[ad_1]
Sundry Photography/iStock Editorial via Getty Images
Arista Networks (NYSE:ANET) rose 1.9% in early postmarket action Monday following fourth-quarter earnings where it easily beat Street expectations for revenue and profit and guided to ongoing strength to start 2023.
Revenues rose 54.7% year-over-year to $1.276B, vs. expectations for growth of just under 46%.
The company hit a non-GAAP gross margin of 61%, down from a prior-year 64.3%.
Net income jumped, however, to $445.1M from a prior-year $262.4M. Operating expenses had risen just under 17% year-over-year.
“Despite having to navigate industry wide supply chain challenges, FY22 was a year of record performance exceeding expectations in growth, revenue and profitability,” said CEO/President Jayshree Ullal.
“Our outstanding fourth quarter financial results epitomize our focus on profitable revenue growth, leveraging R&D and go-to-market investments across the business,” said Chief Financial Officer Ita Brennan.
Revenue breakout: Product, $1.097B (up 64%); Service, $178.7M (up 14.2%).
For the first quarter, the company’s guiding to revenue of $1.275B-$1.325B above expectations for $1.21B, along with a gross margin (non-GAAP) of about 60% and operating margin of about 40%.
Conference call to come at 4:30 p.m. ET.
[ad_2]
