Washington, D.C. 20549

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 27, 2023
(Exact name of registrant as specified in its charter)
Delaware 001-36468 20-1751121
(State or other jurisdiction of
 (Commission File No.) (IRS Employer Identification

5453 Great America Parkway
Santa Clara, CA 95054
(Address of principal executive offices) (Zip Code)
(408) 547-5500
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par valueANETNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

ITEM 2.02    Results of Operations and Financial Condition
    On July 31, 2023, Arista Networks, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2023. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
    This information and Exhibit 99.1 are intended to be furnished under Item 2.02, “Results of Operations and Financial Condition,” and Item 9.01, “Financial Statements and Exhibits,” of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 5.02    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain officers
    On July 27, 2023, Ita Brennan, the Company’s Senior Vice President, Chief Financial Officer, notified the Company of her intention to retire in 2024, effective after the Company has hired her replacement to ensure a smooth and orderly transition of her responsibilities. Ms. Brennan’s decision was not the result of any disagreement with the Company. In advance of her departure, the Company wishes to thank Ms. Brennan for her extraordinary leadership and many contributions over the past eight years.
ITEM 9.01    Financial Statements and Exhibits
(d)    Exhibits

Exhibit No.Description
104Cover Page Interactive Data File (embedded within the Inline XBRL Document)


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

July 31, 2023
Ita Brennan
Chief Financial Officer
(Principal Accounting and Financial Officer)

Exhibit 99.1
Arista Networks, Inc. Reports Second Quarter 2023 Financial Results
SANTA CLARA, Calif.- July 31, 2023 -- Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client to cloud networking for large data center, campus and routing environments, today announced financial results for its second quarter ended June 30, 2023.
“Arista again achieves record growth in revenue and profitability for Q2 2023,” said Jayshree Ullal, President and CEO of Arista Networks. “Our customers now represent more than 75 million cumulative cloud networking ports.”
Second Quarter Financial Highlights
Revenue of $1.459 billion, an increase of 8.0% compared to the first quarter of 2023, and an increase of 38.7% from the second quarter of 2022.
GAAP gross margin of 60.6%, compared to GAAP gross margin of 59.5% in the first quarter of 2023 and 61.2% in the second quarter of 2022.
Non-GAAP gross margin of 61.3%, compared to non-GAAP gross margin of 60.3% in the first quarter of 2023 and 61.9% in the second quarter of 2022.
GAAP net income of $491.9 million, or $1.55 per diluted share, compared to GAAP net income of $299.1 million, or $0.94 per diluted share in the second quarter of 2022.
Non-GAAP net income of $501.2 million, or $1.58 per diluted share, compared to non-GAAP net income of $342.7 million, or $1.08 per diluted share in the second quarter of 2022.
Commenting on the company's financial results, Ita Brennan, Arista’s CFO said, “In spite of the return to shorter lead times and reduced visibility, we are executing well with gradual incremental improvements to our 2023 outlook which now calls for year-over-year growth in excess of 30%.”
Company Highlights
In the first half of 2023, Arista surpassed 75 million cloud network ports shipped cumulatively.
Arista Delivers Network as a Service for Healthcare Market – Based on Arista’s EOS, CloudVisionand Arista Cognitive Unified Edge (Arista CUETM), Arista’s Healthcare Network as a Service delivers the architecture, features, and platforms to help a healthcare organization's networking infrastructure be secure, reliable, and effective in supporting the delivery of high-quality patient care.
Arista Networks Introduces AI-Driven Network Identity – Arista introduced a cloud-delivered, AI-driven network identity service for enterprise security and IT operations. Based on Arista’s flagship CloudVision platform, Arista Guardian for Network Identity (CV AGNI™) expands Arista’s zero trust networking approach to enterprise security.
Arista Named a Leader in The Forrester Wave: Network Analysis and Visibility, Q2 2023 which notes that “Arista Networks’ deployment flexibility is second to none.”
The Arrival of Open AI Networking – On July 19, 2023, suppliers and operators of many of the largest AI and HPC networks came together to launch the Ultra Ethernet Consortium (UEC). Arista is proud to be a founding member of UEC.
Financial Outlook
For the third quarter of 2023, we expect:
Revenue between $1.450 billion to $1.500 billion
Non-GAAP gross margin of approximately 62%; and

