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Arista Networks (ANET)

Arista Networks is an industry leader in software-driven cloud networking solutions for large data center and campus environments. Arista's award-winning platforms deliver availability, agility, automation analytics and security through CloudVision® and Arista EOS®, an advanced network operating system.

Company profile

Ticker
ANET
Exchange
Website
CEO
Jayshree Ullal
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Arista Networks Australia Pty Ltd • Arista Networks Austria GmbH • Arista Networks Canada Ltd. • Arista Networks ULC • Arista Networks (Shanghai) Co., Ltd. • Arista Networks Cyprus Ltd • Arista Networks GmbH • Arista Networks Hong Kong Limited • Arista Networks India Private Limited • Mojo Networks Private Limited ...

ANET stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

1 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 497.5M 497.5M 497.5M 497.5M 497.5M 497.5M
Cash burn (monthly) 47.26M 33.37M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 144.5M 102.03M n/a n/a n/a n/a
Cash remaining 353M 395.48M n/a n/a n/a n/a
Runway (months of cash) 7.5 11.9 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S Yes Yes 126.5 100 12.65K 258,100
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S Yes Yes 125.9029 700 88.13K 258,200
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S Yes Yes 124.737 2,700 336.79K 258,900
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S Yes Yes 126.2713 1,726 217.94K 401,308
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S Yes Yes 125.2383 4,729 592.25K 403,034
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S Yes Yes 124.703 9,545 1.19M 407,763
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S No Yes 126.2713 2,157 272.37K 3,244
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S No Yes 125.2383 5,912 740.41K 5,401
12 Sep 22 Duda Kenneth Common Stock Sell Dispose S No Yes 124.703 11,931 1.49M 11,313
12 Sep 22 Duda Kenneth Common Stock Option exercise Acquire M No Yes 7.6675 20,000 153.35K 23,244
13F holders Current Prev Q Change
Total holders 741 769 -3.6%
Opened positions 96 104 -7.7%
Closed positions 124 88 +40.9%
Increased positions 265 275 -3.6%
Reduced positions 263 262 +0.4%
13F shares Current Prev Q Change
Total value 19.8B 28.66B -30.9%
Total shares 204.77M 206.06M -0.6%
Total puts 889.9K 1.47M -39.6%
Total calls 1.61M 2.07M -22.5%
Total put/call ratio 0.6 0.7 -22.1%
Largest owners Shares Value Change
Vanguard 25.74M $2.41B +1.9%
BLK Blackrock 17.7M $1.66B +1.9%
2010 David R Cheriton Irrevocable Trust dtd July 28, 2010 11.96M $1.72B 0.0%
Alliancebernstein 10.55M $989.25M +12.3%
STT State Street 8.66M $812M -1.1%
Capital World Investors 7.6M $712.24M +0.0%
Wellington Management 6.37M $597.07M -3.0%
Artisan Partners Limited Partnership 5.72M $536.65M +10.7%
Geode Capital Management 4.52M $423.4M +3.6%
Capital Research Global Investors 4.49M $421.27M +0.0%
Largest transactions Shares Bought/sold Change
Whale Rock Capital Management 0 -2.28M EXIT
Alliancebernstein 10.55M +1.16M +12.3%
MS Morgan Stanley 2.16M +963.7K +80.3%
Parametric Portfolio Associates 0 -830.34K EXIT
Qube Research & Technologies 712.06K +712.06K NEW
FMR 3.88M -710.83K -15.5%
Renaissance Technologies 785.09K +672.29K +596.0%
Millennium Management 1.06M +651.35K +158.2%
TROW T. Rowe Price 937.88K +610.95K +186.9%
Epoch Investment Partners 452.44K -591.4K -56.7%

