Arista Networks (ANET) 10-Q 1 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-36468
Entity Registrant Name	Arista Networks, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1751121
Entity Address, Address Line One	5453 Great America Parkway
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	(408)
Local Phone Number	547-5500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ANET
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		308,282,799
Entity Central Index Key	0001596532
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 956,341	$ 671,707
Marketable securities	2,374,789	2,352,022
Accounts receivable, net	862,875	923,096
Inventories	1,682,703	1,289,706
Prepaid expenses and other current assets	393,825	314,217
Total current assets	6,270,533	5,550,748
Property and equipment, net	97,157	95,009
Acquisition-related intangible assets, net	112,890	122,205
Goodwill	265,924	265,924
Investments	39,401	39,468
Operating lease right-of-use assets	64,003	53,390
Deferred tax assets	646,066	574,912
Other assets	47,092	73,754
TOTAL ASSETS	7,543,066	6,775,410
CURRENT LIABILITIES:
Accounts payable	330,171	232,572
Accrued liabilities	351,764	292,487
Deferred revenue	671,700	637,432
Other current liabilities	231,274	131,040
Total current liabilities	1,584,909	1,293,531
Income taxes payable	94,733	89,839
Operating lease liabilities, non-current	55,291	43,964
Deferred revenue, non-current	420,574	403,814
Other long-term liabilities	58,385	58,442
TOTAL LIABILITIES	2,213,892	1,889,590
Commitments and contingencies (Note 5)
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0001 par value—100,000 shares authorized and no shares issued and outstanding as of March 31, 2023 and December 31, 2022	0	0
Common stock, $0.0001 par value—1,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 308,098 and 306,890 shares issued and outstanding as of March 31, 2023 and December 31, 2022	31	31
Additional paid-in capital	1,857,467	1,780,714
Retained earnings	3,493,181	3,138,983
Accumulated other comprehensive income (loss)	(21,505)	(33,908)
TOTAL STOCKHOLDERS’ EQUITY	5,329,174	4,885,820
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 7,543,066	$ 6,775,410

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	308,098,000	306,890,000
Common stock, shares outstanding (in shares)	308,098,000	306,890,000

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Total revenue	$ 1,351,351	$ 877,066
Cost of revenue:
Total cost of revenue	546,844	323,221
Gross profit	804,507	553,845
Operating expenses:
Research and development	201,408	172,006
Sales and marketing	93,492	80,739
General and administrative	25,029	23,113
Total operating expenses	319,929	275,858
Income from operations	484,578	277,987
Other income (expense), net	12,146	31,480
Income before income taxes	496,724	309,467
Provision for income taxes	60,251	37,208
Net income	$ 436,473	$ 272,259
Net income per share:
Basic (in dollars per share)	$ 1.42	$ 0.88
Diluted (in dollars per share)	$ 1.38	$ 0.85
Weighted-average shares used in computing net income per share:
Basic (in shares)	306,985	308,045
Diluted (in shares)	315,578	319,652
Product
Revenue:
Total revenue	$ 1,172,094	$ 724,718
Cost of revenue:
Total cost of revenue	508,862	293,809
Service
Revenue:
Total revenue	179,257	152,348
Cost of revenue:
Total cost of revenue	$ 37,982	$ 29,412

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 436,473	$ 272,259
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	292	(373)
Available-for-sale investments:
Change in net unrealized gains (losses) on available-for-sale securities	8,253	(21,828)
Reclassification adjustment included in net income	3,858	0
Other comprehensive income (loss)	12,403	(22,201)
Comprehensive income	$ 448,876	$ 250,058

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2021		307,681
Beginning balance at Dec. 31, 2021	$ 3,978,600	$ 31	$ 1,530,046	$ 2,456,823	$ (8,300)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	272,259			272,259
Other comprehensive income (loss), net of tax	(22,201)				(22,201)
Stock-based compensation	50,279		50,279
Issuance of common stock in connection with employee equity incentive plans (in shares)		1,727
Issuance of common stock in connection with employee equity incentive plans	19,160		19,160
Repurchase of common stock (in shares)		(1,171)
Repurchase of common stock	(136,228)			(136,228)
Tax withholding paid for net share settlement of equity awards (in shares)		(105)
Tax withholding paid for net share settlement of equity awards	(12,741)		(12,741)
Common stock issued for business acquisition (in shares)		33
Common stock issued for business acquisition	4,049		4,049
Ending balance (in shares) at Mar. 31, 2022		308,165
Ending balance at Mar. 31, 2022	4,153,177	$ 31	1,590,793	2,592,854	(30,501)
Beginning balance (in shares) at Dec. 31, 2022		306,890
Beginning balance at Dec. 31, 2022	4,885,820	$ 31	1,780,714	3,138,983	(33,908)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	436,473			436,473
Other comprehensive income (loss), net of tax	12,403				12,403
Stock-based compensation	62,881		62,881
Issuance of common stock in connection with employee equity incentive plans (in shares)		2,012
Issuance of common stock in connection with employee equity incentive plans	$ 23,096		23,096
Repurchase of common stock (in shares)	(735)	(735)
Repurchase of common stock	$ (82,275)			(82,275)
Tax withholding paid for net share settlement of equity awards (in shares)		(69)
Tax withholding paid for net share settlement of equity awards	(9,224)		(9,224)
Ending balance (in shares) at Mar. 31, 2023		308,098
Ending balance at Mar. 31, 2023	$ 5,329,174	$ 31	$ 1,857,467	$ 3,493,181	$ (21,505)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 436,473	$ 272,259
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other	20,905	13,091
Stock-based compensation	62,881	50,279
Noncash lease expense	4,633	4,532
Deferred income taxes	(71,153)	(81,822)
Unrealized loss (gain) on equity investments	5,571	(28,497)
Amortization (accretion) of investment premiums (discounts)	(4,220)	7,033
Changes in operating assets and liabilities:
Accounts receivable, net	60,221	(131,861)
Inventories	(392,997)	(43,531)
Prepaid expenses and other current assets	(82,278)	(107,999)
Other assets	26,361	(640)
Accounts payable	94,564	2,478
Accrued liabilities	58,655	(29,666)
Deferred revenue	51,028	187,194
Income taxes, net	108,200	106,992
Other liabilities	(4,361)	(2,704)
Net cash provided by operating activities	374,483	217,138
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities	824,021	404,176
Proceeds from sale of marketable securities	21,725	0
Purchases of marketable securities	(861,612)	(412,614)
Purchases of property and equipment	(5,631)	(14,876)
Business acquisitions, net of cash acquired	0	(37,610)
Investments and notes receivable in privately-held companies	(250)	(11,691)
Net cash used in investing activities	(21,747)	(72,615)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity plans	23,096	19,160
Tax withholding paid on behalf of employees for net share settlement	(9,224)	(12,741)
Repurchases of common stock	(82,275)	(136,228)
Net cash used in financing activities	(68,403)	(129,809)
Effect of exchange rate changes	314	(481)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	284,647	14,233
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period	675,978	625,050
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	960,625	639,283
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Right-of-use assets obtained in exchange for lease obligations	15,229	6,022
Property and equipment included in accounts payable and accrued liabilities	4,926	2,759
Common stock issued for business acquisition	$ 0	$ 4,049

