Arista Networks, Inc. Reports Fourth Quarter and Year End 2021 Financial Results|||

SANTA CLARA, Calif.–(Business organisation WIRE)–Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client to cloud networking for large information heart, campus and routing environments, today announced fiscal results for its 4th quarter and the total year ended December 31, 2021.

Quaternary Quarter Fiscal Results

  • Revenue of $824.5 million, an increase of ten.ane% compared to the 3rd quarter of 2021, and an increase of 27.1% from the fourth quarter of 2020.
  • GAAP gross margin of 63.4%, compared to GAAP gross margin of 63.9% in the third quarter of 2021 and 63.9% in the fourth quarter of 2020.
  • Non-GAAP gross margin of 64.3%, compared to non-GAAP gross margin of 64.9% in the third quarter of 2021 and 65.0% in the quaternary quarter of 2020.
  • GAAP internet income of $239.3 million, or $0.75 per diluted share, compared to GAAP net income of $183.0 1000000, or $0.58 per diluted share, in the quaternary quarter of 2020.
  • Not-GAAP net income of $262.four million, or $0.82 per diluted share, compared to non-GAAP net income of $197.7 1000000, or $0.62 per diluted share, in the 4th quarter of 2020.

Full Year Financial Results

  • Acquirement of $two.95 billion, an increase of 27.2% compared to fiscal year 2020.
  • GAAP gross margin of 63.viii%, compared to GAAP gross margin of 63.nine% in fiscal year 2020.
  • Non-GAAP gross margin of 64.8%, compared to non-GAAP gross margin of 65.0% in fiscal year 2020.
  • GAAP internet income of $840.ix meg, or $two.63 per diluted share, compared to GAAP net income of $634.half-dozen million, or $two.00 per diluted share, in fiscal year 2020.
  • Not-GAAP net income of $915.0 million or $2.87 per diluted share, compared to non-GAAP internet income of $718.4 1000000 or $ii.26 per diluted share, in fiscal twelvemonth 2020.

“I am delighted with Arista’s record 2021 milestones in innovation, diversified client momentum and earnings. We have executed well to establish Arista among the fastest growing networking companies in this decade,” stated Jayshree Ullal, President and CEO of Arista Networks.

Commenting on the company’due south fiscal results, Ita Brennan, Arista’s CFO said, “The Arista team has shown smashing resilience and flexibility throughout 2021, maintaining operational excellence in the face of industry-broad challenges and delivering our offset billion-dollar cash catamenia year.”

Fourth Quarter Visitor Highlights

  • Arista Expands Extensible Operating System for Data-Driven Cloud Networking – Arista Networks announced the next major expansion of the Arista EOS®
    network stack with the introduction of the EOS Network Data Lake (NetDL™). Coupled with the AI/ML-driven Autonomous Virtual Assist (Arista AVA™) and a broad ecosystem of industry leaders, Arista is extending the EOS network stack compages to provide a high-fidelity data lake capability for the next era of data-driven networking.
  • Arista Expands 400G for Enterprise and Deject Customers – Arista, a leader in data-driven networking, announced the next generation of the widely deployed 7050X and 7060X Series, providing performance and toll benefits for customers of all sizes as they transition to 400G networks.
  • Arista Joins Microsoft Intelligent Security Clan for Integration with Microsoft Azure Sentinel to Assistance Improve Customer Security – Arista appear it has joined the Microsoft Intelligent Security Association (MISA), an ecosystem of independent software vendors and managed security service providers that have integrated solutions to better defend confronting a globe of increasing threats. Arista was nominated based on an integration between Arista’due south NDR platform and Microsoft Azure Sentinel. This integration enables faster remediation of threats past combining network context and threat detection with log-based and endpoint insights inside Azure Sentinel.

