Arista Networks (ANET) 10-K risk factor changes: FY2024 vs FY2023

- failure to successfully carry out new [removed: products] [added: product] and service offerings and expand into adjacent markets could adversely impact our business;

- future sales forecasts may [removed: be] materially [removed: inaccurate] [added: change,] which could result in incorrect levels of inventory and purchase commitments;

- failure [added: or inability] to protect or assert our intellectual property rights could harm our competitive position;

- [removed: risk that] our competitors could develop products that are similar to or better than ours because we provide access to our software and selected source code to certain partners.

- changes in our income taxes, effective tax rate or [removed: new] tax laws could adversely affect our results;

- any future decisions to reduce or discontinue repurchasing our common stock pursuant to our stock repurchase [removed: programs] [added: program] could cause the market price of our common stock to decline;

As a consequence of the concentrated nature of our customer base and their purchasing behavior, our quarterly revenue and results of operations have fluctuated from quarter to quarter and are difficult to [removed: estimate.][added: estimate and we expect the fluctuations to continue.]

This prioritization of AI related infrastructure investment has [added: at times] come in conjunction with the announcement of various cost reduction measures by such customers, including optimization and increased efficiency in non-AI related capital expenditures.

In some instances, such measures have had, and may continue to have, an impact on certain current or future projects and have reduced our visibility to customer [removed: demand, increased] [added: demand and may result in a reduction or uncertainty in the timing of orders from these large customers, which may negatively impact] our [added: revenue and increase the] risk of excess and obsolescence charges on [removed: existing products, and may result in reductions in future demand and negatively impact] our [removed: revenue, financial condition, business or prospects.][added: products.]

Moreover, because our sales are based primarily on purchase orders, [added: some of] our customers [removed: may] [added: have previously and could continue to] cancel, delay, reduce or otherwise modify their purchase commitments with little or no notice to us.

For example, due to manufacturing and supply chain disruptions resulting in increased lead times, customers [removed: had placed] [added: have, and may continue to place] orders based on longer planning horizons.

[removed: Our failure to accurately forecast demand combined with extended] [added: Extended] supplier lead times on some newer [removed: technologies,] [added: technologies] can [added: create greater pressure on our ability to forecast future demand, which can] lead to [added: excess inventory or] product shortages [removed: which could lead] [added: and] to delays in fulfilling current and future purchase orders that can impede production by our customers and harm our customer relationships.

Moreover, the AI market is new and customers continue to evaluate their opportunity in this market, [added: recent advances in network architecture may result in increased efficiencies] and [added: lowering of infrastructure spending and] the potential demand for [added: our] AI Ethernet switches may not develop as anticipated or at all.

We expect that such concentrated purchases will continue to contribute materially to our revenue for the foreseeable [added: future and that our results of operations may fluctuate materially as a result of such larger customers’ buying patterns.]

Weak domestic or global economic conditions and continuing economic uncertainty, fear or anticipation of such conditions, a recession, [added: geopolitical pressures, including] international trade disputes, global pandemics such as the COVID-19 pandemic, or a reduction in information technology and network infrastructure spending or a deterioration of the financial performance, condition or prospects of our [removed: customers even if economic conditions improve,] [added: customers,] could adversely affect our business, financial condition, results of operations and prospects in a number of ways, including longer sales cycles, reduced demand or lower prices for our products and services, higher default rates among our channel partners, reduced unit sales and lower or no growth.

While [removed: all] [added: some of] our [removed: markets] [added: customers] may be adversely affected by negative macroeconomic conditions, the impact may be particularly significant in our enterprise market where we are seeking to increase our penetration into this market.

In addition, the global macroeconomic environment has been negatively affected by, among other things, the uncertainty in the global banking and financial services markets, epidemics, instability in global economic markets, [added: the new U.S. presidential administration,] increased [added: uncertainty associated with recent and scheduled increases in] U.S. trade tariffs [added: in the context of escalated] and [added: unresolved] trade disputes [added: and tensions] between the U.S., [removed: China] [added: China, Mexico, Canada] and other countries, inflationary pressures, higher interest rates, instability in the global credit markets, the impact and uncertainty regarding global central bank monetary policy, instability in the geopolitical environment, the Russia-Ukraine and Israel-Hamas conflicts, [removed: the Houthi attacks on marine vessels in the Red Sea,] political tensions between Taiwan and China, political demonstrations, and foreign governmental debt concerns which have caused, and are likely to continue to cause, uncertainty and instability in local economies and in global financial markets.

[removed: Continuing or] worsening economic instability or the deterioration of the financial performance, condition or prospects of our customers could result in a cancellation of, or defaults in the payments for, such orders or otherwise adversely affect spending for IT, network infrastructure, systems and tools, and limit our ability to forecast future demand for our products, which could reduce expected revenue or result in a write-down of excess or obsolete inventory.

[removed: Because some of the key components in our products come from sole or limited sources of supply, we] [added: We] have entered into significant purchase commitments and are susceptible to supply shortages, extended lead times or supply changes, which could disrupt or delay our scheduled product deliveries to our customers and may result in the loss of sales and customers.

Our products rely on components, including merchant silicon chips, integrated circuit components, printed circuit boards, connectors, [added: optics, cables,] custom-tooled sheet metal and power supplies that we purchase, or our contract manufacturers purchase on our behalf from a limited number of suppliers, including certain sole source providers.

Generally, we do not have guaranteed supply contracts with our component suppliers, and our suppliers [removed: have suffered and] [added: have, or in the future] could continue [removed: to] [added: to,] suffer shortages, require longer lead times, delay shipments, prioritize shipments to other vendors, [added: reject orders,] decommit orders, increase prices, impose expedite fees or cease manufacturing such products or selling them to us at any time.

Supply of these components worldwide was and could continue to be adversely affected by supply constraints, as well as industry consolidation and geopolitical conditions such as international trade wars [removed: like the U.S. trade war with China, the Russia-Ukraine conflict, Israel-Hamas conflict, the Houthi attacks on marine vessels in the Red Sea,] and increased political [removed: tensions in Russia, Europe or Asia.][added: tensions.]

Such shortages, increased component lead times, reduced allocations of components and [added: rejections or] decommitments of orders have resulted in and may continue to result in increased component prices, fewer sourcing options, unpredictability of supply, prolonged manufacturing disruptions and increased product lead times, which has impacted and may [removed: continue to] [added: in the future] adversely impact our revenue and gross margins.

Although we have entered into significant purchase commitments to support long-term customer demand, if we are unable to obtain sufficient quantities of any of these components on commercially reasonable terms or in a timely manner, or if we are unable to obtain alternative sources for these components, shipments of our products could be delayed or halted entirely, [removed: or we may be required to redesign our products.]

Our operating cash flows have also been and may [removed: continue to] [added: in the future] be negatively impacted by [removed: significant] [added: an increase of] component inventories on hand or at our contract manufacturers.

Our product development efforts are also dependent upon the success of our continued collaboration with our key merchant silicon vendors such as [removed: Broadcom and Intel.][added: Broadcom.]

The merchant silicon vendors may not be successful in continuing to innovate, [added: develop products that outperform their competitors or] meet [added: the requirements of our customers, meet] deadlines for the release of their products or produce a sufficient supply of their products.

Moreover, these vendors may not collaborate with us or may become competitive with us by selling merchant silicon for “white boxes” [added: with open-source network operating systems] or other products to our customers.

If our key merchant silicon vendors do not continue to innovate, [added: develop products that outperform their competitors or fail to meet the requirements of our customers,] if there are delays in the release of their products or supply shortages, if they no longer collaborate in such fashion or if such merchant silicon is not offered to us on commercially reasonable terms, our products may become less competitive, our own product launches could be delayed or we may be required to redesign our products to incorporate alternative merchant silicon, which could result in lost sales, reduce gross margins, damage to our customer relationships or otherwise have a material effect on revenue and business, financial condition, results of operations and prospects.

We have experienced annual revenue growth rates of [added: 19.5%,] 33.8%, 48.6%, [removed: 27.2%,] and [removed: -3.9%] [added: 27.2%] in [added: 2024,] 2023, [removed: 2022, 2021] [added: 2022] and [removed: 2020,] [added: 2021,] respectively.

Other factors may also contribute to declines in our growth rates, including changes in demand for our products and services, particularly from our large customers, the deterioration of the financial performance, condition or prospects of our large customers, changes in capital spending by our large customers, increased competition, price sensitivities from our customers to increases in our pricing, our ability to successfully manage our expansion or continue to capitalize on growth opportunities, the maturation of our business, [removed: the Russia-Ukraine and Israel-Hamas conflicts, the Houthi attacks on marine vessels in the Red Sea, a potential global economic downturn or] [added: geopolitical pressures,] recession [removed: that would particularly impact our enterprise customers, uncertainty in the global banking and financial service markets and other general economic and international trade conditions such as political tensions between Taiwan and China and international trade wars involving the U.S. and China] [added: risks] and [removed: other countries,] [added: monetary policy shifts,] and our ability to be successful in the AI market and adjacent markets, such as campus switching, [removed: WiFi] [added: Wi-Fi] networking markets and network security markets.

- general economic conditions, both domestically and in foreign markets, and disruptions in our business and the markets due to, among other things, recessionary risks and a global economic downturn, higher interest rates, monetary policy shifts, inflationary pressures, supply chain and labor shortages, the [added: new U.S. presidential administration, the] recent banking crisis, [removed: potential disruptions from the Russia-Ukraine] and [removed: Israel-Hamas conflicts, the Houthi attacks on marine vessels in the Red Sea, political tensions between Taiwan and China and international trade wars involving the U.S. and China and other countries;][added: geopolitical pressures;]

- [removed: our inability to fulfill our customers’ orders,] the [removed: cancellation of orders, the] reduction in future demand for our products by our customers or increased difficulty in adding new customers due to the unavailability or unpredictable supply of inventory, supply chain delays, access to key commodities or technologies, manufacturing disruptions or other events that impact our manufacturers or their suppliers;

- [removed: deferral, reduction or cancellation of orders from customers due to long lead times,] announcements by us or other competitors of new products or product enhancements, warranty returns, general economic conditions or other factors;

- the budgeting, sales, implementation and refresh cycles, purchasing practices, technology roadmaps and priorities and buying patterns of customers, including large customers who generally receive lower pricing terms due to volume discounts and who may or may not make large bulk purchases in certain quarters or who may elect to re-assign [added: allocations to multiple vendors based upon specific network roles or projects or who may be placing orders based on longer planning horizons to ensure supply;]

- increased expenses resulting from increases in component, production and logistics costs resulting from factors such as global inflationary pressures, shortages in supply for semiconductors, and China's controls on the use of certain products and on the export of metals used in semiconductor manufacturing, or the tariffs imposed by the U.S. on goods from other countries and tariffs imposed by other countries on U.S. goods, including the tariffs implemented by the U.S. government on various imports from [removed: China;][added: China and Mexico;]

- the inclusion of any acceptance provisions in our customer contracts [removed: or] [added: and increased customer trials, and] any delays in [removed: acceptance] [added: acceptance, or rejection, or any return,] of those products;

- decisions by potential customers to purchase our networking solutions from larger, more established vendors, white box vendors [added: with open-source network operating systems] or their primary network equipment vendors;

- disruptions caused by pandemics, such as the COVID-19 pandemic, and the government restrictions in response to [removed: the pandemic;][added: pandemics;]

A substantial portion of our business and revenue depends on the growth and evolution of the networking market, including the evolution of the market for AI networks and the future deployment of Ethernet networking solutions in these AI [added: networks.]

- primarily reliant upon a predominant merchant silicon vendor;

For example, sales to our end customer Microsoft represented 20%, 18% and 16% of our total revenue for the years ended 2024, 2023 and 2022 respectively.

And sales to our end customer Meta Platforms represented 15%, 21% and 26% of our total revenue, respectively for the years ended 2024, 2023 and 2022.

In addition, although the focus on deployment of AI enabled solutions has driven increased demand for networking, the long-term trajectory is unknown.

As such, demand estimates for our new products are difficult to forecast and can create volatility in our revenue.

In addition, fiscal 2024 was marked by a year of new product introductions and expanded use cases, particularly in the AI Ethernet market, and we expect this to continue into fiscal 2025.

This has resulted in increased customer trials and contracts with acceptance periods, and an increase in the volatility and magnitude of our product deferred revenue balances, which in turn may create variability in our revenue results on a quarterly and annual basis.

In addition, if we are not able to satisfy the requirements under customer trials or contracts with acceptance periods, we may be required to accept product returns from our customers, which would prevent us from recognizing revenue on such transactions and may result in the write-down of inventory.

Continuing or

Some of the key components in our products come from sole or limited sources of supply.

In particular, we are primarily reliant upon our predominant merchant silicon vendor, Broadcom, for our switching chips.

or we may be required to redesign our products.

Recent technologies, such as generative AI models, have emerged, and while they have driven increased demand for networking, the long-term trajectory is unknown and it is difficult for us to predict the demand for such new technologies.

Customers may overestimate demand for their AI build outs and cancel, delay, reduce or otherwise modify their purchase commitments with little or no notice to us.

In addition, customer may implement changes to their network architecture to improve efficiencies and reduce demand for our products.

As such, demand estimates for our new products are difficult to forecast and create volatility in our revenue.

In addition, given the timing and prioritization of customer orders and shipment patterns, near term revenue trends may not be reflective of current demand levels.

Furthermore, any prolonged economic disruptions or deterioration in the global economy could have a negative impact on demand from our customers in future periods, particularly in the enterprise market where we are continuing to expand our penetration.

which may result in reductions in overall demand from these customers in future periods and negatively impact our revenue, financial condition, business or prospects.

