Financial Data and Key Metrics Changes - Revenue for Q2 was $1.45 billion, representing a 15% year-over-year increase and at the high end of the guided range [22][17] - Non-GAAP operating margin improved to 37.3%, up approximately 3 percentage points year-over-year [17][117] - Non-GAAP EPS increased by 26% year-over-year, exceeding guidance [17] - Operating cash flow was $477 million, and free cash flow was $438 million for the quarter [8] - The company ended the quarter with cash and short-term investments totaling $1.66 billion [8] Business Line Data and Key Metrics Changes - Design Automation revenue grew by 14% year-over-year, driven by strength in EDA software and hardware [113] - Design IP segment revenue increased by 19%, supported by strong demand in automotive and advanced nodes [5][117] - The analog design environment saw significant adoption, with a reported 10x productivity gain using the ASO.ai engine [4] Market Data and Key Metrics Changes - Demand for interface IP for AI and data center applications is growing rapidly, with the launch of a 1.6 terabyte Ethernet solution [20] - The company secured over 10 design wins for PCIe 6.0 and CXL 3.0 solutions, indicating strong market traction [20] - The backlog stands at $7.9 billion, reflecting strong customer commitment [95] Company Strategy and Development Direction - The company is prioritizing growth investments in core EDA and IP businesses while accelerating its Silicon to Systems strategy [6] - The planned acquisition of Ansys is expected to expand the total addressable market (TAM) and enhance system design solutions [18][91] - The company is focusing on modernizing analog workflows and leveraging AI technologies to improve productivity [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of 14.5% to 15.6% and non-GAAP EPS growth of 22% to 23% for fiscal year 2024 [23] - The company noted ongoing demand for advanced EDA technology driven by semiconductor companies and hyperscalers [101] - Management highlighted the importance of AI in driving customer adoption and improving operational efficiency [69] Other Important Information - The company announced the definitive agreement to sell its software integrity business, which will be classified as a discontinued operation [6][22] - The transaction with Clear Lake Capital and Francisco Partners is valued at up to $2.1 billion and is expected to close in the second half of 2024 [94][83] Q&A Session Summary Question: What is the uplift around ACV with customers adopting newer AI products? - Management indicated that the uplift is still being assessed for ASO.ai and VSO.ai, but confirmed that as customers use the technology, monetization opportunities will arise [25] Question: What drove the strength and upside in the quarter? - Management attributed the strength to strong execution and demand for their solutions, particularly in semiconductor and systems companies [11] Question: Can you provide insights on the regulatory approval process for the Ansys acquisition? - Management confirmed that they are following a thorough roadmap for regulatory approvals and are confident in the process [36] Question: How is the IP business expected to perform in the second half of the year? - Management expects continued growth in the IP business, with a strong Q4 anticipated [55] Question: What are the adoption rates for DSO.ai? - Management stated that they are currently at roughly 20% of the total addressable market for DSO.ai, with significant room for growth [79] Question: Are there any changes in purchasing behavior due to the Ansys acquisition? - Management noted that there have been no significant changes in customer behavior at this stage, as they continue to engage with established customers [131]

Here is how Synopsys performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Synopsys (SNPS) reported $1.45 billion in revenue for the quarter ended April 2024, representing a year-over- year increase of 4.3%. EPS of $3.00 for the same period compares to $2.54 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.51 billion, representing a surprise of -3.83%. The company delivered an EPS surprise of -0.99%, with th ...

Synopsys (SNPS) came out with quarterly earnings of $3 per share, missing the Zacks Consensus Estimate of $3.03 per share. This compares to earnings of $2.54 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -0.99%. A quarter ago, it was expected that this maker of software used to test and develop chips would post earnings of $3.43 per share when it actually produced earnings of $3.56, delivering a surprise of 3.79%. Over the ...

EXHIBIT 99.1 PRESS RELEASE INVESTOR CONTACT: Trey Campbell Synopsys, Inc. 650-584-4289 Synopsys-ir@synopsys.com EDITORIAL CONTACT: Cara Walker Synopsys, Inc. 650-584-5000 corp-pr@synopsys.com Synopsys Posts Financial Results for Second Quarter Fiscal Year 2024 Results Summary1 SUNNYVALE, Calif. – May 22, 2024 – Synopsys, Inc. (Nasdaq: SNPS) today reported results for its second quarter of fiscal year 2024. Revenue for the second quarter of fiscal year 2024 was $1.455 billion, compared to $1.263 billion for ...

Results Summary1 SUNNYVALE, Calif., May 22, 2024 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its second quarter of fiscal year 2024. Revenue for the second quarter of fiscal year 2024 was $1.455 billion, compared to $1.263 billion for the second quarter of fiscal year 2023. Synopsys headquarters in Sunnyvale, Calif. (PRNewsfoto/Synopsys, Inc.)Synopsys headquarters in Sunnyvale, Calif. (PRNewsfoto/Synopsys, Inc.) "We continued our strong operational execution and business momentu ...

Represents Key Milestone Toward Completion of Transaction with Synopsys PITTSBURGH, May 22, 2024 /PRNewswire/ -- ANSYS, Inc. (NASDAQ: ANSS) announced that at the special meeting of stockholders (the "Special Meeting") held earlier today, its stockholders voted to approve the proposed acquisition of Ansys by Synopsys, Inc. (NASDAQ: SNPS). Under the terms of the merger agreement, Ansys stockholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each Ansys share they own, represent ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell- side) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Synopsys (SNPS) . Synopsys currently has an average brokerage recommenda ...

Synopsys, Inc. (SNPS) is slated to report second-quarter fiscal 2024 results on May 22 after market close. The company anticipates revenues between $1.56 billion and $1.59 billion for the fiscal second quarter. The Zacks Consensus Estimate is pegged at $1.51 billion, which suggests growth of 8.4% from the year-ago period's reported figure. Synopsys' strategic partnerships with industry leaders such as Microsoft and Taiwan Semiconductor Manufacturing Company are likely to have enhanced the deployment of its ...

In its upcoming report, Synopsys (SNPS) is predicted by Wall Street analysts to post quarterly earnings of $3.03 per share, reflecting an increase of 19.3% compared to the same period last year. Revenues are forecasted to be $1.51 billion, representing a year-over-year increase of 8.4%. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. ...

More than half (54%) of organizations surveyed suffered a software supply chain attack in the past year, according to a new report from Synopsys Software Integrity Group and Ponemon Institute SUNNYVALE, Calif., May 16, 2024 /PRNewswire/ -- The majority of global organizations (54%) suffered a software supply chain attack over the past year, and most are unable to keep up with the growing risk landscape. This is according to "The State of Software Supply Chain Security Risk" report, released today by Synopsy ...