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Jul 31, 2024

Synopsys Q3 2024 Earnings Report

Synopsys' Q3 2024 financial results were released, revealing record quarterly revenue and non-GAAP EPS exceeding guidance.

Key Takeaways

Synopsys reported a strong third quarter with record revenue of $1.526 billion, up 13% year-over-year. GAAP EPS was $2.73, and non-GAAP EPS was $3.43, exceeding guidance. The company expects record full-year revenue growth of approximately 15%.

Record quarterly revenue of $1.526 billion, up approximately 13% year over year.

GAAP earnings per diluted share of $2.73.

Non-GAAP earnings per diluted share of $3.43, up approximately 27% year over year and exceeding guidance.

Expecting record full-year revenue with growth of approximately 15%.

Total Revenue
$1.53B
Previous year: $1.49B
+2.6%
EPS
$3.43
Previous year: $2.88
+19.1%
Gross Profit
$1.25B
Previous year: $1.18B
+5.9%
Cash and Equivalents
$1.84B
Previous year: $1.69B
+9.1%
Free Cash Flow
$488M
Previous year: $514M
-5.2%
Total Assets
$11.6B
Previous year: $9.92B
+17.4%

Synopsys

Synopsys

Forward Guidance

Synopsys provided financial targets for the fourth quarter and full fiscal year 2024, anticipating continued growth and profitability.

Positive Outlook

  • Expecting record full-year revenue growth of approximately 15%.
  • Expanding non-GAAP operating margin by two points.
  • Fourth quarter revenue is expected to be between $1.614 billion and $1.644 billion.
  • Full fiscal year revenue is expected to be between $6.105 billion and $6.135 billion.
  • Full fiscal year non-GAAP EPS is expected to be between $13.07 and $13.12.

Challenges Ahead

  • Financial targets assume no further changes to export control restrictions or the current U.S. government “Entity List” restrictions.
  • Targets constitute forward-looking statements and are based on current expectations.
  • Macroeconomic conditions and geopolitical uncertainty in the global economy.
  • Uncertainty in the growth of the semiconductor and electronics industries.
  • Potential impact of U.S. and foreign government actions and regulatory changes, including export control restrictions on financial results.