Arista Networks Inc (ANET) 2024 Q2 法說會逐字稿

Welcome to the second quarter 2024 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. Ms. Liz Stine, Arista's Director of Investor Relations

歡迎參加 Arista Networks 2024 年第二季財務業績電話會議。 （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透過 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

Thank you, operator. Good afternoon, everyone and thank you for joining us. With me on today's call are Jayshree Ullal, Arista Networks Chairperson and Chief Executive Officer; and Chantelle Breithaupt, Arista's Chief Financial Officer. This afternoon, Arista Networks issued a press release announcing the results for its fiscal second quarter ending June 30, 2024. If you would like a copy of this release, you can access it online at our website.

謝謝你，接線生。大家下午好，感謝您加入我們。參加今天電話會議的有 Arista Networks 董事長兼執行長 Jayshree Ullal；以及 Arista 財務長 Chantelle Breithaupt。今天下午，Arista Networks 發布了一份新聞稿，宣布截至 2024 年 6 月 30 日的第二財季業績。

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 2024 fiscal year, longer-term financial outlooks for 2024 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.

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 2024 財年第三季度的財務前景、2024 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會的策略，包括人工智慧、客戶需求趨勢、供應鏈限制、零件成本、製造產量、庫存管理和我們業務的通膨壓力、交貨時間、產品創新、營運資本優化以及收購的好處我們在向SEC 提交的文件中詳細討論了風險和不確定性，特別是在我們最新的10-Q 表格和10-K 表格中，這些風險和不確定性可能導致實際結果與這些聲明中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 the 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。另請注意，我們在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 thank you, everyone, for joining us this afternoon for our second quarter 2024 earnings call. As a pure-play networking innovator with greater than $70 billion TAM ahead of us, we are pleased with our superior execution this quarter. We delivered revenues of $1.69 billion for the quarter, with a non-GAAP earnings per share of $2.10. Services and software support renewals contributed strongly at approximately 17.6% of revenue.

謝謝莉茲，謝謝大家今天下午參加我們的 2024 年第二季財報電話會議。作為一個擁有超過 700 億美元 TAM 的純粹網路創新者，我們對本季的卓越執行感到滿意。我們本季實現營收 16.9 億美元，非 GAAP 每股收益為 2.10 美元。服務和軟體支援續約貢獻強勁，約佔營收的 17.6%。

Our non-GAAP gross margin of 65.4% was influenced by outstanding manufacturing discipline realizing cost reductions. International contribution for the quarter registered at 19%, with the Americas strong at 81%. As we celebrated our 10th anniversary at the New York Stock Exchange with our near and dear investors and customers, we are now supporting over 10,000 customers with a cumulative of 100 million ports deployed worldwide.

我們的非 GAAP 毛利率為 65.4%，這得益於卓越的製造紀律實現了成本降低。本季國際貢獻率為 19%，其中美洲地區貢獻高達 81%。當我們與親愛的投資者和客戶一起慶祝在紐約證券交易所成立 10 週年時，我們現在為 10,000 多家客戶提供支持，在全球範圍內累計部署了 1 億個端口。

In June 2024, we launched Arista's Etherlink AI platforms that are ultra-Ethernet consortium compatible, validating the migration from InfiniBand to Ethernet. This is a rich portfolio of 800-gig products, not just a point product but in fact, a complete portfolio that is both NIC and GPU agnostic.

2024 年 6 月，我們推出了與超乙太網路聯盟相容的 Arista Etherlink AI 平台，驗證了從 InfiniBand 到乙太網路的遷移。這是一個豐富的 800 GB 產品組合，不僅僅是一個單點產品，而且實際上是一個與 NIC 和 GPU 無關的完整產品組合。

The AI portfolio consists of the 7060X [XAID] switch that supports 64,800 gig or 128 400-gig Ethernet ports with a capacity of 51 terabits per second. The 7800 R4 AI Spine is our fourth generation of Arista's flagship 7800, offering 100% non-blocking throughput with a proven virtual output queuing architecture. The 7800 R4 supports up to 460 terabits in a single chassis, corresponding to 57,6800 gigabit Ethernet ports or 1,152 400 gigabit port density.

AI 產品組合包括 7060X [XAID] 交換機，支援 64,800 gig 或 128,400 gig 乙太網路端口，容量為每秒 51 太比特。 7800 R4 AI Spine 是我們第四代 Arista 旗艦 7800，透過經過驗證的虛擬輸出排隊架構提供 100% 無阻塞吞吐量。 7800 R4 在單一機箱中支援高達 460 太比特，相當於 57,6800 個千兆乙太網路連接埠或 1,152 個 400 千兆埠密度。

The 7700 R4 AI distributed Etherlink Switch is a unique product offering with a massively parallel distributed scheduling and congestion-free traffic spraying fabric. The 7700 represents the first in a new series of ultra-scalable intelligent distributed systems that can deliver the highest consistent throughput for very large AI clusters.

7700 R4 AI 分散式 Etherlink 交換器是一款獨特的產品，具有大規模平行分散式調度和無擁塞流量噴射結構。 7700 是新系列超可擴展智慧分散式系統中的第一個，可為超大型人工智慧叢集提供最高的一致吞吐量。

Let's just say once again, Arista is making Ethernet great. First, we began this journey with low latency in 2009-time frame. And then there was cloud and routing in the 2015 era, followed by WAN and Campus in the 2020 era, and now AI in our fifth generation in 2025 era. Our Etherlink portfolio is in the midst of trials and can support up to 100,000 XTUs in a two-tier design built on our proven and differentiated extensible OS. We are quite pleased with our progress across Cloud, AI, Campus, and Enterprise customers.

讓我們再說一遍，Arista 正在讓乙太網路變得偉大。首先，我們在 2009 年的時間範圍內以低延遲開始了這趟旅程。接著是 2015 年時代的雲端和路由，接著是 2020 年時代的 WAN 和園區，現在是 2025 年時代的第五代人工智慧。我們的 Etherlink 產品組合正處於試驗階段，可在基於我們經過驗證的差異化可擴展作業系統構建的兩層設計中支援多達 100,000 個 XTU。我們對雲端、人工智慧、園區和企業客戶的進展感到非常滿意。

I would like to invite Ashwin Kohli, our newly appointed Chief Customer Officer, to describe our diverse set of customer wins in 2024. Ashwin, over to you.

我想邀請我們新任命的首席客戶長 Ashwin Kohli 來描述我們在 2024 年贏得的多元化客戶。

Many thanks, Jayshree. Thank you for inviting me to my first earnings call. Let me walk everybody through the four global customer wins. The first example is an AI enterprise win with a large tier two cloud provider which has been heavily investing in GPUs to increase their revenue and penetrate new markets. Their senior leadership wanted to be less reliant on traditional core services and work with Arista on new, reliable, and scalable Ethernet fabrics. Their environment consisted of new NVIDIA H100s. However, it was being connected to their legacy networking vendor which resulted in them having significant performance and scale issues with their AI applications.

非常感謝，傑什裡。感謝您邀請我參加我的第一次財報電話會議。讓我向大家介紹四個全球客戶的勝利。第一個例子是人工智慧企業贏得了一家大型二級雲端供應商，該供應商一直在 GPU 上進行大量投資，以增加收入並滲透新市場。他們的高層領導希望減少對傳統核心服務的依賴，並與 Arista 合作開發新的、可靠的、可擴展的乙太網路結構。他們的環境由新的 NVIDIA H100 組成。然而，它正在連接到他們的傳統網路供應商，這導致他們的人工智慧應用程式出現嚴重的效能和規模問題。

The goal of our customer engagement was to refresh the front-end network to alleviate these issues. Our technical partnership resulted in deploying a two-step migration path to alleviate the current issues using 400-gig 7080s, eventually migrating them to an 800-gig AI Ethernet link in the future. The second next win highlights our adjacencies in both campus and routing. This customer is a large data center customer which has deployed us for almost a decade.

我們客戶參與的目標是更新前端網路以緩解這些問題。我們的技術合作夥伴關係導致部署了兩步驟遷移路徑，以緩解目前使用 400 GB 7080 的問題，最終將它們遷移到未來的 800 GB AI 乙太網路連結。接下來的第二場勝利凸顯了我們在校園和路線上的鄰近性。該客戶是一家大型資料中心客戶，已經部署我們近十年了。

The team was able to leverage that success to help them demonstrate our value for the global campus network which spans across hundreds and thousands of square feet globally. The customer had considerable dissatisfaction with a current vendor which led them to a last-minute request to create a design for their new corporate headquarters. Given only three months' window, Arista leveraged the existing data center design and adapted this to the campus topology with a digital twin of the design in minimal time. CloudVision was used for visibility and life cycle management.

該團隊能夠利用這一成功來幫助他們展示我們對全球校園網路的價值，該網路覆蓋全球數百和數千平方英尺。客戶對目前的供應商非常不滿意，導致他們在最後一刻要求為其新的公司總部進行設計。由於只有三個月的時間，Arista 利用現有的資料中心設計，並在最短的時間內透過設計的數位孿生將其適應園區拓撲。 CloudVision 用於可見性和生命週期管理。

The same customer once again was struggling with extreme complexity in their routing environment, as well with multiple parallel backbones and numerous technical complexities. Arista simplified their routing network by removing legacy routers, increasing bandwidth, and moving to a simple fixed form factor platform router. The core spine leverages the same US software, streamlining their certification procedures and instilling confidence in the stability of the products. Once again, CloudVision came to the rescue.

同一客戶再次面臨路由環境的極端複雜性、多個平行骨幹網路和眾多技術複雜性的困擾。 Arista 透過移除舊式路由器、增加頻寬以及轉向簡單的固定外形平台路由器來簡化其路由網路。核心骨幹利用相同的美國軟體，簡化了認證程序，並增強了對產品穩定性的信心。 CloudVision 再次拯救了我們。

The third example is the next win in the international arena of a large automotive manufacturer that due to its size and scale, previously had more than three different vendors in the data center which created a very high level of complexity both from a technical and also from an operational perspective. The customer's key priority was to achieve a higher level of consistency across their infrastructure which is now being delivered via a single US binary image and CloudVision solution from Arista. Their next top priority was to use automation, consistent end-to-end provisioning, and visibility which can be delivered by our CloudVision platform.

