Arista Networks, Inc.

Welcome to the third quarter 2022 Arista Network's 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 Shriulal, Arista Network's President and Chief Executive Officer, and Ida Brennan, Arista's Chief Financial Officer. This afternoon, Arista Networks issued a press release announcing the results for its fiscal third quarter ending September 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, Arista Networks management will make forward-looking statements, including those relating to our financial outlook for the fourth 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, extended lead times, product innovations, 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 third quarter 2022 earnings call. We delivered record revenues of $1.17 billion for the quarter with a non-GAAP earnings per share of $1.25. Services and software support renewals contributed approximately 16.3% of the revenue. Our non-GAAP gross margins of 61.2% was pressured by escalated costs due to supply chain, as well as a substantially higher Cloud Titan mix. We expect some of these trends to continue into 2023. Cloud Titan was our largest vertical, followed by enterprise, and then cloud specialty providers, financial, and finally, service providers. International contribution was at 17%, with the Americas at 83%, once again reflecting stronger cloud customer influence. Our Q3 2022 results reinforce Arista's customer relevance in both Cloud Titan and specialty cloud providers. I would like to invite Anshul Sadana, our Chief Operating Officer and Cloud Czar, to shed some light on this.