Business Wire | Feb 18, 2021 04:06PM EST

Arista Networks, Inc. Reports Fourth Quarter and Year End 2020 Financial Results

Feb. 18, 2021

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 18, 2021--Arista Networks, Inc. (NYSE: ANET), an industry leader in cognitive cloud networking for large datacenter and campus environments, today announced financial results for its fourth quarter and year ended December 31, 2020.

Fourth Quarter Financial Results

* Revenue of $648.5 million, an increase of 7.1% compared to the third quarter of 2020, and an increase of 17.4% from the fourth quarter of 2019. * GAAP gross margin of 63.9%, compared to GAAP gross margin of 63.6% in the third quarter of 2020 and 64.5% in the fourth quarter of 2019. * Non-GAAP gross margin of 65.0%, compared to non-GAAP gross margin of 64.6% in the third quarter of 2020 and 65.2% in the fourth quarter of 2019. * GAAP net income of $183.0 million, or $2.31 per diluted share, compared to GAAP net income of $260.7 million, or $3.25 per diluted share in the fourth quarter of 2019. * Non-GAAP net income of $197.7 million, or $2.49 per diluted share, compared to non-GAAP net income of $183.4 million, or $2.29 per diluted share in the fourth quarter of 2019.

Full Year Financial Results

* Revenue of $2.32 billion, a decrease of 3.9% compared to fiscal year 2019. * GAAP gross margin of 63.9%, compared to GAAP gross margin of 64.1% in fiscal year 2019. * Non-GAAP gross margin of 65.0%, compared to non-GAAP gross margin of 64.7% in fiscal year 2019. * GAAP net income of $634.6 million, or $7.99 per diluted share, compared to GAAP net income of $859.9 million, or $10.63 per diluted share, in fiscal year 2019. * Non-GAAP net income of $718.4 million or $9.04 per diluted share, compared to non-GAAP net income of $786.8 million or $9.73 per diluted share, in fiscal year 2019.

"I am pleased with Arista's return to growth in Q4 2020. With our laser focus on customer success, pristine financials and transformative innovations, Arista is well positioned to continue our momentum in the post pandemic era," stated Jayshree Ullal, President and CEO of Arista Networks.

Commenting on the company's financial results, Ita Brennan, Arista's CFO said, "The Arista team showed great resilience and flexibility throughout 2020, maintaining operational excellence, while executing well on our market and product diversification initiatives."

Fourth Quarter Company Highlights

* Arista announced the 750 Series - Arista expands its Cognitive Campus portfolio with the new 750 Series modular chassis for enhanced security solutions and simplified automation workflows. * Arista Delivers Network Observability with DANZ Monitoring Fabric - Arista announced a network observability software, DANZ Monitoring Fabric (DMF), on Arista switching platforms for enterprise-wide traffic visibility and contextual insights. * Arista Unveils Attack Surface Assessment Service - Arista announced an Attack Surface Assessment, an advanced security service delivered through the recent acquisition of Awake Security.

Full Year Company Highlights

* Arista Networks acquired Awake Security, a Network Detection and Response (NDR) platform provider that combines artificial intelligence (AI) with human expertise to autonomously hunt and respond to insider and external threats. * Arista Networks acquired Big Switch Networks, a network monitoring and SDN (Software Defined Networking) pioneer. * Arista Networks recognized as a leader in The Forrester Wave(tm): Open, Programmable Switches for A Businesswide SDN, Q3 2020 with the top score in the strategy category. * Arista Networks Announced Optical Line System for 400G - The Arista OSFP-LS is a highly compact, low power and cost-effective solution for increasing bandwidth between data centers without the need for external optical line systems. * This is the sixth consecutive year Arista Networks has been recognized in the Leaders Quadrant of the 2020 Gartner Magic Quadrant for Data Center Networking published on 30 June 2020.

Financial Outlook

For the first quarter of 2021, we expect:

* Revenue between $630 million to $650 million; * Non-GAAP gross margin of 63% to 65%; and * Non-GAAP operating margin of approximately 37%

Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and certain non-recurring items. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis (see further explanation below under "Non-GAAP Financial Measures").

Prepared Materials and Conference Call Information

Arista executives will discuss the fourth quarter and year end 2020 financial results on a conference call at 1:30 p.m. Pacific time today. To listen to the call via telephone, dial (833) 968-2211 in the United States or +1 (778) 560-2896 from international locations. The Conference ID is 9269847.

The financial results conference call will also be available via live webcast on our investor relations website at https://investors.arista.com/. Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on Arista's investor relations website.

