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Arista Networks(ANET -2.85%)

Q2 2024 Earnings Call

Jul 30, 2024, 4:30 p.m. ET

Arista Networks(ANET -2.85%)

2024 年第二季度财报电话会议

2024年7月30日，美东时间下午 4:30

Prepared Remarks:

主要发言:

Operator

操作员

Welcome to the second quarter 2024 Arista Networks financial results earnings conference call. During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator instructions] As a reminder, this conference is being recorded and will be available for replay from the investor relations section at the Arista website following this call.

欢迎参加 2024 年第二季度 Arista Networks 财务业绩电话会议。在通话期间，所有与会者将处于听取模式。演示结束后，我们将进行问答环节。 [操作员指示] 请注意，本次电话会议正在录音，将在本次通话结束后通过 Arista 网站的投资者关系部门提供回放。

Ms. Liz Stine, Arista's director of investor relations, you may begin.

Arista 的投资者关系总监 Liz Stine，您可以开始了。

Liz Stine -- Director, Investor Relations

Liz Stine -- 投资者关系总监

Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me on today's call are Jayshree Ullal, Arista Networks chairperson and chief executive officer; and Chantelle Breithaupt, Arista's chief financial officer. This afternoon, Arista Networks issued a press release announcing the results for its fiscal second quarter ending June 30th, 2024.

谢谢，操作员。大家下午好，感谢大家的参与。今天与我一起参加通话的是 Arista Networks 主席兼首席执行官 Jayshree Ullal，以及 Arista 的首席财务官 Chantelle Breithaupt。今天下午，Arista Networks 发布了一份新闻稿，宣布截至2024年6月30日的财务第二季度结果。

If you would like a copy of this release, you can access it online at our website. During the course of this conference call, Arista Networks management will make forward-looking statements, including those relating to our financial outlook for the third quarter of the 2024 fiscal year, longer-term financial outlooks for 2024 and beyond, our total addressable market and strategy for addressing these market opportunities, including AI, customer demand trends, supply chain constraints, component costs, manufacturing output, inventory management, and inflationary pressures on our business, lead times, product innovation, working capital optimization, and the benefits of acquisitions, which are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically in our most recent Form 10-Q and Form 10-K and which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call.

如果您想获取这份新闻稿的副本，可以在我们的网站上在线获取。在本次电话会议过程中，Arista Networks 管理层将发表前瞻性声明，包括与 2024 财年第三季度财务展望、2024 年及以后的长期财务展望、我们的总地址市场以及应对这些市场机遇的战略，包括人工智能、客户需求趋势、供应链限制、零部件成本、制造产出、库存管理以及对我们业务的通货膨胀压力、交货时间、产品创新、营运资本优化以及收购的好处等。这些前瞻性声明受到我们在与 SEC 提交的文件中详细讨论的风险和不确定性的影响，具体在我们最近的 10-Q 表和 10-K 表中，这可能导致实际结果与这些声明所预期的有重大差异。这些前瞻性声明适用于今天，并且您不应依赖它们代表我们未来的观点。在本次通话结束后，我们将不再更新这些声明。

Also, please note that certain financial measures we use on the call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided reconciliations of these non-GAAP financial measures to GAAP financial measures in our earnings press release. With that, I will turn the call over to Jayshree.

另请注意，我们在通话中使用的某些财务指标是以非 GAAP 基础表达的，并已经进行了调整以排除某些费用。我们在财报新闻稿中提供了这些非 GAAP 财务指标与 GAAP 财务指标的调和。现在，我将把通话交给 Jayshree。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Thank you, Liz, and thank you, everyone, for joining us this afternoon for our second quarter 2024 earnings call. As a pure-play networking innovator with greater than $70 billion TAM ahead of us, we are pleased with our superior execution this quarter. We delivered revenues of $1.69 billion for the quarter, with a non-GAAP earnings per share of $2.10. Services and software support renewals contributed strongly at approximately 17.6% of revenue.

谢谢，Liz，也感谢大家于今天下午参加我们的 2024 年第二季度财报电话会议。作为一个专注于网络创新的公司，我们面临着超过 700 亿美元的市场机会，我们对本季度的出色执行感到满意。我们本季度的营收为 16.9 亿美元，非 GAAP 每股收益为 2.10 美元。服务和软件支持续约贡献了约 17.6% 的营收。

Our non-GAAP gross margin of 65.4% was influenced by outstanding manufacturing discipline realizing cost reductions. International contribution for the quarter registered at 19%, with the Americas strong at 81%. As we celebrated our 10th anniversary at the New York Stock Exchange with our near and dear investors and customers, we are now supporting over 10,000 customers with a cumulative of 100 million ports deployed worldwide. In June 2024, we launched Arista's Etherlink AI platforms that are ultra-Ethernet consortium compatible, validating the migration from InfiniBand to Ethernet.

我们的非 GAAP 毛利率为 65.4%，受到出色的制造纪律影响，实现了成本降低。本季度国际贡献占比为 19%，美洲市场占比为 81%。在纽约证券交易所庆祝我们的上市十周年之际，我们现在为超过 1 万家客户提供支持，全球部署端口累计达 1 亿个。2024 年 6 月，我们推出了 Arista 的 Etherlink 人工智能平台，与超以太网联盟兼容，验证了从 InfiniBand 到以太网的迁移。

This is a rich portfolio of 800-gig products, not just a point product, but in fact, a complete portfolio that is both NIC and GPU agnostic. The AI portfolio consists of the 7060X6 AI switch that supports 64 800-gig or 128 400-gig Ethernet ports with a capacity of 51 terabits per second. The 7800 R4-AI Spine is our fourth generation of Arista's flagship 7800, offering 100% nonblocking throughput with a proven virtual output queuing architecture. The 7800 R4 supports up to 460 terabits in a single chassis, corresponding to 576 800-gigabit Ethernet ports or 1,152 400-gigabit port density.

这是一个丰富的 800G 产品组合，不仅仅是一个单一产品，实际上是一个完整的组合，既支持网卡又支持 GPU。人工智能产品组合包括支持 64 个 800G 或 128 个 400G 以太网端口，容量达 51TB/s 的 7060X6 AI 交换机。7800 R4-AI Spine 是 Arista 旗舰 7800 的第四代产品，提供 100% 的非阻塞吞吐量，采用经过验证的虚拟输出排队架构。7800 R4 在单个机箱中支持高达 460TB，相当于 576 个 800G 以太网端口或 1152 个 400G 端口密度。

The 7700 R4-AI distributed Etherlink switch is a unique product offering with a massively parallel distributed scheduling and congestion-free traffic spraying fabric. The 7700 represents the first in a new series of ultra-scalable intelligent distributed systems that can deliver the highest consistent throughput for very large AI clusters. Let's just say once again, Arista is making Ethernet great. First, we began this journey with low latency in 2009 time frame.

7700 R4-AI 分布式 Etherlink 交换机是一款独特的产品，具有大规模并行分布式调度和无阻塞流量喷洒结构。7700 代表了一系列新型超可扩展智能分布式系统的第一款产品，可以为非常大的人工智能集群提供最高一致的吞吐量。可以说，Arista 再次让以太网变得伟大。首先，我们在 2009 年开始了低延迟之旅。

And then there was cloud and routing in the 2015 era, followed by WAN and Campus in the 2020 era, and now AI in our fifth generation in 2025 era. Our Etherlink portfolio is in the midst of trials and can support up to 100,000 XTUs in a two-tier design built on our proven and differentiated extensible OS. We are quite pleased with our progress across cloud, AI, campus, and enterprise customers. I would like to invite Ashwin Kohli, our newly appointed Chief Customer Officer, to describe our diverse set of customer wins in 2024.

然后是 2015 年云和路由，2020 年 WAN 和校园，现在是 2025 年的第五代人工智能。我们的 Etherlink 产品组合正在试用中，可以在基于我们成熟和独特的可扩展操作系统构建的两层设计中支持高达 10 万个 XTU。我们对在云端、人工智能、校园和企业客户方面的进展感到非常满意。我想邀请我们新任命的首席客户官 Ashwin Kohli，描述我们在 2024 年取得的多样化客户胜利。

Ashwin, over to you.

Ashwin，请您发言。

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Many thanks, Jayshree. Thank you for inviting me to my first earnings call. Let me walk everybody through the four global customer wins. The first example is an AI enterprise win with a large Tier 2 cloud provider, which has been heavily investing in GPUs to increase their revenue and penetrate new markets.

非常感谢，Jayshree。感谢您邀请我参加我的第一个财报电话会议。让我向大家介绍四个全球客户成功案例。第一个例子是与一家大型二线云服务提供商的人工智能企业合作，该企业一直在大力投资 GPU 以增加其收入并拓展新市场。

Their senior leadership wanted to be less reliant on traditional core services and work with Arista on new, reliable, and scalable Ethernet fabrics. Their environment consisted of new NVIDIA A100s. However, it was being connected to their legacy networking vendor, which resulted in them having significant performance and scale issues with their AI applications. The goal of our customer engagement was to refresh the front-end network to alleviate these issues.

他们的高级领导希望减少对传统核心服务的依赖，并与 Arista 合作开发新的、可靠且可扩展的以太网结构。他们的环境包括新的 NVIDIA A100。然而，它与他们传统的网络供应商连接，导致他们在 AI 应用中出现了显著的性能和规模问题。我们客户参与的目标是更新前端网络以缓解这些问题。

Our technical partnership resulted in deploying a two-step migration path to alleviate the current issues using 400-gig 7080s, eventually migrating them to an 800-gig AI Ethernet link in the future. The second next win highlights our adjacencies in both campus and routing. This customer is a large data center customer, which has deployed us for almost a decade. The team was able to leverage that success to help them demonstrate our value for their global campus network, which spans across hundreds and thousands of square feet globally.

我们的技术合作导致部署了一个两步迁移路径，使用 400G 的 7080，最终将它们迁移到未来的 800G AI 以太网链路。第二个胜利突显了我们在校园和路由方面的邻接性。这个客户是一个大型数据中心客户，已经使用我们近十年。团队能够利用这一成功帮助他们展示我们在全球校园网络中的价值，该网络横跨全球数百万平方英尺。

The customer had considerable dissatisfaction with their current vendor, which led them to a last-minute request to create a design for their new corporate headquarters. Given only three months' window, Arista leveraged the existing data center design and adapted this to the campus topology with a digital twin of the design in minimal time. CloudVision was used for visibility and life cycle management. The same customer once again was struggling with extreme complexity in their routing environment, as well with multiple parallel backbones and numerous technical complexities.

客户对当前供应商非常不满意，这促使他们在最后一刻请求为他们的新公司总部设计。在仅有三个月的时间内，Arista 利用现有的数据中心设计，并将其调整为校园拓扑结构，以最短的时间创建了设计的数字孪生。CloudVision 用于可见性和生命周期管理。同一客户再次在他们的路由环境中遇到极端复杂性问题，以及多个并行骨干和众多技术复杂性。

Arista simplified their routing network by removing legacy routers, increasing bandwidth and moving to a simple fixed form factor platform router. The core spine leverages the same U.S. software, streamlining their certification procedures and instilling confidence in the stability of the products. Once again, CloudVision came to the rescue.