第三個例子是一家大型汽車製造商在國際舞台上的下一次勝利，由於其規模和規模，該製造商之前在數據中心擁有三個以上不同的供應商，這從技術和方面都造成了非常高的複雜性。客戶的首要任務是在其基礎設施中實現更高層級的一致性，該基礎設施現在透過單一 US 二進位映像和 Arista 的 CloudVision 解決方案進行交付。他們的下一個首要任務是使用我們的 CloudVision 平台可以提供的自動化、一致的端對端配置和可見性。

This simplification has led the customer to adopt Arista beyond the data center and extend the Arista solution into the routing component of the infrastructure which included our 7500 R3 spine platforms. This once again shows a very clear example of the same Arista 1 EOS and One CloudVision solution delivering multiple use cases.

這種簡化促使客戶在資料中心之外採用 Arista，並將 Arista 解決方案擴展到基礎設施的路由元件中，其中包括我們的 7500 R3 主幹平台。這再次展示了同一 Arista 1 EOS 和 One CloudVision 解決方案提供多個用例的非常清晰的範例。

And Jayshree, this last win demonstrates our strength in service provider routing space. We have been at the forefront of providing innovative solutions for service provider customers for many years. As we all know, we are in the midst of an optical and packet integration. As a result, our routers support industry-leading dense 400-gig [ZR Plus] coherent pluggable optics.

Jayshree，最後的勝利證明了我們在服務供應商路由領域的實力。多年來，我們一直處於為服務提供者客戶提供創新解決方案的前沿。眾所周知，我們正處於光學和分組整合之中。因此，我們的路由器支援業界領先的密集 400 G [ZR Plus] 相干可插拔光學元件。

In this service provider customer example, we provided a full turnkey solution, including our popular 7280 R3 routers and our newly announced AWE 7250 WAN router as a BGP route reflector along with CloudVision and professional services. We showcased our strength in supporting a wide variety of these pluggable coherent optics, along with our SR and EVP and solutions which allowed this middle mine service provider customer to build out a 400-gig state-wide backbone at cloud scale economics.

在這個服務提供者客戶範例中，我們提供了完整的交鑰匙解決方案，包括我們廣受歡迎的 7280 R3 路由器和新發布的 AWE 7250 WAN 路由器（作為 BGP 路由反射器）以及 CloudVision 和專業服務。我們展示了我們在支援各種可插拔相干光學器件方面的實力，以及我們的SR 和EVP 以及解決方案，這些解決方案使這家中礦服務提供商客戶能夠以雲規模經濟方式構建400 GB 的全州骨幹網路。

Thanks, Jayshree and back over to you.

謝謝，Jayshree，現在回到你身上。

Well, thank you, Ashwin and congratulations. Hot off the press is our new and highest Net Promoter Score of 87 which translates to 95%. Hats off to your team for achieving that. It's so exciting to see the momentum of our enterprise sector. As a matter of fact, as we speak, we are powering the broadcasters of the Olympics, symbolic of our commitment to the media and entertainment vertical.

好吧，謝謝你，阿什溫，恭喜你。我們最新的最高淨推薦值是 87 分，即 95%。向您的團隊致敬，實現這一目標。看到我們企業部門的發展勢頭真是令人興奮。事實上，正如我們所說，我們正在為奧運轉播商提供動力，這象徵著我們對媒體和娛樂垂直領域的承諾。

And so it's fair to say that so far in 2024, it's proving to be better than we expected because of our position in the marketplace and because of our best-of-breed platform for mission-critical networking. I am reminded of the 1980s when [San] was famous for declaring the network is the computer. Well, 40 years later, we're seeing the same cycle come true again with the collective nature of AI training models mandating a lossless highly available network to seamlessly connect every AI accelerator in the cluster to one another for peak job completion times.

因此，可以公平地說，到 2024 年為止，由於我們在市場中的地位以及我們用於關鍵任務網絡的最佳平台，事實證明它比我們預期的要好。我想起了 20 世紀 80 年代，當時 [San] 因宣稱網路就是電腦而聞名。 40 年後，我們看到同樣的循環再次發生，人工智慧訓練模型的集體性質要求無損的高可用網路將集群中的每個人工智慧加速器無縫連接到另一個，以實現高峰作業完成時間。

Our AI networks also connect trained models to end users and other multi-tenant systems in the front-end data center, such as storage, enabling the AI system to become more than the sum of its parts. We believe data centers are evolving to holistic AI centers, where the network is the epicenter of AI management for acceleration of applications, compute, storage, and the wide area network.

我們的人工智慧網路還將訓練有素的模型連接到最終用戶和前端資料中心的其他多租戶系統（例如儲存），使人工智慧系統不僅僅是其各個部分的總和。我們相信資料中心正在發展為整體人工智慧中心，其中網路是人工智慧管理的中心，用於加速應用程式、運算、儲存和廣域網路。

AI centers need a foundational data architecture to deal with the multimodal AI data sets that run on our differentiated EOS network data systems. Arista showcased the technology demonstration of our EOS-based AI agent that can directly connect on the NIC itself or alternatively, inside the host. By connecting into adjacent Arista switches to continuously keep up with the current state, send telemetry or receive configuration updates, we have demonstrated the network working holistically with network interface cards such as NVIDIA BlueField and we expect to add more NICs in the future.

AI 中心需要一個基礎資料架構來處理在我們差異化的 EOS 網路資料系統上運行的多模式 AI 資料集。 Arista 展示了我們基於 EOS 的 AI 代理程式的技術演示，該代理可以直接連接到 NIC 本身或主機內部。透過連接到相鄰的 Arista 交換器以持續跟上當前狀態、發送遙測或接收配置更新，我們已經演示了網路與 NVIDIA BlueField 等網路介面卡的整體工作，並且我們預計將來會添加更多 NIC。

Well, I think the Arista purpose and vision is clearly driving our customer traction. Our networking platforms are becoming the epicenter of all digital transactions, be they campus center, data center, plan centers or AI centers.

嗯，我認為 Arista 的目的和願景顯然正在推動我們的客戶吸引力。我們的網路平台正在成為所有數位交易的中心，無論是校園中心、資料中心、計畫中心或人工智慧中心。

And with that, I'd like to turn it over to Chantelle, our Chief Financial Officer, to review the financial specifics and tell us more. Over to you, Chantelle.

接下來，我想將其交給我們的財務長 Chantelle，以審查財務細節並告訴我們更多。交給你了，尚特爾。

Thanks, Jayshree. It really was great to see everyone at the New York Stock Exchange IPO celebration event. Now turning to the numbers. This analysis of our Q2 results and our guidance for Q3 is based on non-GAAP and excludes all non-cash stock-based compensation impacts, certain acquisition-related charges, and other non-recurring items. A full reconciliation of our selected GAAP to non-GAAP results is provided in our earnings release.

謝謝，傑什裡。很高興在紐約證券交易所首次公開募股慶祝活動上見到大家。現在轉向數字。我們對第二季業績的分析和第三季的指導是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 績效的全面對帳。

Total revenues in Q2 were $1.69 billion, up 15.9% year-over-year, significantly above the upper end of our guidance of $1.62 billion to $1.65 billion. Growth was delivered across all three sectors of cloud, enterprise, and providers. Services and subscription software contributed approximately 17.6% of revenue in the quarter, up from 16.9% in Q1. International revenues for the quarter came in at $316 million or 18.7% of total revenue, down from 20.1% in the prior quarter. This quarter-over-quarter decrease was driven by a relatively weaker performance in our APJ region.

第二季總營收為 16.9 億美元，年增 15.9%，顯著高於我們 16.2 億至 16.5 億美元指引上限。雲端、企業和供應商這三個領域都實現了成長。服務和訂閱軟體約佔本季營收的 17.6%，高於第一季的 16.9%。該季度國際營收為 3.16 億美元，佔總營收的 18.7%，低於上一季的 20.1%。這一季度環比下降是由於我們亞太及日本地區的業績相對較弱所致。

The overall gross margin in Q2 was 65.4%, above our guidance of 64%, up from 64.2% last quarter and up from 61.3% in the prior year quarter. The year-over-year gross margin improvement was primarily driven by a reduction in inventory-related reserves. Operating expenses for the quarter were $319.8 million or 18.9% of revenue, up from last quarter at $265 million.

第二季的整體毛利率為 65.4%，高於我們 64% 的指引，高於上季的 64.2%，也高於去年同期的 61.3%。毛利率年改善主要是由於庫存相關儲備的減少。本季營運費用為 3.198 億美元，佔營收的 18.9%，高於上季的 2.65 億美元。

R&D spending came in at $216.7 million or 12.8% of revenue, up from $164.6 million in the last quarter. This primarily reflected increased headcount and higher new product introduction costs in the period. Sales and marketing expense was $85.1 million or 5% of revenue compared to $83.7 million last quarter, with a double-digit percentage increase of headcount in the quarter versus the prior year.

研發支出為 2.167 億美元，佔營收的 12.8%，高於上一季的 1.646 億美元。這主要反映了這段期間員工人數的增加和新產品推出成本的增加。銷售和行銷費用為 8,510 萬美元，佔營收的 5%，而上季為 8,370 萬美元，本季員工人數比上年同期成長了兩位數百分比。

Our G&A costs came in at $18 million or 1.1% of revenue, up from last quarter at $16.7 million. Our operating income for the quarter was $785.6 million or 46.5% of revenue. Other income and expense for the quarter was a favorable $70.9 million and our effective tax rate was 21.5%. This resulted in net income for the quarter of $672.6 million or 39.8% of revenue. Our diluted share number was 319.9 million shares, resulting in a diluted earnings per share number for the quarter of $2.10, up 32.9% from the prior year.

