SANTA CLARA, Calif.--(BUSINESS WIRE)--Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client to cloud networking for large data center, campus and routing environments, today announced financial results for its first quarter ended March 31, 2022.
First Quarter Financial Highlights
“Arista has delivered record Q1 2022 sales despite the sustained supply chain challenges. I am pleased with our enterprise execution and cloud titan strength in these uncertain times,” stated Jayshree Ullal, President and CEO of Arista Networks.
Commenting on the company’s financial results, Ita Brennan, Arista’s CFO said, “We are pleased with the continued growth of our enterprise business in the first quarter, combined with robust next generation product qualification and deployment activity with our cloud customers.”
Company Highlights
Financial Outlook
For the second quarter of 2022, we expect:
Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and certain non-recurring items. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis (see further explanation below under “Non-GAAP Financial Measures”).
Prepared Materials and Conference Call Information
Arista’s executives will discuss the first quarter 2022 financial results on a conference call at 1:30 p.m. Pacific time today. To listen to the call via telephone, dial (888) 330-2502 in the United States or +1 (240) 789-2713 from international locations. The Conference ID is 5655862.
The financial results conference call will also be available via live webcast on Arista's investor relations website at https://investors.arista.com/. Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on Arista’s investor relations website.
Forward-Looking Statements
This press release contains “forward-looking statements” regarding our future performance, including quotations from management, statements in the section entitled “Financial Outlook,” such as estimates regarding revenue, non-GAAP gross margin and non-GAAP operating margin for the second quarter of 2022, statements regarding Arista’s business plans and its ability to execute such plans, and statements regarding the benefits of Arista’s products. Forward-looking statements are subject 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 and related public health measures on our business; the impact of supply shortages and manufacturing constraints on our business including extended lead times and inventory purchase commitments, increased component costs including as a result of increasing inflation, interruptions or delays in shipments; a decline in our revenue growth rate; unpredictability of our results of operations; variability in our gross margins; the timing of orders and their fulfillment; adverse global economic and geopolitical conditions including inflationary pressures and the impact of the Russian/Ukrainian conflict; insufficient, excess or obsolete inventory; a decline in end customer demand for our products or services; variability in end customer mix or product mix; deferral, reduction or cancellation of orders from end customers; the rapid evolution of the networking market; reduced information technology and network infrastructure spending; any failure to successfully pursue new products and service offerings and expand into adjacent markets; our ability to anticipate technological shifts and develop products to meet those technological shifts; intense competition; expansion of our international sales and operations; investment or acquisition in other businesses; seasonality; our ability to attract new large end customers or sell products and services to existing end customers; our ability to increase market awareness of our company and new products and services; product quality problems; our ability to protect, defend and maintain our intellectual property rights; vulnerabilities in our products and failure of our products to detect security breaches our intellectual property rights; and tax, tariff, import/export restrictions; and other future events. Additional risks and uncertainties that could affect us can be found in our most recent filings with the Securities and Exchange Commission including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. You can locate these reports through our website at https://investors.arista.com/ and on the SEC’s website at https://www.sec.gov/. All forward-looking statements in this press release are based on information available to the company as of the date hereof and we disclaim any obligation to publicly update or revise any forward-looking statement to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures
This press release and accompanying table contain certain non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margins, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquisition-related intangible assets, certain non-recurring charges or benefits, and the income tax effect of these non-GAAP exclusions. In addition, non-GAAP financial measures exclude net tax benefits associated with stock-based awards, which include excess tax benefits, and other discrete indirect effects of such awards. The company uses these non-GAAP financial measures internally in analyzing its financial results and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the primary indicators management uses as a basis for its planning and forecasting for future periods.
Non-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 to limitations, and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-GAAP financial measures and a reconciliation of the company’s non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.
The company’s guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and other non-recurring items. The company 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 financial measures guidance to the corresponding GAAP measures on a forward-looking basis is not available because 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, all of which are difficult to predict and subject to constant change. The actual amount of stock-based compensation expense will have a significant impact on the company’s GAAP gross margin and GAAP operating margin.
About 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 an advanced network operating stack. For more information, visit www.arista.com.
ARISTA, EOS and AVA are among the registered and unregistered trademarks of Arista Networks, Inc. in jurisdictions around the world. Other company names or product names may be trademarks of their respective owners.
