Arista Networks Inc (ANET) 2023 Q2 法說會逐字稿

Welcome to the Second Quarter 2023 Arista Networks Financial Results Earnings Conference Call. (Operator Instructions) 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.

歡迎參加 Arista Networks 2023 年第二季度財務業績電話會議。 （操作員說明）謹此提醒，本次會議正在錄製中，並可在本次電話會議後在 Arista 網站的投資者關係部分重播。

Ms. Liz Stine, Arista's Director of Investor Relations, you may begin.

Arista 投資者關係總監 Liz Stine 女士，您可以開始了。

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 second quarter ending June 30, 2023. If you would like a copy of the release, you can access it online at our website.

謝謝你，接線員。大家下午好，感謝您加入我們。參加今天電話會議的有 Arista Networks 總裁兼首席執行官 Jayshree Ullal；以及 Arista 首席財務官 Ita Brennan。今天下午，Arista Networks 發布了一份新聞稿，公佈了截至 2023 年 6 月 30 日的第二財季業績。如果您需要該新聞稿的副本，可以在我們的網站上在線訪問。

During the course of this conference call, Arista Networks management will make forward-looking statements, including those relating to our financial outlook for the third 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, including AI, customer demand trends, supply chain constraints, component costs, manufacturing output, inventory management and inflationary pressures on our business, lead times, product innovation, working capital optimization 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 10-Q and Form 10-K, 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.

在本次電話會議期間，Arista Networks 管理層將做出前瞻性聲明，包括與我們 2023 財年第三季度的財務前景、2023 年及以後的長期財務前景、我們的總目標市場和應對這些市場機遇的戰略，包括人工智能、客戶需求趨勢、供應鏈限制、零部件成本、製造產量、庫存管理和我們業務的通脹壓力、交貨時間、產品創新、營運資本優化和收購的好處，這些是受限於我們在向 SEC 提交的文件中詳細討論的風險和不確定性，特別是在我們最新的表格 10-Q 和表格 10-K 中，這可能導致實際結果與這些聲明中預期的結果存在重大差異。這些前瞻性陳述從今天起適用，您不應依賴它們來代表我們未來的觀點。我們不承擔在本次電話會議後更新這些聲明的義務。

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.

另請注意，我們在本次電話會議中使用的某些財務指標是在非公認會計原則的基礎上表示的，並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公認會計原則財務指標與公認會計原則財務指標的調節表。

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

這樣，我會將電話轉給 Jayshree。

Thank you, Liz, and happy last day in July, everyone. We delivered revenues of $1.46 billion for the quarter, with a non-GAAP earnings per share of $1.58. Services and software support renewals contributed approximately 15.2% of revenue. Our non-GAAP gross margins of 61.3% was influenced by improving supply chain overheads and higher enterprise contribution. We do expect gross margins to consistently improve every quarter this year and stabilize in 2024. International contribution registered at 21%, with the Americas at 79%.

謝謝你，莉茲，祝大家七月最後一天快樂。我們本季度實現收入 14.6 億美元，非 GAAP 每股收益為 1.58 美元。服務和軟件支持續訂貢獻了約 15.2% 的收入。我們的非 GAAP 毛利率為 61.3%，這是受到供應鏈管理費用改善和企業貢獻提高的影響。我們確實預計今年每個季度的毛利率將持續提高，並在 2024 年穩定下來。國際貢獻率為 21%，美洲為 79%。

As we surpassed 75 million cumulative cloud networking ports, we are experiencing 3 refresh cycles with our customers, 100 gigabit migration in the enterprises, 200 and 400 gigabit migration in the cloud and 400 going to 800 gigabits for AI workloads.

隨著我們累積的云網絡端口數量超過 7500 萬個，我們正在與客戶一起經歷 3 個更新周期、企業中的 100GB 遷移、雲中的 200GB 和 400GB 遷移以及 AI 工作負載的 400GB 到 800GB 遷移。

During the past couple of years, we have enjoyed significant increase in cloud CapEx to support our Cloud Titan customers for their ever-growing needs, tech refresh and expanded offerings. Each customer brings a different business and mix of AI networking and classic cloud networking for their compute and storage clusters. One specific Cloud Titan customer has signaled a slowdown in CapEx from previously elevated levels. Therefore, we expect near-term Cloud Titan demand to moderate with spend favoring their AI investments. We do project, however, that we will grow in excess of 30% annually versus our prior Analyst Day forecast of 25% in 2023.

在過去幾年中，我們的雲資本支出顯著增加，以支持我們的 Cloud Titan 客戶不斷增長的需求、技術更新和擴展的產品。每個客戶為其計算和存儲集群帶來不同的業務以及人工智能網絡和經典云網絡的組合。一位特定的 Cloud Titan 客戶表示，資本支出較之前較高的水平有所放緩。因此，我們預計近期雲泰坦的需求將放緩，支出有利於其人工智能投資。不過，我們確實預計，到 2023 年，我們的年增長率將超過 30%，而之前分析師日預測為 25%。

The AI opportunity is exciting. As our largest cloud customers review their classic cloud and AI networking plans, Arista is adapting to these changes, thereby doubling down on our investments in AI. Arista is a proud founding member of the Ultra Ethernet Consortium that is on a mission to build open, multivendor AI networking at scale based on proven Ethernet and IP.

人工智能的機會令人興奮。隨著我們最大的雲客戶審查他們的經典雲和 AI 網絡計劃，Arista 正在適應這些變化，從而加倍我們對 AI 的投資。 Arista 是 Ultra 以太網聯盟的創始成員，其使命是基於經過驗證的以太網和 IP 大規模構建開放的多供應商 AI 網絡。

There a lot of software and EOS considerations for AI. AI traffic and performance demands are different as it comprises of a small number of synchronized high-banded flows, making them prone to collisions that slow down the job completion time of AI cluster. As we connect thousands of GPUs, generating billions of parameters of petascale of clusters, Arista's EOS capabilities must also scale along with our AI spine and leaf platforms to achieve that consistent performance and throughput.

AI 有很多軟件和 EOS 考慮因素。 AI 流量和性能需求不同，因為它由少量同步的高頻帶流組成，這使得它們容易發生衝突，從而減慢 AI 集群的作業完成時間。當我們連接數千個 GPU，生成數十億個千萬億級集群參數時，Arista 的 EOS 功能還必須與我們的 AI 主乾和葉子平台一起擴展，以實現一致的性能和吞吐量。

Arista has been developing EOS features such as intelligent load balancing and advanced analyzers to report and rebalance flows that can achieve predictable performance. Customers can now pick and choose programmable packet header field for better entropy and efficient load balancing of their AI workloads.

Arista 一直在開發 EOS 功能，例如智能負載平衡和高級分析器，以報告和重新平衡流量，從而實現可預測的性能。客戶現在可以挑選可編程數據包標頭字段，以實現更好的熵和人工智能工作負載的高效負載平衡。

Network visibility is also important in the training phase for large data sets to improve the accuracy of large language models. Arista's new AI analyzer monitors and reports traffic counters at microsecond-level windows to detect and address microbursts.

網絡可見性在大數據集的訓練階段也很重要，以提高大語言模型的準確性。 Arista 的新型 AI 分析器以微秒級窗口監控和報告流量計數器，以檢測和解決微突發。

Our AI strategy and platforms are resonating well with our early customers. Presently, in 2023, we are in the middle of trials for back-end AI networks, leading to pilots in 2024. We expect larger clusters and production deployments in 2025 and beyond. In the decade ahead, AI networking will become an extension of cloud networking to form a cohesive and seamless front-end and back-end network.

我們的人工智能戰略和平台與我們的早期客戶產生了良好的共鳴。目前，到 2023 年，我們正處於後端 AI 網絡試驗階段，預計將在 2024 年進行試點。我們預計在 2025 年及以後會出現更大的集群和生產部署。未來十年，人工智能網絡將成為云網絡的延伸，形成一個內聚、無縫的前後端網絡。

In the non-cloud enterprise category, we continue to experience good momentum in both data center and campus. Let me illustrate with a few customer wins. The first is an international new transportation win, where the customer was seeking to modernize their legacy campus. Their end points included large and small campus locations, internal communication devices, various IoTs, CCTV, display boards and much more.

在非雲企業類別中，我們在數據中心和園區方面繼續保持良好勢頭。讓我用一些贏得客戶的例子來說明。第一個是國際新交通勝利，客戶正在尋求對其傳統園區進行現代化改造。他們的端點包括大大小小的校園地點、內部通信設備、各種物聯網、閉路電視、顯示板等等。

The customer mandated a fully automated workflow. Arista presented a highly optimized, best-of-class cognitive campus. When there is a single binary EOS image across all campus platforms complete with the universal API and built-in automation features, the customer was set on a path to continued campus modernization.

客戶要求採用完全自動化的工作流程。 Arista 展示了一個高度優化、一流的認知園區。當所有園區平台上都有一個具有通用 API 和內置自動化功能的二進制 EOS 映像時，客戶就走上了持續園區現代化的道路。

The next enterprise win involves both data center and campus with advanced EVPN, L3 VPN over VXLAN routing architecture instead of the traditional Layer 2 extension. Distributed AVA sensors were strategically positioned within the network to capture and analyze traffic at critical points. This zero-trust approach emphasizes threat mitigation throughout the network as opposed to relying solely on silo security. The integration of real-time streaming telemetry and visibility capabilities proved to be paramount in obtaining this operational acceptance.

