Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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, $0.0001 par value | |
Trading Symbol | ANET | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 311,100,142 | |
Entity Central Index Key | 0001596532 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,748,818 | $ 671,707 |
Marketable securities | 2,706,785 | 2,352,022 |
Accounts receivable, net | 833,374 | 923,096 |
Inventories | 1,893,538 | 1,289,706 |
Prepaid expenses and other current assets | 472,483 | 314,217 |
Total current assets | 7,654,998 | 5,550,748 |
Property and equipment, net | 102,592 | 95,009 |
Acquisition-related intangible assets, net | 95,458 | 122,205 |
Goodwill | 268,531 | 265,924 |
Investments | 62,288 | 39,468 |
Operating lease right-of-use assets | 58,888 | 53,390 |
Deferred tax assets | 793,015 | 574,912 |
Other assets | 33,265 | 73,754 |
TOTAL ASSETS | 9,069,035 | 6,775,410 |
CURRENT LIABILITIES: | ||
Accounts payable | 268,972 | 232,572 |
Accrued liabilities | 410,071 | 292,487 |
Deferred revenue | 698,675 | 637,432 |
Other current liabilities | 469,007 | 131,040 |
Total current liabilities | 1,846,725 | 1,293,531 |
Income taxes payable | 104,660 | 89,839 |
Operating lease liabilities, non-current | 48,044 | 43,964 |
Deferred revenue, non-current | 496,076 | 403,814 |
Other long-term liabilities | 67,975 | 58,442 |
TOTAL LIABILITIES | 2,563,480 | 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 September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.0001 par value—1,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 310,972 and 306,890 shares issued and outstanding as of September 30, 2023 and December 31, 2022 | 31 | 31 |
Additional paid-in capital | 2,028,301 | 1,780,714 |
Retained earnings | 4,500,389 | 3,138,983 |
Accumulated other comprehensive income (loss) | (23,166) | (33,908) |
TOTAL STOCKHOLDERS’ EQUITY | 6,505,555 | 4,885,820 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 9,069,035 | $ 6,775,410 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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) | 310,972,000 | 306,890,000 |
Common stock, shares outstanding (in shares) | 310,972,000 | 306,890,000 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Total revenue | $ 1,509,456 | $ 1,176,801 | $ 4,319,731 | $ 3,105,758 |
Cost of revenue: | ||||
Total cost of revenue | 567,037 | 466,821 | 1,688,676 | 1,198,668 |
Gross profit | 942,419 | 709,980 | 2,631,055 | 1,907,090 |
Operating expenses: | ||||
Research and development | 212,353 | 187,807 | 643,437 | 537,971 |
Sales and marketing | 102,033 | 81,401 | 293,496 | 241,512 |
General and administrative | 25,338 | 23,425 | 76,787 | 69,420 |
Total operating expenses | 339,724 | 292,633 | 1,013,720 | 848,903 |
Income from operations | 602,695 | 417,347 | 1,617,335 | 1,058,187 |
Other income (expense), net | 41,815 | 6,817 | 110,300 | 37,764 |
Income before income taxes | 644,510 | 424,164 | 1,727,635 | 1,095,951 |
Provision for income taxes | 99,183 | 70,165 | 253,950 | 170,594 |
Net income | $ 545,327 | $ 353,999 | $ 1,473,685 | $ 925,357 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.76 | $ 1.16 | $ 4.78 | $ 3.02 |
Diluted (in dollars per share) | $ 1.72 | $ 1.13 | $ 4.66 | $ 2.92 |
Weighted-average shares used in computing net income per share: | ||||
Basic (in shares) | 310,185 | 304,931 | 308,602 | 306,576 |
Diluted (in shares) | 317,631 | 314,401 | 316,564 | 316,745 |
Product | ||||
Revenue: | ||||
Total revenue | $ 1,285,548 | $ 1,008,689 | $ 3,719,179 | $ 2,619,213 |
Cost of revenue: | ||||
Total cost of revenue | 522,866 | 432,569 | 1,565,341 | 1,102,012 |
Service | ||||
Revenue: | ||||
Total revenue | 223,908 | 168,112 | 600,552 | 486,545 |
Cost of revenue: | ||||
Total cost of revenue | $ 44,171 | $ 34,252 | $ 123,335 | $ 96,656 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 545,327 | $ 353,999 | $ 1,473,685 | $ 925,357 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (1,378) | (2,574) | (1,045) | (5,306) |
Available-for-sale investments: | ||||
Change in net unrealized gains (losses) on available-for-sale securities | 3,446 | (3,236) | 7,955 | (33,523) |
Reclassification adjustment included in net income | (26) | 0 | 3,832 | 0 |
Other comprehensive income (loss) | 2,042 | (5,810) | 10,742 | (38,829) |
Comprehensive income | $ 547,369 | $ 348,189 | $ 1,484,427 | $ 886,528 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 307,681,000 | ||||
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 | 925,357 | 925,357 | |||
Other comprehensive income (loss), net of tax | (38,829) | (38,829) | |||
Stock-based compensation | 165,980 | 165,980 | |||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 4,451,000 | ||||
Issuance of common stock in connection with employee equity incentive plans | 43,073 | $ 1 | 43,072 | ||
Repurchase of common stock (in shares) | (6,433,000) | ||||
Repurchase of common stock | (667,470) | $ (1) | (667,469) | ||
Tax withholding paid for net share settlement of equity awards (in shares) | (217,000) | ||||
Tax withholding paid for net share settlement of equity awards | (25,542) | (25,542) | |||
Common stock issued for business acquisition (in shares) | 33,000 | ||||
Common stock issued for business acquisition | 4,049 | 4,049 | |||
Ending balance (in shares) at Sep. 30, 2022 | 305,515,000 | ||||
Ending balance at Sep. 30, 2022 | 4,385,218 | $ 31 | 1,717,605 | 2,714,711 | (47,129) |
Beginning balance (in shares) at Jun. 30, 2022 | 304,455,000 | ||||
Beginning balance at Jun. 30, 2022 | 4,005,792 | $ 30 | 1,638,787 | 2,408,294 | (41,319) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 353,999 | 353,999 | |||
Other comprehensive income (loss), net of tax | (5,810) | (5,810) | |||
Stock-based compensation | 65,477 | 65,477 | |||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 1,593,000 | ||||
Issuance of common stock in connection with employee equity incentive plans | 20,082 | $ 1 | 20,081 | ||
Repurchase of common stock (in shares) | (479,000) | ||||
Repurchase of common stock | (47,582) | (47,582) | |||
Tax withholding paid for net share settlement of equity awards (in shares) | (54,000) | ||||
Tax withholding paid for net share settlement of equity awards | (6,740) | (6,740) | |||
Ending balance (in shares) at Sep. 30, 2022 | 305,515,000 | ||||
Ending balance at Sep. 30, 2022 | $ 4,385,218 | $ 31 | 1,717,605 | 2,714,711 | (47,129) |
Beginning balance (in shares) at Dec. 31, 2022 | 306,890,000 | 306,890,000 | |||
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 | 1,473,685 | 1,473,685 | |||
Other comprehensive income (loss), net of tax | 10,742 | 10,742 | |||
Stock-based compensation | 215,398 | 215,398 | |||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 5,162,000 | ||||
Issuance of common stock in connection with employee equity incentive plans | $ 53,797 | 53,797 | |||
Repurchase of common stock (in shares) | (954,000) | (954,000) | |||
Repurchase of common stock | $ (112,279) | (112,279) | |||
Tax withholding paid for net share settlement of equity awards (in shares) | (158,000) | ||||
Tax withholding paid for net share settlement of equity awards | (23,939) | (23,939) | |||
Common stock issued for business acquisition (in shares) | 32,000 | ||||
Common stock issued for business acquisition | $ 2,331 | 2,331 | |||
Ending balance (in shares) at Sep. 30, 2023 | 310,972,000 | 310,972,000 | |||
Ending balance at Sep. 30, 2023 | $ 6,505,555 | $ 31 | 2,028,301 | 4,500,389 | (23,166) |
Beginning balance (in shares) at Jun. 30, 2023 | 309,355,000 | ||||
Beginning balance at Jun. 30, 2023 | 5,857,582 | $ 31 | 1,927,697 | 3,955,062 | (25,208) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 545,327 | 545,327 | |||
Other comprehensive income (loss), net of tax | 2,042 | 2,042 | |||
Stock-based compensation | 85,390 | 85,390 | |||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 1,662,000 | ||||
Issuance of common stock in connection with employee equity incentive plans | $ 23,387 | 23,387 | |||
Repurchase of common stock (in shares) | 0 | ||||
Tax withholding paid for net share settlement of equity awards (in shares) | (45,000) | ||||
Tax withholding paid for net share settlement of equity awards | $ (8,173) | (8,173) | |||
Ending balance (in shares) at Sep. 30, 2023 | 310,972,000 | 310,972,000 | |||
