Arista Networks Files Q2 2024 10-Q

Ticker: ANET · Form: 10-Q · Filed: Jul 31, 2024 · CIK: 1596532

Sentiment: neutral

Topics: 10-Q, financials, earnings

TL;DR

Arista Networks' Q2 2024 10-Q is in, check the financials.

AI Summary

Arista Networks, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers financial performance and operational details for the second quarter of 2024. Key financial data and business segments are detailed within the report.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Arista Networks, crucial for understanding the company's current health and future prospects in the computer networking industry.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated.

Key Players & Entities

FAQ

What was Arista Networks' total revenue for the six months ended June 30, 2024?

The filing indicates that Arista Networks' total revenue for the six months ended June 30, 2024, was $7.189 billion.

How did Arista Networks' product revenue compare between the first six months of 2024 and 2023?

Product revenue for the six months ended June 30, 2024, was $5.798 billion, compared to $4.957 billion for the six months ended June 30, 2023.

What was the reported net income for Arista Networks for the quarter ended June 30, 2024?

The net income for the three months ended June 30, 2024, was $1.536 billion.

What is Arista Networks' fiscal year end?

Arista Networks' fiscal year ends on December 31.

What is the filing date for this 10-Q report?

This 10-Q report was filed on July 31, 2024.

Filing Stats: 4,619 words · 18 min read · ~15 pages · Grade level 17.1 · Accepted 2024-07-30 18:00:23

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023 1 Condensed Consolidated Income Statements for the Three Months and Six M o nths Ended June 3 0 , 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Income for the Three Months and Six Months Ended June 3 0 , 2024 and 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the Three Months and Six Months Ended June 3 0 , 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 59

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 59

Other Information

Item 5. Other Information 59

Exhibits

Item 6. Exhibits 60

Signatures

Signatures 61 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) ARISTA NETWORKS, INC. Condensed Consolidated Balance Sheets (In thousands, except par value) June 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,429,031 $ 1,938,606 Marketable securities 3,844,923 3,069,362 Accounts receivable, net 1,226,795 1,024,569 Inventories 1,853,776 1,945,180 Prepaid expenses and other current assets 487,793 412,518 Total current assets 9,842,318 8,390,235 Property and equipment, net 96,282 101,580 Acquisition-related intangible assets, net 75,388 88,768 Goodwill 268,531 268,531 Deferred tax assets 1,177,172 945,792 Other assets 163,544 151,900 TOTAL ASSETS $ 11,623,235 $ 9,946,806 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 297,832 $ 435,059 Accrued liabilities 320,071 407,302 Deferred revenue 1,329,450 915,204 Other current liabilities 214,526 152,041 Total current liabilities 2,161,879 1,909,606 Income taxes payable 107,833 95,751 Deferred revenue, non-current 789,336 591,000 Other long-term liabilities 133,379 131,390 TOTAL LIABILITIES 3,192,427 2,727,747 Commitments and contingencies (Note 5) STOCKHOLDERS' EQUITY: Preferred stock, $ 0.0001 par value— 100,000 shares authorized and no shares issued and outstanding as of June 30, 2024 and December 31, 2023 — — Common stock, $ 0.0001 par value— 1,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 314,086 and 312,245 shares issued and outstanding as of June 30, 2024 and December 31, 2023 31 31 Additional paid-in capital 2,263,356 2,108,331 Retained earnings 6,182,479 5,114,025 Accumulated other comprehensive income (loss) ( 15,058 ) ( 3,328 ) TOTAL STOCKHOLDERS' EQUITY 8,430,808 7,219,059 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,623,235 $ 9,946,806 The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited). 1 Table of Contents ARISTA NETWORKS, INC. Condensed C

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