下一個企業勝利涉及數據中心和園區，採用先進的 EVPN、基於 VXLAN 路由架構的 L3 VPN，而不是傳統的第 2 層擴展。分佈式 AVA 傳感器戰略性地放置在網絡內，以捕獲和分析關鍵點的流量。這種零信任方法強調減輕整個網絡的威脅，而不是僅僅依賴孤島安全。事實證明，實時流遙測和可見性功能的集成對於獲得這種操作認可至關重要。

The final win was in a large public sector, connecting redundant data centers to hundreds of campus locations with a large routing environment. They were challenged with complex MPLS routing that was hard to operate across the WAN and campus network. An upgrade of any magnitude implied several million dollars impacting changed controls to touch on all their sites.

最終的勝利是在大型公共部門，通過大型路由環境將冗餘數據中心連接到數百個園區位置。他們面臨著複雜的 MPLS 路由的挑戰，這些路由很難跨 WAN 和園區網絡運行。任何規模的升級都意味著需要花費數百萬美元來更改控制以觸摸其所有站點。

Arista demonstrated that the customer could use a single sign for both LAN and WAN to dramatically simplify and automate the whole environment within 30 days. This 80% reduction in total cost of ownership was made possible with Arista's modern cloud operating model.

Arista 證明客戶可以使用 LAN 和 WAN 的單一標誌在 30 天內顯著簡化和自動化整個環境。總擁有成本降低了 80%，這得益於 Arista 的現代云運營模式。

You can see a recurring theme here across all these customer wins, which is the power of our platform innovation, quality and support with a low TCO and a single cloud vision and EOS software stack. Arista is diversifying its business to transform the enterprise to a modern network operating model.

您可以在所有這些客戶勝利中看到一個反復出現的主題，那就是我們的平台創新、質量和支持以及低總體擁有成本、單一云願景和 EOS 軟件堆棧的力量。 Arista 正在實現業務多元化，將企業轉型為現代網絡運營模式。

Before I hand to Ita, I would like to share with you that Ita is planning to retire sometime next year in 2024. She has had a stellar career at Arista as our Chief Financial Officer. Ita has been our business partner and friend for the past 8 years. She has displayed the Arista way, always prioritizing our customers, employees and shareholders. Ita has demonstrated and delivered both growth and profitability with a very, very small G&A investment of and only 1.5% of revenue. This type of pristine financials are so rare in a fast-growing tech company and only possible with a shared vision between the CFO and CEO.

在交給 Ita 之前，我想告訴大家，Ita 計劃於明年 2024 年退休。她在 Arista 擔任首席財務官，擁有出色的職業生涯。在過去的 8 年裡，Ita 一直是我們的業務合作夥伴和朋友。她展現了 Arista 之道，始終優先考慮我們的客戶、員工和股東。 Ita 已經證明並實現了增長和盈利能力，其 G&A 投資非常非常小，僅佔收入的 1.5%。這種原始的財務狀況在快速發展的科技公司中非常罕見，只有首席財務官和首席執行官之間有共同的願景才有可能實現。

Ita, thank you for your steady leadership and contributions. Undoubtedly, we will miss you next year when you retire. Over to you for financial metrics.

Ita，感謝您的堅定領導和貢獻。毫無疑問，明年您退休時我們會想念您的。財務指標交給您了。

Thanks, Jayshree. That's very kind. It's been an amazing experience working with you and the whole Arista team over the last 8 years.

謝謝，傑什裡。這真是太好了。在過去的 8 年裡，與您和整個 Arista 團隊合作是一次令人驚嘆的經歷。

Now back to the numbers. This analysis of our Q2 results and our guidance for Q3 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.

現在回到數字。我們對第二季度業績的分析和第三季度的指導基於非公認會計準則，不包括所有非現金股票薪酬影響、某些收購相關費用和其他非經常性項目。我們的收益報告中提供了我們選擇的 GAAP 與非 GAAP 業績的全面對賬。

Total revenues in Q2 were $1.46 billion, up 38.7% year-over-year, well above the upper end of our guidance of $1.35 billion to $1.4 billion. Services and subscription software contributed approximately 15.2% of revenue in the quarter, up from 14.9% in Q1. International revenues for the quarter came in at $304.4 million or 20.9% of total revenue, up from 17.5% last quarter. This quarter-over-quarter increase largely reflected a healthy contribution from our enterprise customers in EMEA and APAC and some reduction in domestic shipments to our Cloud Titan customers, which were unusually robust in the prior quarter.

第二季度總收入為 14.6 億美元，同比增長 38.7%，遠高於我們 13.5 億至 14 億美元指導上限。服務和訂閱軟件約佔本季度收入的 15.2%，高於第一季度的 14.9%。本季度國際收入為 3.044 億美元，佔總收入的 20.9%，高於上季度的 17.5%。這一季度環比增長在很大程度上反映了我們在歐洲、中東和非洲和亞太地區的企業客戶的健康貢獻，以及對我們的 Cloud Titan 客戶的國內出貨量的一些減少，這些客戶在上一季度異常強勁。

Overall gross margin in Q2 was 61.3%, in line with our guidance of approximately 61% and up from 60.3% last quarter. We continue to see incremental improvements in gross margin quarter-over-quarter with higher enterprise shipments and better supply chain costs, somewhat offset by the need for some additional inventories there as customers refine their forecasted product mix.

第二季度的總體毛利率為 61.3%，與我們約 61% 的指導一致，高於上季度的 60.3%。我們繼續看到，隨著企業出貨量的增加和供應鏈成本的改善，毛利率環比不斷提高，但隨著客戶完善其預測的產品組合，需要增加一些庫存，從而在一定程度上抵消了毛利率的改善。

Operating expenses for the quarter were $287.3 million or 19.7% of revenue, up from last quarter at $257.5 million. R&D spending came in at $188.5 million or 12.9% of revenue up from $164.8 million last quarter. This primarily reflected increased headcount and higher new product introduction costs in the period. Sales and marketing expense was $79.6 million or 5.5% of revenue compared to $75.9 million last quarter, with increased headcount and product demo costs.

本季度運營費用為 2.873 億美元，佔收入的 19.7%，高於上季度的 2.575 億美元。研發支出為 1.885 億美元，佔收入的 12.9%，高於上季度的 1.648 億美元。這主要反映了這一時期員工人數的增加和新產品推出成本的增加。銷售和營銷費用為 7,960 萬美元，佔收入的 5.5%，而上季度為 7,590 萬美元，原因是員工人數和產品演示成本有所增加。

Our G&A costs came in at $19.1 million or 1.3% of revenue, consistent with last quarter. Our operating income for the quarter was $606.5 million or 41.6% of revenue. Other income and expense for the quarter was a favorable $31.6 million, and our effective tax rate was 21.4%. This resulted in net income for the quarter of $501.2 million or 34.4% of revenue. Our diluted share number was 316.5 million shares, resulting in a diluted earnings per share number for the quarter of $1.58, up 46% from the prior year.

我們的一般管理費用為 1,910 萬美元，佔收入的 1.3%，與上季度持平。我們本季度的營業收入為 6.065 億美元，佔收入的 41.6%。本季度的其他收入和支出為 3160 萬美元，有效稅率為 21.4%。這使得該季度的淨利潤達到 5.012 億美元，佔收入的 34.4%。我們的稀釋後股票數量為 3.165 億股，導致本季度稀釋後每股收益為 1.58 美元，比上一年增長 46%。

Now turning to the balance sheet. Cash, cash equivalents and investments ended the quarter at approximately $3.7 billion. In the quarter, we repurchased $30 million of our common stock at an average price of $137.2 per share. We've now repurchased $855.5 million or 8 million shares at an average price of $107 per share under our current $1 billion board authorization. This leaves $145 million available for repurchase in future quarters. The actual timing and amount of future repurchases will be dependent on market and business conditions, stock price and other factors.

現在轉向資產負債表。本季度末現金、現金等價物和投資約為 37 億美元。本季度，我們以每股 137.2 美元的平均價格回購了 3000 萬美元的普通股。根據目前 10 億美元的董事會授權，我們現已以每股 107 美元的平均價格回購了 8.555 億美元，即 800 萬股股票。這留下了 1.45 億美元可用於未來幾個季度的回購。未來回購的實際時間和金額將取決於市場和業務狀況、股價和其他因素。

Now turning to operating cash performance for the second quarter. We generated approximately $434.1 million of cash from operations in the period, reflecting strong earnings performance, partially offset by ongoing investments in working capital. DSOs came in at 49 days, down from 57 days in Q1, reflecting a strong collections quarter with good linearity of billings. Inventory turns were 1.2x, down to 1.3x last quarter.

現在轉向第二季度的運營現金表現。在此期間，我們從運營中產生了約 4.341 億美元的現金，反映出強勁的盈利表現，但部分被持續的營運資本投資所抵消。 DSO 的周期為 49 天，低於第一季度的 57 天，反映出收款季度強勁且賬單線性良好。庫存周轉率為 1.2 倍，下降至上季度的 1.3 倍。

Inventory increased to $1.9 billion in the quarter, up from $1.7 billion in the prior period, reflecting the receipt of components from our purchase commitments and an increase in switch-related finished goods. Our purchase commitments at the end of the quarter were $2.2 billion, down from $2.9 billion at the end of Q1. We expect this number to continue to decline in future quarters as component lead times improve, and we work to optimize our supply position.

