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A10 Networks (STU:8A0) Gross Margin % : 81.15% (As of Dec. 2023)


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What is A10 Networks Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. A10 Networks's Gross Profit for the three months ended in Dec. 2023 was €52.4 Mil. A10 Networks's Revenue for the three months ended in Dec. 2023 was €64.6 Mil. Therefore, A10 Networks's Gross Margin % for the quarter that ended in Dec. 2023 was 81.15%.


The historical rank and industry rank for A10 Networks's Gross Margin % or its related term are showing as below:

STU:8A0' s Gross Margin % Range Over the Past 10 Years
Min: 75.34   Med: 77.5   Max: 80.95
Current: 80.95


During the past 13 years, the highest Gross Margin % of A10 Networks was 80.95%. The lowest was 75.34%. And the median was 77.50%.

STU:8A0's Gross Margin % is ranked better than
87.84% of 2624 companies
in the Software industry
Industry Median: 41.67 vs STU:8A0: 80.95

A10 Networks had a gross margin of 81.15% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for A10 Networks was 0.90% per year.


A10 Networks Gross Margin % Historical Data

The historical data trend for A10 Networks's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

A10 Networks Gross Margin % Chart

A10 Networks Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.01 77.76 78.60 79.73 80.94

A10 Networks Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 79.72 82.29 79.55 80.95 81.15

Competitive Comparison of A10 Networks's Gross Margin %

For the Software - Infrastructure subindustry, A10 Networks's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


A10 Networks's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, A10 Networks's Gross Margin % distribution charts can be found below:

* The bar in red indicates where A10 Networks's Gross Margin % falls into.



A10 Networks Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

A10 Networks's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=186.8 / 230.809
=(Revenue - Cost of Goods Sold) / Revenue
=(230.809 - 43.981) / 230.809
=80.94 %

A10 Networks's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=52.4 / 64.572
=(Revenue - Cost of Goods Sold) / Revenue
=(64.572 - 12.172) / 64.572
=81.15 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


A10 Networks  (STU:8A0) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

A10 Networks had a gross margin of 81.15% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


A10 Networks Gross Margin % Related Terms

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A10 Networks (STU:8A0) Business Description

Traded in Other Exchanges
Address
2300 Orchard Parkway, San Jose, CA, USA, 95131
A10 Networks Inc is a provider of secure application solutions and services that enables a new generation of intelligently connected companies, the ability to continuously improve cyber protection and digital responsiveness across dynamic Information Technology and network infrastructures. Its portfolio consists of six secure application solutions; Thunder Application Delivery Controller, Lightning Application Delivery Controller, Thunder Carrier Grade Networking, Thunder Threat Protection System, Thunder SSL Insight and Thunder Convergent Firewall, and two intelligent management and automation tools; Harmony Controller and aGalaxy TPS. Key revenue is generated from the Americas, with the rest coming from Europe, the Middle East and Africa, plus the Asia Pacific region.

A10 Networks (STU:8A0) Headlines

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