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ANET · Arista Networks, Inc.

39 filings

10-Q

ANET 10-Q Quarterly Reports

Arista Networks, Inc. - 39 quarterly reports

Filing record · 2016–202610-K1110-Q348-K80

2026-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2026
Arista Networks, Inc. has demonstrated robust financial performance in the first six months of 2026, with total revenue increasing by 36.5% year-over-year to $5.74 billion. This growth was primarily driven by a 37.7% surge in product revenue, indicating strong demand for their switching and routing platforms. The company has also seen consistent growth in service revenue, up 29.4%, reflecting an expanding customer base and ongoing support contracts. Profitability remains strong, with net income reaching $2.24 billion for the first half of the year, a significant increase from $1.70 billion in the prior year period. However, investors should note a slight decrease in gross margin to 62.4% from 64.5%, attributed to a higher proportion of sales to large customers who receive greater discounts. Operating expenses have increased but at a slower pace than revenue, demonstrating effective cost management. The company maintains a healthy liquidity position with $13.3 billion in cash, cash equivalents, and marketable securities as of June 30, 2026.
Aug 5, 2026
2026-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2026
Arista Networks, Inc. (ANET) reported strong revenue growth in the first quarter of 2026, with total revenue increasing by 35.1% year-over-year to $2.71 billion. This growth was primarily driven by a 36.6% surge in product revenue, indicating robust demand for its switching and routing platforms, and a 27.3% increase in service revenue reflecting the expanding customer base. The company also saw a significant improvement in operating cash flow, which more than doubled to $1.7 billion, largely due to a substantial increase in deferred revenue. While the company demonstrated strong top-line and cash flow performance, the gross margin saw a slight decrease from 63.7% to 61.9%, attributed to a higher proportion of sales to large customers who typically receive greater discounts. Operating expenses also increased, with R&D and Sales & Marketing expenses growing by 29.0% and 21.4% respectively, reflecting continued investment in product development and global expansion. Despite these investments and margin pressure, net income grew by 25.7% to $1.02 billion, and diluted EPS increased to $0.80. The company maintains a strong liquidity position with approximately $12.4 billion in cash, cash equivalents, and marketable securities.
May 6, 2026
2025-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2025
Arista Networks, Inc. reported robust financial performance for the nine months ended September 30, 2025, demonstrating strong revenue growth and increased profitability. Total revenue reached $6.5 billion, a significant increase of 28.5% year-over-year, driven by a 28.2% rise in product revenue and a 30.1% increase in service revenue. Net income for the period was $2.6 billion, up 24.6% from the prior year, reflecting effective cost management and strong top-line performance. The company's balance sheet remains healthy, with total assets growing to $18 billion, supported by substantial cash and marketable securities totaling $10.1 billion. This liquidity provides Arista with significant financial flexibility for ongoing operations, strategic investments, and capital allocation. The acquisition of VeloCloud in June 2025 for $300 million is expected to enhance Arista's cloud WAN portfolio and contribute to future growth. Despite broader macroeconomic uncertainties and ongoing competitive pressures within the networking industry, Arista Networks continues to execute effectively. The company's strategic focus on AI-driven networking, coupled with its strong product portfolio and expanding customer base, positions it well for continued success in high-growth markets. Investors can look to Arista's consistent revenue growth, expanding gross margins, and solid cash generation as indicators of its strong operational execution and market leadership.
Nov 5, 2025
2025-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2025
Arista Networks, Inc. (ANET) reported robust financial results for the quarter and six months ended June 30, 2025. Total revenue surged by 30.4% year-over-year to $2.2 billion for the quarter and 29.1% to $4.2 billion for the six months, driven by strong performance in both product and service segments. The company demonstrated healthy profitability, with gross margin improving slightly to 65.2% for the quarter and 452.4 million in operating expenses for the quarter, indicating effective cost management relative to revenue growth. Net income also saw significant increases, reaching $888.8 million for the quarter and $1.7 billion for the six months. The company's balance sheet remains strong, with total assets growing to $16.5 billion and a substantial cash and marketable securities balance of approximately $8.8 billion, providing ample liquidity for ongoing operations and strategic initiatives. The company successfully completed the acquisition of the VeloCloud business for $300 million, which is expected to enhance its secure, AI-optimized cloud WAN portfolio. Arista also continued its capital return program, repurchasing $195.9 million of common stock during the quarter under its expanded $1.5 billion repurchase program. Looking ahead, Arista is well-positioned to capitalize on the growing demand for cloud networking solutions, particularly driven by the expansion of generative AI computing, and continues to invest in R&D and sales expansion to maintain its leadership in the competitive networking market.
Aug 6, 2025
2025-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2025
Arista Networks, Inc. (ANET) demonstrated robust financial performance for the first quarter of 2025, with total revenue reaching $2,004.8 million, a significant increase of 27.6% year-over-year. This growth was driven by strong performance in both product revenue (up 27.4%) and service revenue (up 28.7%), indicating sustained demand for its networking solutions across its customer base, including critical AI and data center environments. The company maintained a healthy gross margin of 63.7%, consistent with the prior year, despite inflationary pressures. Operating expenses saw an increase, primarily in Research and Development (up 27.8%) and Sales and Marketing (up 10.9%), reflecting continued investment in innovation and market expansion. Net income rose to $813.8 million, a 27.6% increase compared to the same period last year, with diluted earnings per share at $0.64. Arista also highlighted its commitment to shareholder returns through an aggressive stock repurchase program, repurchasing $787.1 million in the quarter. The company ended the quarter with a strong liquidity position, boasting $8.1 billion in cash, cash equivalents, and marketable securities, providing ample resources to fund ongoing operations, strategic investments, and future growth initiatives.