Non-GAAP operating margin of approximately 41%
Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and potential non-recurring charges or benefits. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis because these exclusions can be uncertain or difficult to predict, including stock-based compensation expense which is impacted by the company’s future hiring and retention needs and the future fair market value of the company’s common stock. The actual amount of these exclusions will have a significant impact on the company’s GAAP gross margin and GAAP operating margin.
Prepared Materials and Conference Call Information
Arista's executives will discuss the second quarter 2023 financial results on a conference call at 1:30 p.m. Pacific time today. To listen to the call via telephone, dial (888) 330-2502 in the United States or +1 (240) 789-2713 from international locations. The Conference ID is 5655862.
The financial results conference call will also be available via live webcast on Arista's investor relations website at https://investors.arista.com/. Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on Arista’s investor relations website.
Forward-Looking Statements
This press release contains “forward-looking statements” regarding our future performance, including quotations from management, statements in the section entitled “Financial Outlook,” such as estimates regarding revenue, non-GAAP gross margin and non-GAAP operating margin for the third quarter of 2023 and statements regarding the benefits of Arista's products. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from those anticipated in or implied by the forward-looking statements including risks associated with: dependence on a limited number of end customers who represent a substantial portion of our revenue; adverse economic and geopolitical conditions, including inflationary pressures which result in increased component costs and reduced information technology and network infrastructure spending, the Russia/Ukraine conflict; changes in our customers technology roadmaps and priorities including the need for the rapid deployment of artificial intelligence (“AI”) and related technologies; the impact of limited sources of supply on our business, including significant purchase commitments, excess inventory and extended lead times or supply changes; volatility in our revenue growth rate; variations in our results of operations, including as a result of seasonality; the rapid evolution of the networking market; any failure to successfully pursue new products and service offerings and expand into adjacent markets; ; variability in our gross margins, including as a result of changes in customer mix or product mix; intense competition; expansion of our international sales and operations; investments in or acquisitions of other businesses; fluctuations in currency exchange rates; any failure to raise any needed capital; our ability to attract new large end customers or sell additional products and services to existing end customers; our ability to grow sales of our switches; our ability to increase market awareness of our new products and services; a decrease in the sales prices of our products and services; a decline in maintenance renewals by end customers; product quality problems; our ability to anticipate technological shifts and develop products and product enhancements that meet those technological shifts; any failure to manage the supply of our products and product components, resulting in insufficient component supply and inventory or excess inventory; our dependence on third-party manufacturers to build our products; assertions by third parties of infringement or other violations by us of their intellectual property rights; our ability to protect our intellectual property rights; vulnerabilities in our products and failure of our products to detect security breaches; tax, tariff, import/export restrictions, Chinese regulations or other trade barriers; and other future events. Additional risks and uncertainties that could affect us can be found in our most recent filings with the Securities and Exchange Commission including, but not limited to, our annual report on Form 10-K and

quarterly reports on Form 10-Q. You can locate these reports through our website at https://investors.arista.com/ and on the SEC’s website at https://www.sec.gov/. All forward-looking statements in this press release are based on information available to the company as of the date hereof and we disclaim any obligation to publicly update or revise any forward-looking statement to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures
This press release and accompanying table contain certain non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquisition-related intangibles and other acquisition-related expenses, unrealized gains/losses on equity investments, and the income tax effect of these non-GAAP exclusions. In addition, non-GAAP financial measures exclude net tax benefits associated with stock-based awards, which include excess tax benefits, and other discrete indirect effects of such awards. The company uses these non-GAAP financial measures internally in analyzing its financial results and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the primary indicators management uses as a basis for its planning and forecasting for future periods.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations, and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-GAAP financial measures and a reconciliation of the company’s non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.
About Arista Networks
Arista Networks is an industry leader in data-driven, client to cloud networking for large data center, campus and routing environments. Arista’s award-winning platforms deliver availability, agility, automation, analytics and security through an advanced network operating stack. For more information, visit www.arista.com.
ARISTA and CloudVision, CV AGNI, Arista CUE, are among the registered and unregistered trademarks of Arista Networks, Inc. in jurisdictions around the world. Other company names or product names may be trademarks of their respective owners.