ARISTA NETWORKS, INC. Condensed Consolidated Statements of Operations (Unaudited in thousands, except per share amounts) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
2021 |
||
Revenue: |
|
|
|
|
||||
Product |
|
$ |
724,718 |
|
$ |
539,145 |
||
Service |
|
|
152,348 |
|
|
128,417 |
||
Total revenue |
|
|
877,066 |
|
|
667,562 |
||
Cost of revenue: |
|
|
|
|
||||
Product |
|
|
293,809 |
|
|
218,433 |
||
Service |
|
|
29,412 |
|
|
23,857 |
||
Total cost of revenue |
|
|
323,221 |
|
|
242,290 |
||
Gross profit |
|
|
553,845 |
|
|
425,272 |
||
Operating expenses: |
|
|
|
|
||||
Research and development |
|
|
172,006 |
|
|
132,487 |
||
Sales and marketing |
|
|
80,739 |
|
|
71,020 |
||
General and administrative |
|
|
23,113 |
|
|
15,473 |
||
Total operating expenses |
|
|
275,858 |
|
|
218,980 |
||
Income from operations |
|
|
277,987 |
|
|
206,292 |
||
Other income, net |
|
|
31,480 |
|
|
1,575 |
||
Income before income taxes |
|
|
309,467 |
|
|
207,867 |
||
Provision for income taxes |
|
|
37,208 |
|
|
27,501 |
||
Net income |
|
$ |
272,259 |
|
$ |
180,366 |
||
Net income per share (1): |
|
|
|
|
||||
Basic |
|
$ |
0.88 |
|
$ |
0.59 |
||
Diluted |
|
$ |
0.85 |
|
$ |
0.57 |
||
Weighted-average shares used in computing net income per share (1): |
|
|
|
|
||||
Basic |
|
|
308,045 |
|
|
305,224 |
||
Diluted |
|
|
319,652 |
|
|
318,492 |
||
(1) Prior period results have been adjusted to reflect the four-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 Financial Measures (Unaudited, in thousands, except percentages and per share amounts) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
GAAP gross profit |
|
$ |
553,845 |
|
|
$ |
425,272 |
|
GAAP gross margin |
|
|
63.1 |
% |
|
|
63.7 |
% |
Stock-based compensation expense |
|
|
1,309 |
|
|
|
1,400 |
|
Intangible asset amortization |
|
|
5,721 |
|
|
|
5,464 |
|
Non-GAAP gross profit |
|
$ |
560,875 |
|
|
$ |
432,136 |
|
Non-GAAP gross margin |
|
|
63.9 |
% |
|
|
64.7 |
% |
|
|
|
|
|
||||
GAAP income from operations |
|
$ |
277,987 |
|
|
$ |
206,292 |
|
Stock-based compensation expense |
|
|
50,279 |
|
|
|
37,553 |
|
Intangible asset amortization |
|
|
7,311 |
|
|
|
7,430 |
|
Non-GAAP income from operations |
|
$ |
335,577 |
|
|
$ |
251,275 |
|
Non-GAAP operating margin |
|
|
38.3 |
% |
|
|
37.6 |
% |
|
|
|
|
|
||||
GAAP net income |
|
$ |
272,259 |
|
|
$ |
180,366 |
|
Stock-based compensation expense |
|
|
50,279 |
|
|
|
37,553 |
|
Intangible asset amortization |
|
|
7,311 |
|
|
|
7,430 |
|
Unrealized gain on equity investments |
|
|
(28,497 |
) |
|
|
— |
|
Tax benefit on stock-based awards |
|
|
(30,964 |
) |
|
|
(20,906 |
) |
Income tax effect on non-GAAP exclusions |
|
|
(1,880 |
) |
|
|
(5,606 |
) |
Non-GAAP net income |
|
$ |
268,508 |
|
|
$ |
198,837 |
|
|
|
|
|
|
||||
GAAP diluted net income per share (1) |
|
$ |
0.85 |
|
|
$ |
0.57 |
|
Non-GAAP adjustments to net income |
|
|
(0.01 |
) |
|
|
0.05 |
|
Non-GAAP diluted net income per share |
|
$ |
0.84 |
|
|
$ |
0.62 |
|
|
|
|
|
|
||||
Weighted-average shares used in computing diluted net income per share (1) |
|
|
319,652 |
|
|
|
318,492 |
|
|
|
|
|
|
||||
Summary of Stock-Based Compensation Expense: |
|
|
|
|
||||
Cost of revenue |
|
$ |
1,309 |
|
|
$ |
1,400 |
|
Research and development |
|
|
27,576 |
|
|
|
21,982 |
|
Sales and marketing |
|
|
13,109 |
|
|
|
10,085 |
|
General and administrative |
|
|
8,285 |