我們的一般管理費用為 1,800 萬美元，佔營收的 1.1%，高於上季的 1,670 萬美元。我們本季的營業收入為 7.856 億美元，佔營收的 46.5%。本季的其他收入和支出為 7,090 萬美元，有效稅率為 21.5%。這使得該季度的淨利潤達到 6.726 億美元，佔營收的 39.8%。我們的稀釋後股票數量為 3.199 億股，導致本季稀釋後每股收益為 2.10 美元，比上年增長 32.9%。

Turning to the balance sheet. Cash, cash equivalents, and investments ended the quarter at $6.3 billion. In the quarter, we repurchased $172 million of our common stock at an average price of $282.20 per share. Of the $172 million, $82 million was repurchased under our prior $1 billion authorization which is now complete and the remaining $90 million was purchased under the new program of $1.2 billion approved in May 2024. The actual timing and amount of future repurchases will be depended upon market and business conditions, stock price, and other factors.

轉向資產負債表。本季末現金、現金等價物及投資為 63 億美元。本季度，我們以每股 282.20 美元的平均價格回購了價值 1.72 億美元的普通股。在這1.72 億美元中，8,200 萬美元是根據我們先前已完成的10 億美元授權回購的，其餘9,000 萬美元是根據2024 年5 月批准的12 億美元新計劃購買的。時間和金額將取決於市場和商業狀況、股票價格和其他因素。

Now turning to operating cash performance for the second quarter. We generated $989 million of cash from operations in the period, reflecting strong earnings performance with a favorable contribution from working capital. DSO came in at 66 days, up from 62 days in Q1, impacted by large service renewals at the end of the quarter.

現在轉向第二季的營運現金表現。在此期間，我們從營運中產生了 9.89 億美元的現金，反映出強勁的獲利表現以及營運資本的有利貢獻。受季末大量服務續約的影響，DSO 的週期為 66 天，高於第一季的 62 天。

Inventory turns were 1.1 times, up from 1 turn last quarter. Inventory decreased to $1.9 billion in the quarter, down from $2 billion in the prior period, reflecting a reduction in our raw materials inventory. Our purchase commitments and inventory at end of the quarter totaled $4 billion, up from $3.5 billion at the end of Q1. We expect this number to stabilize as supplier lead times improve but we'll continue to have some variability in future quarters as a reflection of demand for our new product introductions.

庫存週轉率為 1.1 倍，高於上季的 1 倍。本季庫存從上一季的 20 億美元降至 19 億美元，反映我們原材料庫存的減少。截至本季末，我們的採購承諾和庫存總額為 40 億美元，高於第一季末的 35 億美元。我們預計隨著供應商交貨時間的延長，這一數字將穩定下來，但在未來幾個季度，我們將繼續出現一些變化，以反映對我們新產品推出的需求。

Our total deferred revenue balance was $2.1 billion, up from $1.7 billion in Q1. 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. Our product deferred revenue increased approximately $253 million versus last quarter.

我們的遞延收入餘額總額為 21 億美元，高於第一季的 17 億美元。大部分遞延收入餘額與服務相關，並與服務合約的時間和期限直接相關，而服務合約的時間和期限可能隨季度而變化。我們的產品遞延收入比上季增加了約 2.53 億美元。

As a reminder, we expect 2024 to be a year of new product introductions, new customers and expanded use cases. These trends may result in increased customer trials and contracts with customer-specific acceptance clauses and increase the variability and magnitude of our product deferred revenue balances. Accounts payable days was 46 days, up from 36 days in Q1, reflecting the timing of inventory receipts and payments. Capital expenditures for the quarter were $3.2 million.

提醒一下，我們預計 2024 年將是新產品推出、新客戶和擴大用例的一年。這些趨勢可能會導致客戶試驗和帶有客戶特定驗收條款的合約增加，並增加我們產品遞延收入餘額的可變性和規模。應付帳款天數為 46 天，高於第一季的 36 天，反映了庫存收付的時間。該季度的資本支出為 320 萬美元。

As we enter the second half of fiscal year 2024, we are encouraged by the momentum that we see in the market. Our existing innovative product portfolio, along with our new product introductions, are well suited for our Cloud, AI enterprise and providers customers. We will continue to invest in our R&D and go-to-market through both people and processes. With all of this as a backdrop for fiscal year '24, our revenue growth guidance is now at least 14%. Gross margin outlook remains at 62% to 64%, and operating margin is now raised to approximately 44%.

隨著我們進入 2024 財年下半年，我們對市場的勢頭感到鼓舞。我們現有的創新產品組合以及我們推出的新產品非常適合我們的雲端、人工智慧企業和供應商客戶。我們將繼續透過人員和流程投資於研發和上市。以所有這些作為 24 財年的背景，我們的收入成長指引目前至少為 14%。毛利率前景維持在 62% 至 64%，營業利潤率現上調至 44% 左右。

Our guidance for the third quarter based on non-GAAP results and excluding any noncash stock-based compensation impacts and other nonrecurring items is as follows. Revenues of approximately $1.72 billion to $1.75 billion, gross margin of approximately 63% to 64% and operating margin at approximately 44%. Our effective tax rate is expected to be approximately 21.5%, with diluted shares of approximately 321 million shares.

我們基於非公認會計準則績效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指引如下。營收約17.2億美元至17.5億美元，毛利率約63%至64%，營業利潤率約44%。我們的有效稅率預計約為21.5%，稀釋後股份約為3.21億股。

With that, I now turn the call back to Liz. Liz?

說完，我現在把電話轉回給莉茲。麗茲？

Thank you, Chantelle. We will now move to the Q&A portion of the Arista earnings call. To allow for greater participation, I'd like to request that everyone please limit themselves to a single question. Thank you for your understanding. Operator, take it away.

謝謝你，尚特爾。我們現在將進入 Arista 財報電話會議的問答部分。為了讓更多人參與，我想請大家只回答一個問題。感謝您的體諒。接線員，把它拿走。

(Operator Instructions) Michael Ng, Goldman Sachs.

（操作員指令）Michael Ng，高盛。

As we head into next-generation GPUs with Blackwell and the MVL3672, there's been some discussion about whether the systems may be less modular in some of its components, particularly for back-end networking. I was just wondering if you could share your views and provide some clarity on the vendor modularity of Blackwell, particularly as it relates to networking? And how that might affect Arista's positioning over the next couple of years, if at all?

當我們進入 Blackwell 和 MVL3672 的下一代 GPU 時，人們開始討論該系統的某些組件是否模組化程度較低，尤其是後端網路。我只是想知道您是否可以分享您的觀點並澄清 Blackwell 的供應商模組化，特別是與網路相關的情況？如果有的話，這會如何影響 Arista 在未來幾年的定位？

Sure. Michael, I think as the GPUs get faster and faster, obviously, the dependency on the network for higher throughput is clearly related. And therefore, our timely introduction of these 800-gig products will be required, especially more for Blackwell. In terms of its connection and modularity with NVLink and 72 port, there's always been a market for what I call scale up, where you're connecting the GPUs internally in a server and the density of those GPUs connecting in the past has been more PCIe and cell and now NVLink and there's a new consortium now for called UAL that's going to specify that, I believe, eventually, by the way, even there, Ethernet will win.

當然。 Michael，我認為隨著 GPU 變得越來越快，顯然，對網路更高吞吐量的依賴顯然是相關的。因此，我們需要及時推出這些 800G 產品，尤其是 Blackwell。就其與 NVLink 和 72 連接埠的連接和模組化而言，一直存在我所說的擴展市場，即在伺服器內部連接 GPU，而過去連接的 GPU 的密度更多是 PCIe和單元，現在是NVLink ，現在有一個名為UAL 的新聯盟，該聯盟將明確指出，我相信，最終，順便說一句，即使在那裡，以太網也會獲勝。

And so that density depends more on the AI accelerator and how they choose to connect. As I've often said, it's more a bus technology. So eventually, where Arista plays strongly both on the front end and back end is on the scale out, not on the scale up. So independent of the modularity, whether it's a wrap-based design, a chassis or multiple RU, the ports have to come out Ethernet and those Ethernet ports will connect into scale-out switches from Arista.

因此，密度更多地取決於人工智慧加速器以及它們選擇的連接方式。正如我經常說的，它更像是一種總線技術。所以最終，Arista 在前端和後端都表現出色的地方是向外擴展，而不是向上擴展。因此，與模組化無關，無論是基於環繞式設計、機箱還是多個 RU，連接埠都必須來自以太網，而這些乙太網路連接埠將連接到 Arista 的橫向擴展交換器。

Aaron Rakers, Wells Fargo.

亞倫·雷克斯，富國銀行。

Yeah. Thank you for taking the question. I guess the metric that stands out to me the most is the deferred revenue balance up. Looks like 95% in total year-on-year. And it looks like you -- based on what you disclosed, it looks like you're now at about $520 million of product deferred. On the product deferred line, can you help us appreciate how do we think about that number? Is that related to these AI opportunities? Just the cadence of how we should expect the revenue recognition from that again being -- it looks like almost 60% above what was previously the peak level of product deferred.

是的。感謝您提出問題。我想對我來說最突出的指標是遞延收入餘額。看起來比去年同期總計95%。根據您披露的信息，您現在似乎推遲了約 5.2 億美元的產品。關於產品延期生產線，您能否幫助我們了解我們如何看待這個數字？這與這些人工智慧機會有關嗎？只是我們應該如何預期收入確認的節奏——看起來比之前推遲的產品高峰水平高出近 60%。

Yeah, no, good question, Aaron. Let me start generically and of course, I'll hand to my CFO, Chantelle here. Product deferred sort of ebbs and flows. It goes in, it comes out. And it's particularly high when we have a lot of new product and new use cases. But it's not extraordinary to see us running a higher product deferred in one quarter or in one year and then dipping down. So the long term is consistent, the short term can ebb and flow. Do you want to say a few words on that?