- our inability to fulfill our customers’ orders, the deferral, reduction or cancellation of orders or the delay in shipment of our products;

- a reduction, or uncertainty in the timing, of orders from our large customers;

In particular, recent technologies, such as generative AI models, have emerged, and while they have driven increased demand for networking, the long-term trajectory is unknown and it is difficult for us to predict the demand for such new technologies.

Customers may overestimate demand for their AI build outs and cancel, delay, reduce or otherwise modify their purchase commitments with little or no notice to us.

In addition, customers may implement changes to their network architectures to improve efficiencies and reduce demand for our products.

As such, demand estimates for our new products are difficult to forecast and create volatility in our revenue and inventory levels.

For example, with our most recently introduced 800 GbE and AI focused Ethernet

Fiscal 2024 was marked by a year of new product introductions and expanded use cases, particularly in the AI Ethernet market, and we expect this to continue into fiscal 2025.

This has resulted in increased customer trials and contracts with acceptance periods, and an increase in the volatility and magnitude of our product deferred revenue balances, which in turn may create variability in our revenue results on a quarterly and annual basis.

In addition, if we are not able to satisfy the requirements under customer trials or contracts with acceptance periods, we may be required to accept product returns from our customers, which would prevent us from recognizing revenue on such transactions and may result in the write-down of inventory.

In addition, when we introduce new products, we expect that it will take time for manufacturing to ramp production and fulfill customer demand.

In addition, if business were subject to sustained economic

In addition, any supply chain shortages and manufacturing

Additionally, because we are introducing new products in markets such as the AI Ethernet market, some products are subject to trials, testing, qualification and acceptance periods.

products.

that could expose us to losses which could seriously harm our business, financial conditions, results of operations and prospects.

Selling to government entities requires us to comply with various regulations that are not applicable to sales to non-government

In addition, China imposed additional export controls on critical metals including tungsten, tellurium, bismuth, molybdenum, and indium (and related compounds) in February 2025 as part of its response to the United States’s imposition of an additional 10% tariff on products from China.

In addition, in order to meet customer lead times, we have, and may continue to expedite the supply of components and make incremental investments in our supply chain to increase our capacity for manufacturing products, which increases our product costs.

Our business is emerging from a period of unprecedented global supply chain disruptions.

Throughout this period, we made significant supply chain investments, including incremental purchase commitments for long lead time components in response to extended visibility to deployment plans from our customers.

For example, sales to our end customers Microsoft and Meta Platforms in fiscal 2023 and 2022 collectively represented 39% and 42% of our total revenue, respectively, whereas sales to Microsoft in fiscal 2021 amounted to 15% of our revenue and sales to Meta Platforms in fiscal 2021 represented less than 10% of our revenue.

future and that our results of operations may fluctuate materially as a result of such larger customers’ buying patterns.

We have experienced volatility in demand from certain of our large customers, and some of our large customers have announced various cost reduction measures or are considering changing technology roadmaps and priorities including the need for the rapid deployment of AI and related technologies, which have had and could continue to have, an impact on certain current or future projects and have reduced our visibility to demand for these customers, which may result in reductions in overall demand from these customers in future periods and negatively impact our revenue, financial condition, business or prospects.

allocations to multiple vendors based upon specific network roles or projects or who may be placing orders based on longer planning horizons to ensure supply;

networks.

In particular, the market for AI applications is new and our customers are continuing to evaluate their opportunity in this market.

will be adversely affected, and our revenue could decrease.

Customers may also increase their adoption of

- greater risk of unexpected changes in tariffs imposed by the U.S. and other countries;

We may not

in lower margins for the period in which such sales occur.

Our failure or the failure of our channel

If we fail to effectively manage our existing sales channels, or if our channel partners are unsuccessful in fulfilling the orders for our products, if we are unable

introduced or when new versions are released.

of our present and future products and services and materially and adversely affect our business, financial condition, results of operations and prospects.

Industry wide supply chain shortages resulted in extended lead time for components, which required us to extend the lead time horizon of our demand forecast for such components and increased our purchase commitments for long lead time components.

reductions in capital expenditures and other efficiency efforts which may result in a cancellation of orders or reduce demand for our products.

Although we have seen a recent decline in our purchase commitments, we have also experienced increased inventory levels.

to cease use or practice of such intellectual property.

protection for certain innovations and may choose not to pursue patent protection in certain jurisdictions.

among other things, in the production of semiconductors, optical components, and other electronic devices including germanium and gallium.

In some circumstances, we must obtain regulatory

For example, in 2022, the United States passed the Inflation Reduction Act, which made a number of changes to the Internal Revenue Code of 1986, as amended ("IRC"), including a 15% corporate minimum tax on adjusted financial statement income of certain large companies.

The impact of these provisions on our effective tax rate will depend on additional guidance to be issued by the Treasury Secretary.

We are currently evaluating the impact of these provisions on our effective tax rate.

While we do not anticipate any materially adverse impacts to our effective tax rate, we cannot provide any assurances that these provisions will not have a materially adverse impact on our effective tax rate.

Further, beginning in 2022, the Tax Cuts and Jobs Act of 2017 (“TCJA”) eliminated the option to deduct research and development expenditures currently and requires taxpayers to capitalize and amortize them over five years for U.S. incurred expenditures or fifteen years for non-U.S. incurred expenditures, pursuant to IRC Section 174.

However, recently proposed tax legislation, if enacted, would restore the ability to deduct currently domestic research and development expenditures through 2025 and would retroactively restore this benefit for 2022 and 2023.

interpretation of existing tax laws or adverse outcomes resulting from examination of our tax returns by tax authorities will not have an adverse effect on our business, financial condition, results of operations and prospects.

For example, the EU has implemented the General Data Protection Regulation (“GDPR”).

The European Commission subsequently issued new SCCs that address certain of the CJEU’s concerns and which are required to be implemented.

The CCPA requires covered companies to, among other things, provide new disclosures to California consumers, and affords such consumers new abilities to opt-out of certain sales of personal information.

Further, a new privacy law, the California Privacy Rights Act (“CPRA”), was approved in the November 3, 2020 election.

The CPRA modified the CCPA significantly, creating obligations relating to consumer data that commenced on January 1, 2022 and went into effect on July 1, 2023.

The CPRA has resulted in further uncertainty and may require us to incur additional costs and expenses in an effort to comply.

models.

activities of these employees, agents, representatives, business partners or third-party intermediaries even if we do not explicitly authorize such activities.

business of our manufacturers, logistics providers, partners or customers or the economy as a whole.

Arista Networks is an industry leader in data-driven, client to cloud networking for large [added: AI,] data center, campus and routing environments.

Since Arista’s inception, our founders have reimagined cloud networks for performance, scale and programmability with a focus on differentiating in three ways: uncompromising [removed: quality, advanced open and standards-based technology and a] [added: reliability built on the foundation of] robust quality assurance [removed: capability built on] [added: capabilities with] a suite of automated [removed: diagnostics.][added: diagnostics, advanced open and standards-based technology and intelligent automation to decrease the manual workload on the operator.]

At the core of Arista’s platform is [removed: Arista’s] [added: Arista] EOS, a modernized publish-subscribe state-sharing networking operating system.

We have experienced unpredictability in the timing of orders from these large customers primarily due to the time it takes these customers to evaluate, test, qualify and accept our newer products, the overall complexity of these large orders and changes in demand patterns specific to these customers, including reductions in [added: or changes in mix of] capital expenditures by these customers and the impact of cost reduction and other efficiency efforts by these customers.

[removed: For example,] [added: And] sales to our end [removed: customers Microsoft and] [added: customer] Meta Platforms represented [removed: 18% and] [added: 15%,] 21% [removed: of our total revenue, respectively, in fiscal 2023, 16%] and 26% of our total revenue, [removed: respectively, in fiscal 2022 and, 15% and less than 10% of our total revenue,] respectively [removed: in fiscal 2021.][added: for the years ended 2024, 2023 and 2022.]

[removed: In addition,] [added: We believe] an increased focus on the deployment of AI enabled solutions by [removed: these] [added: our large] customers has accelerated the need for advanced technology offerings including some offerings from potential new market entrants.

This prioritization [added: and acceleration] of AI related infrastructure investment has [added: at times] come in conjunction with [added: a reduction or changes in] the [removed: announcement] [added: mix] of [added: previously planned purchases and] various cost reduction [removed: measures,] [added: measures by these customers,] including optimization and increased efficiency in non-AI related capital expenditures.

In some instances, such measures have had, and may continue to have, an impact on certain current or future projects and have reduced our visibility to customer [removed: demand, increased our risk of excess and obsolescence charges on existing products,] [added: demand] and may result in [removed: reductions] [added: a reduction or uncertainty] in [removed: future demand] [added: the timing of orders from these large customers] and [removed: negatively impact our revenue, financial condition, business or prospects.][added: increase the risk of charges for excess and obsolete inventory.]

[removed: Furthermore,] [added: In addition,] we typically provide pricing discounts to large customers, which reduces gross margins for the period in which such sales occur.

[added: We must also continue to develop] market-leading products and [added: software] features that address the [added: changing] needs of our existing and new customers, and increase sales in the [added: cloud, AI and] enterprise data center [removed: switching,] [added: ethernet switching/routing markets,] and campus workspace markets.

Global economic and business activities continue to face widespread macroeconomic uncertainties, including [added: the effects of, among other things,] inflation, monetary policy shifts, recession risks, [removed: and] potential supply chain [removed: and other disruptions such as the Russia-Ukraine and Israel-Hamas conflicts, the Houthi attacks on marine vessels] [added: disruptions, changes] in the [removed: Red Sea, and the] U.S. [added: administration, geopolitical pressures and escalating international] trade [removed: war with China.][added: measures.]

[removed: As we exit 2023, the] [added: Our] business is emerging from a period of unprecedented global supply chain disruptions.

[removed: This increased] [added: Increased] capacity has allowed us to ship products against previously committed demand/deployment plans and accelerate some deployments where needed, while trying to [removed: limit building customer inventory,] [added: balance our customers' requirements] and [removed: to some extent balancing customer] lead times with [removed: those currently experienced from] [added: the availability of key components and products and lead times of] our key [removed: suppliers.][added: suppliers and contract manufacturers.]

As a result, some shipments against these previously committed demand/deployment plans have extended into [removed: 2024.][added: 2025.]

As the global supply chain has experienced some improvements and as customer lead times have been reduced from their peak, we have seen and expect to continue to see a commensurate reduction in visibility to customer demand and a gradual return to shorter demand-planning [removed: horizons resulting in lower demand levels.][added: horizons.]

Given [removed: these shipment] [added: the timing] and [removed: order] [added: prioritization of customer orders and shipment] patterns, [added: as well as the timing and outcome of customer trials and contracts with acceptance periods,] near term revenue trends may not be [removed: solely] reflective of current demand levels, [removed: but] [added: and] as discussed above will [added: also] benefit from demand/deployment plans that [removed: had] [added: have] been previously committed.

The [removed: larger] magnitude of these balances, combined with a reduction in customer demand-planning horizons and shifting customer product priorities, has resulted in increased risk that we may not be able to sell all of this inventory, which in turn has [removed: resulted, and may in the future result,] [added: resulted] in additional excess and obsolete inventory and supplier liability charges.

In addition, inflation pressure in our supply [removed: chain,] [added: chain and] scarcity of some materials needed to build our products [removed: and disruptions to our manufacturing process] have increased our cost of revenue and have impacted, and may continue to negatively impact our gross margin.

The extent of the impact of these factors on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, will depend on future developments, the impact on our customers, partners, employees, contract manufacturers and supply [added: chain, all of which continue to evolve and are unpredictable.]

In addition, any continued or renewed disruption in manufacturing and supply [added: and new or enhanced tariffs imposed by the U.S. and other countries] resulting from these factors could negatively [removed: impact our business.]

[removed: In addition,] [added: Furthermore,] any prolonged economic disruptions or further deterioration in the global economy could have a negative impact on demand from our customers in future periods, particularly in the enterprise market where we are continuing to expand our penetration.

[removed: Cost of service revenue primarily consists of] personnel and other costs associated with our global customer support and services organizations.

Gross margin, or gross profit as a percentage of revenue, has been and will continue to be affected by a variety of factors, including pricing pressure on our products and services due to competition, the mix of sales to large customers who generally receive lower pricing, the mix of products sold, manufacturing-related costs, including costs associated with supply chain sourcing activities, merchant silicon costs, and excess/obsolete inventory [removed: charges, including charges for excess/obsolete component inventory held by our contract manufacturers] and [removed: suppliers.][added: supplier liability charges.]

Other income (expense), net consists primarily of interest income from our cash, cash equivalents and marketable securities, [added: and] gains and losses on our [removed: marketable securities and] strategic [removed: investments, and foreign currency transaction gains and losses.][added: investments.]

We expect other income (expense), net may fluctuate in the future as a result of [added: changes in interest rates, changes in our cash, cash equivalents and marketable securities balances, and] the re-measurement of our equity investments upon the occurrence of either observable price changes or [removed: impairments, changes in interest rates or returns on our cash and cash equivalents and marketable securities, and foreign currency exchange rate fluctuations.][added: impairments.]

Our provision for income taxes increased in 2023, as compared to 2022, and our effective tax rate decreased in [removed: 2023,] [added: 2023] as compared to 2022.

The increase in our income taxes was largely due to an increase in pre-tax income, partly offset by [removed: an increase] [added: a decrease] in [added: our effective] tax [added: rate due to favorable changes in state taxes and tax] benefits attributable to stock-based compensation.

The decrease in our effective tax rate was primarily due to a [added: reduction of unrecognized tax benefits on uncertain tax positions due to the expiration of the statute of limitations.]