Financial report summary

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Risks
  • Interruptions or delays in shipments could cause our revenue for the applicable period to fall below expected levels.
  • Because some of the components in our products come from sole or limited sources of supply, we have increased our purchase commitments and are susceptible to supply shortages, extended lead times or supply changes, which could disrupt or delay our scheduled product deliveries to our end customers and may result in the loss of sales and end customers.
  • Adverse economic conditions or reduced information technology and network infrastructure spending may adversely affect our business, financial condition, results of operations and prospects.
  • The COVID-19 pandemic, which has led, among other things, to manufacturing disruptions, prolonged supply chain shortages, increased component and supply chain costs and unpredictable product demand and supply, extended demand planning horizons and increased purchase commitments, could materially adversely affect our business, financial condition, results of operations and prospects.
  • We expect large purchases by a limited number of end customers to continue to represent a substantial portion of our revenue, and any loss, delay, decline or other change in expected purchases could result in material quarter-to-quarter fluctuations of our revenue or otherwise adversely affect our results of operations.
  • The networking market is rapidly evolving. If this market does not evolve as we anticipate or our target end customers do not adopt our networking solutions, we may not be able to compete effectively, and our ability to generate revenue will suffer.
  • We pursue new product and service offerings and expand into adjacent markets, and if we fail to successfully carry out these initiatives, our business, financial condition, or results of operations could be adversely impacted.
  • Our revenue and our revenue growth rates are volatile and may decline.
  • Our results of operations may vary significantly from period to period and be unpredictable and if we fail to meet the expectations of analysts or investors or our previously issued financial guidance, or if any forward-looking financial guidance does not meet the expectation of analysts or investors, the market price of our common stock could decline substantially.
  • We expect our gross margins to vary over time and may be adversely affected by numerous factors.
  • We face intense competition, especially from larger, well-established companies and industry consolidation may lead to further increased competition, which may harm our business, financial condition, results of operations and prospects.
  • We are subject to a number of risks associated with the expansion of our international sales and operations.
  • We have invested and may continue to invest in or acquire other businesses which could require significant management attention, disrupt our business, dilute stockholder value and adversely affect our business, financial condition, results of operations and prospects.
  • Seasonality may cause fluctuations in our revenue and results of operations.
  • We are exposed to fluctuations in currency exchange rates, which could adversely affect our business, financial condition, results of operations and prospects.
  • If we needed to raise additional capital to expand our operations, invest in new products or for other corporate purposes, our failure to do so on favorable terms could reduce our ability to compete and could harm our business, financial condition, results of operations and prospects.
  • If we are unable to attract new large end customers or to sell additional products and services to our existing end customers, our revenue growth will be adversely affected and our revenue could decrease.
  • If we are unable to increase market awareness of our company and our new products and services, our revenue may not continue to grow or may decline.
  • Some of our large end customers require more favorable terms and conditions from their vendors and may request price concessions. As we seek to sell more products to these end customers, we may be required to agree to terms and conditions that may have an adverse effect on our business or ability to recognize revenue.
  • Sales of our switches generate most of our product revenue, and if we are unable to continue to grow sales of these products, our business, financial condition, results of operations and prospects will suffer.
  • The sales prices of our products and services may decrease, which may reduce our gross profits and adversely affect our results of operations.
  • Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense. As a result, our sales and revenue are difficult to predict and may vary substantially from period to period, which may cause our results of operations to fluctuate significantly.
  • Our ability to sell our products is highly dependent on the quality of our support and services offerings, and our failure to offer high-quality support and services could have a material adverse effect on our business, financial condition, results of operations and prospects.
  • Our business depends on end customers renewing their maintenance and support contracts. Any decline in maintenance renewals could harm our future business, financial condition, results of operations and prospects.
  • Our standard sales contracts contain indemnification provisions requiring us to defend our end customers against third-party claims, including against infringement of certain intellectual property rights that could expose us to losses which could seriously harm our business, financial conditions, results of operations and prospects.
  • In addition to our own direct sales force, we rely on distributors, systems integrators and value-added resellers to sell our products, and our failure to effectively develop, manage or prevent disruptions to our distribution channels and the processes and procedures that support them could cause a reduction in the number of end customers of our products.
  • A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks.
  • Product quality problems, defects, errors or vulnerabilities in our products or services could harm our reputation and adversely affect our business, financial condition, results of operations and prospects.
  • If we do not successfully anticipate technological shifts and develop products and product enhancements that meet those technological shifts, if those products are not made available in a timely manner or do not gain market acceptance, or if we do not successfully manage product introductions, we may not be able to compete effectively, and our ability to generate revenue will suffer.
  • Our products must interoperate with operating systems, software applications and hardware that is developed by others, and if we are unable to devote the necessary resources to ensure that our products interoperate with such software and hardware, we may lose or fail to increase market share and experience a weakening demand for our products.
  • Managing the supply of our products and product components is complex. Insufficient component supply and inventory may result in lost sales opportunities or delayed revenue, while excess inventory may harm our gross margins.
  • Because we depend on third-party manufacturers to build our products, we are susceptible to manufacturing delays and pricing fluctuations that could prevent us from shipping end-customer orders on time, if at all, or on a cost-effective basis, which may result in the loss of sales and end customers.
  • We base our inventory requirements on our forecasts of future sales. If these forecasts are materially inaccurate, we may procure inventory that we may be unable to use in a timely manner or at all.
  • Assertions by third parties of infringement or other violations by us of their intellectual property rights, or other lawsuits asserted against us, could result in significant costs and substantially harm our business, financial condition, results of operations and prospects.
  • If we are unable to protect our intellectual property rights, our competitive position could be harmed or we could be required to incur significant expenses to enforce our rights.
  • We rely on the availability of licenses to third-party software and other intellectual property.
  • We provide access to our software and other selected source code to certain partners, which creates additional risk that our competitors could develop products that are similar to or better than ours.
  • We may become involved in litigation that may materially adversely affect us.
  • Defects, errors or vulnerabilities in our products, the failure of our products to detect security breaches or incidents, the misuse of our products or the risks of product liability could harm our reputation and adversely impact our operating results.
  • Breaches of our cybersecurity systems, or other security breaches or incidents with respect to our products, services, networks, systems, or data, could degrade our ability to conduct our business operations and deliver products and services to our customers, delay our ability to recognize revenue, compromise the integrity of our software products and our networks, systems, and data, result in significant data losses and the theft of our intellectual property, damage our reputation, expose us to liability to third parties and require us to incur significant additional costs to maintain the security of our networks and data.
  • If we fail to maintain effective internal control over financial reporting in the future, the accuracy and timing of our financial reporting may be adversely affected.
  • If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect or if there is a change in accounting principles, our results of operations could fall below expectations of securities analysts and investors, resulting in a decline in the market price of our common stock.
  • Enhanced United States tax, tariff, import/export restrictions, Chinese regulations or other trade barriers may have a negative effect on global economic conditions, financial markets and our business.
  • Changes in our income taxes or our effective tax rate, enactment of new tax laws or changes in the application of existing tax laws of various jurisdictions or adverse outcomes resulting from examination of our income tax returns could adversely affect our results.
  • Failure to comply with governmental laws and regulations could harm our business, financial condition, results of operations and prospects.
  • We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate these controls.
  • We have adopted stock repurchase programs to repurchase shares of our common stock; however, any future decisions to reduce or discontinue repurchasing our common stock pursuant to our stock repurchase programs could cause the market price for our common stock to decline.
  • Sales of substantial amounts of our common stock in the public markets, or the perception that such sales might occur, could reduce the market price that our common stock might otherwise attain and may dilute your voting power and your ownership interest in us.
  • Insiders have substantial control over us, which could limit your ability to influence the outcome of key transactions, including a change of control.
  • Our charter documents and Delaware law could discourage takeover attempts and lead to management entrenchment.
  • If we are unable to hire, retain, train and motivate qualified personnel and senior management, our business, financial condition, results of operations and prospects could suffer.
  • Our business is subject to the risks of earthquakes, fire, power outages, floods, health epidemics and other catastrophic events and to interruption by man-made problems such as terrorism and war.
  • We have not paid dividends in the past and do not intend to pay dividends for the foreseeable future.
Management Discussion
  •     Product revenue primarily consists of sales of our switching and routing products, and software licenses. Service revenue is primarily derived from sales of PCS contracts, which are typically purchased in conjunction with our products, and subsequent renewals of those contracts. We expect our revenue may vary from period to period based on, among other things, the timing, size, and complexity of orders, especially with respect to our large end customers.
  •     Product revenue increased $319.3 million, or 56.4%, and $504.9 million, or 45.7%, for the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021. These increases reflect strong demand for our switching and routing platforms from across our customer base, including healthy contributions from our large cloud customers. Supply chain constraints continued to impact our revenue performance in these periods and while changes in product deferred revenue impacted the timing of revenue recognition on a quarterly basis, it was not a net contributor to revenue growth for the six-month period ended June 30, 2022. In addition, service revenue increased $25.2 million, or 17.9%, and $49.2 million, or 18.3%, in the three and six months ended June 30, 2022, compared to the same periods in 2021, as a result of continued growth in initial and renewal support contracts as our customer installed base has continued to expand. International revenues represented 19.6% and 21.7% of total revenues in the three and six months ended June 30, 2022, respectively, decreasing from 27.3% and 26.1% for the same periods in the prior year, which was primarily driven by increased purchases from large global customers in our Americas region. We continued to experience competitive pricing pressure on our products and services.
  •     Cost of product revenue primarily consists of amounts paid for inventory to our third-party contract manufacturers and merchant silicon vendors, overhead costs of our manufacturing operations, including freight, and other costs associated with manufacturing our products and managing our inventory and supply chain. Cost of service revenue primarily consists of personnel and other costs associated with our global customer support and services organizations.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. senior Avg
New words: consulting, contributor, elevated, fifteen, gradually, healthy, inter, method, outlined, pattern, resolution, retention, stayed
Removed: added, coupled, globe, home, jurisdictional, Malaysia, mitigation, prioritized, real, realize, restriction, situation, spread, Union, varying, vast, withdrawal