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	Organization and Summary of Significant Accounting Policies Organization Arista Networks, Inc. (together with our subsidiaries, “we,” “our,” "Arista," "Company" or “us”) is a supplier of cloud networking solutions that use software innovations to address the needs of next generation data center and campus workspace environments. Our cloud networking solutions consist of our Extensible Operating System ("EOS"), a set of network applications and our Gigabit Ethernet switching and routing platforms. We are incorporated in the state of Delaware. Our corporate headquarters are located in Santa Clara, California, and we have wholly-owned subsidiaries throughout the world, including North America, Europe, Asia and Australia. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three months ended March 31, 2023, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. Our condensed consolidated financial statements and related financial information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 14, 2023. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, valuation of inventory and contract manufacturer/supplier liabilities, accounting for income taxes, including the recognition of deferred tax assets and liabilities, valuation allowance on deferred tax assets and reserves for uncertain tax positions, revenue recognition and deferred revenue, allowance for doubtful accounts, sales rebates and return reserves, valuation of goodwill and acquisition-related intangible assets, estimate of useful lives of long-lived assets including intangible assets, and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust these estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from these estimates. Risks and Uncertainties Global economic and business activities continue to face widespread macroeconomic uncertainties, including inflation, monetary policy shifts, the recent banking crisis, recessio n risks, an d potential supply chain and other disruptions from the Russia-Ukraine conflict and the U.S. trade war with China. We have continued to work closely with our contract manufacturers and supply chain partners to ramp production following a period of delayed component sourcing and workforce disruptions. We have worked diligently to drive improvements in these areas, including funding additional working capital and incremental purchase commitments, and have begun to see some reduction in customer lead times on certain products. As customer lead times improve more broadly, we have seen and expect to continue to see a commensurate reduction in visibility to customer demand and a gradual return to a somewhat shorter demand-planning horizon. While inventory and working capital levels may continue to increase and remain elevated in the near term, we expect that purchase commitments will continue to decline as supplier lead times begin to shorten. Although these elevated inventory positions largely relate to early life cycle products, we cannot be certain that we will be able to sell this inventory which may result in excess and obsolete inventory charges in the future. In addition, inflation pressure in our supply chain, scarcity of some materials needed to build our products and disruptions to our manufacturing process have increased our cost of revenue and have impacted, and may continue to negatively impact our gross margin. Our operating cash-flows have also been and may continue to be negatively impacted by significant component inventories on hand or at our contract manufacturers . While we have seen some improvements in our supply chain and manufacturing operations, any remaining or new supply chain and manufacturing related constraints could negatively impact our business in future periods. In addition, although our business has experienced limited disruption as a result of the Russia-Ukraine conflict, continued escalation of the conflict may negatively impact the global economy and our future operating results and financial condition. Management continues to actively monitor the impact of these macroeconomic factors on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. The extent of the impact of these factors on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, will depend on future developments, the impact on our customers, partners, employees, contract manufacturers and supply chain, all of which continue to evolve and are unpredictable; however, any continued or renewed disruption in manufacturing and supply resulting from these factors could negatively impact our business. We also believe that our customers continue to grapple with the impact of these macroeconomic factors on their businesses and future investment plans, resulting in business uncertainty and a more constrained approach to forecasts and orders. In addition, any prolonged economic disruptions or further deterioration in the global economy could have a negative impact on demand from our customers in future periods. Accordingly, current results and financial condition discussed herein may not be indicative of future operating results and trends. Recent Accounting Pronouncements Not Yet Effective We believe that all recently issued accounting pronouncements from the FASB will not have a material impact on our Consolidated Financial Statements or do not apply to our operations.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets measured at fair values on a recurring basis We measure and report our cash equivalents, restricted cash, marketable equity securities and available-for-sale debt securities at fair value on a recurring basis. The following tables summarize the fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in thousands): March 31, 2023 December 31, 2022 Level I Level II Level III Total Level I Level II Level III Total Financial Assets: Cash Equivalents: Money market funds $ 315,895 $ — $ — $ 315,895 $ 322,294 $ — $ — $ 322,294 Commercial paper — — — — — 5,422 — 5,422 U.S. government notes 47,678 — — 47,678 51,986 — — 51,986 Agency securities — — — — — 17,559 — 17,559 363,573 — — 363,573 374,280 22,981 — 397,261 Marketable Securities: Commercial paper — 87,825 — 87,825 — — — — Certificate of deposits (1) — 14,496 — 14,496 — 10,492 — 10,492 U.S. government notes 839,675 — — 839,675 993,955 — — 993,955 Corporate bonds — 1,040,610 — 1,040,610 — 1,113,134 — 1,113,134 Agency securities — 378,693 — 378,693 — 215,380 — 215,380 Marketable equity securities (2) 13,490 — — 13,490 19,061 — — 19,061 853,165 1,521,624 — 2,374,789 1,013,016 1,339,006 — 2,352,022 Other Assets: Money market funds - restricted 4,284 — — 4,284 4,271 — — 4,271 Total Financial Assets $ 1,221,022 $ 1,521,624 $ — $ 2,742,646 $ 1,391,567 $ 1,361,987 $ — $ 2,753,554 ______________________________________ (1) As of March 31, 2023 and December 31, 2022, all of our certificates of deposits were domestic deposits. (2) The $13.5 million represents the fair value of marketable equity securities as of March 31, 2023. This publicly-traded equity investment generated an unrealized loss of $5.6 million for the three months ended March 31, 2023, and an unrealized gain of $13.5 million for the three months ended March 31, 2022. Total initial cost for this investment was $3.0 million with no changes since our initial investment. The unrealized gains and losses are included in Other income (expense), net on the unaudited Condensed Consolidated Statements of Operations. Refer to Note 3. Financial Statements Details. During the three months ended on March 31, 2023, the Company did not make any transfers between the levels of the fair value hierarchy. Marketable debt securities The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our debt securities measured at fair value on a recurring basis (in thousands): March 31, 2023 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 87,825 $ — $ — $ 87,825 $ — $ — $ — $ — U.S. government 847,523 122 (7,970) 839,675 1,007,175 3 (13,223) 993,955 Corporate bonds 1,048,045 865 (8,300) 1,040,610 1,125,920 271 (13,057) 1,113,134 Agency securities 379,818 613 (1,738) 378,693 217,893 83 (2,596) 215,380 Total $ 2,363,211 $ 1,600 $ (18,008) $ 2,346,803 $ 2,350,988 $ 357 $ (28,876) $ 2,322,469 For debt securities in unrealized loss positions, it is not likely that we will be required to sell such securities before recovery of their amortized cost basis nor do we have the intent to sell such securities before maturity. We invest in debt securities that have maximum maturities of two years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these marketable securities, the more susceptible they are to changes in market interest rates and bond yields. Given the short-term and conservative nature of our portfolio, the unrealized losses are not related to credit risk; therefore, we did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable debt securities for the three months ended March 31, 2023. All unrealized losses were recognized in other comprehensive income (loss). Realized losses were immaterial for the three months ended March 31, 2023. The following table is an analysis of our marketable debt securities in unrealized loss positions (in thousands): March 31, 2023 Unrealized Losses within 12 months Unrealized Losses 12 months or greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government notes $ 274,507 $ (1,144) $ 439,448 $ (6,826) $ 713,955 $ (7,970) Corporate bonds 457,708 (2,677) 370,215 (5,623) 827,923 (8,300) Agency securities 82,404 (383) 62,217 (1,355) 144,621 (1,738) Total $ 814,619 $ (4,204) $ 871,880 $ (13,804) $ 1,686,499 $ (18,008) As of March 31, 2023, we had no marketable debt securities with contractual maturities that exceed 24 months. The fair values of marketable debt securities, by remaining contractual maturities, are as follows (in thousands): March 31, 2023 Fair Value Due in 1 year or less $ 1,608,879 Due in 1 to 2 years 737,924 Total debt securities $ 2,346,803 The weighted-average remaining duration of our marketable debt securities is approximately 0.8 years as of March 31, 2023. As we view these marketable debt securities as available to support current operations, we classify marketable debt securities with maturities beyond 12 months as current assets under the caption "Marketable securities" on the condensed consolidated balance sheets. Assets measured at fair value on a non-recurring basis Non-Marketable Equity Securities We have non-marketable equity securities in privately-held companies that do not have readily-determinable fair values. These equity securities are included in Investments on the condensed consolidated balance sheets. Their initial cost is adjusted to fair value on a non-recurring basis based on observable price changes from orderly transactions of identical or similar securities of the same issuer, or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to these securities. In addition, the valuation requires management judgment due to the absence of market price and lack of liquidity. We did not record any realized gains or losses for our non-marketable equity securities measured at fair value on a non-recurring basis during the three months ended March 31, 2023 and March 31, 2022. We recorded unrealized gains of nil and $15.0 million on non-marketable equity securities based on observable price changes from orderly transactions of identical or similar securities in the three months ended March 31, 2023 and March 31, 2022, respectively. We recorded immaterial unrealized losses in the three months ended March 31, 2023. We evaluate our non-marketable equity securities for impairment at each reporting period via a qualitative assessment with various potential impairment indicators, including, but not limited to, an assessment of a significant adverse change in the economic environment, significant adverse changes in the general market condition of the geographies and industries in which our investees operate, and other publicly-available information that affected the value of the its non-marketable equity securities. The following table summarizes the activity related to our non-marketable equity securities as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Cost of investments $ 23,875 $ 23,625 Cumulative impairment and downward adjustment (1,205) (888) Cumulative upward adjustment 16,731 16,731 Carrying amount of investments $ 39,401 $ 39,468

