Arista(US:ANET)2025-05-06 20:07Financial Performance - Revenue reached $2.005 billion, a 3.9% increase from Q4 2024 and a 27.6% increase from Q1 2024[5] - GAAP net income was $813.8 million, or $0.64 per diluted share, compared to $637.7 million, or $0.50 per diluted share in Q1 2024[5] - GAAP gross profit for Q1 2025 was $1,276.1 million, up from $1,001.4 million in Q1 2024, reflecting a growth of 27.4%[26] - Non-GAAP net income increased to $826.2 million in Q1 2025, compared to $637.7 million in Q1 2024, representing a growth of 29.6%[26] - GAAP diluted net income per share rose to $0.64 in Q1 2025, compared to $0.50 in Q1 2024, an increase of 28%[26] Margins and Expenses - Non-GAAP gross margin was 64.1%, slightly down from 64.2% in Q4 2024 and Q1 2024[5] - Research and development expenses increased to $266.4 million from $208.4 million in Q1 2024[23] - Total operating expenses rose to $417.3 million compared to $341.2 million in Q1 2024[23] - Non-GAAP gross margin for Q1 2025 was 64.1%, slightly down from 64.2% in Q1 2024[26] Cash Flow and Assets - Net cash provided by operating activities for Q1 2025 was $641.7 million, compared to $513.8 million in Q1 2024, an increase of 24.9%[31] - Total current assets as of March 31, 2025, were $12,276.3 million, up from $11,910.9 million at the end of 2024, indicating a growth of 3.1%[29] - Cash and cash equivalents decreased to $1,845.1 million from $2,762.4 million, a decline of 33.1%[29] Liabilities and Deferred Revenue - Total liabilities increased to $4,395.5 million as of March 31, 2025, from $4,049.1 million at the end of 2024, a rise of 8.5%[29] - Deferred revenue increased to $2,072.7 million in Q1 2025, up from $1,727.3 million in Q4 2024, reflecting a growth of 20%[29] Stock Repurchase and Shareholder Returns - The company completed stock repurchases totaling $787 million in Q1 2025, the highest level in its history[2] - Arista's Board authorized an additional $1.5 billion stock repurchase program in May 2025[3] - The company repurchased common stock amounting to $787.1 million in Q1 2025, compared to $62.7 million in Q1 2024, indicating a significant increase in share buybacks[31] Product Development and Recognition - Arista introduced advanced capabilities for AI networking, including Cluster Load Balancing and AI job-centric observability[6] - The company was recognized in the Leaders Quadrant of the 2025 Gartner Magic Quadrant for Data Center Switching[6] Future Outlook - For Q2 2025, the company expects revenue of approximately $2.1 billion and a non-GAAP gross margin of around 63%[11]