Arista 简化了他们的路由网络，去除了传统路由器，增加了带宽，并转向了简单的固定形式因子平台路由器。核心骨干利用相同的 U.S.软件，简化了他们的认证程序，并增强了产品的稳定性。CloudVision 再次挺身而出。

The third example is the next win in the international arena of a large automotive manufacturer that due to its size and scale, previously had more than three different vendors in the data center, which created a very high level of complexity both from a technical and also from an operational perspective. The customer's key priority was to achieve a higher level of consistency across their infrastructure, which is now being delivered via a single EOS binary image and CloudVision solution from Arista. Their next top priority was to use automation, consistent end-to-end provisioning and visibility, which can be delivered by our CloudVision platform. This simplification has led the customer to adopt Arista beyond the data center and extend the Arista solution into the routing component of the infrastructure, which included our 7500 R3 spine platforms.

第三个例子是一个大型汽车制造商在国际舞台上的下一个胜利，由于其规模和规模，以前在数据中心中使用了三种不同的供应商，这在技术和运营角度都带来了非常高的复杂性。客户的主要优先事项是在基础设施各个方面实现更高水平的一致性，现在通过单一的 EOS 二进制镜像和 Arista 的 CloudVision 解决方案实现。他们的下一个最重要的优先事项是使用自动化、一致的端到端配置和可见性，这可以通过我们的 CloudVision 平台实现。这种简化导致客户将 Arista 应用于数据中心之外，并将 Arista 解决方案扩展到基础设施的路由组件，其中包括我们的 7500 R3 骨干平台。

This once again shows a very clear example of the same Arista One EOS and One CloudVision solution delivering multiple use cases. And Jayshree, this last win demonstrates our strength in service provider routing space. We have been at the forefront of providing innovative solutions for service provider customers for many years. As we all know, we are in the midst of an optical and packet integration.

这再次清楚地展示了相同的 Arista One EOS 和 One CloudVision 解决方案提供多个用例。而这最后的胜利展示了我们在服务提供商路由领域的实力。多年来，我们一直致力于为服务提供商客户提供创新解决方案。众所周知，我们正处于光学和数据包集成的最前沿。

As a result, our routers support industry-leading dense 400-gig ZR Plus coherent pluggable optics. In this service provider customer example, we provided a full turnkey solution, including our popular 7280 R3 routers and our newly announced AWE 7250 WAN router as a BGP route reflector along with CloudVision and professional services. We showcased our strength in supporting a wide variety of these pluggable coherent optics, along with our SRX and EVPN solutions, which allowed this middle mine service provider customer to build out a 400-gig statewide backbone at cloud-scale economics. Thanks, Jayshree, and back over to you.

因此，我们的路由器支持业界领先的密集 400G ZR Plus 相干插入光学器件。在这个服务提供商客户的例子中，我们提供了一个全面的一揽子解决方案，包括我们广受欢迎的 7280 R3 路由器和我们新宣布的 AWE 7250 广域网路由器作为 BGP 路由反射器，以及 CloudVision 和专业服务。我们展示了我们在支持各种这些可插拔相干光学器件方面的实力，以及我们的 SRX 和 EVPN 解决方案，这使得这家中型服务提供商客户能够以云规模经济建立 400G 州级骨干网。谢谢，Jayshree，现在回到你。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Well, thank you, Ashwin, and congratulations. Hot off the press is our new and highest Net Promoter Score of 87, which translates to 95%. Hats off to your team for achieving that. It's so exciting to see the momentum of our enterprise sector.

谢谢你，Ashwin，恭喜。我们刚刚获得了 87 分的最高净推荐分，相当于 95%。向你的团队致敬，为实现这一目标而努力。看到我们企业部门的势头如此强劲，真是令人兴奋。

As a matter of fact, as we speak, we are powering the broadcasters of the Olympics, symbolic of our commitment to the media and entertainment vertical. And so, it's fair to say that so far in 2024, it's proving to be better than we expected because of our position in the marketplace and because of our best-of-breed platform for mission-critical networking. I am reminded of the 1980s when San was famous for declaring the network is the computer. Well, 40 years later, we're seeing the same cycle come true again with the collective nature of AI training models mandating a lossless highly available network to seamlessly connect every AI accelerator in the cluster to one another for peak job completion times.

事实上，就在我们说话的时候，我们正在为奥运会的广播公司提供支持，这象征着我们对媒体和娱乐行业的承诺。因此，可以说，到目前为止，在 2024 年，由于我们在市场上的地位以及我们为关键任务网络提供的最佳平台，情况正在好于我们的预期。我想起了上世纪 80 年代，当时 San 因宣称网络即计算机而闻名。40 年后，我们看到同样的循环再次成真，AI 训练模型的集体性质要求一个无损高可用网络，以将集群中的每个 AI 加速器无缝连接到彼此，以实现最佳作业完成时间。

Our AI networks also connect trained models to end users and other multi-tenant systems in the front-end data center, such as storage, enabling the AI system to become more than the sum of its parts. We believe data centers are evolving to holistic AI centers, where the network is the epicenter of AI management for acceleration of applications, compute, storage, and the wide area network. AI centers need a foundational data architecture to deal with the multimodal AI datasets that run on our differentiated EOS network data link systems. Arista showcased a technology demonstration of our EOS-based AI agent that can be on the NIC itself or alternatively, inside the host.

我们的 AI 网络还将训练模型连接到最终用户和前端数据中心中的其他多租户系统，如存储，使 AI 系统成为超越其各部分之和的整体。我们相信数据中心正在演变为整体 AI 中心，其中网络是加速应用程序、计算、存储和广域网的 AI 管理的中心。AI 中心需要一个基础数据架构来处理在我们区别化的 EOS 网络数据链系统上运行的多模 AI 数据集。Arista 展示了基于我们的 EOS 的 AI 代理的技术演示，它可以在 NIC 本身上，或者在主机内部。

By connecting to adjacent Arista switches to continuously keep up with the current state, send telemetry or receive configuration updates, we have demonstrated the network working holistically with network interface cards such as NVIDIA BlueField, and we expect to add more NICs in the future. Well, I think the Arista purpose and vision is clearly driving our customer traction. Our networking platforms are becoming the epicenter of all digital transactions, be they campus center, data center, WAN centers, or AI centers. And with that, I'd like to turn it over to Chantelle, our chief financial officer, to review the financial specifics and tell us more.

通过与相邻的 Arista 交换机连接，持续跟踪当前状态，发送遥测或接收配置更新，我们已经展示了网络与诸如 NVIDIA BlueField 等网络接口卡完整地运作，我们预计未来将增加更多网卡。我认为 Arista 的目标和愿景明显推动了我们的客户吸引力。我们的网络平台正在成为所有数字交易的中心，无论是校园中心、数据中心、WAN 中心还是 AI 中心。现在，我想把话题转给我们的首席财务官 Chantelle，让她审查财务细节并告诉我们更多。

Over to you, Chantelle.

Chantelle，请您发言。

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Thanks, Jayshree. It really was great to see everyone at the New York Stock Exchange IPO celebration event. Now turning to the numbers. This analysis of our Q2 results and our guidance for Q3 is based on non-GAAP and excludes all noncash stock-based compensation impacts, certain acquisition-related charges, and other nonrecurring items.

谢谢，Jayshree。在纽约证券交易所 IPO 庆祝活动上见到大家真是太棒了。现在转向数字。我们对 Q2 业绩的分析以及对 Q3 的指导是基于非 GAAP，排除所有非现金股权激励影响、某些与收购相关的费用以及其他非经常性项目。

A full reconciliation of our selected GAAP to non-GAAP results is provided in our earnings release. Total revenues in Q2 were $1.69 billion, up 15.9% year over year, significantly above the upper end of our guidance of $1.62 billion to $1.65 billion. Growth was delivered across all three sectors of cloud, enterprise, and provider. Services and subscription software contributed approximately 17.6% of revenue in the quarter, up from 16.9% in Q1.

我们的财报中提供了我们选择的 GAAP 与非 GAAP 结果的完整调解。Q2 总收入为 16.9 亿美元，同比增长 15.9%，远超我们的 16.2 亿美元至 16.5 亿美元的指导范围的上限。增长主要来自云端、企业和服务提供商三个领域。服务和订阅软件在本季度贡献了约 17.6% 的收入，较 Q1 的 16.9% 有所增加。

International revenues for the quarter came in at $316 million or 18.7% of total revenue, down from 20.1% in the prior quarter. This quarter-over-quarter decrease was driven by a relatively weaker performance in our APJ region. The overall gross margin in Q2 was 65.4%, above our guidance of 64%, up from 64.2% last quarter and up from 61.3% in the prior-year quarter. The year-over-year gross margin improvement was primarily driven by a reduction in inventory-related reserves.

本季度国际收入为 3.16 亿美元，占总收入的 18.7%，低于上一季度的 20.1%。这种季度对季度的下降主要是由于我们亚太地区表现相对较弱所致。Q2 整体毛利率为 65.4%，高于我们的 64% 指导，较上季度的 64.2% 和去年同期的 61.3% 有所提高。毛利率的年度增长主要是由于库存相关减值的减少。

Operating expenses for the quarter were $319.8 million or 18.9% of revenue, up from last quarter at $265 million. R&D spending came in at $216.7 million or 12.8% of revenue, up from $164.6 million in the last quarter. This primarily reflected increased headcount and higher new product introduction costs in the period. Sales and marketing expense was $85.1 million or 5% of revenue compared to $83.7 million last quarter, with a double-digit percentage increase of headcount in the quarter versus the prior year.

本季度运营费用为 3.198 亿美元，占收入的 18.9%，高于上季度的 2.65 亿美元。研发支出为 2.167 亿美元，占收入的 12.8%，高于上季度的 1.646 亿美元。这主要反映了期间内人员增加和新产品推出成本的增加。销售和营销费用为 0.851 亿美元，占收入的 5%，而上季度为 0.837 亿美元，本季度与去年同期相比，人员增加了两位数百分比。

Our G&A costs came in at $18 million or 1.1% of revenue, up from last quarter at $16.7 million. Our operating income for the quarter was $785.6 million or 46.5% of revenue. Other income and expense for the quarter was a favorable $70.9 million, and our effective tax rate was 21.5%. This resulted in net income for the quarter of $672.6 million or 39.8% of revenue.

我们的管理费用为 1,800 万美元，占收入的 1.1%，高于上季度的 1,670 万美元。本季度我们的营业收入为 7.856 亿美元，占收入的 46.5%。本季度的其他收入和支出为有利的 7090 万美元，我们的有效税率为 21.5%。这导致本季度净收入为 6.726 亿美元，占收入的 39.8%。

Our diluted share number was 319.9 million shares, resulting in a diluted earnings per share number for the quarter of $2.10, up 32.9% from the prior year. Turning to the balance sheet. Cash, cash equivalents, and investments ended the quarter at $6.3 billion. In the quarter, we repurchased $172 million of our common stock at an average price of $282.20 per share.

