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Synopsys Achieves Record-Breaking Financial Results for FY 2024

Sunnyvale, California — Synopsys, Inc. (Nasdaq: SNPS) recently unveiled its financial results for the fourth quarter ending October 31, 2024, and the fiscal year 2024. The company achieved record quarterly revenues of $1.636 billion, marking an 11% increase compared to the previous year. This revenue performance surpassed the midpoint of Synopsys' initial guidance, setting a strong foundation for future activities.

In addition, the company declared quarterly GAAP earnings of $1.79 per diluted share and non-GAAP earnings of $3.40 per diluted share, indicating a 13% increase year-over-year. For the full fiscal year 2024, Synopsys reported a total revenue of $6.127 billion, reflecting a 15% year-on-year growth from the $5.318 billion reported in FY 2023. Synopsys also improved its non-GAAP operating margins and achieved a 25% increase in non-GAAP EPS growth.

Strategic Shifts and Future Guidance

Sassine Ghazi, President and CEO of Synopsys, commented on the strong end to what he termed a transformational year. The company not only recorded impressive financial results but also focused on strategic initiatives, including the sale of its Software Integrity business and the impending acquisition of Ansys.

The Ansys acquisition is currently progressing as planned, with expectations for finalization in the first half of 2025, pending regulatory approvals. Synopsys aims to leverage this acquisition to enhance its capabilities in addressing engineering challenges through AI-driven technology integration spanning silicon to systems.

Shelagh Glaser, CFO of Synopsys, reflected on the company’s robust performance in Q4, citing a disciplined approach to operational management. Looking ahead, Synopsys expects to achieve double-digit revenue growth in 2025, although it acknowledged the prevailing uncertainties in the macroeconomic environment.

Financial Highlights

Some key highlights from the financial report include:

• - GAAP net income for Q4 FY 2024 stood at $279.3 million, down from $346.1 million in Q4 FY 2023.
• - Total operating income reached $310.8 million, with operating expenses totaling $950.2 million, resulting in an operating income margin of 19%.
• - The company also reported a strong cash position with $3.896 billion in cash and equivalents, which fuels its ongoing investment and operational capabilities.

Synopsys has divided its operations into two primary segments: Design Automation and Design IP. The Design Automation segment reported strong growth, contributing significantly to the overall revenue. This division includes products related to silicon design, verification, and digital IC design software, which have become essential in the tech industry’s rapidly evolving landscape.

Conclusion

As Synopsys navigates through its strategic transformations, its financial health and strong growth trajectory position it favorably for the future. With the upcoming acquisition of Ansys and a focused approach to research and development, Synopsys is set to tackle the increasing technological complexities and drive further growth in 2025 and beyond. Investors and stakeholders will be keenly watching how these transitions will shape the company's future as it continues to lead in EDA and semiconductor solutions.

For more details, you can visit Synopsys Investor Relations to stay updated on their quarterly earnings calls and financial disclosures.