|
|
|
4,086 |
|
Total |
|
$ |
50,279 |
|
|
$ |
37,553 |
|
(1) Prior period results have 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) |
||||||||
|
|
March 31, 2022 |
|
December 31, 2021 |
||||
ASSETS |
|
|
|
|
||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
635,025 |
|
|
$ |
620,813 |
|
Marketable securities |
|
|
2,788,889 |
|
|
|
2,787,502 |
|
Accounts receivable, net |
|
|
648,606 |
|
|
|
516,509 |
|
Inventories |
|
|
694,217 |
|
|
|
650,117 |
|
Prepaid expenses and other current assets |
|
|
338,437 |
|
|
|
237,735 |
|
Total current assets |
|
|
5,105,174 |
|
|
|
4,812,676 |
|
Property and equipment, net |
|
|
87,391 |
|
|
|
78,634 |
|
Acquisition-related intangible assets, net |
|
|
105,244 |
|
|
|
93,555 |
|
Goodwill |
|
|
216,915 |
|
|
|
188,397 |
|
Investments |
|
|
38,625 |
|
|
|
20,247 |
|
Operating lease right-of-use assets |
|
|
66,671 |
|
|
|
65,182 |
|
Deferred tax assets |
|
|
446,347 |
|
|
|
442,295 |
|
Other assets |
|
|
41,819 |
|
|
|
33,443 |
|
TOTAL ASSETS |
|
$ |
6,108,186 |
|
|
$ |
5,734,429 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
|
||||
Accounts payable |
|
$ |
204,675 |
|
|
$ |
202,636 |
|
Accrued liabilities |
|
|
197,063 |
|
|
|
226,643 |
|
Deferred revenue |
|
|
778,436 |
|
|
|
593,578 |
|
Other current liabilities |
|
|
188,831 |
|
|
|
86,972 |
|
Total current liabilities |
|
|
1,369,005 |
|
|
|
1,109,829 |
|
Income taxes payable |
|
|
74,497 |
|
|
|
69,916 |
|
Operating lease liabilities, non-current |
|
|
57,474 |
|
|
|
56,527 |
|
Deferred revenue, non-current |
|
|
345,310 |
|
|
|
335,734 |
|
Deferred tax liabilities, non-current |
|
|
51,051 |
|
|
|
129,074 |
|
Other long-term liabilities |
|
|
57,672 |
|
|
|
54,749 |
|
TOTAL LIABILITIES |
|
|
1,955,009 |
|
|
|
1,755,829 |
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
||||
Common stock |
|
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
1,590,793 |
|
|
|
1,530,046 |
|
Retained earnings |
|
|
2,592,854 |
|
|
|
2,456,823 |
|
Accumulated other comprehensive income (loss) |
|
|
(30,501 |
) |
|
|
(8,300 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
4,153,177 |
|
|
|
3,978,600 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
6,108,186 |
|
|
$ |
5,734,429 |
|
ARISTA NETWORKS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income |
|
$ |
272,259 |
|
|
$ |
180,366 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation, amortization and other |
|
|
13,091 |
|
|
|
12,658 |
|
Stock-based compensation |
|
|
50,279 |
|
|
|
37,553 |
|
Noncash lease expense |
|
|
4,532 |
|
|
|
4,243 |
|
Deferred income taxes |
|
|
(81,822 |
) |
|
|
1,425 |
|
Unrealized gain on equity investments |
|
|
(28,497 |
) |
|
|
— |
|
Amortization of investment premiums |
|
|
7,033 |
|
|
|
5,446 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable, net |
|
|
(131,861 |
) |
|
|
9,074 |
|
Inventories |
|
|
(43,531 |
) |
|
|
(3,500 |
) |
Prepaid expenses and other current assets |
|
|
(107,999 |
) |
|
|
(15,272 |
) |
Other assets |
|
|
(640 |
) |
|
|
(3,499 |
) |
Accounts payable |
|
|
2,478 |
|
|
|
2,833 |
|
Accrued liabilities |
|
|
(29,666 |
) |
|
|
(20,759 |
) |
Deferred revenue |
|
|
187,194 |
|
|
|
69,204 |
|
Income taxes payable |
|
|
106,992 |
|
|
|
(10,436 |
) |
Other liabilities |
|
|
(2,704 |
) |
|
|
(14,661 |
) |
Net cash provided by operating activities |
|
|
217,138 |
|
|
|
