Arista Networks, Inc. · NYSE:ANET

Arista Networks — Investor Day (November 2021)

22 slides from Arista Networks's investor day presentation, Nov 1, 2021

Slide 1: Analyst Day Highlights: The Foundation for Data-Driven Networking
Analyst Day Highlights The Foundation for Data-Driven Networking Analyst Day 2021
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements - This presentation and accompanying oral presentation contain “forward-looking statements” regarding our business plans and objectives, our growth drivers, potential growth opportunities, market potential by speed, the data center switching market, the campus
Slide 3: Analyst Day Highlights
Analyst Day Highlights 1. Key Trends in Data Driven Networking 2. Arista EOS NetDL Strategy 3. Arista Product Portfolio 4. EAI & ML in Networking 5. Arista Business Model 6. Business Outlook Summary 3 Analyst Day 2021
Slide 4: Growth in Cloud Networking Bandwidth
Growth in Cloud Networking Bandwidth Source: Google Cloud Cloud Intra-DC Traffic growing at an average rate of 50% per year Source: The 650 Group 4 Analyst Day 2021
Slide 5: Arista EOS Stack Evolution
2020s Arista EOS Stack AI-Enabled Network Operations Evolution NetDL — add enriched data Centralize all Network State Data and Enrich w/ 3rd Party Integrations to sources & packet, flow, and build foundation for AI NetOps network data. Drive powerful AI/ML app dev 2010s SDN and Intent Systems While
Slide 6: Evolution to EOS NetDL
Evolution to EOS NetDL Network-Wide Centralized Single Device State Database State Database EOS Network Data Lake 3rd AVA CV Party AI-Assist Apps Apps Network-Wide State- NetDB Logs SNMP CLI Telemetry Logs SNMP CLI Telemetry Single API Surface APIs Flows AAA Packets APIs Flows AAA Packets Network In
Slide 7: Arista's Data-Driven Architecture
Arista’s Data-Driven Architecture NetDL IoT/OT AVA Flow or Packet Data 1. Core Time-Series State & Store 2. Ingest multiple sources of Data & Situational Context Analysis Structured Data 3. Prescriptive AI/ML for data Learning and Enrichment Unstructured 4. Endorsed by Ecosystem of Data Threat Resol
Slide 8: Arista's Client to Cloud Portfolio
Arista’s Client to Cloud Portfolio Data Center One Network Stack: EOS Cloud Campus Complete Data Center Portfolio Complete Campus Portfolio Expanding Routing Portfolio Software & Services Routing Expanding Software Portfolio Arista is the preferred networking company to offer a consistent operating
Slide 9: Cognitive Campus Systems Portfolio
Cognitive Campus Systems Portfolio 1RU 2RU Modular Spine 7050X3 Series 7050X3 Series 10G – 25G 7300X3 100G 10G - 100G MACsec MACsec Leaf 720XP 7050X 722XP-48 720XP-96 750 Series 1G/5G PoE+ 1G to 25G Wi-Fi 0-105 C-100 C-110 W-118 C-130 C-260 C-360 9 Analyst Day 2021
Slide 10: Disaggregated Cloud is Transforming the Routing Edge
Disaggregated Cloud is Transforming the Routing Edge 5G Enterprise Applications Gaming workloads XaaS (Conferencing, e-health, monitoring, etc.) Public Cloud Big Data/ Analytics Media/ Content Security Cloud Exchange Distributed Cloud Edge Routing Edge Cable Smart 5G Edge Remote Peering Content Metr
Slide 11: Build vs Buy → Build and Buy by Cloud Titans
Build vs Buy → Build and Buy by Cloud Titans 7368X Minipack Strong Partnership with Key Cloud Titans and Providers Analyst Day 2021
Slide 12: The Software Driven Client to Cloud Portfolio
The Software Driven Client to Cloud Portfolio DC/Cloud Core Network Campus SW & & Routing Services Adjacencies Arista’s Platforms Portfolio is Market-Ready to Enable Growth in Every Segment 12 Analyst Day 2021
Slide 13: A.I. Custom Fabric and All Ethernet Fabrics
A.I. Custom Fabric and All Ethernet Fabrics Custom Cluster Fabric A.I. Chips interconnected Ethernet at Edge with Ethernet Fabric Analyst Day 2021
Slide 14: The Flagship Platform for AI Applications
The Flagship Platform for AI Applications • Industry Leading Density • Up to 460 Terabit/sec throughput • No-congestion VOQ Fabric • Predictable Low Latency • Large Buffer with No Packet Loss • Ideal for RDMA Application Traffic • Flagship Platform for AI/ML Analyst Day 2021
Slide 15: Power of Data-Driven Networks Eco System
Power of Data-Driven Networks Eco System AVA- Autonomous Virtual Assist Other NetDL-Enabled Applications Quality of Experience Third Party Proactive NetOps Ecosystem Partners Network Detection and Response Customer Automation Frameworks AI-Driven API Access AVA Data Ingestion Analytic / Integrations
Slide 16: Profitable Revenue Growth
Growth & Profitable Revenue Growth Diversification Annual Revenue Annual Earnings Per Share (M$) ($)(1) $11.2 21% 5YR 28% 5YR CAGR 2,909 CAGR $9.7 $9.0 2,411 2,318 $8.0 2,151 1,646 $5.6 1,129 $3.3 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021E (2) FY2016 FY2017 FY2018 FY2019 FY2020 FY2021E (2) (1) Amoun
Slide 17: Building Blocks of Diversified Growth
Growth & Building Blocks of Diversified Growth Diversification Cognitive Software / Core Adjacencies Services Healthy but Subscription Expansion Good progress adding Cyclical / Service Cloud Growth Growth tools to the toolkit • Product Diversification ü Routing Features ü Campus Established ü Monito
Slide 18: Business Model Update
Business Model Update Business Model Long-term Business 2021 2022 Long-Term Model Prior Model Forecast(2) (3) Target(2) Target(2) (2020 – 2025) Mid-teens Revenue Growth ~25% ~30% CAGR Gross Margin (Non-GAAP)(1) 63% to 65% 64%+ 63% to 65% 64% to 65% R&D as % of Revenue (Non-GAAP) (1) ~18% ~17% ~17% ~
Slide 19: Revenue and Growth
Summary – Looking Ahead 2025 Aspire to >$5B by 2025 Revenue and Growth 2020-2025 CAGR of ~15% $3.7B Target in 2022 ~30% YoY growth in 2022 Double Campus to $400M 100% Growth in 2022 Goals 19 Analyst Day 2021
Slide 20: Appendix: GAAP to Non-GAAP Reconciliations
Appendix: GAAP to Non-GAAP Reconciliations Note: A reconciliation of non-GAAP guidance measures to the corresponding GAAP measures is not available on a forward- looking basis because these measures are difficult to predict and subject to change. 20 Analyst Day 2021
Slide 21: Appendix: GAAP to Non-GAAP Reconciliations
Appendix: GAAP to Non-GAAP Reconciliations Q3 YTD 2021-$ 2021-% Revenue $ 2,123,578 100.0% GAAP gross profit / margin 1,358,065 64.0% Stock-based compensation 5,198 0.2 Intangible asset amortization 16,393 0.8 Non-GAAP gross profit / margin $ 1,379,656 65.0% Research and development - GAAP $ 428,873