May 7, 2025
2024-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2024
Arista Networks, Inc. (ANET) reported strong financial results for the third quarter of 2024, showcasing robust revenue growth driven by both its product and service segments. The company demonstrated improved profitability with a significant increase in gross margin, attributed in part to reduced excess and obsolete inventory charges. Operating expenses also saw a controlled increase, primarily in R&D, reflecting continued investment in innovation. The company maintains a strong liquidity position with substantial cash and marketable securities. Management expressed confidence in meeting working capital requirements and growth strategies for at least the next 12 months. Arista also announced a four-for-one forward stock split, effective December 3, 2024, aiming to enhance stock accessibility for investors.
Nov 8, 2024
2024-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2024
Arista Networks, Inc. (ANET) reported strong performance for the second quarter and the first half of 2024, demonstrating robust revenue growth and improved profitability. Total revenue increased by 15.9% year-over-year for the quarter and 16.1% for the first half, driven by strong demand for its switching and routing platforms, alongside significant growth in service revenue. The company also saw a substantial improvement in gross margins, which rose to 64.9% in the second quarter from 60.6% in the prior year, attributed to lower excess and obsolete inventory charges and supplier liability costs. Net income also saw a healthy increase, reflecting operating leverage and effective cost management. Arista continues to invest in R&D and sales and marketing, indicating a focus on future growth and innovation, particularly in areas like AI-driven networking. The company maintains a strong liquidity position with a significant balance of cash and marketable securities.
Jul 31, 2024
2024-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2024
Arista Networks, Inc. reported a strong first quarter for 2024, demonstrating robust revenue growth and significant improvements in profitability. Total revenue reached $1.57 billion, a 16.3% increase year-over-year, driven by a healthy 13.4% rise in product revenue and an impressive 35.3% surge in service revenue. This top-line growth was complemented by a substantial expansion in gross margin, which climbed from 59.5% to 63.7%, attributed to decreased logistics costs, reduced excess/obsolete inventory charges, and improved fixed cost leverage. Net income saw a substantial increase of approximately 46%, reaching $637.7 million, with diluted EPS growing to $1.99 from $1.38 in the prior year. The company's balance sheet remains strong, with total assets growing to $10.55 billion. Notably, cash and cash equivalents increased to $2.09 billion, and marketable securities rose to $3.36 billion, indicating a solid liquidity position. Operating cash flow also showed considerable strength, increasing to $513.8 million from $374.5 million in Q1 2023. Management highlighted ongoing investments in R&D and sales & marketing, alongside efforts to navigate supply chain improvements and evolving customer demand, particularly concerning AI infrastructure. Arista Networks appears well-positioned to capitalize on the growing cloud networking market.
May 8, 2024
2023-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2023
Arista Networks, Inc. (ANET) reported strong financial results for the third quarter and the first nine months of 2023, demonstrating robust revenue growth and improved profitability. Total revenue for the three months ended September 30, 2023, increased by 28.3% year-over-year to $1.51 billion, driven by a significant surge in product revenue. Net income for the quarter also saw a substantial rise of 54.3% to $545.3 million. The company's operational efficiency is evident in its gross margin expansion for the quarter. Furthermore, Arista Networks maintained a strong liquidity position with approximately $4.5 billion in cash, cash equivalents, and marketable securities as of September 30, 2023. Despite ongoing macroeconomic uncertainties and supply chain challenges mentioned in the filing, the company's performance indicates strong demand for its cloud networking solutions and effective management of its operations.
Oct 31, 2023
2023-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2023
Arista Networks, Inc. reported strong financial performance for the second quarter and first half of 2023, driven by robust demand in its core cloud networking solutions. Total revenue saw significant year-over-year growth, with product revenue demonstrating particularly strong momentum. The company's financial position remains solid, with substantial cash and marketable securities. Despite increased investments in R&D and Sales & Marketing to fuel future growth and product development, Arista maintained healthy operating income and net income. While gross margins experienced a slight decrease due to a higher mix of sales to large customers and increased provisions for inventory, the overall financial health and growth trajectory appear positive, indicating continued market strength and effective operational management.
Aug 1, 2023
2023-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2023
Arista Networks, Inc. (ANET) reported a strong first quarter for 2023, demonstrating robust revenue growth and profitability. Total revenue increased significantly by 54.1% year-over-year to $1.35 billion, driven by a substantial 61.7% surge in product revenue, indicating healthy demand for their cloud networking solutions, particularly from large cloud customers. This top-line growth translated into impressive bottom-line performance, with net income rising to $436.5 million, up from $272.3 million in the prior year period. The company is navigating macroeconomic uncertainties and supply chain challenges effectively. While gross margin saw a slight decrease to 59.5% from 63.1% year-over-year, this was attributed to factors such as increased discounts for large customers and provisions for excess/obsolete inventory, partially offset by fixed overhead leverage. Despite these pressures, Arista's operational efficiency and strong demand underpin its positive financial outlook.
