Arista Networks, Inc.

Welcome to the fourth 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 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, ERISA Networks issued a press release announcing the results for its fiscal fourth quarter ending December 31st, 2022. If you would like a copy of this 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 first quarter of the 2023 fiscal year longer-term financial outlooks for 2023 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, extended lead times, 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 Jay Shree.

Thank you, Liz. And I'm glad we avoided Valentine's Day this time. Thank you, everyone, for joining us this afternoon on our fourth quarter 2022 earnings call. 2022 has certainly been a record year for Arista. You might recall in November 2021 analyst day, We had given you a guidance of 30% growth and instead have achieved well beyond that at 48% growth for the year, driving to an annual revenue of $4.38 billion with a non-GAAP earnings per share of $4.58, translating to an EPF growth of 58% for 2022. Indeed, a memorable year. Let's get back to some Q4 2022 specifics. We delivered 1.276 billion for the quarter with a non-GAAP earnings per share of $1.41. Services and software support renewals contributed approximately 15.8% of the revenue. Our non-GAAP gross margin was 61% influenced by our supply chain overhead and cloud tightening concentration. International contribution registered at 23.5% with the Americas at 76.5% in 2022. This was one of our strongest performing international quarters in recent history. In terms of Q4 2022 verticals, Cloud Titans was our largest and first, followed by Enterprise, and then specialty cloud providers at third place, financials at fourth, and service providers at fifth place. In 2023, we will report the three segment sectors instead of the verticals. Shifting to the segment sector revenue for 2022, Cloud Titans contributed significantly at approximately 46%, resulting in a triple-digit growth annually. Enterprise and financials together were strong at approximately 32%, while the providers were at approximately 22%. Both Meta and Microsoft are now far greater than 10% customers at 25.5% and 16% contribution, respectively. Clearly, we continue to enjoy a strong and strategic partnership with M&M. With that, I'd like to now invite Anshul Sadana, our Chief Operating Officer, to shed more light on our Cloud Titan performance.