Arista Networks — Investor Day (November 2021) on 6ix

Arista Networks — Investor Day (November 2021)

Slide 1: Analyst Day Highlights: The Foundation for Data-Driven Networking

Slide 2: Safe Harbor

Slide 3: Analyst Day Highlights

Slide 4: Growth in Cloud Networking Bandwidth

Slide 5: Arista EOS Stack Evolution

Slide 6: Evolution to EOS NetDL

Slide 7: Arista's Data-Driven Architecture

Slide 8: Arista's Client to Cloud Portfolio

Slide 9: Cognitive Campus Systems Portfolio

Slide 10: Disaggregated Cloud is Transforming the Routing Edge

Slide 11: Build vs Buy → Build and Buy by Cloud Titans

Slide 12: The Software Driven Client to Cloud Portfolio

Slide 13: A.I. Custom Fabric and All Ethernet Fabrics

Slide 14: The Flagship Platform for AI Applications

Slide 15: Power of Data-Driven Networks Eco System

Slide 16: Profitable Revenue Growth

Slide 17: Building Blocks of Diversified Growth

Slide 18: Business Model Update

Slide 19: Revenue and Growth

Slide 20: Appendix: GAAP to Non-GAAP Reconciliations

Slide 21: Appendix: GAAP to Non-GAAP Reconciliations

Slide 22: Thank You