Financial Performance - Record quarterly revenue of $1.636 billion, up approximately 11% year over year, exceeding the mid-point of guidance[4] - Quarterly non-GAAP EPS of $3.40, up approximately 13% year over year, exceeding guidance; full-year 2024 non-GAAP EPS growth of approximately 25%[5] - Full-year 2024 revenue reached $6.127 billion, an increase of approximately 15% from $5.318 billion in fiscal year 2023[6] - GAAP net income for Q4 2024 was $279.3 million, or $1.79 per diluted share, compared to $346.1 million, or $2.23 per diluted share, for Q4 2023[10] - Non-GAAP net income for Q4 2024 was $529.9 million, or $3.40 per diluted share, compared to $464.1 million, or $3.00 per diluted share, for Q4 2023[11] - For the fiscal year 2024, GAAP net income per diluted share was $9.25, compared to $7.91 in fiscal year 2023, with non-GAAP net income per diluted share rising to $13.20 from $10.54[27] - Net income for the twelve months ended 2024 was $2,235,810, compared to $1,218,125 for the same period in 2023, representing an increase of 83.4%[42] Future Outlook - Synopsys expects to deliver double-digit revenue growth in 2025, despite macro uncertainties[8] - Financial targets for Q1 2025 include revenue range of $1.435 billion to $1.465 billion and full fiscal year 2025 revenue range of $6.745 billion to $6.805 billion[16] - The company targets GAAP earnings per diluted share for Q1 2025 in the range of $1.81 to $1.95, with non-GAAP earnings per diluted share targeted between $2.77 and $2.82[31] - For the full fiscal year 2025, the company anticipates GAAP earnings per diluted share to be between $10.42 and $10.63, with non-GAAP earnings per diluted share expected to range from $14.88 to $14.96[33] Acquisitions and Divestitures - The acquisition of Ansys is expected to close in the first half of 2025, pending regulatory approvals[8] - The company completed the sale of its Software Integrity business on September 30, 2024, presenting it as a discontinued operation[7] - The company is in the process of acquiring ANSYS, Inc., which is expected to impact future financial results positively[34] Tax and Expenses - Non-GAAP tax rate for fiscal year 2025 is expected to be 16%[16] - The effective GAAP tax rate for the twelve months ended October 31, 2024, was 6.6%, while the non-GAAP effective tax rate was 15.0%[28] - Target GAAP expenses for Q1 2025 are projected to be between $1,142,000 and $1,162,000, while non-GAAP expenses are expected to be between $945,000 and $955,000[31] Revenue Breakdown - Total revenue for the three months ended October 31, 2024, was $1,635,986,000, an increase of 11.5% compared to $1,467,383,000 for the same period in 2023[37] - Revenue from the Design Automation segment for the three months ended October 31, 2024, was $1,118.2 million, up from $953.7 million in 2023, reflecting a growth of 17.3%[46] - The Design IP segment generated revenue of $517.8 million for the three months ended October 31, 2024, slightly up from $513.7 million in 2023, indicating a growth of 0.8%[46] - Total products revenue for the twelve months ended October 31, 2024, reached $5,026,521,000, up 13.9% from $4,416,381,000 in the previous year[37] Cash Flow and Assets - Cash and cash equivalents rose to $3,896,532,000 as of October 31, 2024, compared to $1,433,966,000 in the previous year, showcasing improved cash flow management[40] - Total current assets increased to $6,469,666,000 as of October 31, 2024, from $3,430,624,000 a year earlier, indicating robust liquidity[40] - Total assets increased to $13,073,561,000 as of October 31, 2024, from $10,333,131,000 in the previous year, indicating growth in the company's asset base[40] - The company ended the period with cash, cash equivalents, and restricted cash of $3,898,729, significantly up from $1,441,187 at the end of 2023[42] Operational Performance - Research and development expenses for the three months ended October 31, 2024, were $554,818,000, an increase of 18.9% from $465,815,000 in the prior year[37] - Gross margin for the three months ended October 31, 2024, was $1,260,963,000, compared to $1,181,202,000 for the same period in 2023, reflecting a strong operational performance[37] - Total adjusted segment operating income for the twelve months ended October 31, 2024, was $2,362.1 million, compared to $1,928.0 million in 2023, an increase of 22.5%[48] - The adjusted operating margin for the Design Automation segment improved to 38.7% for the twelve months ended October 31, 2024, compared to 37.5% in 2023[46] Risks and Challenges - The anticipated impact of macroeconomic conditions and geopolitical uncertainties on financial results was highlighted as a risk factor[35] - Stock-based compensation for the fiscal year 2024 was $4.21 per diluted share, up from $3.30 in the previous year[27] Non-GAAP Measures - Stock-based compensation expenses are excluded from non-GAAP financial measures as they do not require cash settlement and may not reflect actual value realized[56] - Acquisition-related expenses, including compensation, professional fees, and integration costs, are excluded from core operations for consistent comparison across periods[56] - Restructuring charges, including severance and facility closures, are not considered part of core operations and are excluded from profitability assessments[58] - Gains and losses from the sale of strategic investments in privately held companies are excluded as they do not reflect core business results[59] - Changes in the fair value of non-qualified deferred compensation plans are excluded from core profitability assessments[59] - The company adopts a non-GAAP tax rate of 16% for fiscal year 2025 to provide consistency across reporting periods[60]

Results Summary1  Record quarterly revenue of $1.636 billion, up approximately 11% year over year (YoY), exceeding the mid-point of guidance. Quarterly GAAP earnings per diluted share (EPS) of $1.79; non-GAAP EPS of $3.40, up approximately 13% YoY, exceeding guidance. Achieved record full-year 2024 revenue of $6.127 billion, up approximately 15% YoY, while improving non-GAAP operating margin and delivering approximately 25% non-GAAP EPS growth. Expecting to deliver double digit revenue growth in 2025 while ...

