Arista Q4 2023 Earnings Report
Key Takeaways
Arista Networks reported Q4 2023 revenue of $1.54 billion, a 20.8% increase year-over-year. GAAP net income was $613.6 million, or $1.92 per diluted share, compared to $427.1 million, or $1.35 per diluted share, in Q4 2022. Non-GAAP net income was $664.3 million, or $2.08 per diluted share, compared to $445.1 million, or $1.41 per diluted share, in the fourth quarter of 2022.
Revenue increased by 20.8% compared to Q4 2022, reaching $1.54 billion.
GAAP gross margin was 64.9%, compared to 60.3% in Q4 2022.
GAAP net income was $613.6 million, or $1.92 per diluted share.
Non-GAAP net income was $664.3 million, or $2.08 per diluted share.
Arista
Arista
Arista Revenue by Segment
Forward Guidance
For the first quarter of 2024, Arista expects revenue between $1.52 billion and $1.56 billion, a non-GAAP gross margin of approximately 62%, and a non-GAAP operating margin of approximately 42%.
Positive Outlook
- Revenue between $1.52 billion to $1.56 billion
- Demand in AI
- Demand in Cloud
- Demand in Enterprise
- Demand in campus
Challenges Ahead
- Excludes stock-based compensation expense
- Excludes amortization of acquisition-related intangible assets
- Excludes other acquisition-related costs
- Exclusions can be uncertain or difficult to predict
- Stock-based compensation expense is impacted by the company’s future hiring and retention needs
Revenue & Expenses
Visualization of income flow from segment revenue to net income