Year Ended December 31, [removed: 2022] [added: 2024] Compared to Year Ended December 31, [removed: 2021][added: 2023]

Product revenue increased by [removed: $1.3 billion,] [added: $854.5 million,] or [removed: 56.3%, in] [added: 17.0%, for] the year ended December 31, [removed: 2022] [added: 2024] compared to [removed: 2021.][added: 2023.]

[removed: The] [added: This] increase reflects [removed: strong] [added: healthy customer] demand [removed: for] [added: and higher shipments of] our switching and routing [removed: platforms from] [added: platforms, with strong contributions] across our customer [removed: base, including healthy contributions from our large cloud customers.][added: base.]

In addition, service revenue increased by [removed: $94.9] [added: $288.5] million, or [removed: 16.6%, in] [added: 34.7%, for] the year ended December 31, [removed: 2022] [added: 2024] compared to [removed: 2021,] [added: 2023,] as a result of continued growth in initial and renewal [removed: PCS] [added: support] contracts as our customer installed base [added: has] continued to expand.

Cost of revenue increased by [removed: $638.4] [added: $282.0] million, or [removed: 59.8%] [added: 12.6%] for the year ended December 31, [removed: 2022] [added: 2024] compared to [removed: 2021.][added: 2023.]

Gross margin [removed: decreased] [added: increased] from [removed: 63.8%] [added: 61.9%] for the year ended December 31, [removed: 2021] [added: 2023] to [removed: 61.1%] [added: 64.1%] for the year ended December 31, [removed: 2022.][added: 2024.]

Research and development expenses increased by [removed: $141.6] [added: $141.8] million, or [removed: 24.1%,] [added: 16.6%,] for the year ended December 31, [removed: 2022] [added: 2024] compared to [removed: 2021.][added: 2023.]

The increase was primarily due to a [removed: $68.6] [added: $64.9] million increase in personnel costs driven by an increase in headcount, and a [removed: $57.5] [added: $52.3] million increase in new product introduction costs, including [removed: third-party] [added: non-recurring] engineering [added: costs] and [removed: other] [added: prototype expenses as we expand our] product [removed: development costs.][added: portfolio.]

Sales and marketing expenses increased by [removed: $40.8] [added: $28.2] million, or [removed: 14.3%,] [added: 7.1%,] for the year ended December 31, [removed: 2022] [added: 2024] compared to [removed: 2021.][added: 2023 primarily due to an increase in personnel costs.]

General and administrative expenses increased by [removed: $10.1] [added: $3.6] million, or [removed: 12.2%,] [added: 3.0%,] for the year ended December 31, [removed: 2022] [added: 2024] compared to [removed: 2021.][added: 2023.]

The [added: favorable] movement in other income (expense), net, during the year ended December 31, [removed: 2022] [added: 2024] as compared to [removed: 2021] [added: 2023] was driven by an increase in interest income [added: of $158.6 million] due to [added: an increase in our cash and marketable securities balances, coupled with] higher [removed: interest rates.][added: investment yields.]

| Effective tax rate | | | | | | [removed: 14.5] [added: 12.6] | | % | | | | | | | | | | [removed: 9.7] [added: 13.8] | | % | | | | | | | | | | | | | | | | | | |

The Company’s current portfolio of products, services and technologies are grouped into the following categories: Core (Data Center, Cloud and AI Networking), Cognitive Adjacencies (Campus and Routing), and Cognitive Network (Software and Services).

The percentage of revenue derived from these product categories during the current fiscal year was approximately 65% from Core, 18% from Cognitive Adjacencies, and 17% from Networking software and services.

Our customers include companies of all sizes and span a range of industries and geographies and are grouped into the following categories: Cloud and AI Titans, Enterprise and Providers.

The percentage of revenue derived from these customers during the current fiscal year was approximately 48% from Cloud and AI Titans, 35% from Enterprise and 17% from Providers.

For example, sales to our end customer Microsoft represented 20%, 18% and 16% of our total revenue for the years ended 2024, 2023 and 2022 respectively.

In addition, although the focus on deployment of AI enabled solutions has driven increased demand for networking, the long-term trajectory is unknown.

As such, demand estimates for our new products are difficult to forecast and can create volatility in our revenue.

Fiscal 2024 was marked by a year of new product introductions and expanded use cases, particularly in the AI Ethernet market, and we expect this to continue into fiscal 2025.

This has resulted in increased customer trials and contracts with acceptance periods, and an increase in the volatility and magnitude of our product deferred revenue balances, which in turn may create variability in our revenue results on a quarterly and annual basis.

In addition, if we are not able to satisfy the requirements under customer trials or contracts with acceptance periods, we may be required to accept product returns from our customers, which would prevent us from recognizing revenue on such transactions and may result in the write-down of inventory.

We expect that our inventory and purchase commitments will remain volatile as we ramp new product introductions.

These cost pressures may be increased if escalating tariff and non-tariff international trade measures continue to proliferate in or affect our supply chain.

We also may not be able to pass on the full burden of the increase in trade-related costs to our customers, which could further negatively impact our gross margin.

impact our business.

| | | | | | | 2024 | | | | | | | | | | | | 2023 | | | | | | | | | | | | Change in | | | | | | | | |

| Product | | | | | | $ | 5,884,021 | | | | | 84.0 | | % | | | | $ | 5,029,493 | | | | | 85.8 | | % | | | | $ | 854,528 | | | | | 17.0 | | % |

| Service | | | | | | 1,119,125 | | | | | | 16.0 | | | | | | 830,675 | | | | | | 14.2 | | | | | | 288,450 | | | | | | 34.7 | | |

| Total revenue | | | | | | 7,003,146 | | | | | | 100.0 | | | | | | 5,860,168 | | | | | | 100.0 | | | | | | 1,142,978 | | | | | | 19.5 | | |

| Product | | | | | | 2,299,063 | | | | | | 32.8 | | | | | | 2,061,167 | | | | | | 35.2 | | | | | | 237,896 | | | | | | 11.5 | | |

| Service | | | | | | 212,780 | | | | | | 3.1 | | | | | | 168,720 | | | | | | 2.9 | | | | | | 44,060 | | | | | | 26.1 | | |

| Total cost of revenue | | | | | | 2,511,843 | | | | | | 35.9 | | | | | | 2,229,887 | | | | | | 38.1 | | | | | | 281,956 | | | | | | 12.6 | | |

| Gross profit | | | | | | $ | 4,491,303 | | | | | 64.1 | | % | | | | $ | 3,630,281 | | | | | 61.9 | | % | | | | $ | 861,022 | | | | | 23.7 | | % |

| Gross margin | | | | | | 64.1 | | % | | | | | | | | | | 61.9 | | % | | | | | | | | | | | | | | | | | | |

| | | | | | | 2024 | | | | | | % of Total | | | | | | 2023 | | | | | | % of Total | | |

| Americas | | | | | | $ | 5,729,039 | | | | | 81.8 | | % | | | | $ | 4,651,193 | | | | | 79.4 | | % |

| Europe, Middle East and Africa | | | | | | 713,175 | | | | | | 10.2 | | | | | | 670,960 | | | | | | 11.4 | | |

| Asia-Pacific | | | | | | 560,932 | | | | | | 8.0 | | | | | | 538,015 | | | | | | 9.2 | | |

| Total revenue | | | | | | $ | 7,003,146 | | | | | 100.0 | | % | | | | $ | 5,860,168 | | | | | 100.0 | | % |

International revenues as a percentage of our total revenues decreased from 20.6% in 2023 to 18.2% in 2024, which was primarily driven by changes in the geographic mix of sales to our large global customers.

Cost of service revenue primarily consists of

These increases were driven by a corresponding increase in product and service revenues, partially offset by reductions of $180.4 million in net excess/obsolete inventory and supplier liability charges for the year ended December 31, 2024 compared to 2023.

For example, in order to meet customer lead times, we have, and may continue to expedite the supply of components and make incremental investments in our supply chain to increase our capacity for manufacturing products, which increases our product costs and negatively impacts our gross margin.

These changes reflect an improvement in product margins of 60.9% in 2024 compared to 59.0% in 2023, driven by a reduction of $180.4 million in net excess/obsolete inventory-related charges.

In addition, our gross margin benefited in 2024 from the leverage of relatively fixed manufacturing overhead costs on a higher revenue base of $7.0 billion in 2024 compared to $5.9 billion in 2023.

| | | | | | | 2024 | | | | | | | | | | | | 2023 | | | | | | | | | | | | Change in | | | | | | | | |

| Research and development | | | | | | $ | 996,717 | | | | | 14.2 | | % | | | | $ | 854,918 | | | | | 14.6 | | % | | | | $ | 141,799 | | | | | 16.6 | | % |

| Sales and marketing | | | | | | 427,264 | | | | | | 6.1 | | | | | | 399,034 | | | | | | 6.8 | | | | | | 28,230 | | | | | | 7.1 | | |

| General and administrative | | | | | | 122,706 | | | | | | 1.8 | | | | | | 119,080 | | | | | | 2.0 | | | | | | 3,626 | | | | | | 3.0 | | |

| Total operating expenses | | | | | | $ | 1,546,687 | | | | | 22.1 | | % | | | | $ | 1,373,032 | | | | | 23.4 | | % | | | | $ | 173,655 | | | | | 12.6 | | % |

| | | | | | | 2024 | | | | | | | | | | | | 2023 | | | | | | | | | | | | Change in | | | | | | | | |

We generate revenue primarily from sales of our switching and routing platforms, which incorporate our EOS software, and related network applications.

We also generate revenue from post-contract support ("PCS"), which customers typically purchase in conjunction with our products, and renewals of PCS.

We sell our products through both our direct sales force and our channel partners.

Our customers span a range of industries and geographies including large cloud customers or hyperscalers, other internet providers, service providers, financial services organizations, government agencies and a cross section of enterprise customers.

Over the past five years, we have diversified the types of enterprise customers we sell to and have continued to expand our presence across a wide spectrum of industries including media and entertainment, healthcare, oil and gas, education, manufacturing, industrial, and more.

We must also continue to develop

Our development model is focused on the development of new products based on our EOS software and enhancements to EOS.

We engineer our products to be agnostic with respect to the underlying merchant silicon architecture.

The programmability of EOS has allowed us to expand our software applications to address the ever-increasing demands of cloud networking, including workflow automation, network visibility, analytics and network detection and response, and has further allowed us to integrate rapidly with a wide range of third-party applications for virtualization, management, automation, orchestration and network services.

This enables us to focus our research and development resources on our software core competencies and to leverage the investments made by merchant silicon vendors to achieve cost-effective solutions.

We work closely with third-party contract manufacturers to manufacture our products.

Our contract manufacturers deliver our products to our third-party direct fulfillment facilities.

We and our fulfillment partners then perform labeling, final configuration, quality assurance testing and shipment to our customers.

While inventory and working capital levels may remain elevated in the near term, we expect that purchase commitments will continue to decline as supplier lead times shorten.

Our operating cash-flows have also been and may continue to be negatively impacted by significant component inventories on hand or at our contract manufacturers.

In addition, although our business has experienced limited disruption as a result of the recent Russia-Ukraine conflict, continued escalation of this conflict as well as the Israeli-Hamas conflict and Houthi movement in the Red Sea may negatively impact the global economy and our future operating results and financial condition.

chain, all of which continue to evolve and are unpredictable.

We also believe that some of our customers, following a year of elevated purchases, must now consider changing technology roadmaps and priorities, including the need for the rapid deployment of AI and related technologies, resulting in some uncertainty as to future investment plans and a more constrained approach to some forecasts and orders in the near term.

| Gain (loss) on strategic investments | | | | | | 18,699 | | | | | | 0.3 | | | | | | 27,479 | | | | | | 0.6 | | | | | | (8,780) | | | | | | (32.0) | | |

| Other income (expense), net | | | | | | (6,343) | | | | | | (0.1) | | | | | | (345) | | | | | | — | | | | | | (5,998) | | | | | | 1,738.6 | | |

reduction of unrecognized tax benefits on uncertain tax positions due to the expiration of the statute of limitations.

| | | | | | | 2022 | | | | | | | | | | | | 2021 | | | | | | | | | | | | Change in | | | | | | | | |

| Product | | | | | | $ | 3,716,079 | | | | | 84.8 | | % | | | | $ | 2,377,727 | | | | | 80.7 | | % | | | | $ | 1,338,352 | | | | | 56.3 | | % |

| Service | | | | | | 665,231 | | | | | | 15.2 | | | | | | 570,310 | | | | | | 19.3 | | | | | | 94,921 | | | | | | 16.6 | | |

| Total revenue | | | | | | 4,381,310 | | | | | | 100.0 | | | | | | 2,948,037 | | | | | | 100.0 | | | | | | 1,433,273 | | | | | | 48.6 | | |

| Product | | | | | | 1,573,629 | | | | | | 35.9 | | | | | | 958,363 | | | | | | 32.5 | | | | | | 615,266 | | | | | | 64.2 | | |

| Service | | | | | | 131,985 | | | | | | 3.0 | | | | | | 108,895 | | | | | | 3.7 | | | | | | 23,090 | | | | | | 21.2 | | |

| Total cost of revenue | | | | | | 1,705,614 | | | | | | 38.9 | | | | | | 1,067,258 | | | | | | 36.2 | | | | | | 638,356 | | | | | | 59.8 | | |

| Gross profit | | | | | | $ | 2,675,696 | | | | | 61.1 | | % | | | | $ | 1,880,779 | | | | | 63.8 | | % | | | | $ | 794,917 | | | | | 42.3 | | % |

| Gross margin | | | | | | 61.1 | | % | | | | | | | | | | 63.8 | | % | | | | | | | | | | | | | | | | | | |

| | | | | | | 2022 | | | | | | % of Total | | | | | | 2021 | | | | | | % of Total | | |

| Americas | | | | | | $ | 3,462,621 | | | | | 79.0 | | % | | | | $ | 2,156,183 | | | | | 73.2 | | % |

| Europe, Middle East and Africa | | | | | | 529,800 | | | | | | 12.1 | | | | | | 486,836 | | | | | | 16.5 | | |

| Asia-Pacific | | | | | | 388,889 | | | | | | 8.9 | | | | | | 305,018 | | | | | | 10.3 | | |

| Total revenue | | | | | | $ | 4,381,310 | | | | | 100.0 | | % | | | | $ | 2,948,037 | | | | | 100.0 | | % |

Although we saw some improvement in component supply in the latter part of fiscal 2022, supply chain and manufacturing constraints limited our revenue performance throughout the year, and while changes in product deferred revenue impacted the timing of revenue recognition on a quarterly basis, the net change in product deferred revenue for the full year was an immaterial contributor to revenue for the year ended December 31, 2022.

