Arista Networks Inc (ANET) 2022 Q3 法說會逐字稿

Welcome to the Third Quarter 2022 Arista Networks Financial Results Earnings Conference Call. (Operator Instructions)

歡迎參加 2022 年第三季 Arista Networks 財務業績收益電話會議。 （操作員指令）

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 Stine, Arista's Director of Investor Relations. You may begin.

提醒一下，本次會議正在錄製中，電話會議結束後可從 Arista 網站的投資者關係部分重播。 Arista 投資者關係總監 Liz Stine 女士。你可以開始了。

Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me on today's call are Jayshree Ullal, Arista Networks' President and Chief Executive Officer; and Ita 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.

謝謝您，接線生。大家下午好，感謝大家的參與。今天與我一起參加電話會議的還有 Arista Networks 總裁兼執行長 Jayshree Ullal；以及 Arista 財務長 Ita Brennan。今天下午，Arista Networks發布新聞稿，宣布了截至2022年9月30日的第三財季業績。

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 outlook 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 discussed in detail in our documents filed with the SEC, specifically in our most recent Form 10-Q and Form 10-K, and which could cause actual results to differ materially from those anticipated by these statements.

如果您想要一份該新聞稿的副本，您可以在我們的網站上線上取得。在本次電話會議期間，Arista Networks 管理層將做出前瞻性陳述，包括與 2022 財年第四季度的財務展望、2022 年及以後的長期財務展望、我們的總體目標市場和應對這些市場機會的戰略、供應鏈限制、組件成本、製造能力、庫存採購和通脹壓力對我們業務的影響、COV 的影響的風險和不確定性的影響，特別是在我們最近的 10-Q 表和 10-K 表中，並且可能導致實際結果與這些陳述預期的結果有重大差異。

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.

這些前瞻性陳述自今天起適用，您不應依賴它們來代表我們未來的觀點。我們不承擔本次電話會議後更新這些聲明的義務。另請注意，我們在本次電話會議中使用的某些財務指標是以非 GAAP 為基礎表示的，並且已進行調整以排除某些費用。我們在收益新聞稿中提供了這些非 GAAP 財務指標與 GAAP 財務指標的對帳表。

With that, I will turn the call over to Jayshree.

說完這些，我會把電話轉給 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.

謝謝你，莉茲。感謝大家今天下午參加我們的 2022 年第三季財報電話會議。本季度，我們實現了創紀錄的 11.7 億美元營收，非公認會計準則每股收益為 1.25 美元。服務和軟體支援續約貢獻了約16.3%的收入。

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, financials and finally, service providers. International contribution was at 17%, with the Americas at 83%, once again reflecting stronger cloud customer influence.

我們的非公認會計準則毛利率為 61.2%，受到供應鏈成本上升以及雲端運算巨頭價格大幅上漲的壓力。我們預計其中一些趨勢將持續到 2023 年。國際貢獻率為 17%，其中美洲為 83%，再次反映出更強大的雲端客戶影響力。

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 (inaudible) to shed some light on this.

我們的 2022 年第三季業績鞏固了 Arista 在 Cloud Titan 和專業雲端供應商中的客戶相關性。我想邀請我們的營運長 Anshul Sadana（聽不清楚）對此進行一些闡述。

Thank you, Jayshree. Our partnership with the cloud Titans and specialty providers keeps getting stronger. While supply chain got most of the attention for the last 2 years, we have achieved several technical milestones with our customers during this period, taking our products from labs to pilot to high-volume deployments.

謝謝你，Jayshree。我們與雲端運算巨頭和專業供應商的合作關係不斷加強。雖然供應鏈在過去的兩年裡得到了最多的關注，但在此期間我們與客戶一起實現了多個技術里程碑，將我們的產品從實驗室推向試點，再到大批量部署。

We have successfully deployed in more use cases than before, including the leaf-spine cluster designs, (inaudible), data center interconnects, backbone, WAN and Edge. Our customers have a deep appreciation of our expertise and execution. The Titans, starting with Microsoft and Meta are continuing with their 400-gig journey.

我們已成功部署了比以前更多的用例，包括葉脊叢集設計、（聽不清楚）、資料中心互連、主幹、廣域網路和邊緣。我們的客戶對我們的專業知識和執行力深表讚賞。從微軟和 Meta 開始的「泰坦」們正在繼續他們的 400G 之旅。

They're using our latest fixed and debugger modular 400-gig switches in these new deployments. We are continuing to expand our use cases with the other titans too. While they are relatively smaller, these partnerships are healthy and continuing to grow as well. The specialty cloud providers are continuing to grow, too. They have very similar leaf-spine designs, but with smaller clusters, and they too have the same DCI and regional designs, just fewer ports. We are in a competitive industry, and our customers like some diversity. However, we are very well positioned to maintain and grow our share given our quality, execution and strong partnerships. Back to you, Jayshree.

在這些新部署中，他們使用了我們最新的固定和調試模組化 400 千兆交換器。我們也持續擴大與其他巨頭的合作用例。儘管這些合作夥伴關係相對較小，但仍然健康且持續成長。專業雲端提供者也在持續成長。它們具有非常相似的葉脊設計，但群集較小，並且它們也具有相同的 DCI 和區域設計，只是端口較少。我們處在一個競爭激烈的行業，我們的客戶喜歡一些多樣性。然而，憑藉我們的品質、執行力和強大的合作夥伴關係，我們完全有能力維持並擴大我們的份額。回到你身邊，Jayshree。

Thanks, Anshul. We are experiencing one of our best ever cloud titan growth and revenue this year since IPO. Therefore, we expect north of 45% contribution in 2022 from this category with a diversified product portfolio and use cases, as you heard from Anshul. Speaking of new products, Arista introduced the next phase of routing this quarter in Q3.

謝謝，安舒爾。自 IPO 以來，我們今年正經歷雲端運算巨頭歷史上最好的成長和收入之一。因此，正如您從 Anshul 聽到的那樣，我們預計 2022 年該類別的貢獻將超過 45%，並且產品組合和用例也將多樣化。說到新產品，Arista 在本季第三季推出了下一階段的路由產品。

Arista's Cloud-Grade routing platform, powered by Extensible Operating System, EOS and our Network Data Lake, NetDL, is built on a consistent architectural foundation for multiple routing use cases such as peering, content delivery, networks, Cloud Connect, Enterprise Edge, mobile and Metro Edge as well as carrier core. We have successfully transformed legacy routers to modern routing. For our customers securing data in transit, Arista's innovative TunnelSec technology provides in-line encryption at wire speed from 10 gig all the way up to 400 gig, eliminating the performance bottleneck of traditional encryption.

Arista 的雲端級路由平台由可擴展作業系統 EOS 和我們的網路資料湖 NetDL 提供支援，建立在一致的架構基礎上，適用於多種路由用例，例如對等、內容交付、網路、雲端連接、企業邊緣、行動和城域邊緣以及營運商核心。我們已成功將傳統路由器轉變為現代路由。對於保護傳輸中的資料的客戶，Arista 的創新 TunnelSec 技術提供從 10 GB 到 400 GB 的線速線上加密，消除了傳統加密的效能瓶頸。

Arista's latest R3 series routing portfolio continues to deliver for our adjacent market sector that we began 6 years ago. As I mentioned previously, our customer momentum continues. Our $1 million logos have doubled in the last 3 years and Arista's market share in 100, 200 and 400-gig ports clients placing us at a #1 market leader position according to many industry analysts. Let me illustrate with a few customer wins this year. The recurring theme to remember is that Arista is diversifying its business with many use cases such as data center, campus, routing, cloud and edge based all on cloud principles. Our first enterprise win highlights the ever-growing strength of a single solution for diverse use cases in the data center, in the campus and in data center interconnect routing.

Arista 最新的 R3 系列路由產品組合繼續為我們 6 年前開始的鄰近市場領域提供服務。正如我之前提到的，我們的客戶發展勢頭持續良好。許多產業分析師認為，我們的 100 萬美元標誌在過去 3 年中翻了一番，Arista 在 100、200 和 400 千兆埠客戶的市佔率使我們處於第一的市場領先地位。讓我用今年一些客戶成功的例子來說明一下。要記住的反覆出現的主題是，Arista 正在透過多種用例實現業務多元化，例如資料中心、校園、路由、雲端和邊緣，所有這些都基於雲端原則。我們首次在企業中取得的勝利凸顯了單一解決方案在資料中心、校園和資料中心互連路由等不同用例中日益增強的實力。

Based on industry standards and monitoring capabilities with Arista's DANZ Monitoring Fabric, or DMF, Arista was uniquely positioned to provide a single EOS binary code version using CloudVision and our NetDL stack. The next is an international Americas win in the financial sector, providing secure data center solutions. Arista's competitive advantage was twofold.

基於業界標準和 Arista 的 DANZ 監控結構 (DMF) 的監控功能，Arista 擁有獨特的優勢，可以使用 CloudVision 和我們的 NetDL 堆疊提供單一 EOS 二進位程式碼版本。接下來是國際美洲在金融領域的勝利，提供安全的資料中心解決方案。 Arista 的競爭優勢有兩面。

First, our single U.S. stack provided reassurance that they could handle security patches, bug patches, new software code upgrades with zero down time, much better than our peers in the industry. Also, we can do much better automation. Traditionally, it used to take customers several months, if not years, to go live with a single data center with their incumbent vendor. Arista's programmatic APIs, continuous integration validation with DevOps integration was deployed across multiple data centers within just a few days with no human intervention or errors offering the lowest total cost of ownership. Our third win demonstrates our strength in campus in the health care sector. This customer was looking to upgrade its legacy infrastructure in multiple hospital locations and moving more to a cloud-operated model.

首先，我們的單一美國堆疊保證了他們可以在零停機時間內處理安全性修補程式、錯誤修補程式、新軟體程式碼升級，比業內同行好得多。此外，我們可以實現更好的自動化。傳統上，客戶通常需要幾個月甚至幾年的時間才能與現有供應商合作啟動單一資料中心。 Arista 的程式設計 API、持續整合驗證與 DevOps 整合僅在幾天內就部署到了多個資料中心，無需人工幹預或錯誤，從而提供了最低的總體擁有成本。我們的第三場勝利證明了我們在校園醫療保健領域的實力。該客戶希望升級其在多家醫院的舊有基礎設施，並轉向雲端運營模式。

Arista provided that cloud-managed network offering across the data center campus and cognitive WiFi and also WAN Edge and Internet Edge. The single pane of glass offers real-time network-as-a-service with visibility, health checks, troubleshooting and provisioning to the client, all the way to campus and to the cloud infrastructure. The next international win shows our continuing presence in the public sector. This customer wanted to move to 100-gigabit Ethernet using Arista's Spline and Spine platforms to connect into incumbent DWDM, Edge and load balances for massive route scale.