Ending balance at Sep. 30, 2023 | $ 6,505,555 | $ 31 | $ 2,028,301 | $ 4,500,389 | $ (23,166) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,473,685 | $ 925,357 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and other | 56,233 | 45,169 |
Stock-based compensation | 215,398 | 165,980 |
Noncash lease expense | 13,615 | 13,837 |
Deferred income taxes | (217,489) | (148,355) |
Gain on strategic investments | (18,699) | (24,121) |
Amortization (accretion) of investment premiums (discounts) | (22,389) | 14,167 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 89,722 | (129,947) |
Inventories | (603,832) | (449,792) |
Other assets | (118,622) | (86,895) |
Accounts payable | 33,740 | 73,480 |
Accrued liabilities | 117,481 | 14,690 |
Deferred revenue | 153,505 | (1,245) |
Income taxes, net | 346,170 | 41,074 |
Other liabilities | (10,968) | (1,059) |
Net cash provided by operating activities | 1,507,550 | 452,340 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities of marketable securities | 1,564,950 | 1,277,821 |
Proceeds from sale of marketable securities | 49,584 | 186,782 |
Purchases of marketable securities | (1,934,156) | (973,489) |
Purchases of property and equipment | (28,424) | (34,184) |
Cash paid for business combinations, net of cash acquired | 1,799 | (145,087) |
Investment in notes and privately-held companies | (4,250) | (12,691) |
Net cash provided by (used in) investing activities | (350,497) | 299,152 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock under equity plans | 53,797 | 43,073 |
Tax withholding paid on behalf of employees for net share settlement | (23,939) | (25,542) |
Repurchases of common stock | (112,279) | (667,470) |
Net cash used in financing activities | (82,421) | (649,939) |
Effect of exchange rate changes | (934) | (6,090) |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,073,698 | 95,463 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period | 675,978 | 625,050 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | 1,749,676 | 720,513 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | ||
Right-of-use assets obtained in exchange for lease obligations | 19,126 | 7,300 |
Property and equipment included in accounts payable and accrued liabilities | 3,965 | 5,704 |
Common stock issued for business acquisition | $ 2,331 | $ 4,049 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 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 and nine months ended September 30, 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, recession risks, and potential supply chain and other disruptions from the Russia-Ukraine and Israel-Hamas conflicts, and the U.S. trade war with China. We have worked 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. Over time, the recovery of capacity should allow us to ship products against previously committed deployment plans and accelerate some deployments where needed, while trying to limit building customer inventory. On this basis, we expect some shipments against these deployment plans to extend into 2024. As customer lead times reduce more broadly, we have seen and expect to continue to see a commensurate reduction in visibility to customer demand and a gradual return to somewhat shorter demand-planning horizons which has resulted in lower demand levels. Given the shipment and order patterns described above, near term revenue trends may not be reflective of current demand levels, but will benefit from deployment plans that had been previously committed. 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 shorten. Although these elevated inventory positions and purchase commitments are largely related to relatively early life cycle products, the larger magnitude of these balances, combined with a reduction in customer demand-planning horizons, has resulted in increased risk that we may not be able to sell all of this inventory, which in turn has resulted, and may in the future result, in the need for us to incur excess and obsolete inventory-related charges. 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 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 recent conflicts between Russia-Ukraine, continued escalation of this conflict as well as the Israeli-Hamas conflict may negatively impact the global economy and our future operating results and financial condition. Management continues to actively monitor the impact of 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 some of our customers, following a year of elevated purchases, must now consider changing technology roadmaps and priorities, including the need for the rapid deployment of AI and related technologies, resulting in some uncertainty as to future investment plans and a more constrained approach to some forecasts and orders in the near term. 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, particularly in the enterprise market where we are continuing to expand our penetration. 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 | 9 Months Ended |
Sep. 30, 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): September 30, 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 $ 709,525 $ — $ — $ 709,525 $ 322,294 $ — $ — $ 322,294 Commercial paper — — — — — 5,422 — 5,422 U.S. government notes — — — — 51,986 — — 51,986 Agency securities — — — — — 17,559 — 17,559 709,525 — — 709,525 374,280 22,981 — 397,261 Marketable Securities: Commercial paper — 27,764 — 27,764 — — — — Certificates of deposits (1) — 7,000 — 7,000 — 10,492 — 10,492 U.S. government notes 901,551 — — 901,551 993,955 — — 993,955 Corporate bonds — 1,125,203 — 1,125,203 — 1,113,134 — 1,113,134 Agency securities — 645,267 — 645,267 — 215,380 — 215,380 Marketable equity securities (2) — — — — 19,061 — — 19,061 901,551 1,805,234 — 2,706,785 1,013,016 1,339,006 — 2,352,022 Other Assets: Money market funds - restricted 858 — — 858 4,271 — — 4,271 Total Financial Assets $ 1,611,934 $ 1,805,234 $ — $ 3,417,168 $ 1,391,567 $ 1,361,987 $ — $ 2,753,554 ______________________________________ (1) As of September 30, 2023 and December 31, 2022, all of our certificates of deposits were domestic deposits. (2) During the three months ended September 30, 2023, the Company sold all its shares of marketable equity securities for $23.9 million. This publicly-traded equity investment generated a realized loss of $1.0 million and an unrealized gain of $5.8 million for the three and nine months ended September 30, 2023, respectively. The initial cost of this investment was $3.0 million with no changes since our initial investment. The cumulative gain from the initial purchase was $20.9 million, the majority of which has been reflected in prior periods as net unrealized gains. The realized and unrealized gains/losses are included in Othe r income (expense), net on the unaudited Condensed Consolidated Statements of Operations. Refer to Note 3. Financial Statements Details. During the three and nine months ended September 30, 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): September 30, 2023 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 27,764 $ — $ — $ 27,764 $ — $ — $ — $ — U.S. government 906,878 — (5,327) 901,551 1,007,175 3 (13,223) 993,955 Corporate bonds 1,132,878 42 (7,717) 1,125,203 1,125,920 271 (13,057) 1,113,134 Agency securities 648,997 10 (3,740) 645,267 217,893 83 (2,596) 215,380 Total $ 2,716,517 $ 52 $ (16,784) $ 2,699,785 $ 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, our debt securities are generally not subject to credit risk; therefore, we did not recognize any credit losses or non-credit-related impairments related to such securities for the three and nine months ended September 30, 2023. All unrealized losses were recognized in other comprehensive income (loss). Realized gains or losses were immaterial for the three and nine months ended September 30, 2023. The following table is an analysis of our marketable debt securities in unrealized loss positions (in thousands): September 30, 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 $ 688,395 $ (3,625) $ 182,156 $ (1,702) $ 870,551 $ (5,327) Corporate bonds 925,541 (5,928) 163,152 (1,789) 1,088,693 (7,717) Agency securities 542,013 (3,158) 62,479 (582) 604,492 (3,740) Total $ 2,155,949 $ (12,711) $ 407,787 $ (4,073) $ 2,563,736 $ (16,784) As of September 30, 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): September 30, 2023 Fair Value Due in 1 year or less $ 1,517,054 Due in 1 to 2 years 1,182,731 Total debt securities $ 2,699,785 The weighted-average remaining duration of our marketable debt securities is approximately 0.9 years as of September 30, 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 for our non-marketable equity securities during the three and nine months ended September 30, 2023 and September 30, 2022, and w e recorded an immaterial amount of realized and unrealized losses for the three and nine months ended September 30, 2023 and September 30, 2022 . Unrealized gains f or our non-marketable equity securities are summarized below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized gains on non-marketable equity securities (1) $ 500 $ 1,681 $ 13,901 $ 16,681 (1) These unrealized gains were recorded on investments that were re-measured to fair value as of the date observable transactions occurred. 