International revenues as a percentage of our total revenues decreased from 26.8% in 2021 to 21.0% in 2022, which was primarily driven by increased purchases from large cloud customers in our Americas region.

As a result of cost inflation in our supply chain, we implemented targeted price increases during the year, which began to benefit our revenue in late 2022.

As supply chain costs improve, we expected to return to a more competitive pricing environment for our products and services.

These increases were primarily driven by a corresponding increase in product and service revenues, combined with an increase in material and logistics costs to mitigate supply chain constraints and to meet customer demand, as well as an increase in provisions for excess/obsolete finished goods and component inventory.

[removed: Macroeconomic] [added: Global economic and business activities continue to face widespread macroeconomic] uncertainties, including [added: the effects of, among other things,] inflation, monetary policy shifts, [removed: uncertainty in the global banking and financial services markets,] recession risks, potential [removed: disruptions from the Russia-Ukraine and Israel-Hamas conflicts, the Houthi movement in the Red Sea] [added: supply chain disruptions, geopolitical pressures,] and [removed: the U.S.] [added: escalating international] trade [removed: war with China have increased the volatility of global financial markets,] [added: measures,] which may increase our foreign currency exchange risk and interest rate risk.

As of December 31, [removed: 2023,] [added: 2024,] and [removed: 2022,] [added: 2023,] we had cash, cash equivalents and available-for-sale marketable securities totaling [removed: $5.0] [added: $8.3] billion and [removed: $3.0] [added: $5.0] billion, respectively.

As of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] the total carrying amount of our investments in privately-held companies was [removed: $62.3] [added: $81.3] million and [removed: $39.5] [added: $62.3] million, respectively.

[removed: Our evaluation of investments in] privately-held companies is based on the fundamentals of the businesses invested in, including among other factors, the nature of their technologies and potential for financial return.

A hypothetical 100 basis point increase in market interest rates would have resulted in a decrease approximately $70.0 million and $39.0 million in the market value of our available-for-sale debt securities and cash equivalents as of December 31, 2024 and 2023.

Our evaluation of investments in

A hypothetical 10% change in foreign currency exchange rates on our monetary assets and liabilities would not be material to our financial condition or results of operations.

For the years ended December 31, 2023, 2022 and 2021, the effect of an immediate 10% change in interest rates would not have been material to our operating results and the total value of the portfolio assuming consistent investment levels.

For the years ended December 31, 2023, 2022 and 2021, we recorded a net gain of $13.9 million, $15.8 million and $0, respectively, with respect to these investments.

One of our equity investments in a privately-held company completed an initial public offering at the beginning of 2022 and subsequently our investment converted to a marketable equity security.

During the year ended December 31, 2023, the Company sold all its shares of this security for $23.9 million.

The cost of this investment was $3.0 million and the cumulative gain since inception was $20.9 million, the majority of which has been reflected in prior periods as mark-to-market net gains in Other income, net.

Arista Networks is an industry leader in data-driven, [removed: client to cloud] [added: client-to-cloud] networking for large [added: AI,] data center, campus and routing environments.

Arista’s platforms deliver availability, agility, automation, [removed: analytics] [added: analytics,] and security through an advanced network operating stack.

Since Arista’s inception, our founders have reimagined cloud networks for performance, scale and programmability with a focus on differentiating in three ways: uncompromising [removed: quality, advanced open and standards-based technology and a] [added: reliability built on the foundation of] robust quality assurance [removed: capability built on] [added: capabilities with] a suite of automated [removed: diagnostics.][added: diagnostics, advanced open and standards-based technology and intelligent automation to decrease the manual workload on the operator.]

At the core of Arista’s platform is Arista’s Extensible Operating System [removed: (EOS®),] [added: ("EOS®"),] a modernized publish-subscribe state-sharing networking operating system.

Our [removed: current] portfolio of [removed: offerings] [added: products and services] are [removed: categorized in] [added: grouped into] the following three [removed: product] categories:

Since we began shipping our products in 2008, we have experienced rapid growth, and, according to market research in [removed: 2023,] [added: 2024,] we have achieved the leadership position in [removed: high-speed] [added: overall data center] Ethernet [removed: port shipments of 100G] [added: switch ports] and [removed: above] [added: revenue] and [added: continue to lead] the [removed: second largest] market [removed: share] in [removed: overall data center] [added: higher speed] Ethernet [removed: switch ports] [added: port shipments of 100G] and [removed: revenue.][added: above.]

We sell our products through both a direct sales force and channel partners, competing primarily in the high-speed data center Ethernet switching markets for 10 Gigabit Ethernet ("GbE") and above, including the [added: Cloud and] AI Ethernet switching [added: markets, Enterprise Data Center switching/routing] market, the cloud-grade and enterprise routing markets, and the campus wired and wireless markets.

[removed: In recent years, we have] [added: We] also [removed: entered into] [added: participate in] the Network [removed: Monitoring and] [added: Monitoring,] Network Detection and Response [removed: (NDR)] [added: ("NDR") and Network Access Control] security markets through both acquisition and organic development.

Our customers [removed: span a range of industries and geographies, including] [added: include] large cloud customers or [removed: hyperscalers,] [added: Cloud and AI Titans,] other internet [removed: providers,] [added: and] service providers, [removed: financial services organizations, government agencies] [added: including specialty] and [added: AI Neoclouds, and] a [removed: cross section] [added: wide breadth] of enterprise [removed: customers.][added: customers, including financial services organizations and government agencies.]

[removed: Over the past five years, we have diversified] [added: We continue to diversify] the types of enterprise customers we sell to and have continued to expand our presence across a wide spectrum of industries including media and entertainment, healthcare, oil and gas, education, manufacturing, industrial, and more.

Meta Platforms and Microsoft, two of our [removed: cloud] [added: Cloud and AI Titan] end customers, each accounted for more than 10% of our total revenue for the years ended December 31, [removed: 2023,] [added: 2024,] and December 31, [removed: 2022.][added: 2023.]

The expanded dependency of business operations on the network has increased the complexity of the network and heightened the importance of network availability, predictable performance, open [removed: programmability] [added: programmability, security,] and operational simplicity.

[removed: The public] [added: Public] cloud leaders pioneered the development of large-scale cloud data centers to meet these growing demands from their users, including business customers.

[added: Enterprises and service] providers around the world are also now adopting cloud computing technologies and principles to their own non-cloud or hybrid operations in order to achieve similar performance, operational efficiencies and cost reductions.

Our comprehensive [removed: R-series and] [added: R-series,] X-series [added: and Etherlink] switching and routing portfolios running the highly programmable EOS, transform networks with simplified and scalable architectures across multiple use-cases.

Arista [removed: first] [added: also] offers [removed: to] customers the Arista Autonomous Virtual Assist [removed: ((AVATM)) using] [added: ("AVATM") which uses] natural processing language to provide [removed: AI assisted] [added: AI-assisted] outcomes for [added: network operations,] security and observability.

Arista [removed: also] provides network switching products intended to provide a robust interconnect that seamlessly links GPUs, compute and storage to deliver fast job completion time for training and generative AI workloads.

][added: 2025-01-26 130728.jpg](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/anet-20241231_g1.jpg)]

As a proud founding member, Arista is committed to leading the Ultra Ethernet Consortium [removed: (UEC)] [added: ("UEC")] to achieve scalable and efficient remote memory access, implemented with enhanced packet spraying, flexible ordering, and modern congestion control algorithms.

We entered the campus market with a diverse portfolio of modular and fixed form factor Campus spine switches, Power-over-Ethernet [removed: (PoE) switches, and WiFi access points] [added: ("PoE") leaf switches] based on [added: EOS and Wi-Fi]

[removed: EOS and] [added: access points] managed through CloudVision.

The introduction of large scale, highly complex, public cloud environments and the digital transformation of [removed: end] customer business models meant that the traditional ways of building networks were no longer adequate to meet the needs of customers for the deployment and provision of cloud applications and more recently generative AI [removed: applications, and new innovations were needed to push network performance forward.][added: applications.]

In addition, the switches and routers used to build these tiered networks were based on proprietary, application-specific integrated circuits ("ASICs") that historically underperformed when measured against Moore’s [removed: Law] [added: Law,] and operating systems that lacked the openness and programmability necessary to automate and effectively manage these networks.

Our cloud networking innovations started with pioneering [removed: a modern software platform,] Arista EOS, which provides switching, routing, state-streaming and telemetry functions across all Arista platforms.

EOS established a new standard in networking for large-scale cloud operators, opened the door to the widespread adoption of merchant silicon hardware in [added: networks, and provided dramatic decreases in deployment and operating costs while delivering high reliability for cloud customers, service providers, enterprises, and more.]

The Arista EOS network stack architecture provides a foundation for consolidation of streamed device state, telemetry, packet, flow, alert, sensor and third-party data into an aggregated Network Data Lake (Arista [removed: EOS] NetDL™).

[removed: Arista EOS] NetDL [removed: consolidates diverse datasets required for effectively applying AI/Machine Learning (ML) methods in Network Operations (NetOps) and Security Operations (SecOps) environments, and it] [added: also] presents a single application programming interface ("API") surface for access to network and network-related data for enhancing Arista and third-party applications.

][added: 203803.jpg](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/anet-20241231_g2.jpg)]

Merchant silicon not only provides the best price/performance available but allows Arista to bring next generation platforms to market [removed: early] [added: early,] allowing customers to benefit from Moore’s Law.

EOS also natively supports Ansible, CFEngine, Chef, Puppet, virtual network orchestration applications and [removed: third party] [added: third-party] management tools.

Arista focuses on building security into the networking layers through features native to EOS, such as segmentation and encryption, [removed: as well as] [added: and network access control and] NDR powered by AI.

Cognitive Campus [removed: Workspace][added: Solutions]

Our Cognitive Campus [removed: Networking] [added: networking] solutions are based on three [removed: capabilities:][added: pillars:]

[removed: Purpose-Built Cloud Networking Platform -] We have developed a highly scalable cloud networking platform that uses software to address the needs of large-scale cloud companies, cloud service providers, and large enterprises, including AI, virtualization, big data and low-latency applications.

[removed: Broad and Differentiated Portfolio -] Using multiple merchant silicon architectures, we deliver switches, capable of routing, with industry-leading capacity, low latency, port density and power efficiency, and have innovated in areas such as deep packet buffers, highly available modular hardware, and reversible cooling options.

[removed: Single Binary Image Software -] The single binary image of EOS software allows us to maintain feature consistency across our entire product portfolio and enables us to introduce new software innovations into the market that become available to our entire installed base without a “forklift upgrade” (i.e., a broad upgrade of the data center infrastructure).

[removed: Rapid Development of New Features and Applications -] Our highly modular EOS software has allowed us to rapidly deliver new features and applications while preserving the structural integrity and quality of our network operating system.

[removed: Deep Understanding of Customer Requirements -] We have developed close working partnerships with many of our largest customers that provide us with insights into their needs and future requirements.

[removed: Strong Management and Engineering Team with Significant Data Center Networking Expertise -] Our management and engineering team consists of networking veterans with extensive data center and campus networking expertise.

[removed: Significant Technology Lead -] We believe that our networking technology represents a fundamental advance in networking software.

Our customers include companies of all sizes and span a range of industries and geographies and are grouped into the following categories: Cloud and AI Titans, Enterprise and Providers.

Zero trust architectures attempt to mitigate risk associated with cyber threats by eliminating implicit trust in a device simply because it is on the “internal” network.

However, this is easier said than done, given today’s changing definition of the network that spans campus, data center, cloud, and more.

Adding multiple network security layers such as firewalls, network access control, and threat detection, among others, comes with tremendous cost, complexity, and brittleness, whereas the benefits are often hard to quantify.

Arista offers a full suite of security solutions built on the foundations of our unified operating system in EOS® and the common management plane in CloudVision™.

These solutions map to the Cybersecurity and Infrastructure Security Agency’s Zero Trust Maturity Model and help organizations accelerate their journey toward optimal zero trust maturity.

Moreover, these network security controls can help compensate for gaps in the organization’s zero trust posture in domains such as identity, devices, workload, and data.

New innovations were needed to push network performance forward.

Arista NetDL consolidates diverse datasets required for effectively applying AI/Machine Learning (ML) methods by Arista AVA for Network Operations (NetOps) and Security Operations (SecOps) use cases.

Most importantly, Arista’s integrated security toolset uses the underlying network infrastructure from switches to WAN routers to deliver key security capabilities and integrates seamlessly with the organization’s existing security program and tools.

Universal Networking - Customers want a network that minimizes planned and unplanned downtime.

Arista delivers that through capabilities such as smart software upgrades that can update a switch to a new version of code without taking an outage.

Moreover, Arista’s standards-based offerings minimize the learning curve for operators both in the wired and the wireless space.

Zero Touch Operations \- Arista’s solutions are designed from the ground up for real-time telemetry, automation, and AI for networking based on our unified network data lake architecture.

