Synopsys(SNPS) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenue for Q1 FY 2025 was $1.455 billion, a decrease of 3.7% compared to $1.511 billion in Q1 FY 2024[3] - Total revenue for the three months ended January 31, 2025, was $1,455,315, a decrease of 3.7% compared to $1,510,989 for the same period in 2024[34] - Total products revenue decreased to $1,196,362, down 4.1% from $1,247,429 year-over-year[34] - Full fiscal year 2025 revenue targets range from $6.745 billion to $6.805 billion[13] - For Q2 FY 2025, revenue is targeted between $1.585 billion and $1.615 billion[13] Net Income and Earnings Per Share - GAAP net income for Q1 FY 2025 was $295.7 million, or $1.89 per diluted share, down from $437.5 million, or $2.82 per diluted share in Q1 FY 2024[7] - Non-GAAP net income for Q1 FY 2025 was $473.2 million, or $3.03 per diluted share, compared to $525.5 million, or $3.38 per diluted share in Q1 FY 2024[8] - Net income attributed to Synopsys for the three months ended January 31, 2025, was $295,683, a decline of 34.2% from $449,112 in the prior year[34] - Net income for the three months ended January 31, 2025, was $297.4 million, a decrease of 33.4% compared to $446.2 million for the same period in 2024[40] - GAAP earnings per diluted share for Q2 FY 2025 are projected to be between $2.21 and $2.33[13] - Non-GAAP earnings per diluted share for Q2 FY 2025 are projected to be between $3.37 and $3.42[13] - GAAP earnings per diluted share attributed to Synopsys is projected to be between $10.09 and $10.31 for the fiscal year ending October 31, 2025[29] - Target non-GAAP earnings per diluted share attributed to Synopsys is expected to be between $14.88 and $14.96 for the same fiscal year[29] Segment Performance - Total revenue for the Design Automation segment was $1,020.2 million, representing 70.1% of total revenue, an increase from 65.2% in the prior year[44] - Adjusted operating income for the Design Automation segment increased to $404.7 million, with an adjusted operating margin of 39.7%, up from 36.5% in the previous year[44] - The Design IP segment generated $435.1 million in revenue, accounting for 29.9% of total revenue, down from 34.8% in the prior year[44] - Total adjusted segment operating income decreased to $531.2 million from $605.2 million year-over-year[45] Cash Flow and Assets - Cash and cash equivalents decreased to $3,653,880 as of January 31, 2025, from $3,896,532 at October 31, 2024[36] - Total current assets decreased to $6,323,616 as of January 31, 2025, compared to $6,469,666 at October 31, 2024[36] - Total liabilities decreased to $3,736,188 as of January 31, 2025, from $4,050,355 at October 31, 2024[36] - Net cash used in operating activities was $(67.5) million, an improvement from $(87.8) million in the same quarter last year[40] - Cash, cash equivalents, and restricted cash from continuing operations at the end of the period totaled $3,657.8 million, compared to $1,116.2 million a year earlier[40] - The company reported a net cash used in investing activities of $(22.0) million, compared to $(54.4) million in the prior year[40] Strategic Initiatives and Guidance - The company reaffirmed its full-year 2025 guidance, expecting double-digit revenue growth[6] - The company completed the sale of its Software Integrity business on September 30, 2024, and results are presented on a continuing operations basis[6] - The company is pursuing the acquisition of ANSYS, Inc., which is expected to impact its long-term financial objectives[30] - The company anticipates potential impacts from macroeconomic conditions, including inflation and geopolitical pressures, on its financial results[31] Other Financial Metrics - Stock-based compensation expenses were $186.5 million, an increase from $165.5 million in the previous year[45] - The company adopted a non-GAAP tax rate of 16% for fiscal year 2025 to provide better consistency across interim reporting periods[59]