Arista 提供了跨資料中心園區和認知 WiFi 以及 WAN Edge 和 Internet Edge 的雲端管理網路服務。單一視窗提供即時網路即服務，包括可視性、健康檢查、故障排除和配置到客戶端，一直到校園和雲端基礎設施。下一次國際勝利顯示了我們在公共部門的持續存在。該客戶希望使用 Arista 的 Spline 和 Spine 平台遷移到 100 千兆以太網，以連接到現有的 DWDM、Edge 和負載平衡，以實現大規模路由規模。

Arista's advantage was the lowest software security vulnerabilities over a 9-year period compared to alternatives that were significantly higher. This, by the way, also applied to Arista's cognitive WiFi with zero vulnerabilities. Our final win emphasizes Arista's ability to provide encryption as a part of a secure routing solution.

Arista 的優點在於，與其他高出許多的公司相比，9 年內的軟體安全漏洞最少。順便說一句，這也適用於 Arista 的零漏洞認知 WiFi。我們的最終勝利強調了 Arista 作為安全路由解決方案的一部分提供加密的能力。

This was an international Tier 2 service provider, whereby Arista delivered full line rate data in transit for the customers' remote sites. This bespoke design encompasses Layer 3 virtual private network, VPN, over VXLAN routing solutions with macro segmentation based on access list and direct flow rules, all managed by CloudVision.

這是一家國際二級服務供應商，由 Arista 為客戶的遠端站點提供全線速率的傳輸資料。這種客製化設計涵蓋第 3 層虛擬專用網路、VPN、基於存取清單和直接流規則的 VXLAN 路由解決方案以及巨集分段，全部由 CloudVision 管理。

Overall, you can see that Arista continues to gain customer relevance and market share and building our vision for a client to cloud network. The promise of not only delivering on superior technology, but the ability to help our customers realize the operational benefits via world-class quality, support is a real compelling advantage. We look forward to sharing more of our vision and strategy at our Analyst Day this Thursday, November 3, 2022. Now I will turn over to Ita for our financial specifics.

總體而言，您可以看到 Arista 繼續獲得客戶相關性和市場份額，並建立我們的客戶到雲端網路的願景。我們承諾不僅提供卓越的技術，而且能夠透過世界一流的品質和支援來幫助我們的客戶實現營運效益，這是一個真正引人注目的優勢。我們期待在 2022 年 11 月 3 日星期四的分析師日上分享更多我們的願景和策略。

Thanks, Jayshree, and good afternoon. This analysis of our Q3 results and our guidance for Q4 2022 is based on non-GAAP and excludes all noncash stock-based compensation impacts, certain acquisition-related charges and other nonrecurring items. A full reconciliation of our selected GAAP to non-GAAP results is provided in our earnings release. Total revenues in Q3 were $1.177 billion, up 57.2% year-over-year and well above the upper end of our guidance range of $1.025 billion to $1.075 billion.

謝謝，Jayshree，下午好。我們對第三季業績的分析和 2022 年第四季的指引是基於非 GAAP，不包括所有非現金股票薪酬的影響、某些收購相關費用和其他非經常性項目。我們在收益報告中提供了所選的 GAAP 結果與非 GAAP 結果的完整對帳表。第三季總營收為 11.77 億美元，年增 57.2%，遠高於我們預期的 10.25 億美元至 10.75 億美元的上限。

Overall demand for our products remains healthy across all areas of the business. Supply challenges continued throughout the quarter, with ongoing supplier decommits, constraining shipments and requiring higher-cost broker purchases and expedite fees. Services and subscription software contributed approximately 16.3% of revenue in the third quarter, down from 17.6% in Q2. This largely reflected accelerated growth in product revenues, while service and software continue to grow on a more consistent basis.

我們產品的所有業務領域的整體需求仍然保持強勁。整個季度供應挑戰持續存在，供應商不斷取消承諾，限制了出貨量，並需要更高成本的經紀人採購和緊急費用。服務和訂閱軟體在第三季貢獻了約 16.3% 的收入，低於第二季的 17.6%。這在很大程度上反映了產品收入的加速成長，而服務和軟體繼續以更穩定的方式成長。

International revenues for the quarter came in at $199.1 million or 17% of total revenue, down from 20% in the second quarter. This reflected strength in U.S. revenues in the period and particularly with our larger cloud customers. Overall gross margin in Q3 was 61.2%, just above the midpoint of our guidance range of 60% to 62%. As previously discussed, our current lower gross margin ranges reflect a healthy cloud mix and higher levels of broker component sourcing and expedite fees.

本季國際營收為 1.991 億美元，佔總營收的 17%，低於第二季的 20%。這反映了該時期美國收入的強勁成長，特別是來自我們較大的雲端客戶的收入。第三季的整體毛利率為 61.2%，略高於我們預期範圍 60% 至 62% 的中點。如前所述，我們目前較低的毛利率範圍反映了健康的雲端組合和更高水準的經紀人組件採購和加急費用。

Operating expenses for the period were mostly flat to last quarter at $227.7 million or 19.3% of revenue. R&D spending came in at $150.1 million or 12.8% of revenue up from last quarter at $148 million. This primarily reflected increased headcount costs in the period with slightly lower new product introduction costs.

本期間營業費用與上一季基本持平，為 2.277 億美元，佔營收的 19.3%。研發支出為 1.501 億美元，佔營收的 12.8%，高於上一季的 1.48 億美元。這主要反映了本期間員工成本的增加和新產品推出成本的略有下降。

Sales and marketing expense was $62.8 million or 5.3% of revenue and G&A costs were $14.7 million or 1.3% of revenue, both mostly consistent with last quarter. Our operating income for the quarter was $492.1 million or 41.8% of revenue. Other income and expense for the quarter was a favorable $6.1 million and our effective tax rate was approximately 21.3%.

銷售和行銷費用為 6,280 萬美元，佔收入的 5.3%，一般及行政費用為 1,470 萬美元，佔收入的 1.3%，均與上一季基本一致。本季我們的營業收入為 4.921 億美元，佔營收的 41.8%。本季的其他收入和支出為 610 萬美元，我們的有效稅率約為 21.3%。

This resulted in net income for the quarter of $391.9 million or 33.3% of revenue. Our diluted share number was 314.4 million shares, resulting in a diluted earnings per share number for the quarter of $1.25, up approximately 69% from the prior year.

這使得本季淨收入達到 3.919 億美元，佔營收的 33.3%。我們的稀釋股數為 3.144 億股，導致本季每股稀釋收益為 1.25 美元，比上年增長約 69%。

Now turning to the balance sheet. Cash, cash equivalents and investments ended the quarter at approximately $2.98 billion. We repurchased $47.6 million of our common stock during the third quarter at an average price of approximately $99 per share. As a reminder, we've now repurchased approximately $740 million or 7 million shares against our October 2021, $1 billion Board authorization.

現在轉向資產負債表。本季末的現金、現金等價物和投資約為 29.8 億美元。我們在第三季以平均每股約 99 美元的價格回購了 4,760 萬美元的普通股。提醒一下，我們現在已回購了價值約 7.4 億美元或 700 萬股股票，而董事會已於 2021 年 10 月授權回購 10 億美元。

The actual timing and amount of future repurchases will be dependent on market and business conditions, business requirements, stock price, acquisition opportunities and other factors. Now turning to our operating cash performance for the third quarter. We generated $134.1 million of cash from operations in the quarter, reflecting strong earnings performance, somewhat offset by increased working capital investments.

未來回購的實際時間和金額將取決於市場和業務狀況、業務需求、股票價格、收購機會和其他因素。現在來談談我們第三季的經營現金表現。本季度，我們產生了 1.341 億美元的經營現金，反映出強勁的獲利表現，但營運資本投資的增加在一定程度上抵消了這一影響。

Increases in inventory and other assets are mainly driven by receipt of components for future shipments, including shipments delayed due to supplier decommits. This trend should reverse once overall supply conditions for these decommitted components improve.

庫存和其他資產的增加主要是由於收到未來裝運的零件，包括由於供應商取消承諾而延遲的裝運。一旦這些退役零件的整體供應狀況改善，這種趨勢就會逆轉。

DSOs came in at 51 days, flat to last quarter. Inventory turns were 1.7x, down from 1.9x in the prior quarter. Inventory increased to $1.1 billion in the quarter, up from $852.8 million in the prior period, reflecting higher component and peripherals inventory and an increase in switch-related finished goods in transit. Our purchase commitment number for the quarter was $4.3 billion, down from $4.5 billion in Q2. These multiyear purchase commitments reflect overall strength and demand and the current long lead time supply environment.

DSO 為 51 天，與上一季持平。庫存週轉率為 1.7 倍，低於上一季的 1.9 倍。本季庫存從上期的 8.528 億美元增加至 11 億美元，反映出零件和周邊設備庫存增加以及交換機相關成品運輸量增加。我們本季的採購承諾金額為 43 億美元，低於第二季的 45 億美元。這些多年的購買承諾反映了整體實力和需求以及當前的長交貨期供應環境。

As a reminder, we continue to prioritize newer early life cycle products for inclusion in these strategies in order to help mitigate the risk of excess or obsolescence. Our total deferred revenue balance was $941 million, down from $1 billion in Q2. The majority of the deferred revenue balance is services related and directly linked to the timing and term of service contracts, which can vary on a quarter-by-quarter basis.

提醒一下，我們繼續優先考慮較新的早期生命週期產品以納入這些策略，以幫助減輕過剩或過時的風險。我們的遞延收入總額餘額為 9.41 億美元，低於第二季的 10 億美元。遞延收入餘額大部分與服務有關，與服務合約的時間和期限直接相關，並且可能按季度變化。

Approximately $165 million of the balance, down from $228 million last quarter, represents product deferred revenue largely related to customer-specific acceptance clauses for new products with our larger customers. Accounts payable days were 56 days, down from 63 days in Q2, reflecting the timing of inventory receipts and payments.

餘額中約有 1.65 億美元（低於上一季的 2.28 億美元）代表產品遞延收入，主要與我們較大客戶針對新產品的客戶特定驗收條款有關。應付帳款天數為 56 天，低於第二季的 63 天，反映了庫存收款和付款的時間。

Capital expenditures for the quarter were $10.4 million. Now turning to our outlook for the fourth quarter. We came into the year calling for 30% year-over-year revenue growth, somewhat balanced across our market sectors and heavily constrained by supply. We now expect revenue growth for the year of approximately 45% at the midpoint of our Q4 guidance with a healthy contribution coming from our Cloud Titan customers in what has remained a stubbornly constrained supply environment.

