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Jul 31, 2023

Synopsys Q3 2023 Earnings Report

Synopsys achieved record quarterly revenue and exceeded earnings guidance.

Key Takeaways

Synopsys reported record quarterly revenue of $1.487 billion, a 19% increase year-over-year. GAAP EPS was $2.17, and non-GAAP EPS was $2.88, exceeding the high end of guidance. The company is raising its full-year 2023 revenue, non-GAAP operating margin improvement, and earnings guidance, and is committed to double-digit annual revenue growth.

Record quarterly revenue of $1.487 billion, up 19% year over year.

GAAP earnings per diluted share of $2.17; non-GAAP earnings per diluted share of $2.88, exceeded high end of guidance.

Raising full-year 2023 revenue, non-GAAP operating margin improvement, and earnings guidance.

Committed to long-term model of double-digit annual revenue growth.

Total Revenue
$1.49B
Previous year: $1.25B
+19.2%
EPS
$2.88
Previous year: $2.1
+37.1%
Gross Profit
$1.18B
Previous year: $977M
+20.8%
Cash and Equivalents
$1.69B
Previous year: $1.38B
+21.9%
Free Cash Flow
$514M
Previous year: $404M
+27.3%
Total Assets
$9.92B
Previous year: $9.33B
+6.4%

Synopsys

Synopsys

Synopsys Revenue by Segment

Forward Guidance

Synopsys provided its consolidated financial targets for the fourth quarter and full fiscal year 2023, assuming no further changes to export control restrictions or the current U.S. government “Entity List” restrictions.

Positive Outlook

  • Revenue between $1.567 billion and $1.597 billion for the three months ending October 31, 2023.
  • Revenue between $5.810 billion and $5.840 billion for the fiscal year ending October 31, 2023.
  • GAAP expenses between $1.184 billion and $1.204 billion for the three months ending October 31, 2023.
  • GAAP EPS between $2.17 and $2.28 for the three months ending October 31, 2023.
  • Non-GAAP EPS between $3.01 and $3.06 for the three months ending October 31, 2023.

Challenges Ahead

  • GAAP expenses between $4.544 billion and $4.564 billion for the fiscal year ending October 31, 2023.
  • Non-GAAP expenses between $1.005 billion and $1.015 billion for the three months ending October 31, 2023.
  • Non-GAAP expenses between $3.780 billion and $3.790 billion for the fiscal year ending October 31, 2023.
  • GAAP EPS between $7.85 and $7.96 for the fiscal year ending October 31, 2023.
  • Non-GAAP EPS between $11.04 and $11.09 for the fiscal year ending October 31, 2023.