Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $1.93 billion, representing a 25.3% year-over-year increase and exceeding guidance [33] - Fiscal year 2024 revenue growth was 19.5%, driven by achievements across all product sectors [33] - Non-GAAP operating margin for Q4 was 47%, contributing to a fiscal year operating income of $3.3 billion or 47.5% of revenue [37][39] - Gross margin for Q4 was 64.2%, slightly above guidance and down from 65.4% in the prior year [34] Business Line Data and Key Metrics Changes - Services and subscription software contributed approximately 18.3% of revenue in Q4, up from 17.6% in Q3 [33] - Core cloud AI and data center products accounted for approximately 65% of revenue, with a 400-gig customer base increasing to about 1,000 customers [14][39] - The cognitive adjacencies market, including routing and campus solutions, contributed approximately 18% of revenue [17][128] Market Data and Key Metrics Changes - International revenue for Q4 was $311.1 million, or 16% of total revenue, down from 17.6% in the previous quarter [33] - The Americas region contributed a strong 84% to total revenue, indicating robust domestic demand [11] Company Strategy and Development Direction - The company aims for $10 billion in annual revenue with a double-digit CAGR, reiterating a revenue guidance of approximately $8.2 billion for 2025 [27][48] - The focus remains on AI, cloud, and enterprise markets, with expectations of significant growth in AI back-end sales [15][100] - The company is committed to innovation in networking solutions, emphasizing the importance of mission-critical networks for AI applications [108] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving AI revenue goals of $1.5 billion in AI centers, including $750 million in AI back-end clusters in 2025 [15][100] - The leadership team highlighted the importance of navigating supply chain constraints and component costs while maintaining a strong focus on product innovation [6][50] - The effective tax rate is expected to return to a historical rate of 21.5%, up from a one-time low of 16.7% [51] Other Important Information - The company repurchased $123.8 million of common stock in Q4, with a total of $423.6 million repurchased in fiscal 2024 [40] - Cash, cash equivalents, and marketable securities at the end of Q4 were approximately $8.3 billion [40] Q&A Session Summary Question: Timing of AI back-end switch deployments - Management confirmed commitment to four out of five AI projects, with three customers expected to roll out a cumulative 100,000 GPUs this year [57][60] Question: Impact of white box vendors on revenue growth - Management acknowledged coexistence with white box vendors, emphasizing the unique capabilities of Arista's solutions in AI networking [64][68] Question: Cloud titan numbers and Meta's performance - Management noted that Meta's lower numbers were influenced by their CapEx reduction in 2023, while other cloud titans performed well [72][73] Question: Gross margins and mix-driven factors - Management clarified that gross margin changes are primarily mix-driven, with some impact from tariffs [78][80] Question: Opportunities in Sovereign AI and Stargate projects - Management expressed optimism about vertical integration in future AI projects, highlighting the potential for new AI accelerators [94][96] Question: AI back-end sales and TAM for 2028 - Management indicated that approximately one-third of the $70 billion TAM in 2028 is expected to come from AI [98][100] Question: Value of U.S. software layer in networking - Management emphasized the critical role of mission-critical networks and the unique features of Arista's EOS in AI deployments [108][110] Question: Enterprise strategy and growth drivers - Management highlighted significant investments in sales and marketing to drive growth in the enterprise sector [116][118]

Financial Performance - Arista Networks has achieved leadership in overall data center Ethernet switch ports and revenue, with a focus on higher speed Ethernet port shipments of 100G and above, since its inception in 2008[21]. - The company has been profitable and cash flow positive since 2010, indicating strong financial health and operational efficiency[21]. - The company experienced annual revenue growth rates of 19.5%, 33.8%, 48.6%, and 27.2% in 2024, 2023, 2022, and 2021 respectively, indicating volatility in revenue growth rates[140]. - Revenue growth may be impacted by changes in customer demand, particularly from large customers, and the unpredictability of supply chain conditions[142]. - The company has not paid dividends in the past and does not intend to pay dividends for the foreseeable future[124]. - Sales prices for products may decline due to competitive pressures, which could reduce gross profits and adversely affect results[176]. - The company relies on contract manufacturers like Jabil Inc. and Foxconn for product manufacturing, ensuring ISO-9001 certification across all locations[85]. - The company has historically derived substantial revenue from switching and routing platforms, and future performance