A10 Networks reported Q1 2021 revenue of $54.8 million, up 2.0% year-over-year. GAAP gross margin was 77.2% and non-GAAP gross margin was 78.9%. GAAP net income was $2.7 million, or $0.03 per share, compared with a net loss of $(297,000), or $(0.00) per share in the first quarter of 2020. Non-GAAP net income was $9.4 million, or $0.12 per share compared with non-GAAP net income of $4.0 million, or $0.05 per share in the first quarter of 2020.
Deferred revenue was $113.2 million, up 11.8% year-over-year. Security solutions grew to 60% of revenue and increased 15.5% on TTM basis.
"We made significant progress in the first quarter against our stated goal of growing recurring revenue, and continued increasing security solutions revenue as a percent of total revenue,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “Our best-in-class security solutions are increasingly well-received by the market, and demand for network security solutions is growing. Software now represents more than 10% of our total revenue in the first quarter, compared to 6% for the full-year of 2020 and just 4% in 2019. Our stated goal was to grow recurring revenue faster than our consolidated revenue, giving us greater predictability into our quarterly revenues and enhancing the financial leverage we have built into our business model. As expected, we saw a decline in our Japan revenue related to the timing of the Olympics, but our strong book-to-bill performance in the quarter of 1.2:1 supports our full-year growth outlook for Japan. We were able to offset this temporary weakness with strong, improving performance in the Americas.”