是的，不，好問題，亞倫。讓我從一般性的角度開始，當然，我將請我的財務長 Chantelle 負責。產品延遲了潮起潮落。它進去，它出來。當我們有許多新產品和新用例時，這個比例尤其高。但看到我們運行較高的產品推遲一個季度或一年然後下降，這並不奇怪。所以長期是一致的，短期是可以潮起潮落的。您想就此說幾句話嗎？

Yeah, thank you, Jayshree. The only thing I would add to that is that the deferred balance is always a mix of customers and use cases. So I wouldn't rotate on any one particular intersection of those. It really is a mix of those combined.

是的，謝謝你，傑什裡。我唯一要補充的是，遞延餘額始終是客戶和用例的混合。所以我不會在其中任何一個特定的交叉點上旋轉。它確實是這些的混合體。

Thank you.

謝謝。

Thanks, Aaron.

謝謝，亞倫。

Meta Marshall, Morgan Stanley.

梅塔‧馬歇爾，摩根士丹利。

Great, Thanks. Jayshree, last quarter, you had mentioned kind of four major AI trials that you guys were a part of. Obviously, you guys -- or Ashwin listed off the list of kind of the four wins that you had during the quarter. Just trying to get a sense of maybe if that tier two win was a part of those AI trials? Or just any update on where those four AI trials stand or what the current count of AI trials is currently?

萬分感謝。 Jayshree，上個季度，您提到了您參與的四個主要人工智慧試驗。顯然，你們——或者阿什溫列出了你們在本季取得的四場勝利的清單。只是想了解二級勝利是否是這些人工智慧試驗的一部分？還是只是關於這四項人工智慧試驗的最新進展，或是目前人工智慧試驗的數量是多少？

Yeah. No, I'm going to speak to it and I want to turn it over to Ashwin since he's here with us. First of all, all four trials are largely in what I call Cloud and AI Titans. A couple of them could be classified as specialty providers as well, depending on how they end up. But those 4 are going very well. They started out as largely trials. They're now moving into pilots this year, most of them.

是的。不，我要和它說話，我想把它交給阿什溫，因為他和我們在一起。首先，所有四項試驗主要是在我所說的雲和人工智慧泰坦。其中一些也可以被歸類為專業提供者，具體取決於他們的最終結果。但這 4 個人進展得非常順利。他們一開始主要是試驗。他們中的大多數人今年將進入試點階段。

And with any luck next year, maybe we won't be saying four to five and we could say five out of five . That's my hope, anyway. But in addition to that, we have tens of smaller customers who are starting to do AI pilots. And Ashwin, you've been smack in the middle of a lot of those, maybe you want to speak to that a little bit?

如果明年運氣好的話，也許我們不會說四對五，我們可以說五對五。無論如何，這就是我的希望。但除此之外，我們還有數十個較小的客戶開始進行人工智慧試點。阿什溫（Ashwin），你已經經歷了很多這樣的事情，也許你想談談這一點？

Yeah. Absolutely, Jayshree. Meta, so I just wanted to clarify the example that I shared with you was more around a tier two cloud provider. And if I take a step back, the types of conversations my team is having with customers is either around general-purpose enterprise customers or it's around tier two cloud providers, right which are different to the ones Jayshree's referring to.

是的。絕對是，傑什裡。 Meta，所以我只是想澄清一下我與您分享的範例更多是圍繞二級雲端提供者。如果我退後一步，我的團隊與客戶進行的對話類型要么圍繞通用企業客戶，要么圍繞二級雲端供應商，這與 Jayshree 所指的不同。

Yeah. And they tend to be early adopters.

是的。他們往往是早期採用者。

Absolutely.

絕對地。

They're about to build an AI cluster. It's a reasonably small size, not classified in thousands or 10,000s. But you've got to start somewhere. So they started about a few hundred GPUs, would you say?

他們即將建立一個人工智慧集群。它的尺寸相當小，不以數千或數萬為單位進行分類。但你必須從某個地方開始。所以他們開始使用大約幾百個 GPU，你覺得是這樣嗎？

Absolutely, yes.

絕對沒錯。

Great, thank you.

太好了謝謝。

Thanks, Meta.

謝謝，梅塔。

Atif Malik, Citi.

阿蒂夫·馬利克，花旗銀行。

Jayshree, you mentioned a $70 billion TAM number in your prepared remarks. Can you help us understand what is in that TAM? And how does that relate to the $750 million AI networking revenue number you have provided for next year?

Jayshree，您在準備好的演講中提到了 700 億美元的 TAM 數字。您能幫助我們了解 TAM 中的內容嗎？這與您提供的明年 7.5 億美元的人工智慧網路收入數字有何關係？

Yeah, I get asked that question a lot. First of all, the TAM is far greater than the $750 million we've signed up for. And remember, that's early years. But that can consist of our data center TAM. Our AI TAM which we count in a more narrow fashion as how much of InfiniBand will move to Ethernet on the back end. We don't count the AI TAM that's already in the front end which is part and parcel of our data center. And then obviously, there's a campus TAM which is very, very big. It's north of $10 billion. And then there's the wide area in routing. So these four are the building blocks that I call the campus center, data center, AI center and ran center. And then laid upon that is some very nice software.

是的，我常被問到這個問題。首先，TAM 遠遠大於我們簽署的 7.5 億美元。請記住，那是早年的事。但這可以包括我們的資料中心 TAM。我們的 AI TAM，我們以更狹義的方式計算，即有多少 InfiniBand 將遷移到後端的乙太網路。我們不計算前端中已經存在的 AI TAM，它是我們資料中心的重要組成部分。顯然，校園 TAM 非常非常大。其價值超過 100 億美元。然後是路由方面的廣泛區域。所以這四個是我稱之為校園中心、資料中心、AI中心和跑步中心的構建塊。然後是一些非常好的軟體。

If you saw, we had a nice bump in Software and Service renewals this quarter which would be largely centered around CloudVision observability and security. So I would say these are the four building blocks and then the three software components on top of it. Not -- of course, not to forget the services and support that are part of these TAMs as well.

如果您看到了，本季我們在軟體和服務更新方面取得了良好的進展，這主要集中在 CloudVision 可觀察性和安全性方面。所以我想說，這是四個構建塊，然後是其上的三個軟體組件。當然，不要忘記這些 TAM 的服務和支援也是如此。

Thank you, Atif.

謝謝你，阿提夫。

Thank you, Atif.

謝謝你，阿提夫。

Antoine Chkaiban, New Street Research.

Antoine Chkaiban，新街研究。

I'd like actually to ask about the non-AI component of your Cloud and AI segment. What can you tell us about how investments in traditional infrastructure are trending? Because we heard from other vendors that inventory digestion is now easing. So are you seeing that too?

我實際上想問一下你們的雲端和人工智慧領域的非人工智慧部分。您能為我們介紹一下傳統基礎建設投資的趨勢嗎？因為我們從其他供應商聽說庫存消化現在正在緩解。那你也看到了嗎？

We saw that last year. We saw that there was a lot of pivot going on from the classic cloud, as I like to call it, to the AI in terms of spend. And we continue to see favorable preferences to AI spend in many of our large cloud customers. Having said that, at the same time, simultaneously, we are going through a refresh cycle where many of these customers are moving from 100 to 200 or 200 to 400 gig. So while we think AI will grow faster than cloud, we're betting on classic cloud continuing to be an important aspect of our contributions.

我們去年就看到了這一點。我們看到，在支出方面，從經典雲端（我喜歡稱之為雲端）到人工智慧發生了很多轉變。我們繼續看到許多大型雲端客戶對人工智慧支出的青睞。話雖如此，與此同時，我們正在經歷一個更新周期，其中許多客戶正在從 100 到 200 或 200 到 400 演出。因此，雖然我們認為人工智慧將比雲端成長得更快，但我們押注經典雲將繼續成為我們貢獻的重要方面。

Amit Daryanani, Evercore.

阿米特·達裡亞納尼（Amit Daryanani），Evercore。

I guess just a question related to the updated '24 guide and I realize it's at least 14% growth for the year. But your compares actually get much easier in the back half of the year versus what you've had in the first half. So just from an H2 versus H1 basis, is it reasonable to think that growth can actually accelerate for you in the back half of the year? And if it doesn't, why do you think it does not accelerate in the back half?

我想這只是一個與更新的 24 指南相關的問題，我意識到今年至少有 14% 的成長。但與上半年相比，下半年的比較其實要容易得多。因此，僅從下半年與上半年的情況來看，認為下半年成長實際上會加速是否合理？如果沒有，你認為為什麼它不會在後半段加速？

Yes. I think that Jayshree and I came to this guide of at least 14% because we do see multiple scenarios as we go through the second half of the year. We do expect to continue to see some acceleration in growth but I would say that from the perspective of the forward scenarios, we are comfortable with at least 14% and we'll come back in Q3 and see where we were able to guide for the rest of the year.

是的。我認為 Jayshree 和我至少有 14% 的人閱讀了這份指南，因為我們在下半年確實看到了多種情況。我們確實預計成長會繼續加速，但我想說，從未來情景的角度來看，我們對至少 14% 感到滿意，我們將在第三季回來看看我們能夠在哪裡指導今年剩下的時間。

Look at us. We're known to be traditionally conservative. We went from 10 to 12, 12 to 14. And now my CFO says at least 14. So let's see how the second half goes. But I think at this point, you should think we are confident about second half and we're getting increasingly confident about 2025.

看著我們。眾所周知，我們傳統上是保守的。我們從 10 到 12，從 12 到 14。但我認為在這一點上，你應該認為我們對下半年充滿信心，並且我們對 2025 年越來越有信心。

Perfect, thank you.

完美，謝謝。

Thank you.