Patents

Utility
Time Offset Determination without Synchronization
29 Sep 22
A method and system for the post-adjustment (i.e., offline) of event timestamps to implement virtual time synchronization amongst detection node clocks.
Utility
Network Device Supporting Multiple Operating Systems to Enable Optimized Use of Network Device Hardware
29 Sep 22
A method for managing a network device that includes a network operating system (NOS) and a third-party network operating system (3PNOS) includes detecting a 3PNOS state change in a 3PNOS database managed by the 3PNOS, translating the 3PNOS state change into a network device state change, storing the network device state change in a state database managed by the NOS, in response to the storing: detecting a change in the state database by a NOS agent executing in the NOS, initiating, in response to detecting the change in the state database, an update to hardware on the network device by the NOS, wherein the 3PNOS does not directly manage the hardware.
Utility
System and Method for Scalable and Accurate Flow Rate Measurement
29 Sep 22
Inventors: Rajshekhar Biradar
Utility
Quantifying performance of a connection by monitoring duplicate acknowledgement numbers
27 Sep 22
In some embodiments, a method receives a first acknowledgement message that acknowledges receipt of a first packet and determines whether the first acknowledgement message is a duplicate of a previous acknowledgement message that was sent previous to the first acknowledgement message.
Utility
Packet Recirculation for Tunneling Encapsulation
22 Sep 22
Techniques for operating a network device for multiple packet encapsulation for different tunnels are provided.