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Jul 31, 2022

Synopsys Q3 2022 Earnings Report

Synopsys' Q3 2022 financial results were released, demonstrating revenue growth and increased earnings per share.

Key Takeaways

Synopsys reported strong Q3 2022 results with revenue reaching $1.248 billion, a notable increase from the previous year. The company's GAAP EPS was $1.43, and non-GAAP EPS was $2.10. Synopsys is also raising its outlook for the year, expecting to cross the $5 billion revenue mark.

Synopsys Q3 revenue reached $1.248 billion, up from $1.057 billion in Q3 2021.

GAAP earnings per diluted share were $1.43, compared to $1.27 in the prior year.

Non-GAAP earnings per diluted share increased to $2.10, up from $1.81 in Q3 2021.

The company is increasing its full-year outlook and expects to exceed $5 billion in revenue for FY22.

Total Revenue
$1.25B
Previous year: $1.06B
+18.0%
EPS
$2.1
Previous year: $1.81
+16.0%
Gross Profit
$977M
Previous year: $852M
+14.6%
Cash and Equivalents
$1.38B
Previous year: $1.39B
-0.1%
Free Cash Flow
$404M
Previous year: $399M
+1.3%
Total Assets
$9.33B
Previous year: $8.49B
+9.9%

Synopsys

Synopsys

Synopsys Revenue by Segment

Forward Guidance

Synopsys provided financial targets for the fourth quarter and full fiscal year 2022, assuming no further changes to U.S. government restrictions.

Positive Outlook

  • Revenue is projected to be between $1.263 billion and $1.293 billion for Q4 2022.
  • Full fiscal year revenue is expected to range from $5.060 billion to $5.090 billion.
  • GAAP EPS is forecasted to be between $1.06 and $1.18 for Q4 2022.
  • The company anticipates full fiscal year GAAP EPS of $6.37 to $6.49.
  • Operating cash flow is targeted at $1.600 billion to $1.650 billion for the full fiscal year.

Challenges Ahead

  • GAAP expenses are projected between $1.076 billion and $1.096 billion for Q4 2022.
  • Full fiscal year GAAP expenses are expected to be between $3.978 billion and $3.998 billion.
  • Non-GAAP expenses are projected between $919 million and $929 million for Q4 2022.
  • Full fiscal year Non-GAAP expenses are expected to be between $3.395 billion and $3.405 billion.
  • The targets are based on current expectations and are subject to risks and uncertainties.