What drove ANET's EPS growth in 2024?

Arista Networks' (ANET) EPS grew from $1.07 in 2022 to $1.65 in 2023, and then to $2.23 in 2024. The key drivers of this growth are as follows:

1. **Revenue Growth**: Arista's revenue increased from $4.38 billion in 2022 to $5.86 billion in 2023, and then to $7 billion in 2024. This growth in revenue is a direct result of the company's strategic focus on expanding its customer base and increasing its market share, especially in the AI and data center networking sectors.
2. **Gross Margin Improvement**: The company's gross margin improved from 30.87% in 2022 to 35.62% in 2023, and then to 40.73% in 2024. This improvement in gross margin indicates that Arista is able to generate more profit from its revenue, which in turn leads to higher EPS.
3. **Operating Efficiency**: Arista has been able to improve its operating efficiency, as evidenced by the increase in GAAP net income from $545.3 million in 2023 to $747.9 million in 2024. This improvement in operating efficiency contributes to higher EPS.

In conclusion, Arista's EPS growth in 2024 can be attributed to a combination of revenue growth, gross margin improvement, and operating efficiency. These factors collectively contribute to the company's ability to generate more profit from its operations, leading to higher EPS.