Full Twelvemonth Company Highlights

  • Arista Networks delivers Multi-domain Sectionalization for Goose egg Trust Enterprise – Simplified network sectionalisation with dynamic partner integrations
  • Arista Networks Expands its Cognitive Campus with the Latest Generation Wi-Fi 6E Solution – New access point extends the benefits of Arista’southward cerebral unified edge to run into enterprise IoT and collaborative applications requirements
  • Arista Expands Extensible Operating System for Information-Driven Cloud Networking – EOS Network Data Lake architecture endorsed by Equinix, Palo Alto Networks, Red Chapeau, Slack, Splunk, VMware, and Zscaler
  • Arista Expands 400G for Enterprise and Cloud Customers – Next-generation 7050X and 7060X delivers 2 times the performance
  • KuppingerCole has recognized Arista NDR as a leader in the 2021 Leadership Compass for Network Detection and Response (NDR)

Financial Outlook

For the first quarter of 2022, we expect:

  • Revenue between $840 million to $860 one thousand thousand;
  • Non-GAAP gross margin of 63% to 64%; and
  • Not-GAAP operating margin of approximately 38%.
Popular:   John B. Sanfilippo & Son, Inc., Celebrates 100-Year Anniversary|||

Guidance for not-GAAP financial measures excludes stock-based bounty expense, amortization of acquisition-related intangible avails, and certain not-recurring items. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis (run into further caption below under “Non-GAAP Fiscal Measures”).

Prepared Materials and Conference Call Information

Arista’s executives will discuss the fourth quarter and year terminate 2021 financial results on a briefing telephone call at 1:30 p.chiliad. Pacific time today. To heed to the phone call via phone, dial (888) 330-2502 in the United states of america or +i (240) 789-2713 from international locations. The Conference ID is 5655862.

The financial results briefing call volition likewise exist available via alive webcast on Arista’southward investor relations website at https://investors.arista.com/. Shortly after the conclusion of the briefing call, a replay of the audio webcast will be available on Arista’due south investor relations website.

Forward-Looking Statements

This press release contains “forward-looking statements” regarding our future performance, including quotations from direction, statements in the department entitled “Financial Outlook,” such equally estimates regarding revenue, not-GAAP gross margin and non-GAAP operating margin for the showtime quarter of 2022 and statements regarding the benefits of Arista’s products. Forward-looking statements are subject field to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from those anticipated in or implied by the forward-looking statements including risks associated with: the impact of the COVID-19 pandemic on our business concern; the impact of supply shortages and manufacturing constraints on our business organization including pb time and inventory purchases, increased costs of components, interruptions or delays in shipments; the rapid evolution of the networking market place; any failure to successfully pursue new products and service offerings and expand into next markets; a pass up in our revenue growth rate; unpredictability of our results of operations; agin economic conditions or reduced data technology and network infrastructure spending; excess inventory; deferral, reduction or cancellation of orders from cease customers; intense contest; expansion of our international sales and operations; investment or conquering in other businesses; seasonality; our ability to attract new large stop customers or sell products and services to existing end customers; our power to increase market awareness of our company and new products and services; product quality problems; our power to anticipate technological shifts and develop products to encounter those technological shifts; our ability to protect, defend and maintain our intellectual property rights; vulnerabilities in our products and failure of our products to discover security breaches our intellectual property rights; and tax, tariff, import/consign restrictions; and other time to come events. Additional risks and uncertainties that could touch on us tin can be institute in our nearly recent filings with the Securities and Exchange Commission including, simply not limited to, our annual report on Grade 10-One thousand and quarterly reports on Course 10-Q. Yous tin locate these reports through our website at https://investors.arista.com/ and on the SEC’s website at https://www.sec.gov/. All forwards-looking statements in this printing release are based on information available to the company equally of the date hereof and nosotros disclaim any obligation to publicly update or revise any forward-looking argument to reflect events that occur or circumstances that be after the appointment on which they were made.