254,675 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Proceeds from maturities of marketable securities |
|
|
404,176 |
|
|
|
379,605 |
|
Purchases of marketable securities |
|
|
(412,614 |
) |
|
|
(590,476 |
) |
Business acquisitions, net of cash acquired |
|
|
(37,610 |
) |
|
|
18 |
|
Purchases of property and equipment |
|
|
(14,876 |
) |
|
|
(5,096 |
) |
Purchases of investments in privately-held companies |
|
|
(11,691 |
) |
|
|
(2,000 |
) |
Net cash used in investing activities |
|
|
(72,615 |
) |
|
|
(217,949 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from issuance of common stock under equity plans |
|
|
19,160 |
|
|
|
18,081 |
|
Tax withholding paid on behalf of employees for net share settlement |
|
|
(12,741 |
) |
|
|
(2,496 |
) |
Repurchase of common stock |
|
|
(136,228 |
) |
|
|
(101,355 |
) |
Net cash used in financing activities |
|
|
(129,809 |
) |
|
|
(85,770 |
) |
Effect of exchange rate changes |
|
|
(481 |
) |
|
|
(838 |
) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
14,233 |
|
|
|
(49,882 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period |
|
|
625,050 |
|
|
|
897,454 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period |
|
$ |
639,283 |
|
|
$ |
847,572 |
|
САНТА-КЛАРА, Калифорния. -- (BUSINESS WIRE)--Arista Networks, Inc. (NYSE: ANET), лидер отрасли в области управляемых данными клиентских облачных сетей для крупных центров обработки данных, кампусов и сред маршрутизации, сегодня объявила финансовые результаты за первый квартал, закончившийся 31 марта 2022 года.
Основные финансовые показатели Первого квартала
“Компания Arista добилась рекордных продаж в 1 квартале 2022 года, несмотря на постоянные проблемы в цепочке поставок. Я доволен нашей корпоративной эффективностью и мощью cloud titan в эти неопределенные времена”, - заявил Джейшри Уллал, президент и главный исполнительный директор Arista Networks.
Комментируя финансовые результаты компании, Ита Бреннан, финансовый директор Arista, сказала: “Мы довольны продолжающимся ростом нашего корпоративного бизнеса в первом квартале в сочетании с высокой квалификацией продуктов следующего поколения и активностью по внедрению с нашими облачными клиентами”.
Основные моменты компании
Финансовые перспективы
Во втором квартале 2022 года мы ожидаем:
Руководство по финансовым показателям, не связанным с GAAP, исключает расходы на компенсацию на основе запасов, амортизацию нематериальных активов, связанных с приобретением, и некоторые единовременные статьи. Сверка руководящих показателей, не относящихся к GAAP, с соответствующими показателями GAAP недоступна на прогнозной основе (см. Дополнительные пояснения ниже в разделе “Финансовые показатели, не относящиеся к GAAP”).
Подготовленные материалы и Информация о телефонной конференции
Руководители Arista обсудят финансовые результаты за первый квартал 2022 года на телефонной конференции сегодня в 13:30 по тихоокеанскому времени. Чтобы прослушать звонок по телефону, наберите (888) 330-2502 в Соединенных Штатах или +1 (240) 789-2713 из международных пунктов. Идентификатор конференции - 5655862.
Конференц-связь с финансовыми результатами также будет доступна в режиме прямой трансляции на веб-сайте Arista по связям с инвесторами по адресу https://investors.arista.com /. Вскоре после завершения телефонной конференции воспроизведение аудиотрансляции будет доступно на веб-сайте Arista по связям с инвесторами.