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 non-marketable equity securities . The following table summarizes the activity related to our non-marketable equity securities as of September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 December 31, 2022 Cost of investments (1) $ 31,656 $ 23,625 Cumulative impairment and downward adjustment — (888) Cumulative upward adjustment 30,632 16,731 Carrying amount of investments $ 62,288 $ 39,468 |
Financial Statements Details
Financial Statements Details | 9 Months Ended |
Sep. 30, 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): September 30, 2023 December 31, 2022 Cash and cash equivalents $ 1,748,818 $ 671,707 Restricted cash included in other assets 858 4,271 Total cash, cash equivalents and restricted cash $ 1,749,676 $ 675,978 Accounts Receivable, net Accounts receivable, net consists of the following (in thousands): September 30, 2023 December 31, 2022 Accounts receivable $ 846,577 $ 928,490 Allowance for doubtful accounts (2,485) (19) Product sales rebate and returns reserve (10,718) (5,375) Accounts receivable, net $ 833,374 $ 923,096 Inventories Inventories consist of the following (in thousands): September 30, 2023 December 31, 2022 Raw materials $ 944,329 $ 759,519 Finished goods 949,209 530,187 Total inventories $ 1,893,538 $ 1,289,706 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2023 December 31, 2022 Inventory deposits $ 198,369 $ 162,047 Other current assets 274,114 152,170 Total prepaid expenses and other current assets $ 472,483 $ 314,217 Property and Equipment, net Property and equipment, net consists of the following (in thousands): September 30, 2023 December 31, 2022 Land $ 44,017 $ 41,500 Equipment and machinery 142,205 122,407 Computer hardware and software 57,052 52,148 Leasehold improvements 32,146 30,102 Furniture and fixtures 3,559 3,575 Construction-in-process 4,422 2,124 Property and equipment, gross 283,401 251,856 Less: accumulated depreciation (180,809) (156,847) Property and equipment, net $ 102,592 $ 95,009 Depreciation expense was $8.6 million and $6.9 million for the three months ended September 30, 2023 and 2022, respectively, and $23.5 million and $18.7 million for the nine months ended September 30, 2023 and 2022, respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): September 30, 2023 December 31, 2022 Accrued compensation-related costs $ 99,382 $ 117,053 Accrued supplier liability 183,148 71,481 Accrued manufacturing costs 56,740 45,379 Accrued product development costs 33,184 27,380 Other 37,617 31,194 Total accrued liabilities $ 410,071 $ 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contract liabilities, beginning balance $ 110,097 $ 101,600 $ 103,448 $ 93,382 Less: Revenue recognized from beginning balance (10,222) (9,173) (33,466) (29,296) Less: Beginning balance reclassified to deferred revenue (5,306) (9,898) (5,228) (2,998) Add: Contract liabilities recognized 25,712 18,247 55,527 39,688 Contract liabilities, ending balance $ 120,281 $ 100,776 $ 120,281 $ 100,776 As of September 30, 2023 and December 31, 2022, $52.5 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Deferred revenue, beginning balance $ 1,084,904 $ 1,033,490 $ 1,041,246 $ 929,312 Less: Revenue recognized from beginning balance (173,494) (234,515) (506,859) (457,309) Add: Deferral of revenue in current period, excluding amounts recognized during the period 283,341 142,069 660,364 469,041 Deferred revenue, ending balance $ 1,194,751 $ 941,044 $ 1,194,751 $ 941,044 Other Performance Obligations Other performance obligations totaling $820.3 million as of September 30, 2023 include unbilled multi-year PCS and service contract amounts of $313.2 million and $507.1 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 $2.1 billion. Included in this amount is the $507.1 million of binding contractual agreements related primarily to future product shipments that are expected to be recognized as revenue over the next two years. In addition, approximately 76% of the remaining $1.6 billion of this future revenue is expected to be recognized over the next two years and approximately 24% 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest income $ 43,676 $ 6,929 $ 98,391 $ 13,783 Gain (loss) on strategic investments (473) 708 18,699 24,121 Other income (expense), net (1,388) (820) (6,790) (140) Total $ 41,815 $ 6,817 $ 110,300 $ 37,764 |
Acquisition, Goodwill and Acqui
Acquisition, Goodwill and Acquisition-Related Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition, Goodwill and Acquisition-Related Intangible Assets | Acquisition, Goodwill and Acquisition-Related Intangible Assets Acquisitions We had no material business acquisitions during the nine months ended September 30, 2023. 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 the two acquisitions have been finalized. No changes were made to the purchase price allocation for the three and nine months ended September 30, 2023. Goodwill No material changes were made to the carrying values of goodwill for the three and nine months ended September 30, 2023. Acquisition-Related Intangible Assets Acquisition-related intangible assets, excluding those that are fully amortized, 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 September 30, 2023 December 31, 2022 Amortization September 30, 2023 December 31, 2022 September 30, 2023 Developed technology $ 154,930 $ — $ 154,930 $ (79,036) $ (19,262) $ (98,298) $ 75,894 $ 56,632 4.2 Customer relationships 54,620 — 54,620 (14,097) (5,775) (19,872) 40,523 34,748 5.0 Trade name 12,390 — 12,390 (6,602) (1,710) (8,312) 5,788 4,078 1.8 Total $ 221,940 $ — $ 221,940 $ (99,735) $ (26,747) $ (126,482) $ 122,205 $ 95,458 4.4 Amortization expense related to acquisition-related intangible assets was $8.1 million and $9.3 million for the three months ended September 30, 2023 and 2022, respectively, and $26.7 million and $24.3 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, future estimated amortization expense related to the acquisition-related intangible assets is as follows (in thousands): Future Amortization Expense Remainder of 2023 $ 6,691 2024 26,759 2025 19,642 2026 17,260 2027 13,436 Thereafter 11,670 Total $ 95,458 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 September 30, 2023, we had non-cancellable purchase commitments of $2.0 billion, of which $1.7 billion have expected receipt dates within 12 months, and $0.3 billion have expected 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 $201.1 million and $192.5 million as of September 30, 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. On May 30, 2023, the US Patent Trial and Appeal Board (“PTAB”) ruled all challenged claims in the inter partes review unpatentable. The district court case remains stayed pending appeal and/or final resolution of the PTAB ruling. 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 September 30, 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 |
Stockholders_ Equity and Stock-
