Cadence Q4 2024 Earnings Report

Cadence reported strong revenue growth and record backlog in Q4 2024.

Key Takeaways

Cadence achieved significant revenue growth of 26.89% YoY, with net income increasing by 5.04%. The company recorded a historic backlog of $6.8 billion and maintained strong profitability, with a non-GAAP operating margin of 46.0%.

Revenue grew 26.89% YoY to $1.356 billion.

Record backlog of $6.8 billion, reflecting strong demand.

Non-GAAP EPS increased 36.23% YoY to $1.88.

System Design & Analysis segment grew over 40% YoY.

Total Revenue

$1.36B

Previous year: $1.07B

+26.9%

EPS

$1.88

Previous year: $1.38

+36.2%

Remaining Performance Obligations

$3.4B

IP Business Growth

28%

Previous year: 13%

+115.4%

System Design & Analysis Growth

40%

Previous year: 12%

+233.3%

Cash and Equivalents

$2.64B

Previous year: $1.01B

+162.3%

Cadence Revenue

Cadence EPS

Cadence Revenue by Segment

Cadence Revenue by Geographic Location

Forward Guidance

Cadence expects continued revenue growth in 2025, supported by strong demand and AI-driven innovations.

Positive Outlook

Projected revenue growth to $5.14B - $5.22B.
Non-GAAP EPS expected to rise to $6.65 - $6.75.
AI-driven optimization products gaining traction.
Expansion in Aerospace & Defense and Automotive sectors.
Strong demand for Cadence's hardware platforms.

Challenges Ahead

Potential risks from economic and geopolitical uncertainties.
Impact of foreign exchange fluctuations on revenue.
Increasing competition in the EDA market.
Higher costs related to stock-based compensation.
Potential regulatory and tax law changes affecting profitability.