As a result, customers can achieve faster deployment to new locations and lower their cost of network operations.

Zero Trust Network - Arista delivers a combination of capabilities that help customers secure their campus networks, from controlling who can get on the network via network access control ("CloudVision AGNI") to detecting threats using network detection and response ("Arista NDR") or wireless intrusion prevention.

Arista also provides identity-based micro segmentation ("Arista MSS") to ensure the zero trust posture extends to every critical asset within the organization.

Purpose-Built Cloud Networking Platform

Broad and Differentiated Portfolio

Single Binary Image Software

Rapid Development of New Features and Applications

Deep Understanding of Customer Requirements

Strong Management and Engineering Team with Significant Data Center Networking Expertise

Significant Technology Lead

The Arista 7700R4 DES is an ultra-scalable, intelligent distributed system engineered to meet the rigorous demands of large-scale AI and machine learning ("ML") environments.

Building upon the foundations of the 7800R4 series, the 7700R4 DES delivers strong performance and scalability for accelerated computing.

The Arista 7700R4 represents a significant advancement in networking technology, offering a robust and scalable solution tailored for the most demanding AI and ML workloads.

Its combination of high throughput, deterministic performance, and advanced congestion management makes it an ideal choice for organizations aiming to build or expand their AI infrastructure.

AI workloads require optimized performance and availability at all times, to minimize job completion time and thus maximize utilization of expensive XPU accelerators.

The EOS-based AI Agent can reside either directly on a SmartNIC or on a server CPU, to provide local configuration management of NICs along with streaming telemetry of NIC performance fed to directly-attached Arista EOS-based switches.

This ensures the QoS parameters for AI optimization are consistently applied from the NIC to the network alike, to avoid misconfigurations which might cause performance bottlenecks without an easy-to-diagnose root cause.

And with telemetry data spanning the AI NICs and the AI networking platforms, the network operations team can have comprehensive visibility into the entire traffic path with immediate insight into performance and problems.

We believe the Arista AWE-7200R Series sets the standard for aggregation and critical site interconnect by supporting 1/10/100GbE interfaces and flexible network modules.

Our software and services are based on subscription-based models and include the following offerings:

These partners manufacture our products internationally in Malaysia, Vietnam, Mexico and other countries.

After manufacturing and testing, the products are shipped to direct fulfillment facilities in the United States, the Netherlands and Singapore for further transformation as needed and distribution.

In particular, we are primarily reliant upon our predominant merchant silicon vendor,

Broadcom, for our switching chips.

The supply of components may also be adversely affected by geopolitical conditions such as escalating tariff and non-tariff trade measures imposed by the U.S., Mexico, China and other countries present in our supply chain.

substantial damages, royalties or other fees.

Core: high-speed Data Center and Cloud Networking systems including newer artificial intelligence ("AI") Ethernet switching platforms.

Cognitive Adjacencies: campus wired and wireless products and advanced routing systems addressing Core Routing, Edge Routing, Data Center Interconnect (DCI), Multi-cloud and Wide Area Networking (WAN) use cases.

Network Software and Services: a suite of value-add software solutions that leverage Arista’s EOS to provide advanced end-to-end orchestration, automation, analytics, network monitoring and security.

Enterprises and service

[Table](#ic034a470397a417699a027ca8e2873b3_7) [of](#ic034a470397a417699a027ca8e2873b3_7) [Contents](#ic034a470397a417699a027ca8e2873b3_7)

Today, a zero trust networking approach to security is paramount for organizations looking to build a robust cybersecurity program.

Irrespective of which device, application, or user is accessing an enterprise resource, zero trust focuses on complete visibility and control over all activity on the network.

Arista’s zero trust networking principles, based on NIST 800-207, help customers address this challenge with three cornerstones: visibility, continuous diagnostics, and enforcement.

The Arista NDR platform delivers continuous diagnostics for the entire enterprise threat landscape, processes countless points of data, senses abnormalities or threats, and reacts if/when warranted.

networks, and provided dramatic decreases in deployment and operating costs while delivering high reliability for cloud customers, service providers, enterprises, and more.

Arista’s zero trust networking principles, based on NIST 800-207, help customers address security challenges with three cornerstones: visibility, continuous diagnostics, and enforcement.

The Arista NDR platform delivers continuous diagnostics for the entire enterprise threat landscape, processes countless points of data, senses abnormalities or threats, and reacts if necessary.

Universal Cloud Network (UCN) - Offered as an alternative to brittle, proprietary solutions from legacy vendors, Arista UCN is an open, standards-based design focusing on data-driven control principles.

Arista’s SplineTM architecture, 7300 Series spine switches, 720/750 Series POE leaf switches, and Wi-Fi platforms consolidate campus layers into simpler topologies that reduce costs and improve reliability.

Cognitive Operations \- The Cognitive management features built into the Arista CloudVision rely on NetDL to collect real time streaming telemetry from across the campus network and automates many critical IT functions.

These features provide real time visibility into the state of the network including traffic flows.

CloudVision’s AI-enabled AVA leverages data from NetDL for AI/ML-driven outcomes, helping to detect anomalies in the network, identify root causes and offer recommendations for mitigation.

The Wi-Fi access points in conjunction with CloudVision also provide proactive network assurance to monitor end user experience without the need for an overlay network.

Zero-trust Network Security - Securing the Campus requires a built-in approach to network segmentation, encryption, device compliance and auditing, as well as service integration with Arista’s security partners.

Arista delivers these capabilities through EOS and CloudVision AVA.

Arista campus leaf switches have an integrated AVA sensor that enables the access layer to provide Arista NDR capability without the complexity and cost of additional network monitoring devices.

Arista’s Macro Segmentation Service Group (MSS-G) provides a simpler, standards-based approach to segmenting traffic in the campus that is more flexible than other proprietary solutions.

We believe Arista’s Wireless Intrusion Prevention Service (WIPS) provides strong security while eliminating false positives.

Extensible Operating System (EOS)

We have continued to evolve the EOS software stack transforming the centralized EOS network database into a multi-modal, multi-tenant, capable data lake.

The EOS NetDLTM unifies the multiple data types gathered in a network and allows for external data ingestion and enrichment.

NetDLTM aggregates data from systems, platforms, and services enabling smoother operations between NetOps, CloudOps, and DevOps operators.

We continue to innovate with every generation of switching platforms.

Cognitive Campus Switching

Cloud-Grade Routing

WAN Routing System

CloudVision

CloudVision’s cloud-native architecture gives customers a choice to consume CloudVision as a subscription service or an on-premise licensed appliance.

Arista A-Care Services

DANZ Monitoring Fabric (DMF)

DMF switch licenses are sold as subscription licenses.

Arista Guardian Network Identity (AGNI)

AGNI is sold as subscription licenses.

Arista's AI-driven Network Detection and Response (NDR)

The analysis begins with AVA Sensors that span the network and perform deep packet inspection.

For the fiscal year ended December 31, [removed: 2023][added: 2024]

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately [removed: $40.8] [added: $90.2] billion as of June [removed: 30, 2023] [added: 28, 2024] (the last business day of the registrant's most recently completed second fiscal quarter) based on the closing price of the registrant’s common stock on the New York Stock Exchange on such date.

On February [removed: 7, 2024, 312,633,612] [added: 12, 2025, 1,261,122,596] shares of the registrant’s common stock were outstanding.

Portions of the registrant’s definitive Proxy Statement relating to its [removed: 2024] [added: 2025] Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days after the registrant’s fiscal year end of December 31, [removed: 2023] [added: 2024] are incorporated by reference into Part III of this Annual Report on Form 10-K.

| Item 1. | | | [removed: [Business](#ic034a470397a417699a027ca8e2873b3_13)] [added: [Business](#i584eaa2c85f14cbd851a042169686213_13)] | | | | | | [removed: [1](#ic034a470397a417699a027ca8e2873b3_13)] [added: [1](#i584eaa2c85f14cbd851a042169686213_13)] | | |

| Item 1A. | | | [Risk [removed: Factors](#ic034a470397a417699a027ca8e2873b3_19)] [added: Factors](#i584eaa2c85f14cbd851a042169686213_19)] | | | | | | [removed: [14](#ic034a470397a417699a027ca8e2873b3_19)] [added: [14](#i584eaa2c85f14cbd851a042169686213_19)] | | |

| Item 1B. | | | [Unresolved Staff [removed: Comments](#ic034a470397a417699a027ca8e2873b3_22)] [added: Comments](#i584eaa2c85f14cbd851a042169686213_22)] | | | | | | [removed: [49](#ic034a470397a417699a027ca8e2873b3_22)] [added: [51](#i584eaa2c85f14cbd851a042169686213_22)] | | |

| Item 2. | | | [removed: [Properties](#ic034a470397a417699a027ca8e2873b3_25)] [added: [Properties](#i584eaa2c85f14cbd851a042169686213_28)] | | | | | | [removed: [50](#ic034a470397a417699a027ca8e2873b3_25)] [added: [52](#i584eaa2c85f14cbd851a042169686213_28)] | | |

| Item 3. | | | [Legal [removed: Proceedings](#ic034a470397a417699a027ca8e2873b3_28)] [added: Proceedings](#i584eaa2c85f14cbd851a042169686213_31)] | | | | | | [removed: [50](#ic034a470397a417699a027ca8e2873b3_28)] [added: [52](#i584eaa2c85f14cbd851a042169686213_31)] | | |

| Item 4. | | | [Mine Safety [removed: Disclosures](#ic034a470397a417699a027ca8e2873b3_31)] [added: Disclosures](#i584eaa2c85f14cbd851a042169686213_34)] | | | | | | [removed: [50](#ic034a470397a417699a027ca8e2873b3_31)] [added: [52](#i584eaa2c85f14cbd851a042169686213_34)] | | |

| Item 5. | | | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#ic034a470397a417699a027ca8e2873b3_37)] [added: Securities](#i584eaa2c85f14cbd851a042169686213_40)] | | | | | | [removed: [51](#ic034a470397a417699a027ca8e2873b3_37)] [added: [53](#i584eaa2c85f14cbd851a042169686213_40)] | | |

| Item 6. | | | [removed: [\[Reserved\]](#ic034a470397a417699a027ca8e2873b3_40)] [added: [\[Reserved\]](#i584eaa2c85f14cbd851a042169686213_43)] | | | | | | [removed: [53](#ic034a470397a417699a027ca8e2873b3_40)] [added: [55](#i584eaa2c85f14cbd851a042169686213_43)] | | |

| Item 7. | | | [Management's Discussion and Analysis of Financial Condition and Results of [removed: Operations](#ic034a470397a417699a027ca8e2873b3_43)] [added: Operations](#i584eaa2c85f14cbd851a042169686213_46)] | | | | | | [removed: [54](#ic034a470397a417699a027ca8e2873b3_43)] [added: [56](#i584eaa2c85f14cbd851a042169686213_46)] | | |

| Item 7A. | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#ic034a470397a417699a027ca8e2873b3_67)] [added: Risk](#i584eaa2c85f14cbd851a042169686213_70)] | | | | | | [removed: [66](#ic034a470397a417699a027ca8e2873b3_67)] [added: [68](#i584eaa2c85f14cbd851a042169686213_70)] | | |

| Item 8. | | | [Financial Statements and Supplementary [removed: Data](#ic034a470397a417699a027ca8e2873b3_70)] [added: Data](#i584eaa2c85f14cbd851a042169686213_73)] | | | | | | [removed: [68](#ic034a470397a417699a027ca8e2873b3_70)] [added: [70](#i584eaa2c85f14cbd851a042169686213_73)] | | |

| Item 9. | | | [Change in and Disagreements With Accountants on Accounting and Financial [removed: Disclosure](#ic034a470397a417699a027ca8e2873b3_133)] [added: Disclosure](#i584eaa2c85f14cbd851a042169686213_136)] | | | | | | [removed: [103](#ic034a470397a417699a027ca8e2873b3_133)] [added: [103](#i584eaa2c85f14cbd851a042169686213_136)] | | |

| Item 9A. | | | [Controls and [removed: Procedures](#ic034a470397a417699a027ca8e2873b3_136)] [added: Procedures](#i584eaa2c85f14cbd851a042169686213_139)] | | | | | | [removed: [103](#ic034a470397a417699a027ca8e2873b3_136)] [added: [103](#i584eaa2c85f14cbd851a042169686213_139)] | | |

| Item 9B. | | | [Other [removed: Information](#ic034a470397a417699a027ca8e2873b3_139)] [added: Information](#i584eaa2c85f14cbd851a042169686213_142)] | | | | | | [removed: [104](#ic034a470397a417699a027ca8e2873b3_139)] [added: [104](#i584eaa2c85f14cbd851a042169686213_142)] | | |

| Item 9C. | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#ic034a470397a417699a027ca8e2873b3_142)] [added: Inspections](#i584eaa2c85f14cbd851a042169686213_148)] | | | | | | [removed: [104](#ic034a470397a417699a027ca8e2873b3_142)] [added: [104](#i584eaa2c85f14cbd851a042169686213_148)] | | |

| Item 10. | | | [Directors, Executive Officers, and Corporate [removed: Governance](#ic034a470397a417699a027ca8e2873b3_148)] [added: Governance](#i584eaa2c85f14cbd851a042169686213_154)] | | | | | | [removed: [105](#ic034a470397a417699a027ca8e2873b3_148)] [added: [105](#i584eaa2c85f14cbd851a042169686213_154)] | | |

| Item 11. | | | [Executive [removed: Compensation](#ic034a470397a417699a027ca8e2873b3_151)] [added: Compensation](#i584eaa2c85f14cbd851a042169686213_157)] | | | | | | [removed: [105](#ic034a470397a417699a027ca8e2873b3_151)] [added: [105](#i584eaa2c85f14cbd851a042169686213_157)] | | |

| Item 12. | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#ic034a470397a417699a027ca8e2873b3_154)] [added: Matters](#i584eaa2c85f14cbd851a042169686213_160)] | | | | | | [removed: [105](#ic034a470397a417699a027ca8e2873b3_154)] [added: [105](#i584eaa2c85f14cbd851a042169686213_160)] | | |

| Item 13. | | | [Certain Relationships and Related Transactions and Director [removed: Independence](#ic034a470397a417699a027ca8e2873b3_157)] [added: Independence](#i584eaa2c85f14cbd851a042169686213_163)] | | | | | | [removed: [105](#ic034a470397a417699a027ca8e2873b3_157)] [added: [105](#i584eaa2c85f14cbd851a042169686213_163)] | | |

| Item 14. | | | [Principal Accountant Fees and [removed: Services](#ic034a470397a417699a027ca8e2873b3_160)] [added: Services](#i584eaa2c85f14cbd851a042169686213_166)] | | | | | | [removed: [105](#ic034a470397a417699a027ca8e2873b3_160)] [added: [105](#i584eaa2c85f14cbd851a042169686213_166)] | | |

| Item 15. | | | [Exhibits and Financial Statement [removed: Schedules](#ic034a470397a417699a027ca8e2873b3_166)] [added: Schedules](#i584eaa2c85f14cbd851a042169686213_172)] | | | | | | [removed: [106](#ic034a470397a417699a027ca8e2873b3_166)] [added: [106](#i584eaa2c85f14cbd851a042169686213_172)] | | |

| Item 16. | | | [Form 10-K [removed: Summary](#ic034a470397a417699a027ca8e2873b3_172)] [added: Summary](#i584eaa2c85f14cbd851a042169686213_178)] | | | | | | [removed: [109](#ic034a470397a417699a027ca8e2873b3_172)] [added: [109](#i584eaa2c85f14cbd851a042169686213_178)] | | |

