Thursday, February 13, 2020

Arista's Q4 revenue dips to $552.5M, down 7% yoy

Arista Networks reported Q4 2019 revenue of $552.5 million, a decrease of 15.6% compared to the third quarter of 2019, and a decrease of 7.2% from the fourth quarter of 2018.

GAAP gross margin was 64.5%, compared to GAAP gross margin of 63.8% in the third quarter of 2019 and 62.9% in the fourth quarter of 2018. GAAP net income amounted to $260.7 million, or $3.25 per diluted share, compared to GAAP net income of $170.3 million, or $2.10 per diluted share in the fourth quarter of 2018. Non-GAAP net income was $183.4 million, or $2.29 per diluted share, compared to non-GAAP net income of $182.2 million, or $2.25 per diluted share in the fourth quarter of 2018.

“Despite the volatility of cloud spend, 2019 marked the entry of Arista in the campus and mainstream enterprise. Our cloud networking technology is being accepted in thousands of diverse enterprise customers. We are excited by our prospects in 2020 and committed to a multi-year foundation of growth, innovation and profitability,” stated Jayshree Ullal, Arista’s President and CEO.

On a conference call, Arista executives disclosed:

  • Cloud titans remain the largest vertical with Microsoft at 23% of total revenue and Facebook at 16.6%.
  • 2019 international contribution was 24% with the Americas at 76%. 
  • the acquisition of Big Switch added approximately 300 customers and 75 employees, mostly in engineering. Arista and Dell will continue to partner to deliver cloud fabric and observability capabilities. The acquisition price was not disclosed but Arista said the figure was not material.
https://s21.q4cdn.com/861911615/files/doc_presentations/2020/2019-Highlights-Q4.pdf



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