Investor Contacts: 

Arista Networks, Inc.
Liz Stine, 408-547-5885
Investor Relations

Condensed Consolidated Income Statements
(Unaudited, in thousands, except per share amounts)
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Product$1,261,537 $885,806 $2,433,631 $1,610,524 
Service 197,387 166,085 376,644 318,433 
Total revenue1,458,924 1,051,891 2,810,275 1,928,957 
Cost of revenue:
Product533,613 375,634 1,042,475 669,443 
Service 41,182 32,992 79,164 62,404 
Total cost of revenue574,795 408,626 1,121,639 731,847 
Gross profit 884,129 643,265 1,688,636 1,197,110 
Operating expenses:
Research and development 229,676 178,158 431,084 350,164 
Sales and marketing 97,971 79,372 191,463 160,111 
General and administrative 26,420 22,882 51,449 45,995 
Total operating expenses 354,067 280,412 673,996 556,270 
Income from operations530,062 362,853 1,014,640 640,840 
Other income (expense), net 56,339 (533)68,485 30,947 
Income before income taxes586,401 362,320 1,083,125 671,787 
Provision for income taxes94,516 63,221 154,767 100,429 
Net income$491,885 $299,099 $928,358 $571,358 
Net income per share:
Basic $1.59 $0.98 $3.02 $1.86 
Diluted $1.55 $0.94 $2.94 $1.80 
Weighted-average shares used in computing net income per share:
Basic 308,636 306,754 307,810 307,399 
Diluted 316,485 316,581 316,031 318,040 


Reconciliation of Selected GAAP to Non-GAAP Financial Measures
(Unaudited, in thousands, except percentages and per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
GAAP gross profit$884,129 $643,265 $1,688,636 $1,197,110 
GAAP gross margin60.6 %61.2 %60.1 %62.1 %
Stock-based compensation expense2,824 2,312 5,799 3,621 
Intangible asset amortization6,820 6,012 13,640 11,733 
Non-GAAP gross profit$893,773 $651,589 $1,708,075 $1,212,464 
Non-GAAP gross margin61.3 %61.9 %60.8 %62.9 %
GAAP income from operations$530,062 $362,853 $1,014,640 $640,840 
Stock-based compensation expense67,127 50,224 130,008 100,503 
Intangible asset amortization9,315 7,708 18,630 15,019 
Acquisition-related costs (1)
— 4,691 — 4,691 
Non-GAAP income from operations$606,504 $425,476 $1,163,278 $761,053 
Non-GAAP operating margin41.6 %40.4 %41.4 %39.5 %
GAAP net income $491,885 $299,099 $928,358 $571,358 
Stock-based compensation expense67,127 50,224 130,008 100,503 
Intangible asset amortization9,315 7,708 18,630 15,019 
Acquisition-related costs (1)
— 4,691 — 4,691 
Unrealized loss (gain) on equity investments(24,743)5,084 (19,172)(23,413)
Tax benefit on stock-based awards (37,832)(17,725)(87,894)(48,689)
Income tax effect on non-GAAP exclusions(4,519)(6,401)(16,235)(8,281)
Non-GAAP net income$501,233 $342,680 $953,695 $611,188 
GAAP diluted net income per share $1.55 $0.94 $2.94 $1.80 
Non-GAAP adjustments to net income 0.03 0.14 0.08 0.12 
Non-GAAP diluted net income per share$1.58 $1.08 $3.02 $1.92 
Weighted-average shares used in computing diluted net income per share 316,485 316,581 316,031 318,040 
Summary of Stock-Based Compensation Expense:
Cost of revenue$2,824 $2,312 $5,799 $3,621 
Research and development41,137 28,449 77,706 56,025 
Sales and marketing15,833 12,827 30,971 25,936 
General and administrative7,333 6,636 15,532 14,921 
Total$67,127 $50,224 $130,008 $100,503 
(1) Represent costs associated with business combinations, which primarily include retention bonuses, and professional and consulting fees.


Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
June 30, 2023December 31, 2022
Cash and cash equivalents $1,261,836 $671,707 
Marketable securities2,479,290 2,352,022 
Accounts receivable779,726 923,096 
Inventories 1,864,334 1,289,706 
Prepaid expenses and other current assets 466,371 314,217 
Total current assets 6,851,557 5,550,748 
Property and equipment, net101,705 95,009 
Acquisition-related intangible assets, net103,575 122,205 
Goodwill268,531 265,924 
Investments61,788 39,468 
Operating lease right-of-use assets61,333 53,390 
Deferred tax assets 705,856 574,912 
Other assets31,696 73,754 
TOTAL ASSETS $8,186,041 $6,775,410 
Accounts payable $351,920 $232,572 
Accrued liabilities 363,036 292,487 
Deferred revenue 624,207 637,432 
Other current liabilities 316,629 131,040 
Total current liabilities 1,655,792 1,293,531 
Income taxes payable 98,722 89,839 
Operating lease liabilities, non-current51,702 43,964 
Deferred revenue, non-current460,697 403,814 
Other long-term liabilities 61,546 58,442 
TOTAL LIABILITIES 2,328,459 1,889,590 
Common stock31 31 
Additional paid-in capital 1,927,697 1,780,714 
Retained earnings 3,955,062 3,138,983 
Accumulated other comprehensive income (loss)(25,208)(33,908)
TOTAL STOCKHOLDERS’ EQUITY 5,857,582 4,885,820 


Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Six Months Ended June 30,
Net income $928,358 $571,358 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other39,227 28,012 
Stock-based compensation 130,008 100,503 
Noncash lease expense9,154 9,161 
Deferred income taxes (130,287)(105,937)
Unrealized gain on equity investments(19,172)(23,413)
Amortization (accretion) of investment premiums (discounts)(11,998)11,457 
Changes in operating assets and liabilities:
Accounts receivable, net 143,370 (64,335)
Inventories (574,628)(202,052)
Other assets(120,864)(163,692)
Accounts payable 114,905 71,169 
Accrued liabilities 70,418 (16,210)
Deferred revenue 43,658 91,201 
Income taxes, net198,100 10,792 
Other liabilities (11,676)221 
Net cash provided by operating activities 808,573 318,235 
Proceeds from maturities of marketable securities1,265,305 829,714 
Proceeds from sale of marketable securities21,725 165,746 
Purchases of marketable securities(1,392,020)(641,979)
Purchases of property and equipment (17,212)(23,744)
Cash paid for business acquisitions, net of cash acquired1,799 (145,087)
Investments in notes and privately-held companies(4,250)(11,691)
Net cash provided by (used in) investing activities (124,653)172,959 
Proceeds from issuance of common stock under equity plans30,410 22,991 
Tax withholding paid on behalf of employees for net share settlement(15,766)(18,802)
Repurchases of common stock(112,279)(619,888)
Net cash used in financing activities(97,635)(615,699)
Effect of exchange rate changes 429 (3,041)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period675,978 625,050 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period$1,262,692 $497,504 

Cover Cover
Jul. 27, 2023
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 27, 2023
Entity Registrant Name ARISTA NETWORKS, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-36468
Entity Tax Identification Number 20-1751121
Entity Address, Address Line One 5453 Great America Parkway
Entity Address, City or Town Santa Clara
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95054
City Area Code 408
Local Phone Number 547-5500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.0001 par value
Trading Symbol ANET
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001596532
Amendment Flag false

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