Arista Networks, Inc. stock research
FY2024 Q1
Arista Networks (ANET) Gross Margin — Quarter Ended Mar 31, 2024
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 but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 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 but improved compared to the same quarter last year.
- The gross margin improved compared to the same quarter last year, driven by a larger increase in gross profit relative to the increase in cost of revenue. The margin driver is the relationship between revenue growth and cost growth.
- Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew at a faster pace than revenue. Compared to the same quarter last year, gross margin was higher, with gross profit growing more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.7%
Gross profit
$1.0B
Revenue
$1.6B
Cost of revenue
$570.0M
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+4.2 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.5B | $884.1M | $574.8M | 60.6% |
| Sep 30, 2023 | $1.5B | $942.4M | $567.0M | 62.4% |
| Dec 31, 2023 | $1.5B | $999.2M | $541.2M | 64.9% |
| Mar 31, 2024 | $1.6B | $1.0B | $570.0M | 63.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.1 pts
Year-over-year change
Mar 31, 2023
+4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved compared to the same quarter last year, driven by a larger increase in gross profit relative to the increase in cost of revenue. The margin driver is the relationship between revenue growth and cost growth.
Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew at a faster pace than revenue. Compared to the same quarter last year, gross margin was higher, with gross profit growing more than cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as a faster increase in cost could pressure gross margin.