本季度庫存增加至 19 億美元，高於上一期的 17 億美元，反映出我們從採購承諾中收到的零部件以及與開關相關的製成品的增加。本季度末我們的採購承諾為 22 億美元，低於第一季度末的 29 億美元。我們預計，隨著零部件交貨時間的縮短，這一數字將在未來幾個季度繼續下降，並且我們將努力優化我們的供應狀況。

Our total deferred revenue balance was $1.085 billion, down from $1.092 billion in Q1. The majority of the deferred revenue balance in services and related and directly linked to the timing and term of service contracts, which can vary on a quarter-by-quarter basis. Our product deferred revenue balance declined approximately $33 million from last quarter. Account payable days were 57 days, up from 55 days in Q1, reflecting the timing of inventory receipts and payments. Capital expenditures for the quarter were $11.6 million.

我們的遞延收入餘額總額為 10.85 億美元，低於第一季度的 10.92 億美元。服務中的大部分遞延收入餘額與服務合同的時間和期限相關並直接相關，而服務合同的時間和期限可能會因季度而異。我們的產品遞延收入餘額比上季度減少了約 3300 萬美元。應付賬款天數為 57 天，高於第一季度的 55 天，反映了庫存收付的時間。該季度的資本支出為 1160 萬美元。

Now turning to our outlook for the third quarter and beyond. To recap, global supply chain disruptions over the last couple of years, necessitated elongated planning horizons and customer demand signals. The corollary is also true, improving lead times are now driving shorter planning horizons and demand signals to [laying] when customers need to place new orders.

現在轉向我們對第三季度及以後的展望。回顧一下，過去幾年全球供應鏈中斷，需要延長規劃期限和客戶需求信號。推論也是如此，交貨時間的縮短現在正在縮短規劃期限，並在客戶需要下新訂單時發出需求信號。

This is particularly true of our Cloud Titan customers in following a year of elevated purchases with now rapidly changing technology road maps and priorities before providing visibility to future demand later in the year. On the supply side, we expect to continue to ship against previously committed deployment plans for some time, targeting supply improvements where most needed, but also careful not to create redundant customer inventory.

對於我們的 Cloud Titan 客戶來說尤其如此，在經歷了一年的購買量增加之後，現在技術路線圖和優先事項正在快速變化，然後才能在今年晚些時候提供對未來需求的可見性。在供應方面，我們預計將在一段時間內繼續按照之前承諾的部署計劃進行發貨，以最需要的地方改善供應為目標，但也要小心不要產生多餘的客戶庫存。

In spite of the return to shorter lead times to improved visibility, we are executing well with gradual incremental improvements to our 2023 outlook, which now calls for year-over-year growth in excess of 30%. On the gross margin front, we expect continued progress through the end of the year, reflecting supply chain and manufacturing benefits while maintaining a reasonably healthy cloud contribution.

儘管交付週期縮短以提高可見性，但我們的執行情況良好，我們對 2023 年的前景進行了逐步增量改進，目前要求同比增長超過 30%。在毛利率方面，我們預計到今年年底將繼續取得進展，反映供應鍊和製造效益，同時保持相當健康的雲貢獻。

Now turning to spending and investments. We continue to monitor the overall macro environment carefully, and we'll prioritize our investments as we move through the year. This will include a focus on targeted hires in R&D and go-to-market as the team sees the opportunity to add talent. On the cash front, while we'll continue to focus on supply chain and working capital optimization, you should expect some continued growth in inventory through the end of the year. Also, as a reminder, our 2023 tax payments have been deferred to October and will represent a significant use of cash in that quarter.

現在轉向支出和投資。我們將繼續密切監控整體宏觀環境，並將在全年中確定投資的優先順序。這將包括重點關注研發和上市方面的有針對性的招聘，因為團隊看到了增加人才的機會。在現金方面，雖然我們將繼續關注供應鍊和營運資金優化，但您應該預計到年底庫存將持續增長。另外，提醒一下，我們 2023 年的納稅已推遲到 10 月份，這將是該季度大量使用現金的情況。

With all of this as a backdrop, our guidance for the third quarter based on non-GAAP results and excludes any noncash stock-based compensation impacts and other nonrecurring items is as follows: revenues of approximately $1.45 billion to $1.5 billion, gross margin of approximately 62%, operating margin at approximately 41%. Our effective tax rate is expected to be approximately 21.5% with diluted shares of approximately 318 million shares.

在此背景下，我們基於非公認會計準則業績並排除任何非現金股票薪酬影響和其他非經常性項目的第三季度指引如下：收入約為 14.5 億至 15 億美元，毛利率約為62%，營業利潤率約為 41%。我們的有效稅率預計約為 21.5%，稀釋後股份約為 3.18 億股。

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

我現在將把電話轉回給莉茲。麗茲？

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。我們現在將進入 Arista 財報電話會議的問答部分。 （操作說明）感謝您的理解。接線員，把它拿走。

(Operator Instructions) Your first question comes from the line of William Ng (sic) [Michael Ng] with Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的William Ng（原文如此）[Michael Ng]。

This is Mike Ng from Goldman Sachs. I was just wondering if you could talk a little bit more about the outlook for in excess of 30% year-over-year growth this year on revenue. What's gotten better relative to last earnings call? If you could talk about it in the context of Cloud Titans versus enterprise, that would be helpful. I'm just trying to reconcile the revenue upgrade versus the commentary about near-term Cloud Titan growth moderating.

我是高盛的邁克·吳。我只是想知道您是否可以多談談今年收入同比增長超過 30% 的前景。與上次財報電話會議相比，哪些方面有所改善？如果您可以在雲泰坦與企業的背景下談論它，那將會很有幫助。我只是試圖協調收入升級與有關近期雲泰坦增長放緩的評論。

Yes. Thanks, Mike. I think it's pretty clear that from quarter-over-quarter, our enterprise momentum continues to get stronger and better. And our cloud is strong. However, it's got 2 components now. There's the classic cloud networking and then the AI. So we're reconciling how we double down more on AI, which we are feeling stronger and stronger about.

是的。謝謝，邁克。我認為很明顯，從季度環比來看，我們的企業勢頭繼續變得更強更好。我們的雲很強大。然而，它現在有 2 個組件。首先是經典的云網絡，然後是人工智能。因此，我們正在協調如何加大對人工智能的投入，我們對人工智能的感覺越來越強烈。

And even on the cloud, you know that the last 2 years have just been out of this world and phenomenal. So while it's moderating, it's still pretty good.

即使在雲上，您也知道過去兩年的表現非常出色。因此，雖然它正在緩和，但它仍然相當不錯。

We'll take our next question from Tim Long with Barclays.

我們將回答巴克萊銀行蒂姆·朗的下一個問題。

Jayshree, I was hoping you could dig more into some of the comments around AI. It sounds like there's a large pipeline there, and you talked about kind of the stages with 2025 being the big growth area. I'm curious if you can just talk a little bit about a few things related to that.

Jayshree，我希望你能深入研究一些有關人工智能的評論。聽起來那裡有一個很大的管道，你談到了 2025 年是大增長區域的階段。我很好奇你能否簡單談談與此相關的一些事情。

One, do you see that the move to AI expanding or diversifying more your Cloud Titan or cloud customers? And second, can you talk about kind of the next year or 2, the entire -- the InfiniBand versus Ethernet debate, I think you guys have been trialing some Ethernet inside clusters. Can you just give us an update on how you think that -- competition between those 2 technologies, how do you think that's going to play out?

第一，您是否認為向 AI 的轉變會擴大您的 Cloud Titan 或云客戶的規模或使其更加多樣化？其次，您能否談談未來一兩年的整個 InfiniBand 與以太網辯論，我認為你們一直在集群內嘗試一些以太網。您能否向我們介紹一下您的最新看法——這兩種技術之間的競爭，您認為結果會如何？

Okay. Thank you, Tim. Maybe my answer will be shorter than your question. But I think the gist of what I'd like to first of all say is majority of Arista's participation has been in the front end of the network, right? And we're getting a chance for the first time ever to play in the back end. So when we think AI, there's clearly some ramifications of bandwidth on the front end of the network, but we're not counting that. So we're clearly thinking of something that's incremental, brand new, a lot of work to do, in testing, proving, pilots, trials before we get into production.

好的。謝謝你，蒂姆。也許我的回答會比你的問題短。但我認為我首先想說的是，Arista 的大部分參與都在網絡前端，對吧？我們有史以來第一次有機會在後場比賽。因此，當我們考慮人工智能時，網絡前端的帶寬顯然會產生一些影響，但我們沒有計算在內。因此，我們顯然正在考慮一些漸進的、全新的、在投入生產之前需要做大量工作的測試、證明、試點、試驗。

Today, I would say, in the back end of the network, there are basically 3 classes of networks. One is very, very small networks that are within a server where customers use PCIe, CXL, there is proprietary NVIDIA-specific technologies like NVLink that Arista does not participate. Then there's more medium clusters, you can think generative AI, mostly inference where they may well get built on Ethernet. For the extremely large clusters with large language training models, especially with the advent of ChatGPT 3 and 4 you're not talking about not just billion parameters, but an aggregate of trillion parameters.