May 2, 2023
2022-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2022
Arista Networks, Inc. (ANET) reported strong revenue growth in the third quarter of 2022, with total revenue reaching $1.177 billion, a 57.2% increase year-over-year. This growth was primarily driven by product revenue, which surged by 67.0% to $1.009 billion, indicating robust demand for their core switching and routing platforms from a diverse customer base, including significant contributions from large cloud customers. Despite the strong top-line performance, gross margin saw a slight decrease to 60.3% from 63.9% in the prior year's quarter, attributed to a larger proportion of sales to high-discount large customers and increased material and logistics costs aimed at mitigating supply chain constraints. Operating expenses increased across all categories, reflecting continued investment in R&D and sales and marketing, primarily due to headcount growth. Net income rose significantly by 58.1% to $354 million, or $1.13 per diluted share, demonstrating the company's ability to translate revenue growth into profitability. Arista maintained a strong liquidity position with over $3 billion in cash, cash equivalents, and marketable securities. However, investors should note the ongoing challenges related to supply chain constraints and inflationary pressures impacting costs and potentially gross margins, as well as the company's continued reliance on a few large customers for a significant portion of its revenue.
Nov 1, 2022
2022-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2022
Arista Networks, Inc. (ANET) reported strong financial results for the second quarter and the first half of 2022, showcasing significant year-over-year growth in revenue and net income. Total revenue for the second quarter of 2022 reached $1.05 billion, a substantial increase of 48.7% compared to the same period in 2021. This growth was primarily driven by a 56.4% surge in product revenue, indicating robust demand for their cloud networking solutions. Net income for the quarter was $299.1 million, a significant increase from $196.9 million in the prior year's second quarter. Despite ongoing macroeconomic uncertainties, including supply chain constraints and inflation, Arista Networks demonstrated resilience and effective management. The company's gross margin saw a slight decrease year-over-year, influenced by pricing pressures and increased material/logistics costs, yet remained strong at 61.2% for the quarter. Operating expenses also increased, reflecting investments in R&D and sales & marketing to support growth. The company ended the period with a solid cash position and continues to focus on innovation and market expansion.
Aug 2, 2022
2022-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2022
Arista Networks, Inc. reported strong financial results for the first quarter of 2022, showcasing significant year-over-year growth in revenue and net income. Revenue surged by 31.4% to $877.1 million, driven by a robust 34.4% increase in product revenue, indicating healthy demand for their cloud networking solutions. Profitability also saw a substantial improvement, with net income rising by 50.9% to $272.3 million. Despite increased operating expenses, particularly in R&D and G&A, the company managed to expand its operating income by 34.8%. Management highlighted continued supply chain challenges as a factor impacting the ability to meet demand, but also noted improvements in product margins due to a reduced proportion of sales to large customers who typically receive larger discounts. The company maintains a strong liquidity position with a significant balance of cash, cash equivalents, and marketable securities, providing confidence in its ability to fund operations and growth initiatives.
May 3, 2022
2021-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2021
Arista Networks, Inc. reported strong revenue growth of 23.7% year-over-year for the third quarter of 2021, reaching $748.7 million. This growth was driven by a significant increase in product revenue, up 25.8%, and a steady rise in service revenue. The company demonstrated robust profitability, with gross margin holding steady at 63.9% and net income increasing by 33.2% to $224.3 million. Despite ongoing supply chain challenges related to the COVID-19 pandemic, Arista managed its inventory effectively, showing an increase in inventory levels to $575.7 million from $479.7 million in the prior year-end, likely to mitigate further disruptions. The company's financial position remains strong, with total assets growing to $5.4 billion and a healthy cash and marketable securities balance of $3.4 billion. Arista continues to invest in research and development, with R&D expenses increasing by 19.6% to $153.1 million in the quarter, underscoring its commitment to innovation in cloud networking solutions. Sales and marketing expenses also saw a notable increase of 30.7%, reflecting the company's efforts to expand its market reach. The company has a significant backlog, with remaining performance obligations totaling $1.13 billion, providing good visibility for future revenue. Arista's proactive management of supply chain issues and continued investment in growth areas position it well for continued performance, though supply chain constraints remain a key factor to monitor.
Nov 2, 2021
2021-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2021
Arista Networks, Inc. (ANET) reported strong financial results for the second quarter and first half of 2021, demonstrating robust revenue growth and improved profitability. Total revenue for the second quarter of 2021 reached $707.3 million, a significant increase of 30.8% compared to the same period in the prior year. This growth was primarily driven by a 34.4% surge in product revenue, indicating strong demand for their cloud networking solutions. The company also saw healthy growth in service revenue, up 18.2%. For the first six months of 2021, Arista Networks generated $1.37 billion in revenue, representing a 29.3% increase year-over-year. Gross margin remained strong, hovering around 64% for both the quarter and the year-to-date period, reflecting effective cost management and pricing strategies. Operating expenses increased to support growth initiatives, particularly in research and development and sales and marketing, yet income from operations grew substantially by 31.4% year-over-year to $219.4 million for the quarter. The company ended the period with a solid balance sheet, including over $3.3 billion in cash, cash equivalents, and marketable securities, positioning it well for continued investment and future growth.