本季資本支出為 1040 萬美元。現在來談談我們對第四季的展望。我們今年的目標是實現營收年增 30%，各個市場部門之間實現基本平衡，但受到供應的嚴重限制。我們現在預計，以第四季指引的中位數計算，全年營收將成長約 45%，在供應環境依然嚴重受限的情況下，來自 Cloud Titan 客戶的貢獻十分可觀。

Our Cloud Titan customers are now expected to account for approximately 45% of our revenue for the year with major contributions from Meta and Microsoft. Demand from our enterprise and provider businesses has also been strong, exceeding our original expectations from a demand perspective, but with revenue somewhat constrained by supply.

我們的 Cloud Titan 客戶預計將占我們今年營收的約 45%，其中 Meta 和微軟貢獻最大。來自我們企業和提供者業務的需求也一直很強勁，從需求角度來看超出了我們最初的預期，但收入受到供應的一定限制。

We expect gross margin pressure to continue in the quarter with some continued need for broker purchases and expedite fees in response to ad hoc supplier decommits combined with a healthy cloud mix. Even allowing for the lower gross margins, we expect healthy operating margins for the quarter, again demonstrating the resiliency of the business model with significant bottom line flow-through from increased revenue scale.

我們預計本季毛利率將繼續面臨壓力，因為為了應對臨時供應商的取消承諾以及健康的雲端組合，需要繼續支付經紀人採購和加急費用。即使考慮到較低的毛利率，我們預計本季的營業利潤率仍將保持健康，這再次證明了該業務模式的彈性，即收入規模的增加將帶來顯著的底線流轉。

With all of this as a backdrop, our guidance for the fourth quarter, which is based on non-GAAP results and excludes any noncash stock-based compensation impacts and other nonrecurring items is as follows: revenues of approximately $1.175 billion to $1.2 billion; gross margin of approximately 60% to 62%, operating margin of approximately 40%. Our effective tax rate is expected to be 21.5% with diluted shares on a post-fit basis of approximately 360 million shares.

基於以上所有因素，我們對第四季度的預期基於非公認會計準則結果且不包括任何非現金股票薪酬影響和其他非經常性項目，如下所示：收入約為 11.75 億美元至 12 億美元；毛利率約60%至62%，營業利潤率約40%。我們的有效稅率預計為 21.5%，稀釋股份數量約為 3.6 億股。

I will now turn the call back to Liz. Liz?

我現在將電話轉回給利茲。莉茲？

Thank you, Ita. We will now move to the Q&A portion of the Arista earnings call. (Operator Instructions) Thank you for your understanding. Operator, take it away.

謝謝你，伊塔。我們現在進入 Arista 收益電話會議的問答部分。 （操作員指示）感謝您的理解。接線員，把它拿走。

(Operator Instructions)

（操作員指令）

Your first question today comes from the line of Tim Long with Barclays.

您今天的第一個問題來自巴克萊銀行的蒂姆·朗。

I was hoping you could just talk a little bit about kind of the enterprise and campus strategy. Obviously, you guys have been growing pretty well there. If you could kind of update the $400 million bogey for the year. And you've mentioned.

我希望您能稍微談談企業和校園策略。顯然，你們在那裡發展得很好。如果您可以更新今年 4 億美元的目標數字的話。您也提到過。

(technical difficulty)

（技術難度）

We lost him. Why don't -- I think I'll interpret your question, Tim, even though I only heard half of it, which is what is your status on campus and enterprise strategy? And how are you doing the $400 million target. Obviously, we will get back to you when we have completed the year. But at this point, we would say that the strength of our campus business from an order respective is (inaudible) $400 million. We are very supply constrained. So we're not yet sure if we will hit a $400 million from a revenue and shipment perspective.

我們失去了他。為什麼不——我想我會解釋一下你的問題，蒂姆，儘管我只聽到了一半，那就是你在校園和企業策略方面的地位如何？你們如何實現 4 億美元的目標？顯然，當我們完成這一年後，我們會回覆您。但在這一點上，我們可以說，我們校園業務的訂單規模是（聽不清楚） 4 億美元。我們的供應非常緊張。因此，我們還不確定從營收和出貨量的角度來看我們是否能達到 4 億美元。

I'm sorry, if you could just touch on the wireless LAN contribution. It sounds like that's doing a little bit better now. Sorry about that. I was muffled a little.

抱歉，您能否談談無線區域網路的貢獻？聽起來現在情況稍微好一點了。很抱歉。我有點啞口無言。

Yes. No, we are very pleased with our wireless LAN contribution. If you think back -- we acquired Mojo Networks in 2018, late 2018, early 2019, and it was a very small single-digit business. And we expect the wireless LAN contribution to become a triple-digit business next year.

是的。不，我們對無線區域網路的貢獻感到非常滿意。如果你回想一下——我們在 2018 年、2018 年底和 2019 年初收購了 Mojo Networks，當時它是一家規模非常小的個位數企業。我們預計明年無線區域網路貢獻將成為三位數的業務。

Your next question comes from the line of Alex Henderson with Needham.

您的下一個問題來自 Needham 的 Alex Henderson。

Great. Spectacular results for the quarter, for the year, in fact of the results last year. And I guess the question really boils down to are we going to see a reversion to more normalized growth? And if that happens, does that bring the margins back into the 37% range? And have we set ourselves up against extremely difficult comps as we go into 2023.

偉大的。本季、本年度，甚至去年的業績都非常出色。我想，問題實際上可以歸結為我們是否會看到經濟恢復到更正常化的成長？如果發生這種情況，利潤率是否會回到 37% 左右？當我們邁入 2023 年時，我們是否已經做好了面對極其艱難的準備？

How do we think about the mechanics of where we are alternatively? Clearly, supply constraints persist, you sound more constrained than you had earlier, and that would imply to me that at least for the first half of next year or even longer, you might still be in the strong growth trajectory. Can you just address how we should be thinking about the environment as we move forward.

我們該如何思考我們所處位置的機制？顯然，供應限制仍然存在，你聽起來比以前更加受限，這對我來說意味著至少在明年上半年甚至更長時間內，你可能仍處於強勁的成長軌跡中。您能否談談我們在未來的發展中應該如何考慮環境問題？

Alex, thank you for the kind words, and I'll tee it up and certainly let Ita speak to some of the details you are asking about. First of all, I just want to say I'm very proud of the team for executing. As you know, we came into the year expecting 30% growth.

亞歷克斯，謝謝你的好意，我會開始的，當然會讓伊塔談談你所問到的一些細節。首先，我只想說我為團隊的執行感到非常自豪。如您所知，我們今年的預期成長是 30%。

And here we are telling you it's going to be 45%. So a huge contribution from Anshul and the team, not only on the cloud titans, but all on the enterprise and rest of the cloud business, as we call it led by Anshul and Ashwin, a lot to be proud of, especially as the numbers get larger. So as you think about the numbers getting larger, it's going to be difficult to sustain 45% growth every year. I'd love to have it. But -- as you know, Arista is a volatile business, and you have to think of us across a 3- to 5-year CAGR, not just on an annual basis.

現在我們告訴您，比例是 45%。因此，Anshul 和他的團隊做出了巨大貢獻，不僅對雲端運算巨頭，而且對整個企業和其餘的雲端業務（我們稱之為由 Anshul 和 Ashwin 領導的）都做出了貢獻，這有很多值得驕傲的地方，特別是隨著數位的不斷擴大。所以當你想到數字越來越大時，要維持每年 45% 的成長率將會很困難。我很想擁有它。但是 — — 如您所知，Arista 是一家波動性很大的企業，您必須考慮我們 3 至 5 年的複合年增長率，而不僅僅是年度增長率。

So I still think we have a large TAM. We're going to do very well. But with the looming uncertainty of recession and CapEx spend, et cetera, it's definitely difficult to predict beyond a year. Having said that, I think, as I said before, we're having one of our best ever years in 2022. And even though the comps will be difficult, we feel confident that if supply chain gives us some relief, we can do well in 2023 as well. Ita, would you like to add.

因此我仍然認為我們擁有較大的 TAM。我們將會做得很好。但由於經濟衰退和資本支出等不確定性因素的迫在眉睫，預測一年後的情況肯定很困難。話雖如此，我認為，正如我之前所說，2022 年是我們有史以來最好的一年。 儘管同比增速會很困難，但我們相信，如果供應鏈能給我們帶來一些幫助，我們在 2023 年也能做得很好。 Ita，你想添加嗎？

Yes, I think, Alex, if you go back to the business model, Obviously, the gross margin kind of variability that we see that's kind of inherent to the business model is to do with the mix of the business, right? And that kind of works very nicely when you see accelerated cloud, you see that flow through to the operating margin line even though it might be impacting the gross margin in that time period, right?

是的，亞歷克斯，我認為，如果你回顧商業模式，顯然，我們看到的毛利率變化是商業模式所固有的，與業務組合有關，對嗎？當您看到加速雲端運算時，這種情況會非常有效，您會看到該流量流向營業利潤線，即使它可能會影響該時間段的毛利率，對嗎？

As we talk next Thursday, we'll talk some more about kind of what the growth rates look like for next year and kind of how that flows through the model. But there's no doubt that when we accelerate growth like this, it's hard for us to accelerate spending in the same rate and you never really kind of catch up (inaudible).

下週四我們也將進一步討論明年的成長率以及該成長率在模型中的體現。但毫無疑問的是，當我們像這樣加速成長時，我們很難以同樣的速度加快支出，而且你永遠無法真正趕上（聽不清楚）。

It's one to be proud of.

這是一件值得驕傲的事。

Your next question comes from the line of Paul Silverstein with Cowen.

您的下一個問題來自 Cowen 公司的 Paul Silverstein。

I guess I shouldn't ask you what everybody wants to know, which is what's your outlook for next year?

我想我不應該問你每個人都想知道的問題，那就是你對明年的展望是什麼？

You wait a couple of more days, Paul. Just a couple of more days.

你再等幾天，保羅。只要再過幾天。

(inaudible) from the numbers that macro had much, if any impact, but last week did identify macro as a meaningful driver of a very declining outlook. Any thoughts you can share in terms of what you're seeing? Is it affecting one iota customer decisions as to your products and solutions. Any thoughts would be appreciated.

（聽不清楚）從數據來看，宏觀經濟產生了很大影響（如果有的話），但上週確實發現宏觀經濟是前景大幅下滑的一個重要驅動因素。就您所看到的情況，您有什麼想法可以分享嗎？它是否會對客戶對您的產品和解決方案的決策產生絲毫影響？任何想法都將受到讚賞。

Look, I don't think Arista is a bellwether for macro. So we'll let the pundits on economists speak about that. But I think it's fair to say that data center spend has been very strong. And we're confident of our near-term strength, both in Cloud Titans, Enterprise and campus. If there's a place that we see some softening at all geographically, I would point to Europe. They've had effect of the pandemic, the energy crisis, the war, the Brexit, it's just a whole lot of things going on there. But our numbers are small. And even there, I would say it's more enough to execute better. So overall, macro is not yet an issue for us. We'll keep a vigilant eye on it, but so far, so good.

