Arista Networks Inc (ANET) 2020 Q2 法說會逐字稿

Welcome to the Second Quarter 2020 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 2020 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在 Arista 網站的投資者關係部分重播。

I will now turn the call over to Mr. Curtis McKee, Director of Corporate and Investor Development. Sir, you may begin.

我現在將把電話轉給企業和投資者發展總監 Curtis McKee 先生。先生，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, 2020. If you would like a copy of the 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 總裁兼執行長 Jayshree Ullal；以及 Arista 財務長 Ita Brennan。今天下午，Arista Networks 發布了一份新聞稿，公佈了截至 2020 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 2020 fiscal year, longer-term financial outlooks, the potential impact of COVID-19 on our business, industry innovation, our market opportunity, the benefits of recent acquisitions and the impact of litigation, which are subject to the risks and uncertainties that we'll 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 2020 財年第三季度的財務前景、長期財務前景、COVID-19 對我們業務的潛在影響相關的聲明、行業創新、我們的市場機會、最近收購的好處以及訴訟的影響，這些都受到風險和不確定性的影響，我們將在向SEC 提交的文件中詳細討論這些風險和不確定性，特別是在我們最新的表格10- Q 和表格 10-K 可能導致實際結果與這些聲明中預期的結果有重大差異。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, Curtis. Thank you, everyone, for joining us this afternoon for our second quarter 2020 earnings call. To start with, I would like to address the once-in-100-year coronavirus global pandemic and reiterate our commitment to employee safety and customer response. At Arista, we recognize our role and responsibility in supporting global communications and cloud infrastructure during these mission-critical times. We are adjusting to the new work-from-home norm and expect this will continue throughout 2020 until vaccines or therapeutics emerge. We are working closely with our supply chain and contract manufacturers to improve lead times and support our customers in their business continuity initiatives.

謝謝你，柯蒂斯。感謝大家今天下午參加我們的 2020 年第二季財報電話會議。首先，我想談談一百年一遇的冠狀病毒全球大流行，並重申我們對員工安全和客戶回應的承諾。在 Arista，我們認識到我們在這些關鍵任務時期支援全球通訊和雲端基礎設施的角色和責任。我們正在適應新的在家工作規範，預計這種情況將持續到 2020 年，直到疫苗或治療方法出現。我們正在與供應鏈和合約製造商密切合作，以縮短交貨時間並支援客戶的業務連續性計劃。

Back to Q2 specifics. We delivered revenue of $540.6 million for the quarter with a non-GAAP earnings per share of $2.11. A-Care services and software support renewals contributed approximately 22% of revenue. Our non-GAAP gross margins were 64.7%, influenced by software and services mix. We registered a record number of million-dollar customers as a direct result of our enterprise vertical traction and continue to march towards our goal of 1 to 2 new customers a day in the second quarter.

回到第二季的具體情況。我們本季的營收為 5.406 億美元，非 GAAP 每股收益為 2.11 美元。 A-Care 服務和軟體支援續約貢獻了約 22% 的收入。受軟體和服務組合的影響，我們的非 GAAP 毛利率為 64.7%。作為我們企業垂直牽引的直接結果，我們註冊了創紀錄的百萬美元客戶數量，並繼續朝著第二季度每天增加 1 至 2 個新客戶的目標邁進。

In Q2 2020, cloud titans was the largest vertical. The enterprise is once again our second largest performer followed by Tier 2 cloud service providers and financials tied for third place and service providers in fourth place. Our vertical mix in the second quarter was consistent with the prior trends that we shared with you in May: cloud titans, approximately 40% of the mix; enterprises, including financial services, approximately 35% of the mix; and providers approximately 25% of the mix.

2020 年第二季度，雲端巨頭是最大的垂直產業。企業再次成為我們的第二大表現者，其次是二級雲端服務供應商和並列第三位的金融機構，以及排名第四的服務供應商。我們第二季的垂直組合與我們在 5 月與您分享的先前趨勢一致：雲端巨頭，約佔組合的 40%；企業，包括金融服務業，約佔組合的 35%；和提供者約佔組合的 25%。

In terms of geography, international contribution was 19% with the Americas at 81%. Regional EMEA traction was slower than normal due to pushout of big customer decisions and reduced international cloud titan spend in the quarter.

從地理來看，國際貢獻率為 19%，其中美洲為 81%。由於大客戶決策的延遲以及國際雲端巨頭本季支出的減少，歐洲、中東和非洲地區的牽引力低於正常水平。

As we predicted, Arista's Cognitive Campus portfolio met its first year $100 million objective ending June 30, 2020. While we are pleased with the traction, we believe that our new enterprise prospects will take time, especially in this COVID era. We remain hopeful and optimistic to double in the next 5 to 6 quarters to $200 million, of course, depending on market conditions.

正如我們預測的那樣，Arista 的認知校園產品組合在2020 年6 月30 日結束時實現了第一年1 億美元的目標。需要時間，特別是在這個新冠疫情時代。我們仍然充滿希望和樂觀，希望在未來 5 到 6 個季度內實現翻倍，達到 2 億美元，當然，這取決於市場狀況。

In terms of new innovations, last week, Arista introduced the CloudEOS router for the edge, supporting dynamic path selection services across all major cloud providers. Some of the key features include AWS transit gateway integration for seamless automated provisioning; elastic consumption of CloudEOS across the 3 main cloud providers, AWS, Azure and GCP; declarative provisioning of multi-cloud through Hashicorp Terraform; and a dashboard based on Arista's CloudVision for centralized visibility of enterprise and cloud resources.

在新創新方面，上週，Arista 推出了用於邊緣的 CloudEOS 路由器，支援跨所有主要雲端供應商的動態路徑選擇服務。一些關鍵功能包括用於無縫自動配置的 AWS 中轉網關整合； CloudEOS 跨 3 個主要雲端供應商 AWS、Azure 和 GCP 的彈性消耗；透過 Hashicorp Terraform 聲明性配置多雲；以及基於 Arista CloudVision 的儀表板，可實現企業和雲端資源的集中可見性。

As we review 2020 at the midyear point, there are clearly macro issues outside our control. The number of confirmed COVID-19 cases has increased sharply in July. The economic recession is looming, and trade wars are escalating. Despite this, Arista experienced a cloud titan recovery and enterprise trend in Q2, offset by extended sales cycles in the campus sector.

當我們在年中回顧 2020 年時，顯然存在一些我們無法控制的宏觀問題。 7 月確診的 COVID-19 病例數急劇增加。經濟衰退迫在眉睫，貿易戰不斷升級。儘管如此，Arista 在第二季度經歷了雲端巨頭的復甦和企業趨勢，但被園區領域延長的銷售週期所抵消。

We're also pleased with the recent leaders recognition in both Forrester's Wave for open programmable switches in business-wide SDN with the top score in strategy category and with Gartner's Magic Quadrant for data center and cloud networking. Gartner designated us a Magic Quadrant leader for the sixth consecutive year. These placements truly validate Arista's premier status in networking.

我們也很高興最近在 Forrester's Wave 中對全業務 SDN 中的開放式可編程交換機的領導者認可，在戰略類別中獲得最高分，並在 Gartner 的數據中心和雲端網路魔力像限中獲得最高分。 Gartner 連續第六年將我們評為魔力像限領導者。這些位置真正驗證了 Arista 在網路領域的首要地位。

I believe we are well positioned in cloud networking for data center, routing, campus and new multi-cloud monitoring capabilities, enabling network migration from legacy to modern. In these unprecedented times, customers seek our compelling advantages, and we expect to emerge even stronger than many of our industry peers. We hope you're all being safe and well.

我相信，我們在資料中心、路由、園區和新的多雲監控功能的雲端網路方面處於有利地位，使網路能夠從傳統網路遷移到現代網路。在這個前所未有的時代，客戶尋求我們引人注目的優勢，我們期望比許多行業同行更強大。我們希望你們一切安好。

I will now turn the call to our CFO, Ita Brennan, for financial details. Ita?

我現在將致電我們的財務長伊塔布倫南 (Ita Brennan)，以了解財務詳細資訊。伊塔？

Thanks, Jayshree, and good afternoon. This analysis of our Q2 results and our guidance for Q3 2020 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.

謝謝，Jayshree，下午好。對我們第二季業績和 2020 年第三季指引的分析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 $541 million, down 11% year-over-year but at the upper end of our guidance of $520 million to $540 million. Approximately 6% of this decline related to the recognition of $38 million of product deferred revenue in the second quarter of 2019. In addition, while overall demand in Q2 was reasonably healthy, we continue to experience some COVID-19-related supply challenges, resulting in extended lead times and somewhat constrained shipments for the quarter.