Прогнозные заявления
Этот пресс-релиз содержит “прогнозные заявления” относительно наших будущих результатов, включая цитаты от руководства, заявления в разделе, озаглавленном “Финансовые перспективы”, такие как оценки выручки, валовой прибыли без учета GAAP и операционной прибыли без учета GAAP за второй квартал 2022 года, заявления относительно бизнес-планов Arista и его способность выполнять такие планы, а также заявления о преимуществах продуктов Arista. Прогнозные заявления подвержены известным и неизвестным рискам, неопределенностям, предположениями и другими факторами, которые могут вызвать фактические результаты, показатели деятельности или достижения могут существенно отличаться от ожидаемых или подразумеваемых в заявлениях прогнозного характера, включая риски, связанные с: влияние COVID-19 пандемией и соответствующих мер в области общественного здравоохранения на наш бизнес; влияние дефицита предложения и производственные ограничения на бизнес, в том числе длительное время для приобретения товарно-материальных ценностей и обязательств возросла стоимость компонентов, в том числе в результате роста инфляции, перерывов или задержек поставок; снижение выручки темпы роста; нашей непредсказуемости результатов деятельности; вариативность в нашем валовая прибыль; сроки заказов и их выполнение; неблагоприятные глобальных экономических и геополитических условиях, в том числе инфляционные процессы и влияние российско-украинского конфликта; недостаточный, избыточный или устаревших запасов; снижение конечного потребителя спрос на наши продукты или услуги; вариабельность конечного потребителя смеси или ассортимента продукции; отсрочки, уменьшении или отмене заказов от конечных потребителей; стремительное развитие сетевого рынка; снижение информационных технологий и сетевой инфраструктуры расходы; неисполнение успешного продвижения новых товаров и услуг и выйти на смежные рынки; наша способность предвидеть технологические сдвиги и разрабатываем продукты для удовлетворения этих технологических сдвигов; острая конкуренция; расширение международных продаж и операций; инвестиций или приобретения других предприятий; сезонности; нашу способность привлекать новых крупных конечных заказчиков или продажи товаров и услуг существующим клиентам; способность к осознанию нашей компании и новых продуктов и услуг; проблемы с качеством продукта, наша способность оберегать, защищать и поддерживать наших прав на интеллектуальную собственность; уязвимостей в наших продуктах и отказа от нашей продукции для обнаружения брешей в защите наших прав на интеллектуальную собственность; и налогового, тарифного, ограничения на ввоз или вывоз; и других будущих событий. Дополнительные риски и неопределенности, которые могут повлиять на нас, можно найти в наших последних заявках в Комиссию по ценным бумагам и биржам, включая, но не ограничиваясь, наш годовой отчет по форме 10-K и квартальные отчеты по форме 10-Q. Вы можете найти эти отчеты на нашем веб-сайте по адресу https://investors.arista.com / и на веб-сайте SEC по адресу https://www.sec.gov /. Все прогнозные заявления в этом пресс-релизе основаны на информации, доступной компании на дату настоящего документа, и мы отказываемся от каких-либо обязательств публично обновлять или пересматривать любые прогнозные заявления, чтобы отразить события, которые происходят или обстоятельства, которые существуют после даты, на которую они были сделаны.
Финансовые показатели, Не относящиеся к ОПБУ
Этот пресс-релиз и прилагаемая таблица содержат определенные финансовые показатели, не относящиеся к GAAP, включая валовую прибыль, не относящуюся к GAAP, валовую прибыль, не относящуюся к GAAP, доход от операций, не относящийся к GAAP, операционную маржу, не относящуюся к GAAP, чистую прибыль, не относящуюся к GAAP, и разводненную чистую прибыль на акцию, не относящуюся к GAAP. Эти финансовые показатели, не относящиеся к GAAP, исключают расходы на компенсацию на основе акций, амортизацию нематериальных активов, связанных с приобретением, определенные единовременные платежи или льготы, а также влияние этих исключений, не относящихся к GAAP, на налог на прибыль. Кроме того, финансовые показатели, не относящиеся к GAAP, исключают чистые налоговые льготы, связанные с премиями, основанными на акциях, которые включают сверхнормативные налоговые льготы и другие отдельные косвенные эффекты таких премий. Компания использует эти финансовые показатели, не относящиеся к GAAP, внутри компании при анализе своих финансовых результатов и считает, что эти финансовые показатели, не относящиеся к GAAP, полезны инвесторам в качестве дополнительного инструмента для оценки текущих операционных результатов и тенденций. Кроме того, эти показатели являются основными показателями, которые руководство использует в качестве основы для своего планирования и прогнозирования на будущие периоды.
