Arista Networks, Inc.

Welcome to the second quarter 2022 Arista Networks financial results earnings conference call. During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question and answer session. Instructions will be provided at that time. If at any time during the conference you need to reach an operator, please press the star followed by zero. As a reminder, this conference is being recorded and will be available for replay from the Investor Relations section at the Arista website following this call. Ms. Liz Stein, Arista's Director of Investor Relations, you may begin.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us. With me on today's call are Jay Sriyulal, Arista Network's President and Chief Executive Officer, and Ida Brennan, Arista's Chief Financial Officer. This afternoon, ERISA Networks issued a press release announcing the results for its fiscal second quarter, ending June 30, 2022. If you would like a copy of the release, you can access it online at our website. During the course of this conference call, ERISA Networks management will make forward-looking statements, including those relating to our financial outlook for the third quarter of the 2022 fiscal year, longer-term financial outlooks for 2022 and beyond, our total addressable market and strategy for addressing these market opportunities, supply chain constraints, component costs, manufacturing capacity, inventory purchases, and inflationary pressures on our business, the potential impact of COVID-19, customer mix, product innovation, and the benefits of acquisitions, which are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically in our most recent Form 10Q and Form 10K, and which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. Also, please note that certain financial measures we use on this call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided reconciliations of these non-GAAP financial measures to GAAP financial measures in our earnings press release. With that, I will turn the call over to Jayshree.

Thank you, Liz. Thank you, everyone, for joining us this afternoon for our second quarter 2020 earnings call. We delivered revenues of $1.05 billion for the quarter with a non-GAAP earnings per share of $1.08. Service and support renewals contributed approximately 17.6% of the revenue. Our non-GAAP gross margins of 61.9% was influenced by escalating costs due to supply chain, as well as a higher Cloud Titan mix. We do expect both these trends to continue throughout 2022. In terms of Q2 2022 verticals, Cloud Titans was our largest vertical, followed by the enterprise, Cloud specialty providers and financials tied for third position with the service providers in fourth place. International contribution was 20% with the Americas at 80% and strong performance, particularly with our large cloud customers. In the first half of 2022, we completed two small acquisitions to bolster our investments in security and switching fabrics. We acquired Untangle Incorporated, a security asset for edge threat management for our commercial branch offerings, led by former CEO Scott Devon. In late Q2, we closed the acquisition of Pluribus Networks, led by former CEO Kumar Srikantan. Pluribus pioneered a new class of unified cloud fabric networking, endorsed by our partners Ericsson for telco and 5G cloud, and NVIDIA for DPU-based networking. Our Q2 2022 results reinforced Arista's customer relevance in Cloud Titan, specialty cloud providers, and mainstream enterprises. As I mentioned previously, our million dollar logos have doubled in the last three years in all categories. Greater than a million, greater than five million, greater than 10 million, and significantly greater than 25 million customers. I would like to invite Anshul Sadana, our Chief Operating Officer and Chief Cloud Expert to shed some light on the nature of our strategic partnerships with CloudTitan that contribute at least hundreds of millions annually. Anshul?