2023-05-01 16:30:03 ET
Arista Networks ( NYSE: ANET ) has dipped 1.4% in early postmarket action after first-quarter earnings where the equipment maker beat consensus on top and bottom lines and issued strong-side guidance while expecting some margin flattening in the current quarter.
Revenues rose nearly 54% year-over-year to top analyst expectations at $1.35B, up 5.9% from the fourth quarter.
Gross margin (non-GAAP) fell to 60.3% from a year-ago 63.9%, though, and from 61% in the fourth quarter.
Adjusted net income jumped to $452.5M from a year-ago $268.5M.
“We are pleased with the continued strong revenue growth in the quarter, and with the team’s focus on improving broader financial metrics as we move through the year," said Chief Financial Officer Ita Brennan.
Revenue breakout: Product, $1.17B (up 62%); Service, $179.3M (up 18%).
The company's also guiding for second-quarter gross margin of 61%, in line with analyst expectations.
It's guiding to Q2 operating margin of about 40% and revenues of $1.35B-$1.4B, on the high side of consensus for $1.35B.
Net cash provided by operations was $374.5M. Cash and equivalents rose to $956.3M from the prior quarter's $671.7M.
Conference call to come at 4:30 p.m. ET .
For further details see:
Arista Networks beats Q1 expectations, guides to ongoing strong revenue