Forward-Looking Statements

This press release contains "forward-looking statements" regarding our future performance, including quotations from management, statements in the section entitled "Financial Outlook," such as estimates regarding revenue, non-GAAP gross margin and non-GAAP operating margin for the first quarter of fiscal year 2021, statements regarding the benefits of the introduction of new products and our leadership in cloud networking, and statements regarding Arista's ability to continue its momentum in the post pandemic era. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from those anticipated in or implied by the forward-looking statements including risks associated with: the impact of the COVID-19 pandemic on our business; the rapid evolution of the networking market; any failure to successfully pursue new products and service offerings and expand into adjacent markets; a decline in our revenue growth rate; unpredictability of our results of operations; interruptions or delays in shipments; adverse economic conditions or reduced information technology and network infrastructure spending; intense competition; expansion of our international sales and operations; investment or acquisition in other businesses; seasonality; our ability to attract new large end customers or sell products and services to existing end customers; our ability to increase market awareness of our company and new products and services; product quality problems; our ability to anticipate technological shifts and develop products to meet those technological shifts; insufficient component supply and inventory; our ability to protect, defend and maintain our intellectual property rights; vulnerabilities in our products and failure of our products to detect security breaches our intellectual property rights; and tax, tariff, import/export restrictions; and other future events. Additional risks and uncertainties that could affect us can be found in our most recent filings with the Securities and Exchange Commission including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. You can locate these reports through our website at https://investors.arista.com/ and on the SEC's website at https://www.sec.gov/. All forward-looking statements in this press release are based on information available to the company as of the date hereof and we disclaim any obligation to publicly update or revise any forward-looking statement to reflect events that occur or circumstances that exist after the date on which they were made.

Gartner "Magic Quadrant for Data Center and Cloud Networking," Andrew Lerner, et al, 30 June 2020. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein, (the "Gartner content") represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings announcement) and the opinions expressed in the Gartner Content are subject to change without notice.

Non-GAAP Financial Measures

This press release and accompanying table contain certain non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margins, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquisition-related intangible assets, certain non-recurring charges or benefits, and the income tax effect of these non-GAAP exclusions. In addition, non-GAAP financial measures exclude net tax benefits associated with stock-based awards, which include excess tax benefits, and other discrete indirect effects of such awards. The company uses these non-GAAP financial measures internally in analyzing its financial results and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the primary indicators management uses as a basis for its planning and forecasting for future periods.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations, and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-GAAP financial measures and a reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

The company's guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and other non-recurring items. The company does not provide guidance on GAAP gross margin or GAAP operating margin or the various reconciling items between GAAP gross margin and GAAP operating margin and non-GAAP gross margin and non-GAAP operating margin. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures on a forward-looking basis is not available because stock-based compensation expense is impacted by the company's future hiring and retention needs and the future fair market value of the company's common stock, all of which are difficult to predict and subject to constant change. The actual amount of stock-based compensation expense will have a significant impact on the company's GAAP gross margin and GAAP operating margin.

About Arista Networks

Arista Networks is an industry leader in cognitive cloud networking solutions for large data center and campus environments. Arista's award-winning platforms deliver availability, agility, automation analytics, and security through CloudVision(r) and Arista EOS(r), an advanced network operating system. For more information visit www.arista.com.

ARISTA, CloudVision, CloudEOS and MSS are among the registered and unregistered trademarks of Arista Networks, Inc. in jurisdictions around the world. Other company names or product names may be trademarks of their respective owners. Additional information and resources can be found at www.arista.com.

ARISTA NETWORKS, INC.

Condensed Consolidated Statements of Operations

(Unaudited in thousands, except per share amounts)

Three Months Ended Twelve Months Ended December 31, December 31,

2020 2019 2020 2019

Revenue:

Product $ 518,281 $ 447,498 $ 1,830,842 $ 2,021,150

Service 130,201 105,048 486,670 389,556

Total revenue 648,482 552,546 2,317,512 2,410,706

Cost of revenue:

Product 210,436 175,476 749,962 792,382

Service 23,462 20,767 85,664 73,986

Total cost of 233,898 196,243 835,626 866,368 revenue

Total gross profit 414,584 356,303 1,481,886 1,544,338

Operating expenses:

Research and 133,847 110,063 486,594 462,759 development

Sales and marketing 67,671 54,535 229,366 213,907

General and 18,428 15,716 66,242 61,898 administrative

Total operating 219,946 180,314 782,202 738,564 expenses

Income from 194,638 175,989 699,684 805,774 operations

Other income, net 5,542 11,183 39,179 56,496

Income before 200,180 187,172 738,863 862,270 income taxes

Provision for(benefit from) 17,222 (73,520 ) 104,306 2,403 income taxes

Net income $ 182,958 $ 260,692 $ 634,557 $ 859,867

Net incomeattributable to commonstockholders:

