Arista Networks Inc Q3 2021 Earnings Call Transcript

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

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Congrats on the strong results, really impressive. So let me keep it broad-based, Jayshree. I think you mentioned strong demand that you're seeing, and I think you highlighted cloud customers in the press release. But just generally, if you can talk to how broad-based is the demand that you're seeing across cloud, and then what is the kind of magnitude of demand that you're seeing from enterprise customers? And how do you think about sustainability of that level of demand, which you're seeing this year? How do we think about sustainability of that into next year?

Question: David Vogt - UBS Investment Bank, Research Division - Analyst : Great. This is a question for both, I guess, Jayshree and Ita. I just want to follow up on the cloud titan CapEx and the hyperscaler CapEx and the visibility. I think it's fairly well documented that the balance of this year into 2022, There's going to be significant data center expansion and availability expansion by the hyperscalers so that's clearly reflected in your confidence. But you noted that you have a little bit more than a year visibility. I mean how should we think about 2023? I know we don't even have '22 guidance yet, but given the strength and the expansion and the availability and the data center trajectory, how do we think about that? And then just as a follow-up on pricing, when you think about the 10% price hike that you're going to implement in a couple of weeks, in your mind, is that sort of more than offsets the supply chain? Or is there a way to quantify how we're thinking about price versus the margin impact from the higher components? Does it reduce it by 50%? Is there some way to think about it that we can model out going forward?