Aug 3, 2021
2021-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2021
Arista Networks, Inc. reported strong revenue growth in the first quarter of 2021, with total revenue reaching $667.6 million, a significant increase of 27.6% year-over-year. This growth was primarily driven by a 31.2% surge in product revenue, indicating robust demand for their switching and routing platforms. Service revenue also saw a healthy increase of 14.5%. The company's profitability improved, with net income rising by 30.3% to $180.4 million, translating to diluted earnings per share of $2.27, up from $1.73 in the prior year's quarter. Despite supply chain challenges exacerbated by the COVID-19 pandemic, Arista demonstrated resilience by effectively managing its operations and delivering strong financial results. The company's balance sheet remains strong, with over $3 billion in cash, cash equivalents, and marketable securities, providing ample liquidity to fund ongoing operations and strategic initiatives. Management expressed confidence in meeting future working capital requirements and growth strategies.
May 6, 2021
2020-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2020
Arista Networks reported third-quarter 2020 results showing a decline in revenue, primarily driven by decreased sales to large customers and the ongoing impact of the COVID-19 pandemic on supply chains. While product revenue saw a year-over-year decrease of 13.5%, service revenue showed robust growth of 26.0%, indicating a resilient service and support business. The company's gross margin remained stable, although impacted by COVID-19 related supply chain costs and fixed overhead on lower revenue. Operating expenses saw a slight increase, largely due to higher R&D spending for new product introductions and personnel costs. Despite the revenue headwinds, Arista maintained a strong balance sheet with substantial cash and marketable securities. The company also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. Management anticipates a year-over-year revenue decline for the full fiscal year 2020, acknowledging the persistent uncertainties from the pandemic and its impact on customer demand and supply availability. However, strategic acquisitions like Big Switch Networks and Awake Security signal an ongoing focus on expanding Arista's cloud networking solutions and network detection and response capabilities.
Nov 3, 2020
2020-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2020
Arista Networks, Inc. reported total revenue of $540.6 million for the second quarter of 2020, a decrease of 11.1% compared to the same period in 2019, largely due to a 17.9% decline in product revenue. This was partially offset by a 25.2% increase in service revenue. The company cited COVID-19 related supply chain constraints and extended lead times as contributing factors to the revenue decrease, along with a planned decline in revenue from large cloud titan customers. Despite the revenue dip, gross margin remained relatively stable at 63.7%. Operating expenses decreased by 3.4% year-over-year, driven by reductions in R&D and G&A, although S&M expenses saw a slight increase. Net income for the quarter was $144.8 million, down from $189.3 million in Q2 2019, resulting in diluted EPS of $1.83 compared to $2.33 in the prior year. The company continued to manage its cash effectively, ending the quarter with $800.2 million in cash and cash equivalents, and $1.98 billion in marketable securities. Arista also highlighted the acquisition of Big Switch Networks in February 2020, aimed at expanding data center networking solutions, and the ongoing stock repurchase program. Management anticipates an expected year-over-year revenue decline for the full fiscal year 2020, citing continued COVID-19 impacts on demand and supply chains. Despite these challenges, the company remains focused on investing in R&D and sales activities to maintain its technological leadership.
Aug 5, 2020
2020-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2020
Arista Networks, Inc. (ANET) reported its first-quarter 2020 financial results, showing a year-over-year revenue decline of 12.2% to $523.0 million. This decrease was primarily attributed to a significant drop in product revenue, which fell 18.7%, partly due to a large deferred revenue recognition in the prior year's comparable period and decreased demand from key customers. Despite the revenue challenges, service revenue saw a healthy increase of 24.6%. The company's gross margin improved slightly to 64.7% from 63.9% in the prior year, benefiting from reduced product transition and inventory-related charges. Net income for the quarter was $138.4 million, a 31.1% decrease compared to $201.0 million in Q1 2019, leading to diluted EPS of $1.73, down from $2.47. The company highlighted the impact of the COVID-19 pandemic on its operations, supply chain, and anticipated future demand, noting potential revenue declines in the coming quarters. Arista also completed the acquisition of Big Switch Networks for $73.3 million in cash to enhance its data center networking solutions. The company maintained a strong balance sheet with approximately $2.6 billion in cash, cash equivalents, and marketable securities as of March 31, 2020.
May 6, 2020
2019-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2019
Arista Networks, Inc. (ANET) reported strong financial results for the nine months ended September 30, 2019. Total revenue increased by 19.4% year-over-year to $1.86 billion, driven by a 17.6% rise in product revenue and a 30.6% surge in service revenue. Net income saw a significant increase of 280% to $599.2 million, largely due to a substantial legal settlement expense in the prior year that did not recur. The company's balance sheet remains robust, with total assets growing to $3.62 billion and a strong cash position of over $1 billion in cash and cash equivalents. Operating cash flow was healthy at $635.9 million for the nine-month period. Management noted some volatility in demand from large end customers, contributing to slower revenue growth in certain periods, and expects this trend could continue in the near term. However, the company continues to invest in research and development and sales and marketing to drive future growth, particularly in campus switching and WiFi networking markets. The company also authorized a $1 billion stock repurchase program, demonstrating a commitment to returning value to shareholders.