Financial Statements Details

Financial Statements Details	3 Months Ended
	Mar. 31, 2023
Balance Sheet Components [Abstract]
Financial Statements Details	Financial Statements Details Cash, Cash Equivalents and Restricted Cash The reconciliation of cash, cash equivalents and restricted cash reported on the unaudited condensed consolidated balance sheets to the total of the same such amounts in the unaudited condensed consolidated statements of cash flows is as follows (in thousands): March 31, 2023 December 31, 2022 Cash and cash equivalents $ 956,341 $ 671,707 Restricted cash included in other assets 4,284 4,271 Total cash, cash equivalents and restricted cash $ 960,625 $ 675,978 Accounts Receivable, net Accounts receivable, net consists of the following (in thousands): March 31, 2023 December 31, 2022 Accounts receivable $ 871,282 $ 928,490 Allowance for doubtful accounts (1,264) (19) Product sales rebate and returns reserve (7,143) (5,375) Accounts receivable, net $ 862,875 $ 923,096 Inventories Inventories consist of the following (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 1,060,261 $ 759,519 Finished goods 622,442 530,187 Total inventories $ 1,682,703 $ 1,289,706 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2023 December 31, 2022 Inventory deposits $ 243,923 $ 162,047 Other current assets 125,353 124,357 Other prepaid expenses and deposits 24,549 27,813 Total prepaid expenses and other current assets $ 393,825 $ 314,217 Property and Equipment, net Property and equipment, net consists of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 42,337 $ 41,500 Equipment and machinery 128,883 122,407 Computer hardware and software 50,892 52,148 Leasehold improvements 30,204 30,102 Furniture and fixtures 3,577 3,575 Construction-in-process 5,634 2,124 Property and equipment, gross 261,527 251,856 Less: accumulated depreciation (164,370) (156,847) Property and equipment, net $ 97,157 $ 95,009 Depreciation expense was $7.1 million and $5.6 million for the three months ended March 31, 2023 and 2022, respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, 2023 December 31, 2022 Accrued compensation-related costs $ 57,776 $ 117,053 Accrued Supplier liability 78,168 71,481 Accrued manufacturing costs 138,530 45,379 Accrued product development costs 44,551 27,380 Other 32,739 31,194 Total accrued liabilities $ 351,764 $ 292,487 Contract Liabilities, Deferred Revenue and Other Performance Obligations Contract Liabilities A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a cancellable contract. The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended March 31, 2023 2022 Contract liabilities, beginning balance $ 103,448 $ 93,382 Less: Revenue recognized from beginning balance (9,243) (8,248) Less: Beginning balance reclassified to deferred revenue (4,382) (3,837) Add: Contract liabilities recognized 15,224 17,125 Contract liabilities, ending balance $ 105,047 $ 98,422 As of March 31, 2023 and December 31, 2022, $46.9 million and $45.2 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the condensed consolidated balance sheets. Deferred Revenue Deferred revenue is comprised mainly of unearned revenue related to multi-year post-contract support ("PCS") contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended March 31, 2023 2022 Deferred revenue, beginning balance $ 1,041,246 $ 929,312 Less: Revenue recognized from beginning balance (214,450) (128,136) Add: Deferral of revenue in current period, excluding amounts recognized during the period 265,478 322,570 Deferred revenue, ending balance $ 1,092,274 $ 1,123,746 Other Performance Obligations Other performance obligations totaling $1.0 billion as of March 31, 2023 include unbilled multi-year PCS and service contract amounts of $120.1 million and $908.6 million of binding contractual agreements with certain customers that are primarily related to future product shipments. Revenue from Total Remaining Performance Obligations T otal revenue from our contract liabilities, deferred revenue and other performance obligations that will be recognized in future periods amounts to $2.2 billion. Included in this amount is the $908.6 million of binding contractual agreements related primarily to future product shipments. As of March 31, 2023, it is expected that the majority of the amounts allocated to these specific performance obligations will be recognized as revenue upon product shipment over the next two years. In addition, as of March 31, 2023, approximately 82% of the remaining $1.3 billion of this future revenue is expected to be recognized over the next two years and approximately 18% is expected to be recognized during the third to the fifth year. Other Income (Expense), net Other income (expense), net consists of the following (in thousands): Three Months Ended March 31, 2023 2022 Interest income $ 22,509 $ 2,428 Unrealized gain (loss) on equity investments (5,571) 28,497 Other income (expense), net (4,792) 555 Total $ 12,146 $ 31,480

Acquisition, Goodwill and Acqui

Acquisition, Goodwill and Acquisition-Related Intangible Assets	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisition, Goodwill and Acquisition-Related Intangible Assets	Acquisition, Goodwill and Acquisition-Related Intangible Assets Acquisitions During the year ended December 31, 2022, we completed two acquisitions of private companies for total consideration of $158.9 million including $4.0 million in common stock and the remainder in cash. The purchase prices included $62.3 million of intangible assets, $77.5 million of goodwill and $19.1 million of net tangible assets acquired. We also incurred certain acquisition-related expenses of $4.7 million, which primarily consisted of retention bonuses to continuing employees as well as professional and consulting fees. The purchase price allocation for one of the acquisitions has been finalized, while for the other acquisition it is still subject to continuing management analysis. No changes were made to the purchase price allocation for the three months ended March 31, 2023. Goodwill No changes were made to the carrying values of goodwill for the three months ended March 31, 2023. Acquisition-Related Intangible Assets Acquisition-related intangible assets were as follows (in thousands, except years): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (in years) December 31, 2022 Additions March 31, 2023 December 31, 2022 Amortization March 31, 2023 December 31, 2022 March 31, 2023 Developed technology $ 154,930 $ — $ 154,930 $ (79,036) $ (6,820) $ (85,856) $ 75,894 $ 69,074 4.3 Customer relationships 54,620 — 54,620 (14,097) (1,925) (16,022) 40,523 38,598 5.4 Trade name 12,390 — 12,390 (6,602) (570) (7,172) 5,788 5,218 2.3 Others 5,720 — 5,720 (5,720) — (5,720) — — 0.0 Total $ 227,660 $ — $ 227,660 $ (105,455) $ (9,315) $ (114,770) $ 122,205 $ 112,890 4.6 Amortization expense related to acquisition-related intangible assets was $9.3 million, and $7.3 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, future estimated amortization expense related to the acquisition-related intangible assets is as follows (in thousands): Future Amortization Expense Remainder of 2023 $ 24,123 2024 26,759 2025 19,642 2026 17,260 2027 13,436 Thereafter 11,670 Total $ 112,890

