Financial Data and Key Metrics Changes - The company reported total revenue of $1.36 billion for Q1 2023, with a non-GAAP operating margin of 35.2% and GAAP earnings per share of $1.75, while non-GAAP earnings per share were $2.62, exceeding the high end of the target range [18][34][45] - The company is reiterating its fiscal 2023 revenue growth target of 14% to 15% and raising guidance for non-GAAP EPS growth to 18% to 19% [16][48] Business Line Data and Key Metrics Changes - The Design Automation segment, accounting for approximately 65% of revenue, generated $890 million with an adjusted operating margin of 38.9% [19] - The Design IP segment, making up about 25% of the business, reported revenue of $344 million and an adjusted operating margin of 34.2% [19] - The Software Integrity segment, which constitutes about 10% of revenue, achieved $128 million in revenue with an adjusted operating margin of 12.1% [46] Market Data and Key Metrics Changes - The company noted strong demand in high-performance computing, automotive, and mobile markets, driven by the trend of Smart Everything and increasing complexity in chip design [14][15] - The company has seen robust chip and system design activity despite lower semiconductor industry revenue growth, with a non-cancelable backlog of $6.9 billion [18] Company Strategy and Development Direction - The company is focusing on expanding its segment reporting to align with business management, now categorizing operations into Design Automation, Design IP, and Software Integrity [4][19] - The company is leveraging its leadership in design automation and machine learning to drive innovation and efficiency in chip design processes [10][11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business, citing ongoing design activity and customer investments in chips and systems despite macroeconomic challenges [43][48] - The company anticipates continued growth in the semiconductor industry, driven by the need for more sophisticated solutions and the adoption of advanced technologies [9][60] Other Important Information - The company generated $115 million in operating cash flow and used $306 million for stock buybacks, ending the quarter with $1.3 billion in cash and short-term investments [20] - The company is committed to improving non-GAAP operating margins by more than 100 basis points for the fiscal year [47][78] Q&A Session All Questions and Answers Question: How does the adoption of DSO.ai change customer relationships and project wallet share? - Management noted that the adoption of DSO.ai has led to faster engagements and significant production designs, indicating a positive shift in customer relationships and project wallet share [24][25] Question: What are the levers for improvement in Design Automation and Design IP margins? - Management highlighted that improvements are driven by scaling operations and enhancing processes, with a fertile horizon for IP due to increasing complexity in chip design [55][56] Question: Is the trend towards AI leading to more custom chip designs? - Management agreed that the race for innovation is on, with companies realizing the need for better algorithms and chips, indicating a positive outlook for custom chip designs [59][60] Question: What is the outlook for the second half of fiscal year 2023? - Management indicated that the second half is expected to be stronger, supported by backlog and design activity, despite some lumpiness in the business [87] Question: How is the adoption of silicon lifecycle management progressing? - Management reported strong growth potential in silicon lifecycle management, emphasizing its relevance across various industries [90] Question: What is the training time for engineers using DSO.ai? - Management stated that while there is a learning curve, the tool is designed to integrate well with existing workflows, facilitating adoption [122]

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 ...