我们的摊薄股份数为 3.199 亿股，导致本季度每股摊薄收益为 2.10 美元，比去年同期增长 32.9%。转向资产负债表。现金、现金等价物和投资在本季度结束时为 63 亿美元。在本季度，我们以每股 282.20 美元的平均价格回购了 1.72 亿美元的普通股。

Of the $172 million, $82 million was repurchased under our prior $1 billion authorization, which is now complete, and the remaining $90 million was purchased under the new program of $1.2 billion approved in May 2024. The actual timing and amount of future repurchases will depend upon market and business conditions, stock price, and other factors. Now turning to operating cash performance for the second quarter. We generated $989 million of cash from operations in the period, reflecting strong earnings performance with a favorable contribution from working capital.

其中 1.72 亿美元中，有 8200 万美元是在我们之前的 10 亿美元授权下回购的，该授权现已完成，剩下的 9000 万美元是在 2024 年 5 月批准的 12 亿美元新计划下购买的。未来回购的实际时间和金额将取决于市场和业务状况、股价和其他因素。现在转向第二季度的经营现金表现。我们在本期从运营中获得了 9.89 亿美元的现金，反映了强劲的盈利表现，以及来自营运资本的有利贡献。

DSOs came in at 66 days, up from 62 days in Q1, impacted by large service renewals at the end of the quarter. Inventory turns were 1.1x, up from one turn last quarter. Inventory decreased to $1.9 billion in the quarter, down from $2 billion in second half prior period, reflecting a reduction in our raw materials inventory. Our purchase commitments and inventory at the end of the quarter totaled $4 billion, up from $3.5 billion at the end of Q1.

DSO 为 66 天，高于 Q1 的 62 天，受季末大型服务续约的影响。存货周转率为 1.1 倍，高于上季度的 1 倍。本季度存货减少至 19 亿美元，低于上一期的 20 亿美元，反映了我们原材料库存的减少。本季末的采购承诺和存货总额为 40 亿美元，高于 Q1 末的 35 亿美元。

We expect this number to stabilize as supplier lead times improve, but we'll continue to have some variability in future quarters as a reflection of demand for our new product introductions. Our total deferred revenue balance was $2.1 billion, up from $1.7 billion in Q1. The majority of the deferred revenue balance is services-related and directly linked to the timing and term of service contracts, which can vary on a quarter-by-quarter basis. Our product deferred revenue increased approximately $253 million versus last quarter.

我们预计随着供应商交货时间的改善，这一数字将稳定，但我们将继续在未来季度保持一定的变动，以反映对我们新产品推出的需求。我们的总递延收入余额为 21 亿美元，高于 Q1 的 17 亿美元。递延收入余额的大部分与服务相关，直接与服务合同的时间和期限相关，这可能会在季度之间变化。我们的产品递延收入与上一季度相比增加了约 2.53 亿美元。

As a reminder, we expect 2024 to be a year of new product introductions, new customers, and expanded use cases. These trends may result in increased customer trials and contracts with customer-specific acceptance clauses and increase the variability and magnitude of our product deferred revenue balances. Accounts payable days was 46 days, up from 36 days in Q1, reflecting the timing of inventory receipts and payments. Capital expenditures for the quarter were $3.2 million.

作为提醒，我们预计 2024 年将是新产品推出、新客户和扩大使用案例的一年。这些趋势可能导致客户试用增加，以及带有特定客户验收条款的合同增加，从而增加我们产品递延收入余额的变动和幅度。应付账款天数为 46 天，高于 Q1 的 36 天，反映了库存收款和付款的时间。本季度的资本支出为 320 万美元。

As we enter the second half of fiscal year 2024, we are encouraged by the momentum that we see in the market. Our existing innovative product portfolio, along with our new product introductions, are well suited for our cloud, AI enterprise, and providers customers. We will continue to invest in our R&D and go-to-market through both people and processes. With all of this as a backdrop for fiscal year '24, our revenue growth guidance is now at least 14%.

随着我们进入 2024 财年下半年，我们对市场上看到的势头感到鼓舞。我们现有的创新产品组合，以及我们的新产品推出，非常适合我们的云端、人工智能企业和服务提供商客户。我们将继续通过人员和流程投资于我们的研发和市场推广。在 2024 财年的背景下，我们的收入增长指导现在至少为 14%。

Gross margin outlook remains at 62% to 64%, and operating margin is now raised to approximately 44%. Our guidance for the third quarter based on non-GAAP results and excluding any noncash stock-based compensation impacts and other nonrecurring items is as follows: revenues of approximately $1.72 billion to $1.75 billion, gross margin of approximately 63% to 64%, and operating margin at approximately 44%. Our effective tax rate is expected to be approximately 21.5%, with diluted shares of approximately 321 million shares. With that, I now turn the call back to Liz.

毛利率预期仍维持在 62% 至 64%，而营运利润率现在提高至约 44%。我们基于非通用会计准则结果，排除任何非现金股权激励影响和其他非经常性项目，对第三季度的指导如下：预计营收约为 17.2 亿至 17.5 亿美元，毛利率约为 63% 至 64%，营运利润率约为 44%。我们预计有效税率约为 21.5%，稀释后股数约为 3.21 亿股。现在我将电话交回给莉兹。

Liz?

莉兹？

Liz Stine -- Director, Investor Relations

莉兹·斯坦 -- 投资者关系总监

Thank you, Chantelle. We will now move to the Q&A portion of the Arista earnings call. To allow for greater participation, I'd like to request that everyone please limit themselves to a single question. Thank you for your understanding.

谢谢，尚泰尔。我们现在将进入 Arista 收益电话会议的问答环节。为了更多人参与，请大家限制提问次数。感谢您的理解。

Operator, take it away.

接下来请操作员发言。

Questions & Answers:

问题与回答：

Operator

操作员

We will now begin the Q&A portion of the Arista earnings call. [Operator instructions] Our first question comes from the line of Michael Ng with Goldman Sachs. Please go ahead.

我们现在开始 Arista 收益电话会议的问答环节。[操作员指示] 我们首位提问者是高盛的迈克尔·吴先生。请发言。

Michael Ng -- Goldman Sachs -- Analyst

迈克尔·吴 -- 高盛分析师

Hi, good afternoon. Thank you for the question. As we head into next-generation GPUs with Blackwell and the NVL72, there's been some discussion about whether these systems may be less modular in some of its components, particularly for back-end networking. I was just wondering if you could share your views and provide some clarity on the vendor modularity of Blackwell, particularly as it relates to networking.

嗨，下午好。感谢提问。随着 Blackwell 和 NVL72 等下一代 GPU 的推出，关于这些系统在某些组件上可能不那么模块化的讨论，特别是后端网络。我想知道您对 Blackwell 供应商模块化的看法，并提供一些关于网络的清晰度，特别是与 Arista 未来几年的定位有关的部分。

And how that might affect Arista's positioning over the next couple of years, if at all? Thank you very much.

这是否会在未来几年影响 Arista 的定位？非常感谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

杰伊希瑞·乌拉尔 -- 首席执行官兼主席

Sure. Michael, I think as the GPUs get faster and faster, obviously, the dependency on the network for higher throughput is clearly related. And therefore, our timely introduction of these 800-gig products will be required, especially more for Blackwell. In terms of its connection and modularity with NVLink and 72 port, there's always been a market for what I call scale up, where you're connecting the GPUs internally in a server and the density of those GPUs connecting in the past has been more PCIe and XL and now NVLink, and there's a new consortium now for called UAL that's going to specify that, I believe, eventually, by the way, even there, Ethernet will win.

当然。迈克尔，我认为随着 GPU 速度越来越快，显然，对于更高吞吐量的网络依赖性是明显相关的。因此，我们及时推出这些 800G 产品将是必要的，尤其是对于 Blackwell。就其与 NVLInk 和 72 端口的连接和模块化而言，过去一直存在着我所说的扩展市场，您在服务器内部连接 GPU，过去连接这些 GPU 的密度更多地是 PCIe 和 XL，现在是 NVLink，现在有一个新的联盟称为 UAL，将规定这一点，我相信，最终，即使在那里，以太网也会获胜。

And so, that density depends more on the AI accelerator and how they choose to connect. As I've often said, it's more a bus technology. So eventually, where Arista plays strongly both on the front end and back end is on the scale out, not on the scale up. So, independent of the modularity, whether it's a wrap-based design, a chassis, or multiple RU, the ports have to come out Ethernet and those Ethernet ports will connect into scale-out switches from Arista.

因此，该密度更多取决于 AI 加速器以及他们选择如何连接。正如我经常说的，这更多是一种总线技术。因此，无论模块化是基于封装设计、机箱还是多个 RU，端口都必须是以太网端口，这些以太网端口将连接到 Arista 的扩展交换机上。

Michael Ng -- Goldman Sachs -- Analyst

迈克尔·吴 -- 高盛分析师

Great. Thank you, Jayshree.

好的。谢谢，杰伊希瑞。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

杰伊希瑞·乌拉尔 -- 首席执行官兼主席

Thank you, Michael.

谢谢，迈克尔。

Operator

操作员

Our next question comes from the line of Aaron Rakers with Wells Fargo. Please go ahead.

我们的下一个问题来自富国银行的艾伦·雷克斯先生。请发言。

Aaron Rakers -- Analyst

艾伦·雷克斯 -- 分析师

Yeah, thank you for taking the question. The metric that stands out to me the most is the deferred revenue balance up. Looks like 95% in total year on year. Based on what you disclosed, it looks like you're now at about $520 million of product deferred.

是的，感谢您回答问题。对我来说最引人注目的指标是递延收入余额的增加。看起来总体年度增长了 95%。根据您披露的信息，您现在的产品递延约为 5.2 亿美元。

On the product deferred line, can you help us appreciate --how do we think about that number? Is that related to these AI opportunities? Just the cadence of how we should expect the revenue recognition from that again being -- it looks like almost 60% above what was previously the peak level of product deferred.

关于产品递延项，您能帮助我们理解吗？这个数字与这些 AI 机会有关吗？我们应该如何预期从中获得的收入确认的节奏？看起来几乎比先前的产品递延峰值水平高出 60%。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

杰伊希瑞·乌拉尔 -- 首席执行官兼主席

Yes. No, good question, Aaron. Let me start generically and of course, I'll hand it to my CFO, Chantelle, here. Product deferred sort of ebbs and flows.

是的。不错的问题，艾伦。让我从一般方面开始，当然，我会把话题交给我的首席财务官尚泰尔。产品递延有起有落。

It goes in, it comes out. And it's particularly high when we have a lot of new product and new use cases. But it's not extraordinary to see us running a higher product deferred in one quarter or in one year and then dipping down. So, the long term is consistent, the short term can ebb and flow.

它进来了，又出去了。特别是当我们有很多新产品和新用例时，它会很高。但在一个季度或一年内看到我们运行更高的产品递延并不是特别罕见，然后下降。

Do you want to say a few words on that?

你想对此说几句吗？

Chantelle Breithaupt -- Chief Financial Officer

尚泰尔·布赖特豪普特 -- 首席财务官

Yes, thank you, Jayshree. The only thing I would add to that is that the deferred balance is always a mix of customers and use cases. So, I wouldn't rotate on any one particular intersection of those. It really is a mix of those combined.

是的，谢谢，杰伊希瑞。我要补充的是，递延余额始终是客户和用例的混合。因此，我不会围绕这些中的任何一个特定交集旋转。它确实是这些的综合。

Aaron Rakers -- Analyst

艾伦·雷克斯 -- 分析师

OK, thank you.

