Arista Networks, Inc. · NYSE:ANET
Arista Networks — Q1 2025 Earnings Presentation
31 slides from Arista Networks's earnings presentation, May 6, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements - This presentation and accompanying oral presentation contain “forward-looking statements” regarding our future performance, including quotations from management, statements in the section entitled “Financial Outlook,” such as estimates regarding revenue, non-
Slide 3: The Making of Arista's Decade
The Making of Arista’s Decade ~$7.0B 2023 $5.8B 10 Years 10K Customers 100 Million Ports WAN Routing Entry 75 M ports shipped 2024 #1 Market Share in 2020 Data Center Acquired Big Switch $4.3B Switching Networks & Awake Revenue Security 2018 #1 in 100/200/400G Acquired Mojo / ports market Acquired M
Slide 4: Leader in Data-Driven Networking
Leader in Data-Driven Networking Broad TAM across diverse customer business priorities: AI and data center, campus networking, security and observability Differentiated architecture that combines reliable, high-performance hardware with software designed to reduce cost of network operations Enables
Slide 5: Arista At-a-Glance
Arista At-a-Glance1 LTM REVENUE 5-YEAR CAGR IPO 2014 THROUGH FY’24 June 6th S&P 500 Added in 2018 $7.4B 23.8% 10,000+ Customers LTM GROSS MARGIN LTM OPERATING $70B TAM MARGIN Leader in 100/400G 64.5% 47.6% A Leader in the Gartner® Magic Quadrant for Data Center Switching 1 Amounts are non-GAAP excep
Slide 6: Founders and Leaders
Founders and Leaders Jayshree Ullal Andy Bechtolsheim Chantelle Breithaupt Ken Duda Hugh Holbrook President & CEO Founder, Chief Architect Chief Financial Officer Founder, Chief Technology Officer Chief Development Officer Mark Foss John McCool Ashwin Kohli Chris Schmidt Chris Bellmare SVP, Global O
Slide 7: First Quarter 2025: Company Highlights
Arista Introduces Intelligent Innovations for AI Networking Arista introduced advanced capabilities to maximize AI cluster performance and efficiency. Cluster Load Balancing (CLB) in Arista EOS® maximizes AI workload performance with consistent, low-latency network flows, while Arista CloudVision® U
Slide 8: Arista's FY 2024 Achievements
Arista’s FY 2024 Achievements EOS • Arista EOS SWAG uses industry-standard Ethernet to group and manage individual switches via a single IP address • The Arista EOS AI Agent aligns compute and network domains as a single managed AI entity, enabling coordination across domains to minimize job complet
Slide 9: Why 10,000+ Customers Choose Arista
Why 10,000+ Customers Choose Arista Innovative & Superior Quality, Low Data-Driven World Class TCO and Simplicity Automation, Support with EOS Telemetry, Analytics Modern Architecture – Scalable, Programmable, Standards-based 9 | Copyright © Arista 2025. All rights reserved.
Slide 10: Arista's Commitment to Corporate Responsibility
Arista’s Commitment to Corporate Responsibility Environmental Social Governance New Science Based Targets approved Recognized as an America’s Best Companies to Work For and Invest In by Forbes (#15) Board of Directors composition: by the Science Based Targets o 77% Independent Record # and $s of Ari
Slide 11: Growth Drivers and Market Opportunity
Growth Drivers and Market Opportunity
Slide 12: Arista's Growth Drivers Addressing $70B TAM
Core Cognitive Adjacency Cognitive Network $70B $54B Arista’s Growth $41B Drivers Addressing $70B TAM Cloud Networking Market Expansion 2024 2025 2026 2027 2028 Core = Data Center & Cloud Networks Cognitive Adjacency = Campus & Routing 12 | Copyright © Arista 2025. All rights reserved. Cognitive Net
Slide 13: Continued Growth Ahead In Switching Market Opportunity
Continued Growth Ahead In Switching Market Opportunity Data Center Ethernet Switch Revenue Campus Ethernet Switch Revenue $25 $50 Top 3 Chinese Cloud SPs $20 Revenue in Billions ($) Revenue in Billions ($) $40 Telco SPs Top 5 U.S. Hybrid/Private Cloud Cloud SPs $15 Large Business $30 Enterprise and
Slide 14: Continued Growth Ahead In Switching Market Opportunity
$28 Market Potential by Speed Continued Growth Data Center Ethernet Switch Revenue ($B) >=1.6 Tbps $21 Ahead In Switching Revenue In Billions ($) 800 Gbps Market Opportunity $14 400 Gbps 200 Gbps Data Center Ethernet Switch $7 40 Gbps 100 Gbps Analysis and Forecast 25 Gbps <10 Gbps $0 Source: Dell’O
Slide 15: Delivering Consistent Market Share Gains vs Cisco
