Arista Networks (ANET) 10-Q2 May 222022 Q1 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2022	Apr. 27, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-36468
Entity Registrant Name	Arista Networks, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1751121
Entity Address, Address Line One	5453 Great America Parkway
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	(408)
Local Phone Number	547-5500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ANET
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		308,263,538
Entity Central Index Key	0001596532
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 635,025	$ 620,813
Marketable securities	2,788,889	2,787,502
Accounts receivable, net of rebates and allowances of $3,923 and $5,088, respectively	648,606	516,509
Inventories	694,217	650,117
Prepaid expenses and other current assets	338,437	237,735
Total current assets	5,105,174	4,812,676
Property and equipment, net	87,391	78,634
Acquisition-related intangible assets, net	105,244	93,555
Goodwill	216,915	188,397
Investments	38,625	20,247
Operating lease right-of-use assets	66,671	65,182
Deferred tax assets	446,347	442,295
Other assets	41,819	33,443
TOTAL ASSETS	6,108,186	5,734,429
CURRENT LIABILITIES:
Accounts payable	204,675	202,636
Accrued liabilities	197,063	226,643
Deferred revenue	778,436	593,578
Other current liabilities	188,831	86,972
Total current liabilities	1,369,005	1,109,829
Income taxes payable	74,497	69,916
Operating lease liabilities, non-current	57,474	56,527
Deferred revenue, non-current	345,310	335,734
Deferred tax liabilities, non-current	51,051	129,074
Other long-term liabilities	57,672	54,749
TOTAL LIABILITIES	1,955,009	1,755,829
Commitments and contingencies (Note 5)
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0001 par value—100,000 shares authorized and no shares issued and outstanding as of March 31, 2022 and December 31, 2021	0	0
Common stock, $0.0001 par value—1,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 308,165 and 307,681 shares issued and outstanding as of March 31, 2022 and December 31, 2021	31	31
Additional paid-in capital	1,590,793	1,530,046
Retained earnings	2,592,854	2,456,823
Accumulated other comprehensive income (loss)	(30,501)	(8,300)
TOTAL STOCKHOLDERS’ EQUITY	4,153,177	3,978,600
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 6,108,186	$ 5,734,429

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Rebates and allowances	$ 3,923	$ 5,088
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	308,165,000	307,681,000
Common stock, shares outstanding (in shares)	308,165,000	307,681,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2022USD ($)$ / sharesshares	Mar. 31, 2021USD ($)$ / sharesshares
Revenue:
Total revenue		$ 877,066	$ 667,562
Cost of revenue:
Total cost of revenue		323,221	242,290
Gross profit		553,845	425,272
Operating expenses:
Research and development		172,006	132,487
Sales and marketing		80,739	71,020
General and administrative		23,113	15,473
Total operating expenses		275,858	218,980
Income from operations		277,987	206,292
Other income, net		31,480	1,575
Income before income taxes		309,467	207,867
Provision for income taxes		37,208	27,501
Net income		$ 272,259	$ 180,366
Net income per share:
Basic (in dollars per share) \| $ / shares	[1]	$ 0.88	$ 0.59
Diluted (in dollars per share) \| $ / shares	[1]	$ 0.85	$ 0.57
Weighted-average shares used in computing net income per share:
Basic (in shares) \| shares	[1]	308,045	305,224
Diluted (in shares) \| shares	[1]	319,652	318,492
Product
Revenue:
Total revenue		$ 724,718	$ 539,145
Cost of revenue:
Total cost of revenue		293,809	218,433
Service
Revenue:
Total revenue		152,348	128,417
Cost of revenue:
Total cost of revenue		$ 29,412	$ 23,857

[1]	Prior period results have been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in November 2021.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 272,259	$ 180,366
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(373)	(541)
Net change in unrealized gains (losses) on available-for-sale securities	(21,828)	(561)
Other comprehensive income (loss)	(22,201)	(1,102)
Comprehensive income	$ 250,058	$ 179,264

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands		Total	Common Stock		Additional Paid-In Capital		Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2020	[1]		304,696
Beginning balance at Dec. 31, 2020		$ 3,320,291	$ 30	[1]	$ 1,292,409	[1]	$ 2,027,614	$ 238
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		180,366					180,366
Other comprehensive loss, net of tax		(1,102)						(1,102)
Stock-based compensation		37,553			37,553	[1]
Issuance of common stock in connection with employee equity incentive plans (in shares)	[1]		1,836
Issuance of common stock in connection with employee equity incentive plans		18,081			18,081	[1]
Tax withholding paid for net share settlement of equity awards (in shares)	[1]		(36)
Tax withholding paid for net share settlement of equity awards		(2,496)			(2,496)	[1]
Repurchase of common stock (in shares)	[1]		(1,468)
Repurchase of common stock		(101,355)					(101,355)
Ending balance (in shares) at Mar. 31, 2021	[1]		305,028
Ending balance at Mar. 31, 2021		3,451,338	$ 30	[1]	1,345,547	[1]	2,106,625	(864)
Beginning balance (in shares) at Dec. 31, 2021			307,681
Beginning balance at Dec. 31, 2021		3,978,600	$ 31		1,530,046		2,456,823	(8,300)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		272,259					272,259
Other comprehensive loss, net of tax		(22,201)						(22,201)
Stock-based compensation		50,279			50,279
Issuance of common stock in connection with employee equity incentive plans (in shares)			1,727
Issuance of common stock in connection with employee equity incentive plans		19,160			19,160
Tax withholding paid for net share settlement of equity awards (in shares)			(105)
Tax withholding paid for net share settlement of equity awards		$ (12,741)			(12,741)
Repurchase of common stock (in shares)		(1,171)	(1,171)
Repurchase of common stock		$ (136,228)					(136,228)
Common stock issued for business acquisition (in shares)			33
Common stock issued for business acquisition		4,049			4,049
Ending balance (in shares) at Mar. 31, 2022			308,165
Ending balance at Mar. 31, 2022		$ 4,153,177	$ 31		$ 1,590,793		$ 2,592,854	$ (30,501)

[1]	Prior period results have been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in November 2021.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 272,259	$ 180,366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other	13,091	12,658
Stock-based compensation	50,279	37,553
Noncash lease expense	4,532	4,243
Deferred income taxes	(81,822)	1,425
Unrealized gain on equity investments	(28,497)	0
Amortization of investment premiums	7,033	5,446
Changes in operating assets and liabilities:
Accounts receivable, net	(131,861)	9,074
Inventories	(43,531)	(3,500)
Prepaid expenses and other current assets	(107,999)	(15,272)
Other assets	(640)	(3,499)
Accounts payable	2,478	2,833
Accrued liabilities	(29,666)	(20,759)
Deferred revenue	187,194	69,204
Income taxes payable	106,992	(10,436)
Other liabilities	(2,704)	(14,661)
Net cash provided by operating activities	217,138	254,675
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities	404,176	379,605
Purchases of marketable securities	(412,614)	(590,476)
Business acquisitions, net of cash acquired	(37,610)	18
Purchases of property and equipment	(14,876)	(5,096)
Purchases of investments in privately-held companies	(11,691)	(2,000)
Net cash used in investing activities	(72,615)	(217,949)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity plans	19,160	18,081
Tax withholding paid on behalf of employees for net share settlement	(12,741)	(2,496)
Repurchase of common stock	(136,228)	(101,355)
Net cash used in financing activities	(129,809)	(85,770)
Effect of exchange rate changes	(481)	(838)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	14,233	(49,882)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period	625,050	897,454
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	639,283	847,572
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Right-of-use assets obtained in exchange for new operating lease liabilities	6,022	0
Property and equipment included in accounts payable and accrued liabilities	2,759	1,529
Stock Issued	$ 4,049	$ 0