relies on successfully developing next-generation products[173]. Customer Concentration - Meta Platforms and Microsoft each accounted for more than 10% of Arista's total revenue for the years ended December 31, 2024, and December 31, 2023, highlighting significant customer reliance[23]. - Sales to Microsoft represented 20%, 18%, and 16% of total revenue for the years ended 2024, 2023, and 2022 respectively[125]. - Sales to Meta Platforms accounted for 15%, 21%, and 26% of total revenue for the years ended 2024, 2023, and 2022 respectively[125]. - The company expects continued variability in customer concentration and timing of sales on a quarterly and annual basis due to large purchases by a limited number of customers[126]. Product Development and Innovation - The company focuses on research and development to enhance existing products and develop new solutions, particularly for AI workloads and CloudVision management stack[84]. - The product portfolio includes industry-leading Ethernet switches with low latency, high capacity, and power efficiency, utilizing multiple merchant silicon architectures[58]. - The company has made substantial investments in new product development, and failure to meet market demand could result in a loss of competitive position[147]. - The company anticipates that fiscal 2024 will be marked by new product introductions and expanded use cases, particularly in the AI Ethernet market, continuing into fiscal 2025[126]. - The Arista Etherlink AI portfolio includes 800G switches designed for large-scale AI networks, emphasizing high performance and scalability[65]. - The Arista 7700R4 DES is engineered for demanding AI and machine learning environments, offering high throughput and advanced congestion management[66]. Supply Chain and Manufacturing Risks - The company’s products depend on key components from a limited number of suppliers, which may pose risks due to potential supply chain disruptions[87]. - The reliance on a predominant merchant silicon vendor, Broadcom, for switching chips increases supply chain risks[132]. - The company has experienced prolonged manufacturing and supply chain disruptions due to geopolitical conditions, affecting component supply and inventory management[202]. - Supply chain disruptions could impact the ability to manufacture and ship products timely, affecting seasonal trends and overall business performance[168]. - The company must comply with various regulations when selling to government entities, which may change and affect sales capabilities[189]. Competitive Landscape - The competitive landscape is intensifying with the expansion of cloud and AI networking, leading to new entrants and enhanced products from existing competitors[90]. - Major competitors include Cisco, Dell/EMC, and Huawei, with industry consolidation through acquisitions like Broadcom's acquisition of VMware[91]. - Ethernet technology faces competition from InfiniBand and NV Link for AI networking clusters, which are known for high reliability and low latency[92]. - The company competes in the NDR market against Cisco and Darktrace, and in the NPB market against Cisco and Gigamon[94]. - Intense competition is anticipated from established companies and new entrants, which may lead to increased pricing pressure and reduced profit margins[155]. Employee and Workplace Culture - The company employs approximately 4,412 full-time employees as of December 31, 2024, with no union representation[104]. - The company has been recognized by Forbes and Time Magazine for its workplace culture and investment potential[105]. - The company emphasizes diversity and inclusion, with 50% of its board comprising women or underrepresented minorities[107]. - The company provides comprehensive benefits, including stock purchase plans and wellness programs, to support employee well-being[110]. Economic and Geopolitical Risks - Economic uncertainties, including geopolitical tensions and inflationary pressures, may adversely affect customer spending on IT and network infrastructure[129]. - The company faces risks associated with the cancellation, delay, or modification of purchase commitments by customers, impacting revenue predictability[127]. - Fluctuations in currency exchange rates could adversely affect the company's business[124]. - The company is primarily exposed to fluctuations in currency exchange rates, which could adversely affect its business and financial condition, particularly due to the strengthening U.S. dollar increasing costs for international customers[169]. Intellectual Property Risks - Intellectual property disputes could result in significant costs and harm to the company's financial condition and operations[214]. - The company faces risks from third-party patent infringement claims, which could lead to expensive litigation and settlement costs[215]. - Competitors may have larger patent portfolios, increasing the risk of patent infringement lawsuits against the company[216]. - Adverse outcomes in intellectual property disputes could require substantial damages or penalties, harming the company's financial condition[218].

