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Arista Networks, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $1,810,936,000 from $1,509,456,000 in the same quarter the previous year. This increase is attributed to higher shipments and strong contributions from large cloud and enterprise customers.
Product revenue increased by 18.5% to $1,523,807,000, while service revenue rose by 28.2% to $287,129,000, reflecting growth in initial and renewal support contracts.
Cost of revenue for the quarter was $649,219,000, representing 36% of sales, compared to 38% in the same quarter of the previous year. This decrease in cost ratio is due to reductions in net excess/obsolete inventory and supplier liability charges.
The company reported a gross profit of $1,161,717,000 for the quarter, compared to $942,419,000 in the previous year, with the improvement driven largely by reduced inventory charges.
Research and development expenses increased to $235,824,000 from $212,353,000, due to headcount growth.
Sales and marketing expenses were $106,832,000, up from $102,033,000, while general and administrative expenses rose to $33,811,000 from $25,338,000.
Net income for the quarter was $747,938,000, up from $545,327,000 in the previous year. Basic net income per share was $2.38, compared to $1.76 in the previous year.
Cash provided by operating activities was $2,677,272,000, while cash used in investing and financing activities was $1,147,413,000 and $291,774,000, respectively.
Arista had a working capital of $10,877,940,000 as of September 30, 2024. The company continues to focus on expanding its market presence and investing in research and development.
The filing also details various financial agreements and stock repurchase programs, including a new $1.2 billion stock repurchase program authorized in May 2024.
Arista does not anticipate cash dividend payments to common stockholders in the near future.
The company announced a four-for-one forward stock split, effective December 4, 2024, to make its common stock more accessible to a broader base of investors.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Arista Networks Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.