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments We outsource most of our manufacturing and supply chain management operations to third-party contract manufacturers, who procure components and assemble products on our behalf. A significant portion of our purchase orders to our contract manufacturers for finished products consists of non-cancellable purchase commitments. In addition, we purchase strategic component inventory from certain suppliers under non-cancellable purchase commitments, including integrated circuits, which are consigned to our contract manufacturers. As of March 31, 2023, we had non-cancellable purchase commitments of $2.9 billion, of which $2.4 billion have confirmed receipt dates within 12 months, and $0.5 billion have confirmed receipt dates greater than 12 months. These open purchase orders are considered enforceable and legally binding, and while we may have some limited ability to reschedule, and adjust our requirements based on our business needs prior to the delivery of goods or performance of services, this can only occur with the agreement of the related supplier. We also had deposits to our contract manufacturers to secure our purchase commitments in the amount of $246.7 million and $192.5 million as of March 31, 2023 and December 31, 2022, respectively, which were recorded within prepaid expenses and other current assets, as well as other assets in the condensed consolidated balance sheets. Guarantees We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third party. We have, at our option and expense, the ability to repair any infringement, replace product with a non-infringing equivalent-in-function product or refund our customers all or a portion of the value of the product. Other guarantees or indemnification agreements include guarantees of product and service performance and standby letters of credit for leased facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantee and indemnification arrangements have not had a significant impact on our consolidated financial statements to date. Legal Proceedings WSOU Investments, LLC On November 25, 2020, WSOU Investments LLC ("WSOU") filed a lawsuit against us in the Western District of Texas asserting that certain of our products infringe three WSOU patents. WSOU's allegations are directed to certain features of our wireless and switching products. WSOU seeks remedies including monetary damages, attorney's fees and costs. On February 4, 2021, we filed an answer denying WSOU's allegations. On November 5, 2021, the case was transferred to the Northern District of California. On March 30, 2022, WSOU dismissed one of the patents with prejudice, removing Arista wireless products from those accused of infringement. On July 1, 2022, the court stayed the case pending the resolution of an inter partes review of one of the patents-in-suit. We intend to vigorously defend against the claims brought against us by WSOU; however, we cannot be certain that any of WSOU's claims will be resolved in our favor, regardless of the merits of those claims. Any adverse litigation ruling could result in a significant damages award against us and injunctive relief. With respect to the legal proceedings described above, it is our belief that while a loss is not probable, it may be reasonably possible. Further, at this stage in the litigation, any possible loss or range of loss cannot be estimated; however, the outcome of litigation is inherently uncertain. Therefore, if this legal matter were resolved against us in a reporting period for a material amount, our consolidated financial statements for that reporting period could be materially adversely affected. Other matters In the ordinary course of business, we are a party to other claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of March 31, 2023, provisions recorded for contingent losses related to other claims and matters have not been significant. Based on currently-available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows; however, litigation is subject to inherent uncertainties and our view of these matters may change in the future. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs, and potentially in future periods.

Stockholders_ Equity and Stock-

Stockholders’ Equity and Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stockholders’ Equity and Stock-Based Compensation	Stockholders’ Equity and Stock-Based Compensation Stock Repurchase Program Our board of directors has authorized a $1.0 billion stock repurchase program (the “Repurchase Program”). This authorization allows us to repurchase shares of our common stock that will be funded from working capital and expires in the fourth quarter of 2024. Repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or a combination of the foregoing. The Repurchase Program does not obligate us to acquire any of our common stock and may be suspended or discontinued by the company at any time without prior notice. As of March 31, 2023, the remaining authorized amount for stock repurchases under the Repurchase Program was approximately $174.5 million. A summary of the stock repurchase activity under the New Repurchase Program for the three months ended March 31, 2023 is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2023 Aggregate purchase price $ 82,275 Shares repurchased 735 Average price paid per share $ 111.90 The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings in our unaudited condensed consolidated statements of stockholders' equity. All shares repurchased have been retired. Equity Award Plan Activities 2014 Equity Incentive Plan In April 2014, our board of directors and stockholders approved the 2014 Equity Incentive Plan (the “2014 Plan”), effective on the first day that our common stock was publicly traded, and simultaneously terminated the 2004 and 2011 equity plans as to future grants; however, these plans will continue to govern the terms and conditions of the outstanding options previously granted thereunder. Awards granted under the 2014 Plan could be in the form of Incentive Stock Options (“ISOs”), Nonstatutory Stock Options (“NSOs”), Restricted Stock Units (“RSUs”), Restricted Stock Awards (“RSAs”) or Stock Appreciation Rights (“SARs”). The number of shares available for grant and issuance under the 2014 Plan increases automatically on January 1 of each year commencing with 2016 by the number of shares equal to 3% of the outstanding shares of our common stock on the immediately preceding December 31, but not to exceed 50,000,000 shares (the “2014 Plan Evergreen Increase”), unless our board of directors, in its discretion, determines to make a smaller increase. Effective January 1, 2023, our board of directors authorized an increase of 9.2 million shares to the shares available for issuance under the 2014 Plan. As of March 31, 2023, there remained approximately 99.4 million shares available for issuance under the 2014 Plan. 2014 Employee Stock Purchase Plan In April 2014, our board of directors and stockholders approved the 2014 Employee Stock Purchase Plan (the “ESPP”). The ESPP became effective on the first day that our common stock was publicly traded. The number of shares reserved for issuance under the ESPP increases automatically on January 1 of each year by the number of shares equal to 1% of our shares outstanding on the immediately preceding December 31, but not to exceed 10,000,000 shares, unless our board of directors, in its discretion, determines to make a smaller increase. Effective January 1, 2023, our board of directors authorized an increase of 3.1 million shares to the shares available for issuance under the ESPP. During the three months ended March 31, 2023, we issued 139,758 shares at a weighted-average purchase price of $102.66 per share under the ESPP. As of March 31, 2023, there remained approximately 23.5 million shares available for issuance under the ESPP. Stock Option Activities The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Number of Weighted- Weighted- Aggregate Balance—December 31, 2022 5,769 $ 14.09 2.0 $ 618,774 Options granted — — Options exercised (1,132) 7.72 Options canceled (1) 9.26 Balance—March 31, 2023 4,636 $ 15.65 1.9 $ 705,637 Vested and exercisable—March 31, 2023 4,225 $ 13.43 1.6 $ 652,547 Restricted Stock Unit (RSU) Activities A summary of the RSU activity is presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Aggregate Intrinsic Value Unvested balance—December 31, 2022 8,360 $ 85.83 1.7 $ 1,014,431 RSUs granted 577 132.83 RSUs vested (733) 77.09 RSUs forfeited/canceled (86) 94.48 Unvested balance—March 31, 2023 8,118 $ 89.89 1.7 $ 1,362,671 Stock-Based Compensation Expense The following table summarizes the stock-based compensation expense related to our equity awards (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 2,975 $ 1,309 Research and development 36,569 27,576 Sales and marketing 15,138 13,109 General and administrative 8,199 8,285 Total stock-based compensation $ 62,881 $ 50,279

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The following table sets forth the computation of our basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Numerator: Net income $ 436,473 $ 272,259 Denominator: Weighted-average shares used in computing net income per share, basic 306,985 308,045 Add weighted-average effect of dilutive securities: Employee equity awards 8,593 11,607 Weighted-average shares used in computing net income per share, diluted 315,578 319,652 Net income per share: Basic $ 1.42 $ 0.88 Diluted $ 1.38 $ 0.85 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Stock options and RSUs 21 64 Employee stock purchase plan 353 16 Total 374 80

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes (in thousands, except percentages) Three Months Ended March 31, 2023 2022 Income before income taxes $ 496,724 $ 309,467 Provision for income taxes 60,251 37,208 Effective tax rate 12.1 % 12.0 %

Geographical Information

Geographical Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Geographical Information	Geographical Information We operate in one reportable segment. The following table represents revenue based on customers’ shipping addresses (in thousands): Three Months Ended March 31, 2023 2022 Americas (1) $ 1,115,011 $ 664,377 Europe, Middle East and Africa 128,316 134,805 Asia-Pacific 108,024 77,884 Total revenue $ 1,351,351 $ 877,066 (1) Includes $1.1 billion and $648.9 million revenue generated from the U.S. for the three months ended March 31, 2023 and March 31, 2022, respectively. Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location are summarized as follows (in thousands): March 31, 2023 December 31, 2022 United States $ 74,239 $ 71,540 International 22,918 23,469 Total $ 97,157 $ 95,009