Not-GAAP Fiscal Measures

This press release and accompanying tabular array contain certain non-GAAP fiscal measures including not-GAAP gross turn a profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margins, not-GAAP internet income and non-GAAP diluted net income per share. These not-GAAP financial measures exclude stock-based compensation expense, amortization of acquisition-related intangible avails, sure not-recurring charges or benefits, and the income tax effect of these non-GAAP exclusions. In addition, non-GAAP financial measures exclude net taxation benefits associated with stock-based awards, which include excess revenue enhancement benefits, and other discrete indirect furnishings of such awards. The company uses these not-GAAP fiscal measures internally in analyzing its financial results and believes that these not-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the main indicators management uses as a basis for its planning and forecasting for future periods.

Popular:   Uptime Institute launches data center career pathfinder

Not-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject field to limitations, and should be read but in conjunction with the company’s consolidated financial statements prepared in accord with GAAP. Non-GAAP financial measures do not have whatsoever standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-GAAP fiscal measures and a reconciliation of the company’southward non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial argument tables included in this press release, and investors are encouraged to review the reconciliation.

The visitor’due south guidance for non-GAAP financial measures excludes stock-based bounty expense, amortization of acquisition-related intangible avails, and other not-recurring items. The visitor does not provide guidance on GAAP gross margin or GAAP operating margin or the various reconciling items between GAAP gross margin and GAAP operating margin and non-GAAP gross margin and non-GAAP operating margin. A reconciliation of the non-GAAP fiscal measures guidance to the corresponding GAAP measures on a forward-looking basis is not available considering stock-based compensation expense is impacted by the company’s hereafter hiring and retentiveness needs and the future fair market value of the company’south common stock, all of which are difficult to predict and subject to constant modify. The actual corporeality of stock-based bounty expense volition accept a pregnant bear on on the company’s GAAP gross margin and GAAP operating margin.

Virtually Arista Networks

Arista Networks is an industry leader in data-driven, client to cloud networking for large data center, campus and routing environments. Arista’s award-winning platforms deliver availability, agility, automation, analytics and security through CloudVision® and Arista EOS®, an avant-garde network operating system. For more than data, visit world wide web.arista.com.

ARISTA, CloudVision, CloudEOS and MSS are among the registered and unregistered trademarks of Arista Networks, Inc. in jurisdictions around the earth. Other company names or production names may be trademarks of their respective owners. Boosted information and resources can be plant at www.arista.com.

ARISTA NETWORKS, INC.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

Iii Months Concluded December 31,

Twelve Months Concluded December 31,

2021

2020

2021

2020

Revenue:

Product

$

667,955

$

518,281

$

2,377,727

$

i,830,842

Service

156,504

130,201

570,310

486,670

Full revenue

824,459

648,482

2,948,037

ii,317,512

Cost of revenue:

Product

270,809

210,436

958,363

749,962

Service

xxx,936

23,462

108,895

85,664

Total cost of revenue

301,745

233,898

i,067,258

835,626

Total gross profit

522,714

414,584

1,880,779

1,481,886

Operating expenses:

Research and evolution

157,879

133,847

586,752

486,594

Sales and marketing

74,786

67,671

286,171

229,366

General and administrative

24,261

18,428

83,117

66,242

Full operating expenses

256,926

219,946

956,040

782,202

Income from operations

265,788

194,638

924,739

699,684

Other income, internet

1,500

v,542

6,140

39,179

Income before income taxes

267,288

200,180

930,879

738,863

Provision for income taxes

27,993

17,222

90,025

104,306

Net income

$

239,295

$

182,958

$

840,854

$

634,557

Net income attributable to common stockholders:

Basic

$

239,295

$

182,958

$

840,854

$

634,557

Diluted

$

239,295

$

182,958

$

840,854

$

634,557

Net income per share attributable to mutual stockholders (i):

Bones

$

0.78

$

0.60

$

2.74

$

2.09

Diluted

$

0.75

$

0.58

$

2.63

$

2.00

Weighted-average shares used in computing internet income per share attributable to mutual stockholders (one):

Bones

307,521

303,456

306,512

303,936

Diluted

319,753

317,044

319,238

317,860

_____________________

(1) Prior period results have been adjusted to reflect the 4-for-one stock split effected in the form of a stock dividend in November 2021.