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
Organization and Summary of Significant Accounting Policies	Mar. 31, 2022
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 large-scale internet companies, cloud service providers and next-generation enterprises. Our cloud networking solutions consist of our Extensible Operating System ("EOS"), a set of network applications and our Gigabit Ethernet switching and routing platforms. We are incorporated in the state of Delaware. Our corporate headquarters are located in Santa Clara, California, and we have wholly-owned subsidiaries throughout the world, including North America, Europe, Asia and Australia. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly owned subsidiaries and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments of a normal recurring nature necessary for the fair presentation of our financial information. The results for the three months ended March 31, 2022, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2021 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, 2021, filed with the SEC on February 15, 2022. 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 The global coronavirus ("COVID-19") pandemic as well as the Russian-Ukrainian conflict continue to evolve and have widespread and unpredictable impacts on the global economy and business activities. Our contract manufacturers and suppliers have experienced workforce disruptions, delays in component sourcing, production and export of their products as well as component shortages and increased component costs, which have disrupted our supply chain and has impacted and will likely continue to impact our ability to supply products to our customers on a timely basis. While we have experienced improvements in overall demand from customers in recent quarters, we believe ongoing supply disruptions combined with other supply chain related constraints, could impact our ability to fulfill this increased demand and as a result could negatively impact our business in future periods. In addition, inflation pressure in our supply chain and scarcity of some materials needed to build our products have increased our cost of revenue and may negatively impact our gross margin. Although the overall economy continues to recover, several issues including inflation risk, supply chain bottlenecks, and COVID-19 variants have and may continue to impact the pace of the recovery. The extent of the impact on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, and the impact of any initiatives and programs we may undertake to address financial and operational challenges, will depend on future developments, the impact to our customers, partners, employees, contract manufacturers and supply chain, as well as restrictions on travel and transport, all of which continue to evolve and are unpredictable. Management continues to actively monitor the impact of the pandemic on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires companies to recognize and measure contract assets and contract liabilities relating to contracts with customers that are acquired in a business combination in accordance with ASC 606. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 results in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this ASU as of January 1, 2022 on a prospective basis and the adoption impact was immaterial to the condensed consolidated financial statements. The standard will not impact acquired contract assets or liabilities from business combinations occurring prior to the adoption date.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2022
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): As of March 31, 2022 As of December 31, 2021 Level I Level II Level III Total Level I Level II Level III Total Financial Assets: Cash Equivalents: Money market funds $ 201,922 $ — $ — $ 201,922 $ 221,382 $ — $ — $ 221,382 Marketable Securities: Commercial paper — 95,239 — 95,239 — 141,274 — 141,274 Certificate of deposits (1) — 37,330 — 37,330 — 44,931 — 44,931 U.S. government notes 1,093,921 — — 1,093,921 1,057,810 — — 1,057,810 Corporate bonds — 1,265,406 — 1,265,406 — 1,252,226 — 1,252,226 Agency securities — 275,182 — 275,182 — 291,261 — 291,261 Marketable equity securities (2) 21,811 — — 21,811 — — — — 1,115,732 1,673,157 — 2,788,889 1,057,810 1,729,692 — 2,787,502 Other Assets: Money market funds - restricted 4,258 — — 4,258 4,237 — — 4,237 Total Financial Assets $ 1,321,912 $ 1,673,157 $ — $ 2,995,069 $ 1,283,429 $ 1,729,692 $ — $ 3,013,121 ______________________________________ (1) As of March 31, 2022 and December 31, 2021, all of our certificates of deposits were domestic deposits. (2) The $21.8 million represents the fair value of marketable equity securities as of March 31, 2022. This amount includes $8.3 million that was reclassified from Investments on our condensed consolidated balance sheet following the commencement of public market trading of the issuer in the current quarter, in addition to unrealized gains of $13.5 million recorded during the current quarter. The unrealized gains are included in Other income, net on the Condensed Consolidated Statements of Operations. Refer to Note 3. Financial Statement Details. During the three months ended on March 31, 2022, 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 at fair value on a recurring basis (in thousands): As of March 31, 2022 As of December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 95,239 $ — $ — $ 95,239 $ 141,274 $ — $ — $ 141,274 U.S. government notes 1,106,454 16 (12,549) 1,093,921 1,060,716 3 (2,909) 1,057,810 Corporate bonds 1,278,474 20 (13,088) 1,265,406 1,255,149 105 (3,028) 1,252,226 Agency securities 277,535 2 (2,355) 275,182 291,558 36 (333) 291,261 Total $ 2,757,702 $ 38 $ (27,992) $ 2,729,748 $ 2,748,697 $ 144 $ (6,270) $ 2,742,571 We invest in marketable 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. We expect to realize the full value of these investments upon maturity and do not expect to sell the debt securities prior to maturity; therefore, we do not consider any of our marketable securities to be impaired as of March 31, 2022. We did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable securities for the three months ended March 31, 2022. The following is an analysis of our marketable securities in unrealized loss positions for a period of less than twelve months. As of March 31, 2022, there are no unrealized loss positions with a duration equal to or greater than twelve months (in thousands): As of March 31, 2022 Unrealized Losses within 12 months Fair Value Unrealized Losses U.S. government notes $ 1,080,225 $ (12,549) Corporate bonds 1,223,546 (13,088) Agency securities 262,329 (2,355) Total $ 2,566,100 $ (27,992) As of March 31, 2022, 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): As of March 31, 2022 Fair Values Due in 1 year or less $ 1,765,710 Due in 1 year through 2 years 964,038 Total debt securities $ 2,729,748 The weighted-average remaining duration of our marketable debt securities is approximately 0.8 years as of March 31, 2022. As we view these marketable debt securities as available to support current operations, we classify marketable debt securities with maturities beyond 12 months as current assets under the caption "Marketable securities" on the condensed consolidated balance sheets. Assets measured at fair value on a non-recurring basis Non-Marketable Equity Securities We have non-marketable equity securities in privately-held companies that do not have readily determinable fair values. These equity securities are included in Investments on the condensed consolidated balance sheets. Their initial cost is adjusted to fair value on a non-recurring basis based on observable price changes from orderly transactions of identical or similar securities of the same issuer, or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to these securities. In addition, the valuation requires management judgment due to the absence of market price and lack of liquidity. We did not record any realized gains or losses for our non-marketable equity securities measured at fair value on a non-recurring basis during the three months ended March 31, 2022 and March 31, 2021. We recorded an unrealized gain of $15.0 million on non-marketable equity securities based on observable price changes from orderly transactions of identical or similar securities of the same issuer in the three months ended March 31, 2022, but did not record any unrealized losses or further unrealized gains in the three months ended March 31, 2022 and March 31, 2021. We evaluate our non-marketable equity securities for impairment at each reporting period via a qualitative assessment with various potential impairment indicators, including, but not limited to, an assessment of a significant adverse change in the economic environment, significant adverse changes in the general market condition of the geographies and industries in which our investees operate, and other publicly available information that affected the value of the its non-marketable equity securities. The following table summarizes the activity related to our non-marketable equity securities as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Cost of investments (1) $ 23,625 $ 14,933 Cumulative impairment — — Cumulative upward adjustment (1) 15,000 5,314 Carrying amount of investments $ 38,625 $ 20,247

