Q2 2024 Arista Networks Inc Earnings Call Transcript
Key Points
- Arista Networks Inc (ANET) reported a non-GAAP earnings per share of $2.10, showcasing strong financial performance.
- The company achieved a non-GAAP gross margin of 65.4%, driven by outstanding manufacturing disciplines and cost reductions.
- International revenue contribution was 19%, with the Americas contributing 81%, indicating strong performance in key markets.
- Arista Networks Inc (ANET) launched a rich portfolio of 800 gig products, enhancing its competitive edge in the AI and networking space.
- The company celebrated its 10th anniversary on the New York Stock Exchange and now supports over 10,000 customers with 100 million ports deployed worldwide.
- Operating expenses for the quarter were $319.8 million, up from $265 million last quarter, indicating increased costs.
- R&D spending increased to $216.7 million, reflecting higher new product introduction costs and increased headcount.
- International revenues decreased to 18.7% of total revenue, down from 20.1% in the prior quarter, driven by weaker performance in the APJ region.
- The company faces supply chain constraints and inflationary pressures, which could impact future financial performance.
- Deferred revenue balance increased significantly, indicating potential delays in revenue recognition and customer acceptance.
Please standby for streaming text.
Welcome to the second quarter. All participants are present a question and answer session. Instructions will be provided at that time. During the conference you need to reach an operator, please press star followed by zero. As a reminder, this conference is being recorded and will be available for replay from the Investor Relations section at the Arista website. Following this call, Ms. Liz Stein, Aristos Director of Investor Relations. You may begin.
Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me on today's call are Jayshree Ullal, Arista Networks, Chairperson and Chief Executive Officer, and Shantanu Geita, Arista's Chief Financial Officer. This afternoon, Arista Networks issued a press release announcing the results for its fiscal second quarter ending June 30th, 2024. If you would like a copy of this release, you can access it online at our website.
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