Synopsys Reports Record Financial Results for Q4 and Fiscal Year 2024

Synopsys, Inc., a leader in electronic design automation and semiconductor IP, has released its financial results for the fourth quarter and fiscal year 2024. The company reported record revenue and significant growth in earnings per share (EPS), reflecting strong operational performance and strategic initiatives.

Financial Highlights

For the fourth quarter of fiscal year 2024, Synopsys achieved a record revenue of $1.636 billion, an 11% increase year-over-year (YoY). The company's GAAP earnings per diluted share (EPS) stood at $1.79, while non-GAAP EPS was $3.40, marking a 13% YoY increase. For the full fiscal year 2024, revenue reached $6.127 billion, up 15% from the previous year, with a 25% growth in non-GAAP EPS.

Business and Operational Highlights

Synopsys' performance was driven by its Design Automation and Design IP segments. The company completed the sale of its Software Integrity business on September 30, 2024, which is now presented as a discontinued operation. The Design Automation segment includes advanced silicon design, verification products, and services, while the Design IP segment encompasses interface, foundation, security, and embedded processor IP.

Strategic Initiatives and Corporate Developments

Synopsys is preparing for the acquisition of Ansys, which is expected to close in the first half of 2025. This acquisition is anticipated to enhance Synopsys' capabilities in addressing engineering challenges from silicon to systems. The company also reported the expiration of the Hart-Scott-Rodino (HSR) Act waiting period and is working with the Federal Trade Commission (FTC) to conclude the investigation and review proposed remedies.

Management's Perspective

Sassine Ghazi, President and CEO of Synopsys, highlighted the company's strong finish to a transformational year, emphasizing the record financial results and strategic moves such as the sale of the Software Integrity business and the pending Ansys acquisition. CFO Shelagh Glaser noted the company's excellent execution and operating discipline, which positions Synopsys well for future growth despite macroeconomic uncertainties.

Future Outlook

Looking ahead, Synopsys expects to deliver double-digit revenue growth in 2025. The company has provided financial targets for the first quarter and full fiscal year 2025, reflecting a change in its fiscal year calendar. The targets assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions.

SEC Filing: SYNOPSYS INC [ SNPS ] - 8-K - Dec. 04, 2024