好的，谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

杰伊希瑞·乌拉尔 -- 首席执行官兼主席

Thanks, Aaron.

谢谢，艾伦。

Operator

操作员

Our next question comes from the line of Meta Marshall with Morgan Stanley. Please go ahead.

我们的下一个问题来自摩根士丹利的梅塔·马歇尔女士。请发言。

Meta Marshall -- Analyst

梅塔·马歇尔 -- 分析师

Great, thanks. Jayshree, last quarter, you had mentioned kind of four major AI trials that you guys were a part of. Obviously, you guys -- or Ashwin listed off the list of kind of the four wins that you had during the quarter. Just trying to get a sense of maybe if that Tier 2 win was a part of those AI trials.

好的，谢谢。杰伊希瑞，上一季度，您提到了四个主要的 AI 试验，您们参与了其中。显然，您们或者阿什温列出了您在季度内取得的四个胜利清单。只是想了解一下，那个第二梯队的胜利是否是这些 AI 试验的一部分。

Or just any update on where those four AI trials stand or what the current count of AI trials is currently? Thank you.

或者对这四个 AI 试验的进展有任何更新，或者当前 AI 试验的数量是多少？谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

杰伊希瑞·乌拉尔 -- 首席执行官兼主席

Yeah. No, I'm going to speak to it, and I want to turn it over to Ashwin since he's here with us. First of all, all four trials are largely in what I call cloud and AI titans. A couple of them could be classified as specialty providers as well, depending on how they end up.

是的。不，我会谈一下，并且我想把话题交给与我们在一起的阿什温。首先，所有四个试验主要是在我所说的云和 AI 巨头中进行的。其中一些可能也可以归类为专业提供商，具体取决于最终如何发展。

But those four are going very well. They started out as large trials. They're now moving into pilots this year, most of them. And with any luck next year, maybe we won't be seeing four to five, and we could say five out of five.

但这四个试验进展顺利。它们最初是大型试验，现在大多数正在今年转入试点阶段。希望明年，也许我们不会看到四到五个，而是可以说五个中的五个。

That's my hope, anyway. But in addition to that, we have tens of smaller customers who are starting to do AI pilots. And Ashwin, you've been smack in the middle of a lot of those, maybe you want to speak to that a little bit?

这是我的希望，不过除此之外，我们还有数十家开始进行人工智能试点项目的较小客户。Ashwin，你参与了很多这样的项目，也许你想稍微谈谈？

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Yeah. Absolutely, Jayshree. Meta, so I just wanted to clarify the example that I shared with you was more around a Tier 2 cloud provider. And if I take a step back, the types of conversations my team is having with customers is either around general-purpose enterprise customers or it's around Tier 2 cloud providers, right, which are different to the ones Jayshree's referring to.

是的。绝对，Jayshree。Meta，我只是想澄清一下我与你分享的例子更多地围绕着一个二线云服务提供商。如果我退一步，我的团队与客户进行的对话类型要么是关于通用企业客户，要么是关于二线云服务提供商，这与 Jayshree 所指的不同。

Yeah, I hope that clarifies --

是的，希望这样澄清了一些--

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

And they tend to be early adopters.

他们往往是早期采用者。

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Yeah, absolutely.

是的，绝对。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

They're about to build an AI cluster. It's a reasonably small size, not classified in thousands or 10,000, but you've got to start somewhere. So, they started about a few hundred GPUs, would you say?

他们即将建立一个人工智能集群。规模相当小，不是以千计或万计来分类，但你得从某个地方开始。所以，他们开始了大约几百个 GPU，你会这么说吗？

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Absolutely, yes.

绝对是的。

Meta Marshall -- Analyst

Meta Marshall -- 分析师

Great. Thank you.

好的。谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Thank you, Meta.

谢谢你，Meta。

Operator

运营人员

Our next question comes from the line of Atif Malik with Citi. Please go ahead.

我们下一个问题来自花旗的 Atif Malik。请发言。

Atif Malik -- Citi -- Analyst

Atif Malik -- 花旗 -- 分析师

Hi, thank you for taking my question. Jayshree, you mentioned a $70 billion TAM number in your prepared remarks. Can you help us understand what is in that TAM? And how does that relate to the $750 million AI networking revenue number you have provided for next year?

嗨，谢谢您回答我的问题。Jayshree，您在报告中提到了 700 亿美元的总地址 able 市场（TAM）数字。您能帮助我们理解这个 TAM 中包含了什么吗？这与您提供的明年 7.5 亿美元的人工智能网络收入数字有何关联？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Yes, I get asked that question a lot. First of all, the TAM is far greater than the $750 million we've signed up for. And remember, that's early years. But TAM consists of our data center TAM.

是的，我经常被问到这个问题。首先，TAM 远远大于我们签约的 7.5 亿美元。请记住，这还只是初期。但 TAM 包括我们的数据中心 TAM。

Our AI TAM, which we count in a more narrow fashion as how much of InfiniBand will move to Ethernet on the back end. We don't count the AI TAM that's already in the front end, which is part and parcel of our data center. And then obviously, there's a campus TAM, which is very, very big. It's north of $10 billion.

我们的人工智能 TAM，我们更狭义地计算为 InfiniBand 有多少会转移到以太网在后端。我们不计算已经在前端的人工智能 TAM，这是我们数据中心的一部分。然后显然还有校园 TAM，非常非常大。它超过 100 亿美元。

And then there's the wide area in routing. So, these four are the building blocks that I call the campus center, data center, AI center, and WAN center. And then laid upon that is some very nice software. If you saw, we had a nice bump in software and service renewals this quarter, which would be largely centered around CloudVision observability and security.

然后还有广域路由。所以，这四个是我称之为校园中心、数据中心、人工智能中心和广域网中心的基石。然后在其上是一些非常好的软件。如果你注意到，我们在本季度的软件和服务续约方面有了一个不错的增长，这主要集中在 CloudVision 的可观察性和安全性周围。

So, I would say these are the four building blocks, and then the three software components on top of it. Of course, not to forget the services and support that are part of these TAMs as well.

所以，我会说这些是四个基石，然后是三个软件组件。当然，别忘了这些 TAM 中也包括服务和支持。

Atif Malik -- Citi -- Analyst

Atif Malik -- 花旗 -- 分析师

Thank you.

谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Thank you, Atif.

谢谢你，Atif。

Operator

运营人员

Our next question comes from the line of Antoine Chkaiban with New Street Research. Please go ahead.

我们下一个问题来自新街研究的 Antoine Chkaiban。请发言。

Antoine Chkaiban -- New Street Research -- Analyst

Antoine Chkaiban -- 新街研究 -- 分析师

I'd like actually to ask about the non-AI component of your Cloud and AI segment. What can you tell us about how investments in traditional infrastructure are trending? Because we heard from other vendors that inventory digestion is now easing. So, are you seeing that too?

我想问一下关于您的云和人工智能部门非人工智能组成部分的问题。您能告诉我们传统基础设施投资的趋势如何吗？因为我们听到其他供应商说库存消化现在正在减缓。您是否也看到了这一点？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

We saw that last year. We saw that there was a lot of pivot going on from the classic cloud, as I like to call it, to the AI in terms of spend. And we continue to see favorable preferences to AI spend in many of our large cloud customers. Having said that, at the same time, simultaneously, we are going through a refresh cycle where many of these customers are moving from 100 to 200 or 200 to 400 gig.

我们去年看到了这一点。我们看到从经典云，我喜欢称之为经典云，向人工智能的支出方面发生了很多转变。我们继续看到许多大型云客户对人工智能支出持有偏好。话虽如此，同时，我们正在经历一个刷新周期，许多客户正在从 100 到 200 或从 200 到 400 升级。

So, while we think AI will grow faster than cloud, we're betting on classic cloud continuing to be an important aspect of our contributions. Thanks.

因此，虽然我们认为人工智能增长速度将快于云，但我们仍押注于经典云继续是我们贡献的重要方面。谢谢。

Operator

运营人员

Our next question will come from the line of Amit Daryanani with Evercore. Please go ahead.

我们下一个问题将来自亿孚的 Amit Daryanani。请发言。

Amit Daryanani -- Analyst

Amit Daryanani -- 分析师

Yep. Good afternoon and thanks for taking my question. I guess just a question related to the updated '24 guide, and I realize it's at least 14% growth for the year. But your compares actually get much easier in the back half of the year versus what you've had in the first half.

是的。下午好，感谢您回答我的问题。我想就更新的'24 指南提出一个问题，我意识到至少是年增长 14%。但实际上，与上半年相比，您的比较在下半年将变得更容易。

So, just from an H2 versus H1 basis, is it reasonable to think that growth can actually accelerate for you in the back half of the year? And if it doesn't, why do you think it does not accelerate in the back half? Thank you.

因此，仅从下半年与上半年的基础来看，您认为增长在下半年实际上可以加速吗？如果不是，为什么您认为在下半年不会加速？谢谢。

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Yeah. I think that Jayshree and I came to this guide of at least 14% because we do see multiple scenarios as we go through the second half of the year. We do expect to continue to see some acceleration in growth, but I would say that from the perspective of the forward scenarios, we are comfortable with at least 14%, and we'll come back in Q3 and see where we were able to guide for the rest of the year.

是的。我认为 Jayshree 和我制定了至少 14% 的指南，因为当我们进入下半年时，我们看到了多种情景。我们预计增长将继续加速，但我想说从前瞻情景的角度来看，我们对至少 14% 感到满意，我们将在第三季度回来看看我们能为今年余下时间提供的指导。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Look at us. We're known to be traditionally conservative. We went from 10 to 12, 12 to 14. And now my CFO says at least 14.

看看我们。我们一向以保守著称。我们从 10 到 12，12 到 14。现在我的首席财务官说至少 14。

So, let's see how the second half goes. But I think at this point, you should think we are confident about second half, and we're getting increasingly confident about 2025.

所以，让我们看看下半年会怎样。但我认为此时，你应该认为我们对下半年有信心，而且我们对 2025 年越来越有信心。

Amit Daryanani -- Analyst

Amit Daryanani -- 分析师

Perfect. Thank you.

好的。谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Thank you.

谢谢。

Operator

运营人员

Our next question comes from the line of Tal Liani with Bank of America. Please go ahead.

我们下一个问题来自美银的 Tal Liani。请发言。

Tal Liani -- Analyst

Tal Liani -- 分析师

Was it your line, by the way? Thank you.

顺便问一下，这是你的问题吗？谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Tal, you there?

Tal，你在吗？

Tal Liani -- Analyst

Tal Liani -- 分析师

Yes. Can you hear me?

是的。你能听到我说话吗？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yes, yes.

是的，是的。

Tal Liani -- Analyst

Tal Liani -- 分析师

OK. My question is more in line with kind of the previous question. I calculated the implied growth in the fourth quarter. And I'm getting a much lower growth in the fourth quarter than what we've seen this quarter or next quarter.

好的。我的问题更接近之前的问题。我计算了第四季度的隐含增长率。我发现第四季度的增长率要低得多，低于我们在本季度或下一季度看到的增长率。

And I'm wondering if it's -- you said conservatism in the last answer. And the question is, is it just conservatism? Or is there anything special with the fourth quarter that the implied growth is only 9% year over year? And it goes across everything. The implied growth, revenue growth is lower, the gross margin is lower. So, some of it is conservatism, but is there anything special with 4Q timing of recognition or seasonality or anything that drives a lower implied guidance?

