Arista Networks NYSE:ANET rose 10.76% in premarket trading after reporting second-quarter revenue of $3.04 billion, its first quarter above $3 billion, up 37.7% from a year earlier and past the $2.83 billion analyst estimate. Non-GAAP earnings came in at $1.02 a share against $0.89 expected.
Non-GAAP gross margin fell to 63.4% from 65.6%. Non-GAAP operating margin went the other way, widening to 49.9% from 48.8%, helped by operating expenses of $532.3 million against revenue growth of nearly 38%. Current deferred revenue reached $5.1 billion at the end of the quarter, up from $4.0 billion at year end, with another $1.77 billion sitting in non-current. Arista closed the quarter with $13.3 billion in combined cash and marketable securities.
For the third quarter, Arista guided for about $3.3 billion in revenue and non-GAAP EPS of $1.06 to $1.08, with non-GAAP operating margin of 48% to 49%.