今天，我想說，在網絡後端，基本上有 3 類網絡。一種是非常非常小的網絡，位於客戶使用 PCIe、CXL 的服務器內，存在 Arista 不參與的 NVLink 等專有的 NVIDIA 特定技術。然後還有更多的中等集群，你可以認為生成人工智能，主要是推理，它們很可能建立在以太網上。對於具有大型語言訓練模型的超大型集群，特別是隨著 ChatGPT 3 和 4 的出現，您談論的不僅僅是十億個參數，而是萬億個參數的聚合。

And this is where Ethernet will shine. But today, the only technology that is available to customers is InfiniBand. So obviously, InfiniBand with 10, 15 years of similarity in an HPC environment is often being bundled with the GPU. But the right long-term technology is Ethernet, which is why I'm so proud of what the Ultra Ethernet Consortium and a number of vendors are doing to make that happen. So near term, there's going to be a lot of InfiniBand and Arista will be watching that outside in.

這就是以太網的閃光點。但如今，客戶可以使用的唯一技術是 InfiniBand。顯然，在 HPC 環境中具有 10、15 年相似性的 InfiniBand 通常與 GPU 捆綁在一起。但正確的長期技術是以太網，這就是為什麼我對超以太網聯盟和許多供應商為實現這一目標所做的努力感到如此自豪。因此，短期內將會出現大量 InfiniBand，而 Arista 將會從外部關注這一情況。

But longer term, Arista will be participating in an Ethernet [AI] network. And neither technology, I want to say, were perfectly designed for AI, InfiniBand was more focused on HPC and Ethernet was more focused on general purpose networking. So I think the work we are doing with the UEC to improve Ethernet for AI is very important.

但從長遠來看，Arista 將參與以太網 [AI] 網絡。我想說，這兩種技術都不是為人工智能而完美設計的，InfiniBand 更專注於 HPC，而以太網更專注於通用網絡。因此，我認為我們與 UEC 合作改進人工智能以太網的工作非常重要。

We'll take our next question from Meta Marshall with Morgan Stanley.

我們將回答摩根士丹利的梅塔·馬歇爾提出的下一個問題。

Great. just revisiting kind of the Cloud Titan commentary, does the change that you're seeing mean that they're completing kind of 1 upgrade cycle, there might just be time between the next upgrade cycle? Or are there real changes to kind of current deployment plans or kind of deployment of the current upgrades?

偉大的。只是重新審視雲泰坦的評論，您看到的變化是否意味著他們正在完成第一個升級週期，下一個升級週期之間可能只是有時間？或者當前部署計劃或當前升級的部署是否有真正的變化？

Sorry -- Meta, were you addressing the question to Ita?

抱歉 - Meta，您是在向 Ita 提出這個問題嗎？

I guess I was addressing to whoever wants to answer about the kind of commentary on the changes in the Cloud Titan order.

我想我是在向任何想回答有關雲泰坦秩序變化的評論的人講話。

Go for it, Anshul.

加油吧，安舒爾。

Sure. Meta, when you look at the cloud customers in the last few quarters, especially since the advent of ChatGPT, there's been a rotation into AI. It's not that they're done with the upgrades or they deferred the upgrades, but they had to reprioritize their business and their deployments for AI. You've seen the competitive battle between the largest of the largest Titans in the world trying to get ahead. But we see signs of that thawing and in the future, we believe they'll be back to adding and refreshing their standard computer infrastructure as well.

當然。 Meta，當你觀察過去幾個季度的雲客戶時，特別是自 ChatGPT 出現以來，你會發現已經開始轉向人工智能。這並不是說他們已經完成了升級或推遲了升級，而是他們必須重新調整業務和人工智能部署的優先順序。您已經看到了世界上最大的泰坦之間試圖取得領先的競爭性戰鬥。但我們看到了這種解凍的跡象，並且在未來，我們相信他們也會重新添加和更新他們的標準計算機基礎設施。

I would like to -- you can only do so for so long, eventually you have to eat. So I think we will see a nice mix of AI and classic cloud networking over time.

我想——你只能這樣做這麼久，最終你必須吃飯。因此，我認為隨著時間的推移，我們將看到人工智能和經典云網絡的完美結合。

And I think the lead time improvements have kind of facilitated them waiting for a little bit longer than what we've gotten used to over the last couple of years. But I think, again, that's kind of -- we're going to start coming within lead time here pretty soon than mostly.

我認為交貨時間的縮短讓他們等待的時間比我們過去幾年習慣的要長一些。但我再次認為，我們將比大多數情況更快地開始在交貨時間內完成任務。

We'll take our next question from Ben Bollin with Cleveland Research.

我們將回答克利夫蘭研究中心的本·博林 (Ben Bollin) 提出的下一個問題。

Ita, congrats. I had a question for you. I was hoping you could speak to where you see lead times presently. And you talked about taking a little bit more managed approach to inventory levels at customers. Could you talk about some strategies that you employ to manage that? And where you might see -- where you think inventory levels are within those accounts?

伊塔，恭喜。我有個問題想問你。我希望您能談談您目前看到的交貨時間。您談到了對客戶的庫存水平採取更加管理的方法。您能談談您用來管理這一問題的一些策略嗎？您可能會在哪裡看到 - 您認為這些賬戶中的庫存水平在哪裡？

Yes. I think, look, the lead times are mixed across products. I mean our goal certainly is to try to get back to like a 6-month lead time here, maybe the end of the year or certainly early next year. But it is currently mixed across products. The commentary around customer inventory and so, we've been very diligent all the way through this process, the supply chain processes. Trying to make sure we understood demand when it showed up and that it was being put into reasonable deployment schedules and deployment plans. And we just want to continue to do that as we come through the other side of really that whole supply chain disruption.

是的。我認為，看，不同產品的交貨時間是混合的。我的意思是，我們的目標當然是嘗試恢復到 6 個月的交貨時間，也許是今年年底，或者肯定是明年初。但目前它在不同的產品中是混雜的。圍繞客戶庫存的評論，因此，我們在整個供應鏈流程中一直非常勤奮。努力確保我們在需求出現時理解需求，並將其納入合理的部署時間表和部署計劃中。當我們經歷整個供應鏈中斷的另一面時，我們只想繼續這樣做。

So it's really more understanding kind of what customers need, when they need it and again, being able to prioritize and make sure that we understand that. So it's really a continuation of what we were doing, honestly, on the other side of the supply chain when you have these -- we had this kind of accelerated demand and then we were very focused on deployment schedules and timing. And this is just the other side of that, again, making sure we understand what's happening.

因此，這實際上是更多地了解客戶的需求、何時需要以及再次需要，能夠確定優先級並確保我們理解這一點。因此，老實說，這實際上是我們在供應鏈另一端所做的事情的延續——我們有這種加速的需求，然後我們非常關注部署計劃和時間安排。這只是另一面，再次確保我們了解正在發生的事情。

We'll take our next question from Antoine Chkaiban with New Street Research.

我們將回答 New Street Research 的 Antoine Chkaiban 提出的下一個問題。

And maybe a bit of a longer-term question, but can you please provide an update on the opportunity at hyperscalers beyond your 2 largest customers, does the accelerated deployment of AI clusters potentially open the door to business with the other 2 hyperscalers as the complexity of the networks is increasing rapidly.

也許是一個更長期的問題，但您能否提供有關您的 2 個最大客戶之外的超大規模企業機會的最新信息？人工智能集群的加速部署是否可能為與其他 2 個超大規模企業開展業務打開大門，因為複雜性網絡的數量正在迅速增加。

So this gets asked very often how we're doing with the -- and we continue to do well with them. As I mentioned before, not all Titans are the same in terms of size. Some are small, and we do very well with them, but they're just not as big as our 2 largest customers and others who have the potential, we are still doing very well, technologically, with them, but we haven't seen the opportunity materialize. It's not that we're losing to anybody. It's just nothing has changed. And we continue to invest with them, and we believe the opportunity is still ahead of us.

因此，人們經常問我們如何處理這些問題，而且我們將繼續做得很好。正如我之前提到的，並非所有泰坦的大小都相同。有些規模很小，我們與他們合作得很好，但他們只是沒有我們最大的兩個客戶和其他有潛力的客戶那麼大，我們在技術上仍然與他們合作得很好，但我們還沒有看到機會實現了。並不是說我們輸給了任何人。只是什麼都沒有改變。我們將繼續與他們一起投資，我們相信機會仍在前方。

Exactly, Anshul. I think the way to look at our AI opportunity is it's 10 years ahead of us. And we'll have early customers in the cloud with very large data sets, trialing our Ethernet now. And then we will have more cloud customers, not only Titans, but other high-end Tier 2 cloud providers and enterprises with large data sets that would also trial us over time. So in 2025, we expect to have a large list of customers, of which Cloud Titans will still end up being some of the biggest but not the only ones.

