M&A - Arista Networks, Inc.

Form Type: 10-Q

Filing Date: 2025-05-07

Corporate Action: Acquisition

Type: Update

Accession Number: 000159653225000106

Filing Summary: For the quarterly period ended March 31, 2025, Arista Networks, Inc. reported a total revenue of $2,004.8 million, an increase from $1,571.4 million in the same quarter of the previous year. The product revenue rose significantly, amounting to $1,692.5 million, while service revenue also increased to $312.3 million. The gross profit for the quarter was reported at $1,276.1 million, reflecting a strong performance compared to $1,001.4 million last year. Operating expenses were up due to higher investments in research and development, as well as selling and marketing, totaling $417.3 million. The net income for the quarter was $813.8 million, compared to $637.7 million in the previous year, leading to a diluted net income per share of $0.64. The company has been involved in acquisition activities, evidenced by the growth in acquisition-related intangible assets and goodwill. Cash and cash equivalents stood at $1,845.1 million, down from $2,762.4 million in the previous quarter. Arista also executed a stock repurchase program, which included a cumulative repurchase of shares totaling 8.7 million, reflecting a commitment to return value to shareholders. The company continues to expand its market presence and enhance its service offerings in cloud networking solutions, demonstrating resilience in their growth strategy amidst competitive pressures.