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three months ended March 31, 2023, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, valuation of inventory and contract manufacturer/supplier liabilities, accounting for income taxes, including the recognition of deferred tax assets and liabilities, valuation allowance on deferred tax assets and reserves for uncertain tax positions, revenue recognition and deferred revenue, allowance for doubtful accounts, sales rebates and return reserves, valuation of goodwill and acquisition-related intangible assets, estimate of useful lives of long-lived assets including intangible assets, and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust these estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from these estimates.
Risks and Uncertainties	Risks and Uncertainties Global economic and business activities continue to face widespread macroeconomic uncertainties, including inflation, monetary policy shifts, the recent banking crisis, recessio n risks, an d potential supply chain and other disruptions from the Russia-Ukraine conflict and the U.S. trade war with China. We have continued to work closely with our contract manufacturers and supply chain partners to ramp production following a period of delayed component sourcing and workforce disruptions. We have worked diligently to drive improvements in these areas, including funding additional working capital and incremental purchase commitments, and have begun to see some reduction in customer lead times on certain products. As customer lead times improve more broadly, we have seen and expect to continue to see a commensurate reduction in visibility to customer demand and a gradual return to a somewhat shorter demand-planning horizon. While inventory and working capital levels may continue to increase and remain elevated in the near term, we expect that purchase commitments will continue to decline as supplier lead times begin to shorten. Although these elevated inventory positions largely relate to early life cycle products, we cannot be certain that we will be able to sell this inventory which may result in excess and obsolete inventory charges in the future. In addition, inflation pressure in our supply chain, scarcity of some materials needed to build our products and disruptions to our manufacturing process have increased our cost of revenue and have impacted, and may continue to negatively impact our gross margin. Our operating cash-flows have also been and may continue to be negatively impacted by significant component inventories on hand or at our contract manufacturers . While we have seen some improvements in our supply chain and manufacturing operations, any remaining or new supply chain and manufacturing related constraints could negatively impact our business in future periods. In addition, although our business has experienced limited disruption as a result of the Russia-Ukraine conflict, continued escalation of the conflict may negatively impact the global economy and our future operating results and financial condition. Management continues to actively monitor the impact of these macroeconomic factors on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. The extent of the impact of these factors on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, will depend on future developments, the impact on our customers, partners, employees, contract manufacturers and supply chain, all of which continue to evolve and are unpredictable; however, any continued or renewed disruption in manufacturing and supply resulting from these factors could negatively impact our business. We also believe that our customers continue to grapple with the impact of these macroeconomic factors on their businesses and future investment plans, resulting in business uncertainty and a more constrained approach to forecasts and orders. In addition, any prolonged economic disruptions or further deterioration in the global economy could have a negative impact on demand from our customers in future periods. Accordingly, current results and financial condition discussed herein may not be indicative of future operating results and trends.
Recent Accounting Pronouncements Not Yet Effective	Recent Accounting Pronouncements Not Yet Effective We believe that all recently issued accounting pronouncements from the FASB will not have a material impact on our Consolidated Financial Statements or do not apply to our operations.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets by Level	The following tables summarize the fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in thousands): March 31, 2023 December 31, 2022 Level I Level II Level III Total Level I Level II Level III Total Financial Assets: Cash Equivalents: Money market funds $ 315,895 $ — $ — $ 315,895 $ 322,294 $ — $ — $ 322,294 Commercial paper — — — — — 5,422 — 5,422 U.S. government notes 47,678 — — 47,678 51,986 — — 51,986 Agency securities — — — — — 17,559 — 17,559 363,573 — — 363,573 374,280 22,981 — 397,261 Marketable Securities: Commercial paper — 87,825 — 87,825 — — — — Certificate of deposits (1) — 14,496 — 14,496 — 10,492 — 10,492 U.S. government notes 839,675 — — 839,675 993,955 — — 993,955 Corporate bonds — 1,040,610 — 1,040,610 — 1,113,134 — 1,113,134 Agency securities — 378,693 — 378,693 — 215,380 — 215,380 Marketable equity securities (2) 13,490 — — 13,490 19,061 — — 19,061 853,165 1,521,624 — 2,374,789 1,013,016 1,339,006 — 2,352,022 Other Assets: Money market funds - restricted 4,284 — — 4,284 4,271 — — 4,271 Total Financial Assets $ 1,221,022 $ 1,521,624 $ — $ 2,742,646 $ 1,391,567 $ 1,361,987 $ — $ 2,753,554 ______________________________________ (1) As of March 31, 2023 and December 31, 2022, all of our certificates of deposits were domestic deposits. March 31, 2023 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 87,825 $ — $ — $ 87,825 $ — $ — $ — $ — U.S. government 847,523 122 (7,970) 839,675 1,007,175 3 (13,223) 993,955 Corporate bonds 1,048,045 865 (8,300) 1,040,610 1,125,920 271 (13,057) 1,113,134 Agency securities 379,818 613 (1,738) 378,693 217,893 83 (2,596) 215,380 Total $ 2,363,211 $ 1,600 $ (18,008) $ 2,346,803 $ 2,350,988 $ 357 $ (28,876) $ 2,322,469
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value	The following table is an analysis of our marketable debt securities in unrealized loss positions (in thousands): March 31, 2023 Unrealized Losses within 12 months Unrealized Losses 12 months or greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government notes $ 274,507 $ (1,144) $ 439,448 $ (6,826) $ 713,955 $ (7,970) Corporate bonds 457,708 (2,677) 370,215 (5,623) 827,923 (8,300) Agency securities 82,404 (383) 62,217 (1,355) 144,621 (1,738) Total $ 814,619 $ (4,204) $ 871,880 $ (13,804) $ 1,686,499 $ (18,008)
Fair Value of Available-For-Sale Investments By Contractual Maturity	The fair values of marketable debt securities, by remaining contractual maturities, are as follows (in thousands): March 31, 2023 Fair Value Due in 1 year or less $ 1,608,879 Due in 1 to 2 years 737,924 Total debt securities $ 2,346,803
Equity Securities without Readily Determinable Fair Value	The following table summarizes the activity related to our non-marketable equity securities as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Cost of investments $ 23,875 $ 23,625 Cumulative impairment and downward adjustment (1,205) (888) Cumulative upward adjustment 16,731 16,731 Carrying amount of investments $ 39,401 $ 39,468

