The company said gross margin changed from 60.6% to 64.9% for the 3 months ended June 30, 2024, and from 60.1% to 64.3% for the 6 months. It said the change reflects improved product margins from lower net excess/obsolete inventory and supplier liability charges.

1. 01

   The company said gross margin changed from 60.6% to 64.9% for the 3 months ended June 30, 2024, and from 60.1% to 64.3% for the 6 months. It said the change reflects improved product margins from lower net excess/obsolete inventory and supplier liability charges.

2. 02

   Arista Networks said product revenue rose $161.7 million (12.8%) and service revenue rose $69.7 million (35.3%) for the 3 months ended June 30, 2024, compared with the same period a year earlier. The company cited higher demand and shipments of its switching and routing platforms as the driver of product revenue growth, and growth in support contracts as the driver of service revenue growth.

3. 03

   The company said cash provided by operating activities was $1.5 billion for the 6 months ended June 30, 2024, including net income of $1.3 billion and a net decrease in working capital requirements of $259.1 million. It cited an increase in deferred revenue of $612.6 million as the main item behind the decrease in working capital requirements.

4. 04

   Arista Networks said the Prior Repurchase Program was completed in April 2024, and the New Repurchase Program allows for repurchases of an additional $1.2 billion through May 2027. The company said the remaining authorized amount under the New Repurchase Program as of June 30, 2024 was $1.1 billion.

Key figures

Quarter ended June 30, 2024

Revenue

$1.7B

Operating income

$700M

Net income

$665M

EPS

$2.08

Gross profit

$1.1B

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.