•
Mar 31, 2023

Arista Q1 2023 Earnings Report

Arista's Q1 2023 results demonstrated growth in revenue and profits amidst macroeconomic uncertainty and a gradually recovering supply chain.

Key Takeaways

Arista Networks reported a strong first quarter in 2023, with revenue reaching $1.351 billion, a 54.1% increase year-over-year. The company's GAAP net income was $436.5 million, or $1.38 per diluted share, while non-GAAP net income was $452.5 million, or $1.43 per diluted share.

Revenue reached $1.351 billion, up 54.1% year-over-year.

GAAP gross margin was 59.5%, while non-GAAP gross margin was 60.3%.

GAAP net income was $436.5 million, or $1.38 per diluted share.

Non-GAAP net income was $452.5 million, or $1.43 per diluted share.

Total Revenue
$1.35B
Previous year: $877M
+54.0%
EPS
$1.43
Previous year: $0.84
+70.2%
GAAP Gross Margin
59.5%
Previous year: 63.1%
-5.7%
Non-GAAP Operating Margin
41.2%
Previous year: 38.3%
+7.6%
Gross Profit
$805M
Previous year: $554M
+45.3%
Cash and Equivalents
$956M
Previous year: $635M
+50.6%
Free Cash Flow
$369M
Previous year: $202M
+82.4%
Total Assets
$7.54B
Previous year: $6.11B
+23.5%

Arista

Arista

Arista Revenue by Segment

Forward Guidance

For the second quarter of 2023, Arista expects revenue between $1.350 billion and $1.400 billion, a non-GAAP gross margin of approximately 61%, and a non-GAAP operating margin of approximately 40%.

Positive Outlook

  • Revenue between $1.350 billion to $1.400 billion
  • Non-GAAP gross margin of approximately 61%
  • Non-GAAP operating margin of approximately 40%
  • Continued strong revenue growth
  • Focus on improving broader financial metrics

Challenges Ahead

  • Excludes stock-based compensation expense
  • Excludes amortization of acquisition-related intangible assets
  • Excludes potential non-recurring charges or benefits
  • Uncertainty in predicting stock-based compensation expense
  • Impact of future fair market value of the company’s common stock

Revenue & Expenses

Visualization of income flow from segment revenue to net income