Financial Statements Details

Financial Statements Details	3 Months Ended
Financial Statements Details	Mar. 31, 2022
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 in the accompanying unaudited condensed consolidated balance sheets to the total of the same such amounts in the accompanying unaudited condensed consolidated statements of cash flows is as follows (in thousands): March 31, 2022 December 31, 2021 Cash and cash equivalents $ 635,025 $ 620,813 Restricted cash included in other assets 4,258 4,237 Total cash, cash equivalents and restricted cash $ 639,283 $ 625,050 Accounts Receivable, net Accounts receivable, net consists of the following (in thousands): March 31, 2022 December 31, 2021 Accounts receivable $ 652,529 $ 521,597 Allowance for doubtful accounts (392) (132) Product sales rebate and returns reserve (3,531) (4,956) Accounts receivable, net $ 648,606 $ 516,509 Inventories Inventories consist of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 367,811 $ 316,737 Finished goods 326,406 333,380 Total inventories $ 694,217 $ 650,117 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2022 December 31, 2021 Inventory deposits $ 95,608 $ 46,311 Prepaid income taxes 692 8,977 Other current assets 217,363 163,916 Other prepaid expenses and deposits 24,774 18,531 Total prepaid expenses and other current assets $ 338,437 $ 237,735 Property and Equipment, net Property and equipment, net consists of the following (in thousands): March 31, 2022 December 31, 2021 Land $ 40,336 $ 40,145 Equipment and machinery 104,096 90,915 Computer hardware and software 44,792 44,083 Furniture and fixtures 3,638 3,634 Leasehold improvements 30,512 30,502 Construction-in-process 2,354 2,378 Property and equipment, gross 225,728 211,657 Less: accumulated depreciation (138,337) (133,023) Property and equipment, net $ 87,391 $ 78,634 Depreciation expense was $5.6 million and $4.9 million for the three months ended March 31, 2022 and 2021, respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, 2022 December 31, 2021 Accrued payroll-related costs $ 47,799 $ 99,571 Accrued manufacturing costs 92,197 80,213 Accrued product development costs 28,897 22,188 Accrued warranty costs 12,325 10,414 Other 15,845 14,257 Total accrued liabilities $ 197,063 $ 226,643 Warranty Accrual The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Three Months Ended March 31, 2022 2021 Warranty accrual, beginning of period $ 10,414 $ 9,314 Liabilities accrued for warranties issued during the period 4,392 3,456 Warranty costs incurred during the period (2,481) (2,727) Warranty accrual, end of period $ 12,325 $ 10,043 Contract Assets The following table summarizes the beginning and ending balances of our contract assets included in "Prepaid and other current assets" on the condensed consolidated balance sheets (in thousands): Three Months Ended March 31, 2022 2021 Contract assets, beginning balance $ 24,388 $ 16,380 Contract assets, ending balance 14,051 9,762 Contract Liabilities A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a cancellable contract. The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended March 31, 2022 2021 Contract liabilities, beginning balance $ 93,382 $ 85,957 Less: Revenue recognized from beginning balance (8,248) (7,913) Less: Beginning balance reclassified to deferred revenue (3,837) (12,492) Add: Contract liabilities recognized 17,125 14,913 Contract liabilities, ending balance $ 98,422 $ 80,465 As of March 31, 2022 and December 31, 2021, $40.8 million and $38.7 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances in "Other long-term liabilities" on the condensed consolidated balance sheets. Deferred Revenue Deferred revenue is comprised mainly of unearned revenue related to multi-year post-contract support ("PCS") contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended March 31, 2022 2021 Deferred revenue, beginning balance $ 929,312 $ 650,827 Less: Revenue recognized from beginning balance (128,136) (107,442) Add: Deferral of revenue in current period, excluding amounts recognized during the period 322,570 176,646 Deferred revenue, ending balance $ 1,123,746 $ 720,031 Other Performance Obligations Other performance obligations include unbilled contract revenue for services and product that will be recognized in future periods. As of March 31, 2022, other performance obligations of $180.0 million were comprised mainly of unbilled multi-year PCS contract amounts. Revenue from Total Remaining Performance Obligations Revenue from total remaining performance obligations represents contract liabilities, deferred revenue and other performance obligations. As of March 31, 2022, approximately $1,402.2 million of revenue is expected to be recognized from remaining performance obligations, of which approximately 83% is expected to be recognized over the next two years and approximately 17% is expected to be recognized during the third to the fifth year. Other Income, net Other income, net consists of the following (in thousands): Three Months Ended March 31, 2022 2021 Interest income $ 2,428 $ 2,045 Unrealized gain on equity investments 28,497 — Other income (expense), net 555 (470) Total $ 31,480 $ 1,575

Acquisition, Goodwill and Acqui

Acquisition, Goodwill and Acquisition-Related Intangible Assets	3 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisition, Goodwill and Acquisition-Related Intangible Assets	Acquisition, Goodwill and Acquisition-Related Intangible Assets Acquisition and Goodwill In January 2022, we completed an acquisition of a privately-held technology company in the United States for a total consideration of $47.0 million with both cash and common stock. The purchase price included $19.0 million of intangible assets, $28.5 million of goodwill and $0.5 million of net liabilities assumed. The changes in the carrying values of goodwill for the three months ended March 31, 2022 are as follows (in thousands): Amount Balance at December 31, 2021 $ 188,397 Additions related to one acquisition 28,518 Balance at March 31, 2022 $ 216,915 Acquisition-Related Intangible Assets The following table presents details of our acquisition-related intangible assets as of March 31, 2022 and December 31, 2021 (in thousands, except for years): March 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 135,530 $ (59,384) $ 76,146 4.7 Customer relationships 32,920 (8,966) 23,954 5.5 Trade name 10,190 (5,046) 5,144 3.4 Others 5,720 (5,720) — 0.0 Total $ 184,360 $ (79,116) $ 105,244 4.8 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 124,730 $ (53,663) $ 71,067 4.5 Customer relationships 25,920 (7,899) 18,021 5.2 Trade name 8,990 (4,693) 4,297 3.8 Others 5,720 (5,550) 170 0.1 Total $ 165,360 $ (71,805) $ 93,555 4.6 For intangible assets acquired and purchased during the three months ended March 31, 2022, developed technology has a weighted-average useful life of 7.0 years, customer relationships has a weighted-average useful life of 7.0 years, and trade name has a weighted-average useful life of 3.0 years. Amortization expense related to acquisition-related intangible assets was $7.3 million, and $7.4 million for the three months ended March 31, 2022, and 2021, respectively. As of March 31, 2022, future estimated amortization expense related to the acquired-related intangible assets is as follows (in thousands): Future Amortization Expense Remainder of 2022 $ 22,161 2023 25,724 2024 19,046 2025 12,326 2026 10,280 Thereafter 15,707 Total $ 105,244

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2022
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. In addition, we purchase strategic component inventory from certain suppliers under non-cancellable purchase commitments, including integrated circuits, which are consigned to our contract manufacturers. As of March 31, 2022, we had non-cancellable purchase commitments of $4,318.9 million, with $2,427.7 million with confirmed receipt dates within 12 months, $850.2 million with confirmed receipt dates greater than 12 months and the remaining $1,041 million with the receipt dates to be confirmed. 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 $98.4 million and $49.1 million as of March 31, 2022 and December 31, 2021, respectively, which were recorded within prepaid expenses and other current assets, as well as other assets in the accompanying 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; trial has been set for October 23, 2023. On March 30, 2022, WSOU dismissed one of the patents with prejudice, removing Arista wireless products from those accused of infringement. 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.

