On August 21, 2024, Synopsys Inc (SNPS, Financial) released its 8-K filing for the third quarter of fiscal year 2024, showcasing impressive financial results that surpassed analyst estimates. Synopsys, a leading provider of electronic design automation (EDA) software, intellectual property, and software integrity products, reported a quarterly revenue of $1.526 billion, up from $1.354 billion in the same period last year. The company's non-GAAP earnings per share (EPS) stood at $3.43, significantly higher than the analyst estimate of $2.29.
Company Overview
Synopsys Inc (SNPS, Financial) specializes in EDA software that automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm's growing software integrity (SI) business allows customers to continuously manage and test the code base for security and quality. Synopsys' comprehensive portfolio benefits from the convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house chip design. This expansion in EDA customers, alongside the secular digitalization of various end markets, benefits EDA vendors like Synopsys.
Performance Highlights
Synopsys Inc (SNPS, Financial) reported a record quarterly revenue of $1.526 billion for Q3 FY2024, reflecting a year-over-year increase from $1.354 billion. The company's GAAP net income for the quarter was $425.9 million, or $2.73 per diluted share, compared to $335.7 million, or $2.17 per diluted share, in the same period last year. On a non-GAAP basis, net income was $535.5 million, or $3.43 per diluted share, compared to $419.0 million, or $2.70 per diluted share, in Q3 FY2023.
“Our strong third quarter results and expectations for a record year continue to demonstrate the resiliency of Synopsys’ business,” said Sassine Ghazi, president and CEO of Synopsys. “The complexity and pace of technology innovation is accelerating as silicon and systems companies race to capitalize on AI in this era of pervasive intelligence. Synopsys is mission-critical to technology innovation and our customer set is expanding as more companies in more industries define and optimize system performance at the silicon level.”
Financial Achievements
Synopsys Inc (SNPS, Financial) achieved notable financial milestones in Q3 FY2024, setting a new quarterly revenue record and surpassing non-GAAP EPS guidance. The company's CFO, Shelagh Glaser, highlighted the strong momentum across the business, attributing it to leadership products and relentless execution. For the full year, Synopsys expects to achieve revenue growth of approximately 15% and non-GAAP EPS growth of approximately 24%, while expanding non-GAAP operating margin by two points.
Key Financial Metrics
| Metric | Q3 FY2024 | Q3 FY2023 |
|---|---|---|
| Revenue | $1.526 billion | $1.354 billion |
| GAAP Net Income | $425.9 million | $335.7 million |
| GAAP EPS | $2.73 | $2.17 |
| Non-GAAP Net Income | $535.5 million | $419.0 million |
| Non-GAAP EPS | $3.43 | $2.70 |
Analysis and Future Outlook
Synopsys Inc (SNPS, Financial) continues to demonstrate robust financial performance, driven by its leadership in EDA software and expanding customer base. The company's ability to exceed revenue and EPS estimates underscores its resilience and strategic positioning in the technology innovation landscape. As Synopsys navigates the complexities of technology advancements and market demands, its focus on delivering mission-critical solutions positions it well for sustained growth.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Synopsys Inc for further details.
