Arista Reports 65% Year-On-Year Sales Growth
SANTA CLARA, Calif. -- Arista Networks, Inc. (NYSE: ANET), an industry leader in software-driven cloud networking solutions for large data center and computing environments, today announced financial results for its second quarter ended June 30, 2014.
Second Quarter Financial Highlights
- Revenue of $137.9 million, an increase of 65.2% compared to the second quarter of 2013, and an increase of 17.7% from the first quarter of 2014.
- GAAP gross margin of 67.7%, compared to GAAP gross margin of 64.6% in the second quarter of 2013 and 69.4% in the first quarter of 2014.
- GAAP net income of $21.6 million, or $0.34 per diluted share, compared to GAAP net income of $10.3 million, or $0.18 per diluted share, in the second quarter of 20131.
- Non-GAAP net income of $23.7 million, or $0.35 per diluted share, compared to non-GAAP net income of $12.3 million, or $0.20 per diluted share, in the second quarter of 2013.
GAAP diluted per share amounts exclude net income attributable to preferred shareholders through the date of the initial public offering (IPO) on June 6, 2014, and exclude the impact of the full weighting of the additional common shares outstanding in connection with the IPO.
“I’m pleased with our performance in Q2 2014 as we increased to 2,700 customers this quarter,” stated Jayshree Ullal, Arista President and CEO. “We saw good balance across our top four verticals, as customers adopted our new Arista 7000 Spine and Spline products for cloud networking innovation and reduced total cost of ownership (TCO).”
Commenting on the company's financial results, Kelyn Brannon, CFO of Arista Networks, said, "Our non-GAAP net income rose by 92.5% in the second quarter, compared with the same quarter of the prior year. We also saw solid revenue growth while maintaining our gross margin and operating margin. During Q2, we also generated cash flow from operations of $46.3 million and we ended the quarter with approximately $397.2 million in cash and cash equivalents, including net proceeds of $238.7 million from our IPO in June 2014."
- Demonstrated continued strategic relationships and alliances to further industry-wide open standards via:
- 25/50 GbE alliance consortium with Google, Microsoft, Broadcom and Mellanox
- Puppet Supported Program Certification for server automation
- AVnu Alliance for Audio Video Bridging (AVB) certification
- Introduced the industry’s first leaf switch with 100GbE uplinks for use in high performance storage and streaming content applications, the Arista 7280.
- Introduced the industry’s first universal 40GbE optic for both multimode and single mode fiber.
- Introduced advanced EOS capabilities with SSU (Smart System Upgrade) and Arista 7500-based DANZ (Data AnalyZer) network visibility tools and OpenFlow 1.3 support.
In addition, President and CEO Jayshree Ullal will be speaking at the Pacific Crest Global Tech Leadership Conference with the financial community on Monday, August 11, 2014 at 4:30pm PT. A live audio webcast of the event will be accessible from the "Investors" section of Arista Networks website at investors.arista.com.
For the third quarter of 2014, we expect:
- Revenue between $142 and $150 million.
- Non-GAAP gross margin in the range of 64% to 66% and non-GAAP operating margin in the range of 19% to 22%.
- GAAP gross margin in the range of 64% to 66% and GAAP operating margin in the range of 13% to 17%, both of which include stock-based compensation expense.