Stockholders_ Equity and Stock-

Stockholders’ Equity and Stock-Based Compensation	3 Months Ended
Stockholders’ Equity and Stock-Based Compensation	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Stockholders’ Equity and Stock-Based Compensation	Stockholders’ Equity and Stock-Based Compensation Stock Repurchase Program In April 2019, our board of directors authorized a $1.0 billion stock repurchase program (the "Repurchase Program"). This authorization allowed us to repurchase shares of our common stock over three years, and we completed our repurchases under the Repurchase Program during the fourth quarter of 2021. In the fourth quarter of 2021, our board of directors authorized an additional $1.0 billion stock repurchase program (the “New Repurchase Program”), which allows us to repurchase shares of our common stock to be funded from working capital. 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 Exchange Act, or a combination of the foregoing. The New Repurchase Program commenced in November 2021 and expires on the three year anniversary thereof. The New Repurchase Program does not obligate us to acquire any of our common stock, and may be suspended or discontinued by us at any time without prior notice. As of March 31, 2022, the remaining authorized amount for stock repurchases under this program was approximately $790.8 million. A summary of the stock repurchase activity under the New Repurchase Program is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2022 Aggregate purchase price $ 136,228 Shares repurchased 1,171 Average price paid per share $ 116.30 The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings. 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 exceed 50,000,000 shares (the “2014 Plan Evergreen Increase”), unless our board of directors, in its discretion, determines to make a smaller increase. Effective January 1, 2022, our board of directors authorized an increase of 9,230,434 shares to the shares available for issuance under the 2014 Plan. As of March 31, 2022, there remained approximately 95.7 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 immediately preceding December 31, but not to exceed 10,000,000 shares, unless our board of directors, in its discretion, determines to make a smaller increase. Effective January 1, 2022, our board of directors authorized an increase of 3,076,811 shares to the shares available for issuance under our 2014 Employee Stock Purchase Plan (the “ESPP”). During the three months ended March 31, 2022, we issued 240,394 shares at a weighted-average purchase price of $48.75 per share under the ESPP. As of March 31, 2022, there remained 20.8 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, 2021 8,685 $ 12.45 2.8 $ 1,140,369 Options granted — — Options exercised (737) 10.09 Options canceled (121) 18.11 Balance—March 31, 2022 7,827 $ 12.58 2.6 $ 989,294 Vested and exercisable—March 31, 2022 6,304 $ 10.07 2.2 $ 812,692 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, 2021 7,821 $ 70.98 1.7 $ 1,124,229 RSUs granted 758 107.79 RSUs vested (742) 64.21 RSUs forfeited/canceled (108) 70.81 Unvested balance—March 31, 2022 7,729 $ 75.24 1.6 $ 1,074,204 Stock-Based Compensation Expense The following table summarizes the stock-based compensation expense related to our equity awards (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 1,309 $ 1,400 Research and development 27,576 21,982 Sales and marketing 13,109 10,085 General and administrative 8,285 4,086 Total stock-based compensation $ 50,279 $ 37,553

Net Income Per Share

Net Income Per Share	3 Months Ended
Net Income Per Share	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The following table sets forth the computation of our basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended March 31, 2022 2021 (1) Numerator: Net income $ 272,259 $ 180,366 Denominator: Weighted-average shares used in computing net income per share, basic 308,045 305,224 Add weighted-average effect of dilutive securities: Stock options and RSUs 11,322 13,116 Employee stock purchase plan 285 152 Weighted-average shares used in computing net income per share, diluted 319,652 318,492 Net income per share: Basic $ 0.88 $ 0.59 Diluted $ 0.85 $ 0.57 (1) Prior periods have been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in November 2021. The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2022 2021 (1) Stock options and RSUs 64 520 Employee stock purchase plan 16 40 Total 80 560 (1) Prior periods have been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in November 2021.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Three Months Ended March 31, 2022 2021 (in thousands, except percentages) Income before income taxes $ 309,467 $ 207,867 Provision for income taxes 37,208 27,501 Effective tax rate 12.0 % 13.2 %

Geographical Information

Geographical Information	3 Months Ended
Geographical Information	Mar. 31, 2022
Segment Reporting [Abstract]
Geographical Information	Geographical Information We operate as one reportable segment. The following table represents revenue based on customers’ shipping addresses (in thousands): Three Months Ended March 31, 2022 2021 Americas $ 664,377 $ 501,872 Europe, Middle East and Africa 134,805 96,274 Asia-Pacific 77,884 69,416 Total revenue $ 877,066 $ 667,562 Long-lived assets, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, net by location are summarized as follows (in thousands): March 31, 2022 December 31, 2021 United States $ 68,252 $ 62,163 International 19,139 16,471 Total $ 87,391 $ 78,634

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
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 of a normal recurring nature necessary for the fair presentation of our financial information. The results for the three months ended March 31, 2022, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2021 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 The global coronavirus ("COVID-19") pandemic as well as the Russian-Ukrainian conflict continue to evolve and have widespread and unpredictable impacts on the global economy and business activities. Our contract manufacturers and suppliers have experienced workforce disruptions, delays in component sourcing, production and export of their products as well as component shortages and increased component costs, which have disrupted our supply chain and has impacted and will likely continue to impact our ability to supply products to our customers on a timely basis. While we have experienced improvements in overall demand from customers in recent quarters, we believe ongoing supply disruptions combined with other supply chain related constraints, could impact our ability to fulfill this increased demand and as a result could negatively impact our business in future periods. In addition, inflation pressure in our supply chain and scarcity of some materials needed to build our products have increased our cost of revenue and may negatively impact our gross margin. Although the overall economy continues to recover, several issues including inflation risk, supply chain bottlenecks, and COVID-19 variants have and may continue to impact the pace of the recovery. The extent of the impact on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, and the impact of any initiatives and programs we may undertake to address financial and operational challenges, will depend on future developments, the impact to our customers, partners, employees, contract manufacturers and supply chain, as well as restrictions on travel and transport, all of which continue to evolve and are unpredictable. Management
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires companies to recognize and measure contract assets and contract liabilities relating to contracts with customers that are acquired in a business combination in accordance with ASC 606. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 results in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this ASU as of January 1, 2022 on a prospective basis and the adoption impact was immaterial to the condensed consolidated financial statements. The standard will not impact acquired contract assets or liabilities from business combinations occurring prior to the adoption date.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets by Level	As of March 31, 2022 As of December 31, 2021 Level I Level II Level III Total Level I Level II Level III Total Financial Assets: Cash Equivalents: Money market funds $ 201,922 $ — $ — $ 201,922 $ 221,382 $ — $ — $ 221,382 Marketable Securities: Commercial paper — 95,239 — 95,239 — 141,274 — 141,274 Certificate of deposits (1) — 37,330 — 37,330 — 44,931 — 44,931 U.S. government notes 1,093,921 — — 1,093,921 1,057,810 — — 1,057,810 Corporate bonds — 1,265,406 — 1,265,406 — 1,252,226 — 1,252,226 Agency securities — 275,182 — 275,182 — 291,261 — 291,261 Marketable equity securities (2) 21,811 — — 21,811 — — — — 1,115,732 1,673,157 — 2,788,889 1,057,810 1,729,692 — 2,787,502 Other Assets: Money market funds - restricted 4,258 — — 4,258 4,237 — — 4,237 Total Financial Assets $ 1,321,912 $ 1,673,157 $ — $ 2,995,069 $ 1,283,429 $ 1,729,692 $ — $ 3,013,121 ______________________________________ (1) As of March 31, 2022 and December 31, 2021, all of our certificates of deposits were domestic deposits. (2) The $21.8 million represents the fair value of marketable equity securities as of March 31, 2022. This amount includes $8.3 million that was reclassified from Investments on our condensed consolidated balance sheet following the commencement of public market trading of the issuer in the current quarter, in addition to unrealized gains of $13.5 million recorded during the current quarter. The unrealized gains are included in Other income, net on the Condensed Consolidated Statements of Operations. Refer to Note 3. Financial Statement Details. During the three months ended on March 31, 2022, 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 at fair value on a recurring basis (in thousands): As of March 31, 2022 As of December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 95,239 $ — $ — $ 95,239 $ 141,274 $ — $ — $ 141,274 U.S. government notes 1,106,454 16 (12,549) 1,093,921 1,060,716 3 (2,909) 1,057,810 Corporate bonds 1,278,474 20 (13,088) 1,265,406 1,255,149 105 (3,028) 1,252,226 Agency securities 277,535 2 (2,355) 275,182 291,558 36 (333) 291,261 Total $ 2,757,702 $ 38 $ (27,992) $ 2,729,748 $ 2,748,697 $ 144 $ (6,270) $ 2,742,571
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value	The following is an analysis of our marketable securities in unrealized loss positions for a period of less than twelve months. As of March 31, 2022, there are no unrealized loss positions with a duration equal to or greater than twelve months (in thousands): As of March 31, 2022 Unrealized Losses within 12 months Fair Value Unrealized Losses U.S. government notes $ 1,080,225 $ (12,549) Corporate bonds 1,223,546 (13,088) Agency securities 262,329 (2,355) Total $ 2,566,100 $ (27,992)
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): As of March 31, 2022 Fair Values Due in 1 year or less $ 1,765,710 Due in 1 year through 2 years 964,038 Total debt securities $ 2,729,748
Equity Securities without Readily Determinable Fair Value	The following table summarizes the activity related to our non-marketable equity securities as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Cost of investments (1) $ 23,625 $ 14,933 Cumulative impairment — — Cumulative upward adjustment (1) 15,000 5,314 Carrying amount of investments $ 38,625 $ 20,247