我想知道这是因为 -- 你在上一个回答中提到了保守态度。问题是，这只是保守态度吗？还是第四季度有什么特别之处，导致隐含增长率仅为去年同期的 9%？这涉及到所有方面。隐含增长率、营收增长率都较低，毛利率也较低。一部分是保守态度，但第四季度的时间点、确认时间或季节性等是否有任何特殊因素导致了较低的隐含指引？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

So, Tal, if you go back to November Analyst Day, to call out gross margin lower, I would disagree because I think we're just blowing it off our guide. Our guide was 63 to 64. And we have now shown two quarters of amazing gross margin. Hats off to my Mike Kappus and John McCool, Alex, and the entire team for really working on disciplined cost reductions.

所以，Tal，如果你回顾一下去年 11 月的分析师日，要说毛利率较低，我不同意，因为我认为我们只是按照我们的指引在运作。我们的指引是 63% 至 64%。我们已经展示了两个季度惊人的毛利率。向我的 Mike Kappus、John McCool、Alex 和整个团队致敬，因为他们真的在努力进行成本的纪律性削减。

But yet, if you look at mix, in general, the costs, etc., I would say you should plan on our gross margins being as we projected. They're not lower. I think we just did exceptionally well the last two quarters, so it's relatively lower. That's the first thing. Second, in terms of growth, I would say we always aim for double-digit growth.

但是，如果你看看产品组合、成本等方面，我会说你应该按照我们预期的毛利率进行规划。它们并没有降低。我认为我们在过去的两个季度表现得非常出色，所以相对较低。这是第一点。其次，在增长方面，我会说我们总是以两位数的增长率为目标。

We came in with 10% to 12%. And again, Q2 is just an outstanding quarter. I don't want to use it as a benchmark for how Q3, Q4 will be. But of course, we're operating off large numbers.

我们的目标是 10% 至 12%。而且，Q2 季度只是一个出色的季度。我不想将其作为评估 Q3、Q4 的基准。但当然，我们正在处理庞大的数字。

We'll aim to do better, but we'll have more visibility as we go into Q3, and we'll be able to give you a good sense of the year.

我们的目标是做得更好，但随着我们进入 Q3，我们将有更多的可见性，我们将能够为你提供对本年度的良好预期。

Tal Liani -- Analyst

Tal Liani -- 分析师

Got it. Thank you.

明白了。谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Thank you.

谢谢。

Operator

操作员

Our next question comes from the line of George Notter with Jefferies. Please go ahead.

我们下一个问题来自 Jefferies 的 George Notter。请发言。

George Notter -- Jefferies -- Analyst

George Notter -- Jefferies -- 分析师

Hi, guys. Thank you very much. I guess I was just curious about what your expectations were coming into the quarter for product deferred revenue. I guess I'm curious how much you thought would be added to that product deferred category in Q2.

嗨，各位。非常感谢。我只是好奇你们对本季度产品递延收入的预期是什么。我想知道你们认为 Q2 会有多少产品递延收入被归类到该类别中。

And then also, do you have a view on product deferred revenue for Q3? Thanks.

而且，你们对 Q3 的产品递延收入有何看法？谢谢。

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Yeah, hi. Yeah, nothing's changed in our philosophy that we don't guide product deferred revenue. So, there's nothing new there to report. I would say in the sense of coming to this quarter, we don't guide the product deferred revenue.

是的，嗨。是的，我们的理念没有改变，我们不指导产品递延收入。因此，在这方面没有新的报告。我会说在这个季度到来的意义上，我们不指导产品递延收入。

We have an idea in the sense of where we're going to land as we go through the quarter. But I would say that it met expectations from what we were having in our planning forecast process.

在我们的规划预测过程中，我们对我们将在季度中达到的目标有一个想法。但我会说，它符合我们在规划预测过程中的预期。

George Notter -- Jefferies -- Analyst

George Notter -- Jefferies -- 分析师

Got it. And I assume these are new products you've shipped to customers, you're waiting for customer acceptance. Any sense for when those customer acceptances might start to flow through? Is that a 2024 event? Is that a 2025 event? How do you think about it?

明白了。我猜这些是你们向客户交付的新产品，你们正在等待客户接受。你们有没有对客户接受何时开始产生影响的看法？这是 2024 年的事件吗？还是 2025 年的事件？你们如何看待这个问题？

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Yeah. They all have different timings because they're unique to the customer, the use case, AI, classic cloud, etc.. So, they're all unique and bespoke that way. So, there's no set trending on that.

是的。它们都有不同的时间安排，因为它们是独特的，根据客户、用例、人工智能、经典云等。因此，它们都是独特的和定制的。因此，在我们逐步推进的过程中，它们将被部署，然后从预测的角度来看，它们将落地。

And so, as we roll through the quarters, they'll come off as they get deployed and then that's where it will land from a forecasting perspective.

Jayshree V. Ullal -- 首席执行官兼主席

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

And I think it's fair to say if it's AI, it takes longer, if it's classic cloud, it's shorter.

我认为可以这样说，如果是人工智能，需要更长时间，如果是经典云，时间会更短。

George Notter -- Jefferies -- Analyst

George Notter -- Jefferies -- 分析师

OK, thank you.

好的，谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Thanks, George.

谢谢，George。

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Thank you.

谢谢。

Operator

操作员

Our next question comes from the line of Samik Chatterjee with JPMorgan. Please go ahead.

我们下一个问题来自摩根大通的 Samik Chatterjee。请发言。

Samik Chatterjee -- Analyst

Samik Chatterjee -- 分析师

Hi, thanks for taking my question, and strong results here. But if I can just ask a question on the commentary that Ashwin had in the prepared remarks. Ashwin, you mentioned the Tier 2 customer, where you're refreshing the front end, as I sort of interpreted it to alleviate some of the bandwidth sort of concerns from the back end. How do you think about that opportunity across your customer base? Particularly, how should we think about sort of that as being attached to the $750 million target for back-end revenues that you have for next year? Just help us think about the opportunity that you're seeing with your customers on that side.

嗨，感谢回答我的问题，业绩强劲。但我想问一下阿什温在准备好的讲话中提到的评论。阿什温，你提到了第二层客户，你正在更新前端，我理解为缓解一些后端带宽方面的问题。你如何看待你们客户群体中的这一机会？特别是，我们应该如何看待这一机会与你们明年为后端收入设定的 750 亿美元目标之间的关系？帮助我们思考一下你们在这方面看到的机会。

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Yeah, Samik, it's hard to say, right? I mean, I don't want to attach the $750 million back to this one customer, right? The goal around this one customer was to demonstrate our wins in enterprise and in the non-cloud space. But outside that, it would be very hard to go translate that to what's happening within the $750 million, right? I don't know, Jayshree, if you've got any comments around that at all.

是的，Samik，很难说，对吧？我的意思不是将这 750 亿美元与这一客户联系起来，对吧？这一客户的目标是展示我们在企业和非云领域的胜利。但除此之外，很难将其转化为发生在 750 亿美元内部的情况，对吧？我不知道，Jayshree，你对此有什么评论吗？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yeah. I was just going to add that there are four things Ashwin and the team are seeing in the enterprise and provider sector. I think the migration to 100 gig data center is pretty solidly going on. If anybody is still on a 10 and 40, they're definitely not an early adopter of technology.

是的。我只想补充说，阿什温和团队在企业和供应商领域看到了四个方面。我认为向 100 吉比特数据中心的迁移正在稳步进行。如果还有人在使用 10 和 40，他们绝对不是技术的早期采用者。有些人甚至正在转向 400 吉比特。

And some of them are even moving to 400 gig, I would say.

我会这样说。

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Absolutely, Jayshree.

绝对正确，Jayshree。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

So, that's on the data center. Campus, I know, in general, is a slow market. But for Arista, we are still seeing a lot of desire. And you heard Ashwin talk about a campus win, but they're really frustrated and they're struggling with existing campus deployments.

关于数据中心的情况。总体而言，校园市场增长缓慢。但对于 Arista 来说，我们仍然看到很强的需求。你听到 Ashwin 谈到了一次校园胜利，但他们真的感到沮丧，他们正在努力应对现有的校园部署问题。

So, we feel really good about our $750 million target for next year. The routed ran, again, we're both in Tier 2 and service providers and even in enterprise, there's a lot of activity going on there. And finally, the AI trials you talked about, they tend to be smaller, but it's a representation of the confidence the customer has. They may be using other GPUs, servers, etc..

因此，我们对明年的 7.5 亿美元目标感到非常满意。再次提到路由器，我们在第二层和服务提供商中，甚至在企业中，都有很多活动。最后，你提到的人工智能试验，它们往往规模较小，但代表了客户的信心。他们可能正在使用其他 GPU、服务器等设备。

But when it comes to the mission-critical networks, they've recognized the importance of best-of-breed reliability, availability, performance, no loss, and familiarity with the data center is naturally leading to pilots and trials on the AI side with us.

但是当涉及到关键网络时，他们认识到最可靠、可用、性能最佳、无丢包的重要性，对数据中心的熟悉自然而然地导致了与我们在人工智能方面的试点和试验。

Samik Chatterjee -- Analyst

Samik Chatterjee -- 分析师

Thank you.

谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Thank you, Samik.

谢谢，Samik。

Operator

运营商

Our next question comes from the line of Karl Ackerman with BNP Paribas. Please go ahead.

下一个问题来自于法国巴黎银行的 Karl Ackerman。请发言。

Karl Ackerman -- Analyst

Karl Ackerman -- 分析师

Yes, thank you. So, there are several data points across the supply chain that indicate enterprise networking and traditional server units are beginning to recover. I was hoping you might discuss what you are hearing from your enterprise and service provider customers on their commitment to upgrade their services and networking gear over the next couple of quarters. And as you address that, perhaps you could discuss the number of new customers being added in these verticals over the last couple of quarters out of the 10,000 or so that you have today? Thank you.

是的，谢谢。供应链中有几个数据点表明企业网络和传统服务器单位开始复苏。我希望您能讨论一下您从企业和服务提供商客户那里听到的关于未来几个季度升级服务和网络设备承诺的情况。在回答这个问题的同时，也许您可以讨论一下过去几个季度在这些垂直领域中新增的新客户数量，这些客户在您今天拥有的大约 1 万个客户中占多少？谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yeah. Let me take the second question. I think we are adding systematically. We celebrated the 10,000.

好的。让我回答第二个问题。我认为我们正在系统地增加客户。我们庆祝了 1 万个客户。

And so, because in the past, we used to add large numbers of customers. Now we're adding many small customers who are pleased with the systematic add of hundreds of customers every quarter, and that's going very, very well. What was your former question?

因此，过去我们曾大量增加客户。现在我们正在增加讈多小客户，他们对每个季度系统性地增加数百个客户感到满意，这进展非常顺利。您之前的问题是什么？

Karl Ackerman -- Analyst

Karl Ackerman -- 分析师

How to think about the adoption or the growth of server and networking gear on for campus environments and what you're seeing there.

