Arista Networks Inc (ANET)

Business Description

Arista Networks is a leader in data-driven, client-to-cloud networking solutions for large data centers, campuses, and routing environments. The company specializes in delivering high availability, agility, automation, analytics, and security through its advanced network operating stack, with the Arista Extensible Operating System (EOS) at its core. Arista's product offerings are divided into three main categories: Core, Cognitive Adjacencies, and Network Software and Services, catering to a diverse customer base that includes large cloud customers, service providers, financial services, and government agencies .

Core - Provides high-speed data center and cloud networking systems and AI Ethernet switching platforms, serving as the primary revenue driver.
Cognitive Adjacencies - Offers campus wired and wireless products and advanced routing systems, enhancing connectivity and network performance.
Network Software and Services - Delivers subscription-based solutions like CloudVision and advanced threat sensors, focusing on network management and security.

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Jayshree Ullal	Chief Executive Officer, President, and Chairperson of the Board	October 2008	Jayshree Ullal has been serving as the CEO, President, and Chairperson of Arista Networks since October 2008. She became Chairperson of the Board in December 2023. Previously, she held various positions at Cisco Systems, Inc. .
Chantelle Breithaupt	Senior Vice President, Chief Financial Officer	February 12, 2024	Chantelle Breithaupt joined Arista Networks in January 2024 and was appointed as the Senior Vice President, Chief Financial Officer effective February 12, 2024. She previously served as CFO of Aspen Technology and held leadership roles at Cisco Systems Inc. and GE .
Kenneth Duda	Founder, Chief Technology Officer, Senior Vice President, Software Engineering, and Director	September 2011	Kenneth Duda is a founder of Arista Networks and has served as CTO and SVP of Software Engineering since September 2011. He became a board member in December 2023. Prior to Arista, he was CTO of There, Inc. and worked at Cisco Systems, Inc. .
John McCool	Chief Platform Officer, Senior Vice President of Engineering and Operations	March 2017	John McCool joined Arista Networks in March 2017. Before Arista, he was SVP and GM at DellEMC and CEO of Firetide, Inc. He also held various positions at Cisco Systems, Inc. .
Anshul Sadana	Chief Operating Officer (on leave, intends to resign effective May 21, 2024)	March 2019	Anshul Sadana has served as COO since March 2019. He previously held roles as Chief Customer Officer and SVP of Customer Engineering at Arista. He intends to resign effective May 21, 2024 .
Marc Taxay	Senior Vice President, General Counsel	March 2016	Marc Taxay has been SVP, General Counsel at Arista Networks since March 2016 and General Counsel since February 2013. He previously served as SVP and General Counsel of MedeAnalytics, Inc. .
Ashwin Kohli	Chief Customer Officer	May 2024	Ashwin Kohli serves as Chief Customer Officer, promoted as part of a restructuring in May 2024. He has been with Arista for over a decade .
Chris Schmidt	Chief Sales Officer	July 1, 2024	Chris Schmidt serves as Chief Sales Officer, effective July 1, 2024, to address global enterprise and provider opportunities alongside Ashwin Kohli .

Questions to Ask Management

Your 2025 outlook assumes some gross margin declines; can you elaborate on what's underlying these expectations and how customer mix and potential 10%+ customers factor into this?
Given the extended lead times for advanced semiconductors and your increased purchase commitments and on-hand inventory, how are you managing the risks of overstocking or obsolescence if AI deployments slow down?
With the progress of your five major AI trials being uneven and one customer moving slower than expected, how do you plan to mitigate the risks associated with such concentration, and what steps are you taking to expand beyond these key customers?
Considering the competitive landscape in AI networking, especially with NVIDIA's increased market share and offerings like Spectrum X, how do you plan to defend your position against competitors including NVIDIA, Cisco, Juniper, and Nokia?
You mentioned that WiFi is currently your weakest area in campus networking; what specific strategies are you implementing to improve in this segment, and how will you address the lack of sales coverage to fully capitalize on enterprise opportunities?

Program Details	Program 1	Program 2
Approval Date	October 2021	May 2024
End Date/Duration	Q4 2024	May 2027
Total Additional Amount	$1.0 billion	$1.2 billion
Remaining Authorization	$0.0 billion	$1.0 billion
Details	Prior Repurchase Program	New Repurchase Program

Competitors

Competitors mentioned in the company's latest 10K filing.

Cisco: Historically dominated the data center and campus networking markets .
Nvidia: Competes in the data center and campus networking markets .
Extreme Networks: Competes in the data center and campus networking markets .
Dell/EMC: Competes in the data center and campus networking markets .
Hewlett Packard Enterprise: Competes in the data center and campus networking markets; has entered into an agreement to acquire Juniper Networks .
Juniper Networks: Competes in the data center and campus networking markets .
Broadcom: Acquired VMware; competes in cloud networking solutions .
DarkTrace: Competes in the network detection and response (NDR) market .
ExtraHop: Competes in the NDR market .
Gigamon: Competes in the network packet broker (NPB) market .
Keysight: Competes in the NPB market .
Netscout: Competes in the NPB market .
AVIZ Networks: Competes in the NPB market .
White box networking vendors: Compete in the data center and campus networking markets .

Auditor

Name	Start Date	End Date	Reason for Change
Ernst & Young LLP	2008	Present	Current auditor