Arista's Approach to Secure Observability
Appendix: GAAP to Non-GAAP Reconciliation
In 000's except per share data
GAAP gross profit
Q4'21
Q1'22
Q2'22
Q3'22
Q4'22
YTD 2022
$ 522,714 $ 553,845 $
643,265 $
709,980 $
768,606 $ 2,675,696
GAAP gross margin
Stock-based compensation expense
Intangible asset amortization
63.4%
63.1%
61.2%
60.3%
60.3%
61.1%
2,246
1,309
2,312
2,992
3,075
9,688
5,464
5,721
6,012
6,820
6,821
25,374
Non-GAAP gross profit
Non-GAAP gross margin
$ 530,424 $
64.3%
560,875 $
651,589 $
719,792 $
778,502
63.9%
61.9%
61.2%
61.0%
$ 2,710,758
61.9%
GAAP income (loss) from operations $ 265,788 $ 277,987 $
362,853 $ 417,347 $ 468,919
GAAP operating margin
32.2%
31.7%
34.5%
35.5%
36.8%
$ 1,527,106
34.9%
Stock-based compensation expense
51,243
50,279
50,224
65,477
64,954
230,934
Intangible asset amortization
7,159
7,311
7,708
9,315
9,316
33,650
Acquisition-related costs
4,691
4,691
Non-GAAP income from operations $ 324,190 $
335,577 $
425,476 $ 492,139 $
543,189
Non-GAAP operating margin
39.3%
38.3%
40.4%
41.8%
42.6%
$ 1,796,381
41.0%
GAAP net income
$
239,295 $
272,259 $
299,099 $ 353,999 $
427,089
$ 1,352,446
Stock-based compensation expense
51,243
50,279
50,224
65,477
64,954
230,934
(Gain)/loss on investments
(28,497)
5,084
(708)
(3,358)
(27,479)
Intangible asset amortization
7,159
7,311
7,708
9,315
9,316
33,650
Acquisition-related costs
4,691
4,691
Tax benefits on stock-based awards
Tax effect of non-GAAP exclusions
Non-GAAP net income
(30,470)
(4,814)
$ 262,413 $
(30,964)
(1,880)
268,508 $
(17,725)
(27,636)
(37,177)
(113,502)
(6,401)
(8,524)
(15,677)
(32,482)
342,680 $
391,923 $
445,147
$ 1,448,258
GAAP diluted net income per share $
Non-GAAP adjustments
Non-GAAP diluted income per share $
0.75 $
0.07
0.85 $
(0.01)
0.94 $
1.13 $
1.35
$
4.27
0.82 $
0.84 $
0.14
1.08 $
0.12
0.06
0.31
1.25 $
1.41
$
4.58
319,753
319,652
316,581
314,401
315,201
316,459
GAAP and non-GAAP diluted shares
Summary of non-GAAP adjustments:
Cost of revenue-product
$
6,529 $
5,822 $
7,066 $
8,228 $
8,238 $
29,354
Cost of revenue-service
1,181
1,208
1,258
1,584
1,658
5,708
Research and development
27,605
27,745
30,111
37,698
37,174
132,728
Sales and marketing
13,575
14,530
16,291
18,598
18,027
67,446
General and administrative
9,512
8,285
7,897
8,684
9,173
34,039
Other expense (income)
(28,497)
5,084
(708)
(3,358)
(27,479)
Provision for income taxes
(35,284)
(32,844)
(24,126)
(36,160)
(52,854)
(145,984)
63
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