Arista Networks Inc (NYSE:ANET) shares are trading lower Wednesday after the company reported fourth-quarter financial results. Here’s what you need to know.
Total revenue was up 25.3% on a year-over-year basis and up 6.6% compared to the prior quarter. Gross margin was 63.8% in the fourth quarter.
Arista said operating cash flow increased 95% year-over-year further strengthening the company's balance sheet. Arista plans to use cash flow to continue investing in strategic initiatives including the AI and Campus markets. The company ended the period with approximately $2.76 billion in cash and cash equivalents.
"2024 was a remarkable year of momentum resulting in a record $7 billion in revenue. 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," said Jayshree Ullal, chairperson and CEO of Arista Networks.
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Outlook: Arista Networks sees first-quarter revenue in the range of $1.93 billion to $1.97 billion versus estimates of $1.91 billion, according to Benzinga Pro. The company expects first-quarter gross margin of approximately 63%.
Analyst Changes:
ANET Price Action: Arista Networks shares were down 6.45% at $103.90 at the time of publication Wednesday, according to Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
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