Q3 2024 Synopsys Inc Earnings Call Transcript
Key Points
- Synopsys Inc (SNPS) delivered excellent Q3 results, exceeding the midpoint of all guidance targets and setting a quarterly revenue record.
- Revenue was up 13% year over year, at the high end of the guided range.
- Non-GAAP operating margin increased by 3.6 points year over year to 40%.
- Non-GAAP EPS was up 27% year over year and above the guidance range.
- The company continues to see strong momentum across its business segments, supported by multiple secular growth drivers.
- Despite strong performance, the semiconductor industry is coming off a severe downturn, which could impact future growth.
- One of Synopsys Inc (SNPS)'s large leading-edge customers announced significant layoffs, which could affect future bookings and revenue.
- China's revenue was down 8% in Q3, reflecting ongoing macroeconomic challenges and technology restrictions.
- R&D expenses were slightly ahead of expectations, indicating higher costs associated with new product development.
- The company faces challenges in maintaining its growth trajectory in the face of increasing chip complexity and contracting design cycles.
This conference call for the third quarter fiscal year 2024. (Operator Instructions)
As a reminder, today's call is being recorded. At this time, I would like to turn the conference over to Trey Campbell, Senior Vice President, Investor Relations. Please go ahead.
Thank you, and good afternoon, everyone. With us today are Sassine Ghazi, President and CEO of Synopsys; and Shelagh Glaser, CFO.
Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts, targets, and other forward-looking statements regarding the company and its financial results. While these statements represent our best current judgment about future results and performance as of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect. In addition to any risks that we highlight during this call, important factors that may affect our future results are
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