Financial Performance - Revenues for the third quarter of fiscal 2022 were $1,247.8 million, an increase of $190.6 million or approximately 18% compared to the same period in fiscal 2021, driven by growth across all product groups and geographies [142]. - Total cost of revenue and operating expenses increased to $1,013.8 million, up $158.6 million or 19%, primarily due to a $112.4 million rise in employee-related costs from headcount increases through organic growth and acquisitions [144]. - Operating income rose to $233.9 million, an increase of $32.0 million or 16%, as revenue growth outpaced the growth of costs and expenses [144]. - Total revenue for the three months ended July 31, 2022, was $1,247.8 million, an increase of $190.7 million or 18% compared to the same period in 2021 [147]. - Semiconductor & System Design Segment revenue for the nine months ended July 31, 2022, was $3,458.5 million, reflecting a $690.5 million increase or 25% year-over-year [147]. - Time-Based Products revenue for the three months ended July 31, 2022, was $754.3 million, up $88.7 million or 13% from the previous year, accounting for 60% of total revenue [151]. - Upfront Products revenue for the nine months ended July 31, 2022, was $973.5 million, a significant increase of $386.7 million or 66% compared to the same period in 2021 [152]. - Maintenance and Service revenue for the three months ended July 31, 2022, totaled $224.9 million, an increase of $36.6 million or 19% year-over-year [154]. Expenses - Total cost of revenue for the three months ended July 31, 2022, was $271.2 million, representing a $66.1 million increase or 32% compared to the same period in 2021 [156]. - Research and Development expenses for the three months ended July 31, 2022, were $444.8 million, an increase of $73.7 million or 20% year-over-year [162]. - Sales and Marketing expenses for the three months ended July 31, 2022, were $199.2 million, reflecting a $27.8 million increase or 16% compared to the same period in 2021 [165]. - General and administrative expenses for the three months ended July 31, 2022 increased by $7.7 million (9%) to $91.5 million compared to $83.8 million in the same period of 2021 [168]. - For the nine months ended July 31, 2022, general and administrative expenses rose by $12.4 million (5%) to $246.4 million from $234.0 million in the prior year [169]. Segment Performance - The Semiconductor & System Design segment includes advanced silicon design, verification products, and semiconductor IP portfolio, serving primarily semiconductor and electronics industries [135]. - The Software Integrity segment provides a broad portfolio of products and services to manage software risks across the application lifecycle, including security and quality testing products [136]. - Adjusted operating income for the Semiconductor & System Design Segment increased by $52.1 million (16%) to $380.8 million for the three months ended July 31, 2022 [177]. - Adjusted operating income for the Software Integrity Segment rose by $2.6 million (30%) to $11.3 million for the three months ended July 31, 2022 [179]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended July 31, 2022 was $1,345.4 million, an increase of $223.3 million compared to $1,122.1 million in the same period of 2021 [187]. - Cash used in investing activities increased to $531.3 million for the nine months ended July 31, 2022, up by $145.4 million from $385.9 million in the prior year [187]. - Cash used in financing activities rose to $825.2 million for the nine months ended July 31, 2022, an increase of $235.8 million compared to $589.4 million in the same period of 2021 [187]. - As of July 31, 2022, the company held $1,531.2 million in cash, cash equivalents, and short-term investments [182]. - The company expects existing cash and liquidity sources to be sufficient to meet cash requirements and capital return programs over the next 12 months [184]. - As of July 31, 2022, $242.7 million remained available for future stock repurchases under the Program [196]. Market and Economic Conditions - The company has not observed material changes in customer design activity or significant requests for payment delays due to COVID-19 [132]. - The ongoing conflict between Russia and Ukraine has led to the suspension of business operations in Russia, which has not materially impacted the company's financial condition [139]. - The company is actively monitoring the effects of the COVID-19 pandemic, global semiconductor shortage, and increasing inflation on its business operations [133]. - The company's exposure to market risk has not changed materially since October 31, 2021, with ongoing assessments related to interest rates and foreign currency rates [200]. Growth Strategy - The company has consistently grown revenue since 2005, with revenue recognition for software licenses typically occurring over an arrangement period of approximately three years [129]. - The growth strategy focuses on maintaining leadership in EDA products, expanding IP offerings, and driving growth in the software security and quality market [130]. - Contracted but unsatisfied performance obligations as of July 31, 2022, were $7.1 billion, indicating strong future revenue potential [148]. Stock Repurchase Program - The company has a stock repurchase program authorized for up to $1.0 billion, with $200.0 million repurchased under an accelerated stock repurchase agreement in May 2022 [194]. - The IR Act imposes a 1% excise tax on stock repurchases made after December 31, 2022, but the company does not expect a material impact on its consolidated financial statements [197].

Synopsys, Inc. (NASDAQ:SNPS) Q3 2022 Results Conference Call August 17, 2022 5:00 PM ET Company Participants Lisa Ewbank - VP, IR Aart de Geus - Chairman and CEO Trac Pham - CFO Conference Call Participants Joe Vruwink - Baird Gary Mobley - Wells Fargo Securities Gal Munda - Wolfe Research Harlan Sur - JPMorgan Charles Shi - Needham & Company Jason Celino - KeyBanc Jay Vleeschhouwer - Griffin Sachin Jain - Bank of America Blair Abernethy - Rosenblatt Operator Ladies and gentlemen, welcome to the Synopsys Ea ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate Overview | | | | | | | | | | | MAY 2022 for Investors | | | | | | | | | | | | | | | | | | | | | F o r w a r d - L o o k i n g S t a t e m e n t s This presentation contains forward-looking statements, including, but not limited to, statements regarding Synopsys' short-term ...

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, 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 ...

Synopsys, Inc. (NASDAQ:SNPS) Q2 2022 Results Conference Call May 18, 2022 5:00 PM ET Company Participants Lisa Ewbank - VP, IR Aart de Geus - Chairman and CEO Trac Pham - CFO Conference Call Participants Gary Mobley - Wells Fargo Securities Jason Celino - KeyBanc Ruben Roy - WestPark Capital Charles Shi - Needham & Company Joe Vruwink - Baird Jay Vleeschhouwer - Griffin Securities Vivek Arya - Bank of America Securities Pradeep Ramani - UBS Operator Ladies and gentlemen, thank you for standing by, and welco ...

SYNOPSYS® Silicon to Software Corporate Overview for Investors FEBRUARY 2022 F o r w a r d - L o o k i n g S t a t e m e n t s This presentation contains forward-looking statements including, but not limited to, statements regarding Synopsys' short-term and long-term financial targets, expectations and objectives; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry gro ...

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, 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 ...

Synopsys, Inc. (NASDAQ:SNPS) Q1 2022 Earnings Conference Call February 16, 2022 5:00 PM ET Company Participants Lisa Ewbank - VP of IR Aart de Geus - Co-CEO & Chairman Trac Pham - CFO Conference Call Participants Joe Vruwink - Baird Jackson Ader - JPMorgan Gary Mobley - Wells Fargo Securities Jay Vleeschhouwer - Griffin Securities Jason Celino - KeyBanc Capital Markets Pradeep Ramani - UBS Charles Shi - Needham & Company Operator Ladies and gentlemen, thank you for standing by, and welcome to the Synops ...