Synopsys (SNPS) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 revenue of $6.13 billion, up 15% year-over-year, with non-GAAP EPS rising 25% to $13.20 and GAAP EPS at $9.25.

• Completed the sale of the Software Integrity business and announced the pending acquisition of Ansys, expected to close in the first half of 2025.

• Maintained a non-cancelable backlog of $8.1 billion, reflecting strong business resilience.

• The company is advancing AI-powered EDA solutions and holds a leading position in the EDA & IP market.

Financial highlights

• FY2024 revenue reached $6.13 billion, up 15.2% year-over-year, with double-digit growth across all products and geographies.

• Non-GAAP operating margin was 38.5% in FY2024; GAAP operating margin improved to 22.1%.

• Non-GAAP EPS was $13.20, up 25% year-over-year; FY2025 guidance is $14.88–$14.96.

• Operating cash flow was $1.407 billion; free cash flow was $1.285 billion.

• Ended FY2024 with $4.05 billion in cash and short-term investments and $16 million in total debt.

Outlook and guidance

• FY2025 revenue expected between $6.745 billion and $6.805 billion, representing 10.1%-11.1% growth, with non-GAAP operating margin targeted at ~40%.

• Non-GAAP EPS guidance for FY2025 is $14.88–$14.96, up approximately 13%.

• Cash flow from operations projected at $1.8 billion; free cash flow at $1.6 billion.

• Q1 FY2025 revenue guidance: $1.435–$1.465 billion; non-GAAP EPS: $2.77–$2.82.

• Long-term objectives include double-digit revenue growth and non-GAAP EPS growth in the high teens.