您如何看待校园环境中服务器和网络设备的采用或增长，以及您在那里看到的情况。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

OK. So, perhaps it may come as a surprise to you, but servers aren't always related to campus. Devices and users are much more related to campus, right? Service tend to be dealing with more data center upgrades. So, in the campus, we're tending to see two things right now.

好的。也许这会让您感到惊讶，但服务器并不总是与校园相关。设备和用户更多地与校园相关，对吧？服务往往涉及更多数据中心的升级。因此，在校园中，我们目前看到两件事。

Greenfield buildings, they're planning for '25, '26 and they're smack in the middle of those RFPs. Or they're trying to create a little oasis in the desert and prove that our post-pandemic campus is much better with a leaf/spine topology, wired/wireless connecting to it at leaf, and then enabling things like zero-touch automation, method segmentation, capabilities, analytics, etc.. So, the campus is really turning out to in a somewhat sluggish overall market. We are finding that our customers are very interested in modernizing their campus.

绿地建筑，他们正在规划'25 年、'26 年，他们正处于这些请求的中心。或者他们正在尝试在沙漠中创造一个小绿洲，并证明我们的疫情后校园通过叶/脊拓扑结构、有线/无线连接到叶子，然后实现零触碰自动化、方法分割、能力、分析等方面的改进。因此，校园实际上正在变成一个在总体市场中略显迟缓的地方。我们发现我们的客户对现代化校园非常感兴趣。

And again, it has a lot to do with the familiarity with us in the data center, and that's translating to more success in the campus.

而且，这与他们在数据中心对我们的熟悉程度有很大关系，这导致在校园取得更多成功。

Karl Ackerman -- Analyst

Karl Ackerman -- 分析师

Thanks.

谢谢。

Operator

运营商

Our next question comes from the line of Ben Bollin with Cleveland Research. Please go ahead.

下一个问题来自于克利夫兰研究的 Ben Bollin。请发言。

Benjamin Bollin -- Analyst

Benjamin Bollin -- 分析师

Good evening, everyone. Thanks for taking the question. Jayshree, I mean just the bigger picture as you think about back-end network architectures gradually capturing more of the traditional front end. What do you think that looks like over the next several years? How quickly could that become a more realistic opportunity to capture more of that true fabric of overall compute resources?

大家晚上好。感谢您提问。Jayshree，我想谈谈您认为后端网络架构逐渐占据传统前端的更大画面。在未来几年内，您认为这会是什么样子？当所有设备都转向以太网时，这个过程会有多快变得更具现实意义？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Well, I think there are a lot of market studies that point to today is still largely InfiniBand. You remember me, Ben, saying we were outside looking in just a year ago. So, step one is we're feeling very gratified that the whole world, even InfiniBand players have acknowledged that we are making Ethernet great again. And so, I expect more and more of that back end to be Ethernet.

我认为有很多市场研究表明今天仍然主要是 InfiniBand。你还记得，Ben，就在一年前，我们还在外面看着。因此，第一步是我们感到非常满意，即使是 InfiniBand 的参与者也承认我们正在让以太网再次强大。因此，我预计后端的更多部分将采用以太网。

One thing I do expect, even though we're very signed up to the $750 million number -- at least $750 million, I should say, next year, is it's going to become difficult to distinguish the back end from the front end when they all move to Ethernet. For this AI center, as we call it, is going to be a conglomeration of both the front and the back. So, if I were to fast forward three, four years from now, I think the AI center is a supercenter of both the front end and the back end. So, we'll be able to track it as long as there's GPUs and strictly training use cases.

有一件事我期待，即使我们非常确定明年至少会达到 7.5 亿美元，那就是当所有设备都转向以太网时，将很难区分后端和前端。对于这个我们称之为人工智能中心的设施，将成为前端和后端的综合体。因此，如果我往后快进三四年，我认为人工智能中心将成为前端和后端的超级中心。因此，只要有 GPU 和严格的培训用例，我们将能够跟踪它。

But if I were to fast forward, I think there may be many more edge use cases, many more inference use cases and many more small-scale training use cases which will make that distinction difficult to make. Thank you, Ben.

但是如果我往后快进，我认为可能会有更多的边缘用例、更多的推理用例和更多的小规模培训用例，这将使区分变得困难。谢谢，Ben。

Operator

运营商

Our next question will come from the line of Alex Henderson with Needham. Please go ahead.

下一个问题来自 Needham 的 Alex Henderson。请发言。

Alex Henderson -- Analyst

Alex Henderson -- 分析师

Great, thank you very much. I was hoping we could talk a little bit about the spending biases in the cloud titans. Clearly, there's an enormous amount of spending going into the AI front end, back end networking elements, as well as the GPUs. But there is a rebounding growth rate of application that is ultimately driving the traditional business that has historically been called the CPU side of the data center.

非常感谢。我希望我们可以谈一下云巨头的支出偏好。显然，大量支出投入到人工智能前端、后端网络元素以及 GPU 中。但应用程序的增长率正在反弹，最终推动了传统业务的增长，这一直被称为数据中心 CPU 方面。

And I'm wondering if they're underinvesting in there and whether there's a potential for a catch-up in the spending in that area at some juncture because of the over bias to or whether that investment is ongoing at a reasonable rate, consistent with a moderate acceleration in the application growth?

我想知道他们是否在这方面投资不足，以及是否存在在某个时刻由于过度偏向而在这一领域的支出出现追赶的可能性，或者这种投资是否以与应用程序增长适度加速一致的合理速度持续进行中？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Alex, it's a very thought-provoking question. I would say there's such a heavy bias in the cloud titans toward training and super training and the bigger and better the GPUs, the billion parameters, the OpenAI, ChatGPT, and Llamas that you're absolutely right that at some level, the classic cloud, what you call traditional, I'm still calling classic, is a little bit neglected last year and this year. Having said that, I think once the training models are established, I believe this will come back, and it will sort of be a vicious cycle that feeds on each other. But at the moment, we're seeing more activity on the AI and more moderate activity on the cloud.

Alex，这是一个非常发人深省的问题。我会说，在云巨头中存在着对训练和超级训练的严重偏向，GPU 越大越好，十亿参数，OpenAI，ChatGPT 和 Llamas。你完全正确，在某种程度上，经典云，你所说的传统，我仍然称之为经典，去年和今年有点被忽视。话虽如此，我认为一旦训练模型建立起来，我相信这种情况会回来，这将形成一种互相促进的恶性循环。但目前，我们看到在人工智能方面的活动更多，云方面的活动较为温和。

Alex Henderson -- Analyst

Alex Henderson -- 分析师

Does the reacceleration of application growth excluding the AI play into that? I mean clearly that --

应用增长的重新加速是否排除了人工智能的因素？我的意思显然是 --

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

I think it does. I don't know how to measure it, but I think the more AI back end we put in, we expect that to have a pressure on the front end of x percent. We're still trying to assess whether that's 10%, 20%, 30%. And so, we do not count that in our $750 million number, to be accurate, to the only GPU native connections.

我认为是的。我不知道如何衡量，但我认为我们在后端投入更多人工智能，我们预计这会对前端产生 x% 的压力。我们仍在努力评估这是否为 10%，20%，30%。因此，我们没有将这一点计入我们的 7.5 亿美元数字，以保持对仅 GPU 本机连接的准确性。

But absolutely, as the two holistically come together to form this AI center, I believe the front end will have pressure.

但绝对可以肯定的是，当这两者整体结合形成这个人工智能中心时，我相信前端将受到压力。

Alex Henderson -- Analyst

Alex Henderson -- 分析师

Great. Thank you so much and thanks for the great quarter.

非常感谢。非常感谢您过去一个季度的出色表现。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Thank you, Alex. Appreciate your support.

谢谢你，Alex。感谢您的支持。

Operator

运营商

Our next question comes from the line of Ben Reitzes with Melius Research. Please go ahead.

我们下一个问题来自 Melius Research 的 Ben Reitzes。请发言。

Jack Adair -- Melius Research -- Analyst

Jack Adair -- Melius Research -- 分析师

This is Jack Adair for Ben. Wondering if you could comment on the competitive environment. And if you're seeing Spectrum X from NVIDIA? And if so, how you're doing against it?

我是 Jack Adair 代表 Ben。想知道您对竞争环境有何评论。您是否看到了 NVIDIA 的 Spectrum X？如果看到了，您对抗争的情况如何？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yeah. Well, first, I just want to say, when you say competitive environment, it's complicated with NVIDIA because we really consider them a friend on the GPUs, as well as the mix, so not quite a competitor. But absolutely, we will compete with them on the Spectrum switch. We have not seen the Spectrum except in one customer where it was bundled.

是的。首先，我想说，当您提到竞争环境时，与 NVIDIA 相关是很复杂的，因为我们在 GPU 方面真的认为他们是朋友，以及混合，所以并非完全竞争对手。但绝对地，在 Spectrum 开关上我们将与他们竞争。除了在一个客户那里捆绑销售的情况，我们并没有看到 Spectrum。

But otherwise, we feel pretty good about our win rate and our success. For a number of reasons, great software, portfolio of products, and architecture has proven performance, visibility features, management capabilities, high availability. And so, I think it's fair to say that if a customer were bundling with their GPUs, then we wouldn't see it. If a customer were looking for best of breed, we absolutely see it and win it.

但除此之外，我们对我们的获胜率和成功感到非常满意。出于许多原因，出色的软件，产品组合，架构已经证明了性能，可见性功能，管理能力，高可用性。因此，我认为可以说，如果客户将他们的 GPU 与其他产品捆绑销售，那么我们就看不到。如果客户正在寻找最佳产品，我们绝对看到并赢得了。

Jack Adair -- Melius Research -- Analyst

Jack Adair -- Melius Research -- 分析师

Thank you for that.

谢谢您。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Thanks, Jack.

谢谢，Jack。

Operator

运营商

Our next question will come from the line of James Fish with Piper Sandler. Please go ahead.

我们下一个问题将来自 Piper Sandler 的 James Fish。请发言。

James Fish -- Analyst

James Fish -- 分析师

Thanks for taking the question. Just wanted to circle back on the enterprise side of things. Is there a way to think about how many replacements you're seeing relative to prior periods? And really, I'm trying to understand if we're starting to see that core enterprise data center network refresh actually pick up versus kind of the share gains that you guys have historically seen. And is there an underlying change in enterprise customer behavior, whether it's for the data center or Jayshree, I know you were talking about the campus earlier.

感谢您回答问题。只是想回到企业方面。是否有一种方式可以思考您看到的替换数量相对于以往时期的情况？我真的想了解我们是否开始看到核心企业数据中心网络更新实际加速，而不仅仅是您们过去一直看到的市场份额增长。企业客户行为是否发生了根本性变化，无论是针对数据中心还是 Jayshree，我知道您之前谈到了校园。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yeah, James, let me talk and Ashwin, I'm sure you have more to add since you're closer to the problem. I believe we have three classes of enterprise customers. The early adopters. And I think in that category, Ashwin's team is seeing a lot of refresh going.

