Arista Networks (ANET) FY2023 results: revenue $5.9 billion, up 33.8% on the year

Arista Networks, Inc. (ANET) reported revenue of $5.9 billion for fiscal 2023, the year ended 31 December 2023, up 33.8% on the year before. Net income was $2.1 billion, up 54.3%, and diluted earnings per share $1.65. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2024.

Revenue

$5.9 billion

+33.8% on the year

FY2016FY2023

Operating margin

38.5%

34.9% a year earlier

FY2016FY2023

Net income

$2.1 billion

+54.3% on the year

FY2016FY2023

Diluted EPS

$1.65

+54.1% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	5,860	4,381	2,948	+33.8%
Cost of revenue	2,230	1,706	1,067	+30.7%
Gross profit	3,630	2,676	1,881	+35.7%
Gross margin	61.9%	61.1%	63.8%
Research and development	855	728	587	+17.4%
Operating income	2,257	1,527	925	+47.8%
Operating margin	38.5%	34.9%	31.4%
Pre-tax income	2,422	1,582	931	+53.1%
Income tax	335	229	90.0	+45.9%
Effective tax rate	13.8%	14.5%	9.7%
Net income	2,087	1,352	841	+54.3%
Net margin	35.6%	30.9%	28.5%
Diluted EPS	$1.65	$1.07	$0.66	+54.1%

$ million except per share.

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

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	2,034	493	1,016	+312.7%
Capital expenditure	34.4	44.6	64.7	-22.9%
Free cash flow	2,000	448	951	+346.2%
Free cash flow margin	34.1%	10.2%	32.3%
Cash from investing	-687	216	-926
Cash from financing	-83.7	-655	-361
Depreciation and amortisation	70.6	62.7	50.3	+12.6%
Share-based compensation	297	231	187	+28.5%
Buybacks	112	670	412	-83.2%
Diluted shares, weighted	1,269m	1,266m	1,277m	+0.2%
Shares outstanding at period end	1,249m	1,228m	1,231m	+1.7%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	7,219	4,886	3,979	+47.8%
Debt	0.0	0.0	0.0
Operating lease liabilities	44.4	44.0	56.5	+1.0%
Other liabilities	2,683	1,846	1,699	+45.4%
Total liabilities and equity	9,947	6,775	5,734	+46.8%
Fixed assets	102	95.0	78.6	+6.9%
Goodwill	269	266	188	+1.0%
Intangible assets	88.8	122	93.6	-27.4%
Investments	3,069	2,391	2,808	+28.3%
Cash and equivalents	1,939	672	621	+188.6%
Receivables	1,034	923	517	+12.1%
Inventory	1,945	1,290	650	+50.8%
Other assets	1,500	1,016	779	+47.6%
Total assets	9,947	6,775	5,734	+46.8%

10-K for the year ended 31 December 2023, filed 13 February 2024: the filing.