第二季總營收為 5.41 億美元，年減 11%，但處於我們 5.2 億至 5.4 億美元指引的上限。其中約6% 的下降與2019 年第二季確認的3,800 萬美元產品遞延收入有關。導致交貨時間延長，本季出貨量有所限制。

Service revenues represented approximately 22% of total revenue, up slightly from 21% last quarter. International revenues for the quarter came in at $104.7 million or 19.4% of total revenue, down from 23% in the first quarter. While the shift in geographical mix on a quarter-over-quarter and year-over-year basis was largely due to the location of deployments by our cloud titan customers, we did see some pushout of larger opportunities in our in-region businesses also.

服務收入約佔總收入的 22%，略高於上季的 21%。該季度國際營收為 1.047 億美元，佔總營收的 19.4%，低於第一季的 23%。雖然地理組合環比和同比的變化主要是由於我們的雲端巨頭客戶的部署位置造成的，但我們確實看到我們的區域內業務也出現了一些更大的機會。

Overall gross margin in Q2 was 64.7%, above the midpoint of our guidance of approximately 63% to 65% compared to last quarter at 65.6%. Operating expenses for the quarter were $144.1 million or 26.7% of revenue, down from last quarter at $149.3 million. R&D spending came in at $91.6 million or 17% of revenue, consistent with last quarter. Sales and marketing expense was $41.9 million or 7.8% of revenues, down from $46 million last quarter with lower marketing and travel-related spending.

第二季的整體毛利率為 64.7%，高於我們指引約 63% 至 65% 的中位數，而上季為 65.6%。本季營運費用為 1.441 億美元，佔營收的 26.7%，低於上季的 1.493 億美元。研發支出為 9,160 萬美元，佔營收的 17%，與上季持平。銷售和行銷費用為 4,190 萬美元，佔收入的 7.8%，低於上季度的 4,600 萬美元，原因是行銷和旅遊相關支出減少。

Our G&A costs came in at $10.6 million or 2% of revenue, down from last quarter of approximately $12 million. Our operating income for the quarter was $205.7 million or 38.1% of revenue. Other income and expense for the quarter was a favorable $8.3 million, and our effective tax rate was approximately 21.9%. This resulted in net income for the quarter of $167 million or 30.9% of revenue.

我們的一般管理費用為 1,060 萬美元，佔營收的 2%，低於上季的約 1,200 萬美元。我們本季的營業收入為 2.057 億美元，佔營收的 38.1%。本季的其他收入和支出為 830 萬美元，有效稅率約為 21.9%。這使得該季度的淨利潤達到 1.67 億美元，佔營收的 30.9%。

Our diluted share number was 79.3 million shares, resulting in a diluted earnings per share number for the quarter of $2.11, down 13.5% from the prior year.

我們的稀釋後股票數量為 7,930 萬股，導致本季稀釋後每股收益為 2.11 美元，比前一年下降 13.5%。

Now turning to the balance sheet. Cash, cash equivalents and investments ended the quarter at approximately $2.8 billion. We did not repurchase shares of our common stock during the second quarter. As a reminder, we have previously repurchased $494 million or 2.4 million shares against our Board authorization to repurchase $1 billion worth of shares over 3 years commencing in Q2 '19. We expect to continue to execute opportunistically against the remaining authorization.

現在轉向資產負債表。本季末現金、現金等價物和投資約 28 億美元。我們在第二季沒有回購普通股。提醒一下，我們之前已經回購了 4.94 億美元或 240 萬股股票，而董事會授權從 19 年第二季開始在三年內回購價值 10 億美元的股票。我們預計將繼續根據剩餘的授權機會執行。

We generated $138 million of cash from operations in the second quarter, reflecting solid net income performance, somewhat offset by incremental working capital investments. We expect to continue to strategically increase inventory levels through the end of the year as we look to improve lead times and help buffer against any future COVID-related supply chain disruptions. DSOs came in at 65 days, up from 61 days in Q1, reflecting the linearity of billings in the period. Inventory turns were 2.3x, down from 2.5 last quarter. Inventory increased to $327 million in the quarter, up from $262 million in the prior period.

第二季我們從營運中產生了 1.38 億美元的現金，反映出穩健的淨利潤表現，但在一定程度上被增量營運資本投資所抵銷。我們預計到今年年底將繼續策略性地提高庫存水平，以縮短交貨時間並幫助緩衝未來與新冠病毒相關的供應鏈中斷。 DSO 的周期為 65 天，高於第一季的 61 天，反映了該期間帳單的線性度。庫存週轉率為 2.3 倍，低於上季的 2.5 倍。本季庫存增加至 3.27 億美元，高於上一季的 2.62 億美元。

Our total deferred revenue balance was $578 million, down from $597 million in Q1. As a reminder, our deferred revenue balance is now almost exclusively services-related. The level of services deferred revenue is directly linked to the timing and term of service renewals, which can vary on a quarter-by-quarter basis.

我們的遞延收入餘額總額為 5.78 億美元，低於第一季的 5.97 億美元。提醒一下，我們的遞延收入餘額現在幾乎完全與服務有關。服務遞延收入的水平與服務續訂的時間和期限直接相關，每季可能會有所不同。

Accounts payable days were 59 days, up from 43 days in Q1, reflecting the timing of inventory receipts and payments. Capital expenditures for the quarter were $2.1 million.

應付帳款天數為 59 天，高於第一季的 43 天，反映了庫存收付的時間。該季度的資本支出為 210 萬美元。

Now turning to our outlook for the third quarter and beyond. We continue to closely monitor the impact of COVID-19 around the world. Local operating restrictions remain in flux, and it is unclear when and how these restrictions will finally be resolved. While we made good progress on supply chain and manufacturing during the quarter, we still have some work to do to fully return to normal lead time.

現在轉向我們對第三季及以後的展望。我們繼續密切關注新冠肺炎 (COVID-19) 在世界各地的影響。當地的營運限制仍在不斷變化，目前尚不清楚這些限制何時以及如何最終得到解決。雖然本季我們在供應鏈和製造方面取得了良好進展，但我們仍有一些工作要做才能完全恢復正常交貨時間。

On the gross margin front, we would reiterate our overall gross margin outlook of 63% to 65% with customer mix being the key driver. We expect to recognize some incremental COVID-related freight and supply chain costs in Q3 and Q4, which all other things being equal, would bound gross margins closer to the midpoint of our range.

在毛利率方面，我們重申我們的整體毛利率前景為 63% 至 65%，客戶組合是關鍵驅動因素。我們預計將在第三季和第四季認識到一些與新冠疫情相關的貨運和供應鏈成本增量，在其他條件相同的情況下，毛利率將接近我們範圍的中點。

On the spending side, we'll continue to manage spending and investments carefully, prioritizing key projects and customer engagements while benefiting from a natural COVID-related reduction in travel, marketing and related expenses. You should, however, expect to see us add investments back into the model as incremental revenue solidifies.

在支出方面，我們將繼續謹慎管理支出和投資，優先考慮關鍵項目和客戶參與，同時受益於與新冠病毒相關的旅行、行銷和相關費用的自然減少。然而，隨著增量收入的鞏固，您應該期望看到我們將投資重新添加到模型中。

Finally, our guidance for Q3 reflects our current understanding of COVID-19 and its impact on our business and supply chain. This is, however, an inherently uncertain situation, and we will need to continue to monitor and attempt to mitigate new challenges as the situation unfolds.

最後，我們對第三季的指導反映了我們目前對 COVID-19 及其對我們業務和供應鏈的影響的理解。然而，這是一種本質上不確定的情況，隨著情況的發展，我們需要繼續監測並嘗試減輕新的挑戰。

With all of this as a backdrop, our guidance for the third quarter, which is based on non-GAAP results and excludes any noncash stock-based compensation impacts and other nonrecurring items is as follows: revenues of approximately $570 million to $590 million, gross margin of 63% to 65%, operating margin of approximately 37%. Our effective tax rate is expected to be approximately 21.9% with diluted shares of approximately 79.6 million shares.

以此為背景，我們對第三季的指導（基於非公認會計準則業績，不包括任何非現金股票薪酬影響和其他非經常性項目）如下： 總收入約為 5.7 億至 5.9 億美元利潤率63%至65%，營業利益率約37%。我們的有效稅率預計約為 21.9%，稀釋後股份約為 7,960 萬股。

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

我現在將把電話轉回給柯蒂斯。柯蒂斯？

Thank you, Ita. We are now going to move to the Q&A portion of the Arista earnings call. (Operator Instructions)

謝謝你，伊塔。我們現在將進入 Arista 財報電話會議的問答部分。 （操作員說明）

Thank you for your understanding. Operator, please take it away.