Nov 1, 2019
2019-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2019
Arista Networks, Inc. (ANET) reported a strong second quarter for 2019, demonstrating robust revenue growth and a significant improvement in profitability compared to the prior year's challenging period which included a substantial legal settlement. Total revenue increased by 17.0% year-over-year to $608.3 million, driven by a 15.4% rise in product revenue and a 26.7% increase in service revenue. Net income more than doubled to $189.3 million, with diluted earnings per share (EPS) at $2.33. The company's financial position remains solid, with cash and cash equivalents increasing substantially to $944.4 million, reflecting healthy operating cash flow generation. Operationally, Arista continues to invest in research and development, with R&D expenses increasing by 9.8% to support its cloud networking platform and new product initiatives. Despite some noted slowdown in demand from certain large end customers during Q2 2019, the overall growth trajectory is positive, supported by continued expansion and upgrades from existing cloud network customers and increasing market acceptance of newer switch products. The company also announced a new $1.0 billion stock repurchase program, indicating confidence in its financial health and commitment to returning value to shareholders.
Aug 2, 2019
2019-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2019
Arista Networks, Inc. (ANET) reported strong revenue growth of 26.0% for the first quarter of 2019, reaching $595.4 million, driven by robust demand for its cloud networking solutions, particularly from existing customers expanding their networks. Product revenue saw a significant 24.0% increase, while service revenue jumped 38.7%. The company's gross margin remained strong at 63.9%, slightly down from the prior year's 64.1% due to product transition costs, but offset by improved service margins and a favorable customer mix. Operating expenses increased by 13.4%, primarily in R&D and Sales & Marketing, reflecting continued investment in product development and market expansion. Net income surged by 39.1% to $201.0 million. The company's liquidity position remains strong with $2.2 billion in cash, cash equivalents, and marketable securities. Key financial highlights include a substantial increase in cash from operations, partly due to effective accounts receivable management. The adoption of new lease accounting standards (ASC 842) led to the recognition of significant operating lease right-of-use assets and liabilities on the balance sheet, impacting property and equipment figures but not cash flow. Investors should note the ongoing litigation with OptumSoft, though Phase I favored Arista. Management expects continued revenue growth, albeit at a potentially slower rate due to scaling and some large customer demand slowdown, emphasizing ongoing investment in innovation and market expansion.
May 6, 2019
2018-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2018
Arista Networks reported strong revenue growth in the third quarter of 2018, with total revenue increasing by 28.7% year-over-year to $563.3 million. This growth was driven by a 27.6% increase in product revenue and a significant 35.9% rise in service revenue, indicating expanding customer adoption and increased post-contract support. The company also reported a substantial increase in operating expenses, largely due to significant investments in research and development and the impact of two recent acquisitions (Mojo Networks and Metamako). Despite increased R&D and sales and marketing expenses, general and administrative expenses decreased due to reduced litigation activity following the settlement with Cisco. Net income for the quarter was $168.5 million, a 25.9% increase over the prior year, demonstrating robust profitability despite increased operational spending.
Nov 5, 2018
2018-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2018
Arista Networks, Inc. (ANET) reported a net loss of $155.3 million for the three months ended June 30, 2018, a significant shift from the $102.7 million net income in the prior year's quarter. This downturn was heavily influenced by a $405 million legal settlement charge related to ongoing litigation with Cisco Systems. Excluding this settlement, the company demonstrated strong revenue growth, with total revenue increasing by 28.3% year-over-year to $519.8 million, driven by a 25.7% increase in product revenue and a substantial 46.3% rise in service revenue. Despite the net loss, the company's operational performance, excluding the settlement, showed continued top-line expansion, indicating underlying business strength. Investors should monitor the ongoing impact of the Cisco litigation settlement and any potential design modifications required for compliance.
Aug 8, 2018
2018-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2018
Arista Networks, Inc. (ANET) reported strong performance in its Q1 2018 earnings, with total revenue growing 40.8% year-over-year to $472.5 million. Product revenue saw a significant increase of 39.9%, driven by existing customer expansion and the market acceptance of newer switch products. Service revenue also grew robustly at 47.1%. The company demonstrated healthy profitability, with net income soaring 74.2% to $144.5 million. Despite increased operating expenses, particularly in R&D and Sales & Marketing to support growth, Arista maintained strong operational income growth. The company's balance sheet remains solid, with substantial cash and marketable securities. Arista continues to invest in its cloud networking platform and R&D to enhance its software and hardware offerings. The company is navigating ongoing legal proceedings with Cisco, which have involved product redesigns to comply with USITC orders. While these legal matters present ongoing risks, Arista has made progress in customer certification of redesigned products. The company anticipates continued revenue growth, though at a moderating rate as the business scales. Overall, the report indicates a company experiencing substantial top-line growth and improving profitability, while strategically managing investments and potential legal headwinds.
May 4, 2018
2017-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2017
Arista Networks, Inc. (ANET) reported robust financial performance for the third quarter and first nine months of fiscal year 2017, demonstrating significant year-over-year revenue growth driven by increased product shipments and expanding service offerings. The company maintained a consistent gross margin while strategically increasing investments in research and development and sales and marketing to fuel future growth. Financially, Arista saw a substantial increase in cash and cash equivalents, bolstered by strong operating cash flow. The company's balance sheet reflects healthy liquidity. Despite ongoing legal proceedings, particularly with Cisco Systems, Arista continues to execute its business strategy effectively, focusing on product innovation and market expansion. Investors should note the company's ongoing commitment to R&D and sales and marketing, which are key drivers for its projected continued growth.