"2024 was a remarkable year of momentum resulting in a record $7 billion in revenue," stated Jayshree Ullal, Chairperson and CEO for Arista Networks. "I am so proud of the team's execution in delivering the ultimate combination of superior growth and profitability. We continued to innovate for our customers with best-of-breed platforms enabling AI for networking and networking for AI." Full Year Financial Highlights Fourth Quarter Financial Highlights Commenting on the company's financial results, Chantelle ...

Arista Networks, Inc. (NYSE:ANET) Raymond James 2024 TMT & Consumer Conference Call December 10, 2024 3:00 PM ET Company Participants Ashwin Kohli - Chief Customer Officer Chantelle Breithaupt - Chief Financial Officer Conference Call Participants Simon Leopold - Raymond James Simon Leopold All good. Great. Thank you. Thanks folks for joining us. My name is Simon Leopold, Raymond James, Data Infrastructure Analyst. We are here at Day Two of our TMT and Consumer Conference here in New York and I'm pleased to ...

Arista Networks, Inc. (NYSE:ANET) Q3 2024 Earnings Conference Call November 7, 2024 4:30 PM ET Company Participants Liz Stine - Director of Investor Relations Jayshree Ullal - Chairperson & Chief Executive Officer John McCool - Chief Platform Officer & Senior Vice President of Engineering and Operations Chantelle Breithaupt - Chief Financial Officer Conference Call Participants Samik Chatterjee - JPMorgan Antoine Chkaiban - New Street Research Tal Liani - Bank of America Simon Leopold - Raymond James Ben Re ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------|-------------------------------------------------- ...

Exhibit 99.1 Arista Networks, Inc. Reports Third Quarter 2024 Financial Results SANTA CLARA, Calif.- November 7, 2024 -- Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus and routing environments, today announced financial results for its third quarter ended September 30, 2024. Third Quarter Financial Highlights "Arista remains at the forefront of next generation centers of data across client-to-cloud and AI focused locations, ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were $1.69 billion, representing a year-over-year increase of 15.9%, significantly exceeding the guidance of $1.62 billion to $1.65 billion [21][22] - Non-GAAP earnings per share for the quarter were $2.10, up 32.9% from the prior year [23] - Non-GAAP gross margin was 65.4%, up from 64.2% in the previous quarter and 61.3% in the same quarter last year [22][23] - Operating income for the quarter was $785.6 million, or 46.5% of revenue [23] Business Line Data and Key Metrics Changes - Services and Subscription Software contributed approximately 17.6% of revenue, up from 16.9% in Q1 2024 [21] - International revenues were $316 million, accounting for 18.7% of total revenue, down from 20.1% in the prior quarter [21] Market Data and Key Metrics Changes - The Americas contributed 81% of total revenue, while international contribution was 19% [7] - The APJ region showed relatively weaker performance, impacting international revenue [21] Company Strategy and Development Direction - The company is focused on a total addressable market (TAM) of over $70 billion, with significant growth opportunities in AI and cloud networking [6][27] - The launch of the Etherlink AI platforms aims to support the migration from InfiniBand to Ethernet, indicating a strategic shift towards AI networking solutions [7][8] - The company plans to continue investing in R&D and go-to-market strategies to support growth in Cloud, AI, and Enterprise sectors [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum seen in the market, with expectations for continued growth in the second half of 2024 [27] - The company anticipates a revenue growth guidance of at least 14% for the fiscal year 2024, with a gross margin outlook of 62% to 64% [27][28] - Management highlighted the importance of Ethernet in AI networking and the evolving role of data centers as AI centers [18][75] Other Important Information - The company repurchased $172 million of common stock during the quarter, with a new program of $1.2 billion approved in May 2024 [24] - Cash, cash equivalents, and investments totaled $6.3 billion at the end of the quarter [24] Q&A Session Summary Question: Insights on next-generation GPUs and networking modularity - Management noted that as GPUs become faster, the dependency on high-throughput networks increases, emphasizing the timely introduction of 800-gig products [32] Question: Deferred revenue balance and AI