Arista's Approach to Secure Observability
ARISTA
Appendix: GAAP to Non-GAAP Reconciliation
In 000's except per share data
GAAP gross profit
GAAP gross margin
Stock based compensation
Intangible asset amortization
Acquisition-related expenses
FY2018
FY2017
FY 2019
$
1,061,769 $ 1,373,377
$ 1,544,338
$ 1,481,886
FY 2020
FY 2021
$ 1,880,779
64.5%
63.8%
64.1%
63.9%
63.8%
4,353
5,087
4,637
6,272
7,444
3,824
10,503
17,480
21,857
3,138
Non-GAAP gross profit
$
Non-GAAP gross margin
64.8%
1,066,122 $ 1,385,426 $ 1,559,478
64.7%
$1,505,638
$1,910,080
64.4%
65.0%
64.8%
GAAP income (loss) from operations
$
470,272 $
GAAP operating margin
28.6%
12.7%
Stock based compensation
75,427
91,202
273,347 $ 805,774 $
33.4%
101,280
699,684 $ 924,739
30.2%
137,042
31.4%
186,875
Litigation expenses
40,352
6,566
2,295
Legal settlement
405,000
Acquisition-related expenses
7,745
Intangible asset amortization
5,110
13,375
13,933
24,086
29,235
Non-GAAP income from operations
$
Non-GAAP operating margin
586,051
35.6%
$
788,970 $ 922,724 $ 874,745 $ 1,140,849
36.7%
38.3%
37.7%
38.7%
GAAP net income (loss)
$
Stock based compensation
91,202
423,201 $ 328,115 $ 859,867 $
75,427
634,557 $ 840,854
(Gain)/Loss on investments
13,800
101,280
(5,427)
137,042
186,875
(4,164)
Acquisition-related expenses
7,745
13,933
Intangible asset amortization
5,110
Litigation expenses
40,352
6,566
13,375
2,295
24,086
29,235
Legal settlement
405,000
Impact of the U.S. Tax Cuts and Jobs Act
51,812
(12,632)
Tax benefits on stock-based awards
(111,542)
(92,675)
(89,415)
(60,880)
(115,154)
Tax benefits on intra-entity IP Transfer
(85,819)
Other non-recurring income tax charges
Tax effect of non-GAAP exclusions
Non-GAAP net income
9,781
(108,916)
$
(36,421)
(26,163)
442,829 $ 643,315 $ 786,844 $ 718,411 $
(19,093)
(26,813)
914,997
GAAP diluted net income per share
$
Non-GAAP adjustments
1.34 $
0.06
Non-GAAP diluted net income per share
$
1.40 $
1.01 $
0.98
1.99 $
2.66 $
(0.23)
2.43 $
2.00 $
2.63
0.26
0.24
2.26 $
2.87
GAAP and non-GAAP weighted diluted shares
315,908
323,376
323,516
317,860
319,238
Summary of non-GAAP adjustments:
Cost of revenue-product
64
-
Cost of revenue-service
Research and development
Sales and marketing
General and administrative
Legal settlement
Other expense (income)
Provision for income taxes
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$
2,142 $
2,211
9,254 $
12,772 $
20,254 $
2,795
2,368
3,498
42,184
49,220
53,068
87,693
24,919
4,382
101,798
17,953
26,281
32,040
43,477
51,871
51,289
23,073
16,702
20,139
33,140
405,000
13,800
(5,427)
(4,164)
(96,151)
(214,223)
(184,546)
(87,043)
(141,967)View entire presentation