Synopsys (SNPS) is scheduled to report fourth-quarter fiscal 2024 results on Dec. 4, after market close.Synopsys expects non-GAAP earnings per share between $3.27 and $3.32. The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pinned at $3.29 per share, which indicates a year-over-year increase of 3.8%.The company anticipates revenues between $1.614 billion and $1.644 billion for the fiscal fourth quarter. The Zacks Consensus Estimate is pegged at $1.63 billion, which suggests growth of 2.1% f ...

Wall Street analysts forecast that Synopsys (SNPS) will report quarterly earnings of $3.29 per share in its upcoming release, pointing to a year-over-year increase of 3.8%. It is anticipated that revenues will amount to $1.63 billion, exhibiting an increase of 2.1% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timefram ...

Core Insights - Synopsys, Inc. has purchased 90 MW of solar energy from the Millers Branch Solar Facility in Texas, facilitated by the Net Zero Consortium for Buyers (NZCB) [1][2] - This purchase is part of Synopsys' strategy to meet its emissions reduction targets approved by the Science Based Targets initiative (SBTi) [2][4] - The Millers Branch project is expected to support the increasing energy demands in the ERCOT region, particularly due to the rise of large-scale computing facilities [3][4] Group 1: Synopsys' Renewable Energy Strategy - Synopsys aims for a 55% reduction in scope 1 and 2 greenhouse gas emissions by 2032, with investments in renewable energy projects like Millers Branch Solar [4] - The company previously engaged in a 15 MW wind offtake through NZCB in 2021, showcasing a commitment to renewable energy procurement [2][4] - The NZCB platform has facilitated aggregated virtual power purchase agreements (VPPAs) for renewable energy credits, contributing to SR Inc's goal of achieving 1 GW of new renewable energy capacity by year-end [4] Group 2: Industry Implications - The procurement by Synopsys sets a precedent for other technology companies to follow, especially as electricity demands rise due to AI innovations [3] - The Millers Branch facility is expected to be operational in the fourth quarter of 2026, contributing to the shift in power generation in Texas [3] - SR Inc's NZCB aims to create favorable renewable energy transactions for corporate buyers, promoting a profitable path to Net Zero emissions [6]

Core Insights - Synopsys Inc. has a forward 12-month price-to-earnings (P/E) ratio of 36.76, which is significantly higher than the Zacks Computer - Software industry average of 33.22, raising concerns about the justification of its premium valuation in the current market [1][3]. Year-to-Date Performance - Year-to-date, Synopsys shares have only increased by 6.5%, underperforming compared to the Technology Select Sector SPDR Fund (XLK) which is up 21.8% and the S&P 500 which has gained 25.9% [3][4]. - Compared to competitors, Cadence Design Systems and Arm Holdings have seen significant stock price increases of 81.2% and 11.1% respectively, indicating Synopsys' relative weakness in the market [4]. Revenue Growth Concerns - In the third quarter of fiscal 2024, Synopsys' core Design Automation segment reported a revenue increase of only 6% year-over-year to $1.06 billion, a significant slowdown from previous years' double-digit growth [5][6]. - The slowdown in this segment raises concerns about Synopsys' ability to maintain its competitive edge, particularly as semiconductor companies reduce R&D spending amid economic uncertainties [6]. Competitive Pressures - Synopsys faces rising competitive pressure from Cadence Design Systems, which is expanding its product portfolio and focusing on AI-driven and high-performance computing applications [8]. - Arm Holdings poses a significant threat with its strong position in chip architecture licensing, potentially limiting Synopsys' market penetration and revenue opportunities [9]. - The combined competitive pressures from Cadence and Arm necessitate increased R&D spending and strategic partnerships for Synopsys, which could lead to higher operational costs and narrower profit margins [10]. Conclusion - Given the slowing growth in its core segment, increasing competitive pressures, and an above-average P/E ratio, the outlook for Synopsys appears uncertain, making it difficult to justify holding the stock at this time [11].

The Platform Helps Meet PPA Goals and Accelerate Time-to-MarketSEOUL, South Korea, Nov. 11, 2024 /PRNewswire/ -- SEMIFIVE, a leading design solution provider and pioneer of platform-based custom silicon solutions, today announced their collaboration with Synopsys to develop a cutting-edge high-performance computing (HPC) platform integrating SEMIFIVE's CPU chiplet with a third-party I/O chiplet into a unified package. SEMIFIVE's HPC chiplet platform will offer notable advantages over traditional chiplet pla ...

SUNNYVALE, Calif., Oct. 29, 2024 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced it will report results for the fourth quarter and fiscal year 2024 on Wednesday, December 4, 2024, after the market close. The company will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to review its financial results and business outlook. Synopsys headquarters in Sunnyvale, Calif. (PRNewsfoto/Synopsys, Inc.) Financial and other statistical information to be discussed on this confe ...

In the latest market close, Synopsys (SNPS) reached $501.58, with a +1.28% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.56%.Coming into today, shares of the maker of software used to test and develop chips had lost 3.91% in the past month. In that same time, the Computer and Technology sector gained 1.65%, while the S&P 500 gained 1.39%.Analysts and ...

Synopsys (SNPS) ended the recent trading session at $495.25, demonstrating a +0.37% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow saw a downswing of 0.33%, while the tech-heavy Nasdaq appreciated by 0.76%.Shares of the maker of software used to test and develop chips witnessed a loss of 3.32% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47 ...