謝謝。

Tal Liani, Bank of America.

塔爾·利亞尼，美國銀行。

(inaudible)

（聽不清楚）

Tal, you there?

塔爾，你在嗎？

Yes. Can you hear me?

是的。你聽得到我嗎？

Yes, yes.

是的是的。

Okay. My question is more in line with kind of the previous question. I calculated the implied growth in the fourth quarter. And I'm getting a much lower growth in the fourth quarter than what we've seen this quarter or next quarter. And I'm wondering if it's -- you said conservatism in the last answer. And the question is, is it just conservatism? Or is there anything special with the fourth quarter that the implied growth is only 9% year-over-year? And it goes across everything. It goes -- the implied growth, revenue growth is lower, the gross margin is lower. So some of it is conservatism but is there anything special with 4Q timing of recognition or seasonality or anything that drives a lower implied guidance?

好的。我的問題比較符合上一個問題。我計算了第四季的隱含成長。第四季的成長速度比本季或下季要低得多。我想知道你在上一個答案中是否提到了保守主義。問題是，這只是保守主義嗎？或第四季有什麼特別之處，隱含年增僅9%？它涵蓋一切。事實是──隱含成長、收入成長較低，毛利率較低。因此，其中一些是保守主義，但第四季度的認可時間或季節性或任何導致較低隱含指導的因素有什麼特別之處嗎？

So Tal, if you go back to November Analyst Day, to call out gross margin lower, I would disagree because I think we're just blowing it off our guide. Our guide was 63 to 64. And we have now shown two quarters of amazing gross margin. Hats off to my Mike Capas and John McCool, Alex and the entire team for really working on disciplined cost reductions. But yet, if you look at mix, in general, the costs and et cetera, I would say you should plan on our gross margins being as we projected. They're not lower. I think we just did exceptionally well the last two quarters, so it's relatively lower. That's the first thing.

所以，塔爾，如果你回到 11 月分析師日，指出毛利率下降，我會不同意，因為我認為我們只是把它從我們的指南中剔除。我們的指引值為 63 至 64。向我的邁克·卡帕斯 (Mike Capas)、約翰·麥庫爾 (John McCool)、亞歷克斯 (Alex) 和整個團隊致敬，他們真正致力於嚴格的成本削減工作。但是，如果你總體上考慮組合、成本等，我想說你應該按照我們的預測來規劃我們的毛利率。他們並不低。我認為我們在過去兩個季度做得非常好，所以相對較低。這是第一件事。

Second, in terms of growth, I would say we always aim for double-digit growth. We came in with 10% to 12%. And again, Q2 is just an outstanding quarter. I don't want to use it as a benchmark for how Q3, Q4 will be. But of course, we're operating off large numbers. We'll aim to do better but we'll have more visibility as we go into Q3 and we'll be able to give you a good sense of the year.

其次，在成長方面，我想說我們始終以兩位數成長為目標。我們的比例是 10% 到 12%。再說一遍，第二季是一個出色的季度。我不想用它作為第三季、第四季的基準。當然，我們的營運規模很大。我們的目標是做得更好，但隨著進入第三季度，我們將擁有更多的知名度，並且我們將能夠讓您對這一年有一個良好的認識。

Got it, thank you.

收到了。

Thanks, Tal.

謝謝，塔爾。

George Notter, Jefferies.

喬治諾特，傑弗里斯。

I guess I was just curious about what your expectations were coming into the quarter for product deferred revenue. I guess I'm curious how much you thought would be added to that product deferred category in Q2. And then also, do you have a view on product deferred revenue for Q3?

我想我只是好奇您對本季產品遞延收入的預期。我想我很好奇您認為第二季該產品延期類別中會添加多少。另外，您對第三季的產品遞延收入有何看法？

Yes. Yes, nothing's changed in our philosophy that we don't guide product deferred revenue. So that's -- there's nothing new there to report. I would say in the sense of coming to this quarter, we don't guide the product deferred revenue. We have an idea in the sense of where we're going to land as we go through the quarter. But I would say that it met expectations from what we were having in our planning forecast process.

是的。是的，我們的理念沒有改變，即我們不引導產品遞延收入。所以，沒有什麼新的東西可以報告。我想說，就本季而言，我們不會指導產品遞延收入。我們對本季的目標有一個想法。但我想說，它符合我們在規劃預測過程中的期望。

Got it. And I assume these are new products you've shipped to customers, you're waiting for customer acceptance. Any sense for when those customer acceptances might start to flow through? Is that a 2024 event? Is that a 2025 event? How do you think about it?

知道了。我假設這些是您已發貨給客戶的新產品，您正在等待客戶接受。這些客戶的認可何時開始生效，有什麼意義嗎？那是 2024 年的活動嗎？那是 2025 年的活動嗎？你覺得怎麼樣？

Yes. They all have different timings because they're unique to the customer, the use case, AI, classic cloud, et cetera. So they're all unique and bespoke that way. So there's no set trending on that. And so as we roll through the quarters, they'll come off as they get deployed and then that's where we'll land from a forecasting perspective.

是的。它們都有不同的時間安排，因為它們對於客戶、用例、人工智慧、經典雲端等來說都是獨一無二的。所以它們都是獨一無二的並且是客製化的。所以這方面沒有固定的趨勢。因此，當我們回顧各個季度時，它們會在部署時脫落，然後這就是我們從預測角度著陸的地方。

And I think it's fair to say if it's AI, it takes longer, if it's classic cloud, it's shorter.

我認為可以公平地說，如果是人工智慧，需要更長的時間，如果是經典雲，則需要更短的時間。

Okay, thank you.

好的謝謝。

Thank you.

謝謝。

Samik Chatterjee, JPMorgan.

薩米克‧查特吉，摩根大通。

Hi. Thanks for taking the questions. Strong results here. But if I can just ask a question on the commentary that Ashwin had in the prepared remarks. Ashwin, you mentioned the tier two customer, where you're refreshing the front end as I sort of interpreted it to alleviate some of the bandwidth sort of concerns from the back end. How do you think about that opportunity across your customer base? Particularly, how should we think about sort of that as being attached to the $750 million target for back-end revenues that you have for next year? Just help us think about the opportunity that you're seeing with your customers on that side.

你好。感謝您提出問題。這裡的結果很強勁。但我能否就阿什溫在準備好的發言中的評論提出一個問題。 Ashwin，您提到了二級客戶，您正在刷新前端，因為我將其解釋為減輕後端的一些頻寬問題。您如何看待您的客戶群中的這個機會？特別是，我們應該如何考慮將其與明年 7.5 億美元後端收入目標掛鉤？請幫助我們思考您在這方面與客戶一起看到的機會。

Yes, Samik, it's hard to say, right? I mean I don't want to attach the $750 million back to this one customer, right? The goal around this one customer was to demonstrate our wins in enterprise and in the non-cloud space. But outside that, it would be very hard to go translate that to what's happening within the $750 million, right? I don't know, Jayshree, if you've got any comments around that at all?

是的，Samik，這很難說，對吧？我的意思是我不想將 7.5 億美元回饋給這位客戶，對嗎？圍繞著這一客戶的目標是展示我們在企業和非雲端領域的勝利。但除此之外，很難將其轉化為 7.5 億美元內發生的事情，對嗎？我不知道，Jayshree，您對此有何評論？

Yes. I was just going to add that -- there are four things Ashwin and the team are seeing in the enterprise and provider sector. I think the migration to 100 gig data center is pretty solidly going on. If anybody is still on a 10 and 40, they're definitely not a early adopter of technology. And some of them are even moving to 400 gig, I would say.

是的。我只是想補充一點——阿什溫和團隊在企業和提供者領域看到了四件事。我認為向 100 GB 資料中心的遷移正在穩步進行。如果有人還停留在 10 和 40 歲之間，那麼他們絕對不是科技的早期採用者。我想說，其中一些甚至已經達到了 400 場演出。

Absolutely, Jayshree.

絕對是，傑什裡。

So that's on the data center. Campus, I know, in general, is a slow market. But for Arista, we are still seeing a lot of desire. And you heard Ashwin talk about a campus win but they're really frustrated and they're struggling with existing campus deployments. So we feel really good about our $750 million target for next year. The routed ran, again, we're both in tier-two and service providers and even in enterprise, there's a lot of activity going on there.

這就是資料中心的情況。我知道，校園整體來說是一個緩慢的市場。但對於 Arista 來說，我們仍然看到了很多渴望。您聽到 Ashwin 談論校園勝利，但他們真的很沮喪，並且正在努力應對現有的校園部署。因此，我們對明年 7.5 億美元的目標感到非常滿意。再次，路由運行，我們都是二級供應商和服務提供商，甚至在企業中，那裡正在進行許多活動。

And finally, the AI trials you talked about, they tend to be smaller but it's a representation of the confidence the customer has. They may be using other GPUs, servers, et cetera. But when it comes to the mission critical networks, they've recognized the importance of best-of-breed reliability, availability, performance, no loss and the familiarity with the data center is naturally leading to pilots and trials on the AI side with us.

最後，你談到的人工智慧試驗，它們往往規模較小，但它代表了客戶的信心。他們可能正在使用其他 GPU、伺服器等。但當談到關鍵任務網絡時，他們已經認識到最佳可靠性、可用性、效能、無損失的重要性，並且對資料中心的熟悉自然會導致我們在人工智慧方面進行試點和試驗。

Thank you.

謝謝。

Karl Ackerman, BNP Paribas.

卡爾‧阿克曼，法國巴黎銀行。

Yes, thank you. So there are several data points across the supply chain that indicate enterprise networking and traditional server units are beginning to recover. I was hoping you might discuss what you are hearing from your enterprise and service provider customers on their commitment to upgrade their services and networking gear over the next couple of quarters. And as you address that, perhaps you could discuss the number of new customers being added in these verticals over the last couple of quarters out of the 10,000 or so that you have today?

