Arista Reports $563.3M Q3 Revenue Up 28.7% YoY
SANTA CLARA, Calif. -- Arista Networks, Inc., an industry leader in software-driven, cognitive cloud networking for large-scale datacenter and campus environments, today announced financial results for its third quarter ended September 30, 2018.
Third Quarter Financial Highlights
- Revenue of $563.3 million, an increase of 8.4% compared to the second quarter of 2018, and an increase of 28.7% from the third quarter of 2017.
- GAAP gross margin of 64.2%, compared to GAAP gross margin of 64.2% in the second quarter of 2018 and 64.1% in the third quarter of 2017.
- Non-GAAP gross margin of 64.6%, compared to non-GAAP gross margin of 64.5% in the second quarter of 2018 and 64.4% in the third quarter of 2017.
- GAAP net income of $168.5 million, or $2.08 per diluted share, compared to GAAP net income of $133.7 million, or $1.68 per diluted share, in the third quarter of 2017.
- Non-GAAP net income of $171.3 million, or $2.11 per diluted share, compared to non-GAAP net income of $128.2 million, or $1.62 per diluted share, in the third quarter of 2017.
"As Arista completes its first decade of customer shipments, I am proud of the many milestones we have achieved. These include our entry into the prestigious S&P 500, cumulative shipments of more than 20 million cloud networking ports and another quarter of record earnings in Q3 2018," stated Jayshree Ullal, Arista President and CEO.
Commenting on the company's financial results, Ita Brennan, Arista's CFO, said, "The business continued to execute well across key financial metrics in the quarter, with continued healthy revenue growth and earnings expansion."
For the fourth quarter of 2018, we expect:
- Revenue between $582 and $594 million
- Non-GAAP gross margin between 63% to 65%, and
- Non-GAAP operating margin of approximately 35%
Guidance for non-GAAP financial measures excludes estimated legal expenses of approximately $1 million associated with the OptumSoft litigation, stock-based compensation expense, amortization of acquisition-related intangible assets, and other 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).