Financial Data and Key Metrics - Q4 2023 revenue reached a record high of $1.599 billion, capping a record year with total revenue of $5.84 billion, up 15% YoY [96] - Non-GAAP operating margin improved to 35.1%, and non-GAAP EPS increased by 26% YoY [96] - Operating cash flow for the year was $1.7 billion, with cash and short-term investments totaling $1.59 billion and total debt of $18 million [24] - Backlog increased by $1.5 billion to $8.6 billion, driven by strong orders [96] - For FY 2024, revenue is expected to grow 12.4% to 13.5%, with non-GAAP operating margin expanding by approximately 2 percentage points and non-GAAP EPS growth of 19% to 20% [7] Segment Performance Design Automation - Revenue for the Design Automation segment was $3.78 billion, up 14% YoY, driven by strength in EDA software and hardware [8] - Adjusted operating margin for Design Automation was 38.1% [8] - Synopsys.ai received the World Electronics Achievement Award for EDA Software of the Year, with strong customer adoption across the design flow [2] - Major wins in verification and test, including a 10x faster turnaround time in verification and over 50% pattern reduction in test [2] Design IP - Revenue for the Design IP segment was $1.54 billion, up 17% YoY, driven by broad-based strength [8] - Adjusted operating margin for Design IP was 34.5% [8] - Key wins in automotive and multi-die ecosystems, including a marquee customer displacing competition in a multi-generation agreement [4] - Synopsys is the advanced node IP vendor of choice for all three leading-edge foundries [17] Software Integrity - Revenue for the Software Integrity segment was $525 million, up 13% YoY, with an adjusted operating margin of 14.5% [8] - Polaris software integrity platform saw over 50% YoY growth in Q4 [21] - The company is exploring strategic alternatives for the Software Integrity business to prioritize higher-growth opportunities in Design Automation and Design IP [1] Market and Geographic Performance - China is expected to grow in 2024 but at a slower rate than in 2023 due to export restrictions and macroeconomic challenges [15] - The company expects solid growth across geographies in 2024, with a balanced view of headwinds and tailwinds [107] Strategic Direction and Industry Competition - Synopsys is increasing investments in AI-driven capabilities, including Synopsys.ai Copilot, a breakthrough Generative AI capability for chip design [16] - The company is focusing on multi-die ecosystems and advanced node IP, with significant wins in 3D IC design and interoperability demonstrations [3][20] - Synopsys is aligning its portfolio investments with the greatest return potential, prioritizing Design Automation and Design IP over Software Integrity [1][76] Management Commentary on Operating Environment and Future Outlook - The company expects a challenging near-term growth environment in China but remains optimistic about long-term opportunities [102] - AI is seen as a key driver of future growth, with Synopsys increasing investments to accelerate its AI roadmap [16][103] - The company is confident in its business heading into 2024, driven by strong execution and leadership positions across its segments [22] Other Important Information - Synopsys will host its Investor Day on March 20th, 2024, in conjunction with the Synopsys Users Group event in Santa Clara [10] - The company completed $1.2 billion in share buybacks during the year, representing 80% of free cash flow [24] Q&A Session Summary Question: Backlog and Growth Outlook - The $8.6 billion backlog is broad-based, with strong momentum in Design Automation and Design IP, but growth in China is expected to slow, and Software Integrity is forecasted to grow at a single-digit rate [71][111] - The company is balancing headwinds (China, enterprise software spending) and tailwinds (AI-driven demand) in its 2024 guidance [107] Question: AI and Product Development - Synopsys is seeing strong adoption of AI capabilities, with a 20% contract-over-contract growth in EDA agreements that include AI features [43][63] - The company is offering AI capabilities through subscription licenses, with early adopters using it on select projects [60] Question: Hardware Verification and IP Business - Hardware-assisted verification is expected to continue its strong performance in 2024, following a record year in 2023 [50][51] - The IP business is expected to grow in line with the overall revenue profile, driven by increasing chip design complexity and protocol transitions [52] Question: Generative AI and Monetization - Synopsys is in the early stages of monetizing Generative AI, with initial results showing significant productivity improvements for customers [55][60] - The company is offering AI capabilities through flexible subscription and consumption-based models [60] Question: Cash Flow and Tax Impact - Cash flow from operations is expected to be impacted by $600 million in cash taxes, with $200 million paid in 2023 and $400 million due in 2024 [64][81] - The company expects cash tax growth to align with operating income growth over the long term [81] Question: Strategic Alternatives for Software Integrity - Synopsys is exploring strategic alternatives for its Software Integrity business to focus on higher-growth opportunities in Design Automation and Design IP [76]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JULY 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction of ...