Financial Statements Details (T

Financial Statements Details (Tables)	3 Months Ended
	Mar. 31, 2023
Balance Sheet Components [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	The reconciliation of cash, cash equivalents and restricted cash reported on the unaudited condensed consolidated balance sheets to the total of the same such amounts in the unaudited condensed consolidated statements of cash flows is as follows (in thousands): March 31, 2023 December 31, 2022 Cash and cash equivalents $ 956,341 $ 671,707 Restricted cash included in other assets 4,284 4,271 Total cash, cash equivalents and restricted cash $ 960,625 $ 675,978
Schedule of Accounts Receivable, Net	Accounts receivable, net consists of the following (in thousands): March 31, 2023 December 31, 2022 Accounts receivable $ 871,282 $ 928,490 Allowance for doubtful accounts (1,264) (19) Product sales rebate and returns reserve (7,143) (5,375) Accounts receivable, net $ 862,875 $ 923,096
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 1,060,261 $ 759,519 Finished goods 622,442 530,187 Total inventories $ 1,682,703 $ 1,289,706
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2023 December 31, 2022 Inventory deposits $ 243,923 $ 162,047 Other current assets 125,353 124,357 Other prepaid expenses and deposits 24,549 27,813 Total prepaid expenses and other current assets $ 393,825 $ 314,217
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 42,337 $ 41,500 Equipment and machinery 128,883 122,407 Computer hardware and software 50,892 52,148 Leasehold improvements 30,204 30,102 Furniture and fixtures 3,577 3,575 Construction-in-process 5,634 2,124 Property and equipment, gross 261,527 251,856 Less: accumulated depreciation (164,370) (156,847) Property and equipment, net $ 97,157 $ 95,009
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): March 31, 2023 December 31, 2022 Accrued compensation-related costs $ 57,776 $ 117,053 Accrued Supplier liability 78,168 71,481 Accrued manufacturing costs 138,530 45,379 Accrued product development costs 44,551 27,380 Other 32,739 31,194 Total accrued liabilities $ 351,764 $ 292,487
Schedule of Contract Assets, Contract Liabilities and Deferred Revenue	The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended March 31, 2023 2022 Contract liabilities, beginning balance $ 103,448 $ 93,382 Less: Revenue recognized from beginning balance (9,243) (8,248) Less: Beginning balance reclassified to deferred revenue (4,382) (3,837) Add: Contract liabilities recognized 15,224 17,125 Contract liabilities, ending balance $ 105,047 $ 98,422 Three Months Ended March 31, 2023 2022 Deferred revenue, beginning balance $ 1,041,246 $ 929,312 Less: Revenue recognized from beginning balance (214,450) (128,136) Add: Deferral of revenue in current period, excluding amounts recognized during the period 265,478 322,570 Deferred revenue, ending balance $ 1,092,274 $ 1,123,746
Schedule of Other Income (Expense), Net	Other income (expense), net consists of the following (in thousands): Three Months Ended March 31, 2023 2022 Interest income $ 22,509 $ 2,428 Unrealized gain (loss) on equity investments (5,571) 28,497 Other income (expense), net (4,792) 555 Total $ 12,146 $ 31,480

Acquisition, Goodwill and Acq_2

Acquisition, Goodwill and Acquisition-Related Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Finite-Lived Intangible Assets	Acquisition-related intangible assets were as follows (in thousands, except years): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (in years) December 31, 2022 Additions March 31, 2023 December 31, 2022 Amortization March 31, 2023 December 31, 2022 March 31, 2023 Developed technology $ 154,930 $ — $ 154,930 $ (79,036) $ (6,820) $ (85,856) $ 75,894 $ 69,074 4.3 Customer relationships 54,620 — 54,620 (14,097) (1,925) (16,022) 40,523 38,598 5.4 Trade name 12,390 — 12,390 (6,602) (570) (7,172) 5,788 5,218 2.3 Others 5,720 — 5,720 (5,720) — (5,720) — — 0.0 Total $ 227,660 $ — $ 227,660 $ (105,455) $ (9,315) $ (114,770) $ 122,205 $ 112,890 4.6
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of March 31, 2023, future estimated amortization expense related to the acquisition-related intangible assets is as follows (in thousands): Future Amortization Expense Remainder of 2023 $ 24,123 2024 26,759 2025 19,642 2026 17,260 2027 13,436 Thereafter 11,670 Total $ 112,890

Stockholders_ Equity and Stoc_2

Stockholders’ Equity and Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Shares Repurchased	A summary of the stock repurchase activity under the New Repurchase Program for the three months ended March 31, 2023 is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2023 Aggregate purchase price $ 82,275 Shares repurchased 735 Average price paid per share $ 111.90
Schedule of Option Activity	The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Number of Weighted- Weighted- Aggregate Balance—December 31, 2022 5,769 $ 14.09 2.0 $ 618,774 Options granted — — Options exercised (1,132) 7.72 Options canceled (1) 9.26 Balance—March 31, 2023 4,636 $ 15.65 1.9 $ 705,637 Vested and exercisable—March 31, 2023 4,225 $ 13.43 1.6 $ 652,547
Schedule of Restricted Stock Units Activity	A summary of the RSU activity is presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Aggregate Intrinsic Value Unvested balance—December 31, 2022 8,360 $ 85.83 1.7 $ 1,014,431 RSUs granted 577 132.83 RSUs vested (733) 77.09 RSUs forfeited/canceled (86) 94.48 Unvested balance—March 31, 2023 8,118 $ 89.89 1.7 $ 1,362,671
Schedule of Stock-Based Compensation Expense	The following table summarizes the stock-based compensation expense related to our equity awards (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 2,975 $ 1,309 Research and development 36,569 27,576 Sales and marketing 15,138 13,109 General and administrative 8,199 8,285 Total stock-based compensation $ 62,881 $ 50,279

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share Available to Common Stock	The following table sets forth the computation of our basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Numerator: Net income $ 436,473 $ 272,259 Denominator: Weighted-average shares used in computing net income per share, basic 306,985 308,045 Add weighted-average effect of dilutive securities: Employee equity awards 8,593 11,607 Weighted-average shares used in computing net income per share, diluted 315,578 319,652 Net income per share: Basic $ 1.42 $ 0.88 Diluted $ 1.38 $ 0.85
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Stock options and RSUs 21 64 Employee stock purchase plan 353 16 Total 374 80

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	Three Months Ended March 31, 2023 2022 Income before income taxes $ 496,724 $ 309,467 Provision for income taxes 60,251 37,208 Effective tax rate 12.1 % 12.0 %

Geographical Information (Table

Geographical Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of Revenue and Long Lived Assets, by Location	The following table represents revenue based on customers’ shipping addresses (in thousands): Three Months Ended March 31, 2023 2022 Americas (1) $ 1,115,011 $ 664,377 Europe, Middle East and Africa 128,316 134,805 Asia-Pacific 108,024 77,884 Total revenue $ 1,351,351 $ 877,066 (1) Includes $1.1 billion and $648.9 million revenue generated from the U.S. for the three months ended March 31, 2023 and March 31, 2022, respectively. Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location are summarized as follows (in thousands): March 31, 2023 December 31, 2022 United States $ 74,239 $ 71,540 International 22,918 23,469 Total $ 97,157 $ 95,009

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	$ 363,573		$ 397,261
Marketable Securities, Fair Value	2,346,803		2,322,469
Total Financial Assets, Fair Value	2,742,646		2,753,554
Unrealized gain (loss) on equity investments	(5,571)	$ 28,497
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	2,363,211		2,350,988
Unrealized Gains	1,600		357
Unrealized Losses	(18,008)		(28,876)
Fair Value	2,346,803		2,322,469
Level I
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	363,573		374,280
Total Financial Assets, Fair Value	1,221,022		1,391,567
Level II
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		22,981
Total Financial Assets, Fair Value	1,521,624		1,361,987
Level III
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
Total Financial Assets, Fair Value	0		0
Commercial paper
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	87,825		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	87,825		0
Unrealized Gains	0		0
Unrealized Losses	0		0
Fair Value	87,825		0
Commercial paper | Level I
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Commercial paper | Level II
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	87,825		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	87,825		0
Commercial paper | Level III
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Certificate of deposits
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	14,496		10,492
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	14,496		10,492
Certificate of deposits | Level I
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Certificate of deposits | Level II
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	14,496		10,492
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	14,496		10,492
Certificate of deposits | Level III
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
U.S. government notes
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	839,675		993,955
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	847,523		1,007,175
Unrealized Gains	122		3
Unrealized Losses	(7,970)		(13,223)
Fair Value	839,675		993,955
U.S. government notes | Level I
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	839,675		993,955
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	839,675		993,955
U.S. government notes | Level II
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
U.S. government notes | Level III
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Corporate bonds
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	1,040,610		1,113,134
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	1,048,045		1,125,920
Unrealized Gains	865		271
Unrealized Losses	(8,300)		(13,057)
Fair Value	1,040,610		1,113,134
Corporate bonds | Level I
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Corporate bonds | Level II
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	1,040,610		1,113,134
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	1,040,610		1,113,134
Corporate bonds | Level III
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Agency securities
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	378,693		215,380
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	379,818		217,893
Unrealized Gains	613		83
Unrealized Losses	(1,738)		(2,596)
Fair Value	378,693		215,380
Agency securities | Level I
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Agency securities | Level II
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	378,693		215,380
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	378,693		215,380
Agency securities | Level III
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Marketable equity securities
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	13,490		19,061
Fair value marketable equity securities	13,500
Unrealized gain (loss) on equity investments	(5,600)	$ 13,500
Initial cost for investment	3,000
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	13,490		19,061
Marketable equity securities | Level I
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	13,490		19,061
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	13,490		19,061
Marketable equity securities | Level II
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Marketable equity securities | Level III
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Marketable Securities
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	2,374,789		2,352,022
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	2,374,789		2,352,022
Marketable Securities | Level I
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	853,165		1,013,016
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	853,165		1,013,016
Marketable Securities | Level II
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	1,521,624		1,339,006
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	1,521,624		1,339,006
Marketable Securities | Level III
Assets, Fair Value Disclosure [Abstract]
Marketable Securities, Fair Value	0		0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Fair Value	0		0
Money market funds - restricted
Assets, Fair Value Disclosure [Abstract]
Other Assets, Fair Value	4,284		4,271
Money market funds - restricted | Level I
Assets, Fair Value Disclosure [Abstract]
Other Assets, Fair Value	4,284		4,271
Money market funds - restricted | Level II
Assets, Fair Value Disclosure [Abstract]
Other Assets, Fair Value	0		0
Money market funds - restricted | Level III
Assets, Fair Value Disclosure [Abstract]
Other Assets, Fair Value	0		0
Money market funds
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	315,895		322,294
Money market funds | Level I
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	315,895		322,294
Money market funds | Level II
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
Money market funds | Level III
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
Commercial paper
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		5,422
Commercial paper | Level I
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
Commercial paper | Level II
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		5,422
Commercial paper | Level III
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
U.S. government notes
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	47,678		51,986
U.S. government notes | Level I
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	47,678		51,986
U.S. government notes | Level II
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
U.S. government notes | Level III
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
Agency securities
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		17,559
Agency securities | Level I
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		0
Agency securities | Level II
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	0		17,559
Agency securities | Level III
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value	$ 0		$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Invested marketable securities, maximum maturity period	2 years
Marketable securities, maximum maturity period	24 months
Marketable securities, weighted average remaining duration	9 months 18 days
Unrealized gain on non-marketable equity securities	$ 0	$ 15,000,000