是的，謝謝。因此，整個供應鏈中有幾個資料點顯示企業網路和傳統伺服器單元正在開始復原。我希望您能討論一下您從企業和服務提供者客戶那裡聽到的關於他們在未來幾個季度升級服務和網路設備的承諾。當您解決這個問題時，也許您可以討論過去幾季在這些垂直行業中添加的新客戶數量（目前已有 10,000 多個客戶）？

Yes. Let me take the second question. I think we are adding systematically. We celebrated the 10,000. And so because of -- in the past, we used to add large numbers of customers. Now we're adding many small customers who are pleased with the systematic add of hundreds of customers every quarter and that's going very, very well. On the -- what was your other -- former question?

是的。我來回答第二個問題。我認為我們正在系統地添加。我們慶祝了 10,000 週年。因此，因為——在過去，我們曾經增加了大量的客戶。現在我們正在增加許多小客戶，他們對每個季度系統性地增加數百名客戶感到滿意，而且進展非常非常順利。關於你之前的另一個問題是什麼？

How to think about the adoption or the growth of server and networking gear on for campus environments and what you're seeing there.

如何考慮校園環境中伺服器和網路設備的採用或成長以及您在那裡看到的情況。

Okay. So perhaps it may come as a surprise to you but servers aren't always related to campus. Devices and users are much more related to campus, right? Service tend to be dealing with more data center upgrades. So in the campus, we're tending to see two things right now. Greenfield buildings that are -- they're planning for '25, '26 and they're smack in the middle of those RFPs or they're trying to create a little oasis in the desert and prove that our post-pandemic campus is much better with a Leaf/Spine topology, wired/wireless connecting to it at leaf and then enabling things like zero-touch automation, method segmentation, capabilities, analytics, et cetera.

好的。因此，也許您可能會感到驚訝，但服務器並不總是與校園相關。設備和使用者與校園的關係更大，對吧？服務往往涉及更多的資料中心升級。所以在校園裡，我們現在傾向於看到兩件事。綠地建築——他們正在規劃 25 年、26 年，它們正好位於這些 RFP 的中間，或者他們試圖在沙漠中創建一個小綠洲，並證明我們的大流行後校園有很多更好地採用葉/主幹拓撲，在葉處進行有線/無線連接，然後啟用零接觸自動化、方法分段、功能、分析等功能。

So the campus is really turning out to in a somewhat sluggish overall market. We are finding that our customers are very interested in modernizing their campus. And again, it has a lot to do with the familiarity with us in the data center and that's translating to more success in the campus.

因此，校園市場的整體市場確實有些低迷。我們發現我們的客戶對校園現代化非常感興趣。再說一遍，這與我們對資料中心的熟悉程度有很大關係，這也意味著我們在園區取得了更大的成功。

Ben Bollin, Cleveland Research.

本‧博林，克利夫蘭研究中心。

Good evening, everyone. Thanks for taking question. Jayshree, I mean just the bigger picture as you think about back-end network architectures gradually capturing more of the traditional front-end. What do you think that looks like over the next several years? How quickly could that become a more realistic opportunity to capture more of that true fabric of overall compute resources?

各位晚上好。感謝您提出問題。 Jayshree，我的意思是更大的圖景，當你考慮後端網路架構逐漸捕捉更多傳統前端。您認為未來幾年會是什麼樣子？這要多快才能成為捕捉更多整體運算資源真實結構的更現實的機會？

Well, I think there are a lot of market studies that point to today is still largely InfiniBand. You remember me, Ben, saying we were outside looking in just a year ago. So step one is we're feeling very gratified that the whole world, even InfiniBand players have acknowledged that we are making Ethernet great again. And so I expect more and more of that back end to be Ethernet.

嗯，我認為有很多市場研究表明今天仍然主要是 InfiniBand。本，你還記得我說我們一年前還在外面探望過。因此，第一步是我們感到非常高興，全世界，甚至 InfiniBand 玩家都承認我們正在讓乙太網路再次變得偉大。所以我預計越來越多的後端是乙太網路。

One thing I do expect, even though we're very signed up to the $750 million number -- at least $750 million, I should say, next year, is it's going to become difficult to distinguish the back end from the front end when they all move to Ethernet. For this AI center, as we call it, is going to be a conglomeration of both the front and the back.

我確實期望一件事，即使我們非常同意 7.5 億美元的數字——我應該說，明年至少 7.5 億美元，當後端和前端出現時，區分後端和前端將會變得困難。乙太網路。對於我們所說的這個人工智慧中心來說，它將是前端和後端的結合。

So if I were to fast forward three, four years from now, I think the AI center is a supercenter of both the front end and the back end. So we'll be able to track it as long as there's GPUs and strictly training use cases. But if I were to fast forward, I think there may be many more edge use cases, many more inference use cases and many more small-scale training use cases which will make that distinction difficult to make.

所以如果我快轉三、四年後，我認為人工智慧中心是前端和後端的超級中心。因此，只要有 GPU 和嚴格訓練的用例，我們就能夠追蹤它。但如果我快轉的話，我認為可能會有更多的邊緣用例、更多的推理用例和更多的小規模訓練用例，這將使這種區分變得困難。

Alex Henderson, Needham.

亞歷克斯·亨德森，李約瑟。

I was hoping we could talk a little bit about the spending biases in the Cloud Titans. Clearly, there's an enormous amount of spending going into the AI front and back end networking elements as well as the GPUs. But there is a rebounding growth rate of application that is ultimately driving the traditional business that has historically been called the CPU side of the data center.

我希望我們能談談雲泰坦的支出偏見。顯然，人工智慧前端和後端網路元素以及 GPU 投入了大量資金。但應用程式成長率的反彈最終推動了歷史上被稱為資料中心 CPU 端的傳統業務。

And I'm wondering if they're under-investing in there and that there's going -- whether there's a potential for a catch-up in the spending in that area at some juncture because of the over bias to or whether that investment is ongoing at a reasonable rate, consistent with a moderate acceleration in the application growth?

我想知道他們是否在這方面投資不足，並且該領域的支出是否有可能在某個時刻因為過度偏向而趕上該領域的支出，或者該投資是否正在進行以合理的速度，與應用程序增長的適度加速相一致？

Alex, it's a very thought-provoking question. I would say there's such a heavy bias towards -- in the Cloud Titans towards training and super training and the bigger and better the GPUs, the billion parameters, the OpenAI, ChatGPT and LAMAs that you're absolutely right that at some level, the classic cloud, what you call traditional, I'm still calling classic, is a little bit neglected last year and this year. Having said that, I think once the training models are established, I believe this will come back and it will sort of be a vicious cycle that feeds on each other. But at the moment, we're seeing more activity on the AI and more moderate activity on the cloud.

亞歷克斯，這是一個非常發人深省的問題。我想說的是，在雲端泰坦中，人們對訓練和超級訓練以及更大更好的GPU、十億個參數、OpenAI、ChatGPT 和LAMA 有很大的偏見，在某種程度上，你是絕對正確的，經典雲，你所謂的傳統，我仍然稱之為經典，去年和今年有點被忽視。話雖如此，我認為一旦訓練模型建立起來，我相信這種情況會回來，這將是一個相互促進的惡性循環。但目前，我們看到人工智慧方面的活動較多，而雲端方面的活動則較為溫和。

Does the reacceleration of application growth excluding the AI play into that? I mean clearly that --

不包括人工智慧在內的應用程式成長的重新加速是否會影響這一點？我的意思很明確——

I think it does. I don't know -- I don't know how to measure it but I think the more AI back end we put in, we expect that to have a pressure on the front end of x percent. We're still trying to assess whether that's 10%, 20%, 30%. And so we do not count that in our $750 million number, to be accurate, to the only GPU native connections. But absolutely, as the two holistically come together to form this AI center, I believe the front end will have pressure.

我認為確實如此。我不知道——我不知道如何衡量它，但我認為我們投入的人工智慧後端越多，我們預計會對前端產生 x% 的壓力。我們仍在嘗試評估是 10%、20% 還是 30%。因此，準確地說，我們在 7.5 億美元的數字中並未將其計入唯一的 GPU 原生連線。但絕對的，當兩者整體結合形成這個AI中心時，我相信前端會有壓力。

Thank you so much, and thanks for the great quarter.

非常感謝，也感謝這個偉大的季度。

Thank you, Alex. Appreciate your support.

謝謝你，亞歷克斯。感謝您的支持。

Ben Reitzes, Melius Research.

本‧雷茨 (Ben Reitzes)，Melius 研究中心。

This is [Jack De] for Ben. Wondering if you could comment on the competitive environment. And if you're seeing Spectrum ex from NVIDIA? And if so, how you're doing against it?

這是本的[傑克·德]。想知道您是否可以評論一下競爭環境。如果您看到的是 NVIDIA 的 Spectrum ex？如果是這樣，你是如何應對的？

Yes. Well, first, I just want to say, when you say competitive environment, it's complicated with NVIDIA because we really consider them a friend on the GPUs as well as the mix, so not quite a competitor. But absolutely, we will compete with them on the Spectrum switch. We have not seen the Spectrum except in one customer where it was bundled.

是的。好吧，首先，我只想說，當你說競爭環境時，NVIDIA 的情況很複雜，因為我們確實認為他們是 GPU 以及混合方面的朋友，所以不完全是競爭對手。但我們絕對會在頻譜交換機上與他們競爭。除了一位捆綁了 Spectrum 的客戶外，我們還沒有看到該 Spectrum。

But otherwise, we feel pretty good about our win rate and our success. For a number of reasons, great software, portfolio products and architecture has proven performance, visibility features, management capabilities, high availability. And so I think it's fair to say that if a customer were bundling with their GPUs, then we wouldn't see it. If a customer were looking for best of breed, we absolutely see it and win it.