Nov 3, 2017
2017-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2017
Arista Networks, Inc. (ANET) reported strong financial performance for the second quarter and first half of 2017, demonstrating robust revenue growth and increased profitability. Total revenue for the three months ended June 30, 2017, reached $405.2 million, a significant 50.8% increase compared to the same period in the prior year. This growth was driven by a substantial 50.2% rise in product revenue and a 54.9% increase in service revenue, indicating broad demand for Arista's cloud networking solutions. The company maintained healthy gross margins, around 64%, despite competitive pressures and a higher mix of sales to large customers. Net income saw a dramatic increase, with diluted EPS reaching $1.30 for the quarter, up from $0.53 in the prior year. This strong profitability was supported by effective operational expense management, with total operating expenses growing at a slower pace than revenue. The company's balance sheet remains strong, with a significant increase in cash and cash equivalents to over $823 million, reflecting healthy cash flow generation from operations. Investors should note the ongoing legal proceedings, particularly with Cisco Systems, which, while actively being managed and having seen some favorable outcomes, continue to pose potential risks and require ongoing attention.
Aug 4, 2017
2017-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2017
Arista Networks, Inc. (ANET) reported strong revenue growth of 38.5% year-over-year for the first quarter of 2017, reaching $335.5 million. This growth was primarily driven by a 37.1% increase in product revenue and a significant 48.4% rise in service revenue, indicating expanding adoption of their cloud networking solutions. The company maintained healthy gross margins at 63.9%, demonstrating operational efficiency despite increased investment in research and development and sales and marketing. Net income surged by an impressive 135% to $83.0 million, or $1.07 per diluted share, reflecting effective cost management and operational leverage. The company ended the quarter with a robust cash position of $746.6 million, underscoring its strong financial health and liquidity.
May 8, 2017
2016-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2016
Arista Networks reported strong year-over-year revenue growth for the third quarter and the first nine months of 2016, driven by increased demand from existing customers and new product introductions. The company demonstrated robust profitability, with net income rising significantly compared to the prior year. While gross margins experienced a slight dip due to customer mix and capacity expansion costs, overall financial performance remained healthy, with significant improvements in income from operations. Key areas of focus for management include continued investment in research and development to drive product innovation and expansion of sales and marketing efforts globally. Despite ongoing litigation with Cisco and OptumSoft, Arista continues to execute on its growth strategy, underscoring its position as a key player in the cloud networking solutions market. Investors should note the continued growth in service revenue and the company's focus on expanding its installed base and international presence.
Nov 3, 2016
2016-Q2-A
Arista Networks, Inc. Quarterly Report (Amendment) for Q2 Ended Jun 30, 2016
This document is Amendment No. 1 (Form 10-Q/A) to Arista Networks' quarterly report for the period ended June 30, 2016. The original 10-Q was filed August 5, 2016. The amendment was filed solely to correct Exhibits 31.1 and 31.2, the CEO and CFO Section 302 certifications, which inadvertently omitted language about management's responsibility for internal control over financial reporting. The company states that no financial statements or other disclosures were revised, and that the amendment does not reflect events after the original filing. The excerpt provided contains no financial statements, MD&A, revenue, margin, or guidance data. Investors seeking Arista's operating results for the quarter should consult the Original Filing filed August 5, 2016. From this document, the only substantive business information is the Exhibit Index, which lists the Amended and Restated Manufacturing Services Agreement with Sanmina Corporation dated February 18, 2016 (partially subject to confidential treatment). For investors, this amendment is administrative and has no direct effect on reported results or valuation. Its relevance is limited to governance and disclosure hygiene: the company corrected a technical omission in its SOX 302 certifications. The filing also confirms Arista's status as a large accelerated filer, with 69,679,374 shares of common stock outstanding as of August 26, 2016.
Sep 2, 2016
2016-Q1-A
Arista Networks, Inc. Quarterly Report (Amendment) for Q1 Ended Mar 31, 2016
This filing is Amendment No. 1 (Form 10-Q/A) to Arista Networks' Form 10-Q for the quarter ended March 31, 2016, which was originally filed on May 5, 2016. It contains no new financial results, financial statements, or business disclosures. The amendment was filed solely to correct the Section 302 certifications in Exhibits 31.1 (CEO) and 31.2 (CFO), which inadvertently omitted language about management's responsibility for establishing and maintaining internal control over financial reporting. The explanatory note states that no revisions were made to the financial statements or any other disclosure in the original filing, and that the amendment does not reflect events after the original filing. For investors, the practical significance is limited to the governance and documentation side. The filing confirms Arista's status as a large accelerated filer, its Delaware incorporation, and its Santa Clara headquarters, and reports 69,679,374 common shares outstanding as of August 26, 2016. Because the certification defect was a drafting omission rather than a change in the underlying financials, the amendment does not alter the company's reported Q1 2016 performance or its prior disclosures. Investors seeking Q1 2016 revenue, margin, or guidance information should refer to the original 10-Q filed May 5, 2016, and not this amendment, which is a documentation correction only.