Fair Value Measurements - Unrea

Fair Value Measurements - Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized Losses within 12 months, Fair Value	$ 814,619
Unrealized Losses within 12 months, Unrealized Losses	(4,204)
Unrealized Losses 12 months or greater, Fair Value	871,880
Unrealized Losses 12 months or greater, Unrealized Losses	(13,804)
Total, Fair Value	1,686,499
Total, Unrealized Losses	(18,008)
U.S. government notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized Losses within 12 months, Fair Value	274,507
Unrealized Losses within 12 months, Unrealized Losses	(1,144)
Unrealized Losses 12 months or greater, Fair Value	439,448
Unrealized Losses 12 months or greater, Unrealized Losses	(6,826)
Total, Fair Value	713,955
Total, Unrealized Losses	(7,970)
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized Losses within 12 months, Fair Value	457,708
Unrealized Losses within 12 months, Unrealized Losses	(2,677)
Unrealized Losses 12 months or greater, Fair Value	370,215
Unrealized Losses 12 months or greater, Unrealized Losses	(5,623)
Total, Fair Value	827,923
Total, Unrealized Losses	(8,300)
Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized Losses within 12 months, Fair Value	82,404
Unrealized Losses within 12 months, Unrealized Losses	(383)
Unrealized Losses 12 months or greater, Fair Value	62,217
Unrealized Losses 12 months or greater, Unrealized Losses	(1,355)
Total, Fair Value	144,621
Total, Unrealized Losses	$ (1,738)

Fair Value Measurements - Inves

Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 1,608,879
Due in 1 to 2 years	737,924
Total debt securities	$ 2,346,803	$ 2,322,469

Fair Value Measurements - Nonma

Fair Value Measurements - Nonmarketable Equity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Cost of investments	$ 23,875	$ 23,625
Cumulative impairment and downward adjustment	(1,205)	(888)
Cumulative upward adjustment	16,731	16,731
Carrying amount of investments	$ 39,401	$ 39,468

Financial Statements Details -

Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Balance Sheet Components [Abstract]
Cash and cash equivalents	$ 956,341	$ 671,707
Restricted cash included in other assets	4,284	4,271
Total cash, cash equivalents and restricted cash	$ 960,625	$ 675,978	$ 639,283	$ 625,050

Financial Statements Details _2

Financial Statements Details - Accounts Receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Accounts receivable	$ 871,282	$ 928,490
Allowance for doubtful accounts	(1,264)	(19)
Product sales rebate and returns reserve	(7,143)	(5,375)
Accounts receivable, net	$ 862,875	$ 923,096

Financial Statements Details _3

Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Raw materials	$ 1,060,261	$ 759,519
Finished goods	622,442	530,187
Total inventories	$ 1,682,703	$ 1,289,706

Financial Statements Details _4

Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Inventory deposits	$ 243,923	$ 162,047
Other current assets	125,353	124,357
Other prepaid expenses and deposits	24,549	27,813
Total prepaid expenses and other current assets	$ 393,825	$ 314,217

Financial Statements Details _5

Financial Statements Details - Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 261,527		$ 251,856
Less: accumulated depreciation	(164,370)		(156,847)
Property and equipment, net	97,157		95,009
Depreciation	7,100	$ 5,600
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,337		41,500
Equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	128,883		122,407
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	50,892		52,148
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	30,204		30,102
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,577		3,575
Construction-in-process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,634		$ 2,124

Financial Statements Details _6

Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Accrued compensation-related costs	$ 57,776	$ 117,053
Accrued Supplier liability	78,168	71,481
Accrued manufacturing costs	138,530	45,379
Accrued product development costs	44,551	27,380
Other	32,739	31,194
Total accrued liabilities	$ 351,764	$ 292,487

Financial Statements Details _7

Financial Statements Details - Contract Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	$ 103,448	$ 93,382
Less: Revenue recognized from beginning balance	(9,243)	(8,248)
Less: Beginning balance reclassified to deferred revenue	(4,382)	(3,837)
Add: Contract liabilities recognized	15,224	17,125
Contract liabilities, ending balance	105,047	$ 98,422
Other Current Liabilities
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	45,200
Contract liabilities, ending balance	$ 46,900

Financial Statements Details _8

Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Change in Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning balance	$ 1,041,246	$ 929,312
Less: Revenue recognized from beginning balance	(214,450)	(128,136)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	265,478	322,570
Deferred revenue, ending balance	$ 1,092,274	$ 1,123,746

Financial Statements Details _9

Financial Statements Details - Other Performance Obligations (Details) $ in Millions	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation including contract liabilities, deferred revenue and other performance obligations, amount	$ 2,200
Product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	908.6
Unbilled Revenues
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	120.1
Unbilled Revenues | Product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	1,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1,300
Revenue, performance obligation, period	2 years
Revenue, performance obligation, percentage	82%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, performance obligation, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, performance obligation, period	3 years
Revenue, performance obligation, percentage	18%

Financial Statements Details_10

Financial Statements Details - Other Income (Expense), net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Balance Sheet Components [Abstract]
Interest income	$ 22,509	$ 2,428
Unrealized gain (loss) on equity investments	(5,571)	28,497
Other income (expense), net	(4,792)	555
Total other income (expense), net	$ 12,146	$ 31,480

Acquisition, Goodwill and Acq_3

Acquisition, Goodwill and Acquisition-Related Intangible Assets - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) acquisition
Business Acquisition [Line Items]
Number of completed acquisitions | acquisition			2
Amortization of intangible assets	$ 9,315	$ 7,300
Privately-held Technology Company
Business Acquisition [Line Items]
Total fair value of consideration transferred			$ 158,900
Common stock consideration			4,000
Intangible assets			62,300
Goodwill acquired			77,500
Net tangible assets acquired			19,100
Acquisition related costs			$ 4,700

