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Dec 31, 2024
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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