Sep 2, 2016
2016-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2016
Arista Networks, Inc. reported strong revenue growth for the second quarter and first half of fiscal year 2016, demonstrating continued expansion in the cloud networking solutions market. Total revenue for the second quarter increased by 37.4% year-over-year to $268.7 million, and for the first half of the year, revenue grew by 36.4% to $510.9 million. This growth was driven by increased shipments to both new and existing customers, supported by the introduction of new products and an expanding market presence. Despite the revenue growth, gross margin saw a slight decrease due to changes in customer and product mix, with a greater contribution from larger customers who typically receive higher discounts. Operating expenses also increased, primarily driven by significant investments in research and development to fuel future innovation and product development, as well as increased personnel costs in sales and marketing. The company maintains a solid liquidity position with substantial cash and marketable securities, although it is making strategic investments in inventory and manufacturing to support upcoming product transitions.
Aug 5, 2016
2016-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2016
Arista Networks, Inc. (ANET) reported strong revenue growth in its first quarter of 2016, with total revenue reaching $242.2 million, a 35.3% increase year-over-year. This growth was primarily driven by increased shipments to existing customers, reflecting their continued expansion and demand for Arista's cloud networking solutions. The company also saw a significant increase in service revenue, up 57.2%, attributed to the growing customer installed base and initial/renewal support contracts. While gross margin saw a slight decrease to 64.0% from 65.8% in the prior year, primarily due to a shift in customer mix towards larger clients and increased manufacturing infrastructure costs, the company demonstrated robust operational performance. Net income also saw a healthy increase to $35.2 million from $24.5 million in Q1 2015. Arista's liquidity remains strong, with cash and cash equivalents and marketable securities totaling $762.3 million as of March 31, 2016. The company continues to invest in research and development to enhance its product offerings and expand its market presence, anticipating continued growth in the cloud networking segment.
May 5, 2016
2015-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2015
Arista Networks reported strong top-line growth for the third quarter and first nine months of 2015. Total revenue was $217.5 million for Q3 2015, up 39.9% year over year, and $592.1 million for the nine months, up 44.2%. Growth was broad-based across product ($193.3 million in Q3, up 36.7%) and service revenue ($24.2 million, up 72.8%), with the United States representing roughly three-quarters of sales and EMEA and Asia-Pacific growing faster. Net income was $28.7 million in Q3 (vs. $21.9 million a year earlier), and $77.2 million for the nine months, helped by a $5.8 million tax benefit from lapsed statutes of limitation in the quarter. Diluted EPS was $0.39 for Q3 and $1.07 for the nine months. Profitability was mixed beneath the top line. Gross margin was 65.2% in Q3 (up from 64.9%) but 65.4% for the nine months (down from 67.1%), reflecting inventory obsolescence charges and warranty costs. Operating margin compressed to 14.4% in Q3 from 21.7% a year earlier, as operating expenses rose 64.6% to $110.5 million. The largest driver was general and administrative expense, which jumped 154.6% to $25.2 million on roughly $15.5 million of litigation costs tied to the Cisco and OptumSoft matters. Research and development spending also rose 62.1%, to $58.7 million. Management has said operating margins could decline in the short to medium term as it invests for growth. The most significant risk for investors is the legal and control environment. Cisco has filed patent and copyright suits, and parallel ITC investigations could, if adverse, lead to an import exclusion order covering key switch products including the 7000 Series, which generates most product revenue. The OptumSoft ownership dispute could also affect EOS components, with a Phase I court decision expected in November 2015. Management concluded that disclosure controls were not effective due to a material weakness in the cash flow statement review process for 2014, which overstated financing cash flow and understated operating cash flow by $17.4 million. Balance sheet strength is a counterweight: cash and marketable securities totaled $568.6 million, against $349.7 million of total liabilities, and operating cash flow was $84.0 million for the nine months, though receivables and inventory grew sharply.
Nov 6, 2015
2015-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2015
Arista Networks' Q2 2015 10-Q shows a company growing quickly and profitably. Revenue for the three months ended June 30, 2015 was $195.6 million, up 41.8% year over year, and six-month revenue was $374.6 million, up 46.8%. Product revenue grew 37.7% in the quarter and service revenue grew 85.9%. Net income was $24.0 million, or $0.33 per diluted share, compared with $21.6 million in the prior-year quarter. Gross margin declined to 65.4% from 67.7%, which management attributes mainly to a shift toward large customers that receive higher discounts, plus investments in manufacturing capacity. Operating expenses rose 51.5% in the quarter, with the largest jump in general and administrative expense (up 158%, driven by a $9.9 million increase in litigation fees tied to the Cisco and OptumSoft matters). Research and development grew 43%. Operating margin fell to 16.8% from 22.2%. Deferred revenue rose sharply, to $164.4 million combined current and non-current from $106.5 million at year-end 2014, which supports future revenue. The company ended the quarter with $551.8 million in cash and marketable securities and generated $73.4 million in operating cash flow for the first half. The main investor risks are the litigation and the control weakness. Cisco has filed patent and copyright suits and parallel USITC Section 337 investigations that could lead to an exclusion order on the 7000 Series switches, which generate most product revenue. The OptumSoft lawsuit challenges ownership of parts of EOS. Management also disclosed a material weakness in internal controls: a 2014 cash flow statement error overstated financing cash flows and understated operating cash flows by $17.4 million. Disclosure controls were judged not effective as of June 30, 2015, and remediation is ongoing.