沒錯，安舒爾。我認為看待人工智能機遇的方法是它比我們領先 10 年。我們將在雲中擁有非常大的數據集的早期客戶，現在就試用我們的以太網。然後我們將擁有更多的雲客戶，不僅是泰坦，還有其他高端二級雲提供商和擁有大數據集的企業，隨著時間的推移，他們也會對我們進行考驗。因此，到 2025 年，我們預計將擁有大量客戶，其中 Cloud Titans 最終仍將是最大的客戶之一，但不是唯一的客戶。

Our next question comes from Amit Daryanani with Evercore.

我們的下一個問題來自 Evercore 的 Amit Daryanani。

Congrats on a nice quarter here. I guess my question is really -- there's been a fair bit of debate investors on what the calendar '24 look like for Arista and the fear, I think always is, it could look like calendar '20 when you had some cloud digestion. I realize it's really early for you to guide '24. But if you just sort of think about the puts and takes into next year, that would be helpful. And maybe, Jayshree, you could talk about how do you think Arista is different today versus in the calendar '19 and the '20 time frame, that would be helpful.

恭喜您度過了一個愉快的季度。我想我的問題確實是——投資者對 Arista 的 24 日曆是什麼樣子進行了相當多的爭論，我認為一直以來，當你進行了一些雲消化時，它可能看起來像 20 日曆。我意識到你現在指導 24 還為時過早。但如果你只考慮明年的看跌期權和跌幅，那將會有所幫助。也許，Jayshree，您可以談談您認為今天的 Arista 與 19 年日曆和 20 年時間框架有何不同，這會很有幫助。

Yes. No, that's a really good question. Stay tuned for our 2024 guide when we have our Analyst Day sometime in November. But qualitatively speaking, we're a very different company today than 3 years ago. Clearly, we've doubled down on our Cloud Titans, and you know that they're getting stronger and stronger. But even in the Cloud Titans, Anshul the team have worked to have a number of use cases. It isn't just one. And the addition of AI to their use cases just gave us a whole lot of broad opportunity from front end to back end, right? So to me, the holistic and seamless cohesion between the front end and back end will get even more important as time goes on in Cloud Titans.

是的。不，這是一個非常好的問題。當我們在 11 月的某個時候舉辦分析師日時，請繼續關注我們的 2024 年指南。但從質量上來說，我們今天的公司與三年前有很大不同。顯然，我們已經加倍加大了雲泰坦的投入，而且你知道它們正變得越來越強大。但即使在 Cloud Titans 中，Anshul 團隊也致力於擁有許多用例。這不僅僅是一個。將人工智能添加到他們的用例中給我們提供了從前端到後端的大量廣泛機會，對吧？因此對我來說，隨著《Cloud Titans》中時間的推移，前端和後端之間的整體無縫銜接將變得更加重要。

We also see that we're stronger in Tier 2 providers and, of course, the broader enterprise. Both of these were not as strong for us 3 years ago, and they also represent AI opportunities. But as you know, they represent practice, routing, classical data center opportunities, and allow us to go target a much larger TAM, again, 3 years ago, it's probably $30 billion. 3 years later, it's well north of $50 billion. So I feel we are much more diversified. And while we deeply appreciate M&M, we got a lot more candy beyond that.

我們還發現，我們在二級供應商以及更廣泛的企業方面實力更強。這兩個方面對我們來說都沒有三年前那麼強大，但它們也代表了人工智能的機會。但如您所知，它們代表了實踐、路由、經典數據中心機會，並使我們能夠瞄準更大的 TAM，同樣，3 年前，它可能是 300 億美元。 3 年後，這一數字已遠遠超過 500 億美元。所以我覺得我們更加多元化。雖然我們深深地欣賞 M&M 巧克力豆，但除此之外我們還得到了更多的糖果。

We'll take our next question from Tal Liani with Bank of America.

我們將回答美國銀行塔爾·利亞尼 (Tal Liani) 提出的下一個問題。

I have to ask you a tough one before you go. So you have a good taste for the rest a -- few years. How much of the growth this time is coming from backlog draw down? Can you give us some information about the order trends rather than revenues? And the reason why I'm asking it is because your guidance for 3Q is 25% growth. When I look at 4Q, it's the implied -- it's 11%. So there is a sharp deceleration in growth in 4Q. And I'm wondering if it's a function of backlog -- end of elevated backlog?

在你走之前我得問你一個棘手的問題。所以你對接下來的幾年有很好的品味。這次的增長有多少來自積壓訂單的減少？您能否向我們提供一些有關訂單趨勢而不是收入的信息？我之所以這麼問，是因為你們對第三季度的預測是 25% 的增長。當我看第四季度時，這是隱含的——是 11%。因此，第四季度的增長急劇減速。我想知道這是否是積壓的一個函數——積壓增加的結束？

I mean, look, we haven't talked about backlog and orders. I think we've talked more just in terms of deployments and deployment slots. And if you think back to the -- to my commentary, I mean, we do believe that there are ongoing deployments that will go well into 2024, right? So it's not -- again, I don't necessarily sign up to the terminology of the backlog and the drawdown, et cetera, because given how the orders, the patterns of the orders, it's very difficult to talk in that language, right? But I think in terms of deployments, we will have deployments that are already planned and scheduled into 2024.

我的意思是，看，我們還沒有討論積壓訂單和訂單。我認為我們更多地討論了部署和部署槽位。如果你回想一下我的評論，我的意思是，我們確實相信正在進行的部署將持續到 2024 年，對嗎？所以這不是——再說一遍，我不一定同意積壓和縮減等術語，因為考慮到訂單、訂單模式，用這種語言來談論是非常困難的，對吧？但我認為就部署而言，我們已經計劃並安排到 2024 年進行部署。

I think we're taking it quarter-by-quarter through the end of the year, but I'd still go back to my kind of incremental -- look at it kind of incrementally quarter-over-quarter and continue to show some improvement as we've guided to Q3. So Q4 is -- take some similar kind of incremental improvement into Q4. And I think that's the way to think about it for now. But again, I don't know that it's -- we -- our commentary on kind of demand and lead time stands, right? I mean, as lead times shorten, you will see some period of time where customers don't need to place orders and so you get back into lead time. And that dynamic is certainly there. And as we get closer to the end of the year, we'll get more visibility into next year.

我認為我們將在年底前逐季度進行，但我仍然會回到我的增量方式——逐季度增量地看待它，並繼續顯示出一些改進正如我們對第三季度的指導。所以第四季度是——在第四季度採取一些類似的增量改進。我認為這就是目前的思考方式。但同樣，我不知道我們對需求類型和交貨時間的評論是否成立，對吧？我的意思是，隨著交貨時間的縮短，您會看到一段時間內客戶不需要下訂單，因此您又回到了交貨時間。這種動力肯定是存在的。隨著年底的臨近，我們將對明年有更多的了解。

Tal, I think -- I know you asked a difficult question. Look, we'll know more as time goes on. And we think the business is strong and whether that comes in strongly in '24 or '25 or somewhere in between, we'll see, right? And the reality is, it will be difficult to repeat the last 2 years of exceptional cloud CapEx for cloud networking. So as they go through that deployment and as they look at AI and as we bring in the enterprise and Tier 2 cloud, we've got a nice mix of things.

塔爾，我想——我知道你問了一個很難的問題。聽著，隨著時間的推移我們會知道更多。我們認為這項業務很強勁，無論是在 24 年還是 25 年，還是介於兩者之間，我們都會看到，對吧？現實情況是，云網絡很難重複過去兩年出色的雲資本支出。因此，當他們完成部署並考慮人工智能時，當我們引入企業和第 2 層雲時，我們得到了很好的組合。

And I urge everyone to think of our business as Ita has always alluded to, not in 1 quarter or even 1 year, but really a 3-year CAGR. And I think our 3-year CAGR will continue to be in double digits and good numbers.

我敦促大家按照 Ita 一直提到的方式來思考我們的業務，不是 1 個季度甚至 1 年的複合年增長率，而是真正的 3 年復合年增長率。我認為我們的 3 年復合年增長率將繼續保持兩位數且良好的數字。

We'll take our next question from Sebastien Naji with William Blair.

我們將回答塞巴斯蒂安·納吉和威廉·布萊爾提出的下一個問題。

Can you maybe just update us on the visibility in your customer base? Is it still around 6 months? Or are we now down closer to 3 months? And maybe just longer term, do you think that generative AI could help improve that visibility from where it's historically been just given that many of these hyperscalers have what seems like decent visibility into a pretty robust pipeline over the next few years?

您能否向我們介紹一下您在客戶群中的知名度？現在還有6個月左右嗎？或者我們現在已經下降了接近 3 個月？也許從長遠來看，您認為生成式人工智能是否可以幫助提高歷史上的可見性，因為許多超大規模企業在未來幾年內對相當強大的管道具有相當不錯的可見性？

That's a very good question Sebastien. Since we have so many products in the mix, I have to break your question into visibility across multiple areas. Enterprise, I would say, it's 6 to 12 months, generally speaking. In the cloud, given the reduced lead times on classic cloud networking, it's less than 6 months. However, on AI, it is greater since it's an early cycle, and we have to do a lot more joint development. So you can think of it as 3 migrations going on with different visibility patterns.