Basic $ 182,958 $ 260,589 $ 634,557 $ 859,444

Diluted $ 182,958 $ 260,594 $ 634,557 $ 859,468

Net income pershare attributable to commonstockholders:

Basic $ 2.41 $ 3.41 $ 8.35 $ 11.26

Diluted $ 2.31 $ 3.25 $ 7.99 $ 10.63

Weighted-averageshares used incomputing netincome per share attributable tocommonstockholders:

Basic 75,864 76,345 75,984 76,312

Diluted 79,261 80,261 79,465 80,879

ARISTA NETWORKS, INC.

Reconciliation of Selected GAAP to Non-GAAP Financial Measures

(Unaudited, in thousands, except percentages and per share amounts)

Three Months EndedDecember 31,

Twelve Months EndedDecember 31,

2020

2019

2020

2019

GAAP gross profit

$

414,584

$

356,303

$

1,481,886

$

1,544,338

GAAP gross margin

63.9

%

64.5

%

63.9

%

64.1

%

Stock-based compensation expense

1,554

1,253

6,272

4,637

Intangible asset amortization

5,464

2,626

17,480

10,503

Non-GAAP gross profit

$

421,602

$

360,182

$

1,505,638

$

1,559,478

Non-GAAP gross margin

65.0

%

65.2

%

65.0

%

64.7

%

GAAP income from operations

$

194,638

$

175,989

$

699,684

$

805,774

Stock-based compensation expense

40,095

26,435

137,042

101,280

Litigation expense

-

333

-

2,295

Intangible asset amortization

7,562

3,084

24,086

13,375

Acquisition-related costs(1)

1,215

-

13,933

-

Non-GAAP income from operations

$

243,510

$

205,841

$

874,745

$

922,724

Non-GAAP operating margin

37.6

%

37.3

%

37.7

%

38.3

%

GAAP net income

$

182,958

$

260,692

$

634,557

$

859,867

Stock-based compensation expense

40,095

26,435

137,042

101,280

Litigation expense

-

333

-

2,295

Intangible asset amortization

7,562

3,084

24,086

13,375

Acquisition-related costs

1,215

-

13,933

-

Gain on investment in privately-held companies

(4,164

)

-

(4,164

)

(5,427

)

Altera stock-based tax charge (2)

-

-

-

9,781

Tax benefit on intra-entity IP transfer (3)

-

(85,819

)

-

(85,819

)

Tax benefit on stock-based awards

(19,802

)

(16,232

)

(60,880

)

(89,415

)

Income tax effect on non-GAAP exclusions

(10,188

)

(5,045

)

(26,163

)

(19,093

)

Non-GAAP net income

$

197,676

$

183,448

$

718,411

$

786,844

GAAP diluted net income per share attributable to common stockholders

$

2.31

$

3.25

$

7.99

$

10.63

Non-GAAP adjustments to net income

0.18

(0.96

)

1.05

(0.90

)

Non-GAAP diluted net income per share

$

2.49

$

2.29

$

9.04

$

9.73

Weighted-average shares used in computing GAAP and Non-GAAP diluted net income per share attributable to common stockholders

79,261

80,261

79,465

80,879

Summary of Stock-Based Compensation Expense:

Cost of revenue

$

1,554

$

1,253

$

6,272

$

4,637

Research and development

23,184

13,897

79,913

53,068

Sales and marketing

11,188

7,705

34,944

29,168

General and administrative

4,169

3,580

15,913

14,407

Total

$

40,095

$

26,435

$

137,042

$

101,280

ARISTA NETWORKS, INC.

Reconciliation of Selected GAAP to Non-GAAP Financial Measures

(Unaudited, in thousands, except percentages and per share amounts)

Three Months Ended Twelve Months Ended December 31, December 31,

2020 2019 2020 2019

GAAP gross profit $ 414,584 $ 356,303 $ 1,481,886 $ 1,544,338

GAAP gross margin 63.9 % 64.5 % 63.9 % 64.1 %

Stock-basedcompensation 1,554 1,253 6,272 4,637 expense

Intangible asset 5,464 2,626 17,480 10,503 amortization

Non-GAAP gross $ 421,602 $ 360,182 $ 1,505,638 $ 1,559,478 profit

Non-GAAP gross 65.0 % 65.2 % 65.0 % 64.7 %margin



GAAP income from $ 194,638 $ 175,989 $ 699,684 $ 805,774 operations

Stock-basedcompensation 40,095 26,435 137,042 101,280 expense

Litigation expense - 333 - 2,295

Intangible asset 7,562 3,084 24,086 13,375 amortization

Acquisition-related 1,215 - 13,933 - costs^(1)