感謝您的體諒。接線員，請把它拿走。

(Operator Instructions) Your first question comes from the line of Rod Hall from Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的 Rod Hall。

I wanted to start off with the revenue trends and just ask on the verticals, whether you're seeing -- since we didn't see the seasonality on the quarters last year, whether what you've seen here is normal or similar to what you observed last year in terms of the cloud and other verticals movement from Q1 to Q2. And then secondly, I wondered if you guys could comment on the supply impact. I know that you said there was -- or we calculated about $14 million of impact last quarter. Are those -- has that all come back to you here? And is there any further ongoing impact on revenues in the guidance from supply chain issues? Or are those mostly solved now?

我想從收入趨勢開始，然後問一下垂直領域，您是否看到了——因為我們沒有看到去年各季度的季節性，您在這裡看到的情況是否正常或類似於您觀察到去年第一季度到第二季的雲和其他垂直行業的變化。其次，我想知道你們是否可以對供應影響發表評論。我知道您說過有——或者我們計算出上個季度的影響約為 1,400 萬美元。那些──你都想起來了嗎？供應鏈問題的指導對收入是否有任何進一步的持續影響？或者說現在大部分都已經解決了嗎？

Rod, this is Jayshree. So in terms of seasonality, I think things got better in Q2 than we feared from COVID, in general. We obviously experienced a very strong comeback from the cloud titans. But we also had strong traction on all the other 4 verticals as well. And they pretty much continued in a fairly linear fashion throughout the quarter.

羅德，這是傑什裡。因此，就季節性而言，我認為第二季的情況總體上比我們對新冠疫情的擔憂要好。顯然，我們經歷了雲巨頭的強勢回歸。但我們在其他 4 個垂直領域也擁有強大的吸引力。在整個季度中，它們幾乎以相當線性的方式持續進行。

And in terms of manufacturing, we are still experiencing inventory issues. We have very long lead times. We have improved -- we are improving them. We look to improve them, but we don't expect it to be back to normal until probably Q4.

在製造方面，我們仍然遇到庫存問題。我們的交貨時間很長。我們已經改進了——我們正在改進它們。我們希望改進它們，但我們預計它可能要到第四季度才能恢復正常。

Okay. Are you still getting a little bit of drag on revenues, Jayshree, because of the supply chain stuff, but maybe it sounds like maybe not as much as last quarter.

好的。 Jayshree，由於供應鏈問題，您的收入是否仍然受到一點拖累，但也許聽起來沒有上季度那麼嚴重。

Yes. We're improving from Q1 to Q2. We'll improve again from Q2 to Q3, but we won't get back to normal till Q4.

是的。我們從第一季到第二季都在進步。從第二季度到第三季度，我們會再次有所改善，但要到第四季度才能恢復正常。

Your next question comes from the line of Erik Suppiger from JPM Securities (sic) [JMP Securities].

您的下一個問題來自 JPM 證券（原文如此）[JMP 證券] 的 Erik Suppiger。

Back on the supply chain, did it prevent you from shipping from upside -- further upside in the quarter? Or were you able to -- because I think you had indicated last that you had inventory -- sufficient inventory for the June quarter. Did your supply chain prevent you from being able to make the shipments that you anticipated to make?

回到供應鏈，它是否阻止了您在本季進一步上漲的運輸？或者你是否能夠 - 因為我認為你最後表示你有庫存 - 六月季度的庫存充足。您的供應鏈是否阻止您如預期出貨？

So given the guide we gave, Erik, we were able to make a quarter. But if you're asking, could we have made more? We could have made more if we had more inventory.

因此，根據我們提供的指南，埃里克，我們能夠賺到四分之一。但如果你問，我們可以做得更多嗎？如果我們有更多庫存，我們本來可以生產更多。

Your next question comes from the line of Jason Ader from William Blair.

您的下一個問題來自威廉布萊爾 (William Blair) 的傑森阿德 (Jason Ader)。

Can you talk about the demand environment for the enterprise data center? I'm not talking specifically about campus but about data center. It seems like you had another good quarter there. Just a little bit of why you're winning there? What are some of the learnings, Jayshree, that you've had over the last several years selling into that market? Because I know it's a pretty competitive market with a major incumbent. So just talk about your success there, the environment and why you're winning.

能談談企業資料中心的需求環境嗎？我不是專門談校園，而是在談論資料中心。看起來你又度過了一個美好的季度。只是一點點為什麼你會在那裡獲勝？ Jayshree，您在過去幾年向該市場銷售產品時學到了什麼？因為我知道這是一個競爭非常激烈的市場，有一個主要的現有企業。因此，請談談您在那裡的成功、環境以及您獲勝的原因。

Yes. No, I think we're winning because of really 3 reasons: quality and support. Our customers are seeing us as being superior to our peers in every which way in that department. Our innovation is getting stronger and stronger. And then our market recognition, both from industry analysts as our customers, and customers tell other customers. So many of these enterprises were aware of us and are now starting to make real decisions on us, both existing ones with greater land-and-expand opportunities as well as new ones.

是的。不，我認為我們之所以獲勝是因為三個原因：品質和支援。我們的客戶認為我們在該部門的各個方面都優於同行。我們的創新能力越來越強。然後我們的市場認可，既來自產業分析師作為我們的客戶，也來自客戶告訴其他客戶。這些企業中有很多都了解我們，現在開始對我們做出真正的決定，無論是擁有更多土地和擴張機會的現有企業還是新企業。

Our sales cycles in the enterprises can be long. And so this is really work in progress that's been going on for several quarters that we're seeing materialize in Q2. This may sound obvious, but also another aspect of our enterprise's success is that the familiar customers are deepening their expansion with us for many more use cases. So not only are we winning new projects, but we're also getting more land-and-expand opportunity.

我們在企業的銷售週期可以很長。因此，這確實是一項正在進行的工作，已經持續了幾個季度，我們看到在第二季度實現。這聽起來似乎是顯而易見的，但我們企業成功的另一個方面是，熟悉的客戶正在與我們一起深化擴展，以實現更多用例。因此，我們不僅贏得了新項目，而且還獲得了更多土地和擴張機會。

So I think we've always pointed to the enterprise being our shining star and our brightest opportunity, and now we're seeing that across the board in all the regions.

所以我認為我們一直指出企業是我們閃亮的明星和我們最光明的機會，現在我們在所有地區都看到了這一點。

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

您的下一個問題來自摩根士丹利的 Meta Marshall。

I just wanted to kind of get an update on how you thought COVID was changing how Tier 2s were thinking about build versus leveraging public cloud, just given the acceleration some of them might have seen due to kind of COVID or work-from-home.

我只是想了解一下您認為新冠疫情如何改變第 2 層對構建與利用公共雲的思考方式的最新信息，考慮到他們中的一些人可能會因為新冠肺炎或在家工作而看到加速。

Yes. No, I think there's 2 ways to really look at Tier 2 cloud, Meta. Sometimes, they make investments. And from a cost perspective, they can very much justify their investments as much more cost-effective in the long run than going to the public cloud. But other times, they have a hybrid combination of also going to the public cloud to manage their cost structure. So you see a bit of both. It's very cyclical in nature, and it really depends on which Tier 2 cloud you're talking about.

是的。不，我認為有兩種方法可以真正了解第 2 層雲：Meta。有時，他們進行投資。從成本角度來看，從長遠來看，他們的投資比公有雲更具成本效益，因此他們的投資非常合理。但其他時候，他們採用混合組合，也可以使用公有雲來管理其成本結構。所以你會看到兩者都有一點。它本質上是週期性的，這實際上取決於您所談論的是哪種第二層雲。

So some start on their own cloud and continue to grow their workloads, and we experienced some of that in Q2. And others slow down a little bit, and we experienced some of that, too, throughout the year. We did have some delayed decisions that we hope we can pick up in the second half of the year.

因此，有些人從自己的雲端開始，並繼續增加他們的工作負載，我們在第二季經歷了其中的一些情況。其他人的速度會慢一些，我們全年也經歷了一些這樣的情況。我們確實有一些延遲的決定，我們希望能夠在今年下半年做出決定。

I think a piece of the Tier 2 cloud that's doing well for us is especially CDN. With the work-from-home, as you rightly mentioned, the aggregate of all that video bandwidth is starting to create investments, not that the video itself is large, but all of the 4K and 8K flows add up to an aggregate bandwidth.