Финансовые показатели, не относящиеся к GAAP, не предназначены для рассмотрения изолированно или в качестве замены сопоставимых финансовых показателей GAAP. Финансовые показатели, не относящиеся к ОПБУ, имеют ограничения и должны рассматриваться только в сочетании с консолидированной финансовой отчетностью компании, подготовленной в соответствии с ОПБУ. Финансовые показатели, не относящиеся к GAAP, не имеют какого-либо стандартизированного значения и поэтому вряд ли будут сопоставимы с аналогичными показателями, представленными другими компаниями. Описание этих финансовых показателей, не относящихся к GAAP, и сверка финансовых показателей компании, не относящихся к GAAP, с их наиболее непосредственно сопоставимыми показателями GAAP, представлены в таблицах финансовой отчетности, включенных в этот пресс-релиз, и инвесторам рекомендуется ознакомиться с сверкой.
Руководство компании по финансовым показателям, не связанным с GAAP, исключает расходы на компенсацию на основе акций, амортизацию нематериальных активов, связанных с приобретением, и другие единовременные статьи. Компания не предоставляет рекомендаций по валовой марже по GAAP или операционной марже по GAAP или различным статьям согласования между валовой маржей по GAAP и операционной маржей по GAAP, а также валовой маржей, не относящейся к GAAP, и операционной маржей, не относящейся к GAAP. Сверка руководства по финансовым показателям, не относящимся к GAAP, с соответствующими показателями GAAP на перспективной основе недоступна, поскольку на компенсационные расходы на основе акций влияют будущие потребности компании в найме и удержании персонала, а также будущая справедливая рыночная стоимость обыкновенных акций компании, все из которых трудно оценить. прогнозируемый и подверженный постоянным изменениям. Фактическая сумма компенсационных расходов на основе акций окажет существенное влияние на валовую прибыль компании по GAAP и операционную прибыль по GAAP.
Об Arista Networks
Arista Networks - лидер отрасли в области управляемых данными клиентских облачных сетей для больших центров обработки данных, кампусов и сред маршрутизации. Отмеченные наградами платформы Arista обеспечивают доступность, гибкость, автоматизацию, аналитику и безопасность благодаря передовому сетевому операционному стеку. Для получения дополнительной информации посетите www.arista.com .
ARISTA, EOS и AVA входят в число зарегистрированных и незарегистрированных товарных знаков Arista Networks, Inc. в юрисдикциях по всему миру. Другие названия компаний или продуктов могут быть товарными знаками соответствующих владельцев.
Arista Networks, INC. Condensed Consolidated Statements of Operations (Unaudited in thousands, except per share amounts) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
2021 |
||
Revenue: |
|
|
|
|
||||
Product |
|
$ |
724,718 |
|
$ |
539,145 |
||
Service |
|
|
152,348 |
|
|
128,417 |
||
Total revenue |
|
|
877,066 |
|
|
667,562 |
||
Cost of revenue: |
|
|
|
|
||||
Product |
|
|
293,809 |
|
|
218,433 |
||
Service |
|
|
29,412 |
|
|
23,857 |
||
Total cost of revenue |
|
|
323,221 |
|
|
242,290 |
||
Gross profit |
|
|
553,845 |
|
|
425,272 |
||
Operating expenses: |
|
|
|
|
||||
Research and development |
|
|
172,006 |
|
|
132,487 |
||
Sales and marketing |
|
|
80,739 |
|
|
71,020 |
||
General and administrative |
|
|
23,113 |
|
|
15,473 |
||
Total operating expenses |
|
|
275,858 |
|
|
218,980 |
||
Income from operations |
|
|
277,987 |
|
|
206,292 |
||
Other income, net |
|
|
31,480 |
|
|
1,575 |
||
Income before income taxes |