是的，James，让我谈谈，Ashwin，我相信你有更多要补充，因为你更接近这个问题。我认为我们有三类企业客户。早期采用者。我认为在这一类别中，Ashwin 的团队看到了很多更新。

They already have 100 gig and they're potentially planning their 400 gig, right? Then the fast followers. And those guys, I think, are still looking at 100-gig migrations, right? And then the real risk averse, and we're still getting to know them because this is an untapped opportunity for us, right? And probably a fourth category where some of them are disillusioned with the public cloud and want to repatriate some of their workloads back into the data center. So, I would say there's activity in all four. No saturation, still a lot of opportunity for us largely in the speed upgrades and also in the class of customers and what stage they are.

他们已经有了 100G，并且可能正在计划他们的 400G，对吧？然后是快速跟随者。这些人，我认为，仍在考虑 100G 的迁移，对吧？然后是真正风险规避者，我们仍在了解他们，因为这对我们来说是一个未开发的机会，对吧？可能还有第四类客户，其中一些人对公共云感到失望，希望将一些工作负载重新迁移到数据中心。因此，我会说这四类客户中都存在活动。没有饱和，对我们来说仍然有很多机会，主要是在速度升级和客户类别方面，以及他们所处的阶段。

Ashwin, do you want to add anything to that?

Ashwin，你想补充些什么吗？

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Yes. Sure, Jayshree, right? And so, to answer your question, from what I'm seeing from customers, they're kind of fed up with being deployed in the data center, specifically, something which is proprietary lock-in, right? Something which does not give them the flexibility to join multiple use cases such as data center, campus, routing, and they want something that just works. They want something that is just simple. They want to make sure that when they wake up in the morning, the network is not down.

是的。当然，Jayshree，对吧？那么，回答您的问题，从客户那里看到的情况是，他们对部署在数据中心中感到厌倦，特别是一些具有专有锁定的东西，对吧？一些不能让他们灵活应对多种用例，如数据中心，校园，路由，他们希望得到一些简单的东西。他们希望确保早上醒来时，网络不会宕机。

And so, Arista today actually has a brand. It has a value for their -- and we've actually been delivering this for the last 10-plus years. So, James, I would say the message is echoing successfully in our existing customers who are taking a risk not only in the single use case of data center, but expanding that across data center, campus, routing, WAN. And then the team is eagerly working with a new set of Global 2000 and Fortune 500 customers to go evangelize a message to them as well.

因此，Arista 今天实际上已经为他们的品牌树立了价值 -- 我们过去 10 多年一直在提供这一点。因此，James，我会说这个信息在我们现有客户中成功地传达，他们正在冒险不仅仅在数据中心的单一用例中，而是将其扩展到数据中心，校园，路由，广域网。然后团队正急切地与一批新的全球 2000 和财富 500 客户合作，向他们传递这一信息。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Thanks, James.

谢谢，James。

Operator

运营商

Our next question will come from the line of Ittai Kidron with Oppenheimer. Please go ahead.

我们下一个问题将来自 Oppenheimer 的 Ittai Kidron。请发言。

Ittai Kidron -- Analyst

Ittai Kidron -- 分析师

Thanks, nice numbers, ladies. I wanted to go back to gross margin. Jayshree, Chantelle, if you don't mind, in your prepared remarks, you talked about manufacturing efficiencies, cost reduction. I guess I'm wondering why is that not something that carries forward to the next quarter as well? I understand you're trying to be conservative, but I'm sure these are not changes that have a very short lifespan that they can carry forward.

谢谢，很好的数字，女士们。我想回到毛利率这个话题。Jayshree、Chantelle，如果你们不介意，在你们的发言中，你们谈到了制造效率、成本削减。我想知道为什么这些措施不能延续到下一个季度呢？我明白你们试图保守，但我相信这些变化不会是短期内就消失的。

So, why not be a bit more optimistic on what the gross margin outlook should be?

那为什么不对毛利率展望更加乐观呢？

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Yes. No, it's a great question. And so, our goal is always to try to do better than our guide. But within that guide, the question is there's -- mostly what's influencing the second half consideration is the expected mix of customers.

是的。不，这是一个很好的问题。我们的目标始终是努力超过我们的指引。但在这个指引中，问题在于 -- 大部分影响下半年考虑的是预期客户组合。

As you can appreciate, we do have different mixes depending on the demographics of who we're selling to. So, I think that's a big part of our second half, why we kept the guide as it is. We will keep looking for variable cost productivity in cost management as we go through and hope to deliver more. But at this point in time, what's mostly built into it is the mix assumption in the second half.

正如你所理解的，我们的客户组合因销售对象的人口统计数据而异。所以，我认为这是我们保持指引不变的下半年的重要原因。在继续进行可变成本生产率和成本管理方面，我们将继续寻找更多机会。但在目前阶段，大部分已经考虑进去的是下半年的客户组合假设。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

And if you look at -- this isn't just this quarter. John and the team have done a fantastic job for the last year. So, yes, I'm going to go back to them and ask for more, but I think they will say they've done so much and might be squeezing blood out of a stone. So, we'll see if they respond to more cost reductions.

如果你看一下 -- 这不仅仅是本季度。John 和团队在过去一年里做得非常出色。所以，是的，我会再次向他们要求更多，但我认为他们会说他们已经做了很多，可能已经使出了浑身解数。所以，我们将看看他们是否会对更多的成本削减做出回应。

But I absolutely agree with Chantelle. It's largely driven by mix. And I think we've taken a lot of the cost reductions out in the last year.

但我绝对同意 Chantelle。这在很大程度上是由客户组合驱动的。我认为在过去一年里我们已经做了很多成本削减。

Ittai Kidron -- Analyst

Ittai Kidron -- 分析师

I appreciate it.

我感激不尽。

Operator

运营商

Thank you. Our next question will come from the line of Simon Leopold with Raymond James. Please go ahead.

谢谢。下一个问题来自 Raymond James 的 Simon Leopold。请发言。

Simon Leopold -- Analyst

Simon Leopold -- 分析师

Thank you very much. I know that you typically hold off on the 10% customer disclosures until the end of the fiscal year. But what I'm hoping to gather is how customer concentration may be evolving from comparison to last year, do you expect with your past customers growing their spending so much that it stays similar or with the diversity of the new opportunities, the concentration you've had historically declined. Any kind of indication you could offer? I'd appreciate it.

非常感谢。我知道你们通常会等到财年结束才披露占比 10% 的客户。但我希望了解的是，客户集中度可能会从去年到现在有何变化，你们是否预计随着过去客户的支出增长，集中度会保持相似，还是随着新机会的多样性，你们历史上的集中度会下降。你能提供任何线索吗？我会感激的。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

I mean, I'll try, but you're right to say that we don't know. It's only half the year. I expect both Microsoft and Meta to be greater than 10% customers for us. I don't expect any other 10% concentration.

我的意思是，我会尝试，但你说得对，我们不知道。现在只是一年的一半。我预计微软和 Meta 将成为我们超过 10% 的客户。我不指望其他任何 10% 的集中度。

Now in Microsoft and Meta, how they will pivot to AI and how they will reduce the spend and all that things, that movie will play out in the next six months. So, we'll know better. But at this point, I think you can assume they won't be exactly the same. Some may go up, some may go down.

现在在微软和 Meta，他们将如何转向人工智能，以及他们如何减少支出等等，这部电影将在接下来的六个月内上映。所以，我们会更清楚。但在目前阶段，我认为你可以假设它们不会完全相同。有些可能会增加，有些可能会减少。

But these are two extremely vital customers, strategic customers, we co-develop with them. We partner with them very, very well. And we expect to do well with them, both in cloud and AI, depending on their priorities, of course.

但这两个极其重要的客户，战略性客户，我们与他们合作得非常好。我们期待在云计算和人工智能方面与他们合作顺利，当然这取决于他们的优先事项。

Simon Leopold -- Analyst

Simon Leopold -- 分析师

And does the pipeline suggest you can have new 10% customers next year? Or do you expect sort of a similar concentration next year?

那么，你们的业务前景是否表明明年会有新的 10% 客户？还是你们预计明年的集中度会类似？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Yeah, we're not aware of any customers that will approach 10% this year or next year.

是的，我们不知道今年或明年会有任何接近 10% 的客户。

Simon Leopold -- Analyst

Simon Leopold -- 分析师

Thank you very much.

非常感谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Sure, Simon.

当然，Simon。

Operator

运营商

Our next question comes from the line of Tim Long with Barclays. Please go ahead.

我们的下一个问题来自巴克莱的 Tim Long。请发言。

Tim Long -- Analyst

Tim Long -- 分析师

Thank you, maybe we'll go over to the software services, the AI stuff has been beaten up a little bit here. In a good way. You talked a lot about some of the software capabilities. It seems like Arista might be leaning in a little bit more to this revenue line.

谢谢，也许我们可以转向软件服务，人工智能方面已经受到了一些打击。以一种好的方式。你们谈到了一些软件能力。看起来 Arista 可能会更加倾向于这一收入线。

It's been growing faster than the hardware product the last multiple quarters. So, could you talk about kind of sustainability of that strength focus that you guys have on this service software area and what that would mean to growth rate going forward? Thank you.

在过去几个季度，软件产品的增长速度比硬件产品更快。所以，你能谈谈关于这种服务软件领域的强劲重点的可持续性，以及这对未来增长率意味着什么吗？谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼董事长

Yes. Thank you. Thank you for the change in question. I appreciate that.

是的。谢谢。感谢你改变了问题。我很感激。

I think we will be in the teens for some time because there are three building blocks, and a lot of this, Ashwin, you know very well. There's the services building block that as product goes up, there's a lot of pressure on us on a percentage of service to be lower, right? So, that, while it may -- historically has been in the teens, can be lower. Then, the second one is our perpetual software which, again, is a strong function of use cases, particularly things like routing, etc., where we've done very, very well. The stronger we do there, the better we do there.

我认为我们将在十几个百分点上保持一段时间，因为有三个基石，而其中很多，Ashwin，你非常了解。有服务基石，随着产品增长，我们在服务占比方面承受了很大压力，对吧？因此，尽管历史上一直在十几个百分点，但可能会更低。然后，第二个是我们的永久软件，再次，这主要取决于用例，特别是像路由等方面，我们做得非常好。我们在那里做得越好，我们就越好。

An extension of that is CloudVision, which is more a subscription service with CloudVision as a service, either Network as a Service or on the premise. So, that's the second building block for us that's going strong. The one I want to point to a little more which could help us is the security and observability. You may know in May, we introduced the micro and macro segmentation.

这方面的延伸是 CloudVision，这更多是一个订阅服务，具有 CloudVision 作为服务，无论是作为网络服务还是在现场。所以，这是我们的第二个正在壮大的基石。我想更多地指出的是安全性和可观察性。你可能知道，五月份，我们推出了微观和宏观分割。

We also announced UNO, our Unified Network Observability. And while this is new, Ashwin and I have great plans for that, and I think this could be a swing factor. As the services components may reduce over time, these new product components may increase. So, 17 points, whatever percent it was, is a great number.

我们还宣布了 UNO，我们的统一网络可观察性。虽然这是新的，Ashwin 和我对此有很好的计划，我认为这可能是一个转折因素。随着时间的推移，服务组件可能会减少，而这些新的产品组件可能会增加。所以，17 个百分点，无论是什么百分比，都是一个很好的数字。

And if we can consistently stay there, I'd be very proud, particularly as our numbers get larger.

