ATEN - Why A10 Networks Stock Crashed This Week
2023-10-06 14:47:00 ET
Shares of A10 Networks (NYSE: ATEN) were down 22% as of 12:39 p.m. ET on Friday, according to data provided by S&P Global Market Intelligence .
The cloud company released preliminary results for the third quarter that didn't sit well with investors. It expects revenue to be down between 19% to 22% year over year as industry headwinds continue to impact the business.
A10 has averaged 9% annual revenue growth over the last 10 years but started to report falling demand in the first quarter when revenue dropped 8% year over year, followed by a decline of 3% in Q2. On the Q2 earnings call, management noted that many businesses were delaying projects. The conservative spending budgets with North American customers are catching up with the company, as management cited similar headwinds impacting its revenue for the third quarter.
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Why A10 Networks Stock Crashed This Week