Financial Statements Details (T

Financial Statements Details (Tables)	3 Months Ended
Financial Statements Details (Tables)	Mar. 31, 2022
Balance Sheet Components [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	The reconciliation of cash, cash equivalents and restricted cash reported in the accompanying unaudited condensed consolidated balance sheets to the total of the same such amounts in the accompanying unaudited condensed consolidated statements of cash flows is as follows (in thousands): March 31, 2022 December 31, 2021 Cash and cash equivalents $ 635,025 $ 620,813 Restricted cash included in other assets 4,258 4,237 Total cash, cash equivalents and restricted cash $ 639,283 $ 625,050
Schedule of Accounts Receivable, Net	Accounts receivable, net consists of the following (in thousands): March 31, 2022 December 31, 2021 Accounts receivable $ 652,529 $ 521,597 Allowance for doubtful accounts (392) (132) Product sales rebate and returns reserve (3,531) (4,956) Accounts receivable, net $ 648,606 $ 516,509
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 367,811 $ 316,737 Finished goods 326,406 333,380 Total inventories $ 694,217 $ 650,117
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2022 December 31, 2021 Inventory deposits $ 95,608 $ 46,311 Prepaid income taxes 692 8,977 Other current assets 217,363 163,916 Other prepaid expenses and deposits 24,774 18,531 Total prepaid expenses and other current assets $ 338,437 $ 237,735
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following (in thousands): March 31, 2022 December 31, 2021 Land $ 40,336 $ 40,145 Equipment and machinery 104,096 90,915 Computer hardware and software 44,792 44,083 Furniture and fixtures 3,638 3,634 Leasehold improvements 30,512 30,502 Construction-in-process 2,354 2,378 Property and equipment, gross 225,728 211,657 Less: accumulated depreciation (138,337) (133,023) Property and equipment, net $ 87,391 $ 78,634
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): March 31, 2022 December 31, 2021 Accrued payroll-related costs $ 47,799 $ 99,571 Accrued manufacturing costs 92,197 80,213 Accrued product development costs 28,897 22,188 Accrued warranty costs 12,325 10,414 Other 15,845 14,257 Total accrued liabilities $ 197,063 $ 226,643
Schedule of Warranty Accrual	The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Three Months Ended March 31, 2022 2021 Warranty accrual, beginning of period $ 10,414 $ 9,314 Liabilities accrued for warranties issued during the period 4,392 3,456 Warranty costs incurred during the period (2,481) (2,727) Warranty accrual, end of period $ 12,325 $ 10,043
Schedule of Contract Balances	The following table summarizes the beginning and ending balances of our contract assets included in "Prepaid and other current assets" on the condensed consolidated balance sheets (in thousands): Three Months Ended March 31, 2022 2021 Contract assets, beginning balance $ 24,388 $ 16,380 Contract assets, ending balance 14,051 9,762 Contract Liabilities A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a cancellable contract. The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended March 31, 2022 2021 Contract liabilities, beginning balance $ 93,382 $ 85,957 Less: Revenue recognized from beginning balance (8,248) (7,913) Less: Beginning balance reclassified to deferred revenue (3,837) (12,492) Add: Contract liabilities recognized 17,125 14,913 Contract liabilities, ending balance $ 98,422 $ 80,465
Schedule of Deferred Revenue	Deferred revenue is comprised mainly of unearned revenue related to multi-year post-contract support ("PCS") contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended March 31, 2022 2021 Deferred revenue, beginning balance $ 929,312 $ 650,827 Less: Revenue recognized from beginning balance (128,136) (107,442) Add: Deferral of revenue in current period, excluding amounts recognized during the period 322,570 176,646 Deferred revenue, ending balance $ 1,123,746 $ 720,031
Schedule of Other Income (Expense), Net	Other income, net consists of the following (in thousands): Three Months Ended March 31, 2022 2021 Interest income $ 2,428 $ 2,045 Unrealized gain on equity investments 28,497 — Other income (expense), net 555 (470) Total $ 31,480 $ 1,575

Acquisition, Goodwill and Acq_2

Acquisition, Goodwill and Acquisition-Related Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Goodwill	The changes in the carrying values of goodwill for the three months ended March 31, 2022 are as follows (in thousands): Amount Balance at December 31, 2021 $ 188,397 Additions related to one acquisition 28,518 Balance at March 31, 2022 $ 216,915
Schedule of Business Acquisitions, by Acquisition	The following table presents details of our acquisition-related intangible assets as of March 31, 2022 and December 31, 2021 (in thousands, except for years): March 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 135,530 $ (59,384) $ 76,146 4.7 Customer relationships 32,920 (8,966) 23,954 5.5 Trade name 10,190 (5,046) 5,144 3.4 Others 5,720 (5,720) — 0.0 Total $ 184,360 $ (79,116) $ 105,244 4.8 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 124,730 $ (53,663) $ 71,067 4.5 Customer relationships 25,920 (7,899) 18,021 5.2 Trade name 8,990 (4,693) 4,297 3.8 Others 5,720 (5,550) 170 0.1 Total $ 165,360 $ (71,805) $ 93,555 4.6
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of March 31, 2022, future estimated amortization expense related to the acquired-related intangible assets is as follows (in thousands): Future Amortization Expense Remainder of 2022 $ 22,161 2023 25,724 2024 19,046 2025 12,326 2026 10,280 Thereafter 15,707 Total $ 105,244