看，我不認為 Arista 是宏觀的領頭羊。所以我們讓經濟學家來談論這個問題。但我認為可以公平地說，資料中心支出一直非常強勁。我們對近期的實力充滿信心，無論是在 Cloud Titans、企業或校園領域。如果從地理位置來看，我們看到一個地方出現了疲軟跡象，那就是歐洲。他們受到了疫情、能源危機、戰爭、英國脫歐的影響，那裡發生了許多事情。但我們的人數很少。即使如此，我還是想說這足以執行得更好。所以總的來說，宏觀對我們來說還不是問題。我們會密切關注此事，但到目前為止，一切順利。

Jayshree, just to be clear, you're not seeing elongated sales cycles, you're not seeing cutbacks, deferrals or cancellations to any appreciable extent in orders, especially from enterprise. I appreciate that you're small, but your enterprise is not nothing. It's a growing business. And correct me if I'm wrong, but historically, in times of economic duress, most organizations have declined to change vendors or put off changes in their infrastructure that would result in bringing a new vendor like yourself?

Jayshree，需要明確說明的是，您沒有看到銷售週期延長，也沒有看到訂單（尤其是企業的訂單）出現明顯削減、延期或取消的情況。我知道你們規模很小，但你們的企業絕非一無所有。這是一個正在成長的業務。如果我錯了，請糾正我，但從歷史上看，在經濟困難時期，大多數組織都拒絕更換供應商或推遲基礎設施的變革，從而引入像您這樣的新供應商？

Right. I don't think Arista is any more a new vendor. I think we are the best-of-breed vendor. And what we see, especially in networking, unlike any.

正確的。我認為 Arista 不再是一個新供應商。我認為我們是最好的供應商。我們所看到的，特別是在網路領域，是與眾不同的。

(inaudible).

（聽不清楚）。

I would say if anything, Paul, just to answer your question more directly, unlike server or storage, networking is a very, very strategic spend. (inaudible) intense testing for scale. And we're all struggling with lead times. So switching vendors doesn't give you any particular advantage. And if you're looking for best-of-breed and best operational advantages, our customers would prefer to wait for us. So of course, we don't want to test their patients. We're going to do everything we can to execute. You're seeing that in our purchase commitment, but we've got to execute even better.

保羅，如果有什麼的話，我只是想更直接地回答你的問題，與伺服器或儲存不同，網路是一項非常非常具有策略性的支出。 （聽不清楚）進行嚴格的規模測試。我們都在為縮短交貨時間而苦苦掙扎。因此，更換供應商並不會為你帶來任何特別的優勢。如果您正在尋找最佳品種和最佳營運優勢，我們的客戶更願意等待我們。因此，我們當然不想對他們的病人進行檢測。我們將竭盡全力去執行。您可以在我們的購買承諾中看到這一點，但我們必須執行得更好。

Your next question comes from the line of Simon Leopold with Raymond James.

您的下一個問題來自雷蒙德詹姆斯 (Raymond James) 的西蒙利奧波德 (Simon Leopold)。

I wanted to get a little bit of help understanding how to think about the purchase order commitment. Just looking at the prior 10-Q filing, you had a 12-month commitment of like $2.9 billion, and you mentioned today that the overall commitment came down a little bit to $4.3 billion.

我希望得到一點幫助來理解如何看待採購訂單承諾。僅查看先前的 10-Q 文件，您就有 12 個月的承諾金額約為 29 億美元，而您今天提到總承諾金額略微下降至 43 億美元。

But what I'm struggling with is if we just sort of try to back into implied revenue, it's well above what most of the Street is modeling for the next year. And there are a number of ways that we could think about it. You could either write off inventory, you could hold higher inventory levels or certainly you could have much higher revenue than we expect. I'm wondering if you could give us some advice on how to interpret these purchase order commitment.

但令我苦惱的是，如果我們只是試圖回到隱含收入，它將遠高於華爾街大多數人對明年的預測。我們可以用很多種方法來思考這個問題。您可以註銷庫存，也可以保持更高的庫存水平，或者當然可以獲得比我們預期高得多的收入。我想知道您是否能就如何解釋這些採購訂單承諾給我們一些建議。

Yes, Simon, I think obviously, the goal is to make the purchase commitments that we need to support the business, but it is multiyear, right? And we are thinking about this kind of longer term than just the year that's ahead, right?

是的，西蒙，我認為很明顯，我們的目標是做出支持業務所需的購買承諾，但這是多年的，對嗎？我們考慮的不僅是未來的一年，還有更長遠的未來，對嗎？

So that's why you're seeing the numbers kind of not match perfectly to whatever your revenue assumption is for just for 2023, right? So well, again, we'll talk about 2023 and the growth rate when we get to the Analyst Day. And then maybe you can ask this question again, and we'll try to provide some more guidance, but it really is about being multiyear, and some of these products are early stage products where we believe we can put (inaudible) there's a limited risk in terms of E&O and reserves and really you're tying up cash, but that's kind of the -- that's worth it in terms of being able to have the products and have the components in place when we need them.

所以這就是為什麼您看到的數字與您對 2023 年的收入假設不完全匹配，對嗎？那麼，我們再一次在分析師日討論 2023 年及其成長率。然後也許你可以再問一次這個問題，我們會嘗試提供更多指導，但這確實是一個多年的問題，其中一些產品是早期產品，我們相信我們可以投入（聽不清楚）E&O 和儲備金方面的風險有限，而且你實際上是在佔用現金，但這是一種 - 在需要時能夠擁有產品和組件方面，這是值得的。

Your next question comes from the line of Meta Marshall with Morgan Stanley.

您的下一個問題來自摩根士丹利的 Meta Marshall。

Great. Ita and Jayshree, maybe if you could just comment on whether some of the upside that you're seeing from the Cloud Titans this year is due to kind of greater ability to serve them and get them more product than they wanted or if you're actually getting kind of stronger orders than expected? And just kind of on the deferred revenue, being recognized if there are projects that are kind of changing and timing that led to kind of the stronger-than-expected results.

偉大的。 Ita 和 Jayshree，你們能否評論一下，今年 Cloud Titans 取得的進展是否歸因於更強的服務能力以及為他們提供比他們想要的更多的產品，或者你們是否實際上獲得了比預期更強勁的訂單？就遞延收入而言，如果項目和時間發生變化，導致結果強於預期，則確認遞延收入。

Thanks, Meta. So I think it's fair to say, as Anshul has often said that our relationship and partnership with the Cloud Titans continues to be strong and couldn't be better. especially with Microsoft and Meta, who we fully expect to be greater than 10% concentration. I wish we could ship them more. And I think if they were hearing this call, they would be saying, I wish you could ship us more too. So I don't think it is a case of shipping more. I think it's a case of demand from them and a very strategic partnership at the engineering level, at the network design level, at the operational level, at the procurement level and actually Anshul, I'd like you to do -- since you're dealing with this daily, say some more.

謝謝，Meta。因此我認為可以公平地說，正如安舒爾經常說的那樣，我們與 Cloud Titans 的關係和夥伴關係持續保持牢固，而且非常好。尤其是微軟和 Meta，我們完全預期它們的集中度將超過 10%。我希望我們能夠運送更多。我想，如果他們聽到這個電話，他們會說，我希望你也能給我們更多東西。所以我不認為這是一個增加運送量的問題。我認為這是他們的需求，也是工程層面、網路設計層面、營運層面、採購層面的策略夥伴關係。

Meta, the demand from these customers is just strong. Yes, there's some timing of revenue and deferred and so on. That's not what's leading into their strength, the raw demand from these customers continue to be strong. They want to do more build-outs. If you look at how many data centers and regions they want to build out, it's very strong. you look at their DCI ads with 400-gig and 100-kilometer type of distances. Building big regions. That's very, very strong. And they love our execution. As Jayshree mentioned, if they could get them more product, they would happily take it as well. So all in all, a phenomenal outcome compared to where about 2 years ago, but in a very healthy cycle with our cloud customers.

Meta，這些客戶的需求非常強烈。是的，有一些收入時間和遞延等等。這並不是他們實力的根本原因，來自這些客戶的原始需求持續強勁。他們想要進行更多的建設。如果你看看他們想要建造多少個資料中心和區域，你會發現他們的規模非常大。您可以查看他們的 DCI 廣告，其中有 400 千兆和 100 公里距離。建設大區域。這非常非常強大。他們很喜歡我們的執行。正如 Jayshree 所提到的，如果他們能為他們提供更多產品，他們也會很樂意接受。總而言之，與兩年前相比，這是一個非凡的結果，而且我們的雲端客戶處於一個非常健康的周期中。

And Meta, on the deferred, I mean nothing for the year and stage, right? If you look at it year-to-date, the really the deferred is not a contributor at all at this point.

還有 Meta，關於延期，我的意思不是年份和階段，對嗎？如果從年初至今來看，遞延稅項其實根本沒有帶來任何貢獻。

Your next question comes from the line of Ben Bollin with Cleveland Research.

您的下一個問題來自克利夫蘭研究公司的 Ben Bollin。

I was hoping we could talk a little bit about just the broader supply and demand balance. I'm sure we'd all -- you included, would love to know when this ends, but I'm curious how you're thinking about evolving from a supply perspective, when you think it maybe get directionally better when it's really better? And then also curious how it's influencing the duration of visibility you're seeing from customers, that has gotten longer. Is it still getting longer? Is it starting to shrink? What are you seeing there? That's it for me.

我希望我們可以稍微談論一下更廣泛的供需平衡。我確信我們所有人——包括你在內，都想知道這一切何時結束，但我很好奇你是如何從供應的角度考慮這一問題的，你認為它何時可能會朝著更好的方向發展，何時會真的變得更好？然後也很好奇它是如何影響您從客戶那裡看到的可見時間的，它已經變得更長了。它還在變長嗎？它開始萎縮了嗎？你在那看到了什麼？對我來說就是這樣了。

Okay. Ben, so you asked really 2 questions, what's the direction of our visibility? Is it getting longer? Generally, right now, because of our lead times, our visibility is approximately 6 months to a year. And we've now had that kind of visibility, particularly from our cloud providers. So directionally, it's not getting longer, but staying about the same is what I'd tell you.

好的。本，所以你實際上問了兩個問題，我們的可見性的方向是什麼？是不是變得更長了？一般來說，目前，由於我們的交貨時間，我們的可見度大約為 6 個月到一年。現在我們已經有了這種可見性，特別是來自我們的雲端供應商。所以從方向上看，它不會變長，但我會告訴你它保持不變。

And then what are we seeing on supply chain and when is it going to get better, gosh, we -- one of the reasons that even Anshul and myself made such a concerted effort, we got Board approval for very large purchase commitments, multiyear despite a smaller revenue is exactly not to be in the spot we are which is we wanted to get all our components.

