Arista Networks, Inc. (NYSE: ANET), an industry leader in software-driven, cognitive cloud networking for large-scale datacenter and campus environments, today announced financial results for its third quarter ended September 30, 2018.
Third Quarter Financial Highlights
- Revenue of $563.3 million, an increase of 8.4% compared to the second quarter of 2018, and an increase of 28.7% from the third quarter of 2017.
- GAAP gross margin of 64.2%, compared to GAAP gross margin of 64.2% in the second quarter of 2018 and 64.1% in the third quarter of 2017.
- Non-GAAP gross margin of 64.6%, compared to non-GAAP gross margin of 64.5% in the second quarter of 2018 and 64.4% in the third quarter of 2017.
- GAAP net income of $168.5 million, or $2.08 per diluted share, compared to GAAP net income of $133.7 million, or $1.68 per diluted share, in the third quarter of 2017.
- Non-GAAP net income of $171.3 million, or $2.11 per diluted share, compared to non-GAAP net income of $128.2 million, or $1.62 per diluted share, in the third quarter of 2017.
Company Highlights
- Arista completes its first two acquisitions, Mojo Networks for Cloud Networking Expansion, and MetaMako, a leader in low-latency FPGA-enabled network solutions
- Arista Introduces 400 Gigabit Platforms, addressing growing bandwidth demands of cloud networks
- Arista Extends Hybrid Cloud Networking Solution for Microsoft Azure Stack
- Arista ranked #8 on the Fortune 100 Fastest Growing Companies 2018
- Arista completes its first decade of customer shipments
Financial Outlook
For the fourth quarter of 2018, we expect:
- Revenue between $582 and $594 million
- Non-GAAP gross margin between 63% to 65%, and
- Non-GAAP operating margin of approximately 35%
Guidance for non-GAAP financial measures excludes estimated legal expenses of approximately $1 million associated with the OptumSoft litigation, stock-based compensation expense, amortization of acquisition-related intangible assets, and other non-recurring items.