我認為第 2 層雲中對我們來說表現良好的一個部分尤其是 CDN。正如您正確提到的，透過在家工作，所有視訊頻寬的總和開始創造投資，不是影片本身很大，而是所有 4K 和 8K 串流加起來形成總頻寬。

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

您的下一個問題來自 Evercore 的 Amit Daryanani。

I guess, Jayshree, a question to you. In the last couple of quarters, we've seen your revenue decline 10% to 12% year-over-year, while hyperscale CapEx has continued to go higher. And I totally realize hyperscale CapEx is a lot more things than just Arista spend. But as we get into the back half of this year, the expectation is hyperscale CapEx will slow down somewhat. And in that context, should we feel comfortable that Arista's revenue decline starts to diminish and shrink as we exit the year? Or how do we think about that?

我想，Jayshree，有個問題想問你。在過去的幾個季度中，我們發現您的收入年減了 10% 至 12%，而超大規模資本支出卻持續走高。我完全意識到超大規模資本支出不僅僅是 Arista 支出。但隨著進入今年下半年，預計超大規模資本支出將放緩。在這種情況下，當我們今年結束時，Arista 的收入下降開始減少和縮小，我們是否應該感到放心？或者我們如何看待這個問題？

Well, Amit, first of all, you're absolutely right to say there is no one-to-one correlation between network CapEx and the massive cloud titan CapEx. But if you look at the cloud titan CapEx that was reported, some are very high, some are strong, some are flat and some are down. And so I think the titans did experience a stronger spend overall, and that did affect our Q2.

好吧，阿米特，首先，您說網路資本支出和龐大的雲端巨頭資本支出之間不存在一對一的相關性，這是絕對正確的。但如果你看看所報告的雲端巨頭資本支出，你會發現有些非常高，有些很強，有些持平，有些則下降。因此，我認為巨頭確實經歷了整體支出的強勁成長，這確實影響了我們的第二季。

But as we said in the last call and I want to reiterate, we originally thought we'd be flat to down. Because of the strong CapEx, we now feel good about flattish, which is an improvement from down. So of course, we'll monitor this in the second half, but we believe that the overall for the year will be flat for cloud titan.

但正如我們在上次電話會議中所說的那樣，我想重申一下，我們最初認為我們的業績會持平甚至下跌。由於資本支出強勁，我們現在對扁平化感覺良好，這是對向下的改進。當然，我們將在下半年對此進行監控，但我們相信雲端巨頭今年的整體表現將持平。

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

您的下一個問題來自 Cowen 的 Paul Silverstein。

Jayshree, relative to the long-standing concern among investors thought you're all getting kicked off, to one extent or another, whether from internally developed/white box solutions or from third-party competitors like Cisco and Arista, specifically, obviously, referring to cloud titans. Any insight you can share with us regarding your competitive position? Any changes for better or worse?

Jayshree，相對於投資者長期以來的擔憂，他們認為無論是從內部開發/白盒解決方案還是從思科和Arista 等第三方競爭對手，在某種程度上，你們都被踢出了局，具體來說，顯然是指雲泰坦。您可以與我們分享有關您的競爭地位的任何見解嗎？有什麼改變是好是壞？

Thanks, Paul. No change for better or worse in the quarter. As you know, Arista introduced the Switch Abstraction Interface. So we continue to have a long history of commitment on Linux, EOS SDK, containerized EOS, virtual EOS, disag EOS, SONiC support, FBOSS support, O&L support. So we embrace white boxes, and customers embrace Arista's blue boxes, too.

謝謝，保羅。本季沒有好壞變化。如您所知，Arista 引入了交換器抽象介面。因此，我們在 Linux、EOS SDK、容器化 EOS、虛擬 EOS、disag EOS、SONiC 支援、FBOSS 支援、O&L 支援方面繼續有著悠久的承諾。因此，我們擁抱白盒，客戶也擁抱 Arista 的藍盒。

Jayshree, just to be clear, I'm not just referring to decisions that impacted your quarter revenue but decisions that might have been made that could impact the latter half of this year or next year for that matter.

Jayshree，需要澄清的是，我指的不僅是影響季度營收的決策，還指可能做出的可能影響今年下半年或明年的決策。

Yes. We don't -- I don't -- maybe Anshul, if you're there, we can get you to give some color, but we don't see any change in the second half. Go ahead, Anshul.

是的。我們不——我不會——也許安舒爾，如果你在的話，我們可以讓你給出一些顏色，但我們看不到下半場有任何變化。繼續吧，安舒爾。

I would say there's a lot of noise around this topic and obviously created by parties that don't have much to lose. But look, we are engaged, as Jayshree mentioned, multiple projects, including a lot of the road map for our customers, right? It's not just a box they have to choose. They have to build a network that scales for their business, and we are very heavily involved in their 2021 and 2022 architectures. So the high-level message I would give is, don't worry, we will be fine.

我想說的是，圍繞這個主題有很多噪音，而且顯然是由那些沒有太多損失的政黨製造的。但是，正如 Jayshree 所提到的，我們正在參與多個項目，包括為我們的客戶制定許多路線圖，對吧？他們必須選擇的不僅僅是一個盒子。他們必須建立一個可擴展其業務的網絡，我們大力參與他們的 2021 年和 2022 年架構。因此，我要傳達的高層訊息是，別擔心，我們會沒事的。

Anshul, I apologize, but is that "don't worry" notwithstanding share loss you'll be fine because there's so many projects you'll grow, notwithstanding others gaining some ground? Or are you saying that there will be incremental projects annual and not lose share?

安舒爾，我很抱歉，但是“不用擔心”，儘管股票損失了，但你會沒事的，因為有很多項目你會發展，儘管其他項目取得了一些進展？還是你是說每年都會有增量項目並且不會失去份額？

Well, I think we can continue in detail. But I think the message you're getting is our fundamental thesis is unchanged. We're not seeing architectural shifts or competitive losses. In fact, recent data validates that we're #1 spots for the third consecutive year on 100-gig. So -- and our share is increasing every quarter.

嗯，我想我們可以繼續詳細討論。但我認為你得到的資訊是我們的基本論點沒有改變。我們沒有看到架構轉變或競爭損失。事實上，最近的數據證實我們連續第三年在 100 場演出中排名第一。因此，我們的份額每個季度都在增加。

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

您的下一個問題來自花旗集團的 Jim Suva。

Maybe if we just look even longer term, with 400-gig coming up, yet we have a coronavirus pandemic that we're working through, too. And it's harder to have teas and coffees with people in person and such. Any visibility you have on 400-gig coming, whether it be discussions? Are they more fruitful, taking longer, testing labs? How should I think about that?

也許如果我們著眼更長遠，即將有 400 場演出，但我們也正在應對冠狀病毒大流行。與人面對面喝茶喝咖啡之類的事情就更難了。您對即將到來的 400 場演出有何了解，無論是討論嗎？它們是否更富有成果、花費更長的時間來測試實驗室？我該如何思考這個問題？

Right. Thanks, Jim. Well, I think, as we've always told you, 400-gig trials began at the end of last year. But we -- as we said last quarter, we will be delayed from 2020 to some of them may go into 2021 due to all the things you mentioned, COVID-related slowdown. You just can't deploy 400-gig over a virtual collaboration conference. You have to do new product qualification. You have to get the optics in.

正確的。謝謝，吉姆。嗯，我想，正如我們一直告訴你的那樣，400 場演出的試驗於去年年底開始。但正如我們上季度所說，由於您提到的與新冠病毒相關的經濟放緩，我們將從 2020 年推遲到其中一些可能進入 2021 年。您無法在虛擬協作會議上部署 400 場會議。你必須做新產品資格認證。你必須把光學器件放進去。

That said, we're very pleased with our progress in 400-gig. And we're winning tons of customers. In fact, to date, we won over 50 customers in 400-gig. So we're pleased with the progress, but many of them are in trials and early deployment cycles.

也就是說，我們對 400 場演出的進展感到非常滿意。我們正在贏得大量客戶。事實上，迄今為止，我們已在 400 場演出中贏得了 50 多個客戶。因此，我們對進展感到滿意，但其中許多仍處於試驗和早期部署週期中。

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

你的下一個問題來自富國銀行的 Aaron Rakers。

I just want to go into the numbers a little bit. Ita, can you help us understand or appreciate the variables to gross margin? At 59.5% of product gross margin, it looks like it's the lowest level we've seen. And I think, if my memory is correct, your mix between the verticals really didn't change sequentially. So can you just unpack the impacts that you're seeing on the gross margin and how we think about product gross margin going forward?