opportunities - Management explained that the product deferred revenue can fluctuate and is particularly high when new products and use cases are introduced [35][36] Question: Status of AI trials - Management confirmed that the four major AI trials are progressing well and moving into pilot phases, with additional smaller customers starting AI pilots [40] Question: Understanding the $70 billion TAM - Management detailed that the TAM includes various segments such as data centers, AI, campus, and wide area networks, with significant growth potential in each [42] Question: Trends in traditional infrastructure investments - Management acknowledged a pivot from classic cloud spending to AI, while also noting ongoing refresh cycles in traditional infrastructure [46] Question: Growth expectations for the second half of 2024 - Management expressed confidence in continued growth acceleration, with a conservative guidance of at least 14% for the year [49][51] Question: Competitive environment and NVIDIA's Spectrum - Management indicated that while they compete with NVIDIA's Spectrum, they maintain a strong win rate due to their product performance and reliability [82] Question: Enterprise customer behavior and network refresh - Management observed activity across various enterprise customer segments, with a notable interest in upgrading to higher-speed networks [87]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2024, show significant growth in revenue and net income, with total assets increasing to $11.6 billion and operating cash flow nearly doubling to $1.5 billion [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased to $11.62 billion, driven by cash and marketable securities, while liabilities rose to $3.19 billion due to deferred revenue, and equity reached $8.43 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $9,842,318 | $8,390,235 | | Cash and cash equivalents | $2,429,031 | $1,938,606 | | Marketable securities | $3,844,923 | $3,069,362 | | Inventories | $1,853,776 | $1,945,180 | | **Total Assets** | **$11,623,235** | **$9,946,806** | | **Total Current Liabilities** | $2,161,879 | $1,909,606 | | Deferred revenue (current) | $1,329,450 | $915,204 | | **Total Liabilities** | **$3,192,427** | **$2,727,747** | | **Total Stockholders' Equity** | **$8,430,808** | **$7,219,059** | [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) For the second quarter of 2024, Arista reported total revenue of $1.69 billion, a 15.9% increase year-over-year, and net income of $665.4 million, up 35.3% YoY For the six months ended June 30, 2024, revenue grew 16.1% to $3.26 billion, and net income increased 40.4% to $1.30 billion Q2 2024 vs Q2 2023 Performance (in thousands, except per share) | Metric | Q2 2024 | Q2 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,690,400 | $1,458,924 | +15.9% | | Gross Profit | $1,097,213 | $884,129 | +24.1% | | Income from Operations | $699,573 | $530,062 | +32.0% | | Net Income | $665,428 | $491,885 | +35.3% | | Diluted EPS | $2.08 | $1.55 | +34.2% | H1 2024 vs H1 2023 Performance (in thousands, except per share) | Metric | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $3,261,774 | $2,810,275 | +16.1% | | Gross Profit | $2,098,592 | $1,688,636 | +24.3% | | Income from Operations | $1,359,714 | $1,014,640 | +34.0% | | Net Income | $1,303,120 | $928,358 | +40.4% | | Diluted EPS | $4.07 | $2.94 | +38.4% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, operating cash flow significantly increased to $1.50 billion, while investing activities used $773.5 million and financing activities used $236.1 million, primarily for stock repurchases Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,502,816 | $808,573 | | Net cash used in investing activities | ($773,541) | ($124,653) | | Net cash used in financing activities | ($236,148) | ($97,635) | | **Net increase in cash** | **$490,435** | **$586,714** | - The substantial increase in operating cash flow was primarily driven by a **$612.6 million increase in deferred revenue** and a **$91.4 million decrease in inventories**, compared to a much smaller deferred revenue increase and a large inventory build-up in the prior year period[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and provide further breakdown of financial statement items, including fair value measurements of $3.8 billion in marketable securities, a significant increase in deferred revenue to $2.1 billion, non-cancellable purchase commitments of $2.1 billion, and an ongoing stock repurchase program with $1.1 billion remaining authorization - The company faces risks from macroeconomic uncertainties, including inflation and supply chain disruptions, which could impact future demand and gross margins The shift in customer priorities towards AI may also affect investment plans for other technologies[25](index=25&type=chunk)[27](index=27&type=chunk) - As of June 30, 2024, the company had non-cancellable purchase commitments of **$2.1 billion**, with **$1.7 billion** expected within 12 months, primarily to secure components and manufacturing capacity[62](index=62&type=chunk) - The company is involved in a patent infringement lawsuit with WSOU Investments, LLC While a loss is not considered probable, it is deemed reasonably possible, but an estimate of potential loss cannot be made at this stage[64](index=64&type=chunk) - In May 2024, a new **$1.2 billion stock repurchase program** was authorized, expiring in May 2027 As of June 30, 2024, approximately **$1.1 billion** remained available for repurchases under this new program[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong H1 2024 performance to healthy demand, with 16.1% revenue growth and significant gross margin expansion to 64.3% due to lower inventory charges, while operating expenses grew slower, improving leverage and maintaining strong liquidity [Overview](index=21&type=section&id=Overview) Arista Networks is a leader in data-driven networking for large data centers, campuses, and routing environments, centered around its EOS software, with revenue from switching platforms and post-contract support concentrated with large cloud customers like Microsoft and Meta, leading to revenue variability based on their deployment cycles and increasing focus on AI infrastructure - The company's business is characterized by large purchases from a limited number of customers, leading to revenue unpredictability Sales to end customers Microsoft and Meta Platforms represented **18%** and **21% of total revenue in 2023**, respectively[89](index=89&type=chunk) - An increased focus on AI deployment by large customers is accelerating demand for advanced technology but has also led to cost reduction measures in non-AI capital expenditures, reducing demand visibility for some existing products[89](index=89&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) For Q2 2024, revenue increased 15.9% YoY to $1.69 billion, driven by a 12.8% rise in product revenue and a 35.3% increase in service revenue Gross margin expanded significantly to 64.9% from 60.6% in Q2 2023, mainly due to lower excess and obsolete inventory charges Operating expenses grew 12.3%, slower than revenue, resulting in a 32% increase in operating income The effective tax rate decreased to 13.6% from 16.1% due to higher stock-based compensation tax benefits Revenue and Gross Margin Analysis (Q2 2024 vs Q2 2023, in thousands) | Category | Q2 2024 | Q2 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$1,690,400** | **$1,458,924** | **$231,476** | **15.9%** | | Product Revenue | $1,423,271 | $1,261,537 | $161,734 | 12.8% | | Service Revenue | $267,129 | $197,387 | $69,742 | 35.3% | | **Gross Profit** | **$1,097,213** | **$884,129** | **$213,084** | **24.1%** | | **Gross Margin** | **64.9%** | **60.6%** | - | - | - The increase in gross margin for Q2 and H1 2024 was primarily driven by an improvement in product margins due to lower net excess/obsolete inventory and supplier liability charges compared to the same periods in 2023[100](index=100&type=chunk) Operating Expense Analysis (Q2 2024 vs Q2 2023, in thousands) | Category | Q2 2024 | Q2 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $267,482 | $229,676 | $37,806 | 16.5% | | Sales and marketing | $104,403 | $97,971 | $6,432 | 6.6% | | General and administrative | $25,755 | $26,420 | ($665) | (2.5)% | | **Total operating expenses** | **$397,640** | **$354,067** | **$43,573** | **12.3%** | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains robust, with cash, cash equivalents, and marketable securities totaling $6.3 billion as of June 30, 2024, and cash flow from operations for the first six months of 2024 was $1.5 billion, a substantial increase from the prior year, with material cash requirements including $2.1 billion in purchase obligations and an estimated $210 million incremental cash tax impact for 2024 - Principal sources of liquidity are cash, cash equivalents, and marketable securities, totaling approximately **$6.3 billion** as of June 30, 2024[108](index=108&type=chunk) - Material cash requirements include **$2.1 billion in non-cancellable purchase