那麼我們在供應鏈上看到了什麼，什麼時候才會變得更好，天哪，我們——甚至 Anshul 和我做出如此一致的努力的原因之一是，我們獲得了董事會對非常大的採購承諾的批准，儘管收入較小，但多年的採購承諾恰恰不是我們所希望的，我們希望獲得所有的組件。

But sadly, we have almost all the components except a handful and you can't build a system without the last few components. So we do have still subsidies shortages, as I said before, we expect this to go into 2023. And I think our long lead times will persist in the industry for networking, especially for the next several months and for 2023. So we don't see a lot of relief in sight until we can get all the components being short of a few components still means we can't build the system. So expect us -- it's improving, but expect us to really only see improvement a year from now.

但遺憾的是，除了少數幾個組件之外，我們幾乎擁有所有組件，而如果沒有最後幾個組件，你就無法建立系統。因此，我們仍然面臨補貼短缺的問題，正如我之前所說，我們預計這種情況將持續到 2023 年。 我認為，網路產業的長期交貨期將持續存在，尤其是在接下來的幾個月和 2023 年。因此我們預計情況正在改善，但預計一年後才能真正看到改善。

Your next question comes from the line of Matt Niknam with Deutsche Bank.

您的下一個問題來自德意志銀行的 Matt Niknam。

On the guide for the non-GAAP op income margin. So I think you did 42-ish percent this quarter. I know the guide talks about a nearly 200 basis point step down despite stable gross margins. So I'm just wondering if you can talk about where you see opportunity for incremental investment. And then if I could just sneak in one follow-up on the deferred revenue question. So it looked like deferred dipped about -- deferred revenue dipped about $92 million sequentially. I'm just wondering what's baked into the revenue outlook for 4Q from a deferred perspective?

關於非公認會計準則營業利潤率的指南。所以我認為你本季的完成率是 42% 左右。我知道儘管毛利率穩定，但指南中提到毛利率將下降近 200 個基點。所以我只是想知道您是否可以談談您認為增量投資的機會在哪裡。然後，我可以偷偷地跟進一下遞延收入的問題嗎？因此看起來遞延收入季減約 9,200 萬美元。我只是想知道從遞延角度來看，第四季的營收前景如何？

Yes. So on the deferred, the product deferred decline in Q3 is about $60 million. So there's a piece of it is just services, service contract timing and stuff in there. So really, the thing that's kind of directly linked to the revenue is about $60 million. For Q4 in the guide, we're assuming no deferred, right, and no deferred impact, right? So that's that question. And then the other question was the expenses and operating margin.

是的。因此，就遞延而言，第三季的產品遞延下降約為 6,000 萬美元。因此其中一部分只是服務，服務合約時間等等。所以實際上與收入直接相關的金額約為 6,000 萬美元。對於指南中的第四季度，我們假設沒有延期，對嗎，也沒有延期影響，對嗎？這就是那個問題。另一個問題是費用和營業利潤。

I think look, we were flat pretty much on OpEx in Q3. Some of that is timing. That wasn't the original plan, obviously. So some of that will recover. And some of -- as we head into Q4, we'll see some sales commissions and other things at the back end of the year, tend to be a little higher as well, right? So it's kind of a combination of maybe some timing and then just the normal kind of Q4 dynamics.

我認為，我們第三季的營運支出基本上持平。其中一些是時機。顯然，這不是最初的計劃。因此其中一些將會恢復。隨著我們進入第四季度，我們會看到年底的一些銷售佣金和其他東西也趨於高一些，對嗎？因此，這可能是某種時間安排和正常的 Q4 動態的結合。

Thanks, Matt. Welcome to your first call.

謝謝，馬特。歡迎您第一次來電。

Your next question comes from the line of Fahad Najam with Loop Capital.

您的下一個問題來自 Loop Capital 的 Fahad Najam。

Jayshree, I think at a recent investor conference, you said that you think the industry could grow double-digit revenue, if I recall, you said you were connecting clouds of data or centers of data. So I want to understand your response to a previous question that if the supply chain improved next year, you would do well versus what that double-digit outlook that you had earlier? Is that what you're thinking? Can you help us understand?

Jayshree，我記得在最近的一次投資者會議上，您說過，您認為該行業的收入可以實現兩位數的增長，如果我沒記錯的話，您說過您正在連接數據中心或雲端數據。所以我想了解您對先前問題的回答，如果明年供應鏈改善，那麼您的表現會比之前預測的兩位數更好嗎？你是這麼想的嗎？你能幫助我們理解嗎？

Yes, Fahad. I'll try. I think in terms of demand, we fully expect to grow double digits next year, and I hope for years to come unless there's some real macro issues. Specific to next year, again, we will guide specifically at Analyst Day. But I think if supply chain would be relieved, we would grow double digits. If supply chain continues to be constrained, will still grow double digits. So either way, (inaudible) well next year.

是的，法哈德。我會盡力。我認為就需求而言，我們完全預計明年將實現兩位數成長，而且我希望未來幾年也能如此，除非出現一些真正的宏觀問題。具體到明年，我們將在分析師日再次提供具體指引。但我認為，如果供應鏈能夠緩解，我們的成長將達到兩位數。如果供應鏈繼續受到約束，仍將維持兩位數的成長。所以無論如何，（聽不清楚）明年會很好。

I have one follow-up.

我有一個後續問題。

It's a question of how well.

這是個做得好不好的問題。

What's the risk of your cloud customers having some level of inventory buildup? I understand that there is a significant constraint on the networking equipment, but there has been evidence of inventory mismatches in the server and storage space as some other Cloud Titans. And so what's the (inaudible)?

您的雲端客戶有一定程度的庫存積壓風險嗎？我理解網路設備存在很大的限制，但有證據表明，就像其他一些雲端巨頭一樣，存在伺服器和儲存空間庫存不匹配的情況。那麼（聽不清楚）是什麼？

Very little, Fahad. I think it's important to understand that nobody has been in a position to have any kind of inventory on networking. Anshul, do you want to add to that?

很少，法哈德。我認為，重要的是要明白，沒有人能夠對網路進行任何類型的盤點。 Anshul，你想補充一下嗎？

Yes, Fahad. Our customers will consume everything we can ship. We are not worried about inventory build out any time soon.

是的，法哈德。我們的客戶會消費我們所能運送的所有東西。我們並不擔心庫存很快就會耗盡。

Your next question comes from the line of Ittai Kidron with Oppenheimer.

您的下一個問題來自奧本海默的伊泰·基德倫 (Ittai Kidron)。

I guess a couple of questions. Jayshree, you talked about your activity with the cloud guys and how that cloud guys do want diversity and suppliers. And of course, there's always timing and projects where you kind of run ahead or below where you probably should be just given the timing of projects. Do you get a sense right now on -- if you're punching above or below your weight kind of and I'm calling weight, whatever the cloud guys really think you should be at long term from a share standpoint?

我想有幾個問題。 Jayshree，您談到了您與雲端運算公司開展的活動，以及雲端運算公司如何渴望多樣性和供應商。當然，總是會有時間和項目，考慮到專案的時間安排，你可能會提前完成或低於你應該完成的時間。你現在有沒有感覺到——如果你的實力超出或低於你的能力範圍（我稱之為實力範圍），那麼雲端運算專家們真正認為從份額的角度來看你應該長期處於什麼水平？

That's -- welcome back, Ittai. We haven't chatted in a long time. That's a really good question. You had to ask a tough one. I do think we're punching at our weight in terms of demand, even above our weight. In terms of actually supplying, maybe below our weight. But by the way, I'm only talking about the cloud guys, it's not myself. Anshul, do you want to add to that?

那是——歡迎回來，伊泰。我們很久沒有聊天了。這真是一個好問題。你必須問一個棘手的問題。我確實認為，就需求而言，我們已經達到了自己的能力範圍，甚至超過了自己的能力範圍。就實際供應而言，可能低於我們的承受能力。不過順便說一句，我只是在談論雲人，不是我自己。 Anshul，你想補充一下嗎？

Well I'm not (inaudible) boxing match. But in terms of supply, and overall demand, our customers like to diversify. I think most customers have already set their plans. We're not expecting any big dramatic changes from here on. And we talked about a couple of years now, that customers truly like our product. They like our execution. The partnership is healthy. (inaudible) not worried because of claims from many companies on how they'll be ahead and they will beat us and all of that. In the end, we've done really well. If someone takes a share in one of the roles, we take share in other roles, too. So as a result, because of the expansion in WAN and Edge and routing other use cases, we've done well, and our expectation is we'll actually continue to do going forward as well.

好吧，我不是（聽不清楚）拳擊比賽。但就供應和整體需求而言，我們的客戶喜歡多樣化。我想大多數顧客已經制定好了計畫。我們並不期待從現在開始會發生任何重大的變化。我們談了幾年，現在客戶確實喜歡我們的產品。他們喜歡我們的執行力。雙方的合作關係十分健康。 (聽不清楚)並不擔心，因為許多公司都聲稱他們將如何領先、如何打敗我們等等。最終，我們做得非常好。如果有人承擔了其中一個角色，我們也會承擔其他角色。因此，由於 WAN 和 Edge 以及路由其他用例的擴展，我們做得很好，而且我們的期望是我們實際上也會繼續這樣做。

Got it. Okay. And maybe as a follow-up, Jayshree, I mean you did talk about the weakness in Europe, and it's obvious that there should be weakness over there. But your business over there is down on a year-over-year basis. And I guess I'm kind of wondering -- the traction and the share gains that you're having in the U.S., one would think that even in the current environment, if you're able to get share gains in Europe as well, you'd still be able to get growth out of there, maybe not 30%, 40%, but perhaps a 10%, 15%. So help me understand what -- maybe you could go later deeper into what's going on in Europe? And do you think that the current environment, maybe going back to your previous question, Paul's question that in this environment, perhaps customers are just less likely to consider a change to just stick with what they've got and maybe that's a hindering element?

知道了。好的。也許作為後續問題，Jayshree，我的意思是您確實談到了歐洲的弱點，很明顯那裡應該存在弱點。但你們那裡的生意比去年有所下滑。我有點好奇，考慮到你們在美國的進展和份額增長，人們會認為，即使在當前環境下，如果你能夠在歐洲獲得份額增長，那麼你仍然可以從那裡獲得增長，可能不是 30%、40%，但可能是 10%、15%。所以請幫我理解——也許您稍後可以更深入地了解歐洲正在發生的事情？您是否認為，回到您之前的問題，保羅的問題，在當前的環境下，客戶可能不太可能考慮改變，而只是堅持他們所擁有的，也許這是一個阻礙因素？

So -- no, I don't -- I was answering the question, Ittai, more on, is there a recession in a broad sense, if at all, we are generally seeing very strong demand worldwide. If at all, we are seeing some softness in weakness, it would be in parts of Europe because of all the things through. Specific to Arista, I see no reason we shouldn't be growing everywhere, including Europe.

