Arista Networks Inc Q1 2023 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : If you don't mind, can we just dive -- dig a bit deeper into the inventory number, I think getting a few questions on that. Obviously, a material step up in the inventory in the quarter particularly, as you mentioned, lead times for your products are now 6 months, do we sort of conclude that your lead times will take a step function down, if you have this much inventory at this point? And if your visibility into demand is starting to come in a bit, why sort of maybe help me think about why the inventory continues to sort of move up higher from here rather than sort of start to come down in line with your visibility into demand. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2023 / 8:30PM, ANET.N - Q1 2023 Arista Networks Inc Earnings Call

Question: David Vogt - UBS Investment Bank, Research Division - Analyst : Great. I just want to follow up basically on the question on AI inventories and sort of revenue growth expectations for the second half. So if I'm hearing you correctly, it sounds like you think given tough comps and sort of spending patterns from the Titan Group is going to come down -- bring revenue growth down to about 15% in the second half on a year-over-year basis. And yet, as you just mentioned, inventory still need to come down. So how do we square that with sort of the optimism in the marketplace that looks like you took your TAM up from about $40 billion to about $50 billion for data center and campus in the deck. I'm just trying to square the deceleration that you're talking about versus sort of the expanded TAM that you're also kind of highlighting in the deck.