Full-year 2017 revenue up 45.8% to $1.6B, as the company implements its vision for software-driven cloud networking.

February 15, 2018

2 Min Read

SANTA CLARA, Calif. -- Arista Networks, Inc., an industry leader in software-driven cloud networking solutions for large datacenter and computing environments, today announced financial results for its fourth quarter and year ended December 31, 2017.

Fourth Quarter Financial Highlights

  • Revenue of $467.9 million, an increase of 6.9% compared to the third quarter of 2017, and an increase of 42.7% from the fourth quarter of 2016.

  • GAAP gross margin of 65.7%, compared to GAAP gross margin of 64.1% in the third quarter of 2017 and 64.1% in the fourth quarter of 2016.

  • Non-GAAP gross margin of 65.9%, compared to non-GAAP gross margin of 64.4% in the third quarter of 2017 and 64.4% in the fourth quarter of 2016.

  • GAAP net income of $103.8 million, or $1.29 per diluted share, compared to GAAP net income of $58.8 million, or $0.79 per diluted share, in the fourth quarter of 2016.

  • Non-GAAP net income of $137.3 million, or $1.71 per diluted share, compared to non-GAAP net income of $77.5 million, or $1.04 per diluted share, in the fourth quarter of 2016.

Full Year Financial Highlights

  • Revenue of $1.6 billion, an increase of 45.8% compared to fiscal year 2016.

  • GAAP gross margin of 64.5%, compared to GAAP gross margin of 64.0% in fiscal year 2016.

  • Non-GAAP gross margin of 64.8%, compared to non-GAAP gross margin of 64.4% in fiscal year 2016.

  • GAAP net income of $423.2 million, or $5.35 per diluted share, compared to GAAP net income of $184.2 million, or $2.50 per diluted share, in fiscal year 2016.

  • Non-GAAP net income of $442.8 million, or $5.61 per diluted share, compared to non-GAAP net income of $241.4 million, or $3.30 per diluted share, in fiscal year 2016.

"2017 represents a market tipping point with Arista's disruptive software-driven architecture gaining mainstream acceptance as we surpassed 15 million cumulative ports of cloud networking," stated Jayshree Ullal, Arista President and CEO.

Commenting on the company's financial results, Ita Brennan, Arista's CFO, said, "We are pleased with the strong execution underlying our 2017 financial performance with 46% revenue growth and 70% growth in non-GAAP EPS on a year-over-year basis."

Financial Outlook

For the first quarter of 2018, we expect:

  • Revenue between $450 and $468 million.

  • Non-GAAP gross margin between 63% to 65%, and

  • Non-GAAP operating margin of approximately 32%

Guidance for non-GAAP financial measures excludes estimated legal expenses of approximately $8 million associated with the Cisco and OptumSoft litigation, stock-based compensation expense, and other non-recurring items. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.

Arista Networks Inc.

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