- our ability to fulfill our customers’ orders despite supply chain delays, [added: issues with] access to key commodities or technologies or geopolitical events that impact our manufacturers or their suppliers such as the [removed: recent U.S.] [added: escalating tariff and non-tariff-related international] trade [removed: wars,] [added: measures,] the Russia-Ukraine and Israel-Hamas conflicts, the Houthi attacks on marine vessels in the Red Sea or the impact of global pandemics such as the global coronavirus ("COVID-19") pandemic;

- the impact of tariffs [added: or other changes in international trade policies] imposed by the U.S. on goods from other countries and tariffs imposed by other countries on U.S. goods; and

| [PART I](#i584eaa2c85f14cbd851a042169686213_13) | | | | | | | | | | | |

| Item 1C. | | | [Cybersecurity](#i584eaa2c85f14cbd851a042169686213_25) | | | | | | [51](#i584eaa2c85f14cbd851a042169686213_22) | | |

| [PART II](#i584eaa2c85f14cbd851a042169686213_37) | | | | | | | | | | | |

| [PART III](#i584eaa2c85f14cbd851a042169686213_151) | | | | | | | | | | | |

| [PART IV](#i584eaa2c85f14cbd851a042169686213_169) | | | | | | | | | | | |

| | | | [Signatures](#i584eaa2c85f14cbd851a042169686213_181) | | | | | | [110](#i584eaa2c85f14cbd851a042169686213_181) | | |

- our expectations related to our inventory and purchase commitments;

| [PART I](#ic034a470397a417699a027ca8e2873b3_13) | | | | | | | | | | | |

| Item 1C. | | | [C](#ic034a470397a417699a027ca8e2873b3_1718)[ybersecurity](#ic034a470397a417699a027ca8e2873b3_1718) | | | | | | [49](#ic034a470397a417699a027ca8e2873b3_22) | | |

| [PART II](#ic034a470397a417699a027ca8e2873b3_34) | | | | | | | | | | | |

| [PART III](#ic034a470397a417699a027ca8e2873b3_145) | | | | | | | | | | | |

| [PART IV](#ic034a470397a417699a027ca8e2873b3_163) | | | | | | | | | | | |

| | | | [Signatures](#ic034a470397a417699a027ca8e2873b3_175) | | | | | | [110](#ic034a470397a417699a027ca8e2873b3_175) | | |

[Table](#ic034a470397a417699a027ca8e2873b3_7) [of](#ic034a470397a417699a027ca8e2873b3_7) [Contents](#ic034a470397a417699a027ca8e2873b3_7)

Not applicable.

None.

[removed: The Committee receives quarterly reports from our Vice] President and Chief Information Security Officer (CISO), in conjunction with other senior managers, on cybersecurity risks.

[added: In] addition, these managers update the Committee, as necessary, regarding any material cybersecurity incidents, as well as incidents with lesser impact potential.

The Committee receives quarterly reports from our Vice

In

During the year ended December 31, 2021, we purchased land and the improvements thereon in Santa Clara, California to construct a building for [removed: office and] [added: office,] lab [added: and data center] space.

As of February [removed: 7, 2024,] [added: 12, 2025,] there were [removed: 52] [added: 44] holders of record of our common stock.

We have never declared nor paid any [added: cash] dividends on our common stock, and we do not anticipate paying any cash dividends in the foreseeable future.

The following graph compares the cumulative total return of our common stock with the total return for the NYSE Composite Index and the Standard & Poor’s 500 Index (the “S&P 500”) from December 31, [removed: 2018] [added: 2019] (the last trading day of the year) to December 31, [removed: 2023.][added: 2024.]

The graph assumes $100 was invested at the market close on December 31, [removed: 2018] [added: 2019] in the Company’s common stock and in each of the aforementioned indices with the re-investment of dividends, if any.

[removed: ][added: ]

There were no sales of unregistered securities during fiscal year [removed: 2023.][added: 2024.]

During the fourth quarter of [removed: 2023,] [added: 2024,] there were no repurchases of unvested shares of our common stock made pursuant to our equity incentive plans as a result of us exercising our rights nor pursuant to any publicly-announced plan or program.

[removed: This authorization allows us] [added: From time] to [added: time, we] repurchase shares of our common stock [added: pursuant to the Repurchase Programs (as defined below) that are] funded from working capital.

The Repurchase [removed: Program does] [added: Programs do] not obligate us to acquire any of our common [removed: stock] [added: stock,] and may be suspended or discontinued by [removed: us] [added: the company] at any time without prior notice.

For our repurchase activities made [removed: during] [added: for] the year ended December 31, [removed: 2023,] [added: 2024,] please refer to Note 6.

In April 2024, we completed repurchases under our previous $1.0 billion stock repurchase program (the “Prior Repurchase Program”).

In May 2024, our board of directors authorized and announced a new $1.2 billion stock repurchase program (the “New Repurchase Program” and together with the Prior Repurchase Program, the "Repurchase Programs"), which expires in May 2027.

During the year ended December 31, 2024, we repurchased a total of $279.0 million of our common stock under our New Repurchase Program and $144.6 million of our common stock under our Prior Repurchase Program.

As of December 31, 2024, the remaining authorized amount for stock repurchases under the New Repurchase Program was approximately $921.0 million.

Our repurchases for the three months ended December 31, 2024 are disclosed as below (in thousands, except per share amounts).

| | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | Total Number of Shares Purchased | | | | | | Average Price Paid Per Share | | | | | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | | | | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Plans or Programs | | |

| October 1, 2024 - October 31, 2024 | | | | | | — | | | | | | $ | — | | | | | — | | | | | | $ | 1,044,650 | |

| November 1, 2024 - November 30, 2024 (1) | | | | | | 1,306 | | | | | | 94.80 | | | | | | 1,306 | | | | | | 920,854 | | |

| December 1, 2024 - December 31, 2024 | | | | | | — | | | | | | — | | | | | | — | | | | | | 920,854 | | |

| | | | | | | 1,306 | | | | | | | | | | | | 1,306 | | | | | | | | |

(1) November results have been adjusted to reflect the four-for-one stock split effected in December, 2024.

See Note 1,Organization and Summary of Accounting Policies, included in Part II, Item 8, of this Annual Report on Form 10-K for details.

In October 2021, our board of directors authorized a $1.0 billion stock repurchase program (the “Repurchase Program”).

The Repurchase Program expires in the fourth quarter of 2024.

Repurchases may be made at management's discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing.

We did not repurchase any shares during the three months ended December 31, 2023.

| [Reports of Independent Registered Public Accounting Firm (PCAOB [removed: ID:](#ic034a470397a417699a027ca8e2873b3_73) 42[)](#ic034a470397a417699a027ca8e2873b3_73)] [added: ID:](#i584eaa2c85f14cbd851a042169686213_76) 42[)](#i584eaa2c85f14cbd851a042169686213_76)] | | | | | | [removed: [69](#ic034a470397a417699a027ca8e2873b3_73)] [added: [71](#i584eaa2c85f14cbd851a042169686213_76)] | | |

| [Consolidated Balance [removed: Sheets](#ic034a470397a417699a027ca8e2873b3_79)] [added: Sheets](#i584eaa2c85f14cbd851a042169686213_82)] | | | | | | [removed: [72](#ic034a470397a417699a027ca8e2873b3_79)] [added: [75](#i584eaa2c85f14cbd851a042169686213_82)] | | |

[removed: | [Consolidated] [added: Consolidated] Statements of [removed: Operations](#ic034a470397a417699a027ca8e2873b3_82) | | | | | | [73](#ic034a470397a417699a027ca8e2873b3_82) | | |][added: Income]

| [Consolidated Statements of Comprehensive [removed: Income](#ic034a470397a417699a027ca8e2873b3_85)] [added: Income](#i584eaa2c85f14cbd851a042169686213_88)] | | | | | | [removed: [74](#ic034a470397a417699a027ca8e2873b3_85)] [added: [76](#i584eaa2c85f14cbd851a042169686213_88)] | | |

| [Consolidated Statements of Stockholders' [removed: Equity](#ic034a470397a417699a027ca8e2873b3_88)] [added: Equity](#i584eaa2c85f14cbd851a042169686213_91)] | | | | | | [removed: [75](#ic034a470397a417699a027ca8e2873b3_88)] [added: [77](#i584eaa2c85f14cbd851a042169686213_91)] | | |

| [Consolidated Statements of Cash [removed: Flows](#ic034a470397a417699a027ca8e2873b3_91)] [added: Flows](#i584eaa2c85f14cbd851a042169686213_94)] | | | | | | [removed: [76](#ic034a470397a417699a027ca8e2873b3_91)] [added: [78](#i584eaa2c85f14cbd851a042169686213_94)] | | |

| [Notes to the Consolidated Financial [removed: Statements](#ic034a470397a417699a027ca8e2873b3_94)] [added: Statements](#i584eaa2c85f14cbd851a042169686213_97)] | | | | | | [removed: [77](#ic034a470397a417699a027ca8e2873b3_94)] [added: [79](#i584eaa2c85f14cbd851a042169686213_97)] | | |

We have audited the accompanying consolidated balance sheets of Arista Networks, Inc. (the Company) as of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] the related consolidated statements of [removed: operations,] [added: income,] comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, [removed: 2023,] [added: 2024,] and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2023,] [added: 2024,] in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February [removed: 12, 2024] [added: 18, 2025] expressed an unqualified opinion thereon.

| Description of the Matter | | | As discussed in Note 1 of the consolidated financial statements, the Company’s inventories are stated at the lower of cost (computed using the first-in, first-out method) and net realizable value. The Company’s inventory balance totaled [removed: $1.9] [added: $1.8] billion on December 31, [removed: 2023.] [added: 2024.] The Company records a provision when inventory is determined to be in excess of anticipated demand, or obsolete, to adjust inventory to its estimated realizable value. The Company records a contract manufacturer/supplier liability and a corresponding charge for non-cancellable, non-returnable purchase commitments with contract manufacturers or suppliers for quantities in excess of the Company’s demand forecasts, or that are considered obsolete. Auditing management’s assessment of net realizable value for inventory and contract manufacturer/supplier liabilities was complex and highly judgmental due to the assessment of management’s estimates of forecasted product demand, which can be impacted by changes in overall customer demand, changes in the timing of the introduction and customer adoption of new products, adjustments to manufacturing and engineering schedules, and overall general economic and market conditions. | | |

We have audited Arista Networks, Inc.’s internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, Arista Networks, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] the related consolidated statements of [removed: operations,] [added: income,] comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, [removed: 2023,] [added: 2024,] and the related notes and our report dated February [removed: 12, 2024] [added: 18, 2025] expressed an unqualified opinion thereon.

