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Stockholders’ Equity and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Shareholders' Equity and Share-based Payments 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 allows us to repurchase shares of our common stock and is 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 Securities Exchange Act of 1934, as amended (the "Exchange Act") or a combination of the foregoing. The Repurchase Program, which expires in April 2022, 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, 2021, the remaining authorized amount for stock repurchases under this program was approximately $237.3 million.
    A summary of the stock repurchase activity under the Repurchase Program is as follows (in thousands, except per share amounts):
Three Months Ended
March 31, 2021
Aggregate purchase price$101,355 
Shares repurchased367 
Average price paid per share$275.88 
    The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings and common stock in our condensed consolidated statements of stockholders' equity. All shares repurchased under the Repurchase Program have been retired.
Equity Award Plan Activities
2014 Equity Incentive Plan
    The 2014 Equity Incentive Plan (the “2014 plan”) provides for the granting 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 by the lesser of (i) 12,500,000 shares, (ii) 3% of the outstanding shares of our common stock on the last day of our immediately preceding fiscal year, or (iii) such other amount as determined by our board of
directors. Effective January 1, 2021, our board of directors authorized an increase of 2,285,228 shares to the shares available for issuance under the 2014 Plan. As of March 31, 2021, there remained approximately 23.4 million shares available for issuance under the 2014 Plan.
2014 Employee Stock Purchase Plan
    Effective January 1, 2021, our board of directors authorized an increase of 761,742 shares to the shares available for issuance under our 2014 Employee Stock Purchase Plan (the “ESPP”). Pursuant to the ESPP, the 2021 share increase was determined based on the lesser of 1% of the total shares of common stock outstanding on December 31, 2020, 2,500,000 shares, or such amount as determined by our board of directors. During the three months ended March 31, 2021, we issued 56,326 shares at a weighted-average purchase price of $182.76 per share under the ESPP. As of March 31, 2021, there remained 4.6 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):
Options Outstanding
Number of
Shares
Underlying
Outstanding Options		Weighted-
Average
Exercise
Price per Share 		Weighted-
Average
Remaining
Contractual
Term (Years) of
Stock Options 		Aggregate
Intrinsic
Value
of Stock
Options
Outstanding
Balance—December 31, 20203,430 $45.17 3.6$841,659 
Options granted — — 
Options exercised (263)29.57 
Options canceled(12)36.08 
Balance—March 31, 20213,155 $46.51 3.4$805,597 
Vested and exercisable—March 31, 20212,169 $34.55 3.0$579,805 
Restricted Stock Unit (RSU) Activities
    A summary of the RSU activity is presented below (in thousands, except years and per share amounts):
Number of
Shares		Weighted-
Average Grant
Date Fair Value Per Share		Weighted-Average
Remaining
Contractual Term (in years)		Aggregate Intrinsic Value
Unvested balance—December 31, 20201,816 $215.68 1.8$527,574 
       RSUs granted176 310.32 
       RSUs vested(139)199.41 
       RSUs forfeited/canceled(46)225.87 
Unvested balance—March 31, 20211,807 $225.88 1.7$545,194 
    In the quarter ended March 31, 2021, we granted 69,620 performance-based RSUs (“PRSUs”) to our CEO and other key employees that include both service and performance-based conditions.
    These PRSUs will vest over the next three to four years and the ultimate number of shares eligible to vest will vary between 0% and 200% of the amount granted based on the achievement of certain performance metrics over the vesting period and each holder’s continued employment with Arista.
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,
20212020
Cost of revenue $1,400 $1,327 
Research and development 21,982 15,928 
Sales and marketing
10,085 6,396 
General and administrative 4,086 3,905 
           Total stock-based compensation $37,553 $27,556 
    As of March 31, 2021, there were $414.5 million of unamortized compensation costs related to all unvested awards. The unamortized compensation costs are expected to be recognized over a weighted-average period of approximately 3.1 years.