obligations**, **$61.6 million in lease obligations**, and approximately **$50 million** for a new property project in 2024[118](index=118&type=chunk)[119](index=119&type=chunk) - The requirement to capitalize and amortize R&D expenses under IRC Section 174 is expected to have an incremental cash tax impact of approximately **$210.0 million** for 2024[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to financial market risks, including changes in foreign currency exchange rates, interest rates, and equity investment risk, has not changed materially since December 31, 2023 - There have been no material changes in the company's exposure to market risk since the end of the previous fiscal year[126](index=126&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2024, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that as of June 30, 2024, the company's disclosure controls and procedures are effective at a reasonable assurance level[127](index=127&type=chunk) - No changes occurred during the quarter ended June 30, 2024, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[128](index=128&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company incorporates by reference the information on legal proceedings from Note 5 of the financial statements, which primarily discusses the ongoing patent infringement lawsuit with WSOU Investments, LLC - Information regarding legal proceedings is detailed in Note 5 of the financial statements, highlighting the WSOU Investments LLC patent case[132](index=132&type=chunk)[64](index=64&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company outlines numerous business risks, including dependence on a limited number of large customers, susceptibility to supply chain disruptions, intense competition, and the volatility of revenue and growth rates, alongside risks from rapid market evolution, intellectual property litigation, and cybersecurity threats - A substantial portion of revenue comes from large purchases by a limited number of customers, making results volatile and dependent on their spending cycles and priorities, particularly around AI[134](index=134&type=chunk)[146](index=146&type=chunk) - The company is susceptible to supply shortages and price fluctuations as key components come from sole or limited sources, which could disrupt product deliveries and harm gross margins[134](index=134&type=chunk)[148](index=148&type=chunk) - The networking market is intensely competitive, with pressure from larger, well-established companies, industry consolidation, and the potential for customers to adopt "white box" solutions[134](index=134&type=chunk)[160](index=160&type=chunk) - Managing the complex supply chain is a significant risk Insufficient supply can lead to lost sales, while excess inventory from inaccurate forecasting can harm gross margins, a risk heightened by long-lead-time purchase commitments[138](index=138&type=chunk)[183](index=183&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2024, Arista completed its previous $1.0 billion stock repurchase program and initiated a new $1.2 billion program, repurchasing 614,000 shares for approximately $172.0 million in total during the quarter - The prior **$1.0 billion stock repurchase program** was completed in April 2024 A new **$1.2 billion program** was authorized in May 2024[226](index=226&type=chunk) Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2024 | 308 | $266.12 | | May 2024 | 203 | $295.69 | | June 2024 | 103 | $292.04 | | **Total** | **614** | **-** | [Other Information](index=61&type=section&id=Item%205.%20Other%20Information) During the last fiscal quarter, two members of the Board of Directors, Kelly Battles and Charles Giancarlo, adopted Rule 10b5-1 trading arrangements for the potential sale of company stock - On June 13, 2024, Director Kelly Battles adopted a Rule 10b5-1 plan for the sale of up to **1,706 shares**[231](index=231&type=chunk) - On June 14, 2024, Director Charles Giancarlo adopted a Rule 10b5-1 plan for the sale of up to **24,000 shares**[231](index=231&type=chunk)

Exhibit 99.1 Arista Networks, Inc. Reports Second Quarter 2024 Financial Results SANTA CLARA, Calif.- July 30, 2024 -- Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client-tocloud networking for large AI, data center, campus and routing environments, today announced financial results for its second quarter ended June 30, 2024. Second Quarter Financial Highlights "On the heels of our June celebration of 10 years as a public company, I would again like to thank our customers, employee ...