Stockholders_ Equity and Stoc_2

Stockholders’ Equity and Stock-Based Compensation (Tables)	3 Months Ended
Stockholders’ Equity and Stock-Based Compensation (Tables)	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of Shares Repurchased	A summary of the stock repurchase activity under the New Repurchase Program is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2022 Aggregate purchase price $ 136,228 Shares repurchased 1,171 Average price paid per share $ 116.30
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, 2021 8,685 $ 12.45 2.8 $ 1,140,369 Options granted — — Options exercised (737) 10.09 Options canceled (121) 18.11 Balance—March 31, 2022 7,827 $ 12.58 2.6 $ 989,294 Vested and exercisable—March 31, 2022 6,304 $ 10.07 2.2 $ 812,692
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, 2021 7,821 $ 70.98 1.7 $ 1,124,229 RSUs granted 758 107.79 RSUs vested (742) 64.21 RSUs forfeited/canceled (108) 70.81 Unvested balance—March 31, 2022 7,729 $ 75.24 1.6 $ 1,074,204
Schedule of Stock-Based Compensation Expense	The following table summarizes the stock-based compensation expense related to our equity awards (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 1,309 $ 1,400 Research and development 27,576 21,982 Sales and marketing 13,109 10,085 General and administrative 8,285 4,086 Total stock-based compensation $ 50,279 $ 37,553

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
Net Income Per Share (Tables)	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share Available to Common Stock	The following table sets forth the computation of our basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended March 31, 2022 2021 (1) Numerator: Net income $ 272,259 $ 180,366 Denominator: Weighted-average shares used in computing net income per share, basic 308,045 305,224 Add weighted-average effect of dilutive securities: Stock options and RSUs 11,322 13,116 Employee stock purchase plan 285 152 Weighted-average shares used in computing net income per share, diluted 319,652 318,492 Net income per share: Basic $ 0.88 $ 0.59 Diluted $ 0.85 $ 0.57
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2022 2021 (1) Stock options and RSUs 64 520 Employee stock purchase plan 16 40 Total 80 560 (1) Prior periods have been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in November 2021.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
Income Taxes (Tables)	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	Three Months Ended March 31, 2022 2021 (in thousands, except percentages) Income before income taxes $ 309,467 $ 207,867 Provision for income taxes 37,208 27,501 Effective tax rate 12.0 % 13.2 %

Geographical Information (Table

Geographical Information (Tables)	3 Months Ended
Geographical Information (Tables)	Mar. 31, 2022
Segment Reporting [Abstract]
Schedule of Revenue and Long Lived Assets, by Location	The following table represents revenue based on customers’ shipping addresses (in thousands): Three Months Ended March 31, 2022 2021 Americas $ 664,377 $ 501,872 Europe, Middle East and Africa 134,805 96,274 Asia-Pacific 77,884 69,416 Total revenue $ 877,066 $ 667,562 Long-lived assets, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, net by location are summarized as follows (in thousands): March 31, 2022 December 31, 2021 United States $ 68,252 $ 62,163 International 19,139 16,471 Total $ 87,391 $ 78,634

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Financial Assets:
Marketable Securities, Fair Value	$ 2,729,748	$ 2,742,571
Total Financial Assets, Fair Value	2,995,069	3,013,121
Fair Value to Amortized Cost
Amortized Cost	2,757,702	2,748,697
Unrealized Gains	38	144
Unrealized Losses	(27,992)	(6,270)
Fair Value	2,729,748	2,742,571
Commercial paper
Financial Assets:
Marketable Securities, Fair Value	95,239	141,274
Fair Value to Amortized Cost
Amortized Cost	95,239	141,274
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	95,239	141,274
Certificate of deposits
Financial Assets:
Marketable Securities, Fair Value	37,330	44,931
Fair Value to Amortized Cost
Fair Value	37,330	44,931
U.S. government notes
Financial Assets:
Marketable Securities, Fair Value	1,093,921	1,057,810
Fair Value to Amortized Cost
Amortized Cost	1,106,454	1,060,716
Unrealized Gains	16	3
Unrealized Losses	(12,549)	(2,909)
Fair Value	1,093,921	1,057,810
Corporate bonds
Financial Assets:
Marketable Securities, Fair Value	1,265,406	1,252,226
Fair Value to Amortized Cost
Amortized Cost	1,278,474	1,255,149
Unrealized Gains	20	105
Unrealized Losses	(13,088)	(3,028)
Fair Value	1,265,406	1,252,226
Agency securities
Financial Assets:
Marketable Securities, Fair Value	275,182	291,261
Fair Value to Amortized Cost
Amortized Cost	277,535	291,558
Unrealized Gains	2	36
Unrealized Losses	(2,355)	(333)
Fair Value	275,182	291,261
Marketable equity securities
Financial Assets:
Marketable Securities, Fair Value	21,811	0
Fair Value to Amortized Cost
Unrealized Gains	13,500
Fair Value	21,811	0
Fair value of securities reclassified	8,300
Marketable Securities
Financial Assets:
Marketable Securities, Fair Value	2,788,889	2,787,502
Fair Value to Amortized Cost
Fair Value	2,788,889	2,787,502
Money market funds - restricted
Financial Assets:
Other Assets, Fair Value	4,258	4,237
Level I
Financial Assets:
Total Financial Assets, Fair Value	1,321,912	1,283,429
Level I \| Commercial paper
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level I \| Certificate of deposits
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level I \| U.S. government notes
Financial Assets:
Marketable Securities, Fair Value	1,093,921	1,057,810
Fair Value to Amortized Cost
Fair Value	1,093,921	1,057,810
Level I \| Corporate bonds
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level I \| Agency securities
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level I \| Marketable equity securities
Financial Assets:
Marketable Securities, Fair Value	21,811	0
Fair Value to Amortized Cost
Fair Value	21,811	0
Level I \| Marketable Securities
Financial Assets:
Marketable Securities, Fair Value	1,115,732	1,057,810
Fair Value to Amortized Cost
Fair Value	1,115,732	1,057,810
Level I \| Money market funds - restricted
Financial Assets:
Other Assets, Fair Value	4,258	4,237
Level II
Financial Assets:
Total Financial Assets, Fair Value	1,673,157	1,729,692
Level II \| Commercial paper
Financial Assets:
Marketable Securities, Fair Value	95,239	141,274
Fair Value to Amortized Cost
Fair Value	95,239	141,274
Level II \| Certificate of deposits
Financial Assets:
Marketable Securities, Fair Value	37,330	44,931
Fair Value to Amortized Cost
Fair Value	37,330	44,931
Level II \| U.S. government notes
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level II \| Corporate bonds
Financial Assets:
Marketable Securities, Fair Value	1,265,406	1,252,226
Fair Value to Amortized Cost
Fair Value	1,265,406	1,252,226
Level II \| Agency securities
Financial Assets:
Marketable Securities, Fair Value	275,182	291,261
Fair Value to Amortized Cost
Fair Value	275,182	291,261
Level II \| Marketable equity securities
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level II \| Marketable Securities
Financial Assets:
Marketable Securities, Fair Value	1,673,157	1,729,692
Fair Value to Amortized Cost
Fair Value	1,673,157	1,729,692
Level II \| Money market funds - restricted
Financial Assets:
Other Assets, Fair Value	0	0
Level III
Financial Assets:
Total Financial Assets, Fair Value	0	0
Level III \| Commercial paper
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level III \| Certificate of deposits
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level III \| U.S. government notes
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level III \| Corporate bonds
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level III \| Agency securities
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level III \| Marketable equity securities
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level III \| Marketable Securities
Financial Assets:
Marketable Securities, Fair Value	0	0
Fair Value to Amortized Cost
Fair Value	0	0
Level III \| Money market funds - restricted
Financial Assets:
Other Assets, Fair Value	0	0
Money market funds
Financial Assets:
Cash Equivalents, Fair Value	201,922	221,382
Money market funds \| Level I
Financial Assets:
Cash Equivalents, Fair Value	201,922	221,382
Money market funds \| Level II
Financial Assets:
Cash Equivalents, Fair Value	0	0
Money market funds \| Level III
Financial Assets:
Cash Equivalents, Fair Value	$ 0	$ 0