Acquisition, Goodwill and Acq_4

Acquisition, Goodwill and Acquisition-Related Intangible Assets - Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount, beginning balance	$ 227,660
Accumulated Amortization, beginning balance	(105,455)
Gross Carrying Amount, Additions	0
Accumulated Amortization, Amortization	(9,315)	$ (7,300)
Accumulated Amortization, ending balance	(114,770)
Gross Carrying Amount, ending balance	227,660
Net Carrying Amount	$ 112,890		$ 122,205
Weighted Average Remaining Useful Life (in years)	4 years 7 months 6 days
Developed technology
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount, beginning balance	$ 154,930
Accumulated Amortization, beginning balance	(79,036)
Gross Carrying Amount, Additions	0
Accumulated Amortization, Amortization	(6,820)
Accumulated Amortization, ending balance	(85,856)
Gross Carrying Amount, ending balance	154,930
Net Carrying Amount	$ 69,074		75,894
Weighted Average Remaining Useful Life (in years)	4 years 3 months 18 days
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount, beginning balance	$ 54,620
Accumulated Amortization, beginning balance	(14,097)
Gross Carrying Amount, Additions	0
Accumulated Amortization, Amortization	(1,925)
Accumulated Amortization, ending balance	(16,022)
Gross Carrying Amount, ending balance	54,620
Net Carrying Amount	$ 38,598		40,523
Weighted Average Remaining Useful Life (in years)	5 years 4 months 24 days
Trade name
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount, beginning balance	$ 12,390
Accumulated Amortization, beginning balance	(6,602)
Gross Carrying Amount, Additions	0
Accumulated Amortization, Amortization	(570)
Accumulated Amortization, ending balance	(7,172)
Gross Carrying Amount, ending balance	12,390
Net Carrying Amount	$ 5,218		5,788
Weighted Average Remaining Useful Life (in years)	2 years 3 months 18 days
Others
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount, beginning balance	$ 5,720
Accumulated Amortization, beginning balance	(5,720)
Gross Carrying Amount, Additions	0
Accumulated Amortization, Amortization	0
Accumulated Amortization, ending balance	(5,720)
Gross Carrying Amount, ending balance	5,720
Net Carrying Amount	$ 0		$ 0
Weighted Average Remaining Useful Life (in years)	0 years

Acquisition, Goodwill and Acq_5

Acquisition, Goodwill and Acquisition-Related Intangible Assets - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Remainder of 2023	$ 24,123
2024	26,759
2025	19,642
2026	17,260
2027	13,436
Thereafter	11,670
Net Carrying Amount	$ 112,890	$ 122,205

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 30, 2022 patent	Nov. 25, 2020 patent	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments			$ 2,900
Non-cancellable purchase commitments, due in next twelve months			2,400
Non-cancelable purchase commitments, due after next twelve months			500
WSOU Investments, LLC
Long-term Purchase Commitment [Line Items]
Patents allegedly infringed, number | patent		3
Patents found not infringed, number | patent	1
Prepaid Expenses and Other Current Assets
Long-term Purchase Commitment [Line Items]
Deposits to purchase inventory			$ 246.7	$ 192.5

Stockholders_ Equity and Stoc_3

Stockholders’ Equity and Stock-Based Compensation - Narrative (Details) - USD ($)			3 Months Ended	12 Months Ended
	Jan. 01, 2023	Jan. 01, 2022	Mar. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount for stock repurchases			$ 1,000,000,000
Remaining authorized repurchase amount			174,500,000
Unamortized compensation costs			$ 602,900,000
Unamortized compensation costs weighted-average period			3 years 2 months 12 days
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	9,200,000
Number of shares available for grant (in shares)			99,400,000
2014 Equity Incentive Plan | Share-based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares outstanding to increase number of shares available for grant and issuance		3%
Maximum increase of number of shares available for issuance (in shares)				50,000,000
2014 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares outstanding to increase number of shares available for grant and issuance			1%
2014 Employee Stock Purchase Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)				10,000,000
2014 Employee Stock Purchase Plan | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	3,100,000
Shares issued (in shares)			139,758
Weighted-average purchase price (in dollars per share)			$ 102.66
Common stock reserved for issuance (in shares)			23,500,000

Stockholders_ Equity and Stoc_4

Stockholders’ Equity and Stock-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Aggregate purchase price	$ 82,275	$ 136,228
Shares repurchased (in shares)	735
Average price paid per share (in dollars per share)	$ 111.90

Stockholders_ Equity and Stoc_5

Stockholders’ Equity and Stock-Based Compensation - Stock Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Shares Underlying Outstanding Options
Outstanding, beginning balance (in shares)	5,769
Options granted (in shares)	0
Options exercised (in shares)	(1,132)
Options canceled (in shares)	(1)
Outstanding, ending balance (in shares)	4,636	5,769
Vested and exercisable (in shares)	4,225
Weighted- Average Exercise Price per Share
Outstanding, beginning balance (in dollars per share)	$ 14.09
Options granted (in dollars per share)	0
Options exercised (in dollars per share)	7.72
Options canceled (in dollars per share)	9.26
Outstanding, ending balance (in dollars per share)	15.65	$ 14.09
Vested and exercisable (in dollars per share)	$ 13.43
Weighted- Average Remaining Contractual Term (in Years) and Aggregate Intrinsic Value
Weighted-average remaining contractual term of stock options outstanding	1 year 10 months 24 days	2 years
Weighted-average remaining contractual term of stock options vested and exercisable	1 year 7 months 6 days
Aggregate intrinsic value of stock options outstanding	$ 705,637	$ 618,774
Aggregate intrinsic value of stock options outstanding, vested and exercisable	$ 652,547

Stockholders_ Equity and Stoc_6

Stockholders’ Equity and Stock-Based Compensation - Restricted Stock Unit (RSU) Activities (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Shares
Unvested beginning balance (in shares)	8,360
RSUs granted (in shares)	577
RSUs vested (in shares)	(733)
RSUs forfeited/canceled (in shares)	(86)
Unvested ending balance (in shares)	8,118	8,360
Weighted- Average Grant Date Fair Value Per Share
Unvested beginning balance (in dollars per share)	$ 85.83
RSUs granted (in dollars per share)	132.83
RSUs vested (in dollars per share)	77.09
RSUs forfeited/canceled (in dollars per share)	94.48
Unvested ending balance (in dollars per share)	$ 89.89	$ 85.83
Restricted Stock Unit Activities, Weighted-Average Remaining Contractual Term (in Years) and Aggregate Intrinsic Value
Unvested, weighted average remaining contractual term (in years)	1 year 8 months 12 days	1 year 8 months 12 days
Unvested, aggregate intrinsic value	$ 1,362,671	$ 1,014,431

Stockholders_ Equity and Stoc_7

Stockholders’ Equity and Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 62,881	$ 50,279
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	2,975	1,309
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	36,569	27,576
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	15,138	13,109
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 8,199	$ 8,285

Net Income Per Share - Basic an

Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income	$ 436,473	$ 272,259
Denominator:
Weighted-average shares used in computing net income per share, basic (in shares)	306,985	308,045
Add weighted-average effect of dilutive securities:
Employee equity awards (in shares)	8,593	11,607
Weighted-average shares used in computing net income per share, diluted (in shares)	315,578	319,652
Net income per share:
Basic (in dollars per share)	$ 1.42	$ 0.88
Diluted (in dollars per share)	$ 1.38	$ 0.85

Net Income Per Share - Antidilu

Net Income Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	374	80
Stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	21	64
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	353	16

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income before income taxes	$ 496,724	$ 309,467
Provision for income taxes	$ 60,251	$ 37,208
Effective tax rate	12.10%	12%

Geographical Information (Detai

Geographical Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | segment	1
Total revenue	$ 1,351,351	$ 877,066
Long-lived assets	97,157		$ 95,009
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	1,115,011	664,377
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	128,316	134,805
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	108,024	77,884
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	1,100,000	$ 648,900
Long-lived assets	74,239		71,540
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 22,918		$ 23,469