但除此之外，我們對我們的勝率和成功感覺非常好。基於多種原因，優秀的軟體、組合產品和架構具有經過驗證的效能、可見性功能、管理功能和高可用性。因此，我認為可以公平地說，如果客戶與他們的 GPU 捆綁在一起，那麼我們就看不到它。如果客戶正在尋找同類最佳產品，我們絕對會看到並贏得它。

Thank you for that.

謝謝你。

James Fish, Piper Sandler.

詹姆斯·菲什，派珀·桑德勒。

Just wanted to circle back on the enterprise side of things. I guess -- is there a way to think about how many replacements you're seeing relative to prior periods? And really, I'm trying to understand if we're starting to see that core enterprise data center network refresh actually pick up versus kind of the share gains that you guys have historically seen. And is there an underlying change in enterprise customer behavior, whether it's for the data center or Jayshree, I know you were talking about the campus earlier.

只是想回到企業方面。我想——有沒有辦法考慮一下相對於之前的時期你看到了多少替代品？事實上，我試圖了解我們是否開始看到核心企業資料中心網路的更新實際上有所回升，而不是你們歷史上看到的份額成長。企業客戶行為是否存在根本性變化，無論是資料中心還是 Jayshree，我知道您之前談論的是園區。

Yes, James, let me talk and Ashwin, I'm sure you have more to add since you're closer to the problem. I believe we have three classes of enterprise customers. The early adopters. And I think in that category, Ashwin's team is seeing a lot of refresh going. They already have 100 gig and they're potentially planning their 400 gig, right? Then the fast followers. And those guys, I think, are still looking at 100-gig migrations, right?

是的，詹姆斯，讓我談談，阿什溫，我相信你還有更多要補充的，因為你更接近問題了。我相信我們有三類企業客戶。早期採用者。我認為在這個類別中，阿什溫的團隊正在經歷很多更新。他們已經有 100 場演出，並且可能正在計劃 400 場演出，對吧？然後是快速追隨者。我認為那些人仍在考慮 100 場遷移，對嗎？

And then the real risk averse and we're still getting to know them because our -- this is an untapped opportunity for us, right? And probably a fourth category where some of them are disillusioned with the public cloud and want to repatriate some of their workloads back into the data center. So I would say there's activity in all four. No saturation, still a lot of opportunity for us largely in the speed upgrades and also in the class of customers and what stage they are.

然後是真正的風險厭惡者，我們仍在了解他們，因為我們——這對我們來說是一個尚未開發的機會，對嗎？可能是第四類，其中一些人對公有雲的幻想破滅了，希望將部分工作負載轉移回資料中心。所以我想說這四個方面都有活動。沒有飽和，我們仍然有很多機會，主要體現在速度升級方面，也體現在客戶的類別和階段。

Ashwin, do you want to add anything to that?

Ashwin，你想補充什麼嗎？

Yeah, sure, Jayshree, right? And so to answer your question, from what I'm seeing from customers, they're kind of fed up with being deployed in the data center, specifically, something which is proprietary lock-in, right? Something which is -- does not give them the flexibility to do -- join multiple use cases such as data center, campus, routing and they want something that just works. They want something that is just simple. They want to make sure that when they wake up in the morning, the network is not down. And so Arista today actually has a brand.

是的，當然，Jayshree，對吧？因此，為了回答你的問題，從我從客戶那裡看到的情況來看，他們有點厭倦了部署在資料中心，特別是專有鎖定的東西，對吧？一些東西——不給他們靈活性——加入多個用例，如資料中心、園區、路由，他們想要一些能正常工作的東西。他們想要簡單的東西。他們希望確保早上醒來時網路沒有中斷。所以今天的 Arista 其實已經有了一個品牌。

It has a value for there. And we've actually been delivering this for the last 10-plus years. So James, I would say the message is echoing successfully in our existing customers who are taking Arista not only in the single use case of data center but expanding that across data center, campus, routing, WAN. And then the team is eagerly working with a new set of Global 2000 and Fortune 500 customers to go evangelize a message to them as well.

它在那裡有價值。事實上，我們在過去十多年裡一直在提供這項服務。 James，我想說，這項資訊在我們現有的客戶中得到了成功的回應，他們不僅在資料中心的單一用例中採用 Arista，而且將其擴展到資料中心、園區、路由、WAN 領域。然後，該團隊正熱切地與一批新的全球 2000 強和財富 500 強客戶合作，向他們傳播訊息。

Ittai Kidron, Oppenheimer.

伊泰·基德隆，奧本海默。

Nice numbers, ladies. I wanted to go back to gross margin. Jayshree, Chantelle, if you don't mind, in your prepared remarks, you talked about manufacturing efficiencies, cost reduction. I guess I'm wondering why is that not something that carries forward to the next quarter as well? I understand you're trying to be conservative but I'm sure these are not changes that have a very short lifespan that they can carry forward. So why not be a bit more optimistic on what the gross margin outlook should be?

很好的數字，女士們。我想回到毛利率。 Jayshree、Chantelle，如果您不介意的話，您在準備好的演講中談到了製造效率和降低成本。我想我想知道為什麼這不能延續到下個季度？我理解您試圖保持保守，但我確信這些變化的壽命不會很短，無法延續。那為什麼不對毛利率前景更樂觀一點呢？

Yes. No, it's a great question. And so our goal is always to try to do better than our guide. But within that guide, the question is there's -- mostly what's influencing the second half consideration is the expected mix of customers.

是的。不，這是一個很好的問題。因此，我們的目標始終是努力比我們的導遊做得更好。但在該指南中，問題是——影響下半年考慮因素的主要因素是預期的客戶組合。

As you can appreciate, we do have different mixes depending on the demographics of who we're selling to. So I think that's a big part of our second half, why we kept the guide as it is. We will keep looking for variable cost productivity in cost management as we go through and hope to deliver more. But at this point in time, what's mostly built into it is the mix assumption in the second half.

正如您所理解的，我們確實根據銷售對象的人口統計資料提供了不同的組合。所以我認為這是我們下半年的一個重要部分，也是我們保持指南不變的原因。我們將繼續在成本管理中尋找可變成本生產力，並希望提供更多。但目前，最重要的是下半年的混合假設。

And if you look at -- this isn't just this quarter. John and the team have done a fantastic job for the last year. So yes, I'm going to go back to them and ask for more but I think they will say they've done so much and might be squeezing blood out of a stone. So we'll see if they respond to more cost reductions. But I absolutely agree with Chantelle. It's largely driven by mix. And I think we've taken a lot of the cost reductions out in the last year.

如果你看一下——這不僅僅是本季的情況。約翰和他的團隊去年的工作非常出色。所以，是的，我會回去向他們要求更多，但我想他們會說他們已經做了這麼多，可能正在從石頭裡擠出血。因此，我們將看看他們是否會對進一步降低成本做出反應。但我絕對同意尚特爾的觀點。它很大程度上是由混合驅動的。我認為去年我們已經削減了大量成本。

Simon Leopold, Raymond James.

西蒙·利奧波德，雷蒙德·詹姆斯。

I know that you typically hold off on the 10% customer disclosures until the end of the fiscal year. But what I'm hoping to gather is how customer concentration may be evolving from comparison to last year, do you expect with your past customers growing their spending so much that it stays similar or with the diversity of the new opportunities, the concentration you've had historically declined. Any kind of indication you could offer? I'd appreciate it.

我知道你們通常會推遲 10% 的客戶披露，直到財政年度結束。但我希望收集到的是，與去年相比，客戶集中度可能會如何演變，您是否期望過去的客戶大幅增加支出以使其保持相似，或者隨著新機會的多樣性，您的集中度會如何變化？您可以提供任何指示嗎？我會很感激。

I mean, I'll try but you're right to say that we don't know. It's only half the year. I expect both Microsoft and Meta to be greater than 10% customers for us. I don't expect any other 10% concentration. Now in Microsoft and Meta, how they will pivot to AI and how they will reduce the spend and all that things, that movie will play out in the next six months.

我的意思是，我會嘗試，但你說我們不知道是對的。這才半年啊。我預計 Microsoft 和 Meta 都將成為我們超過 10% 的客戶。我不期望任何其他 10% 的濃度。現在，在微軟和 Meta 中，他們將如何轉向人工智慧以及他們將如何減少支出等等，這部電影將在接下來的六個月內上映。

So we'll know better. But at this point, I think you can assume they won't be exactly the same. Some may go up, some may go down. But these are two extremely vital customers, strategic customers, we co-develop with them. We partner with them very, very well. And we expect to do well with them, both in cloud and AI, depending on their priorities, of course.

所以我們會更了解。但在這一點上，我認為你可以假設它們不會完全相同。有的可能會上漲，有的可能會下跌。但這是兩個極為重要的客戶，策略客戶，我們與他們共同開發。我們與他們的合作非常非常好。當然，我們希望在雲端和人工智慧領域與他們合作，這取決於他們的優先事項。

And does the pipeline suggest you can have new 10% customers next year? Or do you expect sort of a similar concentration next year?

通路是否顯示您明年可以擁有 10% 的新客戶？或者你預計明年會有類似的集中度嗎？

We're not aware of any customer that will approach 10% this year or next year.

據我們所知，今年或明年沒有任何客戶的比例會接近 10%。

Thank you very much.

非常感謝。

Sure, Simon.

當然，西蒙。

Tim Long, Barclays.

提姆朗，巴克萊銀行。

Thank you. Maybe we'll go over to the software services, the AI stuff has been beaten up a little bit here. In a good way. You talked a lot about some of the software capabilities. It seems like Arista might be leaning in a little bit more to this revenue line. It's been growing faster than the hardware product the last multiple quarters. So could you talk about kind of sustainability of that strength focus that you guys have on this service software area and what that would mean to growth rate going forward?

