Q2 2021 Financial Highlights & Product Launches
2
Safe Harbor
ARISTA
Forward-Looking Statements - This presentation and accompanying oral presentation contain "forward-looking statements" regarding our
business plans and objectives, our growth drivers, potential growth opportunities, market potential by speed, the data center switching market, the
campus ethernet switching market, the NDR market, the expansion of the Cognitive Campus workspaces security and segmentation, the shift by
service providers to the cloud, our business initiatives, our cloud networking strategy and technology, the transition from 100GbE products to
400GbE products, competitive position, Third Quarter 2021 - Guidance, the benefits of our platforms, industry environment and potential market
opportunities and the introduction of new or acquired products, the benefits of acquisitions such as Awake Security, our leadership in cloud
networking, the continued momentum and diversification of our top verticals and product-lines and the evolution of the campus market. 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; insufficient component supply and inventory; increased costs of components;
manufacturing capacity impacted by COVID-19 and increased lead times; interruptions or delays in shipments; 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; 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; 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, our 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 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 of this presentation.
Non-GAAP Financial Measures - This presentation and accompanying oral presentation 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
table included in Appendix I, and investors are encouraged to review the reconciliation.
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