我只想簡單介紹一下數字。 Ita，您能幫助我們了解或了解毛利率的變數嗎？產品毛利率為 59.5%，看起來是我們見過的最低水準。我想，如果我的記憶是正確的，垂直領域之間的混合確實沒有按順序改變。那麼，您能否解釋一下您所看到的對毛利率的影響以及我們如何看待未來的產品毛利率？

Yes. I mean I think there's -- the biggest driver is still the customer mix, right? But you're right, it wasn't that dislocated between Q1 and Q2. I think if you look at last quarter, we had talked a lot about being able to sell some inventory that previously we thought we couldn't sell or we wouldn't sell, and that has given us some pickups on the gross margin side. All of that type of stuff will flow through product margins, not -- obviously, not through the services.

是的。我的意思是，我認為最大的驅動因素仍然是客戶組合，對吧？但你是對的，第一季和第二季之間並沒有那麼錯位。我想，如果你看看上個季度，我們已經談論了很多關於能夠出售一些以前我們認為無法出售或不會出售的庫存的問題，這讓我們的毛利率有所回升。所有這些類型的東西都將透過產品利潤流動，而不是——顯然，不會透過服務。

So now as you think about this quarter and honestly, into Q3 and Q4, we have some incremental COVID costs that we're also covering around freight, logistics, just supply chain costs of kind of prioritizing supply over cost structure, right? So we are going to carry some burden of cost around those activities through the end of the year. And that will all show up in that product line, right?

因此，現在當您考慮本季度時，老實說，進入第三季度和第四季度，我們有一些增量的新冠成本，我們還涵蓋了貨運、物流以及供應鏈成本，即供應優先於成本結構，對嗎？因此，到今年年底，我們將承擔這些活動的一些成本負擔。這一切都會出現在該產品線中，對嗎？

So I think that's -- but we'll move around a bit even outside of the -- just the normal kind of customer mix that we've been seeing historically.

所以我認為這是——但我們會在——我們歷史上看到的正常的客戶組合之外進行一些調整。

I guess, just to be clear, there's been no change in pricing dynamics competitively in the market that you're seeing.

我想，需要澄清的是，您所看到的市場競爭定價動態沒有改變。

I mean there's always puts and takes on pricing. That's how the market works. But nothing out of the ordinary or nothing -- anything new or different, right?

我的意思是定價總是有變動的。市場就是這樣運作的。但沒有什麼不尋常的，或者什麼都沒有——任何新的或不同的，對吧？

And just to clarify what Ita said, we are experiencing COVID-related greater cost structures. No change in competitive or pricing dynamics.

為了澄清伊塔所說的，我們正在經歷與新冠病毒相關的更大的成本結構。競爭或定價動態沒有變化。

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

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

Jayshree, I appreciate you giving the guidance comment on the cloud titans. I was hoping you could clarify what baseline you're using when you talk about flat given that you had the significant revenue recognition last year. I guess the number we had been thinking you meant was a base of about $840 million in 2019. But I want to make sure I understand what you mean by flat, what you're comparing it to.

Jayshree，非常感謝您對雲泰坦提供的指導性評論。鑑於去年您確認了可觀的收入，我希望您能澄清當您談論扁平化時所使用的基準。我想我們一直認為您所說的數字是 2019 年約 8.4 億美元的基數。

Yes. No, that's actually a great question, Simon. I was just simply computing year-over-year relative to the revenue we've given, but I didn't get into the color of deferred. Ita, you want to help me with that?

是的。不，這實際上是一個很好的問題，西蒙。我只是簡單地計算了相對於我們給出的收入的逐年計算，但我沒有涉及遞延的顏色。伊塔，你想幫我嗎？

Yes. I mean that commentary, Simon, is very much around demand, right? So it's not adjusting as the deferred. So if you think about the cloud business year-over-year and you say, okay, it was -- the demand was flat, you still need to adjust out the $118 million of deferred on top of that, right? So you will still see a decline on a revenue basis for cloud year-over-year even with the demand, as Jayshree described, being flat.

是的。我的意思是，西蒙，評論非常圍繞著需求，對嗎？所以它沒有按照延期進行調整。因此，如果你逐年考慮雲端業務，你會說，好吧，需求持平，除此之外你仍然需要調整 1.18 億美元的延期，對吧？因此，正如 Jayshree 所描述的那樣，即使需求持平，您仍然會看到雲端的收入比去年同期下降。

Could you tell us what dollar value you're using, just to keep our lives simple?

為了讓我們的生活變得簡單，您能告訴我們您使用的美元價值是多少嗎？

At the top of my head, no. But if you take the percentages that we gave you roughly for the mix of the business and then adjust the deferred, you'll get there, right? I mean, you know how much the deferred, it's about $118 million, and you know what the split of the business was on a demand basis. So you can get there. We can take it up afterwards if you want, but it's pretty straightforward.

在我的頭頂上，沒有。但如果你採用我們為你提供的業務組合的粗略百分比，然後調整遞延，你就會達到目標，對嗎？我的意思是，你知道延期的金額是多少，大約是 1.18 億美元，你也知道根據需求劃分的業務是多少。這樣你就可以到達那裡。如果您願意，我們可以稍後再討論，但這非常簡單。

Our next question comes from the line of Woo Jin Ho from Bloomberg.

我們的下一個問題來自彭博社的 Woo Jin Ho。

So it seems like you may have a new competitor in the switching market, Nokia. And it's not a competition question, more so of a market demand question. I'm just curious if the telco providers have changed their purchasing or their thoughts around on switching? Because I know that's been a sore spot for you guys for quite some time now. I'm wondering if 5G is finally coming into fruition for switching business for you.

所以看來你在交換市場上可能有一個新的競爭對手，諾基亞。這不是競爭問題，更是市場需求問題。我只是好奇電信業者是否改變了他們的採購或他們對轉換的想法？因為我知道這已經成為你們的痛處已經有一段時間了。我想知道5G是否終於能夠為您實現業務切換。

Well, I think there's very few details on exactly what the product is, but Nokia is certainly a good service provider company. And I believe while their entry into the data center as a switch player will be difficult and will be tough to compete, and I don't really see any 400-gig products available despite the marketing. We do think -- and we have respect for them as a service provider, and especially combined with optical company, they might find some use cases there.

嗯，我認為關於該產品到底是什麼的細節很少，但諾基亞無疑是一家優秀的服務提供者公司。我相信，雖然他們作為交換機玩家進入資料中心將會很困難並且很難競爭，而且儘管進行了行銷，但我並沒有真正看到任何 400 千兆產品可用。我們確實認為 - 我們尊重他們作為服務提供者，特別是與光學公司結合，他們可能會在那裡找到一些用例。

So I don't say we'll see -- like you rightly pointed out, I don't think we'll see a direct competition with them, but they may find some use cases combining with optical.

所以我並不是說我們會看到——就像你正確指出的那樣，我認為我們不會看到與他們的直接競爭，但他們可能會發現一些與光學相結合的用例。

Well, is there an opportunity for that telco data center to finally emerge when 5G starts rolling out for you guys?

那麼，當 5G 開始向你們推出時，電信資料中心是否有機會最終出現？

We are already seeing opportunity with the telco data center independent of 5G rolling out. But we certainly see that as independent of Nokia, that's a very real use case that Arista today participates strongly in the service provider segment.

我們已經看到了獨立於 5G 推出的電信資料中心的機會。但我們當然看到，作為獨立於諾基亞的產品，這是 Arista 今天大力參與服務提供者領域的一個非常真實的用例。

Your next question comes from the line of Jeff Kvaal from Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Jeff Kvaal。

I was hoping to ask about the trajectory in cloud titans. And traditionally, of course, obviously, you all have been very smooth with growth in the cloud titan vertical, and the last couple of years has been a little less so. I think many of us have been hoping that 2021 would be back to the smooth trajectory. And I'm wondering if the pushout in 400-gig defers that a little bit. Or we should be just a little careful about how we look at 2021, given that 400-gig might come late in the first half or even the middle of the year rather than at the top of the year?

我希望能詢問雲泰坦的軌跡。當然，傳統上，顯然，你們在雲端巨頭垂直領域的成長都非常順利，而過去幾年的情況則有些不那麼順利。我想我們很多人都希望 2021 年能回到平穩的軌道。我想知道 400 場演出的推出是否會稍微推遲一點。或者我們應該稍微謹慎地看待 2021 年，因為 400 場演出可能會在上半年晚些時候甚至年中而不是在年末出現？

Thank you, Jeff. I'm going to say a few words and pass it to Anshul. When you look at 400-gig, as I said, that's not one you can buy over a cup of coffee. So there's an intense level of testing and proof-of-concept labs that go on. And while our cloud visibility and demand is much better understood for 2020, I think it will still take time to make this migration from 100- to 400-gig. And different cloud titans are in different stages of that migration.