所以 - 不，我不知道 - 我在回答這個問題，伊泰，更重要的是，是否存在廣義的經濟衰退，如果有的話，我們普遍看到全球需求非常強勁。如果說我們看到了疲軟中的一些跡象，那也應該出現在歐洲部分地區，因為這一切都是出於自身的原因。具體到 Arista，我認為我們沒有理由不在包括歐洲在內的所有地方實現發展。

But our rate of growth in Europe may be slower for exactly the reasons you mentioned that their overall economy, if you look at the GDP and if you look at the top 3 countries, Germany, U.K. and France, none of them are really substantially investing. So I think because we have small numbers, we can do fine. We should be able to still grow double digits, but that is the only sign of recession we have so far seen.

但是，我們歐洲的成長率可能較低，原因正如您所提到的，如果你看他們的整體經濟，如果你看 GDP，如果你看排名前三的國家，德國、英國和法國，你會發現他們都沒有真正進行大規模投資。所以我認為，因為我們的人數很少，所以我們可以做得很好。我們應該還能保持兩位數的成長，但這是我們迄今為止所看到的唯一衰退跡象。

Just to correct you, we did -- we are growing year-over-year in Europe as well.

需要糾正的是，我們在歐洲的業務也逐年成長。

Yes, the (inaudible) numbers, Ittai, I have a lot of cloud influence in them. So it depends when you strip that out, the kind of in-region business is growing.

是的，這些（聽不清楚）數字，Ittai，它們受到了雲的很大影響。因此，這取決於當你去掉這一點時，區域內業務是否正在成長。

Okay. Well, maybe on that point, did the U.S. grow? Can you tell us how much the U.S. grew without the titans?

好的。那麼，從這一點來看，美國確實發展了嗎？您能告訴我們，在沒有巨頭的情況下，美國發展到了什麼程度？

Off the top of my head, no. Yes.

我首先想到的答案是，沒有。是的。

We do by year-end.

我們將在年底前完成。

Yes. We'll show you those done at year-end for on the verticals of the business.

是的。我們將向您展示年末在業務垂直領域完成的工作。

Your next question comes from the line of David Vogt with UBS.

您的下一個問題來自瑞銀的 David Vogt。

I just want to go back to the margin performance. If I go back to 2019, I think your titan mix was relatively similar to where we are today, maybe a little bit less but your gross margins were almost 300 -- on your product gross margins were almost 300 basis points higher. So can we kind of disaggregate that delta is how much of that is from expedited freight, supply chain versus maybe somewhat structurally lower margins with some of the new titans and/or Microsoft and Meta. And then on OpEx, just a quick question. Growth has been 15% to 20% sort of on a year-over-year basis. Is that kind of how we should think about the business as we progress over a couple of year cycle?

我只是想回到利潤表現。如果我回顧 2019 年，我認為您的主要產品組合與我們現在的狀況相對相似，可能略少一些，但您的毛利率幾乎提高了 300 個基點。那麼，我們能否將這個差異分解成多少來自加急貨運、供應鏈，以及一些新巨頭和/或微軟和 Meta 可能存在的結構性較低利潤率。然後關於 OpEx，我只是一個簡單的問題。與去年同期相比，成長率約為 15% 至 20%。在幾年的周期內不斷發展，我們是否應該這樣思考業務？

Yes, I think on the gross margin piece, I mean, there is more cloud mix in the business, I think that we've seen than we've ever seen.

是的，我認為就毛利率而言，我的意思是，業務中的雲端組合比以往更多。

This we've ever seen. This is the highest mix we've had.

這是我們從未見過的。這是我們迄今為止得到的最高混合比例。

But we also have -- remember, don't forget the expediting fees and stuff we've talked about the 200 to 300 basis points. I mean that is still there. I think that will be there for a while. Certainly in our Q4 guide. So I think it's a combination of those 2, right?

但我們還有——記住，不要忘記我們討論過的加急費和 200 到 300 個基點的東西。我的意思是它仍然存在。我認為它會存在一段時間。當然在我們的第四季指南中。所以我認為這是兩者的結合，對嗎？

When you think back in that time period, you could run the business for costs, right? And we were optimizing costs in every way. Today, we're kind of hamstrung because of supply -- so it's inefficient right now, to be honest, right, particularly with these decommits.

當您回想起那段時期時，您可以承擔成本來經營企業，對嗎？我們正在盡一切努力優化成本。今天，我們因為供應而受到了一些束縛——所以說實話，現在效率很低，特別是在這些取消承諾的情況下。

So we need to get out of that, and then we can kind of start to drive for some improvements on the gross margin side as well. I think on the OpEx side, if you look back historically, we've probably been in the 20%, 22% growth type range on OpEx except in times of disruption, right? So I mean, that's probably not a bad way to think about it.

所以我們需要擺脫這種狀況，然後我們才能開始推動毛利率的一些改善。我認為在營運支出方面，如果回顧歷史，除了混亂時期，我們的營運支出成長可能都在 20% 到 22% 之間，對嗎？所以我的意思是，這也許不是一個不好的思考方式。

Got it. And maybe just a quick follow-up. So it sounds like your structural margins on the titans are relatively unchanged over the last, call it, 2 to 3 years outside of the expedite fee and supply chain. Is that a fair characterization on the product side?

知道了。或許只是一個快速的跟進。因此，聽起來，除了加急費和供應鏈之外，在過去兩三年裡，巨頭的結構性利潤率相對沒有變化。從產品方面來看，這是一個公平的描述嗎？

I think it depends on the product mix to some degree, right? I mean, you've got -- there's more -- you'd have to do more disaggregation to really get to what's happening there, right? But there's -- the product mix is a part of that as well.

我認為這在某種程度上取決於產品組合，對嗎？我的意思是，你必須——還有更多——你必須做更多的分解才能真正了解那裡發生的事情，對嗎？但產品組合也是其中的一部分。

Your next question comes from the line of Amit Daryanani with Evercore.

您的下一個問題來自 Evercore 的 Amit Daryanani。

Congrats on the good quarter. I guess the question is we on the Cloud Titan side, and on a broader level of vertical, we're seeing an increased focus on profitability from the cloud company. And I'm just wondering, as they start to focus perhaps more of the resources on their own core competencies, could you see a lot of these cloud companies started to shift from building their own solution on the networking side, which is starting to buy them more often nothing understand, a, from your existing customer base, are you seeing an expansion of engagement with them beyond what you've traditionally done? And then, b, more importantly, are you seeing newer customers come to you that want to start buying for other than building it organically themselves?

恭喜本季取得良好業績。我想問題在於，從 Cloud Titan 方面以及更廣泛的垂直層面來看，我們看到雲端運算公司越來越重視獲利能力。我只是想知道，當他們開始將更多的資源集中在自己的核心競爭力上時，您是否會看到許多雲端運算公司開始從在網路方面建立自己的解決方案轉向更頻繁地購買它們，從您現有的客戶群來看，您是否看到與他們的合作超出了您傳統的範圍？然後，b，更重要的是，您是否看到有新客戶來找您，他們想要開始購買而不是自己有機建造？

Okay. I'll take it in. Thank you. I take it in 2 parts. The Cloud Titans have always had a combination of build and buy. So I don't think that's changing. They continue to look at whether (inaudible) or FBOSS, working closely with us -- but in some layers, they are absolutely sourcing their own products and technology. At the same time, I think the cloud titans have to run very mission-critical networks, and they recognize the value in the partnership at an engineering level to not build themselves, but really co-develop with us. So these, I would say, are not built or buy. They really codeveloped partnerships where they get the best of book -- and despite all of their focus on costs, believe me, they're getting their best of both because -- they're getting great cost for us without making the direct investment themselves, and it really is a unique partnership. Anshul, you want to say some more to that?

好的。我會接受的。我把它分為兩個部分。雲端泰坦 (Cloud Titans) 一直以來都採用建構和購買相結合的方式。所以我不認為這會改變。他們繼續關注（聽不清楚）或 FBOSS 是否與我們密切合作 - 但在某些層面上，他們絕對是在購買自己的產品和技術。同時，我認為雲端運算巨頭必須運行非常關鍵的任務網絡，並且他們認識到在工程層面上合作的價值，不是自己建設，而是真正與我們共同開發。所以我想說，這些不是建造的或購買的。他們確實共同建立了合作夥伴關係，從中獲得了最好的帳面收益——儘管他們都關注成本，但相信我，他們從中獲得了最大的收益，因為他們在沒有直接投資的情況下為我們節省了巨大的成本，這確實是一種獨特的合作夥伴關係。安舒爾，你還想再說些什麼嗎？

Sure. Amit, in general, these cloud companies keep exploring every possible way to go faster. There's a misunderstanding (inaudible). But it's on the Wall Street side of things, sometimes people have said, hey, people want to find something that's cheaper because they can save money. The reality, they have to look at their total overall business impact. And if they can go faster and get a competitive advantage, that's a huge benefit to them.

當然。阿米特，總的來說，這些雲端運算公司一直在探索一切可能的方法來加快速度。這其中有誤會（聽不清楚）。但從華爾街的角度來看，有時人們會說，嘿，人們想找到更便宜的東西，因為他們可以省錢。事實上，他們必須考慮其對整體業務的影響。如果他們能夠加快速度並獲得競爭優勢，那麼這對他們來說是一個巨大的優勢。

So most of these companies do not build their own products or stack just a bit cheaper. They build it because there's some secret sauce. There's some IP, there's some integration -- that's what you're seeing with the co-development we do with Meta and Microsoft, whether it's on the (inaudible) side or some of the hardware we developed as well.

因此，大多數公司並不生產自己的產品，或只是稍微便宜一點。他們建造它是因為有某種秘密武器。有一些 IP，有一些整合——這就是您看到的我們與 Meta 和微軟的共同開發，無論是在（聽不清楚）方面還是在我們開發的一些硬體方面。

The other titans explore the same use cases are similar themes with us on an ongoing basis. So these are not new discussions to us, and I think we'll continue to execute well. Clearly, the majority of the business continues to come from our top 2 customers. We are happy with that. The others are engaged as we talked to us on previously, but those are long running projects, but then I'm going to get to a decision point and actually impact, you have to wait several years and we'll get there. But there's nothing that's changed in the industry. People are in generally happy with the way status quo has been maintained with a little bit of let's explore other options in working with companies like us where possible.

