For its fourth quarter ended December 31, 2023, Arista Networks reported revenue of $1,540.4 million, an increase of 2.1% compared to the third quarter of 2023, and an increase of 20.8% from the fourth quarter of 2022. GAAP gross margin was 64.9%, compared to GAAP gross margin of 62.4% in the third quarter of 2023 and 60.3% in the fourth quarter of 2022. Non-GAAP net income amounted to $664.3 million, or $2.08 per diluted share, compared to non-GAAP net income of $445.1 million, or $1.41 per diluted share, in the fourth quarter of 2022.
The results were ahead of market expectations.
For full fiscal year 2023, Arista reported revenue of $5,860.2 million, an increase of 33.8% compared to fiscal year 2022. GAAP gross margin was 61.9%, compared to GAAP gross margin of 61.1% in fiscal year 2022. Non-GAAP net income amounted to $2,199.4 million or $6.94 per diluted share, compared to non-GAAP net income of $1,448.3 million or $4.58 per diluted share, in fiscal year 2022.
Commenting on the company's financial results, Ita Brennan, Arista’s outgoing CFO said, "Our outstanding performance for 2023 epitomizes our focus on profitable revenue growth, expanding our enterprise and campus footprint while leveraging R&D and go-to-market investments across the business."
Rwgarding its expectations for the first quarter of 2024, Arista expects:
- Revenue between $1.52 billion to $1.56 billion;
- Non-GAAP gross margin of approximately 62%; and
- Non-GAAP operating margin of approximately 42%.