謝謝你，傑夫。我要說幾句話然後轉告安舒爾。正如我所說，當你看到 400 場演出時，你會發現這不是一杯咖啡就能買到的。因此，高強度的測試和概念驗證實驗室正在進行中。雖然我們對 2020 年的雲端可見性和需求有了更好的了解，但我認為從 100 兆遷移到 400 兆仍需要時間。不同的雲端巨頭處於遷移的不同階段。

They are certainly all in varying forms of trials. But I think you're right to say some of them will get off to a good start in 2020, late 2021, and some of them will take longer. I think what I can confidently tell you is the combination of 100-gig and 400-gig is going to be the mainstream deployment for most of our customers. Anshul, you want to add to that on the 400-gig?

他們當然都在接受不同形式的考驗。但我認為你的說法是對的，其中一些會在 2020 年、2021 年末有一個良好的開端，而另一些則需要更長的時間。我想我可以自信地告訴您，100 GB 和 400 GB 的組合將成為我們大多數客戶的主流部署。 Anshul，您想在 400 場演出中添加這一點嗎？

Absolutely. As Jayshree mentioned, there's no real stall effect for 400 in the cloud because the cloud needs to deploy capacity. They'll buy whatever is available in the market and qualify it today.

絕對地。正如 Jayshree 所提到的，雲端中的 400 並沒有真正的停滯效應，因為雲端需要部署容量。他們會購買市場上現有的任何產品，並立即進行鑑定。

The market is going to bifurcate, going from 100-gig into 200-gig, 400-gig and 2x400-gig in the next 1 to 2 years. And I think we will participate very well in all of these form factors. But again, the cloud is not waiting. They can just build whatever they didn't have today.

市場將出現分化，在未來 1 到 2 年內從 100 GB 發展到 200 GB、400 GB 和 2x400 GB。我認為我們將很好地參與所有這些形式因素。但同樣，雲並沒有等待。他們可以建造任何他們今天沒有的東西。

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

您的下一個問題來自摩根大通的 Samik Chatterjee。

Jayshree, you mentioned you're seeing a strong comeback from the cloud earlier. And I'm just wondering how you're feeling related to visibility in terms of getting back to more of a mid-teens growth rate and spending from cloud customers that you had communicated at the 2019 Analyst Day. And how does this set us up for 2021, where I think consensus customers seem to be largely embedding in a double-digit growth rate with the cloud?

Jayshree，您提到您早些時候看到了雲的強勁復甦。我只是想知道，對於您在 2019 年分析師日所傳達的雲端客戶成長率和支出恢復到十幾歲左右的可見性，您有何感受。這對我們的 2021 年有何影響？

Thanks, Samik. I don't think I'm ready to say we're going to grow double digits or mid-teens on the cloud. Our numbers are so large. We'll be happy to grow in the cloud period, right? And I think our faster growth and traction is clearly coming from the enterprise. And -- but the large numbers are clearly being contributed from the cloud. So time will tell, but there's too many variables to make a direct correlation for that in 2021.

謝謝，薩米克。我認為我還沒有準備好說我們的雲端業務將實現兩位數或十幾歲的成長。我們的人數如此龐大。我們會很高興在雲端時代成長，對嗎？我認為我們更快的成長和牽引力顯然來自企業。而且——但大量的數據顯然是由雲端貢獻。所以時間會證明一切，但變數太多，無法與 2021 年的情況直接相關。

Yes. It's a little early to start trying to call a 2021 view just yet with everything -- with all the uncertainty that there is, right?

是的。現在就開始嘗試對 2021 年的一切進行展望還為時過早——考慮到存在的所有不確定性，對吧？

Your next question comes from the line of Tal Liani from Bank of America.

您的下一個問題來自美國銀行的塔爾·利亞尼 (Tal Liani)。

Hopefully, you can hear me okay.

希望你能聽到我的聲音。

Yes, we can.

我們可以。

Yes.

是的。

Very clear.

非常清楚。

I'm going back to a lot of the questions that kind of danced around it. Last year, if I look at Q1, Q2 and Q3, you grew year-over-year 26%, 17% and 16%. Pretty nice growth. And this quarter, yes, you beat the numbers, but year-over-year growth is double-digit decline. So I'm trying to understand the color of the numbers beneath the surface, meaning, last quarter, you provided us with the numbers for the cloud vertical. And I was able to see what was the growth ex cloud vertical. I'm trying to do the same thing to see where is the strength, where is the weakness and get some color around it.

我將回到圍繞它的許多問題。去年，如果我看看第一季、第二季和第三季度，年增了 26%、17% 和 16%。相當不錯的成長。這個季度，是的，你擊敗了數字，但同比增長卻出現了兩位數的下降。因此，我試圖了解表面之下數字的顏色，這意味著上個季度，您向我們提供了雲垂直方向的數字。我能夠看到雲垂直領域的成長情況。我正在嘗試做同樣的事情，看看哪裡是優勢，哪裡是劣勢，並在其周圍塗上一些顏色。

So can you help us with 2 things? First is what's the growth with and without cloud? Just so we understand the growth in the other verticals? And second, can you give us color on the profile of the cloud growth? Meaning, is this an existing customer that started to deploy new architectures, as you mentioned in the past and because of that, the demand is going up? Or is it just demand just after a decline, you see kind of snapback in demand, et cetera? I'm trying to see if there is any big trend behind the recovery in cloud.

那你能幫我們做兩件事嗎？首先是有雲和沒有雲的成長情況如何？只是為了讓我們了解其他垂直領域的成長嗎？其次，您能為我們介紹一下雲端成長的概況嗎？意思是，正如您過去提到的那樣，這是否是一個開始部署新架構的現有客戶，因此需求正在上升？或者只是在下降之後的需求，你看到需求的快速回升，等等？我想看看雲復甦背後是否有任何大趨勢。

Yes. I mean, Tal, I don't think we're going to go kind of down to that level of detail. I think if you take kind of the year-over-year growth, you have about 6% of that. That relates to the deferred revenue being recognized last year. You have a step-down on Facebook, which I think we've talked about before, right? They were very active in the first half through Q3 actually of last year. And then we saw that step down in the fourth quarter, right? And we know they're running at a lower level. We've shared that previously through this year, right?

是的。我的意思是，塔爾，我認為我們不會深入到那麼詳細的程度。我認為如果你考慮一下同比增長，你會發現大約有 6% 的增長。這與去年確認的遞延收入有關。你在 Facebook 上有一個下台，我想我們之前已經討論過，對吧？事實上，他們從去年上半年到第三季都非常活躍。然後我們在第四季度看到了這一點，對嗎？我們知道他們的運行水平較低。我們今年之前已經分享過這一點，對嗎？

So those are kind of your big drivers on the cloud without us trying to get into different use cases and products and stuff because we're not going to do that. But those are the key kind of drivers around the cloud.

因此，這些都是雲端上的重要驅動因素，我們不會嘗試進入不同的用例、產品和其他東西，因為我們不會這樣做。但這些都是雲端的關鍵驅動因素。

And then we've seen strength in some of the other verticals. Jayshree gave the mix of the verticals again this quarter. There was nothing that unusual in the mix versus the breakdown that we gave you on the last call in the quarter just gone in Q2, right?

然後我們看到了其他一些垂直領域的實力。 Jayshree 本季再次提供了垂直領域的組合。與我們在第二季度剛剛過去的季度最後一次電話會議中向您提供的細分相比，這種組合沒有什麼不尋常的，對吧？

So enterprise continued to do well, continued to grow. And cloud was better than we had expected. But still, when you look at it over the year, it's not a breakout. It's solidly kind of flattish on a demand basis now versus being down when we thought coming into the year.

所以企業不斷做得好，不斷成長。雲端比我們預期的要好。但是，當你回顧這一年的情況時，你會發現這並不是一個突破。與我們認為進入今年時的需求相比，現在的需求基本上持平。

And any color maybe -- and my second question, any color about the growth in the cloud vertical?

可能是任何顏色——我的第二個問題，關於雲垂直增長的任何顏色？

I mean I think you can get there on the math, right? If you take out the deferred and you look at the growth on the -- certainly on the revenue basis, you can get there, right? We're saying for the year, we think the demand will be flattish for the year, right? So I'm not sure there's much else that we can give you at this point.

