Business

Arista Networks, Inc. Reports Fourth Quarter and Year End 2024 Financial Results

Published February 19, 2025

SANTA CLARA, Calif. – Arista Networks, Inc. (NYSE: ANET), a leader in data-driven networking that connects clients to the cloud, has released its financial results for the fourth quarter and the full year ended December 31, 2024.

Jayshree Ullal, the Chairperson and CEO of Arista Networks, remarked, "2024 was a remarkable year, marked by substantial momentum, resulting in record revenue of $7 billion. I am immensely proud of our team's ability to deliver exceptional growth and profitability. Our continued innovation has provided our customers with top-notch platforms that serve both AI networking needs and AI capabilities for networking."

Full Year Financial Highlights

Revenue: $7.003 billion, a 19.5% increase compared to 2023.
GAAP Gross Margin: 64.1%, up from 61.9% in 2023.
Non-GAAP Gross Margin: 64.6%, up from 62.6% in 2023.
GAAP Net Income: $2.852 billion or $2.23 per diluted share; in 2023, it was $2.087 billion or $1.65 per diluted share.
Non-GAAP Net Income: $2.910 billion or $2.27 per diluted share; up from $2.199 billion or $1.73 per diluted share in 2023.

Fourth Quarter Financial Highlights

Revenue: $1.930 billion, reflecting a 6.6% increase from the third quarter and 25.3% from Q4 2023.
GAAP Gross Margin: 63.8%, slightly down from 64.2% in Q3 2024.
Non-GAAP Gross Margin: 64.2%, compared to 64.6% in Q3 2024.
GAAP Net Income: $801.0 million or $0.62 per diluted share, up from $613.6 million or $0.48 per diluted share in Q4 2023.
Non-GAAP Net Income: $830.1 million or $0.65 per diluted share, compared to $664.3 million or $0.52 per diluted share in Q4 2023.

Chantelle Breithaupt, the CFO of Arista, commented on the strong financial performance, stating, "In Q4, we exceeded our guidance across all key metrics, with operating cash flow growing more than 95% year-over-year. This positions us to invest in strategic initiatives across the AI and Campus markets, while our strong balance sheet aids us in managing economic uncertainties."

Fourth Quarter Company Highlights

Partnership with Meta: Arista announced that Meta is utilizing the Arista 7700R4 Distributed Etherlink™ Switch (DES) for a new AI cluster.
Modern Stacking for Campus Networks: Arista introduced the Switch Aggregation Group (SWAG™) capability, enabling individual switches to be managed through a single IP address.
Collaboration with Arizona State University: Alongside ASU, Arista co-created a Technical Upskilling Program for Afghan refugee students.
Stock Split Announcement: Arista executed a four-for-one stock split on December 4, 2024, increasing accessibility for shareholders.

Full Year Company Highlights

Launch of Etherlink AI Networking Platforms: These platforms support extensive AI cluster configurations and offer improved performance.
AI Solutions with NVIDIA: Collaboration with NVIDIA led to the development of the Arista EOS AI Agent, which integrates compute and networking domains for efficient task completion.
Wi-Fi 7 Access Points Release: The new Arista C-460 access points address modern demands for high bandwidth applications.
Advancements in Zero Trust Networking: Arista updated its Multi-Domain Segmentation Service to enhance security without requiring endpoint agents.
Universal Network Observability Launch: Arista introduced CloudVision Universal Network Observability™ (CV UNO™) to enhance network visibility and performance insights.
Alabama Fiber Network Collaboration: Arista was selected to provide routing and switching equipment for an initiative aimed at improving internet access in rural Alabama.
20th Anniversary Celebration: Arista marked 20 years since its founding and celebrated 10 years since its IPO, reaching over 10,000 global customers with substantial market share in data center switching.

Financial Outlook

Looking ahead to Q1 2025, Arista anticipates:

Revenue between $1.93 billion and $1.97 billion.
Non-GAAP gross margin of approximately 63%.
Non-GAAP operating margin close to 44%.

Conference Call Information

Arista executives will review the fourth quarter and year-end financial results on a conference call today at 1:30 p.m. Pacific time. Interested parties can dial (888) 330-2502 in the U.S. or +1 (240) 789-2713 internationally. The conference ID for the call is 5655862. Additionally, a live webcast will be available on Arista's investor relations website.

Forward-Looking Statements

This press release contains forward-looking statements related to future performance, including estimated revenue and gross margins for upcoming quarters. These statements involve risks and uncertainties that could affect actual results. Key risks include fluctuations in customer demand, economic conditions, and competition in the networking market.

About Arista Networks

Arista Networks specializes in data-driven, client-to-cloud networking for data centers, campuses, and routing environments, delivering solutions that enhance availability, automation, and security.

financial, results, AI, growth, networking