Stockholders’ Equity and Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders’ Equity and Stock-Based Compensation | Stockholders’ Equity and Stock-Based Compensation Stock Repurchase Program In October 2021, our board of directors 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 September 30, 2023, the remaining authorized amount for stock repurchases under the Repurchase Program was approximately $144.5 million. We did not repurchase any shares during the three months ended September 30, 2023. A summary of the stock repurchase activity under the Repurchase Program for the nine months ended September 30, 2023 is as follows (in thousands, except per share amounts): Nine Months Ended September 30, 2023 Aggregate purchase price $ 112,279 Shares repurchased 954 Average price paid per share $ 117.70 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 million 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 9.2 million shares to the shares available for issuance under the 2014 Plan. As of September 30, 2023, there remained approximately 96.5 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 million 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 nine months ended September 30, 2023, we issued 279,498 shares at a weighted-average purchase price of $105.69 per share under the ESPP. As of September 30, 2023, there remained approximately 23.4 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 (2,694) 9.00 Options canceled (2) 8.10 Balance—September 30, 2023 3,073 $ 18.56 1.8 $ 508,139 Vested and exercisable—September 30, 2023 2,799 $ 16.61 1.5 $ 468,286 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 2,575 156.34 RSUs vested (2,166) 78.49 RSUs forfeited/canceled (235) 98.72 Unvested balance—September 30, 2023 8,534 $ 109.13 1.9 $ 1,569,587 Stock-Based Compensation Expense The following table summarizes the stock-based compensation expense related to our equity awards (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 3,717 $ 2,992 $ 9,516 $ 6,613 Research and development 47,965 37,698 125,671 93,723 Sales and marketing 20,490 16,103 51,461 42,039 General and administrative 13,218 8,684 28,750 23,605 Total stock-based compensation $ 85,390 $ 65,477 $ 215,398 $ 165,980 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 545,327 $ 353,999 $ 1,473,685 $ 925,357 Denominator: Weighted-average shares used in computing net income per share, basic 310,185 304,931 308,602 306,576 Add weighted-average effect of dilutive securities: Employee equity awards 7,446 9,470 7,962 10,169 Weighted-average shares used in computing net income per share, diluted 317,631 314,401 316,564 316,745 Net income per share: Basic $ 1.76 $ 1.16 $ 4.78 $ 3.02 Diluted $ 1.72 $ 1.13 $ 4.66 $ 2.92 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options and RSUs 4 292 191 379 Employee stock purchase plan 25 295 150 104 Total 29 587 341 483 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (in thousands, except percentages) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Income before income taxes $ 644,510 $ 424,164 $ 1,727,635 $ 1,095,951 Provision for income taxes 99,183 70,165 $ 253,950 170,594 Effective tax rate 15.4 % 16.5 % 14.7 % 15.6 % The decrease in the effective tax rates in the three and nine months ended September 30, 2023, as compared to the same periods in 2022, was primarily due to an increase in tax benefits attributable to stock-based compensation. |
Geographical Information
Geographical Information | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Americas (1) $ 1,184,717 $ 977,674 $ 3,454,237 $ 2,487,106 Europe, Middle East and Africa 173,175 110,793 469,114 350,136 Asia-Pacific 151,564 88,334 396,380 268,516 Total revenue $ 1,509,456 $ 1,176,801 $ 4,319,731 $ 3,105,758 (1) Includes $1,150.5 million and $969.2 million revenue generated from the U.S. for the three months ended September 30, 2023 and September 30, 2022, respectively, and $3,366.8 million and $2,456.8 million for the nine months ended September 30, 2023 and September 30, 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): September 30, 2023 December 31, 2022 United States $ 80,449 $ 71,540 International 22,143 23,469 Total $ 102,592 $ 95,009 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 545,327 | $ 353,999 | $ 1,473,685 | $ 925,357 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Yvonne Wassenaar [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 12, 2023, Yvonne Wassenaar, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of 819 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until December 16, 2024, or earlier if all transactions under the trading arrangement are completed. | |
Name | Yvonne Wassenaar | |
Title | member of our Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 12, 2023 | |
Arrangement Duration | 461 days | |
Aggregate Available | 819 | 819 |
John McCool [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 8, 2023, John McCool, our Chief Platform Officer, and Senior Vice President of Engineering and Operations , adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to: (i) 29,341 shares of our common stock; (ii) a number of shares of our common stock that may be earned in connection with grants of performance-based restricted stock units, which cannot be determined at this time; and (iii) a number of shares of our common stock that will be purchased under the 2014 ESPP during the term of the trading arrangement, which cannot be determined at this time. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until December 8, 2024, or earlier if all transactions under the trading arrangement are completed. | |
Name | John McCool | |
Title | Chief Platform Officer, and Senior Vice President of Engineering and Operations | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 8, 2023 | |
Arrangement Duration | 457 days | |
Aggregate Available | 29,341 | 29,341 |
Marc Taxay [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 13, 2023, Marc Taxay, our Senior Vice President and General Counsel, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to (i) 39,135 shares of our common stock; and (ii) a number of shares of our common stock that may be earned in connection with grants of performance-based restricted stock units, which cannot be determined at this time. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until January 1, 2025, or earlier if all transactions under the trading arrangement are completed. | |
Name | Marc Taxay | |
Title | Senior Vice President and General Counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 13, 2023 | |
Arrangement Duration | 476 days | |
Aggregate Available | 39,135 | 39,135 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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, recession risks, and potential supply chain and other disruptions from the Russia-Ukraine and Israel-Hamas conflicts, and the U.S. trade war with China. We have worked 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. Over time, the recovery of capacity should allow us to ship products against previously committed deployment plans and accelerate some deployments where needed, while trying to limit building customer inventory. On this basis, we expect some shipments against these deployment plans to extend into 2024. As customer lead times reduce more broadly, we have seen and expect to continue to see a commensurate reduction in visibility to customer demand and a gradual return to somewhat shorter demand-planning horizons which has resulted in lower demand levels. Given the shipment and order patterns described above, near term revenue trends may not be reflective of current demand levels, but will benefit from deployment plans that had been previously committed. 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 shorten. Although these elevated inventory positions and purchase commitments are largely related to relatively early life cycle products, the larger magnitude of these balances, combined with a reduction in customer demand-planning horizons, has resulted in increased risk that we may not be able to sell all of this inventory, which in turn has resulted, and may in the future result, in the need for us to incur excess and obsolete inventory-related charges. 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 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 recent conflicts between Russia-Ukraine, continued escalation of this conflict as well as the Israeli-Hamas conflict may negatively impact the global economy and our future operating results and financial condition. |