我的意思是我認為你可以透過數學達到目標，對嗎？如果你去掉遞延的費用，然後看看收入的成長──當然是在收入的基礎上，你就能實現這個目標，對嗎？我們說的是今年，我們認為今年的需求將會持平，對嗎？所以我不確定目前我們還能為您提供什麼。

What I was referring to was in the past, you noted that some of the declines were because customers were looking to deploy new types of servers. And as a result, they reduced spending. I'm trying to understand whether there is any correlation between that part and between the growth in cloud. Is it just a reversion to the mean? Or is there any big trend beneath it and new architectures are deployed, et cetera, and that's why demand is going up?

我指的是過去，您指出部分下降是因為客戶希望部署新型伺服器。結果，他們減少了支出。我試圖了解這部分與雲端的成長之間是否存在任何相關性。這只是回歸均值嗎？或者它背後是否有任何大趨勢，以及部署新架構等等，這就是需求上升的原因？

So look, we have a number of use case expansion, Tal, that's in 2020. And usually, they come in multiple flavors, either it's adding an additional spine layer, where they're building a super spine or regional spine. It could be expanding racks to increase their server density on the network IO. And these 2, especially -- or they could be -- they're building out new data centers. So these are the 3 most popular use cases we see. And we definitely saw that this quarter, and we expect to see more of that this year.

所以，看，我們有很多用例擴展，Tal，那是在 2020 年。它可以擴展機架以增加網路 IO 上的伺服器密度。尤其是這兩個——或者他們可能是——他們正在建立新的資料中心。這是我們看到的 3 個最受歡迎的用例。我們在本季度確實看到了這一點，並且預計今年會看到更多。

Your next question comes from the line of Alex Kurtz from KeyBanc.

您的下一個問題來自 KeyBanc 的 Alex Kurtz。

This is Michael on for Alex. As we enter the second half of the year and we start to get the OpEx level for FY '21, I guess, how would you start to think about the timing of fiscal '21 on leverage and the return to more normalized growth?

這是邁克爾替亞歷克斯發言。當我們進入今年下半年，我們開始獲得 21 財年的營運支出水準時，我想，您將如何開始考慮 21 財年槓桿率和回歸更正常化成長的時機？

Yes. I mean, I don't know that you should expect us to drive a ton of leverage. I think we talked about kind of reinvesting and bringing back some of the investments that we talked about taking out last quarter as we see revenue solidify and revenue growth solidify. So I think the operating margin targets that we've out there in the long-term model is roughly 35%, plus or minus. We guided 37% for Q3. So I don't know that we're looking to drive operating margins that are much higher than that. So we'll continue to invest if we're fortunate to see kind of top line growth.

是的。我的意思是，我不知道你應該期望我們發揮大量槓桿作用。我認為我們討論了再投資，並收回了上個季度我們討論過的一些投資，因為我們看到收入鞏固和收入成長鞏固。因此，我認為我們在長期模型中設定的營業利潤率目標大約為 35%，上下浮動。我們對第三季的預期為 37%。所以我不知道我們是否希望提高營業利益率。因此，如果我們有幸看到收入成長，我們將繼續投資。

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

你的下一個問題來自 Piper Sandler 的 James Fish。

Congrats on the quarter. But I just want to understand where you mainly saw the traction on the campus side, specifically on from the geos, given what's going on lately in this environment because most of those really aren't sitting at a campus anymore. And if I can just sneak in one related to this. Were there any pushouts related to cloud titans? I just want to understand correctly if the pushouts were primarily just related to cloud titans internationally. Is that the right way to think about it? Or was it something else?

恭喜本季。但我只是想了解，考慮到最近在這種環境中發生的事情，您主要在哪裡看到了校園方面的吸引力，特別是來自地理的吸引力，因為大多數人實際上不再坐在校園裡了。如果我能偷偷地插一篇與此相關的內容。是否有任何與雲端巨頭相關的推出？我只是想正確理解這些退出是否主要與國際上的雲端巨頭有關。這是正確的思考方式嗎？還是別的什麼？

Okay. Let me understand -- I get confused when there's more than one question. So let's start with the campus first. So your question was how did we achieve our goals when nobody is in the office. Quite simply, when nobody is in the office is everybody's making planning decisions. It's easier to install them in the office because no one is there to interrupt with it.

好的。讓我明白——當有多個問題時我會感到困惑。那我們先從校園開始吧。所以你的問題是，當辦公室沒人時，我們如何實現我們的目標。很簡單，當沒有人在辦公室時，每個人都在製定計劃決策。將它們安裝在辦公室會更容易，因為沒有人會打擾它。

So what we found is that the engagements we've had with both existing customers and new prospects in 2019 really helped us achieve our first year goal through the first [2 years]. And there was very strong demand in -- and I can't even point to a theme on verticals. It ranged all the way from mid-market enterprise to some of our large customers who are familiar with us, who really influenced our decision to be in the campus. And one of the main reasons they want us in the campus is single EOS, high-quality, one cloud vision so -- and then one ability to manage both your wired and WiFi.

因此，我們發現，2019 年我們與現有客戶和新潛在客戶的互動確實幫助我們在前 [2 年] 中實現了第一年的目標。需求非常強烈——我甚至無法指出垂直行業的主題。它的範圍從中端市場企業到一些熟悉我們的大客戶，他們真正影響了我們進入園區的決定。他們希望我們進入校園的主要原因之一是單一 EOS、高品質、一種雲端願景，以及一種管理有線和 WiFi 的能力。

What was your question, James, on the cloud pricing?

James，您對雲端定價有什麼疑問？

I just wanted to make sure I was thinking about it correctly with the pushout related -- it sounded like you guys said it was related to cloud titans internationally. Is that correct? I mean...

我只是想確保我正確地考慮了與推出相關的問題——聽起來你們說這與國際上的雲端巨頭有關。那是對的嗎？我是說...

Oh, no. No, no. What we tried to say was our EMEA business was weak because the cloud titans did not order in that country. So the European piece of our cloud titan was weak. And there were some pushouts of European customers that pushed out of Q2, which made that number weaker than normal.

不好了。不，不。我們想說的是，我們的歐洲、中東和非洲業務表現疲軟，因為雲端巨頭沒有在該國家訂購。因此，我們的雲巨頭的歐洲部分很弱。第二季出現了一些歐洲客戶的退出，導致這一數字低於正常水平。

Your next question comes from the line of Ryan Koontz from Rosenblatt Securities.

您的下一個問題來自羅森布拉特證券公司的 Ryan Koontz。

Circling back to your campus opportunity there, can you maybe walk us through some of your channel strategy? How much is direct versus you looking for third-party integrators and such to work with you?

回到你的校園機會，可以向我們介紹你的一些通路策略嗎？直接與您尋找第三方整合商等與您合作的費用是多少？

Yes. No, that's a good question, Ryan. Our channel strategy is still in very early stages and evolving. In fact, if you do channel checks, I think most of you don't hear enough about Arista. So I would say a lot of our first year success was definitely due to our direct customer focus. Maybe that's north of 80%. However, we fulfill through the channels, and so our fulfillment to the channels is also 80%. But the impact of channels, I think, will kick in more in the second and third year than it did the first.

是的。不，這是個好問題，瑞安。我們的通路策略仍處於非常早期的階段並且正在不斷發展。事實上，如果您進行頻道檢查，我認為大多數人對 Arista 的了解還不夠。所以我想說，我們第一年的成功很大程度上歸功於我們對客戶的直接關注。也許這個數字超過了 80%。但是我們是透過管道來履行的，所以我們對管道的履行也是80%。但我認為，通路的影響將在第二年和第三年比第一年發揮更大的作用。

And I got to give a shout-out to Chris Schmidt and Ed Chapman and a number of folks who are working on a suite of channels [for us] that is extremely competitive all over the world.

我必須向克里斯·施密特（Chris Schmidt）和埃德·查普曼（Ed Chapman）以及一些正在為我們開發一套在世界各地極具競爭力的頻道的人表示敬意。

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

您的下一個問題來自克利夫蘭研究中心的 Ben Bollin。

Jayshree, I was hoping you could talk a little bit about how you feel the increased mix of work-from-home employees across broader enterprise is likely to impact longer-term investments in the campus from the enterprise customer. And then also you mentioned a little bit about video service provider, but I'm interested if you think there's any corresponding impact as more people are at home, and that might be influencing service provider investments.