Synopsys, Inc. (NASDAQ:SNPS) Q3 2023 Earnings Conference Call August 16, 2023 5:00 PM ET Company Participants Trey Campbell - SVP & IR Aart de Geus - Chairman & CEO Sassine Ghazi - President & COO Shelagh Glaser - CFO Conference Call Participants Jason Celino - KeyBanc Capital Markets Gary Mobley - Wells Fargo Joshua Tilton - Wolfe Research Joseph Vruwink - Robert W. Baird Vivek Arya - BofA Securities Ruben Roy - Stifel Jay Vleeschhouwer - Griffin Securities Charles Shi - Needham & Company Gianmarco Conti - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - GAAP earnings per share was $1.76, while non-GAAP earnings per share was $2.54, exceeding the high end of the target range [26] - Revenue for the quarter reached $1.395 billion, above the high end of guidance, with non-GAAP operating margin at 33.3% [49][65] - Operating cash flow generated was $703 million, with a backlog increase to $7.3 billion [26][66] - Full year revenue guidance raised to between $5.79 billion and $5.83 billion, with non-GAAP earnings per share growth expectation increased to 21% to 22% [40][67] Business Line Data and Key Metrics Changes - Design Automation segment revenue was $928 million, up 13%, driven by strength in EDA software and hardware, with an adjusted operating margin of 38.8% [42] - Design IP segment revenue was $335 million, down 4% due to a tough comparison to an exceptionally strong Q2 '22 [42] - Software Integrity segment revenue was $132 million, up 17%, with an adjusted operating margin of 13.9% [90] Market Data and Key Metrics Changes - Demand for Smart Everything is driving significant long-term growth for semiconductors, with a focus on performance-per-watt and security becoming mandatory [29][40] - The market is experiencing weaker demand for semiconductors overall, particularly in consumer markets, but R&D investments in new chip designs remain a priority [50][67] - The adoption of AI in chip design is accelerating, with over 200 AI-driven commercial tapeouts reported [31][34] Company Strategy and Development Direction - The company is embedding AI across its product offerings, with significant advancements in design flow automation and a focus on multi-die systems [30][57] - Collaborations with TSMC and Ansys aim to deliver advanced EDA solutions, enhancing the company's position in the semiconductor design market [35][36] - The vision of Smart Everything is expected to create substantial opportunities for both the company and its customers [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, citing strong design activity and a healthy industry despite macroeconomic challenges [50][67] - The company anticipates a strong second half of the year, driven by increased renewals and IP consumption [73][96] - The management highlighted the importance of AI in enhancing design productivity and addressing the shortage of top designers [72][84] Other Important Information - The company has doubled its customer base every quarter this year, with the SaaS model accounting for 70% of users [34] - The Software Integrity segment is expected to grow by 15% to 20% in revenue with expanding margins [90] - The company is committed to maximizing its positive impact and driving change in the industry through its technology [62] Q&A Session All Questions and Answers Question: What is the outlook for renewals and growth into next year? - Management confirmed strong investment in chip design during downturns to prepare for future demand, emphasizing the importance of productivity enhancements through AI [71] Question: Are larger software renewals expected in the second half? - Management noted that while renewals vary across the industry, there is a healthy outlook for the coming decade, driven by software demand [75][76] Question: What is driving the expansion of operating margins this year? - The expansion is attributed to rigorous financial control and the ability to scale effectively in response to opportunities [146] Question: How is AI transforming the core EDA market? - AI is enhancing automation and efficiency in chip design, leading to significant productivity improvements and potentially encouraging more companies to pursue custom semiconductor designs [138][162]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction ...

Synopsys, Inc. (NASDAQ:SNPS) Q1 2023 Earnings Conference Call February 15, 2023 5:00 PM ET Company Participants Phil Lee - Director, IR Aart de Geus - Chairman & CEO Shelagh Glaser - CFO Conference Call Participants Joe Vruwink - Robert W. Baird Jason Celino - KeyBanc Capital Markets Charles Shi - Needham & Company Gary Mobley - Wells Fargo Jay Vleeschhouwer - Griffin Securities Vivek Arya - Bank of America Merrill Lynch Ruben Roy - Stifel Giani Conti - Deutsche Bank Blair Abernethy - Rosenblatt Securit ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisd ...

Synopsys, Inc. (NASDAQ:SNPS) Q4 2022 Earnings Conference Call November 30, 2022 5:00 PM ET Company Participants Lisa Ewbank - Vice President, Investor Relations Aart de Geus - Chairman & Chief Executive Officer Trac Pham - Chief Financial Officer Conference Call Participants Joe Vruwink - Baird Gal Munda - Wolfe Research Jason Celino - KeyBanc Harlan Sur - JPMorgan Charles Shi - Needham & Company Jay Vleeschhouwer - Griffin Securities Ruben Roy - Stifel Nicolaus Operator Ladies and gentlemen, welcome to the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JULY 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction of ...