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Stockholders’ Equity and Stock-Based Compensation
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders’ Equity and Stock-Based Compensation Stockholders’ Equity and Stock-Based Compensation
Stock Repurchase Program
    In April 2024, we completed repurchases under our previous $1.0 billion stock repurchase program (the “Prior Repurchase Program”). In May 2024, our board of directors authorized a new $1.2 billion stock repurchase program (the “New Repurchase Program” and together with the Prior Repurchase Program, the "Repurchase Programs"), which commenced in May 2024 and expires in May 2027. This authorization allows us to repurchase shares of our common stock that will 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 Securities Exchange Act of 1934, as amended (the "Exchange Act"), or a combination of the foregoing. The Repurchase Programs do not obligate us to acquire any of our common stock, and may be suspended or discontinued by the company at any time without prior notice. During the three months ended September 30, 2024, we repurchased a total of $65.2 million of our common stock under our New Repurchase Program. During the nine months ended September 30, 2024, we repurchased a total of $155.2 million of our common stock under our New Repurchase Program and $144.6 million of our common stock under our Prior Repurchase Program. As of September 30, 2024, the remaining authorized amount for stock repurchases under the New Repurchase Program was approximately $1.0 billion.
A summary of the stock repurchase activity for the three and nine months ended September 30, 2024 is as follows (in thousands, except per share amounts):
Three Months EndedNine Months Ended
September 30, 2024September 30, 2024
Aggregate purchase price$65,157 $299,823 
Shares repurchased205 1,047 
Average price paid per share$318.14 $286.47 
    The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings in our unaudited condensed consolidated statements of stockholders' equity. All shares repurchased have been retired.
Equity Award Plan Activities
2014 Equity Incentive Plan
     On April 16, 2024, our board of directors adopted an amended and restated Arista Networks, Inc. 2014 Equity Plan (the "Restated Plan"), effective April 17, 2024 (the "Effective Date") subject to the approval of our stockholders, which was approved at the 2024 Annual Meeting of Stockholders on June 7, 2024.
    The Restated Plan provides for the grant of equity-based awards, including stock options, restricted stock units, restricted stock, stock appreciation rights, and performance awards. The share pool available under the prior version of the Company's 2014 Equity Incentive Plan (the "Prior Plan") was extinguished, and the Restated Plan provides for a new share pool not to exceed (i) 13,200,000 shares of our Common Stock (“Shares”), plus (ii) any Shares subject to awards under the Prior Plan that, on or after the Effective Date, expired or otherwise terminated without having been exercised in full, or that were forfeited to or repurchased by us, including net settlement of Shares subject to restricted stock units, with the maximum number of Shares to be added to the Restated Plan as a result of clause (ii) equal to 10,039,657 Shares. The Restated Plan’s terms are substantially similar to the Prior Plan’s terms, including with respect to treatment of equity awards in the event of a “change in control” as defined under the Restated Plan, but with certain modifications, including the elimination of the automatic “evergreen” share reserve increase provided for under the Prior Plan. As of September 30, 2024, there remained approximately 13.1 million shares available for grant under the Restated Plan.
2014 Employee Stock Purchase Plan
    In April 2014, our board of directors and stockholders approved the 2014 Employee Stock Purchase Plan (the “ESPP”). The ESPP became effective on the first day that our common stock was publicly traded. The number of shares reserved for issuance under the ESPP increases automatically on January 1 of each year by the number of shares equal to 1% of
our shares outstanding on the immediately preceding December 31, but not to exceed 10 million shares, unless our board of directors, in its discretion, determines to make a smaller increase. Effective January 1, 2024, our board of directors authorized an increase of 3.1 million shares to the shares available for issuance under the ESPP. During the nine months ended September 30, 2024, we issued 280,843 shares at a weighted-average purchase price of $116.31 per share under the ESPP. As of September 30, 2024, there remained approximately 26.2 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 per share amounts):
Number of
Shares
Underlying
Outstanding Options		Weighted-
Average
Exercise
Price per Share 		Weighted-
Average
Remaining
Contractual
Term (in years) 		Aggregate
Intrinsic
Value
Balance—December 31, 20232,457 $19.83 1.7$529,931 
       Options granted — — 
       Options exercised (1,391)16.41 
       Options canceled(24)20.07 
Balance—September 30, 20241,042 $24.39 1.5$374,471 
Vested and exercisable—September 30, 2024997 $23.26 1.4$359,633 
Restricted Stock Unit (RSU) Activities
    A summary of the RSU activity is presented below (in thousands, except per share amounts):
Number of
Shares		Weighted-
Average Grant
Date Fair Value Per Share
Unvested balance—December 31, 20237,900 $112.76 
              RSUs and PRSUs granted2,307 277.30 
              RSUs and PRSUs vested(2,117)93.59 
              RSUs and PRSUs forfeited/canceled(412)134.80 
Unvested balance—September 30, 20247,678 $168.28 
Stock-Based Compensation Expense
    The following table summarizes the stock-based compensation expense related to our equity awards (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Cost of revenue $4,098 $3,717 $11,531 $9,516 
Research and development 58,340 47,965 152,897 125,671 
Sales and marketing
20,960 20,490 56,630 51,461 
General and administrative 14,725 13,218 33,572 28,750 
              Total stock-based compensation $98,123 $85,390 $254,630 $215,398 
    As of September 30, 2024, there were $1.1 billion 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 4.5 years.