Fair Value Measurements - Unrea

Fair Value Measurements - Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2022USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 2,566,100
Unrealized Losses	(27,992)
U.S. government notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	1,080,225
Unrealized Losses	(12,549)
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	1,223,546
Unrealized Losses	(13,088)
Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	262,329
Unrealized Losses	$ (2,355)

Fair Value Measurements - Narra

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

Fair Value Measurements - Inves

Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 1,765,710
Due in 1 year through 2 years	964,038
Total debt securities	$ 2,729,748	$ 2,742,571

Fair Value Measurements - Nonma

Fair Value Measurements - Nonmarketable Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Cost of investments	$ 23,625	$ 14,933
Cumulative impairment	0	0
Cumulative upward adjustment	15,000	5,314
Carrying amount of investments	38,625	$ 20,247
Cost of investments, reclassified	3,000
Cumulative upward adjustment, reclassified	5,300
Marketable equity securities
Fair Value Disclosures [Abstract]
Fair value of securities reclassified	8,300
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities reclassified	$ 8,300

Financial Statements Details -

Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Cash and cash equivalents	$ 635,025	$ 620,813
Restricted cash included in other assets	4,258	4,237
Total cash, cash equivalents and restricted cash	$ 639,283	$ 625,050	$ 847,572	$ 897,454

Financial Statements Details _2

Financial Statements Details - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Balance Sheet Components [Abstract]
Accounts receivable	$ 652,529	$ 521,597
Allowance for doubtful accounts	(392)	(132)
Product sales rebate and returns reserve	(3,531)	(4,956)
Accounts receivable, net	$ 648,606	$ 516,509

Financial Statements Details _3

Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Balance Sheet Components [Abstract]
Raw materials	$ 367,811	$ 316,737
Finished goods	326,406	333,380
Total inventories	$ 694,217	$ 650,117

Financial Statements Details _4

Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Balance Sheet Components [Abstract]
Inventory deposits	$ 95,608	$ 46,311
Prepaid income taxes	692	8,977
Other current assets	217,363	163,916
Other prepaid expenses and deposits	24,774	18,531
Total prepaid expenses and other current assets	$ 338,437	$ 237,735

Financial Statements Details _5

Financial Statements Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 225,728		$ 211,657
Less: accumulated depreciation	(138,337)		(133,023)
Property and equipment, net	87,391		78,634
Depreciation	5,600	$ 4,900
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	40,336		40,145
Equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	104,096		90,915
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	44,792		44,083
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,638		3,634
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	30,512		30,502
Construction-in-process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,354		$ 2,378

Financial Statements Details _6

Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Accrued payroll-related costs	$ 47,799	$ 99,571
Accrued manufacturing costs	92,197	80,213
Accrued product development costs	28,897	22,188
Accrued warranty costs	12,325	10,414	$ 10,043	$ 9,314
Other	15,845	14,257
Total accrued liabilities	$ 197,063	$ 226,643

Financial Statements Details _7

Financial Statements Details - Warranty Accrual (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Warranty [Roll Forward]
Warranty accrual, beginning of period	$ 10,414	$ 9,314
Liabilities accrued for warranties issued during the period	4,392	3,456
Warranty costs incurred during the period	(2,481)	(2,727)
Warranty accrual, end of period	$ 12,325	$ 10,043

Financial Statements Details _8

Financial Statements Details - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Change in Contract with Customer, Asset [Roll Forward]
Contract assets, beginning balance	$ 24,388	$ 16,380
Contract assets, ending balance	14,051	9,762
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	93,382	85,957
Less: Revenue recognized from beginning balance	(8,248)	(7,913)
Less: Beginning balance reclassified to deferred revenue	(3,837)	(12,492)
Add: Contract liabilities recognized	17,125	14,913
Contract liabilities, ending balance	98,422	$ 80,465
Other Current Liabilities
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	38,700
Contract liabilities, ending balance	$ 40,800

Financial Statements Details _9

Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 929,312	$ 650,827
Less: Revenue recognized from beginning balance	(128,136)	(107,442)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	322,570	176,646
Deferred revenue, ending balance	$ 1,123,746	$ 720,031

Financial Statements Details_10

Financial Statements Details - Performance Obligations (Details) $ in Millions	Mar. 31, 2022USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1,402.2
Unbilled Revenues
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 180
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	83.00%
Performance obligation, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	17.00%
Performance obligation, period	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	17.00%
Performance obligation, period	5 years

Financial Statements Details_11

Financial Statements Details - Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Balance Sheet Components [Abstract]
Interest income	$ 2,428	$ 2,045
Unrealized gain on equity investments	28,497	0
Other income (expense), net	555	(470)
Total other income (expense), net	$ 31,480	$ 1,575

Acquisition, Goodwill and Acq_3

Acquisition, Goodwill and Acquisition-Related Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill acquired		$ 28,518
Weighted Average Remaining Useful Life (In Years)		4 years 9 months 18 days		4 years 7 months 6 days
Developed technology
Business Acquisition [Line Items]
Weighted Average Remaining Useful Life (In Years)		4 years 8 months 12 days		4 years 6 months
Customer relationships
Business Acquisition [Line Items]
Weighted Average Remaining Useful Life (In Years)		5 years 6 months		5 years 2 months 12 days
Trade name
Business Acquisition [Line Items]
Weighted Average Remaining Useful Life (In Years)		3 years 4 months 24 days		3 years 9 months 18 days
Privately-held Technology Company
Business Acquisition [Line Items]
Total fair value of consideration transferred	$ 47,000
Intangible assets	19,000
Goodwill acquired	28,500
Net liabilities assumed	$ 500
Amortization of Intangible Assets		$ 7,300	$ 7,400
Privately-held Technology Company \| Developed technology
Business Acquisition [Line Items]
Weighted Average Remaining Useful Life (In Years)		7 years
Privately-held Technology Company \| Customer relationships
Business Acquisition [Line Items]
Weighted Average Remaining Useful Life (In Years)		7 years
Privately-held Technology Company \| Trade name
Business Acquisition [Line Items]
Weighted Average Remaining Useful Life (In Years)		3 years

Acquisition, Goodwill and Acq_4

Acquisition, Goodwill and Acquisition-Related Intangible Assets - Goodwill Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 188,397
Additions related to one acquisition	28,518
Goodwill, Ending Balance	$ 216,915

