Arista Networks, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. Total revenue for the three months reached $1,810.9 million, marking a 20.0% increase from $1,509.5 million in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $5,072.7 million, up 17.4% from $4,319.7 million year-over-year. This growth was driven by a notable increase in both product and service revenues, with product revenue rising to $1,523.8 million (up 18.5%) and service revenue increasing to $287.1 million (up 28.2%) for the quarter.
Gross profit also saw substantial growth, reaching $1,161.7 million for the three months, a 23.3% increase from $942.4 million in 2023. The gross margin improved to 64.2%, up from 62.4% in the prior year. For the nine-month period, gross profit was $3,260.3 million, reflecting a 23.9% increase from $2,631.1 million in 2023.
Operating income for the three months ended September 30, 2024, was $785.3 million, compared to $602.7 million in 2023, while net income rose to $747.9 million from $545.3 million year-over-year. This resulted in a net income per share of $2.38 for the quarter, up from $1.76 in the previous year. For the nine months, net income was $2,051.1 million, compared to $1,473.7 million in 2023.
The company’s balance sheet showed robust liquidity, with cash and cash equivalents increasing to $3.2 billion as of September 30, 2024, up from $1.9 billion at the end of 2023. Total assets also rose to $12.8 billion from $10.0 billion during the same period.
Strategically, Arista has made significant investments to enhance its production capacity and address global supply chain disruptions. The company has focused on expanding its sales force and marketing efforts, particularly in the AI Ethernet market, which is expected to drive future growth. Additionally, Arista has authorized a new $1.2 billion stock repurchase program, with $1.0 billion remaining as of September 30, 2024.
The company continues to navigate macroeconomic uncertainties, including inflation and geopolitical pressures, which may impact customer demand and operational costs. Despite these challenges, Arista's strong financial performance and strategic initiatives position it well for continued growth in the cloud networking sector.
About Arista Networks, Inc.
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