- In addition to beating Q3 estimates, Arista (NYSE:ANET) has guided for Q4 revenue of $238M-$242M, above a $229.7M consensus.
- On the earnings call, CEO Jayshree Ullal asserted demand from "cloud titan" clients (Microsoft, Facebook, etc.) remains strong in spite of recent signs of slower capex growth - Facebook has lowered its capex budget twice this year, and Google's capex was down Y/Y in Q2 and Q3 (that might reverse soon). "[T]he interest from the cloud titans has been very high and the growth has been unabated, and that's why we're forecasting a strong cloud titan quarter for Q4. We are in six out of seven cloud titans in the US and we continue to make some progress internationally."
-
Q3 details: Product revenue rose 37% Y/Y in Q3 to $193.3M; services revenue (boosted by software subscription launches) rose 73% to $24.2M. GAAP operating expenses rose 65% Y/Y to $110.5M. Gross margin (non-GAAP) was 65.5% vs. 65.2% in Q2 and 65.8% a year ago; GM is expected to drop to 62%-65% in Q4. Arista ended Q3 with $569M in cash, and no debt.
-
Q3 results, PR