| | | | | | | December [removed: 31,] [added: 31, 2024] | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | |]

| | | | | | | [added: 2024 | | | | | |] 2023 | | | | | | 2022 | | |

| Cash and cash equivalents | | | | | | $ | [removed: 1,938,606] [added: 2,762,357] | | | | | $ | [removed: 671,707] [added: 1,938,606] | |

| Marketable securities | | | | | | [removed: 3,069,362] [added: 5,541,116] | | | | | | [removed: 2,352,022] [added: 3,069,362] | | |

| Inventories | | | | | | [removed: 1,945,180] [added: 1,834,572] | | | | | | [removed: 1,289,706] [added: 1,945,180] | | |

| Prepaid expenses and other current assets | | | | | | [removed: 412,518] [added: 632,292] | | | | | | [removed: 314,217] [added: 412,518] | | |

| Property and equipment, net | | | | | | [removed: 101,580] [added: 98,845] | | | | | | [removed: 95,009] [added: 101,580] | | |

| Deferred tax assets | | | | | | [removed: 945,792] [added: 1,440,418] | | | | | | [removed: 574,912] [added: 945,792] | | |

| Other assets | | | | | | [removed: 151,900] [added: 263,303] | | | | | | [removed: 166,612] [added: 151,900] | | |

| Accounts payable | | | | | | $ | [removed: 435,059] [added: 381,083] | | | | | $ | [removed: 232,572] [added: 435,059] | |

| Accrued liabilities | | | | | | [removed: 407,302] [added: 435,277] | | | | | | [removed: 292,487] [added: 407,302] | | |

| Deferred revenue | | | | | | [removed: 915,204] [added: 1,727,280] | | | | | | [removed: 637,432] [added: 915,204] | | |

| Deferred revenue, non-current | | | | | | [removed: 591,000] [added: 1,064,135] | | | | | | [removed: 403,814] [added: 591,000] | | |

| Preferred stock, $0.0001 par value—100,000 shares authorized and no shares issued and outstanding as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] | | | | | | — | | | | | | — | | |

| Common stock, $0.0001 par [removed: value—1,000,000] [added: value—4,000,000] shares authorized as of December 31, [removed: 2023] [added: 2024] and [removed: 2022; 312,245] [added: 2023; 1,261,334] and [removed: 306,890] [added: 1,248,982] shares issued and outstanding as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023 (1)] | | | | | | [removed: 31] [added: 126] | | | | | | [removed: 31] [added: 125] | | |

| Additional paid-in capital [added: (1)] | | | | | | [removed: 2,108,331] [added: 2,465,409] | | | | | | [removed: 1,780,714] [added: 2,108,237] | | |

| Retained earnings | | | | | | [removed: 5,114,025] [added: 7,542,460] | | | | | | [removed: 3,138,983] [added: 5,114,025] | | |

| Accumulated other comprehensive income (loss) | | | | | | [removed: (3,328)] [added: (13,188)] | | | | | | [removed: (33,908)] [added: (3,328)] | | |

| TOTAL STOCKHOLDERS’ EQUITY | | | | | | [removed: 7,219,059] [added: 9,994,807] | | | | | | [removed: 4,885,820] [added: 7,219,059] | | |

[removed: Consolidated] [added: | [Consolidated] Statements of [removed: Operations][added: Income](#i584eaa2c85f14cbd851a042169686213_85) | | | | | | [74](#i584eaa2c85f14cbd851a042169686213_85) | | |]

[removed: | | | | | | | Year Ended December 31, | | | | | | | | | | | | | | |][added: For the year ended]

| | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | |

| Product | | | | | | $ | [removed: 5,029,493] [added: 5,884,021] | | | | | $ | [removed: 3,716,079] [added: 5,029,493] | | | | | $ | [removed: 2,377,727] [added: 3,716,079] | |

| Service | | | | | | [removed: 830,675] [added: 1,119,125] | | | | | | [removed: 665,231] [added: 830,675] | | | | | | [removed: 570,310] [added: 665,231] | | |

| Total revenue | | | | | | [removed: 5,860,168] [added: 7,003,146] | | | | | | [removed: 4,381,310] [added: 5,860,168] | | | | | | [removed: 2,948,037] [added: 4,381,310] | | |

| Product | | | | | | [removed: 2,061,167] [added: 2,299,063] | | | | | | [removed: 1,573,629] [added: 2,061,167] | | | | | | [removed: 958,363] [added: 1,573,629] | | |

February 18, 2025

February 18, 2025

| Basic | | | | | | $ | 2.27 | | | | | $ | 1.69 | | | | | $ | 1.10 | |

| Diluted | | | | | | $ | 2.23 | | | | | $ | 1.65 | | | | | $ | 1.07 | |

| Basic | | | | | | 1,256,303 | | | | | | 1,237,417 | | | | | | 1,225,891 | | |

| Diluted | | | | | | 1,281,077 | | | | | | 1,268,538 | | | | | | 1,265,835 | | |

(1) Prior period results have been adjusted to reflect the four-for-one stock split effected in December 2024.

See Note 1, Organization and Summary of Accounting Policies, for details.

| | | | | | | 2024 | | | | | | 2023 | | |

| Total current assets | | | | | | 11,910,815 | | | | | | 8,400,064 | | |

| Goodwill and acquisition-related intangible assets, net | | | | | | 330,540 | | | | | | 357,299 | | |

| TOTAL ASSETS | | | | | | $ | 14,043,921 | | | | | $ | 9,956,635 | |

| Other current liabilities | | | | | | 188,582 | | | | | | 161,870 | | |

| Total current liabilities | | | | | | 2,732,222 | | | | | | 1,919,435 | | |

| Other long-term liabilities | | | | | | 252,757 | | | | | | 227,141 | | |

| TOTAL LIABILITIES | | | | | | 4,049,114 | | | | | | 2,737,576 | | |

| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | $ | 14,043,921 | | | | | $ | 9,956,635 | |

(1) Prior period results have been adjusted to reflect the four-for-one stock split effected in December 2024.

See Note 1, Organization and Summary of Accounting Policies, for details.

| Net income | | | | | | $ | 2,852,054 | | | | | $ | 2,087,321 | | | | | $ | 1,352,446 | |

| Net income | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,852,054 | | | | | | — | | | | | | 2,852,054 | | |

| Repurchase of common stock | | | | | | (5,492) | | | | | | (1) | | | | | | 1 | | | | | | (423,619) | | | | | | — | | | | | | (423,619) | | |

| Balance—December 31, 2024 | | | | | | 1,261,334 | | | | | | $ | 126 | | | | | $ | 2,465,409 | | | | | $ | 7,542,460 | | | | | $ | (13,188) | | | | | $ | 9,994,807 | |

| _________________________________________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

(1) Prior period results have been adjusted to reflect the four-for-one stock split effected in December 2024.

See Note 1, Organization and Summary of Accounting Policies, for details.

| Net income | | | | | | $ | 2,852,054 | | | | | $ | 2,087,321 | | | | | $ | 1,352,446 | |

| Other | | | | | | 6,939 | | | | | | (463) | | | | | | (8,831) | | |

| Accounts receivable, net | | | | | | (106,080) | | | | | | (105,927) | | | | | | (401,950) | | |

| Other liabilities | | | | | | 47,823 | | | | | | 128,148 | | | | | | 71,123 | | |

| Other Investing activities | | | | | | (6,628) | | | | | | (3,164) | | | | | | (12,691) | | |

On November 7, 2024, the Company announced a four-for-one forward stock split ("Stock Split") of the Company’s common stock that was effected through the filing of an amendment to the Company's Amended and Restated Certificate of Incorporation ("Amendment") on December 3, 2024.

The Stock Split proportionately increased the authorized shares of common stock, and all share and per share amounts presented herein have been retroactively adjusted to reflect the impact of the Stock Split.

quality financial instruments with banks and financial institutions.

Sales to one end customer represented 15%, 21% and 26% of our total revenue, and sales to the other end customer represented 20%, 18% and 16% of our total revenue for the years ended 2024, 2023 and 2022, respectively.

Evaluation inventory consists of new products and/or use cases at customer or partner sites for trial purposes.

Title to the inventory remains with Arista during the trial period and invoicing occurs only upon completion of the trial period and when/if the products have been accepted by the customer.

December 31, 2024, we recorded a credit of $74.3 million within cost of product revenue related to such liabilities, which was driven by a reduction in the liability due to the receipt of excess components that were previously reserved.

We subsequently assessed the realizable value of such components upon inventory receipt.

Although the global supply chain has shown improvement, we have had to invest in inventory to address forecast uncertainty and we expect that our inventory and purchase commitments will remain volatile as we ramp new product introductions.

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

February 12, 2024

| | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Accounts receivable, net | | | | | | 1,024,569 | | | | | | 923,096 | | |

| Total current assets | | | | | | 8,390,235 | | | | | | 5,550,748 | | |

| Acquisition-related intangible assets, net | | | | | | 88,768 | | | | | | 122,205 | | |

| Goodwill | | | | | | 268,531 | | | | | | 265,924 | | |

| TOTAL ASSETS | | | | | | $ | 9,946,806 | | | | | $ | 6,775,410 | |

| Other current liabilities | | | | | | 152,041 | | | | | | 131,040 | | |

| Total current liabilities | | | | | | 1,909,606 | | | | | | 1,293,531 | | |

| Income taxes payable | | | | | | 95,751 | | | | | | 89,839 | | |

| Other long-term liabilities | | | | | | 131,390 | | | | | | 102,406 | | |

| TOTAL LIABILITIES | | | | | | 2,727,747 | | | | | | 1,889,590 | | |

| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | $ | 9,946,806 | | | | | $ | 6,775,410 | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Basic | | | | | | $ | 6.75 | | | | | $ | 4.41 | | | | | $ | 2.74 | |

| Diluted | | | | | | $ | 6.58 | | | | | $ | 4.27 | | | | | $ | 2.63 | |

| Basic | | | | | | 309,354 | | | | | | 306,473 | | | | | | 306,512 | | |

| Diluted | | | | | | 317,135 | | | | | | 316,459 | | | | | | 319,238 | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Balance — December 31, 2020 | | | | | | 304,696 | | | | | | $ | 30 | | | | | $ | 1,292,409 | | | | | $ | 2,027,614 | | | | | $ | 238 | | | | | $ | 3,320,291 | |

| Net income | | | | | | — | | | | | | — | | | | | | — | | | | | | 840,854 | | | | | | — | | | | | | 840,854 | | |

| Repurchase of common stock | | | | | | (4,537) | | | | | | — | | | | | | — | | | | | | (411,645) | | | | | | — | | | | | | (411,645) | | |

| Noncash lease expense | | | | | | 18,236 | | | | | | 18,648 | | | | | | 17,112 | | |

| Gain on strategic investments | | | | | | (18,699) | | | | | | (27,479) | | | | | | — | | |

| Accounts receivable, net | | | | | | (101,473) | | | | | | (401,531) | | | | | | (126,969) | | |

| Other liabilities | | | | | | 123,694 | | | | | | 70,704 | | | | | | 78,187 | | |

| Investment in notes and privately-held companies | | | | | | (3,164) | | | | | | (12,691) | | | | | | (19,933) | | |

| SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | | | | | | | | | | | | | | | | | | | | |

| Right-of-use assets obtained in exchange for new operating lease liabilities | | | | | | $ | 20,567 | | | | | $ | 7,300 | | | | | $ | 5,005 | |

| Common stock issued for business acquisition | | | | | | 2,331 | | | | | | 4,049 | | | | | | — | | |

Risk and Uncertainties

Global economic and business activities continue to face widespread macroeconomic uncertainties, including inflation, monetary policy shifts, recession risks, and potential supply chain and other disruptions such as the Russia-Ukraine and Israel-Hamas conflicts, the Houthi attacks on marine vessels in the Red Sea and the U.S. trade war with China.

As we exit 2023, the business is emerging from a period of unprecedented global supply chain disruptions.

Throughout this period, we made significant supply chain investments, including funding additional working capital and incremental purchase commitments in response to extended visibility to deployment plans from our customers.

We have worked closely with our contract manufacturers and supply chain partners to ramp production following a period of delayed component sourcing and workforce disruptions.

This increased capacity has allowed us to ship products against previously committed demand/deployment plans and accelerate some deployments where needed, while trying to limit building customer inventory and to some extent balancing customer lead times with those currently experienced from our key suppliers.

As a result, some shipments against these previously committed demand/deployment plans have extended into 2024.

Given these shipment and order patterns, near term revenue trends may not be solely reflective of current demand levels, but as discussed above will benefit from demand/deployment plans that had been previously committed.

Management, with the participation of our Chief Executive Officer (“CEO”) and our Chief Financial Officer (“CFO”), evaluated the effectiveness of our disclosure controls and procedures as of December 31, [removed: 2023.][added: 2024.]

Based on the evaluation of our disclosure controls and procedures as of December 31, [removed: 2023,] [added: 2024,] our CEO and CFO concluded that, as of such date, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission (SEC) rules and forms, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Securities and Exchange Act of 1934, as amended, that occurred during the quarter ended December 31, [removed: 2023] [added: 2024] that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

[removed: Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in] reasonable [removed: detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable] assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the Consolidated Financial Statements.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013 framework).

Based on that assessment, management concluded that, as of December 31, [removed: 2023,] [added: 2024,] its internal control over financial reporting was effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. GAAP.

The effectiveness of our internal control over financial reporting, as of December 31, [removed: 2023,] [added: 2024,] has been audited by Ernst & Young LLP, the independent registered public accounting firm that audits our Consolidated Financial Statements, as stated in their report included in Item 8 of this Annual Report on Form 10-K, which expresses an unqualified opinion on the effectiveness of our internal control over financial reporting as of December 31, [removed: 2023.][added: 2024.]

Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide

The duration of the trading arrangement is until [removed: September 8, 2024,] [added: April 17, 2026,] or earlier if all transactions under the trading arrangement are completed.

On December [removed: 14, 2023,] [added: 13, 2024,] Jayshree Ullal, our Chairperson and Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate [removed: of] [added: of: (i)] up to [removed: 538,270] [added: 7,349,668] shares of our common [removed: stock.][added: stock; and (ii) a number of shares of our common stock that may be earned in connection with grants of performance-based restricted stock units, which cannot be determined at this time.]

On December 5, 2023, Ita Brennan, our Senior Vice President and Chief Financial Officer, modified the Rule 10b5-1 trading arrangement previously adopted June 8, 2023 providing for the sale from time to time of an aggregate of up to 58,000 shares of our common stock to adjust scheduled sales dates as a result of her planned departure from the Company.

The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).

The duration of the trading arrangement is until March 14, 2025, or earlier if all transactions under the trading arrangement are completed.

On December 14, 2023, Anshul Sadana, our Chief Operating Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 126,861 shares of our common stock.

The duration of the trading arrangement is until March 13, 2025, or earlier if all transactions under the trading arrangement are completed.

