The earnings call reflects a positive outlook for Arista Networks, driven by record revenue, strong growth in cloud and AI segments, and leadership in high-speed Ethernet. However, challenges such as the Meta revenue decline, decreased international revenue contribution, and gross margin pressure were noted.

Company Guidance

During the fourth quarter of 2024, Arista Networks provided robust financial guidance, projecting a revenue growth of 17% for fiscal year 2025, aiming for approximately $8.2 billion in revenue. The company reported Q4 2024 revenues of $1.93 billion, with a non-GAAP earnings per share of $0.65, and achieved a full-year revenue growth of 19.5%, reaching a record $7 billion. Arista maintained strong non-GAAP gross margins of 64.2% for the quarter, supported by efficient supply chain management. The company highlighted the contribution of its cloud and AI sectors, which accounted for approximately 48% of annual revenue, and its enterprise and financial sectors, contributing around 35%. Additionally, Arista's subscription-based network services and software grew to represent 17% of total revenue, with the network adjacencies market, including routing and campus solutions, contributing approximately 18%. Arista emphasized its commitment to achieving a $750 million goal in AI-related revenue for 2025, driven by its strategic focus on AI and cloud innovations. The company also reiterated its strategic positioning with key global clients, including Microsoft and Meta, and emphasized its leadership in high-performance network switching, particularly in 100, 200, and 400 gigabit Ethernet ports.

Record Revenue and Growth

Arista Networks achieved a record revenue of $7 billion for fiscal year 2024, with a nearly 20% year-over-year growth, surpassing the initial guidance of 10% to 12% growth.

Strong Cloud and AI Segment Performance

Cloud and AI titans contributed approximately 48% of total revenue, with significant contributions from Microsoft and Meta at approximately 20% and 14.6%, respectively.

Leadership in High-Speed Ethernet

Arista gained market share in the 100, 200, and 400 gigabit Ethernet switching category, achieving over 40% market share according to industry analysts.

AI Revenue Goals

Arista is optimistic about achieving its AI revenue goal of $1.5 billion in AI centers, including $750 million in AI back-end clusters in 2025.

Network Software and Subscription Services Growth

The network software and subscription services category surpassed $1 billion in revenue for 2024, contributing approximately 17% of total revenue.

Strong Financial Performance

Q4 2024 revenues were $1.93 billion, up 25.3% year-over-year, with a non-GAAP operating margin of 47.5% and a net income for the quarter of $830.1 million.

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Arista Networks (DE:1170) Earnings, Revenues Date & History

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DE:1170 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 05, 2025	2025 (Q1)	0.56 / -	0.475	―	―	―
Feb 18, 2025	2024 (Q4)	0.54 / 0.62	0.496	25.00% (+0.12)
Nov 07, 2024	2024 (Q3)	0.50 / 0.57	0.437	31.00% (+0.14)
Jul 30, 2024	2024 (Q2)	0.46 / 0.50	0.377	32.91% (+0.12)
May 07, 2024	2024 (Q1)	0.41 / 0.47	0.341	39.11% (+0.13)
Feb 12, 2024	2023 (Q4)	0.41 / 0.50	0.336	47.73% (+0.16)
Oct 30, 2023	2023 (Q3)	0.38 / 0.44	0.298	46.79% (+0.14)
Jul 31, 2023	2023 (Q2)	0.34 / 0.38	0.257	46.30% (+0.12)
May 01, 2023	2023 (Q1)	0.32 / 0.34	0.2	70.48% (+0.14)
Feb 13, 2023	2022 (Q4)	0.29 / 0.34	0.195	71.71% (+0.14)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:1170 Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 18, 2025	€106.08	€99.97	-5.76%
Nov 07, 2024	€99.92	€93.90	-6.03%
Jul 30, 2024	€72.50	€79.35	+9.45%
May 07, 2024	€64.42	€67.92	+5.43%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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