其他巨頭也在持續探索相同的用例和類似的主題。所以這些對我們來說並不是新的討論，我認為我們會繼續執行得很好。顯然，大部分的業務仍來自我們前兩大客戶。我們對此感到高興。正如我們之前談到的，其他人也參與其中，但這些都是長期項目，但我將到達一個決策點並產生實際影響，你必須等待幾年才能到達那裡。但該行業並沒有任何改變。人們總體上對維持現狀的方式感到滿意，同時希望在可能的情況下探索與我們這樣的公司合作的其他選擇。

Your next question comes from the line of Aaron Rakers with Wells Fargo.

您的下一個問題來自富國銀行的 Aaron Rakers。

Congratulations as well on the quarter. I wanted to ask a little bit more of a technical question. As we think about 400 gig and you think about the traction you're seeing with your cloud titans as well as some of the specialty cloud guys, I'm just curious if you could level set us on where you think we're at in terms of the 400-gig cycle. And on that topic as well, any updated thoughts on this idea of the AI Fabric networks, representing an incremental adjacent growth driver for your business at the Cloud Titans?

我也祝賀本季取得的成績。我想問一些比較技術性的問題。當我們考慮 400Gig，並且您考慮到您在雲端巨頭以及一些專業雲端公司中看到的吸引力時，我只是好奇您是否可以就 400Gig 週期為我們設定一個水平。關於這個主題，您對 AI Fabric 網路的想法有什麼最新的看法嗎？

Unquestionably, I think while majority of the enterprise is still on 10 and 40, we are seeing more and more combinations of 100 and 400 gig, not only in the Cloud Titans, but also in the rest of the customer base. Just to level set on the numbers, you may recall that we had 70 or so customers in 2020. We doubled to 300 into 2021. And if I had to guess, I would say we double again in 2022 in terms of 400-gig customers.

毫無疑問，我認為雖然大多數企業仍採用 10 和 40 GB，但我們看到越來越多的 100 和 400 GB 的組合，不僅在 Cloud Titans 中，而且在其他客戶群中也是如此。只是為了對數字進行平衡，您可能還記得，我們​​在 2020 年有 70 個左右的客戶。 到 2021 年，我們的數量翻了一番，達到 300 個。

But the important thing to remember here is that they are not just 400. There really are a permutation and combination of multiple speeds, multiple use cases. And together, they are an important contributor, but it's never an isolation 100. Some of them are uplinks, some of them are native connections. Some of them, as Anshul alluded, are DCI routing solutions. So our market share in this combination of 100, 400 and in some cases, 200 is #1 for good reason because they really have to work together with the right software and right management.

但這裡要記住的重要一點是，它們不僅僅是 400 種。總的來說，它們都是重要的貢獻者，但絕不會是孤立的 100。正如 Anshul 所提到的，其中一些是 DCI 路由解決方案。因此，我們在 100、400，甚至 200 家公司中的市佔率位居第一，這是有原因的，因為他們確實必須透過正確的軟體和正確的管理進行合作。

The AI spine cluster is emerging as a new use case. It's still early days, and we've talked about it some. We'll talk about it more at the Analyst Day, but more use case emergence for applications that really push the speed and latency and performance and predictable bandwidth of 400 gig is going to add additional fuel to our 400-gig demand.

人工智慧脊柱集群正在成為一個新的用例。現在還為時過早，我們已經討論了一些。我們將在分析師日上對此進行更多討論，但真正推動 400G 的速度、延遲、性能和可預測頻寬的應用程式用例的出現，將為我們對 400G 的需求增添額外的動力。

Your next question comes from the line of Jim Suva with Citigroup.

您的下一個問題來自花旗集團的吉姆蘇瓦。

Jayshree, Ita, I noticed in your press release that you made a comment to new market expansion. Could you elaborate a little bit like what is that? Or is that going to be a focus for the event on Thursday? Because I assume it's not just continual strength of where you're seeing or maybe it is. But if you can give any expansion on that? Because I know in the past, currently, you've seen a lot of expansion in the campus growth, but I saw the new market expansion literally, word for word, and I got to think there was some purpose behind that.

Jayshree，Ita，我注意到你們的新聞稿中對新市場擴張發表了評論。能詳細說明一下那是什麼嗎？或者這會成為週四活動的焦點嗎？因為我認為這不僅僅是您所看到的持續的力量，或者可能是。但您能對此做出任何擴展嗎？因為我知道在過去，目前，你已經看到校園成長了很多，但我親眼目睹了新市場的擴張，一字不差，我認為這背後是有目的的。

Maybe you read more into my quote than I meant. At the end of the day, Arista is viewed as a data center company. But if you look at the diversified portfolio, we're trying to say we're entering many more new markets like routing, like campus and even subsets of the market like securing our solutions better with encryption, with better visibility and observability.

也許您對我這句話的理解比我原本的意思還要深刻。從根本上講，Arista 被視為一家資料中心公司。但如果你看一下多元化投資組合，我們試圖說我們正在進入更多新市場，例如路由，例如校園，甚至市場子集，例如透過加密更好地保護我們的解決方案，具有更好的可見性和可觀察性。

And indeed, we'll talk more about new market expansion in a couple of days. So undoubtedly, we're moving from becoming a pure data center company to many more markets that center the data in different locations.

事實上，我們將在幾天後進一步討論新市場擴張的問題。因此，毫無疑問，我們正在從純粹的資料中心公司轉向更多將資料集中在不同位置的市場。

Your next question comes from the line of Samik Chatterjee with JPMorgan.

您的下一個問題來自摩根大通的 Samik Chatterjee。

I guess it's a similar question to the last one, but Jayshree, I just wanted to understand, as we look at your growth with cloud customers, how should we think about sort of that growth relative to sort of how much of that growth is coming from the additional use cases you're addressing beyond traditional switching. So for example, like DCI or routing, how much of that is probably contributing to the strong growth you're seeing with cloud customers?

我想這個問題和上一個類似，但是 Jayshree，我只是想了解，當我們看到你們在雲端客戶方面的成長時，我們應該如何看待這種成長，以及這種成長中有多少來自於你們在傳統交換之外解決的其他用例。舉例來說，像 DCI 或路由這樣的技術，其中有多少可能對雲端客戶的強勁成長有所貢獻？

As we think about sort of the next couple of years, how should we think about the -- given the visibility you have in terms of designs, how is that sort of momentum progressing from here on? And just a quick follow-up there. So outside of Facebook and Meta as we think about the engagement with other cloud companies, is that on some of the new use cases? Or is that traditional switching in leaf and spine?

當我們思考未來幾年時，我們應該如何思考——考慮到您在設計方面的可見性，這種勢頭從現在開始將如何發展？接下來是簡短的跟進。那麼，除了 Facebook 和 Meta 之外，當我們考慮與其他雲端運算公司的合作時，是否存在一些新的用例？或者這是傳統的葉子和主幹交換嗎？

First, I think it's super important to understand that even though it's leaf and spine, Samik, these data centers, whether they be building them at a regional level or a mega scale level, the leaf and spine is really going to expand and explode as the Cloud Titans expand their presence. So that growth -- that organic growth that we began our journey with them will continue. And we will depend on that growth. In addition to that, as Anshul said, we will have new use cases on the WAN, the regional, the DCI and especially AI spine, particularly with the cloud titans.

首先，我認為非常重要的一點是要了解，儘管這些資料中心是葉脊式結構，但無論它們是在區域層面還是超大規模層面進行建設，隨著雲端泰坦的擴張，葉脊式結構都將真正擴張和爆炸性增長。因此，我們與他們一起開始的這種成長——有機成長將會持續下去。我們將依賴這種成長。除此之外，正如 Anshul 所說，我們將在 WAN、區域、DCI 以及特別是 AI 主幹上擁有新的用例，特別是與雲端運算巨頭合作。

It may expand to those new use cases and it may also expand to other specialty cloud providers. But I would say we would be looking for sources of growth in both areas, expansion of the existing data centers into new locations and more scale as well as new use cases. (inaudible).

它可能擴展到這些新的用例，也可能擴展到其他專業雲端提供者。但我想說，我們會在兩個領域尋找成長來源，將現有資料中心擴展到新的地點、擴大規模以及尋找新的用例。 （聽不清楚）。

Your next question comes from the line of George Notter with Jefferies.

您的下一個問題來自傑富瑞（Jefferies）的喬治·諾特（George Notter）。

I guess I wanted to go back to the question of the Cloud Titan customers potentially building inventory. And I guess, on an earlier question, Anshul, you were pretty dismissive of that idea. I guess I'm just wondering what additional detail you might kind of have that supports that idea. And if I look at your business, you've been growing product sales 55%, 67% year-on-year, the last couple of quarters, it's pretty outstanding growth. And given the mix shift in the company, I would guess that the cloud titan customers have been growing 70% or 80% year-on-year, right? So I know you guys are building your own inventories. Many companies are building their own inventory in the supply chain environment. So I do think it is an important question and I guess I'm wondering exactly how you know customers aren't building inventory in your stuff.

我想回到 Cloud Titan 客戶可能建立庫存的問題。我想，在之前的問題中，安舒爾，你對這個想法相當不以為然。我想我只是想知道您可能還有什麼其他細節可以支持這個想法。如果我看一下您的業務，您會發現過去幾季您的產品銷售額年增了 55% 到 67%，這是相當出色的成長。考慮到公司的結構變化，我猜測雲端運算巨頭的客戶數量同比增長率應該在 70％ 或 80％ 左右，對嗎？所以我知道你們正在建立自己的庫存。許多公司在供應鏈環境中建立自己的庫存。所以我確實認為這是一個重要的問題，我猜我好奇你究竟如何知道客戶沒有在你的產品中建立庫存。

George, that is a good question. I get asked that internally daily because we have to worry about what's going on in the other side, our customers buffering. I would say the best sign is the number of phone calls I get or Jayshree gets or others in the company get on when shipping? So these customers are still roughly hand-to-mouth. There are a few places where they can still calibrate for the computer to come up and so on. But in most cases, customers are desperate, the deployment teams are waiting for the gear to show up, and they light it up as quickly as possible.

喬治，這個問題問得很好。我每天都會在內部被問到這個問題，因為我們必須擔心另一邊發生的事情，我們的客戶正在緩衝。我想說最好的跡像是我接到的電話數量，或者 Jayshree 接到的電話數量，或者公司其他人在運輸過程中接到的電話數量？因此這些客戶的生活水準仍大致維持在勉強糊口的水準。有幾個地方他們仍然可以校準計算機以便啟動等等。但在大多數情況下，客戶都非常著急，部署團隊正在等待設備出現，然後他們會盡快點亮它。

You have to realize where we came from but since the start of COVID, the world has been constrained. And that constraint over such a long period, generally means people can't execute the project time lines, and they're still short. At some point, this will recover but nowhere close to that in today's time. So I think it will take a long time, maybe I'll say if supply recovers by the end of '23, I think that's when customers will feel comfortable, and they will eventually have an opportunity to buffer up but not yet, not there today.