塞巴斯蒂安，這是一個很好的問題。由於我們有如此多的產品，我必須將您的問題分解為跨多個領域的可見性。我想說，企業版一般來說是 6 到 12 個月。在雲中，考慮到經典云網絡的交付時間縮短，不到 6 個月。然而，在人工智能方面，它更大，因為它是一個早期週期，我們必須做更多的聯合開發。因此，您可以將其視為以不同可見性模式進行的 3 次遷移。

We'll take our next question from Samik Chatterjee with JPMorgan.

我們將回答摩根大通 Samik Chatterjee 提出的下一個問題。

Maybe if I can shift gears here a little bit to enterprise, Jayshree, and obviously, you're talking about the slowdown on the cloud side here a bit going into 2024. But when you look at enterprise, how do you think about sustaining a growth rate or the slowdown in that growth rate into 2024? What are you seeing in terms of orders on that front to sort of give you visibility into 2024?

也許我可以稍微把話題轉向企業，Jayshree，顯然，你正在談論云計算方面的放緩，進入 2024 年。但是，當你審視企業時，你如何考慮維持增長率還是到 2024 年增長率會放緩？您在這方面的訂單方面看到了什麼，可以讓您了解 2024 年的情況？

Look, I think, Samik, this is an area that we feel pretty good about, and it's an area of great execution from Anshul, Chris Schmidt, Ashwin and the entire team, where we have really diversified our business globally in the enterprise. We are not just in the high-end financials, we're in just about every major vertical, health care, transportation, public sector, education, banks, insurances.

聽著，我認為 Samik，這是一個我們感覺非常好的領域，也是 Anshul、Chris Schmidt、Ashwin 和整個團隊執行力出色的領域，我們在企業中真正實現了全球業務多元化。我們不僅涉足高端金融領域，而且涉足幾乎所有主要垂直領域，包括醫療保健、交通、公共部門、教育、銀行、保險。

So I feel enterprise -- barring any macro issue, which is the thing we were always worried about for 2024. So if macro doesn't let us down and we don't have to worry about the economy, we will have a strong year in enterprise.

所以我覺得企業——除非有任何宏觀問題，這是我們在 2024 年一直擔心的事情。所以，如果宏觀沒有讓我們失望，我們不必擔心經濟，我們將度過一個強勁的一年在企業。

We'll take our next question from Aaron Rakers with Wells Fargo.

我們將接受富國銀行 Aaron Rakers 提出的下一個問題。

I guess I wanted to ask just on product cycle cadence. There's a lot of focus from 1 of your key component suppliers on the merchant silicon side, around 51.2 terabit of silicon and obviously, supporting the 800 gig cycle. I'm curious how do you think about the timing of that? When do we start to see the materializing deployments of 800 gig? And maybe that's tied to AI, maybe it's not, but just curious on when that cycle you believe really starts to kick in.

我想我只想問產品週期節奏。您的一家關鍵組件供應商非常關注商用芯片方面，大約有 51.2 太比特的芯片，顯然支持 800 演出週期。我很好奇你如何看待這個時機？我們什麼時候開始看到 800 gig 的實際部署？也許這與人工智能有關，也許不是，但只是好奇你認為這個週期何時真正開始啟動。

Aaron, we had the same discussion when the world went to 400 gig. Are we switching for 100 to 400. The reality was the customers continue to buy both 100 and 400 for different use cases. [51T] and 800 gig especially are being pulled by AI clusters, the AI teams, they're very anxious to get their hands on it, move the data as quickly as possible and reduce their job completion times. So you'll see early traction there.

Aaron，當世界走向 400 場演出時，我們也進行了同樣的討論。我們是否要從 100 切換到 400？現實情況是，客戶會繼續為不同的用例購買 100 和 400。 [51T] 和 800 gig 特別是由 AI 集群、AI 團隊拉動，他們非常渴望掌握它，盡快移動數據並減少工作完成時間。所以你會在那裡看到早期的吸引力。

You'll see Jayshree mentioned trials really in '24, going into volume in '25, and that should be the ramp we'll follow for 800 gig. But that does not mean everything they just bought the last few years, at 400 gig for DCI or the spine and so on for classic clusters is going to get an upgrade to 800 gig. I think that's going to be a longer cycle. So you will see 100, 200, 400 and 800 get deployed in parallel as we enter that cycle in '24, '25.

你會看到 Jayshree 確實在 24 年提到了試驗，在 25 年進入批量生產，這應該是我們將遵循的 800 場演出的斜坡。但這並不意味著他們在過去幾年購買的所有設備（DCI 的 400 GB 或經典集群的主乾等）都會升級到 800 GB。我認為這將是一個更長的周期。因此，當我們在 24 年、25 年進入該週期時，您將看到 100、200、400 和 800 個並行部署。

We'll take our next question from Matthew Niknam with Deutsche Bank.

我們將接受德意志銀行 Matthew Niknam 提出的下一個問題。

I'm just wondering on the supply chain, if you can talk about how that's evolved over the last quarter. And as it relates to gross margins, I think you're messaging incremental improvements in 3Q and 4Q. Is that purely a function of easing supply chain? Or is there also maybe greater relative contribution from enterprise relative to Cloud Titans envisioned in the second half of the year as well?

我只是想知道供應鏈，您是否可以談談上個季度的發展情況。由於它與毛利率有關，我認為您正在傳達第三季度和第四季度的漸進式改善。這純粹是為了放鬆供應鏈嗎？或者，與下半年預計的雲泰坦相比，企業是否也可能做出更大的相對貢獻？

We're presently seeing improvement on the supply chain side. We're seeing improvements with freight, improvements with just some of the expedite costs and the things that we were dealing with and we're kind of inventoried and now we're releasing them. So I think we're coming out from underneath that.

我們目前看到供應鏈方面有所改善。我們看到貨運方面的改進，一些加急成本以及我們正在處理的事情的改進，我們已經庫存了，現在我們正在釋放它們。所以我認為我們正在走出困境。

There is some small shift in mix as well, but it's still a good strong cloud mix this quarter this year. So it's not like we're back to a heavy enterprise mix with cloud playing a much smaller part. There's still a very healthy kind of cloud mix in this year. So it's more where you can back out our -- the supply chain stuff that we've incurred in the past.

組合也有一些小變化，但今年本季度仍然是一個很好的強大的雲組合。因此，我們並沒有回到雲計算所扮演的角色更小的企業混合體。今年仍然存在非常健康的雲組合。因此，更多的是你可以取消我們過去發生的供應鏈問題。

Yes. I want to give a shout out. Mark Brillhart, our new Senior VP of Manufacturing and John McCool, both in Anshul's team have done a fantastic job of optimizing the supply chain. So those improvements are really playing a role in our quarter-to-quarter gross margins.

是的。我想大聲喊出來。 Anshul 團隊中的新任製造高級副總裁 Mark Brillhart 和 John McCool 在優化供應鏈方面做得非常出色。因此，這些改進確實對我們的季度毛利率產生了影響。

We'll take our next question from James Fish with Piper Sandler.

我們將回答詹姆斯·菲什和派珀·桑德勒提出的下一個問題。

Thanks for the question. I just wanted to follow up around some of the prior questions asked, as it might have been asked already. But I know you guys aren't talking about visibility and don't discuss backlog, but is it still fair to assume that we should think about you guys returning to a normal environment from a supply perspective in the early part of next year.

謝謝你的提問。我只是想跟進之前提出的一些問題，因為可能已經被問過。但我知道你們不是在談論可見性，也不是在討論積壓，但我們是否應該考慮在明年初從供應角度考慮你們恢復正常環境是否仍然公平。

And I believe Ita, you've talked about underneath assuming that hyperscalers or your Cloud Titans grow double digits for this year. Is it still fair to think about that kind of level for 2023?

我相信 Ita，您在下面談到了假設超大規模企業或您的雲泰坦今年將增長兩位數。考慮 2023 年的這種水平是否仍然公平？

Yes. I think absolutely, right? And I think we kind of forget that cloud is still an important part of 2023, right? We're still executing on deployment and planning that we did some time back, right, all the way through this year. So cloud is still a significant piece of the business in 2023.

是的。我想絕對是吧？我認為我們有點忘記了雲仍然是 2023 年的重要組成部分，對嗎？我們仍在執行我們之前所做的部署和規劃，對吧，今年一直如此。因此，到 2023 年，雲仍然是業務的重要組成部分。

Yes. And James, just to confirm, we expect a more normal setting in 2024 in terms of lead time. You're right to assume that.

是的。 James，我想確認一下，我們預計 2024 年的交貨時間會更加正常。你的假設是對的。

We'll take our next question from Simon Leopold with Raymond James.

我們將回答西蒙·利奧波德和雷蒙德·詹姆斯提出的下一個問題。

I wanted to see if you could maybe do a little bit of unpacking in terms of what's driving your enterprise business in that I think the conventional wisdom is that enterprises are challenged by recessionary forces on the cycle and then the secular challenge around public cloud adoption means slowing. So what do you see happening? How much of this success is related to market share gains, how much to general cycles, products, et cetera, if we could unpack the enterprise traction.