如果我们能够保持在这个水平，我会感到非常自豪，特别是当我们的数字变得更大时。

Tim Long -- Analyst

Tim Long -- 分析师

OK. Thank you.

好的。谢谢。

Operator

运营商

Our next question comes from the line of Sebastien Naji with William Blair. Please go ahead.

我们的下一个问题来自 William Blair 的 Sebastien Naji。请发言。

Sebastien Naji -- William Blair -- Analyst

Sebastien Naji -- William Blair -- 分析师

Hey, thanks for taking the question and sorry to bring you guys back to the AI conversation, but this one is a little bit more high level. I guess, we keep hearing about bigger and bigger API clusters that are being built. And as Arista is working on connecting these larger and larger clusters as they scale, I'm just wondering, does that impact your ability to capture more revenue? You've talked about 15% of capex. Does that maybe change or go up or go down as these clusters that you're having to connect get bigger and bigger?

嘿，感谢您回答问题，抱歉让大家再次回到人工智能讨论，但这个问题有点更高层次。我想，我们一直听说正在建设越来越大的 API 集群。由于 Arista 正在努力连接这些越来越大的集群，我只是想知道，这是否会影响您捕获更多收入的能力？您提到了资本支出的 15%。随着您需要连接的这些集群变得越来越大，这个比例可能会改变，增加还是减少吗？

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yes, so if you look at an AI network design, you can look at it through two lenses, just through the compute, in which case you look at scale up and you look at it strictly through how many processes there are. But when we look at an AI network design, it's a number of GPUs or XTUs per workload. Distribution and location of these GPUs are important. And whether the cluster has multiple tenants and how it's divvied up between the host, the memory, the storage, and the wide-area plays a role, and the optimization to make on the applications for the collective communication libraries for specific workloads, levels of resilience, how much redundancy you want to put in, active, link base, load balancing, types of visibility.

是的，所以如果您从两个角度看 AI 网络设计，您可以通过计算来看，然后您可以严格看待有多少个进程。但当我们看 AI 网络设计时，这是每个工作负载的 GPU 或 XTU 数量。这些 GPU 的分布和位置很重要。集群是否有多个租户以及如何在主机、内存、存储和广域网之间分配，以及为特定工作负载的集体通信库进行优化的应用程序扮演的角色，以及对特定工作负载的通信库进行优化的应用程序的优化程度、弹性级别、您想要投入多少冗余度、主动、基于链路的负载平衡、可见性类型。

So, the metrics are just getting more and more. There are many more commutations in combination. But it all starts with number of GPUs, performance, and billions of parameters. Because the training models are definitely centered around job completion time.

因此，指标越来越多。有许多组合的通信。但一切都始于 GPU 的数量、性能和数十亿个参数。因为训练模型绝对是围绕作业完成时间的。

But then there's multiple concentric circles of additional things we have to add to that network design. All this to say, a network design-centric approach has to be taken for these GPU clusters. Otherwise, you end up being very siloed, and that's really what we're working on. So, it goes beyond scale and performance to some of these other metrics I mentioned.

但是，还有许多额外的事情我们必须添加到网络设计中。所有这些都是为了说，必须采取以网络设计为中心的方法来处理这些 GPU 集群。否则，您最终会变得非常孤立，这确实是我们正在努力的方向。因此，它超越了规模和性能，涉及到我提到的一些其他指标。

Liz Stine -- Director, Investor Relations

Liz Stine -- 投资者关系总监

Thanks, Sebastien. Operator, we have time for one last question, please.

谢谢，Sebastien。操作员，请您提出最后一个问题。

Operator

操作员

Our final question comes from the line of David Vogt with UBS. Please go ahead.

我们的最后一个问题来自 UBS 的 David Vogt。请发言。

David Vogt -- UBS -- Analyst

David Vogt -- UBS -- 分析师

Great, thanks, guys. Maybe just to bring it back together and maybe both for Jayshree and Chantelle. I guess what I'm trying to think through is this is your product introduction. You have a pretty strong ramp of AI likely next year.

谢谢，各位。也许简单地把问题整合一下，也许 Jayshree 和 Chantelle 都可以回答。我想我正在思考的是这是您的产品介绍。明年您可能会看到 AI 的增长势头很强劲。

But does the guide imply that we're going to start to see a much bigger contribution in Q4 driven by the comments around mix earlier and the gross margin discussion? Because I would imagine early in the stage of their life cycle plus the fact that they're hyperscalers, they're going to be a relatively more modest gross margin profile at the beginning of the glide path versus the end of the glide path. So, just any color there in terms of what Q4 might look like from an AI perspective relative to your expectations from a glide path perspective? Thank you.

但是，指引是否意味着由于之前关于混合的评论和毛利讨论，我们将开始看到由于产品组合的增加而推动的 Q4 的贡献更大？因为我想，在它们的生命周期早期以及它们是超大规模运算的事实，它们在滑行路径的开始阶段与滑行路径的结束阶段相比，可能会有一个相对较为适度的毛利率配置。因此，关于 Q4 从 AI 视角看可能会如何，相对于您对滑行路径的预期有什么看法？谢谢。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yeah. Let me just remind you of how we are approaching 2024, including Q4, right? Last year, trials. So, small, it was not material. This year, we're definitely going into pilots.

是的。让我提醒您我们如何看待 2024 年，包括 Q4，对吧？去年，试验。所以，规模很小，不重要。今年，我们肯定会进行试点。

Some of the GPUs, and you've seen this in public blogs published by some of our customers have already gone from tens of thousands to 24,000 and are heading toward 50,000 GPUs. Next year, I think there will be many of them heading into tens of thousands aiming for 100,000 GPUs. So, I see next year as more promising. Some of them might happen this year.

一些 GPU，您已经在一些客户发布的公开博客中看到了这一点，已经从数万个增加到 24,000 个，并且正朝着 50,000 个 GPU 前进。明年，我认为会有很多 GPU 前进到数万个，目标是 100,000 个 GPU。因此，我认为明年更有希望。其中一些可能会在今年发生。

But I think we're very much in -- going from trials to pilots, trials being hundreds. And this year, we're in the thousands. But I wouldn't focus on Q4. I'd focus on the entire year and say, yes, we've gone into the thousands.

但我认为我们非常注重从试验转向试点，试验是数百个。今年，我们已经达到了数千个。但我不会把重点放在 Q4 上。我会关注整个年度，并且会说，是的，我们已经达到了数千个。

And I'll let Chantelle turn for this glide path, right? So, we expect to be single-digit small percentages of our total revenue in AI this year. But we are really, really expecting next year to be the $750 million a year or more.

我会让 Chantelle 谈谈这个滑行路径，对吧？因此，我们预计今年 AI 在我们总收入中仅占个位数的百分比。但我们真的非常期待明年能达到每年 7.5 亿美元或更多。

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Yes. Yes. I think so. I completely agree, Jayshree.

是的。是的。我完全同意，Jayshree。

The only thing I would add to it is you have to think of the kind of matrix we're working within. So, we have cloud and enterprise customers and we have very, very different scopes of readiness at those customers. So, Q3, Q4, Q1, Q2 next year, they're all eligible for timing for types, etc.. So, we just want to make sure that the variability that I spoke to in my prepared remarks is understood in that context.

我要补充的唯一一点是您必须考虑我们正在工作的矩阵类型。因此，我们有云和企业客户，这些客户的准备程度非常不同。因此，Q3、Q4、明年的 Q1、Q2，它们都适用于时间和类型等。因此，我们只是希望确保我在准备好的发言中提到的变化在这种情况下得到理解。

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Yeah. I think simple things like power and cooling are affecting the ability to deploy in a massive scale. So, there's nothing magic about Q4. There's plenty of magic about the year in its entirety and next year.

是的。我认为像电力和冷却这样简单的事情正在影响大规模部署的能力。因此，Q4 并没有什么神奇之处。整个年度和明年有很多神奇之处。

David Vogt -- UBS -- Analyst

David Vogt -- UBS -- 分析师

Great. Thanks. Thanks, Chantelle. Thanks, Liz.

好的。谢谢。谢谢，Chantelle。谢谢，Liz。

Liz Stine -- Director, Investor Relations

Liz Stine -- 投资者关系总监

Thanks, Davide. This concludes the Arista Networks second quarter 2024 earnings call. We have posted a presentation, which provides additional information on our results, which you can access on the Investors section of our website. Thank you for joining us today, and thank you for your interest in Arista.

谢谢，Davide。这就结束了 Arista Networks 2024 年第二季度收益电话会议。我们已经发布了一份演示文稿，其中提供了有关我们业绩的更多信息，您可以在我们网站的投资者部分查看。感谢您今天加入我们，并感谢您对 Arista 的关注。

Operator

操作员

[Operator signoff]

[操作员签退]

Duration: 0 minutes

持续时间：0 分钟

Call participants:

与会者：

Liz Stine -- Director, Investor Relations

Liz Stine -- 投资者关系总监

Jayshree V. Ullal -- Chief Executive Officer and Chairperson

Jayshree V. Ullal -- 首席执行官兼主席

Ashwin Kohli -- Senior Vice President-Customer Engineering

Ashwin Kohli -- 高级副总裁 - 客户工程

Jayshree Ullal -- Chief Executive Officer and Chairperson

Jayshree Ullal -- 首席执行官兼主席

Chantelle Breithaupt -- Chief Financial Officer

Chantelle Breithaupt -- 首席财务官

Michael Ng -- Goldman Sachs -- Analyst

Michael Ng -- 高盛 -- 分析师

Aaron Rakers -- Analyst

Aaron Rakers -- 分析师

Meta Marshall -- Analyst

Meta Marshall -- 分析师

Atif Malik -- Citi -- Analyst

Atif Malik -- 花旗 -- 分析师

Antoine Chkaiban -- New Street Research -- Analyst

Antoine Chkaiban -- 新街研究 -- 分析师

Amit Daryanani -- Analyst

Amit Daryanani -- 分析师

Tal Liani -- Analyst

Tal Liani -- 分析师

George Notter -- Jefferies -- Analyst

George Notter -- 杰富瑞 -- 分析师

Samik Chatterjee -- Analyst

Samik Chatterjee -- 分析师

Karl Ackerman -- Analyst

Karl Ackerman -- 分析师

Benjamin Bollin -- Analyst

Benjamin Bollin -- 分析师

Alex Henderson -- Analyst

Alex Henderson -- 分析师

Jack Adair -- Melius Research -- Analyst

Jack Adair -- Melius Research -- 分析师

James Fish -- Analyst

James Fish -- 分析师

Ittai Kidron -- Analyst

Ittai Kidron -- 分析师

Simon Leopold -- Analyst

Simon Leopold -- 分析师

Tim Long -- Analyst

Tim Long -- 分析师

Sebastien Naji -- William Blair -- Analyst

Sebastien Naji -- William Blair -- 分析师

David Vogt -- UBS -- Analyst

David Vogt -- 瑞银 -- 分析师

More ANET analysis

更多关于 ANET 的分析

All earnings call transcripts

所有收益电话会议记录

Contents:

目录:

Prepared Remarks:

主要发言:

Questions & Answers:

问题与回答：

Call participants:

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Arista Networks (ANET) 2024 年第二季度财报电话会议实录