Aug 7, 2015
2015-Q1
Arista Networks, Inc. Quarterly Report for Q1 Ended Mar 31, 2015
Arista Networks' Q1 2015 10-Q shows a business growing rapidly and reaching profitability at a higher level. Revenue rose 52.8% year over year to $179.0 million, driven by a 56.1% increase in switch port shipments partially offset by a 4.0% decline in average selling price. Income from operations increased 62.6% to $35.8 million, with operating margin of 20.0% versus 18.8% a year earlier. Net income was $24.5 million, or $0.34 per diluted share, compared with $12.3 million (diluted EPS $0.20) in the prior-year period. Gross margin compressed to 65.8% from 69.4%, which management attributed to product and customer mix, partly offset by a $2.2 million supplier settlement benefit. Operating expenses grew 38.2%, led by R&D (up 29.6%) and a sharp 94.6% rise in G&A that reflects roughly $6.7 million of additional litigation fees tied to the Cisco and OptumSoft matters. Cash flow from operations was $20.8 million, below net income, because of growth in receivables, inventory and accrued-liability payouts, although deferred revenue rose $26.4 million. The company ended the quarter with $484.3 million in cash and marketable securities and no debt-like financing beyond a lease financing obligation. The most important risk for investors is the litigation. Cisco has filed patent and copyright suits as well as ITC Section 337 investigations that could result in an exclusion order against 7000 Series switches, which generate most product revenue. OptumSoft claims ownership of parts of the EOS operating system. The company disclosed a material weakness in internal controls tied to a $17.4 million misclassification in the 2014 cash flow statement, and remediation is not complete. Investors should weigh strong growth and profitability against these legal, control and concentration risks.
May 15, 2015
2014-Q3
Arista Networks, Inc. Quarterly Report for Q3 Ended Sep 30, 2014
Arista Networks' Q3 2014 10-Q (quarter ended September 30, 2014) shows a company in strong hypergrowth following its June 2014 IPO. Revenue for the quarter was $155.5 million, up 53.0% year over year, and nine-month revenue was $410.6 million, up 66.6%. Gross margin expanded to 64.9% in the quarter from 64.0%, and operating income rose to $33.9 million, a 21.7% operating margin versus 18.3% a year earlier. Net income was $21.9 million, and diluted EPS was $0.30 versus $0.20. Growth came mainly from switch port shipments, which rose 78.3% in the quarter, partly offset by a 15.5% decline in average selling price per port driven by mix and large-customer pricing. Operating expenses grew 44.6% in the quarter, led by R&D (up 36.0%) and G&A (up 88.8%), reflecting headcount expansion and public-company costs. Management said operating profit could decline in the short to medium term as it keeps investing for growth. The balance sheet and cash flow strengthened considerably. Cash and equivalents rose to $408.6 million from $113.7 million at year-end 2013, driven by $239.6 million in net IPO proceeds and $98.7 million of operating cash flow for the nine months. All convertible notes were converted or repaid, eliminating the debt overhang, and total stockholders' equity increased to $492.9 million. Customer concentration remains high: the 10 largest end customers accounted for 43.0% of 2013 revenue, and the largest customer (Microsoft, via a channel partner) for 21.9%. The filing also discloses a material weakness in internal controls tied to inventory capitalization, with CEO and CFO concluding disclosure controls were not effective. Remediation is ongoing. The OptumSoft lawsuit over EOS software ownership is a notable legal risk, with trial set for April 2016 and no estimable loss. For investors, the quarter shows strong top-line momentum, improving margins, and a much stronger capital position after the IPO. The key watch items are customer concentration, the unremediated material weakness, the OptumSoft litigation, declining per-port pricing, and management's guidance that operating margins may compress as investment continues.
Nov 7, 2014
2014-Q2
Arista Networks, Inc. Quarterly Report for Q2 Ended Jun 30, 2014
Arista Networks' first quarterly report as a public company (10-Q for the quarter ended June 30, 2014) shows a strong operating quarter and a transformed balance sheet following its June 6, 2014 IPO. Q2 2014 revenue rose 65.2% year over year to $137.9 million, and six-month revenue rose 76.2% to $255.2 million. Gross margin expanded to 67.7% in the quarter from 64.6%, helped by lower warranty and inventory charges, and operating margin improved to 22.2% from 19.5%. Net income reached $21.6 million in the quarter, and diluted EPS was $0.34 (versus $0.18 a year earlier). Growth was driven mainly by switch port shipments, which rose 51.6% in the quarter, partly offset by a 4.0% decline in average selling price per port. The IPO raised net proceeds of $238.7 million at $43.00 per share, and the convertible notes were converted or repaid. Cash and equivalents climbed to $397.2 million from $113.7 million at year-end 2013, and the company now has no debt apart from the lease financing obligation for its Santa Clara headquarters. Total stockholders' equity rose to $461.2 million. Operating cash flow was $63.9 million for the first half, against $8.7 million a year earlier. Investors should weigh several risks. The company disclosed a material weakness in internal control over inventory accounting that was still being remediated, so disclosure controls were judged not effective. Customer concentration is high: the 10 largest end customers made up 43.0% of 2013 revenue, and the largest alone made up 21.9%. The company also faces an OptumSoft lawsuit over ownership of EOS software components, with a trial set for April 2016 and no loss estimate. Management guided to higher operating expenses and possibly lower operating profit in the short to medium term as it invests in growth.
Aug 8, 2014