謝謝。也許我們會轉向軟體服務，人工智慧的東西在這裡已經受到了一些打擊。以一種好的方式。您談到了很多軟體功能。看來 Arista 可能會更傾向這條收入線。過去幾季它的成長速度快於硬體產品。那麼，您能否談談您們在這個服務軟體領域的優勢重點的可持續性，以及這對未來的成長率意味著什麼？

Yes. Thank you. Thank you for the change in question. I appreciate that. I think we will be in the teens for some time because there are three building blocks and a lot of this, Ashwin, you know very well. There's the services building block that as product goes up, there's a lot of pressure on us on a percentage of service to be lower, right? So that, while it may -- historically has been in the teens, can be lower.

是的。謝謝。感謝您對相關問題的變更。我很感激。我認為我們將在一段時間內處於青少年階段，因為有三個構建模組，而且很多，阿什溫，你很清楚。有一個服務構建塊，隨著產品的增加，我們面臨很大的壓力，需要降低服務的百分比，對吧？因此，雖然歷史上這個數字可能是十幾歲，但可能會更低。

Then the second one is our perpetual software which, again, is a strong function of use cases, particularly things like routing, et cetera, where we've done very, very well. The stronger we do there, the better we do there. An extension of that is CloudVision which can be -- is more a subscription service with CloudVision as a service, either Network-as-a-Service or on the premise. So that's the second building block for us that's going strong.

第二個是我們的永久軟體，它同樣具有強大的用例功能，特別是路由等方面，我們在這方面做得非常非常好。我們在那裡做得越強，我們在那裡做得越好。 CloudVision 是其擴展，它更像是一種以 CloudVision 作為服務的訂閱服務，可以是網路即服務，也可以是本地服務。這是我們強大的第二個基石。

The one I want to point to a little more which could help us is the security (inaudible)You may know in May, we introduced the micro and macro segmentation. We also announced UNO, our Unified Network Observability. And while this is new, Ashwin and I have great plans for that and I think this could be a swing factor. As the services components may reduce over time, these new product components may increase. So 17 points, whatever percentage was is a great number. And if we can consistently stay there, I'd be very proud, particularly as our numbers get larger.

我想多指出一點可以幫助我們的是安全性（聽不清楚）您可能知道在五月份，我們引入了微觀和宏觀細分。我們也發布了 UNO，即我們的統一網路可觀測性。雖然這是新的，但阿什溫和我對此有很好的計劃，我認為這可能是一個搖擺因素。由於服務組件可能會隨著時間的推移而減少，因此這些新產品組件可能會增加。所以17分，不管百分比是多少，都是一個很大的數字。如果我們能夠始終如一地留在那裡，我會感到非常自豪，特別是當我們的人數越來越多時。

Okay, thank you.

好的謝謝。

Sebastien Naji, William Blair.

塞巴斯蒂安·納吉，威廉·布萊爾。

Sorry to bring you guys back to the AI conversation but this one is a little bit more high level. I guess, we keep hearing about bigger and bigger API clusters that are being built. And as Arista is working on connecting these larger and larger clusters as they scale, I'm just wondering, does that impact your ability to capture more revenue? Is -- you've talked about 15% of CapEx. Does that maybe change or go up or go down as these clusters that you're having to connect get bigger and bigger?

很抱歉讓你們回到人工智慧對話，但這次的水平更高一些。我想，我們不斷聽說正在建立越來越大的 API 叢集。隨著 Arista 致力於連接這些越來越大的集群，我只是想知道，這是否會影響您獲得更多收入的能力？是——您談到了 15% 的資本支出。隨著您必須連接的這些集群變得越來越大，這種情況是否可能會發生變化、上升或下降？

Yeah, so if you look at an AI network design, you can look at it through two lenses, just through the compute, in which case you look at scale up and you look at it strictly through how many processes there are. But when we look at an AI network design, it's a number of GPUs or XTUs per workload. Distribution and location of these GPUs are important.

是的，所以如果你看人工智慧網路設計，你可以透過兩個鏡頭來看待它，只是透過計算，在這種情況下，你會專注於規模化，並嚴格地透過有多少個進程來看待它。但當我們審視 AI 網路設計時，會發現每個工作負載的 GPU 或 XTU 數量。這些 GPU 的分佈和位置非常重要。

And whether the cluster has multiple tenants and how it's divvied up between the host, the memory, the storage and the wide area plays a role and the optimization to make on the applications for the collective communication libraries for specific workloads, levels of resilience, how much redundancy you want to put in, active, link base, load balancing, types of visibility. So the metrics are just getting more and more. There are many more commutations in combination.

叢集是否有多個租戶，以及如何在主機、記憶體、儲存和廣域之間分配，以及針對特定工作負載、彈性等級、如何對集體通訊庫的應用程式進行最佳化，您想要投入的冗餘、活動、連結基礎、負載平衡、可見性類型。所以指標變得越來越多。組合換向還有很多。

But it all starts with number of GPUs, performance and billions of parameters. Because the training models are definitely centered around job completion time. But then there's multiple concentric circles of additional things we have to add to that network design. All this to say, a network design-centric approach has to be taken for these GPU clusters. Otherwise, you end up being very siloed and that's really what we're working on. So it goes beyond scale and performance to some of these other metrics I mentioned.

但這一切都始於 GPU 的數量、效能和數十億個參數。因為訓練模型肯定是以工作完成時間為中心的。但是，我們還必須在該網頁設計中添加多個同心圓的其他內容。綜上所述，這些 GPU 叢集必須採用以網路設計為中心的方法。否則，你最終會變得非常孤立，而這正是我們正在努力的方向。因此，它超越了規模和性能，也包括我提到的其他一些指標。

Thank you.

謝謝。

Thanks, Sebastien. Operator, we have time for one last question, please.

謝謝，塞巴斯蒂安。接線員，我們有時間回答最後一個問題。

David Vogt, UBS.

大衛‧沃格特，瑞銀集團。

Thanks, guys, for squeezing me in. Maybe just to bring it back together and maybe both for Jayshree and Chantelle. I guess what I'm trying to think through is this is your product introduction. You have a pretty strong ramp of AI likely next year. But does the guide imply that we're going to start to see a much bigger contribution in Q4 driven by the comments around mix earlier and the gross margin discussion?

謝謝你們讓我加入。我想我正在思考的是這是你們的產品介紹。明年人工智慧可能會出現相當強勁的成長。但該指南是否意味著我們將開始在第四季度看到更大的貢獻，這是由之前有關混合的評論和毛利率討論推動的？

Because I would imagine early in the stage of their life cycle plus the fact that they're hyperscalers, they're going to be a relatively more modest gross margin profile at the beginning of the glide path versus the end of the glide path. So just any color there in terms of what Q4 might look like from an AI perspective relative to your expectations from a glide path perspective?

因為我想像在它們生命週期的早期階段，加上它們是超大規模企業，所以它們在下滑路徑開始時與下滑路徑結束時的毛利率狀況將相對溫和。那麼，從人工智慧的角度來看，相對於你從滑行路徑角度的期望，第四季可能會是什麼樣子？

Yes. Let me just remind you of how we are approaching 2024, including Q4, right? Last year, trials. So small, it was not material. This year, we're definitely going into pilots. Some of the GPUs and you've seen this in public blogs published by some of our customers have already gone from tens of thousands to 24,000 and are heading towards 50,000 GPUs.

是的。讓我提醒您我們將如何迎接 2024 年，包括第四季度，對嗎？去年，試煉。這麼小，它並不重要。今年，我們肯定會進行試點。您已經在我們的一些客戶發布的公共部落格中看到，一些 GPU 的數量已經從數萬個增加到 24,000 個，並且正在向 50,000 個 GPU 邁進。

Next year, I think there will be many of them heading into tens of thousands aiming for 100,000 GPUs. So I see next year as more promising. Some of them might happen this year. But I think we're very much in -- going from trials to pilots, trials being hundreds. And this year, we're in the thousands. But I wouldn't focus on Q4. I'd focus on the entire year and say, yes, we've gone into the thousands. And I'll let Chantelle turn for this glide path, right? So we expect to be single-digit small percentages of our total revenue in AI this year. But we are really, really expecting next year to be the $750 million a year or more.

明年，我認為他們中的許多人將達到數萬個，目標是 100,000 個 GPU。所以我認為明年更有希望。其中一些可能會在今年發生。但我認為我們已經非常投入了——從試驗到試點，試驗有數百次。今年，我們的人數達到了數千人。但我不會關注第四季。我會專注於全年並說，是的，我們已經進入了數千個。我會讓 Chantelle 轉向這條滑行路線，對吧？因此，我們預計今年人工智慧領域的總收入將佔個位數的小比例。但我們確實非常期待明年的營收達到 7.5 億美元或更多。

Yeah. I think so. I completely agree, Jayshree. The only thing I would add to it is you have to think of the kind of the matrix we're working within. So we have cloud and enterprise customers and we have very, very different scopes of readiness at those customers. So Q3, Q4, Q1, Q2 next year, they're all eligible for timing for types, et cetera. So we just want to make sure that variability that I spoke to in my prepared remarks is understood in that context.

是的。我想是這樣。我完全同意，傑什裡。我唯一要補充的是，你必須考慮我們正在使用的矩陣類型。因此，我們有雲端和企業客戶，我們對這些客戶的準備範圍非常非常不同。所以明年的第三季、第四季、第一季、第二季度，它們都有資格獲得類型的計時，等等。因此，我們只是想確保我在準備好的發言中談到的可變性在這種情況下得到理解。

Yeah. I think simple things like power and cooling are affecting the ability to deploy in massive scale. So there's nothing magic about Q4. There's plenty of magic about the year in its entirety and next year.

是的。我認為電力和冷卻等簡單的事情正在影響大規模部署的能力。所以第四季並沒有什麼神奇之處。今年和明年都有很多魔力。

Great, thank you. Thanks, Jayshree. Thanks, Chantelle, and thanks, Liz.

太好了謝謝。謝謝，傑什裡。謝謝，尚特爾，謝謝，莉茲。

This concludes the Arista Networks' second quarter 2024 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 的 2024 年第二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這些信息。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。您現在可以斷開連線。