你必須認識到我們來自哪裡，但自從新冠疫情爆發以來，世界就受到了限制。而在如此長的時間內，這種限制通常意味著人們無法執行專案時間表，而且時間仍然很短。在某個時候，這種情況會恢復，但遠不及今天。所以我認為這將需要很長時間，也許我會說，如果供應在 23 年底恢復，我認為那時客戶就會感到舒服，他們最終將有機會緩衝，但現在還不是，不是今天。

Your next question comes from the line of Sami Badri with Credit Suisse.

您的下一個問題來自瑞士信貸的薩米·巴德里。

I wanted to go to gross margins. I think Ita, you've made 2 references on this call regarding just the trajectory of margins. I think you said that we're probably not going to see an improvement in gross margins for at least a year from now. And then the other comment you made regarding the 200 to 300 basis points, I think you said it's going to be there a while. So does that imply that we should be modeling gross margins at least through maybe the first half of 2023 a little bit more in line to last couple of quarters? That's the first question. Second question is if you were to give us an idea on how many ports or how many switches with 400-gig ports shift to 2022, could you give us kind of like a percentage of total shipments and maybe what that would look like in 2023?

我想要了解毛利率。我認為 Ita，您在這次電話會議中提到了兩次有關利潤率走勢的問題。我想您說過，至少一年內我們不會看到毛利率的增加。然後您關於 200 到 300 個基點的另一個評論，我想您說它會在那裡持續一段時間。那麼，這是否意味著我們應該至少將 2023 年上半年的毛利率模型與過去幾季的毛利率模型稍微一致？這是第一個問題。第二個問題是，如果您能告訴我們有多少連接埠或有多少具有 400 千兆連接埠的交換器將轉移到 2022 年，您能否給我們一個總出貨量的百分比，以及 2023 年的情況如何？

Yes. Just on the gross margin. I think given where we are today, I think it's not a bad idea to model that gross margin as being kind of constrained until we get out from under the constraint, honestly. I think that's a very real kind of cost that we're carrying, and it's not clear yet exactly when that starts to improve.

是的。只談毛利率。我認為，考慮到我們目前的狀況，將毛利率建模為受到某種限制直到我們擺脫這種限制並不是一個壞主意。我認為這是我們承擔的一種非常現實的成本，目前還不清楚這種情況何時會開始改善。

So yes, I think it's not a bad idea to hold it there until we're able to kind of show real demonstrable improvements and more predictability, I guess, on these decommitted parts.

所以是的，我認為將其保留在那裡直到我們能夠在這些已取消承諾的部分上展示真正的可證實的改進和更多的可預測性並不是一個壞主意。

Yes. And to answer your question, we -- I don't have exact numbers on 400 gig, but if I had to guess even though we're gaining customers, most of them are as uplink. So the number of ports is still small. I would say our penetration is well under 10%, maybe even 5%. That's just a good guess.

是的。回答你的問題，我們沒有 400G 的確切數字，但如果我必須猜測，儘管我們正在獲得客戶，但大多數客戶都是上行鏈路。所以連接埠數量仍然很少。我想說我們的滲透率遠低於 10%，甚至可能是 5%。這只是一個很好的猜測。

And then thank you for answering gross margin and that piece. But when we go into 2023, are you seeing almost like a sharp increase in that from sub-10% to obviously much higher than that or not quite yet?

然後感謝您回答毛利率和那部分問題。但是，當我們進入 2023 年時，您是否會看到這一數字幾乎從低於 10% 急劇上升到明顯高於這一數字，還是還沒有？

No, no. If we go into '23, the way to think of this is people are still migrating from 10 gig and 10 and 40 to 100 will still be the largest migration. As a result of that migration, you will see more deployment of 400 gig. So 400 gig will still be small. Maybe it will go from 5 to 10.

不，不。如果我們進入'23 年，那麼思考的方式是人們仍然從 10G 遷移，而 10G 和 40G 到 100G 仍將是最大的遷移。遷移的結果是，您將看到更多 400G 的部署。因此 400Gb 仍然很小。或許會從 5 增加到 10。

Your next question comes from the line of James Fish with Piper Sandler.

您的下一個問題來自派珀·桑德勒 (Piper Sandler) 的詹姆斯·菲什 (James Fish)。

Nice quarter (inaudible). Well, it's a metric, Ita, I know you don't really want to emphasize as much as others do in your space. You still have visibility here and confidence in that visibility. Maybe asking in a different way than others. As supply chain here starts to normalize, how are you guys thinking about how long that backlog actually takes to turn back to a more normal level? Is it 4, 6, kind of 8 quarters, that's currently in your thought process for next year. Are you seeing any change in cancellation rates? And then just lastly, what's going on with that services deferred revenue as in aggregate, we were down about $92 million and product was only -- was down $63 million. So trying to understand why services is being impacted here.

不錯的季度（聽不清楚）。嗯，這是一個衡量標準，Ita，我知道你並不想像你的空間裡的其他人那樣強調那麼多。您在這裡仍然具有可見性，並且對該可見性充滿信心。也許詢問的方式與其他人不同。隨著這裡的供應鏈開始正常化，你們認為積壓訂單實際上需要多長時間才能恢復到更正常的水平？您目前正在考慮明年的具體時間是 4、6 還是 8 個季度？您發現取消率有任何變化嗎？最後，服務遞延收入的情況如何？因此，試著了解為什麼服務會受到影響。

Yes. We start with the services piece. I mean it's just all about the timing of the of the service agreements, right? If you think about what deferred venue is, if I sign a contract on day 1, it's a 2-year, 3-year contract, you're going to have the maximum amount of deferred revenue you can have. And then when it comes towards the renewal of that contract, you're going to have the least amount of deferred revenue that you could have from a services perspective, right?

是的。我們從服務部分開始。我的意思是這完全取決於服務協議的時間安排，對嗎？如果你考慮一下延期場地是什麼，如果我在第一天簽了一份合同，這是一份兩年、三年的合同，你將獲得最高數額的延期收入。那麼，當涉及續約時，從服務角度來看，您將獲得最少的遞延收入，對嗎？

So it's purely on timing on the services side, right? The lumpier thing is obviously on the product, but the services is truly just the mechanics of how the services contracts flow, right? And then I guess on the cancellations, et cetera, I mean, we have not seen any change in the business. I think we're to Anshul's point, I mean, we're still seeing customers very intensely focused on getting products at this point. I'm not going to try to age out the backlog, it's kind of a -- we're not quite there ready to do that just given some of the uncertainties on supply and so on.

所以這純粹是服務方面的時機問題，對嗎？顯然，產品上的問題比較複雜，但服務其實只是服務合約流動的機制，對嗎？然後我想關於取消等等，我的意思是，我們沒有看到業務有任何變化。我認為我們同意安舒爾的觀點，我的意思是，我們仍然看到客戶此時非常專注於獲得產品。我不會試圖消除積壓問題，這只是——考慮到供應等方面的一些不確定性，我們還沒有準備好這麼做。

And I think as lead times improve, we expect customer visibility to shrink. But right now, we're working hard on that lead time improvement. So we're a year away from that. Operator, we have time for one more question.

我認為，隨著交貨時間的縮短，我們預計客戶可見度將會縮小。但現在，我們正在努力縮短交貨時間。距離這目標還有一年的時間。接線員，我們還有時間再回答一個問題。

Your last question today comes from the line of Tom Blakey with KeyBanc.

今天的最後一個問題來自 KeyBanc 的 Tom Blakey。

Thanks for squeezing me in, and Happy Halloween, everybody. Looking at your -- curious about the cadence of the Cloud Titan revenue. It seems like a big uptick here in the second half, if I'm characterizing that correctly from kind of the mid- to high 30s to get to that 45% for the year, you need to imply kind of over half. And if I do that simple arithmetic, it implies that maybe the cumulative revenue of service providers, specialty service providers, financial enterprise will be kind of flattening out in the second half. So just maybe comment on is my characterization correct. And there as a follow-up, are we relying a little bit more on one of those particular Cloud Titans more than the other? And about a correlation to actual CapEx spend comment would be helpful, too.

謝謝你們擠出時間，祝大家萬聖節快樂。看看你的——好奇 Cloud Titan 的收入節奏。下半年似乎會出現一個很大的上漲，如果我沒有記錯的話，全年增長率從 35% 左右到 45%，那麼就意味著超過了一半。如果我做這個簡單的算術，它意味著服務提供者、專業服務提供者、金融企業的累積收入在下半年可能會趨於平穩。所以也許可以評論一下我的描述是否正確。接下來的問題是，我們是否會更依賴其中一個特定的 Cloud Titans 而不是另一個？關於與實際資本支出相關性的評論也會有所幫助。

Yes. I mean I think as you look at the year, I mean, obviously, we've been ramping revenues and ramping shipments. So we have been ramping kind of with cloud as well, right? And cloud has grown faster. It started off from a lower base, obviously. So it did need to recover, if you like, it was at 30%, which is pretty much the lowest we've seen it last year, and we -- so it's definitely recovered from there.

是的。我的意思是，當你回顧這一年時，顯然我們的收入和出貨量都在增加。所以我們也一直在加大雲端運算的投入，對嗎？雲端運算的成長速度更快。顯然，它是從較低的基礎開始的。所以它確實需要恢復，如果你願意的話，它現在的水平是 30%，這幾乎是我們去年看到的最低水平，所以它肯定是從那裡恢復的。

I think on the rest of the business, the demand is there. The demand has certainly exceeded our expectations when we came into the year. But given the shipment constraints, et cetera, it's kind of a bit of -- we've been trying to stick to the FIFO first in, first out as much as we can. And -- so that has been more constrained. I think we'll expect to see that kind of start to improve, hopefully, here as we head into next year.

我認為對於其餘業務而言，需求還是存在的。進入今年以來，需求確實超出了我們的預期。但考慮到裝運限制等因素，我們一直試圖盡可能堅持先進先出的原則。並且 —— 因此這受到了更多限制。我想，我們希望看到這種情況在進入明年時開始改善。

Meta versus Microsoft maybe into the second half of the year?

Meta 與微軟的競爭可能會在今年下半年展開？

Yes, that to year-end for that, I think.

是的，我認為到年底就可以實現。

This concludes the Arista Networks Third Quarter 2022 Earnings Call. We have posted a presentation, which provides additional information on our results, which you can access on the Investors section of our website. Thank you for joining us today, and thank you for your interest in Arista.

Arista Networks 2022 年第三季財報電話會議到此結束。我們發布了一份演示文稿，其中提供了有關我們業績的更多信息，您可以在我們網站的「投資者」部分訪問。感謝您今天加入我們，也感謝您對 Arista 的關注。

Thank you for joining, ladies and gentlemen. This concludes today's call. You may now disconnect.

謝謝各位的參與，女士們，先生們。今天的電話會議到此結束。您現在可以斷開連線。