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Oct 31, 2024

Synopsys Q4 2024 Earnings Report

Synopsys' Q4 2024 financial results were posted, featuring record revenue and exceeding EPS guidance.

Key Takeaways

Synopsys reported record fourth-quarter revenue of $1.636 billion, up 11% year-over-year, and GAAP EPS of $1.79 with non-GAAP EPS of $3.40, which is up approximately 13% year over year. The company achieved record full-year revenue of $6.127 billion, up approximately 15% year over year. They expect double-digit revenue growth in 2025 and are preparing for the Ansys acquisition close in the first half of 2025.

Record quarterly revenue of $1.636 billion, up approximately 11% year over year.

GAAP earnings per diluted share (EPS) of $1.79; non-GAAP EPS of $3.40, up approximately 13% year over year.

Record full-year 2024 revenue of $6.127 billion, up approximately 15% year over year.

Expecting to deliver double-digit revenue growth in 2025 while preparing for Ansys acquisition close, expected in the first half of 2025.

Total Revenue
$1.64B
Previous year: $1.6B
+2.3%
EPS
$3.4
Previous year: $3.17
+7.3%
Gross Profit
$1.33B
Previous year: $1.29B
+3.2%
Cash and Equivalents
$4.05B
Previous year: $1.59B
+154.7%
Free Cash Flow
$558M
Previous year: $346M
+61.3%
Total Assets
$13.1B
Previous year: $10.3B
+26.5%

Synopsys

Synopsys

Forward Guidance

Synopsys provided its consolidated financial targets for the first quarter and full fiscal year 2025, expecting double-digit revenue growth in 2025.

Positive Outlook

  • Revenue between $1.435 billion and $1.465 billion for Q1 2025.
  • GAAP EPS between $1.81 and $1.95 for Q1 2025.
  • Non-GAAP EPS between $2.77 and $2.82 for Q1 2025.
  • Revenue between $6.745 billion and $6.805 billion for FY 2025.
  • GAAP EPS between $10.42 and $10.63 for FY 2025.

Challenges Ahead

  • GAAP Expenses between $1.142 billion and $1.162 billion for Q1 2025.
  • Non-GAAP Expenses between $945 million and $955 million for Q1 2025.
  • GAAP Expenses between $4.926 billion and $4.983 billion for FY 2025.
  • Non-GAAP Expenses between $4.045 billion and $4.085 billion for FY 2025.
  • Free Cash Flow ~$1.6 billion