Jayshree，我希望您能談談您對更廣泛的企業中在家工作員工的增加可能會影響企業客戶對園區的長期投資的看法。然後您也提到了一些有關視訊服務提供者的內容，但我很感興趣，如果您認為隨著越來越多的人留在家裡，這會產生任何相應的影響，並且這可能會影響服務提供商的投資。

Yes. No. Ben, both are very good questions. I think it really depends on how long you think work-from-home is going to go on. If it's going to go on indefinitely, I think the campus investments will take longer. It will still happen. We were expecting to double every year, and maybe we won't double every year, but we will attempt to double every 18 months to 2 years.

是的。不，本，這兩個問題都很好。我認為這實際上取決於你認為在家​​工作會持續多久。如果無限期地持續下去，我認為校園投資將需要更長的時間。它仍然會發生。我們預計每年都會翻一番，也許我們不會每年都翻一番，但我們會嘗試每 18 個月到 2 年翻一番。

So they will -- there's very much a campus requirement, whether you call it the headquarters' campus or the regional offices or the branches. And Arista's technology, where we're able to unify wired and wireless in a single pane of glass, is powerful. But I think we will see the decision-making take longer. So I still see the opportunity as vibrant but the time being longer.

所以他們會——有很大的園區要求，無論你稱之為總部園區還是地區辦事處或分支機構。 Arista 的技術非常強大，我們能夠在單一管理平台中統一有線和無線。但我認為我們會看到決策需要更長的時間。所以我仍然認為這個機會充滿活力，但時間更長。

In terms of video and service providers, I think it's a really good question. When you look at our Tier 2 both cloud providers and service providers, the ramp in video traffic by itself, because it's compressed workflows, aren't that great. But the aggregate bandwidth is definitely causing more investment in both Tier 2 cloud providers and service provider, whether it's a colo or a peering point or a content provider. So we are seeing that the work-from-home is creating an aggregate demand for bandwidth.

就視訊和服務提供者而言，我認為這是一個非常好的問題。當您查看我們的第二層雲端供應商和服務供應商時，視訊流量本身的成長（因為它是壓縮的工作流程）並不是那麼好。但總頻寬肯定會導致對二級雲端提供者和服務提供者的更多投資，無論是託管中心、對等點還是內容提供者。因此，我們看到在家工作正在創造對頻寬的整體需求。

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

您的下一個問題來自 Jefferies 的 George Notter。

I guess I was going to ask about, I guess, some of the bigger-picture drivers. You talked about 400-gig earlier, but Intel recently delayed their 7-nanometer program around CPUs, including server CPUs. And I guess I'm wondering if that impacts the server refresh model that many big Internet content providers were kind of following. How do you sort of think about that bigger picture?

我想我會問一些更宏觀的驅動因素。您之前談到了 400 GB，但英特爾最近推遲了圍繞 CPU（包括伺服器 CPU）的 7 奈米計劃。我想我想知道這是否會影響許多大型網路內容提供者所遵循的伺服器刷新模式。您如何看待更大的前景？

Thanks, George. I think when it comes to building a network, the philosophy many of the top enterprise and cloud clients take, and Anshul alluded to this is build with what we have. So we haven't seen any delays in putting the network together because of server depreciation cycles or price acquisition cycles. So we don't think the Intel slip will have an immediate impact. It could factor in 2021 or 2022. But right now, I think we don't see any impact from the 7-nanometer because they need IO. They need IO independent of which CPU it is. So we feel pretty good in the near term.

謝謝，喬治。我認為，在建立網路時，許多頂級企業和雲端客戶所採用的理念（安舒爾提到的這一點）是利用我們擁有的資源來建構。因此，我們沒有看到由於伺服器折舊週期或價格獲取週期而導致網路整合出現任何延遲。因此，我們認為英特爾的失誤不會產生立竿見影的影響。它可能會考慮到 2021 年或 2022 年。它們需要獨立於哪個 CPU 的 IO。所以我們短期內感覺很好。

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

您的下一個問題來自瑞士信貸銀行的 Sami Badri。

I just wanted to ask a little bit about the international opportunity there. We've seen a couple of quarters of year-on-year decline, and you talked about some pushouts. However, the European region, some of the other regions are probably going through something very similar as the United States with more cloud application consumption and people working from home, et cetera. I just want to understand what is it about the other regions that are not seeing the same magnitude of demand for the same dynamics as the U.S. from an architecture perspective, from a product perspective, how Arista inserts into it. Can you just give us any color on what explains the decline versus some of the other regions that are holding up relatively well?

我只是想問一下那裡的國際機會。我們已經看到幾個季度的同比下降，你談到了一些退出。然而，歐洲地區和其他一些地區可能正在經歷與美國非常相似的情況，雲端應用程式消費更多，人們在家工作等等。我只是想了解其他地區的情況如何，從架構的角度、從產品的角度來看，Arista 是如何融入其中的，這些地區沒有看到與美國相同的動態需求。您能給我們解釋一下與其他一些表現相對較好的地區相比，下降的原因嗎？

Yes. So I would say 3 things, Sami. I think, first, we just got a late start on international investments and we still see -- we're still looking to see that pay off country by country, and each country has its dynamics. It's hard to lump Europe as one.

是的。所以我想說三件事，薩米。我認為，首先，我們在國際投資方面起步較晚，但我們仍然希望看到每個國家都能獲得回報，每個國家都有其動態。很難將歐洲混為一談。

The second is both quarters that you're referring to was influenced by the cloud titan and how they purchased. So they just tended purchase more in the United States than they did in-country, in the region, and that affected it.

第二個是您提到的兩個季度都受到雲端巨頭及其購買方式的影響。因此，他們傾向於在美國購買的東西比在國內、該地區購買的東西多，這對其產生了影響。

And then the third thing I would say is in general, Chris Schmidt and Ashwin Kohli and Anshul and the whole team were humming more, and we're having greater enterprise traction in the U.S. and bigger bets in the U.S. And we want to see the same, and we have every beliefs and hope that we will see the same, but it's taking a bit longer in the international locations.

然後我要說的第三件事是，總的來說，克里斯·施密特（Chris Schmidt）、阿什溫·科利（Ashwin Kohli）和安舒爾（Anshul）以及整個團隊都在嗡嗡作響，我們在美國擁有更大的企業吸引力，並且在美國有更大的賭注，我們希望看到相同，我們堅信並希望我們能看到相同的情況，但在國際地點需要更長的時間。

Your next question comes from the line of Vinod Srinivasaraghavan from Oppenheimer.

您的下一個問題來自奧本海默的 Vinod Srinivasaraghavan。

I just want to talk about your outlook. To the extent that you're embedding supply and demand headwinds, would you say that the headwinds are mostly, say, like 75%, 80% supply chain-related? Or are you seeing or expecting some demand weakness or slowdown in any vertical?

我只想談談你的看法。就您嵌入的供需逆風而言，您是否會說逆風大部分（例如 75%、80%）與供應鏈有關？或者您看到或預期任何垂直領域的需求疲軟或放緩？

Thanks, Vinod. That's a loaded question that I may not be able to answer to your satisfaction. But I would say, at least as it pertains to Q2, demand was strong, and I wish we could have shipped more. And I think we will run into a little bit of that in Q3 as well, albeit it's a slow summer cycle.

謝謝，維諾德。這是一個很沉重的問題，我可能無法讓您滿意地回答。但我想說，至少就第二季而言，需求強勁，我希望我們能夠出貨更多。我認為我們在第三季也會遇到一些這種情況，儘管這是一個緩慢的夏季週期。

So we don't yet know about next year or we don't know enough about Q4. But certainly Q2 -- Q1, Q2 were pressured by supply chain. And the second half, we hope to respond to that supply chain and create more demand.

所以我們還不知道明年的情況，或者我們對第四季的了解還不夠。但可以肯定的是，第二季——第一季、第二季都受到了供應鏈的壓力。下半年，我們希望對供應鏈做出回應並創造更多需求。

Okay. And is there -- what would you say -- can you just give us a sense of your backlog? Like how much of that has kind of been held up?

好的。您能告訴我們您的積壓情況嗎？例如其中有多少被擱置了？

Yes. No, we don't talk about backlog, but it's safe to say we have some.

是的。不，我們不談論積壓，但可以肯定地說我們有一些積壓。

So this concludes the Arista Q2 2020 Earnings Call. We have posted a presentation, which provides additional information on our fiscal results, which you can access on the Investors section of our website. Thank you for joining us today and, everyone, be safe.

Arista 2020 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財務業績的更多信息，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，大家注意安全。

Thank you.

謝謝。

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

感謝您的加入。女士們、先生們，今天的電話會議到此結束。您現在可以斷開連線。