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Sep 30, 2023

Arista Q3 2023 Earnings Report

Arista delivered strong financial results, driven by customer momentum in enterprise and cloud/AI sectors.

Key Takeaways

Arista Networks reported strong financial results for the third quarter of 2023, with revenue of $1.509 billion, a 28.3% increase year-over-year. GAAP net income was $545.3 million, or $1.72 per diluted share, while non-GAAP net income was $581.4 million, or $1.83 per diluted share.

Revenue reached $1.509 billion, up 28.3% from Q3 2022.

GAAP gross margin was 62.4%, compared to 60.3% in Q3 2022.

GAAP net income was $545.3 million, or $1.72 per diluted share.

Non-GAAP net income was $581.4 million, or $1.83 per diluted share.

Total Revenue
$1.51B
Previous year: $1.18B
+28.2%
EPS
$1.83
Previous year: $1.25
+46.4%
GAAP Gross Margin
62.4%
Previous year: 60.3%
+3.5%
Non-GAAP Operating Margin
46.1%
Previous year: 41.8%
+10.3%
Gross Profit
$942M
Previous year: $710M
+32.7%
Cash and Equivalents
$1.75B
Previous year: $716M
+144.2%
Free Cash Flow
$688M
Previous year: $124M
+456.2%
Total Assets
$9.07B
Previous year: $6.16B
+47.2%

Arista

Arista

Arista Revenue by Segment

Forward Guidance

For the fourth quarter of 2023, Arista expects revenue between $1.500 billion and $1.550 billion, a non-GAAP gross margin of approximately 63%, and a non-GAAP operating margin of approximately 42%.

Positive Outlook

  • Revenue between $1.500 billion to $1.550 billion
  • Non-GAAP gross margin of approximately 63%
  • Non-GAAP operating margin of approximately 42%

Revenue & Expenses

Visualization of income flow from segment revenue to net income