Arista Networks beats Q2 estimates, surpasses 50 million cloud network ports shipped

Revenue for Q2 was $707.3 million, an increase of 30.8% year-over-year.

Arista Networks, which provides networking for large data center and campus environments, reported better-than-expected second quarter financial results on Monday. 

Non-GAAP net income for the second quarter was $216.8 million, or $2.72 per diluted share. Revenue was $707.3 million, an increase of 30.8% year-over-year.

Analysts were expecting earnings of $2.55 per share on revenue of $540.6 million. Arista had been predicting a revenue between $675 million and $695 million as well as a non-GAAP gross margin of 63% to 65%. 

"Our record second quarter reflects continued momentum and diversification across our top verticals and product-lines," said Arista Networks CEO Jayshree Ullal. 

"We are on the cusp of network software and data driven transformation and look forward to delighting many more customers."

The report sent Arista shares up by 1.81% in late trading.

Arista surpassed 50 million cloud network ports shipped cumulatively in Q2, according to the company's data. 

For the third quarter of 2021, Arista expects revenue between $725 million and $745 million as well as a non-GAAP operating margin of approximately 37%

Analysts are predicting a fiscal year revenue of $2.76 billion.

"We are pleased with the strong performance of the business in the quarter, as we continued to work with customers and partners to navigate a challenging supply environment," said Ita Brennan, Arista's CFO.