In This Article:
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Q4 2024 Revenue: $1.93 billion, up 25.3% year-over-year.
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Fiscal 2024 Revenue Growth: 19.5%.
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Non-GAAP Operating Margin: 47.5% for fiscal 2024.
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Non-GAAP Gross Margin: 64.2% for Q4 2024.
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Non-GAAP Earnings Per Share (EPS): $0.65 for Q4 2024.
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International Revenue Contribution: 16% for Q4 2024.
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Cloud and AI Titans Revenue Contribution: Approximately 48% for fiscal 2024.
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Enterprise & Financials Revenue Contribution: Approximately 35% for fiscal 2024.
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Providers Revenue Contribution: Approximately 17% for fiscal 2024.
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Operating Income: $907.1 million for Q4 2024.
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Net Income: $830.1 million for Q4 2024.
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Cash, Cash Equivalents, and Marketable Securities: Approximately $8.3 billion at the end of Q4 2024.
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Cash from Operations: Approximately $1 billion for Q4 2024.
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Deferred Revenue Balance: $2.79 billion at the end of Q4 2024.
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Inventory Turns: 1.4 times for Q4 2024.
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Fiscal 2025 Revenue Guidance: Approximately $8.2 billion, reflecting 17% growth.
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Q1 2025 Revenue Guidance: $1.93 billion to $1.97 billion.
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Q1 2025 Gross Margin Guidance: Approximately 63%.
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Q1 2025 Operating Margin Guidance: Approximately 44%.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Arista Networks Inc (NYSE:ANET) achieved a record revenue of $7 billion in 2024, surpassing initial guidance with nearly 20% growth.
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The company reported a strong non-GAAP operating margin of 47.5% for the year.
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Arista Networks Inc (NYSE:ANET) continues to gain market share in high-performance switching, achieving over 40% market share in 100, 200, and 400 gig ports.
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The company has successfully expanded its 400 gig customer base to approximately 1,000 customers in 2024.
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Arista Networks Inc (NYSE:ANET) is optimistic about achieving its AI revenue goal of $1.5 billion in 2025, with significant contributions from AI back-end clusters.
Negative Points
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International revenue contribution decreased to 16% in Q4 2024, down from 17.6% in the previous quarter.
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The gross margin in Q4 2024 was slightly down from the prior year, influenced by a mix of business and China tariffs.
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Meta's revenue contribution was lower in 2024 due to a decrease in their CapEx, impacting Arista Networks Inc (NYSE:ANET)'s revenue.
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The company faces challenges with the stalled deployment of one of its AI clusters due to delays in GPU availability and funding.
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Arista Networks Inc (NYSE:ANET) anticipates variability in inventory due to the timing of component receipts on purchase commitments.