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Sep 30, 2021

Arista Q3 2021 Earnings Report

Arista reported record financial results driven by strong demand across all customer sectors and despite supply chain challenges.

Key Takeaways

Arista Networks reported a strong third quarter in 2021, with revenue of $748.7 million, representing a 23.7% increase year-over-year. The company's GAAP net income was $224.3 million, or $2.81 per diluted share, while non-GAAP net income was $236.9 million, or $2.96 per diluted share. The results exceeded expectations across key financial metrics despite a difficult supply environment.

Revenue reached $748.7 million, a 23.7% increase from Q3 2020.

GAAP gross margin was 63.9%, compared to 63.6% in Q3 2020.

GAAP net income was $224.3 million, or $2.81 per diluted share, compared to $168.4 million, or $2.12 per diluted share in Q3 2020.

Arista announced the expansion of its cloud-grade routing solutions for next generation network edge roles.

Total Revenue
$749M
Previous year: $605M
+23.7%
EPS
$0.74
Previous year: $0.61
+21.3%
GAAP Gross Margin
63.9%
Previous year: 63.6%
+0.5%
Non-GAAP Operating Margin
39.2%
Previous year: 38.2%
+2.6%
Gross Profit
$479M
Previous year: $385M
+24.3%
Cash and Equivalents
$631M
Previous year: $970M
-35.0%
Free Cash Flow
$227M
Previous year: $213M
+6.6%
Total Assets
$5.44B
Previous year: $4.4B
+23.6%

Arista

Arista

Arista Revenue by Segment

Forward Guidance

For the fourth quarter of 2021, Arista expects revenue between $775 million and $795 million, a non-GAAP gross margin of 63% to 65%, and a non-GAAP operating margin of approximately 37%.

Positive Outlook

  • Revenue between $775 million to $795 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