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) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule 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): September 30, 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 $ 709,525 $ — $ — $ 709,525 $ 322,294 $ — $ — $ 322,294 Commercial paper — — — — — 5,422 — 5,422 U.S. government notes — — — — 51,986 — — 51,986 Agency securities — — — — — 17,559 — 17,559 709,525 — — 709,525 374,280 22,981 — 397,261 Marketable Securities: Commercial paper — 27,764 — 27,764 — — — — Certificates of deposits (1) — 7,000 — 7,000 — 10,492 — 10,492 U.S. government notes 901,551 — — 901,551 993,955 — — 993,955 Corporate bonds — 1,125,203 — 1,125,203 — 1,113,134 — 1,113,134 Agency securities — 645,267 — 645,267 — 215,380 — 215,380 Marketable equity securities (2) — — — — 19,061 — — 19,061 901,551 1,805,234 — 2,706,785 1,013,016 1,339,006 — 2,352,022 Other Assets: Money market funds - restricted 858 — — 858 4,271 — — 4,271 Total Financial Assets $ 1,611,934 $ 1,805,234 $ — $ 3,417,168 $ 1,391,567 $ 1,361,987 $ — $ 2,753,554 ______________________________________ (1) As of September 30, 2023 and December 31, 2022, all of our certificates of deposits were domestic deposits. (2) During the three months ended September 30, 2023, the Company sold all its shares of marketable equity securities for $23.9 million. This publicly-traded equity investment generated a realized loss of $1.0 million and an unrealized gain of $5.8 million for the three and nine months ended September 30, 2023, respectively. The initial cost of this investment was $3.0 million with no changes since our initial investment. The cumulative gain from the initial purchase was $20.9 million, the majority of which has been reflected in prior periods as net unrealized gains. The realized and unrealized gains/losses are included in Othe September 30, 2023 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 27,764 $ — $ — $ 27,764 $ — $ — $ — $ — U.S. government 906,878 — (5,327) 901,551 1,007,175 3 (13,223) 993,955 Corporate bonds 1,132,878 42 (7,717) 1,125,203 1,125,920 271 (13,057) 1,113,134 Agency securities 648,997 10 (3,740) 645,267 217,893 83 (2,596) 215,380 Total $ 2,716,517 $ 52 $ (16,784) $ 2,699,785 $ 2,350,988 $ 357 $ (28,876) $ 2,322,469 |
Schedule of 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): September 30, 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 $ 688,395 $ (3,625) $ 182,156 $ (1,702) $ 870,551 $ (5,327) Corporate bonds 925,541 (5,928) 163,152 (1,789) 1,088,693 (7,717) Agency securities 542,013 (3,158) 62,479 (582) 604,492 (3,740) Total $ 2,155,949 $ (12,711) $ 407,787 $ (4,073) $ 2,563,736 $ (16,784) |
Schedule of 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): September 30, 2023 Fair Value Due in 1 year or less $ 1,517,054 Due in 1 to 2 years 1,182,731 Total debt securities $ 2,699,785 |
Schedule of Gain and Losses on Non-marketable Equity Securities | Unrealized gains for our non-marketable equity securities are summarized below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized gains on non-marketable equity securities (1) $ 500 $ 1,681 $ 13,901 $ 16,681 |
Schedule of Equity Securities without Readily Determinable Fair Value | The following table summarizes the activity related to our non-marketable equity securities as of September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 December 31, 2022 Cost of investments (1) $ 31,656 $ 23,625 Cumulative impairment and downward adjustment — (888) Cumulative upward adjustment 30,632 16,731 Carrying amount of investments $ 62,288 $ 39,468 |
Financial Statements Details (T
Financial Statements Details (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, 2023 December 31, 2022 Cash and cash equivalents $ 1,748,818 $ 671,707 Restricted cash included in other assets 858 4,271 Total cash, cash equivalents and restricted cash $ 1,749,676 $ 675,978 |
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following (in thousands): September 30, 2023 December 31, 2022 Accounts receivable $ 846,577 $ 928,490 Allowance for doubtful accounts (2,485) (19) Product sales rebate and returns reserve (10,718) (5,375) Accounts receivable, net $ 833,374 $ 923,096 |
Schedule of Inventories | Inventories consist of the following (in thousands): September 30, 2023 December 31, 2022 Raw materials $ 944,329 $ 759,519 Finished goods 949,209 530,187 Total inventories $ 1,893,538 $ 1,289,706 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2023 December 31, 2022 Inventory deposits $ 198,369 $ 162,047 Other current assets 274,114 152,170 Total prepaid expenses and other current assets $ 472,483 $ 314,217 |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): September 30, 2023 December 31, 2022 Land $ 44,017 $ 41,500 Equipment and machinery 142,205 122,407 Computer hardware and software 57,052 52,148 Leasehold improvements 32,146 30,102 Furniture and fixtures 3,559 3,575 Construction-in-process 4,422 2,124 Property and equipment, gross 283,401 251,856 Less: accumulated depreciation (180,809) (156,847) Property and equipment, net $ 102,592 $ 95,009 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): September 30, 2023 December 31, 2022 Accrued compensation-related costs $ 99,382 $ 117,053 Accrued supplier liability 183,148 71,481 Accrued manufacturing costs 56,740 45,379 Accrued product development costs 33,184 27,380 Other 37,617 31,194 Total accrued liabilities $ 410,071 $ 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contract liabilities, beginning balance $ 110,097 $ 101,600 $ 103,448 $ 93,382 Less: Revenue recognized from beginning balance (10,222) (9,173) (33,466) (29,296) Less: Beginning balance reclassified to deferred revenue (5,306) (9,898) (5,228) (2,998) Add: Contract liabilities recognized 25,712 18,247 55,527 39,688 Contract liabilities, ending balance $ 120,281 $ 100,776 $ 120,281 $ 100,776 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Deferred revenue, beginning balance $ 1,084,904 $ 1,033,490 $ 1,041,246 $ 929,312 Less: Revenue recognized from beginning balance (173,494) (234,515) (506,859) (457,309) Add: Deferral of revenue in current period, excluding amounts recognized during the period 283,341 142,069 660,364 469,041 Deferred revenue, ending balance $ 1,194,751 $ 941,044 $ 1,194,751 $ 941,044 |
Schedule of Other Income (Expense), Net | Other income (expense), net consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest income $ 43,676 $ 6,929 $ 98,391 $ 13,783 Gain (loss) on strategic investments (473) 708 18,699 24,121 Other income (expense), net (1,388) (820) (6,790) (140) Total $ 41,815 $ 6,817 $ 110,300 $ 37,764 |
Acquisition, Goodwill and Acq_2
Acquisition, Goodwill and Acquisition-Related Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Finite-lived Intangible Assets | Acquisition-related intangible assets, excluding those that are fully amortized, 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 September 30, 2023 December 31, 2022 Amortization September 30, 2023 December 31, 2022 September 30, 2023 Developed technology $ 154,930 $ — $ 154,930 $ (79,036) $ (19,262) $ (98,298) $ 75,894 $ 56,632 4.2 Customer relationships 54,620 — 54,620 (14,097) (5,775) (19,872) 40,523 34,748 5.0 Trade name 12,390 — 12,390 (6,602) (1,710) (8,312) 5,788 4,078 1.8 Total $ 221,940 $ — $ 221,940 $ (99,735) $ (26,747) $ (126,482) $ 122,205 $ 95,458 4.4 |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | As of September 30, 2023, future estimated amortization expense related to the acquisition-related intangible assets is as follows (in thousands): Future Amortization Expense Remainder of 2023 $ 6,691 2024 26,759 2025 19,642 2026 17,260 2027 13,436 Thereafter 11,670 Total $ 95,458 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Shares Repurchased | A summary of the stock repurchase activity under the Repurchase Program for the nine months ended September 30, 2023 is as follows (in thousands, except per share amounts): Nine Months Ended September 30, 2023 Aggregate purchase price $ 112,279 Shares repurchased 954 Average price paid per share $ 117.70 |
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 (2,694) 9.00 Options canceled (2) 8.10 Balance—September 30, 2023 3,073 $ 18.56 1.8 $ 508,139 Vested and exercisable—September 30, 2023 2,799 $ 16.61 1.5 $ 468,286 |
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 2,575 156.34 RSUs vested (2,166) 78.49 RSUs forfeited/canceled (235) 98.72 Unvested balance—September 30, 2023 8,534 $ 109.13 1.9 $ 1,569,587 |