|
|
309,467 |
|
|
207,867 |
||
Provision for income taxes |
|
|
37,208 |
|
|
27,501 |
||
Net income |
|
$ |
272,259 |
|
$ |
180,366 |
||
Net income per share (1): |
|
|
|
|
||||
Basic |
|
$ |
0.88 |
|
$ |
0.59 |
||
Diluted |
|
$ |
0.85 |
|
$ |
0.57 |
||
Weighted-average shares used in computing net income per share (1): |
|
|
|
|
||||
Basic |
|
|
308,045 |
|
|
305,224 |
||
Diluted |
|
|
319,652 |
|
|
318,492 |
||
(1) Prior period results have been adjusted to reflect the four-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 Financial Measures (Unaudited, in thousands, except percentages and per share amounts) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
GAAP gross profit |
|
$ |
553,845 |
|
|
$ |
425,272 |
|
GAAP gross margin |
|
|
63.1 |
% |
|
|
63.7 |
% |
Stock-based compensation expense |
|
|
1,309 |
|
|
|
1,400 |
|
Intangible asset amortization |
|
|
5,721 |
|
|
|
5,464 |
|
Non-GAAP gross profit |
|
$ |
560,875 |
|
|
$ |
432,136 |
|
Non-GAAP gross margin |
|
|
63.9 |
% |
|
|
64.7 |
% |
|
|
|
|
|
||||
GAAP income from operations |
|
$ |
277,987 |
|
|
$ |
206,292 |
|
Stock-based compensation expense |
|
|
50,279 |
|
|
|
37,553 |
|
Intangible asset amortization |
|
|
7,311 |
|
|
|
7,430 |
|
Non-GAAP income from operations |
|
$ |
335,577 |
|
|
$ |
251,275 |
|
Non-GAAP operating margin |
|
|
38.3 |
% |
|
|
37.6 |
% |
|
|
|
|
|
||||
GAAP net income |
|
$ |
272,259 |
|
|
$ |
180,366 |
|
Stock-based compensation expense |
|
|
50,279 |
|
|
|
37,553 |
|
Intangible asset amortization |
|
|
7,311 |
|
|
|
7,430 |
|
Unrealized gain on equity investments |
|
|
(28,497 |
) |
|
|
— |
|
Tax benefit on stock-based awards |
|
|
(30,964 |
) |
|
|
(20,906 |
) |
Income tax effect on non-GAAP exclusions |
|
|
(1,880 |
) |
|
|
(5,606 |
) |
Non-GAAP net income |
|
$ |
268,508 |
|
|
$ |
198,837 |
|
|
|
|
|
|
||||
GAAP diluted net income per share (1) |
|
$ |
0.85 |
|
|
$ |
0.57 |
|
Non-GAAP adjustments to net income |
|
|
(0.01 |
) |
|
|
0.05 |
|
Non-GAAP diluted net income per share |
|
$ |
0.84 |
|
|
$ |
0.62 |
|
|
|
|
|
|
||||
Weighted-average shares used in computing diluted net income per share (1) |
|
|
319,652 |
|
|
|
318,492 |
|
|
|
|
|
|
||||
Summary of Stock-Based Compensation Expense: |
|
|
|
|
||||
Cost of revenue |
|
$ |
1,309 |
|
|
$ |
1,400 |
|
Research and development |
|
|
27,576 |
|
|
|
21,982 |
|
Sales and marketing |
|
|
13,109 |
|
|
|
10,085 |
|
General and administrative |
|
|
8,285 |
|
|
|
4,086 |
|
Total |
|
$ |
50,279 |
|
|
$ |
37,553 |
|
(1) Prior period results have 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) |
||||||||
|
|
March 31, 2022 |
|
December 31, 2021 |
||||
ASSETS |
|
|
|
|
||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
635,025 |
|
|
$ |
620,813 |
|
Marketable securities |
|
|
2,788,889 |
|
|
|
2,787,502 |
|
Accounts receivable, net |
|
|
648,606 |
|
|
|
516,509 |
|
Inventories |
|
|
694,217 |
|
|
|
650,117 |
|
Prepaid expenses and other current assets |
|
|
338,437 |
|
|
|
237,735 |
|
Total current assets |
|
|
5,105,174 |
|
|
|
4,812,676 |
|
Property and equipment, net |
|
|
87,391 |
|
|
|
78,634 |
|
Acquisition-related intangible assets, net |
|
|
105,244 |
|
|
|
93,555 |
|
Goodwill |
|
|
216,915 |
|
|
|
188,397 |
|
Investments |
|
|
38,625 |
|
|
|
20,247 |
|
Operating lease right-of-use assets |
|
|
66,671 |
|
|
|
65,182 |
|
Deferred tax assets |
|
|
446,347 |
|
|
|
442,295 |
|
Other assets |
|
|
41,819 |
|
|
|
33,443 |
|
TOTAL ASSETS |
|
$ |
6,108,186 |
|
|
$ |
5,734,429 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
