Arista Networks, Inc. Q4 FY2023 results: revenue $1.5 billion, up 20.8% on the year

Arista Networks, Inc. (ANET) reported revenue of $1.5 billion for Q4 FY2023, the quarter ended 31 December 2023, up 20.8% on the same quarter a year earlier. Net income was $614 million, up 43.7% on the year, and diluted earnings per share $1.93. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2024.

Revenue$1.5 billionup 20.8%

Net income$614 millionup 43.7%

Diluted EPS$1.93

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	1,540	1,509	n/a	n/a
Cost of revenue	541	567	n/a	n/a
Gross profit	999	942	n/a	n/a
Gross margin	64.9%	62.4%	n/a
Research and development	211	212	n/a	n/a
Operating income	640	603	n/a	n/a
Operating margin	41.5%	39.9%	n/a
Pre-tax income	694	645	n/a	n/a
Income tax	80.8	99.2	n/a	n/a
Effective tax rate	11.6%	15.4%	n/a
Net income	614	545	n/a	n/a
Net margin	39.8%	36.1%	n/a
Diluted EPS	$1.93	$1.72	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	526	699	n/a	n/a
Capital expenditure	6.0	11.2	n/a	n/a
Free cash flow	520	688	n/a	n/a
Free cash flow margin	33.8%	45.6%	n/a
Depreciation and amortisation	14.4	16.7	n/a	n/a
Share-based compensation	81.4	85.4	n/a	n/a
Buybacks	0.0	0.0	n/a	n/a
Diluted shares, weighted	317m	318m	n/a	n/a
Shares outstanding at period end	312m	311m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	9,947	9,069	n/a	n/a
Cash and equivalents	1,939	1,749	n/a	n/a
Receivables	1,025	833	n/a	n/a
Inventory	1,945	1,894	n/a	n/a
Goodwill	269	269	n/a	n/a
Operating lease liabilities	44.4	48.0	n/a	n/a
Shareholders' equity	7,219	6,506	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,509	1,540	1,571	1,690	1,811	1,930	2,005	2,205	2,308	2,488	2,709	3,036
Cost of revenue	567	541	570	593	649	699	729	766	818	924	1,032	1,125
Gross profit	942	999	1,001	1,097	1,162	1,231	1,276	1,439	1,490	1,564	1,677	1,910
Gross margin	62%	65%	64%	65%	64%	64%	64%	65%	65%	63%	62%	63%
R&D	212	211	208	267	236	285	266	296	326	348	344	348
Operating income	603	640	660	700	785	800	859	986	978	1,033	1,158	1,378
Operating margin	40%	42%	42%	41%	43%	41%	43%	45%	42%	42%	43%	45%
Pre-tax income	645	694	723	770	883	889	955	1,080	1,077	1,137	1,271	1,504
Tax rate	15%	12%	12%	14%	15%	10%	15%	18%	21%	16%	20%	19%
Net income	545	614	638	665	748	801	814	889	853	956	1,023	1,213
Net margin	36%	40%	41%	39%	41%	41%	41%	40%	37%	38%	38%	40%
Diluted EPS	$1.72	$1.93	$1.99	$2.08	$2.33	n/a	$0.64	$0.70	$0.67	$0.74	$0.80	$0.95
Operating cash flow	699	526	514	989	1,174	1,031	642	1,200	1,268	1,262	1,694	1,083
Capital expenditure	11.2	6.0	9.4	3.2	7.0	12.5	28.4	24.0	30.1	37.0	54.5	29.7
Free cash flow	688	520	504	986	1,167	1,019	613	1,176	1,238	1,225	1,639	1,053
Buybacks	0.0	0.0	62.7	172	65.2	124	787	196	0.0	620	0.0	0.0
Shares outstanding	311m	312m	314m	314m	315m	1,261m	1,257m	1,257m	1,259m	1,256m	1,259m	1,261m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 13 February 2024, accession 0001596532-24-000043: the filing on EDGAR. All of Arista Networks, Inc.'s filings: EDGAR company page.

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