Information required by this Item is incorporated herein by reference to our definitive proxy statement with respect to our [removed: 2024] [added: 2025] Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.

Information required by this Item is incorporated herein by reference to our definitive proxy statement with respect to our [removed: 2024] [added: 2025] Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.

Information required by this Item is incorporated herein by reference to our definitive proxy statement with respect to our [removed: 2024] [added: 2025] Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.

Information required by this Item is incorporated herein by reference to our definitive proxy statement with respect to our [removed: 2024] [added: 2025] Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.

Information required by this Item is incorporated herein by reference to our definitive proxy statement with respect to our [removed: 2024] [added: 2025] Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.

| 3.1 | | | | | | [Amended and Restated Certificate of Incorporation of the [removed: Registrant.](http://www.sec.gov/Archives/edgar/data/1596532/000135027814000011/ex31amendedandrestatedcert.htm)] [added: Registrant.](https://www.sec.gov/Archives/edgar/data/1596532/000135027814000011/ex31amendedandrestatedcert.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 3.1 | | | | | | 8/8/2014 | | | | | | | | |

| 4.1 | | | | | | [Form of the Registrant's common stock [removed: certificate.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514149636/d639957dex41.htm)] [added: certificate.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514149636/d639957dex41.htm)] | | | | | | S-1/A | | | | | | 333-194899 | | | | | | 4.1 | | | | | | 4/21/2014 | | | | | | | | |

| 4.2 | | | | | | [Description of Registrant’s securities registered under Section 12 of the Exchange [removed: Act](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/ex42descriptionofcapitalst.htm)] [added: Act](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/ex42descriptionofcapitalst.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 10.1 | | | | | | [Form of Indemnification Agreement between the Registrant and each of its directors and executive [removed: officers.](http://www.sec.gov/Archives/edgar/data/1596532/000159653219000230/ex101indemnificationag.htm)] [added: officers.](https://www.sec.gov/Archives/edgar/data/1596532/000159653219000230/ex101indemnificationag.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.1 | | | | | | 11/1/2019 | | | | | | | | |

| 10.2 † | | | | | | [2004 Equity Incentive [removed: Plan.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex102.htm)] [added: Plan.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex102.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.2 | | | | | | 3/31/2014 | | | | | | | | |

| 10.3 † | | | | | | [2011 Equity Incentive [removed: Plan.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex103.htm)] [added: Plan.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex103.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.3 | | | | | | 3/31/2014 | | | | | | | | |

| 10.4 † | | | | | | [2014 Equity Incentive [removed: Plan.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514178074/d639957dex104.htm)] [added: Plan.](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/arista-2014equityincentive.htm)] | | | | | | [removed: S-1/A] | | | | | | [removed: 333-194899] | | | | | | [removed: 10.4] | | | | | | [removed: 5/27/2014] | | | | | | [added: ü] | | |

| 10.5 † | | | | | | [2014 Employee Stock Purchase [removed: Plan.](http://www.sec.gov/Archives/edgar/data/1596532/000159653215000004/ex1052014employeestockpurc.htm)] [added: Plan.](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/arista-2014espp2024stocksp.htm)] | | | | | | [removed: 10-K] | | | | | | [removed: 001-36468] | | | | | | [removed: 10.5] | | | | | | [removed: 3/12/2015] | | | | | | [added: ü] | | |

| 10.6 † | | | | | | [Offer Letter, dated October 17, 2004, by and between the Registrant and Kenneth [removed: Duda.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex106.htm)] [added: Duda.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex106.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.6 | | | | | | 3/31/2014 | | | | | | | | |

| 10.7 † | | | | | | [Offer Letter, dated June 8, 2007, by and between the Registrant and Anshul [removed: Sadana.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex107.htm)] [added: Sadana.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex107.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.7 | | | | | | 3/31/2014 | | | | | | | | |

| 10.8 † | | | | | | [Offer Letter, dated August 1, 2008, by and between the Registrant and Jayshree [removed: Ullal.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex108.htm)] [added: Ullal.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex108.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.8 | | | | | | 3/31/2014 | | | | | | | | |

| 10.9 † | | | | | | [Offer Letter, dated March 27, 2013, by and between the Registrant and Charles [removed: Giancarlo.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex109.htm)] [added: Giancarlo.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex109.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.9 | | | | | | 3/31/2014 | | | | | | | | |

| 10.11 | | | | | | [Lease between Arista Networks, Inc. and The Irvine Company LLC, dated August 10, 2012, as amended on February 28, [removed: 2013.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex1015.htm)] [added: 2013.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex1015.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.15 | | | | | | 3/31/2014 | | | | | | | | |

| 10.12 | | | | | | [Second Amendment to Lease, by and between Arista Networks, Inc. and The Irvine Company LLC, dated July 30, [removed: 2014.](http://www.sec.gov/Archives/edgar/data/1596532/000135027814000011/ex101secondamendmenttolease.htm)] [added: 2014.](https://www.sec.gov/Archives/edgar/data/1596532/000135027814000011/ex101secondamendmenttolease.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.1 | | | | | | 8/8/2014 | | | | | | | | |

| 10.13 | | | | | | [License Agreement, dated November 30, 2004, by and between the Registrant and OptumSoft, [removed: Inc.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex1016.htm)] [added: Inc.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex1016.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.16 | | | | | | 3/31/2014 | | | | | | | | |

| 10.14‡ | | | | | | [Manufacturing Services Letter Agreement, dated February 5, 2007, between the Registrant and Jabil Circuit, [removed: Inc.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex1017.htm)] [added: Inc.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514122171/d639957dex1017.htm)] | | | | | | S-1 | | | | | | 333-194899 | | | | | | 10.17 | | | | | | 3/31/2014 | | | | | | | | |

| 10.15 † | | | | | | [Employee Incentive [removed: Plan.](http://www.sec.gov/Archives/edgar/data/1596532/000119312514149636/d639957dex1021.htm)] [added: Plan.](https://www.sec.gov/Archives/edgar/data/1596532/000119312514149636/d639957dex1021.htm)] | | | | | | S-1/A | | | | | | 333-194899 | | | | | | 10.21 | | | | | | 4/21/2014 | | | | | | | | |

| 10.16 † | | | | | | [Offer Letter, dated May 18, 2015, by and between the Registrant and Ita [removed: Brennan.](http://www.sec.gov/Archives/edgar/data/1596532/000159653215000008/ex101q12015.htm)] [added: Brennan.](https://www.sec.gov/Archives/edgar/data/1596532/000159653215000008/ex101q12015.htm)] | | | | | | 8-K | | | | | | 001-36468 | | | | | | 10.1 | | | | | | 5/14/2015 | | | | | | | | |

| 10.17 † | | | | | | [Severance Agreement, effective May 18, 2015, by and between the Registrant and Ita [removed: Brennan.](http://www.sec.gov/Archives/edgar/data/1596532/000159653215000008/ex102q12015.htm)] [added: Brennan.](https://www.sec.gov/Archives/edgar/data/1596532/000159653215000008/ex102q12015.htm)] | | | | | | 8-K | | | | | | 001-36468 | | | | | | 10.2 | | | | | | 5/14/2015 | | | | | | | | |

| 10.18 † | | | | | | [2015 Global Sales Incentive [removed: Plan.](http://www.sec.gov/Archives/edgar/data/1596532/000159653216000255/ex1032015globalsalesincent.htm)] [added: Plan.](https://www.sec.gov/Archives/edgar/data/1596532/000159653216000255/ex1032015globalsalesincent.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.3 | | | | | | 5/5/2016 | | | | | | | | |

| 10.19 † | | | | | | [Offer letter, dated January 2, 2013, by and between the Registrant and Marc [removed: Taxay.](http://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex101marctaxay-offerletter.htm)] [added: Taxay.](https://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex101marctaxay-offerletter.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.1 | | | | | | 5/8/2017 | | | | | | | | |

| 10.20 † | | | | | | [Severance Agreement, dated March 30, 2015, by and between the Registrant and Marc [removed: Taxay.](http://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex102marctaxay-severanceag.htm)] [added: Taxay.](https://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex102marctaxay-severanceag.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.2 | | | | | | 5/8/2017 | | | | | | | | |

| 10.21 † | | | | | | [Offer letter, dated February 14, 2017, by and between the Registrant and John [removed: McCool.](http://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex103johnmccool-offerletter.htm)] [added: McCool.](https://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex103johnmccool-offerletter.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.3 | | | | | | 5/8/2017 | | | | | | | | |

| 10.22 † | | | | | | [Severance Agreement, dated March 20, 2017, by and between the Registrant and John [removed: McCool.](http://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex104johnmccool-severancea.htm)] [added: McCool.](https://www.sec.gov/Archives/edgar/data/1596532/000159653217000088/ex104johnmccool-severancea.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.4 | | | | | | 5/8/2017 | | | | | | | | |

| 10.23 ‡ | | | | | | [Term Sheet of Mutual Release and Settlement Agreement, dated August 6, 2018, between the Registrant and Cisco Systems, [removed: Inc.](http://www.sec.gov/Archives/edgar/data/1596532/000159653218000233/ex101termsheetofciscosettl.htm)] [added: Inc.](https://www.sec.gov/Archives/edgar/data/1596532/000159653218000233/ex101termsheetofciscosettl.htm)] | | | | | | 10-Q | | | | | | 001-36468 | | | | | | 10.1 | | | | | | 11/5/2018 | | | | | | | | |

| 10.24 ‡ | | | | | | [Mutual Release and Settlement Agreement, dated August 6, 2018, by and between the Registrant and Cisco Systems, [removed: Inc.](http://www.sec.gov/Archives/edgar/data/1596532/000159653219000027/ex1024_mutualreleaseandset.htm)] [added: Inc.](https://www.sec.gov/Archives/edgar/data/1596532/000159653219000027/ex1024_mutualreleaseandset.htm)] | | | | | | 10-K | | | | | | 001-36468 | | | | | | 10.24 | | | | | | 2/15/2019 | | | | | | | | |

| 10.28 | | | | | | [Form of Severance Agreement by and between the Company and Chantelle Breithaupt](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/cfoseveranceagreement_ch.htm) | | | | | | [added: 10-K] | | | | | | [added: 001-36468] | | | | | | [added: 10.28] | | | | | | [added: 2/13/2024] | | | | | | [removed: ü] | | |

| 21.1 | | | | | | [List of Subsidiaries of the [removed: Registrant](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/ex211listofsubsidiariesq42.htm).] [added: Registrant](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/ex211listofsubsidiariesq42.htm).] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 23.1 | | | | | | [Consent of Independent Registered Public Accounting [removed: Firm.](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/ex231independentauditorcon.htm)] [added: Firm.](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/ex231independentauditorcon.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 24.1 | | | | | | [Power of [removed: Attorney](#ic034a470397a417699a027ca8e2873b3_175)] [added: Attorney](#i584eaa2c85f14cbd851a042169686213_181)] (contained on signature page hereto) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 31.1 | | | | | | [Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/ex311ceocertificationq42023.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/ex311ceocertificationq42024.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 31.2 | | | | | | [Certification of the Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/ex312cfocertificationq42023.htm).] [added: 2002](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/ex312cfocertificationq42024.htm).] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 32.1* | | | | | | [Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/ex321ceoandcfo906certifica.htm).] [added: 2002](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/ex321ceoandcfo906certifica.htm).] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 97.1 | | | | | | [Compensation Recovery Policy](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000043/final_aristaxclawbackpol.htm) | | | | | | [added: 10-K] | | | | | | [added: 001-36468] | | | | | | [added: 97.1] | | | | | | [added: 2/13/2024] | | | | | | [removed: ü] | | |

| 3.3 | | | | | | [Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Registrant](https://www.sec.gov/Archives/edgar/data/1596532/000159653224000402/amendmenttotheamendedandre.htm) | | | | | | 8-K | | | | | | 001-36468 | | | | | | 3.1 | | | | | | 12/3/2024 | | | | | | | | |

| 10.29 | | | | | | [Consulting Agreement between the Company and Anshul Sadana, dated May 21, 2024](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/consultingagreement_sada.htm) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

| 19.0 | | | | | | [Insider Trading Policy](https://www.sec.gov/Archives/edgar/data/1596532/000159653225000028/insidertradingpolicy_20250.htm) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ü | | |

* * Certain information contained in this exhibit has been redacted pursuant to Item 601(a)(6) of Regulation S-K.

| Dated: | | | February [removed: 12, 2024] [added: 18, 2025] | | | By: | | | /s/ JAYSHREE ULLAL | | |

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Jayshree Ullal and [removed: Ita Brennan,] [added: Chantelle Breithaupt,] jointly and severally, his or her attorney-in-fact, with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or substitutes, may do or cause to be done by virtue hereof.

| /s/ JAYSHREE ULLAL | | | | | | President, Chief Executive Officer and Chairperson of the Board (Principal Executive Officer) | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ KENNETH DUDA | | | | | | Chief Technology Officer, Senior Vice President, Director | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ KELLY BATTLES | | | | | | Director | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ LEWIS CHEW | | | | | | Director | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ CHARLES GIANCARLO | | | | | | Director | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ DAN SCHEINMAN | | | | | | Director | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ MARK TEMPLETON | | | | | | Director | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ YVONNE WASSENAAR | | | | | | Director | | | | | | February [removed: 12, 2024] [added: 18, 2025] | | |

| /s/ CHANTELLE BREITHAUPT | | | | | | Chief Financial Officer (Senior Vice President) | | | | | | February 18, 2025 | | |

| Chantelle Breithaupt | | | | | | | | | | | | | | |

| /s/ ITA BRENNAN | | | | | | Chief Financial Officer (Principal Accounting and Financial Officer) | | | | | | February 12, 2024 | | |

| Ita Brennan | | | | | | | | | | | | | | |