Acquisition, Goodwill and Acq_5

Acquisition, Goodwill and Acquisition-Related Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Gross Carrying Amount	$ 184,360	$ 165,360
Accumulated Amortization	(79,116)	(71,805)
Net Carrying Amount	$ 105,244	$ 93,555
Weighted Average Remaining Useful Life (In Years)	4 years 9 months 18 days	4 years 7 months 6 days
Developed technology
Business Acquisition [Line Items]
Gross Carrying Amount	$ 135,530	$ 124,730
Accumulated Amortization	(59,384)	(53,663)
Net Carrying Amount	$ 76,146	$ 71,067
Weighted Average Remaining Useful Life (In Years)	4 years 8 months 12 days	4 years 6 months
Customer relationships
Business Acquisition [Line Items]
Gross Carrying Amount	$ 32,920	$ 25,920
Accumulated Amortization	(8,966)	(7,899)
Net Carrying Amount	$ 23,954	$ 18,021
Weighted Average Remaining Useful Life (In Years)	5 years 6 months	5 years 2 months 12 days
Trade name
Business Acquisition [Line Items]
Gross Carrying Amount	$ 10,190	$ 8,990
Accumulated Amortization	(5,046)	(4,693)
Net Carrying Amount	$ 5,144	$ 4,297
Weighted Average Remaining Useful Life (In Years)	3 years 4 months 24 days	3 years 9 months 18 days
Others
Business Acquisition [Line Items]
Gross Carrying Amount	$ 5,720	$ 5,720
Accumulated Amortization	(5,720)	(5,550)
Net Carrying Amount	$ 0	$ 170
Weighted Average Remaining Useful Life (In Years)	0 years	1 month 6 days

Acquisition, Goodwill and Acq_6

Acquisition, Goodwill and Acquisition-Related Intangible Assets - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Remainder of 2022	$ 22,161
2023	25,724
2024	19,046
2025	12,326
2026	10,280
Thereafter	15,707
Net Carrying Amount	$ 105,244	$ 93,555

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 4,318.9
Non-cancellable purchase commitments, due in next twelve months	2,427.7
Non-cancelable purchase commitments, due after next twelve months	850.2
Non-cancelable purchase commitments, payment date not determined	1,041
Prepaid Expenses and Other Current Assets
Long-term Purchase Commitment [Line Items]
Deposits to purchase inventory	$ 98.4	$ 49.1

Stockholders_ Equity and Stoc_3

Stockholders’ Equity and Stock-Based Compensation - Narrative (Details) - USD ($)	Jan. 01, 2022	Apr. 30, 2019	Mar. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount for stock repurchases		$ 1,000,000,000		$ 1,000,000,000
Repurchase authorization period		3 years
Remaining authorized repurchase amount			$ 790,800,000
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized compensation costs			$ 501,400,000
Unamortized compensation costs, weighted-average period of recognition			3 years 2 months 12 days
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	9,230,434
Number of shares available for grant (in shares)			95,700,000
2014 Equity Incentive Plan \| Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares outstanding to increase number of shares available for grant and issuance	3.00%
Maximum increase of number of shares available for issuance (in shares)				50,000,000
2014 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares outstanding to increase number of shares available for grant and issuance				1.00%
2014 Employee Stock Purchase Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)				10,000,000
2014 Employee Stock Purchase Plan \| Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	3,076,811
Shares issued (in shares)			240,394
Weighted-average purchase price (in dollars per share)			$ 48.75
Common stock reserved for issuance (in shares)			20,800,000

Stockholders_ Equity and Stoc_4

Stockholders’ Equity and Stock-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Aggregate purchase price	$ 136,228	$ 101,355
Shares repurchased (in shares)	1,171
Average price paid per share (in dollars per share)	$ 116.30

Stockholders_ Equity and Stoc_5

Stockholders’ Equity and Stock-Based Compensation - Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Number of Shares Underlying Outstanding Options
Outstanding, beginning balance (in shares)	8,685
Options granted (in shares)	0
Options exercised (in shares)	(737)
Options canceled (in shares)	(121)
Outstanding, ending balance (in shares)	7,827	8,685
Vested and exercisable (in shares)	6,304
Weighted- Average Exercise Price per Share
Outstanding, beginning balance (in dollars per share)	$ 12.45
Options granted (in dollars per share)	0
Options exercised (in dollars per share)	10.09
Options canceled (in dollars per share)	18.11
Outstanding, ending balance (in dollars per share)	12.58	$ 12.45
Vested and exercisable (in dollars per share)	$ 10.07
Weighted- Average Remaining Contractual Term (Years) and Aggregate Intrinsic Value of Stock Options
Weighted-average remaining contractual term of stock options outstanding	2 years 7 months 6 days	2 years 9 months 18 days
Weighted-average remaining contractual term of stock options vested and exercisable	2 years 2 months 12 days
Aggregate intrinsic value of stock options outstanding	$ 989,294	$ 1,140,369
Aggregate intrinsic value of stock options outstanding, vested and exercisable	$ 812,692

Stockholders_ Equity and Stoc_6

Stockholders’ Equity and Stock-Based Compensation - RSU Activity (Details) - (RSUs) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Number of Shares
Unvested beginning balance (in shares)	7,821
Shares granted (in shares)	758
RSUs vested (in shares)	(742)
RSUs forfeited/canceled (in shares)	(108)
Unvested ending balance (in shares)	7,729	7,821
Weighted- Average Grant Date Fair Value Per Share
Unvested beginning balance (in dollars per share)	$ 70.98
RSUs granted (in dollars per share)	107.79
Vested (in dollars per share)	64.21
RSUs forfeited/canceled (in dollars per share)	70.81
Unvested ending balance (in dollars per share)	$ 75.24	$ 70.98
Unvested, weighted average remaining contractual term (in years)	1 year 7 months 6 days	1 year 8 months 12 days
Unvested, aggregate intrinsic value	$ 1,074,204	$ 1,124,229

Stockholders_ Equity and Stoc_7

Stockholders’ Equity and Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 50,279	$ 37,553
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,309	1,400
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	27,576	21,982
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	13,109	10,085
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 8,285	$ 4,086

Net Income Per Share - Basic an

Net Income Per Share - Basic and Diluted Net Income Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands		1 Months Ended	3 Months Ended
		Nov. 30, 2021	Mar. 31, 2022USD ($)$ / sharesshares	Mar. 31, 2021USD ($)$ / sharesshares
Numerator:
Net income \| $			$ 272,259	$ 180,366
Denominator:
Weighted-average shares used in computing net income per share, basic (in shares)	[1]		308,045	305,224
Add weighted-average effect of dilutive securities:
Stock options and RSUs (in shares)			11,322	13,116
Employee stock purchase plan (in shares)			285	152
Weighted-average shares used in computing net income per share, diluted (in shares)	[1]		319,652	318,492
Net income per share:
Basic (in dollars per share) \| $ / shares	[1]		$ 0.88	$ 0.59
Diluted (in dollars per share) \| $ / shares	[1]		$ 0.85	$ 0.57
Stock split		4

[1]	Prior period results have been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in November 2021.

Net Income Per Share - Antidilu

Net Income Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) shares in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2021	Mar. 31, 2022shares	Mar. 31, 2021shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)		80	560
Stock split	4
Stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)		64	520
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)		16	40

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income before income taxes	$ 309,467	$ 207,867
Provision for income taxes	$ 37,208	$ 27,501
Effective tax rate	12.00%	13.20%

Geographical Information (Detai

Geographical Information (Details) $ in Thousands	3 Months Ended
Geographical Information (Details) $ in Thousands	Mar. 31, 2022USD ($)segment	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment	1
Revenue	$ 877,066	$ 667,562
Long-lived assets	87,391		$ 78,634
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	664,377	501,872
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	134,805	96,274
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	77,884	$ 69,416
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	68,252		62,163
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 19,139		$ 16,471