ARISTA NETWORKS, INC.

Reconciliation of Selected GAAP to Non-GAAP Fiscal Measures

(Unaudited, in thousands, except percentages and per share amounts)

Three Months Ended

Dec 31,

Twelve Months Ended

December 31,

2021

2020

2021

2020

GAAP gross profit

$

522,714

$

414,584

$

1,880,779

$

1,481,886

GAAP gross margin

63.4

%

63.9

%

63.8

%

63.9

%

Stock-based bounty expense

2,246

1,554

7,444

6,272

Intangible asset amortization

5,464

5,464

21,857

17,480

Non-GAAP gross profit

$

530,424

$

421,602

$

1,910,080

$

1,505,638

Non-GAAP gross margin

64.three

%

65.0

%

64.viii

%

65.0

%

GAAP income from operations

$

265,788

$

194,638

$

924,739

$

699,684

Stock-based bounty expense

51,243

twoscore,095

186,875

137,042

Intangible nugget amortization

7,159

vii,562

29,235

24,086

Acquisition-related costs (1)

1,215

13,933

Not-GAAP income from operations

$

324,190

$

243,510

$

1,140,849

$

874,745

Not-GAAP operating margin

39.three

%

37.6

%

38.7

%

37.7

%

GAAP internet income

$

239,295

$

182,958

$

840,854

$

634,557

Stock-based compensation expense

51,243

forty,095

186,875

137,042

Intangible asset amortization

vii,159

seven,562

29,235

24,086

Acquisition-related costs

i,215

13,933

Gain on investment in privately-held companies

(4,164

)

(iv,164

)

Revenue enhancement benefit on stock-based awards

(30,470

)

(19,802

)

(115,154

)

(60,880

)

Income taxation effect on not-GAAP exclusions

(iv,814

)

(10,188

)

(26,813

)

(26,163

)

Non-GAAP net income

$

262,413

$

197,676

$

914,997

$

718,411

GAAP diluted net income per share attributable to mutual stockholders (two)

$

0.75

$

0.58

$

ii.63

$

2.00

Non-GAAP adjustments to internet income

0.07

0.04

0.24

0.26

Non-GAAP diluted net income per share

$

0.82

$

0.62

$

ii.87

$

2.26

Weighted-boilerplate shares used in computing diluted net income per share (2)

319,753

317,044

319,238

317,860

Summary of Stock-Based Compensation Expense:

Cost of revenue

$

2,246

$

1,554

$

vii,444

$

6,272

Research and development

27,097

23,184

99,770

79,913

Sales and marketing

12,388

eleven,188

46,521

34,944

General and administrative

ix,512

iv,169

33,140

15,913

Total

$

51,243

$

40,095

$

186,875

$

137,042

Popular:   Ooma Reports Fourth Quarter and Fiscal Year 2022 Financial Results|||

___________________

(1)

Represents non-recurring costs associated with our acquisitions, which primarily include retention bonuses, professional and consulting fees, and restructuring costs.

(2)

Prior menstruum results accept been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in November 2021.

ARISTA NETWORKS, INC.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

Dec 31, 2021

December 31, 2020

ASSETS

Current ASSETS:

Greenbacks and cash equivalents

$

620,813

$

893,219

Marketable securities

2,787,502

1,979,649

Accounts receivable

516,509

389,540

Inventories

650,117

479,668

Prepaid expenses and other electric current assets

237,735

94,922

Full electric current assets

4,812,676

three,836,998

Property and equipment, internet

78,634

32,231

Acquisition-related intangible assets, net

93,555

122,790

Goodwill

188,397

189,696

Investments

20,247

8,314

Operating lease correct-of-utilize assets

65,182

77,288

Deferred tax avails

442,295

441,531

Other avails

33,443

xxx,071

TOTAL Avails

$

5,734,429

$

4,738,919

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

202,636

$

134,235

Accrued liabilities

226,643

143,357

Deferred revenue

593,578

396,259

Other electric current liabilities

86,972

94,392

Total current liabilities

1,109,829

768,243

Income taxes payable

69,916

53,053

Operating charter liabilities, non-electric current

56,527

72,397

Deferred revenue, non-current

335,734

254,568

Deferred tax liabilities, not-current

129,074

227,936

Other long-term liabilities

54,749

42,431

TOTAL LIABILITIES

1,755,829

i,418,628

STOCKHOLDERS’ EQUITY:

Common stock (i)

31

30

Additional paid-in capital letter (i)

1,530,046

1,292,409

Retained earnings

2,456,823

2,027,614

Accumulated other comprehensive income

(8,300

)

238

TOTAL STOCKHOLDERS’ Equity

iii,978,600

3,320,291

TOTAL LIABILITIES AND STOCKHOLDERS’ Disinterestedness

$

v,734,429

$

4,738,919

______________________

(ane) Prior period results have been adjusted to reflect the four-for-ane stock split effected in the form of a stock dividend in November 2021.

ARISTA NETWORKS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Twelve Months Ended Dec 31,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

840,854

$

634,557

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and other

50,334

44,590

Noncash lease expense

17,112

16,970

Stock-based bounty

186,875

137,042

Deferred income taxes

(99,290

)

(9,144

)

(Proceeds) on investments in privately-held companies, net

(4,164

)

(Gain) on sale of marketable securities

(nine,432

)

Amortization of investment premiums

26,847

10,381

Changes in operating avails and liabilities:

Accounts receivable, net

(126,969

)

x,673

Inventories

(170,449

)

(235,318

)

Prepaid expenses and other current avails

(134,814

)

13,846

Other assets

(four,220

)

4,965

Accounts payable

66,681

41,161

Accrued liabilities

83,524

2,728

Deferred revenue

278,485

fifty,352

Income taxes payable

six,223

eight,805

Other liabilities

(5,337

)

17,102

Cyberspace cash provided by operating activities

1,015,856

735,114

Greenbacks FLOWS FROM INVESTING ACTIVITIES:

Proceeds from maturities of marketable securities

one,455,465

1,545,689

Purchases of marketable securities

(2,317,264

)

(2,688,064

)

Business combinations, cyberspace of cash acquired

(227,420

)

Purchases of property, equipment and intangible assets

(64,736

)

(xv,384

)

Escrow receipts from past business acquisitions

ane,299

Investments and notes receivable in privately-held companies

(19,933

)

three,399

Proceeds from sale of marketable securities

19,607

772,978

Net cash used in investing activities

(925,562

)

(608,802

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock nether disinterestedness plans

67,245

57,556

Tax withholding paid on behalf of employees for net share settlement

(16,482

)

(8,722

)

Repurchase of common stock

(411,645

)

(395,173

)

Net cash used in financing activities

(360,882

)

(346,339

)

Issue of exchange rate changes

(ane,816

)

1,966

Net Decrease IN Cash, Cash EQUIVALENTS AND RESTRICTED Cash

(272,404

)

(218,061

)

Cash, CASH EQUIVALENTS AND RESTRICTED Greenbacks —Kickoff of flow

897,454

one,115,515

Cash, CASH EQUIVALENTS AND RESTRICTED Greenbacks —End of menstruation

$

625,050

$

897,454

Contacts

Investor Contacts:

Arista Networks, Inc.

Liz Stine, 408-547-5885

Managing director, Investor Relations

liz@arista.com

Venk Nathamuni, 408-547-5959

Head of Corporate Finance, M&A, IR

venk@arista.com

Source: https://www.dailyhostnews.com/arista-networks-inc-reports-fourth-quarter-and-year-end-2021-financial-results