•
Sep 30, 2020

Arista Q3 2020 Earnings Report

Reported financial results for the third quarter ended September 30, 2020.

Key Takeaways

Arista Networks reported Q3 2020 revenue of $605.4 million, a decrease of 7.5% from Q3 2019. GAAP net income was $168.4 million, or $2.12 per diluted share, compared to $208.9 million, or $2.59 per diluted share in Q3 2019.

Revenue of $605.4 million, an increase of 12.0% compared to the second quarter of 2020, and a decrease of 7.5% from the third quarter of 2019.

GAAP gross margin of 63.6%, compared to GAAP gross margin of 63.7% in the second quarter of 2020 and 63.8% in the third quarter of 2019.

GAAP net income of $168.4 million, or $2.12 per diluted share, compared to GAAP net income of $208.9 million, or $2.59 per diluted share in the third quarter of 2019.

Arista Networks acquired Awake Security, a Network Detection and Response (NDR) platform provider.

Total Revenue
$605M
Previous year: $654M
-7.5%
EPS
$0.61
Previous year: $0.67
-9.0%
GAAP Gross Margin
63.6%
Previous year: 63.8%
-0.3%
Non-GAAP Operating Margin
38.2%
Gross Profit
$385M
Previous year: $417M
-7.7%
Cash and Equivalents
$970M
Previous year: $1.1B
-11.4%
Free Cash Flow
$213M
Previous year: $265M
-19.7%
Total Assets
$4.4B
Previous year: $3.62B
+21.5%

Arista

Arista

Arista Revenue by Segment

Forward Guidance

For the fourth quarter of 2020, Arista Networks expects revenue between $615 million to $635 million; Non-GAAP gross margin of 63% to 65%; and Non-GAAP operating margin of approximately 37%.

Positive Outlook

  • Revenue between $615 million to $635 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