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Sep 30, 2024
Arista Q3 2024 Earnings Report
Arista reported strong Q3 2024 results, driven by innovation and value delivery to customers and shareholders.
Key Takeaways
Arista Networks reported a strong third quarter with revenue of $1.811 billion, a 20.0% increase year-over-year. GAAP net income was $747.9 million, or $2.33 per diluted share, compared to $545.3 million, or $1.72 per diluted share in the third quarter of 2023.
Revenue reached $1.811 billion, up 20.0% year-over-year.
GAAP gross margin was 64.2%, compared to 62.4% in the third quarter of 2023.
GAAP net income was $747.9 million, or $2.33 per diluted share.
Arista's board approved a four-for-one forward stock split.
Arista
Arista
Arista Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
For the fourth quarter of 2024, Arista expects revenue between $1.85 billion to $1.90 billion, a non-GAAP gross margin of approximately 63% - 64%, and a non-GAAP operating margin of approximately 44%.
Positive Outlook
- Revenue between $1.85 billion to $1.90 billion
- Non-GAAP gross margin of approximately 63% - 64%
- Non-GAAP operating margin of approximately 44%
- Stockholders will receive an additional three shares of common stock for each share held as of the effective time of the filing of the amendment on December 3, 2024.
- Prior to market open on December 4, 2024, trading is expected to commence on a split-adjusted basis.
Challenges Ahead
- Excludes stock-based compensation expense
- Excludes intangible asset amortization
- Excludes potential non-recurring charges or benefits
- Stock-based compensation expense is impacted by the timing of employee stock transactions
- Stock-based compensation expense is impacted by the company’s future hiring and retention needs and the future fair market value of the company’s common stock.
Revenue & Expenses
Visualization of income flow from segment revenue to net income