Delivering Consistent Market Share Gains vs Cisco High Speed Data Center Switching Market Share in Dollars Share in Ports 78.1% 80% 80% 74.4% 71.4% 70.9% 69.4% 70% 64.7% 70% 65.9% 60.6% 60% 57.8% 60% 53.1% 51.6% 49.8% 49.9% 50% 45.4% 42.9% 40.5% Arista 50% 42.4% Arista 40% 36.1% 40% 36.5% 34.2% 34.5
Slide 16: Arista's Market Leadership in 100G/200G/400G/800G
Arista’s Market Leadership in 100G/200G/400G/800G Data Center High Speed Ethernet Port Analysis 35 ~14% Cisco Cisco ROM Arista 4.5 30 100/200/400G Switch Ports (Millions) 25 5.6 ~43% ROM 5.0 14.3 20 9.9 15 3.8 9.0 10 6.9 ~43% Arista 12.9 14.2 5 9.9 6.0 0 2021 2022 2023 2024 Source: Crehan Ethernet S
Slide 17: Arista's Product and Market Sector Diversification
Arista’s Product and Market Sector Diversification Market Sector Trends* Product ~20-25% Trends* 20%-25% Cloud and AI Titans ~60-65% 40%-45% Enterprise 10%-15% Core 35%-39% Providers Network SW & 20%-25% SVC 60%-65% Cognitive Adjacency Geographic Mix Q1’FY25 11% Core – Data Center & Cloud Networks C
Slide 18: Business Model and Q1'25 Financial Update
Business Model and Q1’25 Financial Update
Slide 19: Financial Results for First Quarter 2025
Financial Results (non-GAAP)1 Q1’25 Results Revenue $2.005B, up 27.6% YoY Financial Results for Gross Margin (Non-GAAP)(1) 64.1% First Quarter Operating Margin (Non-GAAP)(1) 47.8% 2025 EPS (Non-GAAP)(1) $0.65 1 Amounts are non-GAAP except for Revenue; refer to reconciliation between non-GAAP and GAA
Slide 20: Financial Highlights
Financial Highlights1 Total Revenue 70% Gross Margin $1.8 $1.6 $1.4 60% 64.2% 65.4% 64.6% 64.2% 64.1% $1.2 Billions $1.0 50% $0.8 $0.6 $0.4 40% $0.2 1.571 1.690 1.811 1.930 2.005 $0.0 30% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 50% Operating Margin 49.1% 47.8% Q1’25 higher operat
Slide 21: Balance Sheet & Cash Conversion Cycle
Balance Sheet & Cash Conversion Cycle1 $9.0 Cash, Cash Equivalents Cash Conversion Cycle $8.0 & Marketable Securities $7.0 379 400 $6.0 298 262 275 Billions $5.0 300 352 $4.0 200 $3.0 $2.0 100 Days $1.0 5.450 6.274 7.428 8.303 8.150 0 $0.0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25
Slide 22: Inventory Turnover
Inventory Turnover $2.5 Purchase Commitments $1,400 AR DSO 75 64 67 $1,200 64 $2.0 57 54 60 $1,000 $1.5 $800 Billions 45 Millions $600 $1.0 30 $400 $0.5 15 $200 1.458 2.117 2.368 3.093 3.527 1098 1237 1131 1140 1436 $0.0 $0 0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 4.0 Inventory
Slide 23: Our Approach to Capital Allocation
Our Approach to Capital Allocation Q1 FY 2025 Maintain a healthy balance sheet Net Income $813.8M Invest to strengthen operations/position of existing business if we earn a reasonable return e.g., supply chain & working capital investments Invest in the business Invest cash balance to earn interest
Slide 24: Guidance and Financial Outlook
Guidance and Financial Outlook |24Copyright © Arista 2025 . All rights reserved.
Slide 25: Second Quarter 2025 Guidance
Q2’25 Guidance Revenue ~ $2.1B Second Quarter Gross Margin (Non-GAAP)(1) ~ 63% 2025 – Guidance Operating Margin (Non-GAAP)(1) ~ 46% Diluted Shares ~ 1.272 billion Non-GAAP Tax Rate(1) ~ 21.5% (1) Guidance for non-GAAP financial measures excludes stock-based compensation, amortization of acquisition
Slide 26: Arista 2025 Goals
Arista 2025 Goals SAM of $70B by 2028 Revenue and Growth 2020-2025 CAGR of 20+% 2023-2026 CAGR of Mid-teens ~$8.2B Revenue Goal in 2025 ~17% YoY Annual Growth New Market 2025 Targets Campus ~$750M AI Back End ~$750M Goals 26 | Copyright © Arista 2025. All rights reserved.
Slide 27: Revenue, Gross Margin, Operating Margin 2025 Outlook
Revenue Gross Margin Operating Margin 1 2 3 ~17% growth 60-62% 43-44% Higher mix of Cloud/AI customers Driven by customer mix Continue to invest in the business
Slide 28: Second Quarter 2025 Investor Conference Participation
Arista will participate in the following conferences in May and June 2025 with the financial community Needham Technology, Media, & Consumer Conference Chantelle Breithaupt, Chief Financial Officer Friday, May 9, 2025 at 11:45 AM - 12:25 PM ET Webcast: https://investors.arista.com J.P. Morgan Global
Slide 29: Appendix I
Appendix I • GAAP to Non-GAAP Reconciliation
Slide 30: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation 30 | Copyright © Arista 2025. All rights reserved.
Slide 31: Thank You
ARISTA Thank You www.arista.com