Arista Networks, Inc. stock research
FY2023 Q1
Arista Networks (ANET) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter a year ago.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue grew at a faster pace, compressing gross margin.
- Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.5%
Gross profit
$804.5M
Revenue
$1.4B
Cost of revenue
$546.8M
Quarter-over-quarter change
n/a
Year-over-year change
-3.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.4B | $804.5M | $546.8M | 59.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue grew at a faster pace, compressing gross margin.
Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has pressured gross margin.