Non-GAAP income $ 243,510 $ 205,841 $ 874,745 $ 922,724 from operations

Non-GAAP operating 37.6 % 37.3 % 37.7 % 38.3 %margin



GAAP net income $ 182,958 $ 260,692 $ 634,557 $ 859,867

Stock-basedcompensation 40,095 26,435 137,042 101,280 expense

Litigation expense - 333 - 2,295

Intangible asset 7,562 3,084 24,086 13,375 amortization

Acquisition-related 1,215 - 13,933 - costs

Gain on investmentin privately-held (4,164 ) - (4,164 ) (5,427 )companies

Altera stock-based - - - 9,781 tax charge ^(2)

Tax benefit onintra-entity IP - (85,819 ) - (85,819 )transfer ^(3)

Tax benefit on (19,802 ) (16,232 ) (60,880 ) (89,415 )stock-based awards

Income tax effecton non-GAAP (10,188 ) (5,045 ) (26,163 ) (19,093 )exclusions

Non-GAAP net income $ 197,676 $ 183,448 $ 718,411 $ 786,844



GAAP diluted netincome per share $ 2.31 $ 3.25 $ 7.99 $ 10.63 attributable tocommon stockholders

Non-GAAPadjustments to net 0.18 (0.96 ) 1.05 (0.90 )income

Non-GAAP dilutednet income per $ 2.49 $ 2.29 $ 9.04 $ 9.73 share

Weighted-averageshares used incomputing GAAP andNon-GAAP diluted 79,261 80,261 79,465 80,879 net income pershare attributableto commonstockholders

Summary ofStock-Based CompensationExpense:

Cost of revenue $ 1,554 $ 1,253 $ 6,272 $ 4,637

Research and 23,184 13,897 79,913 53,068 development

Sales and marketing 11,188 7,705 34,944 29,168

General and 4,169 3,580 15,913 14,407 administrative

Total $ 40,095 $ 26,435 $ 137,042 $ 101,280

___________________(1)

Represents non-recurring costs associated with our acquisitions, which primarily include retention bonuses, professional and consulting fees, and restructuring costs.

(2)

Represents a discrete income tax expense related to stock-based compensation as a result of an opinion on Altera Corporation and Subsidiaries vs. Commissioner on Internal Revenue issued by the Court of Appeals for the Ninth Circuit on June 7, 2019.

(3)

Represents a one-time tax benefit of $85.8 million upon completion of an intra-entity transaction to sell our non-Americas economic and beneficial intellectual property rights in the current quarter.

___________________ Represents non-recurring costs associated with our acquisitions, which(1) primarily include retention bonuses, professional and consulting fees, and restructuring costs.

Represents a discrete income tax expense related to stock-based(2) compensation as a result of an opinion on Altera Corporation and Subsidiaries vs. Commissioner on Internal Revenue issued by the Court of Appeals for the Ninth Circuit on June 7, 2019.

Represents a one-time tax benefit of $85.8 million upon completion of an(3) intra-entity transaction to sell our non-Americas economic and beneficial intellectual property rights in the current quarter.

ARISTA NETWORKS, INC.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

December 31, 2020

December 31, 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

893,219

$

1,111,286

Marketable securities

1,979,649

1,613,082

Accounts receivable

389,540

391,987

Inventories

479,668

243,825

Prepaid expenses and other current assets

94,922

111,456

Total current assets

3,836,998

3,471,636

Property and equipment, net

32,231

39,273

Acquisition-related intangible assets, net

122,790

45,235

Goodwill

189,696

54,855

Investments

8,314

4,150

Operating lease right-of-use assets

77,288

87,770

Deferred tax assets

441,531

452,025

Other assets

30,071

30,346

TOTAL ASSETS

$

4,738,919

$

4,185,290

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

134,235

$

92,105

Accrued liabilities

143,357

140,249

Deferred revenue

396,259

312,668

Other current liabilities

94,392

52,052

Total current liabilities

768,243

597,074

Income taxes payable

53,053

55,485

Operating lease liabilities, non-current

72,397

83,022

Deferred revenue, non-current

254,568

262,620

Deferred tax liabilities, non-current

227,936

254,710

Other long-term liabilities

42,431

37,693

TOTAL LIABILITIES

1,418,628

1,290,604

STOCKHOLDERS' EQUITY:

Common stock

8

8

Additional paid-in capital

1,292,431

1,106,305

Retained earnings (1)

2,027,614

1,788,230

Accumulated other comprehensive income

238

143

TOTAL STOCKHOLDERS' EQUITY

3,320,291

2,894,686

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

4,738,919

$

4,185,290

ARISTA NETWORKS, INC.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

December 31, December 31, 2020 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 893,219 $ 1,111,286

Marketable securities 1,979,649 1,613,082

Accounts receivable 389,540 391,987

Inventories 479,668 243,825

Prepaid expenses and other current assets 94,922 111,456

Total current assets 3,836,998 3,471,636

Property and equipment, net 32,231 39,273

Acquisition-related intangible assets, net 122,790 45,235

Goodwill 189,696 54,855

Investments 8,314 4,150

Operating lease right-of-use assets 77,288 87,770

Deferred tax assets 441,531 452,025

Other assets 30,071 30,346

TOTAL ASSETS $ 4,738,919 $ 4,185,290

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 134,235 $ 92,105

Accrued liabilities 143,357 140,249

Deferred revenue 396,259 312,668

Other current liabilities 94,392 52,052

Total current liabilities 768,243 597,074

Income taxes payable 53,053 55,485

Operating lease liabilities, non-current 72,397 83,022

Deferred revenue, non-current 254,568 262,620

Deferred tax liabilities, non-current 227,936 254,710

Other long-term liabilities 42,431 37,693

TOTAL LIABILITIES 1,418,628 1,290,604

STOCKHOLDERS' EQUITY:

Common stock 8 8

Additional paid-in capital 1,292,431 1,106,305

Retained earnings ^(1) 2,027,614 1,788,230

Accumulated other comprehensive income 238 143

TOTAL STOCKHOLDERS' EQUITY 3,320,291 2,894,686

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,738,919 $ 4,185,290

(1)

We adopted new lease accounting guidance under Accounting Standard Codification Topic 842 - Leases ("ASC 842"), which resulted in a cumulative-effect adjustment of $3.7 million to retained earnings as of January 1, 2019.

(1) We adopted new lease accounting guidance under Accounting Standard Codification Topic 842 - Leases ("ASC 842"), which resulted in a cumulative-effect adjustment of $3.7 million to retained earnings as of January 1, 2019.

ARISTA NETWORKS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Twelve Months Ended December 31,

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

634,557

$

859,867

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and other

44,590

32,849

Noncash lease expense

16,970

16,179

Stock-based compensation

137,042

101,280

Deferred income taxes

(9,144

)

(75,741

)

Gain on investments in privately-held companies, net

(4,164

)

(5,427

)

Gain on sale of marketable securities

(9,432

)

-

Amortization (accretion) of investment premiums (discounts)

10,381

(6,771

)

Changes in operating assets and liabilities:

Accounts receivable, net

10,673

(60,210

)

Inventories

(235,318

)

20,927

Prepaid expenses and other current assets

13,846

54,259

Other assets

4,965

(8,112

)

Accounts payable

41,161

(1,937

)

Accrued liabilities

2,728

16,366

Deferred revenue

50,352

(11,939

)

Income taxes payable

8,805

23,523

Other liabilities

17,102

7,921

Net cash provided by operating activities

735,114

963,034

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from maturities of marketable securities

1,545,689

1,208,717

Purchases of marketable securities

(2,688,064

)

(1,503,893

)

Business combinations, net of cash acquired

(227,420

)

(1,365

)

Purchases of property, equipment and intangible assets

(15,384

)

(15,751

)

Investments in privately-held companies

3,399

28,220

Proceeds from sale of marketable securities

772,978

-

Net cash used in investing activities

(608,802

)

(284,072

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock under equity plans

57,556

57,378

Tax withholding paid on behalf of employees for net share settlement

(8,722

)

(9,200

)

Repurchase of common stock

(395,173

)

(266,142

)

Net cash used in financing activities

(346,339

)

(217,964

)

Effect of exchange rate changes

1,966

353

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(218,061

)

461,351

CASH, CASH EQUIVALENTS AND RESTRICTED CASH -Beginning of period

1,115,515

654,164

CASH, CASH EQUIVALENTS AND RESTRICTED CASH -End of period

$

897,454

$

1,115,515

View source version on businesswire.com: https://www.businesswire.com/news/home/20210218005919/en/

CONTACT: Investor Contacts:

CONTACT: Arista Networks, Inc. Charles Yager, 408-547-5892 Product and Investor Advocacy cyager@arista.com or Curtis McKee, 408-547-5549 Corporate and Investor Development curtism@arista.com