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Mar 31, 2024

Arista Q1 2024 Earnings Report

Arista reported a strong start to 2024 with solid first quarter results, driven by breakthrough innovations and customer traction.

Key Takeaways

Arista Networks reported a revenue of $1.571 billion for Q1 2024, representing a 16.3% increase year-over-year. The company's GAAP net income was $637.7 million, or $1.99 per diluted share. The Board of Directors authorized an additional $1.2B stock repurchase program.

Revenue reached $1.571 billion, up 16.3% year-over-year.

GAAP gross margin was 63.7%, compared to 59.5% in Q1 2023.

GAAP net income was $637.7 million, or $1.99 per diluted share.

An additional $1.2 billion stock repurchase program was authorized.

Total Revenue
$1.57B
Previous year: $1.35B
+16.3%
EPS
$1.99
Previous year: $1.43
+39.2%
GAAP Gross Margin
63.7%
Previous year: 59.5%
+7.1%
Non-GAAP Operating Margin
47.4%
Previous year: 41.2%
+15.0%
Gross Profit
$1B
Previous year: $805M
+24.5%
Cash and Equivalents
$2.09B
Previous year: $956M
+118.8%
Free Cash Flow
$504M
Previous year: $369M
+36.8%
Total Assets
$10.6B
Previous year: $7.54B
+39.9%

Arista

Arista

Arista Revenue by Segment

Forward Guidance

For the second quarter of 2024, Arista expects revenue between $1.62 billion to $1.65 billion, a non-GAAP gross margin of approximately 64%, and a non-GAAP operating margin of approximately 44%.

Positive Outlook

  • Revenue between $1.62 billion to $1.65 billion.
  • Non-GAAP gross margin of approximately 64%.
  • Non-GAAP operating margin of approximately 44%.
  • Stock repurchase program.

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.
  • Impacted by future hiring and retention needs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income