我想看看您是否可以對推動企業業務的因素進行一些分析，因為我認為傳統觀點是企業受到週期衰退力量的挑戰，然後圍繞公共雲採用的長期挑戰意味著放緩。那麼您認為發生了什麼？如果我們能夠釋放企業的吸引力，這種成功在多大程度上與市場份額的增長有關，在多大程度上與一般週期、產品等有關。

Sure, Simon. Well, of course, we have market share gains. That is the result of our enterprise action, I would say. But if you ask me, why are we winning in the enterprise? I would say, #1, from an alternative perspective, our customers haven't had one for a very long time. They haven't had a high-quality, high support, very friendly software experience, a common leaf-spine architecture across their data center, campus routing in a long, long time.

當然，西蒙。當然，我們的市場份額有所增加。我想說，這是我們企業行動的結果。但如果你問我，我們為什麼能在企業中獲勝？我想說，#1，從另一個角度來看，我們的客戶已經很長時間沒有這樣的產品了。他們已經很長一段時間沒有獲得高質量、高支持、非常友好的軟件體驗、跨數據中心和園區路由的通用葉脊架構了。

So I think the architectural shift in the enterprise to move to a modern cloud operating model is the #1 reason that Arista has been chosen, they are seeking our architecture for that quality of experience. In fact, Anshul and I were just talking about the call. We use the word, cloudify a lot. And it's important greatly right now, that our high-end enterprises are really looking for the cloud principles but however, on their premise.

因此，我認為企業轉向現代云運營模式的架構轉變是選擇 Arista 的第一大原因，他們正在尋求我們的架構來實現這種體驗質量。事實上，安舒爾和我只是在談論電話的事。我們經常使用“雲化”這個詞。現在非常重要的是，我們的高端企業確實在尋找雲原則，但是以它們為前提的。

In terms of the shift between workloads on the cloud and workloads under enterprise, it depends on the customer. You'll still see some of the mid-market customers want to move their e-commerce workloads on the cloud. But a lot of their mission-critical applications stay on the premise. So a hybrid strategy continues to dominate the enterprise decision for the data center.

至於雲上的工作負載和企業下的工作負載之間的轉換，這取決於客戶。您仍然會看到一些中端市場客戶希望將其電子商務工作負載轉移到雲上。但他們的許多關鍵任務應用程序都保留在本地。因此，混合策略繼續主導企業的數據中心決策。

Secondly, our entry into the campus and routing as well as zero-trust security and severity, et cetera, is adding more layers to the cake. So our product depth and breadth is getting better and better.

其次，我們進入園區和路由以及零信任安全性和嚴重性等等，都在蛋糕上添加了更多層。所以我們的產品深度和廣度越來越好。

So the cloud operating model, the product depth and now actually, we've been at it now for, what do you say, Anshul, 3 to 5 years maybe? So especially in the United States, we've got more work to do internationally and I would say we've been engaging with these customers. I remember when Ita and I had a discussion, I want to say 5 years ago, where she was right and I was wrong, and she persuaded me to invest more in the enterprise. So I think all these things have gone into really making us who we are in the enterprise. And clearly, we are a gold standard, and we have a seat at the table there.

所以，雲運營模式、產品深度，實際上，我們已經這樣做了，Anshul，你覺得可能需要 3 到 5 年嗎？因此，特別是在美國，我們在國際上還有更多工作要做，我想說我們一直在與這些客戶接觸。我記得5年前我和Ita討論的時候，我想說，她是對的，我是錯的，她說服我對企業加大投資。所以我認為所有這些事情都真正造就了我們在企業中的地位。顯然，我們是黃金標準，並且我們在其中佔有一席之地。

We'll Take our next question from David Vogt with UBS.

我們將回答瑞銀集團 (UBS) 的戴維·沃格特 (David Vogt) 提出的下一個問題。

Congratulations, Ita. I just want to go back to the point and maybe help bridge the '23 to '24 to '25 commentary that Jayshree mentioned sort of strong double-digit growth. I think in the past, you've talked about 15% growth across cycles. And I'm just trying to think through, Ita is there enough in trials and pilots in '24 to kind of get you to that kind of mid-teens growth over the next couple of years? And if not, does that mean that your enterprise business has to remain incredibly robust in '24? Upwards of high teens to low 20% growth next year.

恭喜你，伊塔。我只是想回到正題，也許可以幫助彌合 Jayshree 提到的強勁兩位數增長的“23”、“24”和“25”評論。我想在過去，您談到過跨週期增長 15%。我只是想思考一下，Ita 在 24 年進行的試驗和試點是否足以讓您在未來幾年內達到青少年中期的增長？如果不是，這是否意味著您的企業業務必須在 24 世紀保持令人難以置信的強勁勢頭？明年的增長率將達到 10% 以上到 20% 以下。

I know you're not giving guidance, but trying to kind of walk the bridge to get from where we are today to '25, where you're going to start to see more widespread AI deployments from a revenue recognition perspective.

我知道你不是在提供指導，而是試圖從我們現在的狀態邁向 25 年，從收入確認的角度來看，你將開始看到更廣泛的人工智能部署。

Now you want to go to '25 as well. I don't think we're ready to do that. That's a really good conversation for the Analyst Day, honestly. I think -- we -- obviously, we were very focused internally, as Jayshree reiterated earlier on, the business is a lot more robust with many different drivers as you go through that period, cloud will ebb and flow, but it's still a healthy business, it has been a healthy business through those cycles. So I think we've got a lot of the building blocks, but how we're going to assemble them maybe we'll stay for the Analyst Day...

現在你也想進入25歲。我認為我們還沒有準備好這樣做。老實說，對於分析師日來說，這是一次非常好的對話。我認為 - 我們 - 顯然，我們非常專注於內部，正如 Jayshree 早些時候重申的那樣，當你經歷那個時期時，由於許多不同的驅動因素，業務變得更加強勁，雲會潮起潮落，但它仍然是一個健康的業務，在這些週期中它一直是一個健康的業務。所以我認為我們已經有了很多構建模塊，但是我們將如何組裝它們也許我們會在分析師日留下來......

We'll share the LEGO plan more. But David, rest assured that we are aiming for at least double digits next year. And so we'll go from there.

我們將更多地分享樂高計劃。但大衛，請放心，我們明年的目標至少是兩位數。我們將從那裡開始。

We'll take our next question from Erik Suppiger with JMP Securities.

我們將回答 JMP 證券公司的 Erik Suppiger 提出的下一個問題。

Maybe this is for Anshul. Can you just walk us through kind of how the Cloud Titans work? We hear a lot about them buying volumes of GPUs right now. At what point do their purchasing of GPUs translate into their demand for switches? How does it work with the trials and so on and so forth?

也許這是為了安舒爾。您能否向我們介紹一下云泰坦的工作原理？我們現在聽到很多關於他們購買大量 GPU 的消息。他們對 GPU 的購買何時會轉化為對交換機的需求？它如何與試驗等一起運作？

So there is no uniform recipe in general, when they're buying GPUs (inaudible) to connect. These could be off a few quarters depending on their timing of deployments, so they build a network for (inaudible) these are very large things. Then it takes them a couple of months, sometimes a quarter or more to fine-tune the cluster and benchmark and test everything before it is actually released to production.

因此，當他們購買 GPU（聽不清）進行連接時，一般沒有統一的方法。根據部署時間，這些可能會關閉幾個季度，因此他們為（聽不清）這些非常大的事情構建了一個網絡。然後，他們需要幾個月的時間，有時是一個季度甚至更長的時間來微調集群和基準測試，並在實際發佈到生產環境之前測試所有內容。

So you can think of that sort of basis, a couple of months, couple of quarters minimum before you can get there, sometimes it adds up to about a year before you really ramp into production.

因此，你可以考慮這樣的基礎，至少需要幾個月、幾個季度才能達到目標，有時加起來需要大約一年的時間才能真正投入生產。

We'll take our next question from George Notter with Jefferies.

我們將回答喬治·諾特和杰弗里斯提出的下一個問題。

I guess I wanted to ask about your comments about 2025 participation in AI. Can you walk us through sort of the milestones that you see between now and then in terms of increasing Arista's participation? Certainly, there's new product development, there's market acceptance, I presume and then also, I assume that you participate today with inferencing applications and that's by and large done on Ethernet. I think what we're really talking about is training, correct? So any more color there would be great.

我想我想問一下你對 2025 年參與人工智能的看法。您能否向我們介紹一下您從現在到那時在增加 Arista 參與方面所看到的里程碑？當然，我認為有新產品開發，有市場接受度，然後我也假設您今天參與推理應用程序，而這基本上是在以太網上完成的。我認為我們真正談論的是培訓，對嗎？所以如果有更多的顏色那就太好了。

Yes, George. So I think you can look at 2023 as really a year of planning for AI because as I said, there's tons and tons of GPUs being purchased, and then the question is how is it being connected. So depending on whether they're small, medium or large, there are different technologies, but I'm going to stay focused on the large because that's the biggest problem. You are right to say some of them may be Ethernet or even a non-networking technology, just an IO or a bus for smaller networks.

是的，喬治。因此，我認為你可以將 2023 年視為人工智能規劃的一年，因為正如我所說，人們購買了大量的 GPU，然後問題是如何將其連接起來。因此，根據它們是小型、中型還是大型，有不同的技術，但我將繼續關注大型，因為這是最大的問題。你說的沒錯，其中一些可能是以太網，甚至是非網絡技術，只是小型網絡的 IO 或總線。

But generally speaking, we're focusing on things that are much larger than 200 or even 1,000 GPUs. So that's the first thing. So a lot of planning is going into that. And the planning basically is how do they get the GPUs, what is their application, what is the size of the cluster? What is the time? What is the large language model data sets, et cetera?

