Arista Networks (ANET) 10-Q 30 Oct 23 2023 Q3 Quarterly report Financial data

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