The company said product revenue rose $238.3 million (18.5%) and service revenue rose $63.2 million (28.2%) for the 3 months ended September 30, 2024. For the 9-month period, product revenue rose $556.7 million (15.0%) and service revenue rose $196.2 million (32.7%).

1. 01

   The company said product revenue rose $238.3 million (18.5%) and service revenue rose $63.2 million (28.2%) for the 3 months ended September 30, 2024. For the 9-month period, product revenue rose $556.7 million (15.0%) and service revenue rose $196.2 million (32.7%).

2. 02

   Arista Networks said gross margin rose from 62.4% to 64.2% over the 3 months and from 60.9% to 64.3% over the 9 months. The company cited a reduction in net excess and obsolete inventory and supplier liability charges of $40.3 million over the 3 months and $111.4 million over the 9 months as the main driver of the improvement in product margins.

3. 03

   The company said cash provided by operating activities was $2.7 billion for the 9 months ended September 30, 2024, consisting of net income of $2.1 billion and a net decrease in working capital requirements of $744.3 million, partially offset by non-cash adjustments to net income of $118.1 million. Deferred revenue increased by $1,001.1 million.

4. 04

   Arista Networks said its cash, cash equivalents and marketable securities totaled approximately $7.4 billion as of September 30, 2024, of which approximately $1.1 billion was held at foreign subsidiaries. It said its purchase obligations were $2.4 billion on the same date, of which $2.0 billion is expected to be received within 1 years.

Key figures

Quarter ended September 30, 2024

Revenue

$1.8B

Operating income

$785M

Net income

$748M

EPS

$2.33

Gross profit

$1.2B

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.