenue [Line Items]      
Total net revenue 66,137 $ 60,675  
Service Providers      
Disaggregation of Revenue [Line Items]      
Total net revenue 38,997 37,661  
Enterprises      
Disaggregation of Revenue [Line Items]      
Total net revenue $ 27,140 $ 23,014  
v3.25.1
Revenue - Remaining Performance Obligations (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 152,742
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation 152,742
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 79,682
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation period 1 year
Remaining performance obligation $ 79,682
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 56,772
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation period 2 years
Remaining performance obligation $ 56,772
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 16,288
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation period 4 years
Remaining performance obligation $ 16,288
v3.25.1
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
May 01, 2025
Mar. 31, 2025
Nov. 07, 2024
Nov. 07, 2023
Nov. 01, 2022
Subsequent Event [Line Items]          
Share Repurchase Program, Authorized, Amount     $ 50 $ 50 $ 50
O 2025 Q1 Dividends          
Subsequent Event [Line Items]          
Common Stock, Dividends, Per Share, Declared   $ 0.06      
Subsequent event          
Subsequent Event [Line Items]          
Share Repurchase Program, Authorized, Amount $ 75        
Subsequent event | O 2024 Q3 Dividends          
Subsequent Event [Line Items]          
Dividends Payable, Date Declared May 01, 2025        
Dividends Payable, Date to be Paid Jun. 02, 2025        
Dividends Payable, Date of Record May 15, 2025        
v3.25.1
Derivative Instruments and Hedging Activities (Details) - Foreign Exchange Forward - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Not Designated as Hedging Instrument      
Derivative [Line Items]      
Derivative, Notional Amount $ 1,900   $ 7,600
Derivative, Term of Contract 30 days    
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net $ 500 $ 2,700  
Unrealized Gain (Loss) on Derivatives (24) $ (200)  
Designated as Hedging Instrument      
Derivative [Line Items]      
Derivative, Notional Amount $ 14,500   $ 0
Derivative, Term of Contract 30 days