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 3,717 $ 2,992 $ 9,516 $ 6,613 Research and development 47,965 37,698 125,671 93,723 Sales and marketing 20,490 16,103 51,461 42,039 General and administrative 13,218 8,684 28,750 23,605 Total stock-based compensation $ 85,390 $ 65,477 $ 215,398 $ 165,980 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 545,327 $ 353,999 $ 1,473,685 $ 925,357 Denominator: Weighted-average shares used in computing net income per share, basic 310,185 304,931 308,602 306,576 Add weighted-average effect of dilutive securities: Employee equity awards 7,446 9,470 7,962 10,169 Weighted-average shares used in computing net income per share, diluted 317,631 314,401 316,564 316,745 Net income per share: Basic $ 1.76 $ 1.16 $ 4.78 $ 3.02 Diluted $ 1.72 $ 1.13 $ 4.66 $ 2.92 |
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options and RSUs 4 292 191 379 Employee stock purchase plan 25 295 150 104 Total 29 587 341 483 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Income before income taxes $ 644,510 $ 424,164 $ 1,727,635 $ 1,095,951 Provision for income taxes 99,183 70,165 $ 253,950 170,594 Effective tax rate 15.4 % 16.5 % 14.7 % 15.6 % |
Geographical Information (Table
Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Americas (1) $ 1,184,717 $ 977,674 $ 3,454,237 $ 2,487,106 Europe, Middle East and Africa 173,175 110,793 469,114 350,136 Asia-Pacific 151,564 88,334 396,380 268,516 Total revenue $ 1,509,456 $ 1,176,801 $ 4,319,731 $ 3,105,758 (1) Includes $1,150.5 million and $969.2 million revenue generated from the U.S. for the three months ended September 30, 2023 and September 30, 2022, respectively, and $3,366.8 million and $2,456.8 million for the nine months ended September 30, 2023 and September 30, 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): September 30, 2023 December 31, 2022 United States $ 80,449 $ 71,540 International 22,143 23,469 Total $ 102,592 $ 95,009 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets by Level (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | $ 709,525 | $ 709,525 | $ 397,261 |
Marketable Securities: | 2,699,785 | 2,699,785 | 2,322,469 |
Marketable Securities | 2,706,785 | 2,706,785 | 2,352,022 |
Total Financial Assets | 3,417,168 | 3,417,168 | 2,753,554 |
Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 27,764 | 27,764 | 0 |
Certificates of deposits | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 7,000 | 7,000 | 10,492 |
U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 901,551 | 901,551 | 993,955 |
Corporate bonds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 1,125,203 | 1,125,203 | 1,113,134 |
Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 645,267 | 645,267 | 215,380 |
Marketable equity securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable equity securities | 0 | 0 | 19,061 |
Proceeds from sale of marketable equity securities | 23,900 | ||
Realized loss on equity investment | 1,000 | ||
Unrealized gain on equity investment | 5,800 | ||
Initial cost for equity investment | 3,000 | 3,000 | |
Cumulative gain from initial purchase of equity investment | 20,900 | 20,900 | |
Money market funds - restricted | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market funds - restricted | 858 | 858 | 4,271 |
Money market funds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 709,525 | 709,525 | 322,294 |
Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 5,422 |
U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 51,986 |
Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 17,559 |
Level I | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 709,525 | 709,525 | 374,280 |
Marketable Securities | 901,551 | 901,551 | 1,013,016 |
Total Financial Assets | 1,611,934 | 1,611,934 | 1,391,567 |
Level I | Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level I | Certificates of deposits | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level I | U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 901,551 | 901,551 | 993,955 |
Level I | Corporate bonds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level I | Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level I | Marketable equity securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable equity securities | 0 | 0 | 19,061 |
Level I | Money market funds - restricted | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market funds - restricted | 858 | 858 | 4,271 |
Level I | Money market funds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 709,525 | 709,525 | 322,294 |
Level I | Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Level I | U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 51,986 |
Level I | Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Level II | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 22,981 |
Marketable Securities | 1,805,234 | 1,805,234 | 1,339,006 |
Total Financial Assets | 1,805,234 | 1,805,234 | 1,361,987 |
Level II | Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 27,764 | 27,764 | 0 |
Level II | Certificates of deposits | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 7,000 | 7,000 | 10,492 |
Level II | U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level II | Corporate bonds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 1,125,203 | 1,125,203 | 1,113,134 |
Level II | Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 645,267 | 645,267 | 215,380 |
Level II | Marketable equity securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable equity securities | 0 | 0 | 0 |
Level II | Money market funds - restricted | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market funds - restricted | 0 | 0 | 0 |
Level II | Money market funds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Level II | Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 5,422 |
Level II | U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Level II | Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 17,559 |
Level III | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Marketable Securities | 0 | 0 | 0 |
Total Financial Assets | 0 | 0 | 0 |
Level III | Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level III | Certificates of deposits | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level III | U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level III | Corporate bonds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level III | Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable Securities: | 0 | 0 | 0 |
Level III | Marketable equity securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Marketable equity securities | 0 | 0 | 0 |
Level III | Money market funds - restricted | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market funds - restricted | 0 | 0 | 0 |
Level III | Money market funds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Level III | Commercial paper | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Level III | U.S. government notes | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | 0 | 0 | 0 |
Level III | Agency securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Equivalents: | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Amort
Fair Value Measurements - Amortized Cost, Unrealized Gains and Losses, and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | $ 2,716,517 | $ 2,350,988 |
Unrealized Gains | 52 | 357 |
Unrealized Losses | (16,784) | (28,876) |
Fair Value | 2,699,785 | 2,322,469 |
Commercial paper | ||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 27,764 | 0 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 27,764 | 0 |
U.S. government notes | ||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 906,878 | 1,007,175 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (5,327) | (13,223) |
Fair Value | 901,551 | 993,955 |
Corporate bonds | ||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 1,132,878 | 1,125,920 |
Unrealized Gains | 42 | 271 |
Unrealized Losses | (7,717) | (13,057) |
Fair Value | 1,125,203 | 1,113,134 |
Agency securities | ||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 648,997 | 217,893 |
Unrealized Gains | 10 | 83 |
Unrealized Losses | (3,740) | (2,596) |
Fair Value | $ 645,267 | $ 215,380 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Invested marketable securities, maximum maturity period (in years) | 2 years | |||