但一般來說，我們關注的是遠大於 200 個甚至 1,000 個 GPU 的事物。這是第一件事。因此，我們正在為此做很多計劃。規劃基本上是他們如何獲得 GPU、他們的應用程序是什麼、集群的大小是多少？現在幾點了？什麼是大型語言模型數據集等等？

And what is their network foundation. In some cases, where they just need to go quick and fast, as I explained before, it would not be uncommon to just bundle their GPUs with an existing technology like InfiniBand. But where they're really rolling out into 2025, they're doing more trials and pilots with us to see what the performance is, to see what the drop is, to see how many they can connect, what's the latency, what's the better entropy, what's the efficiency, et cetera. That's where we are today.

他們的網絡基礎是什麼。在某些情況下，他們只需要快速運行，正如我之前解釋的那樣，將 GPU 與 InfiniBand 等現有技術捆綁在一起並不罕見。但他們真正要在 2025 年推出的地方，他們正在與我們一起進行更多的試驗和試點，看看性能如何，下降多少，可以連接多少個，延遲是多少，更好的是什麼熵，效率是多少，等等。這就是我們今天的處境。

Now we expect next year, this will translate to some, what I call, pilots because majority of them will happen in '25, but in '24, you'll start seeing, what do you say, Anshul, maybe 4,000 to 8,000 GPUs, something in that...

現在我們預計明年，這將轉化為一些我所說的試點，因為其中大多數將在 25 年發生，但在 24 年，你會開始看到，你說什麼，Anshul，可能有 4,000 到 8,000 個 GPU , 裡面有什麼東西...

That's right. In that range.

這是正確的。在那個範圍內。

In that range, okay. 4,000 to 8,000 GPUs at about 400-gig type clusters, we will actually put some production workloads on it. So I call them smaller pilots. But the real test of why you buy these expensive GPUs is in 2025, when you want to [GAP], not just 4 to 8, but 30,000, 50,000, maybe even 100,000. This is why 2025 is so critical.

在這個範圍內就可以了4,000 到 8,000 個 GPU，大約 400 GB 類型的集群，我們實際上會在上面放置一些生產工作負載。所以我稱他們為小型飛行員。但真正考驗你為什麼要購買這些昂貴 GPU 的是 2025 年，那時你想要的 [GAP]，不僅僅是 4 到 8 個，而是 30,000、50,000，甚至可能是 100,000。這就是為什麼 2025 年如此關鍵。

And taking, testing and taking out all the kinks out of the GPUs or networks is important because your network is -- so a good network is so pivotal to getting the most out of your GPUs. If you have idling cycles on those GPUs, you wasted thousands, if not millions of dollars. And so I think the next 2 years are crucial to getting the most out of these expensive GPUs, and that's where the network really comes. Anshul?

採取、測試和消除 GPU 或網絡中的所有問題非常重要，因為您的網絡非常重要，因此良好的網絡對於充分利用 GPU 至關重要。如果這些 GPU 上有空閒週期，那麼您就浪費了數千甚至數百萬美元。因此，我認為未來兩年​​對於充分利用這些昂貴的 GPU 至關重要，而這正是網絡真正發揮作用的地方。安舒爾？

If I can add 1 more thing here. What are the milestones to get to these 2025 large scale GPU deployment. There is 1 key milestone that has nothing to do with GPUs or our switches, which is does the customer have enough power and the site ready to deploy that many megawatts or gigawatts of capacity. And as you know, getting a 1500-megawatt sites takes a couple of years, which is why this is a slower ramp. This does not certainly turn on the key and you have thousands of GPUs.

如果我可以在這裡再添加 1 件事。實現 2025 年大規模 GPU 部署的里程碑是什麼？有一個與 GPU 或我們的交換機無關的關鍵里程碑，即客戶是否有足夠的電力以及站點是否準備好部署那麼多兆瓦或千兆瓦的容量。如您所知，獲得 1500 兆瓦的站點需要幾年時間，這就是為什麼坡道速度較慢的原因。這並不一定能打開鑰匙，而且您有數千個 GPU。

Yes, really good point. Simple things like power and space are still vital.

是的，確實很好。像力量和空間這樣簡單的東西仍然至關重要。

We'll take our next question from Karl Ackerman with BNP Paribas.

我們將回答法國巴黎銀行卡爾·阿克曼的下一個問題。

Jayshree, there's been some investor concern that hyperscale customers may focus more on white box solutions for 800 gig than in the 400-gig cycle. We're aware that some of your customers continue to adopt a dual sourcing strategy, but if you could just comment on the potential for an upgrade cycle as well as reduce risk on the transition to 800 gig, it will be very helpful.

Jayshree，一些投資者擔心超大規模客戶可能會更多地關注 800 G 週期的白盒解決方案，而不是 400 G 週期的白盒解決方案。我們知道您的一些客戶繼續採用雙重採購策略，但如果您能評論一下升級週期的潛力以及降低過渡到 800 gig 的風險，這將非常有幫助。

Yes, sure. So as you're probably well aware, the white box question has remained with Arista as 1 of the most popular questions asked right in the time of our IPO, whether it's 10 gig, 40 gig, 100 gig, 400 gig or now you asked it at 800 gig. I think there will always be an element of white box if somebody is just looking to build something and throw in some quick traffic.

是的，當然。因此，您可能很清楚，白盒問題仍然是 Arista 首次公開募股時最常見的問題之一，無論是 10 gig、40 gig、100 gig、400 gig 還是現在您問的800演出。我認為，如果有人只是想構建一些東西並引入一些快速流量，那麼總會有一個白盒元素。

But for some of these most mission-critical networks it's less about the box and more about the software stack and how much performance availability, power, you really get out of this. So the cost of putting in the box if you save something -- if you even save say something, it's far dwarfed by the total OpEx you need to make that box work. So we continue to believe that we will coexist with white box in some of our Cloud Titan customers. We will continue to run both SONiC and FBOSS in the case of Microsoft and Meta along with our EOS. But at the end of the day, whether it's a white box or a blue box, it's the software stack that really win.

但對於其中一些最關鍵任務的網絡來說，它不是關於盒子，而是更多關於軟件堆棧以及您真正從中獲得的性能可用性、功率。因此，如果你節省了一些東西，那麼放入盒子的成本——如果你甚至節省了一些東西，它與讓盒子工作所需的總運營成本相形見絀。因此，我們仍然相信我們將在一些 Cloud Titan 客戶中與白盒共存。對於 Microsoft 和 Meta，我們將繼續與我們的 EOS 一起運行 SONiC 和 FBOSS。但歸根結底，無論是白盒還是藍盒，真正獲勝的是軟件堆棧。

We'll take our last question from Ben Reitzes with Melius Research.

我們將回答 Melius Research 的 Ben Reitzes 提出的最後一個問題。

Congratulations to Jayshree and team. I wanted to ask about enterprise again. I think the comments you made around Cloud Titans were all things that people were able to detect, but the enterprise just seems so much better in terms of the performance and the guide. So you mentioned that you gained share, but did the market pick up as well? And do you see that market pick up in demand in the enterprise sustaining into '24. Just kind of more color around enterprise and whether the market picked up in addition to you gaining share.

祝賀 Jayshree 和團隊。我想再問一下企業的問題。我認為您對 Cloud Titans 所做的評論都是人們能夠檢測到的，但企業在性能和指南方面似乎要好得多。您提到您的份額有所增加，但市場也有所回升嗎？您是否看到市場對企業的需求回升持續到 24 世紀？只是圍繞企業以及市場是否回升以及您獲得份額的更多色彩。

Ben, Thank you. What you mean by the market pickup? I don't follow the question.

本，謝謝你。你所說的市場回暖是什麼意思？我不明白這個問題。

Did demand pick up? Because the enterprise outperformance was quite a surprise. And clearly, the Cloud Titan commentary was subdued as everybody was able to predict after the last conference calls this week. So I mean was it all market share? Or is the market picking up? Is demand picking up across the board?

需求回升了嗎？因為企業的優異表現是相當令人意外的。顯然，雲泰坦的評論受到了抑制，因為在本週最後一次電話會議後每個人都能夠預測。所以我的意思是這都是市場份額嗎？或者市場正在回暖？需求全面回升嗎？

I would say to you that probably our enterprise demand has always been strong and not subdued far from that. However, dwarfed by the excellence of our cloud performance, you didn't notice it, and now you're noticing it.

我想說的是，我們的企業需求可能一直很強勁，而且並沒有受到太大影響。然而，與我們卓越的雲性能相比，您之前沒有註意到這一點，現在您已經註意到了。

This concludes the Arista Networks Second Quarter 2023 Earnings Call. We have posted a presentation which provides additional information on our results, which you can access on our Investors section of our website. Thank you for joining us today, and thank you for your interest in Arista.

Arista Networks 2023 年第二季度收益電話會議到此結束。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該演示文稿。感謝您今天加入我們，並感謝您對 Arista 的興趣。

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

女士們、先生們，感謝您的加入。今天的電話會議到此結束。您現在可以斷開連接。