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Mar 31, 2021

Arista Q1 2021 Earnings Report

Arista's cognitive cloud networking suite resonated with customers, driving a strong start to 2021.

Key Takeaways

Arista Networks reported a strong first quarter in 2021, with revenue of $667.6 million, a 27.6% increase from Q1 2020. The company's focus on cognitive cloud networking solutions drove healthy demand across all market and product sectors.

Revenue increased by 27.6% year-over-year to $667.6 million.

GAAP gross margin was 63.7%.

GAAP net income reached $180.4 million, or $2.27 per diluted share.

Successful interoperability testing between multiple 400G ZR suppliers over Microsoft’s 120km open line system testbed.

Total Revenue
$668M
Previous year: $523M
+27.6%
EPS
$0.63
Previous year: $0.51
+23.5%
GAAP Gross Margin
63.7%
Previous year: 64.7%
-1.5%
Non-GAAP Operating Margin
37.6%
Gross Profit
$425M
Previous year: $338M
+25.7%
Cash and Equivalents
$843M
Previous year: $761M
+10.8%
Free Cash Flow
$250M
Previous year: $192M
+30.2%
Total Assets
$4.89B
Previous year: $4.11B
+19.0%

Arista

Arista

Arista Revenue by Segment

Forward Guidance

For the second quarter of 2021, Arista expects revenue between $675 million and $695 million, a non-GAAP gross margin of 63% to 65%, and a non-GAAP operating margin of approximately 37%.

Positive Outlook

  • Revenue between $675 million to $695 million
  • Non-GAAP gross margin of 63% to 65%
  • Non-GAAP operating margin of approximately 37%

Revenue & Expenses

Visualization of income flow from segment revenue to net income