Marketable securities, maximum maturity period (in months) | 24 months | 24 months | ||
Marketable securities, weighted average remaining duration (in years) | 10 months 24 days | |||
Non-marketable equity securities, realized gain | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Unrea
Fair Value Measurements - Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unrealized Losses within 12 months, Fair Value | $ 2,155,949 |
Unrealized Losses within 12 months, Unrealized Losses | (12,711) |
Unrealized Losses 12 months or greater, Fair Value | 407,787 |
Unrealized Losses 12 months or greater, Unrealized Losses | (4,073) |
Total, Fair Value | 2,563,736 |
Total, Unrealized Losses | (16,784) |
U.S. government notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unrealized Losses within 12 months, Fair Value | 688,395 |
Unrealized Losses within 12 months, Unrealized Losses | (3,625) |
Unrealized Losses 12 months or greater, Fair Value | 182,156 |
Unrealized Losses 12 months or greater, Unrealized Losses | (1,702) |
Total, Fair Value | 870,551 |
Total, Unrealized Losses | (5,327) |
Corporate bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unrealized Losses within 12 months, Fair Value | 925,541 |
Unrealized Losses within 12 months, Unrealized Losses | (5,928) |
Unrealized Losses 12 months or greater, Fair Value | 163,152 |
Unrealized Losses 12 months or greater, Unrealized Losses | (1,789) |
Total, Fair Value | 1,088,693 |
Total, Unrealized Losses | (7,717) |
Agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unrealized Losses within 12 months, Fair Value | 542,013 |
Unrealized Losses within 12 months, Unrealized Losses | (3,158) |
Unrealized Losses 12 months or greater, Fair Value | 62,479 |
Unrealized Losses 12 months or greater, Unrealized Losses | (582) |
Total, Fair Value | 604,492 |
Total, Unrealized Losses | $ (3,740) |
Fair Value Measurements - Inves
Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Due in 1 year or less | $ 1,517,054 | |
Due in 1 to 2 years | 1,182,731 | |
Total debt securities | $ 2,699,785 | $ 2,322,469 |
Fair Value Measurements - Gain
Fair Value Measurements - Gain For Non-marketable Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Unrealized gains on non-marketable equity securities | $ 500 | $ 1,681 | $ 13,901 | $ 16,681 |
Fair Value Measurements - Nonma
Fair Value Measurements - Nonmarketable Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost of investments | $ 31,656 | $ 23,625 |
Cumulative impairment and downward adjustment | 0 | (888) |
Cumulative upward adjustment | 30,632 | 16,731 |
Carrying amount of investments | 62,288 | $ 39,468 |
Convertible Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost of investments | 8,000 | |
Interest receivable | $ 600 |
Financial Statements Details -
Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Balance Sheet Components [Abstract] | ||||
Cash and cash equivalents | $ 1,748,818 | $ 671,707 | ||
Restricted cash included in other assets | 858 | 4,271 | ||
Total cash, cash equivalents and restricted cash | $ 1,749,676 | $ 675,978 | $ 720,513 | $ 625,050 |
Financial Statements Details _2
Financial Statements Details - Accounts Receivable, net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Components [Abstract] | ||
Accounts receivable | $ 846,577 | $ 928,490 |
Allowance for doubtful accounts | (2,485) | (19) |
Product sales rebate and returns reserve | (10,718) | (5,375) |
Accounts receivable, net | $ 833,374 | $ 923,096 |
Financial Statements Details _3
Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Components [Abstract] | ||
Raw materials | $ 944,329 | $ 759,519 |
Finished goods | 949,209 | 530,187 |
Total inventories | $ 1,893,538 | $ 1,289,706 |
Financial Statements Details _4
Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Components [Abstract] | ||
Inventory deposits | $ 198,369 | $ 162,047 |
Other current assets | 274,114 | 152,170 |
Total prepaid expenses and other current assets | $ 472,483 | $ 314,217 |
Financial Statements Details _5
Financial Statements Details - Property and Equipment, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 283,401 | $ 283,401 | $ 251,856 | ||
Less: accumulated depreciation | (180,809) | (180,809) | (156,847) | ||
Property and equipment, net | 102,592 | 102,592 | 95,009 | ||
Depreciation | 8,600 | $ 6,900 | 23,500 | $ 18,700 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 44,017 | 44,017 | 41,500 | ||
Equipment and machinery | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 142,205 | 142,205 | 122,407 | ||
Computer hardware and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 57,052 | 57,052 | 52,148 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 32,146 | 32,146 | 30,102 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 3,559 | 3,559 | 3,575 | ||
Construction-in-process | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 4,422 | $ 4,422 | $ 2,124 |
Financial Statements Details _6
Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Components [Abstract] | ||
Accrued compensation-related costs | $ 99,382 | $ 117,053 |
Accrued supplier liability | 183,148 | 71,481 |
Accrued manufacturing costs | 56,740 | 45,379 |
Accrued product development costs | 33,184 | 27,380 |
Other | 37,617 | 31,194 |
Total accrued liabilities | $ 410,071 | $ 292,487 |
Financial Statements Details _7
Financial Statements Details - Contract Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||||
Contract liabilities, beginning balance | $ 110,097 | $ 101,600 | $ 103,448 | $ 93,382 |
Less: Revenue recognized from beginning balance | (10,222) | (9,173) | (33,466) | (29,296) |
Less: Beginning balance reclassified to deferred revenue | (5,306) | (9,898) | (5,228) | (2,998) |
Add: Contract liabilities recognized | 25,712 | 18,247 | 55,527 | 39,688 |
Contract liabilities, ending balance | 120,281 | $ 100,776 | 120,281 | $ 100,776 |
Other Current Liabilities | ||||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Contract liabilities, beginning balance | 45,200 | |||
Contract liabilities, ending balance | $ 52,500 | $ 52,500 |
Financial Statements Details _8
Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||||
Deferred revenue, beginning balance | $ 1,084,904 | $ 1,033,490 | $ 1,041,246 | $ 929,312 |
Less: Revenue recognized from beginning balance | (173,494) | (234,515) | (506,859) | (457,309) |
Add: Deferral of revenue in current period, excluding amounts recognized during the period | 283,341 | 142,069 | 660,364 | 469,041 |
Deferred revenue, ending balance | $ 1,194,751 | $ 941,044 | $ 1,194,751 | $ 941,044 |
Financial Statements Details _9
Financial Statements Details - Other Performance Obligations (Details) $ in Millions | Sep. 30, 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 | $ 2,100 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,600 |
Revenue, performance obligation, period (in years) | 2 years |
Revenue, performance obligation (as a percent) | 76% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, performance obligation, period (in years) | 3 years |
Revenue, performance obligation (as a percent) | 24% |
Unbilled Revenues | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 313.2 |
Product | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 507.1 |
Product | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, performance obligation, period (in years) | 2 years |
Product | Unbilled Revenues | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 820.3 |
Financial Statements Details_10
Financial Statements Details - Other Income (Expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance Sheet Components [Abstract] | ||||
Interest income | $ 43,676 | $ 6,929 | $ 98,391 | $ 13,783 |
Gain (loss) on strategic investments | (473) | 708 | 18,699 | 24,121 |
Other income (expense), net | (1,388) | (820) | (6,790) | (140) |
Total | $ 41,815 | $ 6,817 | $ 110,300 | $ 37,764 |
Acquisition, Goodwill and Acq_3
Acquisition, Goodwill and Acquisition-Related Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) acquisition | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) acquisition | |
Business Acquisition [Line Items] | |||||
Number of completed acquisitions | acquisition | 0 | 2 | |||
Amortization of intangible assets | $ 8,100 | $ 9,300 | $ 26,747 | $ 24,300 | |