|
||||
Accounts payable |
|
$ |
204,675 |
|
|
$ |
202,636 |
|
Accrued liabilities |
|
|
197,063 |
|
|
|
226,643 |
|
Deferred revenue |
|
|
778,436 |
|
|
|
593,578 |
|
Other current liabilities |
|
|
188,831 |
|
|
|
86,972 |
|
Total current liabilities |
|
|
1,369,005 |
|
|
|
1,109,829 |
|
Income taxes payable |
|
|
74,497 |
|
|
|
69,916 |
|
Operating lease liabilities, non-current |
|
|
57,474 |
|
|
|
56,527 |
|
Deferred revenue, non-current |
|
|
345,310 |
|
|
|
335,734 |
|
Deferred tax liabilities, non-current |
|
|
51,051 |
|
|
|
129,074 |
|
Other long-term liabilities |
|
|
57,672 |
|
|
|
54,749 |
|
TOTAL LIABILITIES |
|
|
1,955,009 |
|
|
|
1,755,829 |
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
||||
Common stock |
|
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
1,590,793 |
|
|
|
1,530,046 |
|
Retained earnings |
|
|
2,592,854 |
|
|
|
2,456,823 |
|
Accumulated other comprehensive income (loss) |
|
|
(30,501 |
) |
|
|
(8,300 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
4,153,177 |
|
|
|
3,978,600 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
6,108,186 |
|
|
$ |
5,734,429 |
|
Arista Networks, INC. Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income |
|
$ |
272,259 |
|
|
$ |
180,366 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation, amortization and other |
|
|
13,091 |
|
|
|
12,658 |
|
Stock-based compensation |
|
|
50,279 |
|
|
|
37,553 |
|
Noncash lease expense |
|
|
4,532 |
|
|
|
4,243 |
|
Deferred income taxes |
|
|
(81,822 |
) |
|
|
1,425 |
|
Unrealized gain on equity investments |
|
|
(28,497 |
) |
|
|
— |
|
Amortization of investment premiums |
|
|
7,033 |
|
|
|
5,446 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable, net |
|
|
(131,861 |
) |
|
|
9,074 |
|
Inventories |
|
|
(43,531 |
) |
|
|
(3,500 |
) |
Prepaid expenses and other current assets |
|
|
(107,999 |
) |
|
|
(15,272 |
) |
Other assets |
|
|
(640 |
) |
|
|
(3,499 |
) |
Accounts payable |
|
|
2,478 |
|
|
|
2,833 |
|
Accrued liabilities |
|
|
(29,666 |
) |
|
|
(20,759 |
) |
Deferred revenue |
|
|
187,194 |
|
|
|
69,204 |
|
Income taxes payable |
|
|
106,992 |
|
|
|
(10,436 |
) |
Other liabilities |
|
|
(2,704 |
) |
|
|
(14,661 |
) |
Net cash provided by operating activities |
|
|
217,138 |
|
|
|
254,675 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Proceeds from maturities of marketable securities |
|
|
404,176 |
|
|
|
379,605 |
|
Purchases of marketable securities |
|
|
(412,614 |
) |
|
|
(590,476 |
) |
Business acquisitions, net of cash acquired |
|
|
(37,610 |
) |
|
|
18 |
|
Purchases of property and equipment |
|
|
(14,876 |
) |
|
|
(5,096 |
) |
Purchases of investments in privately-held companies |
|
|
(11,691 |
) |
|
|
(2,000 |
) |
Net cash used in investing activities |
|
|
(72,615 |
) |
|
|
(217,949 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from issuance of common stock under equity plans |
|
|
19,160 |
|
|
|
18,081 |
|
Tax withholding paid on behalf of employees for net share settlement |
|
|
(12,741 |
) |
|
|
(2,496 |
) |
Repurchase of common stock |
|
|
(136,228 |
) |
|
|
(101,355 |
) |
Net cash used in financing activities |
|
|
(129,809 |
) |
|
|
(85,770 |
) |
Effect of exchange rate changes |
|
|
(481 |
) |
|
|
(838 |
) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
14,233 |
|
|
|
(49,882 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period |
|
|
625,050 |
|
|
|
897,454 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period |
|
$ |
639,283 |
|
|
$ |
847,572 |
|