Q2 2021 Financial Highlights & Product Launches
Appendix: GAAP to Non-GAAP Reconciliation
ARISTA
In thousands except per share data
GAAP gross profit
Q2'19
$
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Q1'21
Q2'21
GAAP gross margin
Stock-based compensation expense
390,191 $
64.1%
1,028
417,274 $
356,303 $
338,251 $
344,089 $
384,962 $ 414,584 $
425,272 $ 454,178
63.8%
64.5%
64.7%
63.7%
63.6%
63.9%
63.7%
64.2%
1,258
1,253
1,327
1,585
1,806
1,554
1,400
1,796
Intangible asset amortization
2,626
2,626
2,626
3,660
4,178
4,178
5,464
5,464
5,465
Non-GAAP gross profit
$
393,845 $
421,158 $
360,182 $
Non-GAAP gross margin
64.7%
64.4%
65.2%
343,238 $
65.6%
349,852 $
390,946 $
421,602 $
432,136 $
461,439
64.7%
64.6%
65.0%
64.7%
65.2%
GAAP income from operations
$
206,837 $
228,606 $
GAAP operating margin
34.0%
34.9%
Stock-based compensation expense
24,297
26,257
175,989 $
31.9%
26,435
149,662 $
28.6%
27,556
166,989 $
30.9%
32,922
188,395 $
31.1%
194,638 $
30.0%
36,469
40,095
206,292 $
30.9%
37,553
219,365
31.0%
44,944
Litigation expenses
Intangible asset amortization
514
3,499
3,293
333
3,084
Acquisition-related costs
Non-GAAP income from operations
$
Non-GAAP operating margin
235,147 $ 258,156
38.7%
39.4%
$
205,841
37.3%
4,902
11,860
193,980 $
37.1%
5,811
205,722 $
38.1%
5,811
858
231,533
38.2%
7,562
7,430
7,365
$
1,215
243,510
37.6%
$
251,275
37.6%
$
271,674
38.4%
GAAP net income
$
Stock-based compensation expense
189,251 $
24,297
208,895 $
26,257
Litigation expenses
514
260,692 $
26,435
333
138,431 $
27,556
144,793 $
32,922
168,375 $
36,469
182,958 $
40,095
180,366 $
37,553
196,888
44,944
(Gain) on investments in privately-held companies
Intangible asset amortization
3,499
(4,277)
3,293
(4,164)
3,084
Acquisition-related costs
4,902
11,860
5,811
5,811
858
7,562
7,430
7,365
1,215
Altera stock-based compensation tax charge
9,781
Tax benefits on intra-entity IP transfer
(85,819)
Tax benefits on stock-based awards
(23,455)
Tax effect of non-GAAP exclusions
Non-GAAP net income
$
(5,324)
198,563 $
(12,674)
(4,391)
217,103 $
(16,232)
(14,502)
(11,682)
(14,894)
(5,045)
(6,555)
(4,796)
183,448 $
161,692 $
167,048 $
(4,624)
191,995 $
(19,802)
(10,188)
(20,906)
(5,606)
(24,113)
(8,256)
197,676 $
198,837 $
216,828
GAAP diluted income per share
$
2.33 $
Non-GAAP adjustments to net income (loss) per share
0.11
Non-GAAP diluted income per share
$
2.44 $
2.59 $
0.10
2.69 $
3.25 $
1.73
$
1.83
$
(0.96)
0.29
0.28
2.12 $
0.30
2.31
$
2.27
$
2.47
0.18
0.23
0.25
2.29 $
2.02
$
2.11
$
2.42 $
2.49
$
2.50
$
2.72
GAAP and non-GAAP weighted diluted shares
81,335
80,753
80,261
79,939
79,298
79,313
79,261
79,623
79,710
Summary of non-GAAP adjustments:
Cost of revenue-product
Cost of revenue-service
Sales and marketing
Research and development
General and administrative
Other expense (income)
Income tax benefit
43
$
3,144 $
510
12,568
3,207 $
677
13,472
3,219 $
660
13,897
4,273 $
714
22,187
7,970
8,499
8,163
11,043
4,118
3,695
3,913
6,101
4,911
852
19,885
9,343
3,742
$
5,008 $
976
21,930
6,062 $
956
5,798 $
6,196
1,066
1,065
23,691
22,489
23,645
10,312
12,779
11,544
12,762
4,912
5,384
4,086
8,641
(4,277)
(4,164)
(18,998)
(17,065)
(107,096)
(21,057)
(16,478)
(19,518)
(29,990)
(26,512)
(32,369)
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