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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Gross Carrying Amount, beginning balance | $ 221,940 | ||||
Accumulated Amortization, beginning balance | (99,735) | ||||
Gross Carrying Amount, Additions | 0 | ||||
Accumulated Amortization, Amortization | $ (8,100) | $ (9,300) | (26,747) | $ (24,300) | |
Gross Carrying Amount, ending balance | 221,940 | 221,940 | |||
Accumulated Amortization, ending balance | (126,482) | (126,482) | |||
Net Carrying Amount | $ 95,458 | $ 95,458 | $ 122,205 | ||
Weighted Average Remaining Useful Life (in years) | 4 years 4 months 24 days | 4 years 4 months 24 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 | (19,262) | ||||
Gross Carrying Amount, ending balance | $ 154,930 | 154,930 | |||
Accumulated Amortization, ending balance | (98,298) | (98,298) | |||
Net Carrying Amount | $ 56,632 | $ 56,632 | 75,894 | ||
Weighted Average Remaining Useful Life (in years) | 4 years 2 months 12 days | 4 years 2 months 12 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 | (5,775) | ||||
Gross Carrying Amount, ending balance | $ 54,620 | 54,620 | |||
Accumulated Amortization, ending balance | (19,872) | (19,872) | |||
Net Carrying Amount | $ 34,748 | $ 34,748 | 40,523 | ||
Weighted Average Remaining Useful Life (in years) | 5 years | 5 years | |||
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 | (1,710) | ||||
Gross Carrying Amount, ending balance | $ 12,390 | 12,390 | |||
Accumulated Amortization, ending balance | (8,312) | (8,312) | |||
Net Carrying Amount | $ 4,078 | $ 4,078 | $ 5,788 | ||
Weighted Average Remaining Useful Life (in years) | 1 year 9 months 18 days | 1 year 9 months 18 days |
Acquisition, Goodwill and Acq_5
Acquisition, Goodwill and Acquisition-Related Intangible Assets - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Business Combination and Asset Acquisition [Abstract] | ||
Remainder of 2023 | $ 6,691 | |
2024 | 26,759 | |
2025 | 19,642 | |
2026 | 17,260 | |
2027 | 13,436 | |
Thereafter | 11,670 | |
Net Carrying Amount | $ 95,458 | $ 122,205 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 30, 2022 patent | Nov. 25, 2020 patent | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Long-term Purchase Commitment [Line Items] | ||||
Non-cancellable purchase commitments | $ 2,000 | |||
Non-cancellable purchase commitments, due in next twelve months | 1,700 | |||
Non-cancelable purchase commitments, due after next twelve months | 300 | |||
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 | $ 201.1 | $ 192.5 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock-Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 01, 2023 | Apr. 30, 2014 | Sep. 30, 2023 | Sep. 30, 2023 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized amount for stock repurchases | $ 1,000,000,000 | ||||
Remaining authorized repurchase amount | $ 144,500,000 | $ 144,500,000 | |||
Shares repurchased (in shares) | 0 | 954,000 | |||
Unamortized compensation costs | $ 804,300,000 | $ 804,300,000 | |||
Unamortized compensation costs weighted-average period (in years) | 3 years 7 months 6 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) | 96,500,000 | 96,500,000 | |||
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 (as a percent) | 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 | ||||
Stock Option | 2014 Equity Incentive 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 (as a percent) | 3% | ||||
Maximum increase of number of shares available for issuance (in shares) | 50,000,000 | ||||
Employee Stock | 2014 Employee Stock Purchase Plan | |||||
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) | 279,498 | ||||
Weighted-average purchase price (in dollars per share) | $ 105.69 | $ 105.69 | |||
Common stock reserved for issuance (in shares) | 23,400,000 | 23,400,000 |
Stockholders_ Equity and Stoc_4
Stockholders’ Equity and Stock-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Aggregate purchase price | $ 47,582 | $ 112,279 | $ 667,470 | |
Shares repurchased (in shares) | 0 | 954,000 | ||
Average price paid per share (in dollars per share) | $ 117.70 |
Stockholders_ Equity and Stoc_5
Stockholders’ Equity and Stock-Based Compensation - Stock Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 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) | (2,694) | |
Options canceled (in shares) | (2) | |
Outstanding, ending balance (in shares) | 3,073 | 5,769 |
Vested and exercisable (in shares) | 2,799 | |
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) | 9 | |
Options canceled (in dollars per share) | 8.10 | |
Outstanding, ending balance (in dollars per share) | 18.56 | $ 14.09 |
Vested and exercisable (in dollars per share) | $ 16.61 | |
Weighted- Average Remaining Contractual Term (in Years) and Aggregate Intrinsic Value | ||
Weighted-average remaining contractual term of stock options outstanding (in years) | 1 year 9 months 18 days | 2 years |
Weighted-average remaining contractual term of stock options vested and exercisable (in years) | 1 year 6 months | |
Aggregate intrinsic value of stock options outstanding | $ 508,139 | $ 618,774 |
Aggregate intrinsic value of stock options outstanding, vested and exercisable | $ 468,286 |
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Unvested beginning balance (in shares) | 8,360 | |
RSUs granted (in shares) | 2,575 | |
RSUs vested (in shares) | (2,166) | |
RSUs forfeited/canceled (in shares) | (235) | |
Unvested ending balance (in shares) | 8,534 | 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) | 156.34 | |
RSUs vested (in dollars per share) | 78.49 | |
RSUs forfeited/canceled (in dollars per share) | 98.72 | |
Unvested ending balance (in dollars per share) | $ 109.13 | $ 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 10 months 24 days | 1 year 8 months 12 days |
Unvested, aggregate intrinsic value | $ 1,569,587 | $ 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 85,390 | $ 65,477 | $ 215,398 | $ 165,980 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 3,717 | 2,992 | 9,516 | 6,613 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 47,965 | 37,698 | 125,671 | 93,723 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 20,490 | 16,103 | 51,461 | 42,039 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 13,218 | $ 8,684 | $ 28,750 | $ 23,605 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income | $ 545,327 | $ 353,999 | $ 1,473,685 | $ 925,357 |
Net income | $ 545,327 | $ 353,999 | $ 1,473,685 | $ 925,357 |
Denominator: | ||||
Weighted-average shares used in computing net income per share, basic (in shares) | 310,185 | 304,931 | 308,602 | 306,576 |
Add weighted-average effect of dilutive securities: | ||||
Employee equity awards (in shares) | 7,446 | 9,470 | 7,962 | 10,169 |
Weighted-average shares used in computing net income per share, diluted (in shares) | 317,631 | 314,401 | 316,564 | 316,745 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.76 | $ 1.16 | $ 4.78 | $ 3.02 |
Diluted (in dollars per share) | $ 1.72 | $ 1.13 | $ 4.66 | $ 2.92 |
Net Income Per Share - Antidilu
Net Income Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 29 | 587 | 341 | 483 |
Stock options and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 4 | 292 | 191 | 379 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 25 | 295 | 150 | 104 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 644,510 | $ 424,164 | $ 1,727,635 | $ 1,095,951 |
Provision for income taxes | $ 99,183 | $ 70,165 | $ 253,950 | $ 170,594 |
Effective tax rate | 15.40% | 16.50% | 14.70% | 15.60% |
Geographical Information (Detai
Geographical Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 1 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 1,509,456 | $ 1,176,801 | $ 4,319,731 | $ 3,105,758 | |
Long-lived assets | 102,592 | 102,592 | $ 95,009 | ||
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 1,184,717 | 977,674 | 3,454,237 | 2,487,106 | |
Europe, Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 173,175 | 110,793 | 469,114 | 350,136 | |
Asia-Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 151,564 | 88,334 | 396,380 | 268,516 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 1,150,500 | $ 969,200 | 3,366,800 | $ 2,456,800 | |
Long-lived assets | 80,449 | 80,449 | 71,540 | ||
International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 22,143 | $ 22,143 | $ 23,469 |