Cadence Reports Second Quarter 2024 Financial Results
Cadence Design Systems (CDNS) reported strong Q2 2024 financial results, with revenue of $1.061 billion, up from $977 million in Q2 2023. The company's GAAP operating margin was 28%, while non-GAAP operating margin was 40%. GAAP diluted EPS reached $0.84, and non-GAAP diluted EPS was $1.28. Cadence's quarter-end backlog stood at $6.0 billion, with current remaining performance obligations of $3.1 billion.
The company updated its 2024 revenue outlook to 13% year-over-year growth, expecting revenue between $4.60 billion and $4.66 billion. Cadence's Cadence.AI portfolio and next-generation Z3/X3 hardware systems showed strong momentum, with robust demand from AI, hyperscale, and automotive customers. The company also completed the BETA CAE acquisition, expanding its multiphysics platform offerings.
Cadence Design Systems (CDNS) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un fatturato di 1,061 miliardi di dollari, in aumento rispetto ai 977 milioni di dollari del secondo trimestre del 2023. Il margine operativo GAAP dell'azienda era del 28%, mentre il margine operativo non GAAP era del 40%. L'EPS diluito GAAP ha raggiunto i $0.84 e l'EPS diluito non GAAP era di $1.28. Il backlog a fine trimestre di Cadence si è attestato a 6,0 miliardi di dollari, con obbligazioni di performance residue attuali di 3,1 miliardi di dollari.
L'azienda ha aggiornato le sue previsioni di fatturato per il 2024, prevedendo una crescita del 13% rispetto all'anno precedente, con un fatturato atteso tra 4,60 miliardi e 4,66 miliardi di dollari. Il portafoglio Cadence.AI di Cadence e i sistemi hardware di nuova generazione Z3/X3 hanno mostrato un forte slancio, con una domanda robusta da parte di clienti nel settore AI, iperscalabile e automobilistico. L'azienda ha anche concluso l'acquisizione di BETA CAE, espandendo la sua offerta di piattaforme multifisiche.
Cadence Design Systems (CDNS) reportó fuertes resultados financieros en el segundo trimestre de 2024, con ingresos de 1,061 mil millones de dólares, un aumento con respecto a los 977 millones de dólares en el segundo trimestre de 2023. El margen operativo GAAP de la compañía fue del 28%, mientras que el margen operativo no GAAP fue del 40%. El EPS diluido GAAP alcanzó $0.84 y el EPS diluido no GAAP fue de $1.28. El backlog al final del trimestre de Cadence se situó en 6.0 mil millones de dólares, con obligaciones de rendimiento actuales restantes de $3.1 mil millones.
La compañía actualizó sus previsiones de ingresos para 2024, proyectando un crecimiento del 13% interanual, con ingresos esperados entre 4.60 mil millones y 4.66 mil millones de dólares. El portafolio Cadence.AI de Cadence y los sistemas hardware de próxima generación Z3/X3 mostraron un fuerte impulso, con una demanda robusta de clientes en AI, hiperescalado y automotriz. La compañía también completó la adquisición de BETA CAE, ampliando su oferta de plataformas multifísicas.
Cadence Design Systems (CDNS)는 2024년 2분기 강력한 재무 결과를 보고했으며, 수익은 10억 6100만 달러로 2023년 2분기의 9억 7700만 달러에서 증가했습니다. 회사의 GAAP 운영 마진은 28%였으며, 비-GAAP 운영 마진은 40%였습니다. GAAP 희석 주당순이익(EPS)은 $0.84에 도달했고, 비-GAAP 희석 EPS는 $1.28이었습니다. Cadence의 분기 말 미수금은 60억 달러로, 현재 남은 성과 의무는 31억 달러입니다.
회사는 2024년 수익 전망을 전년 대비 13% 성장으로 업데이트하며, 예상 수익을 46억 달러에서 46억 6000만 달러 사이로 전망했습니다. Cadence.AI 포트폴리오와 차세대 Z3/X3 하드웨어 시스템은 AI, 하이퍼스케일 및 자동차 고객으로부터 강한 수요를 보이며 활발한 성장세를 보였습니다. 또한, 회사는 BETA CAE 인수를 완료하여 다물리기반 플랫폼 제공을 확장했습니다.
Cadence Design Systems (CDNS) a annoncé de bons résultats financiers pour le deuxième trimestre 2024, avec des revenus de 1,061 milliard de dollars, en hausse par rapport à 977 millions de dollars au deuxième trimestre 2023. La marge opérationnelle GAAP de l'entreprise était de 28%, tandis que la marge opérationnelle non GAAP était de 40%. Le BPA dilué GAAP a atteint 0,84 $ et le BPA dilué non GAAP était de 1,28 $. Le carnet de commandes à la fin du trimestre de Cadence s'élevait à 6,0 milliards de dollars, avec des obligations de performance restantes actuelles de 3,1 milliards de dollars.
L'entreprise a mis à jour ses prévisions de revenus pour 2024, s'attendant à une croissance de 13 % par rapport à l'année précédente, avec des revenus prévus entre 4,60 milliards et 4,66 milliards de dollars. Le portefeuille Cadence.AI de Cadence et les systèmes matériels de nouvelle génération Z3/X3 ont montré un fort élan, avec une demande robuste de clients dans les domaines de l'IA, de l'hyperscale et de l'automobile. L'entreprise a également finalisé l'acquisition de BETA CAE, élargissant son offre de plateformes multiphysiques.
Cadence Design Systems (CDNS) berichtete über starke Finanzzahlen für das zweite Quartal 2024, mit einem Umsatz von 1,061 Milliarden Dollar, ein Anstieg von 977 Millionen Dollar im zweiten Quartal 2023. Die GAAP-Betriebsrendite des Unternehmens betrug 28%, während die Nicht-GAAP-Betriebsrendite 40% betrug. Der verwässerte GAAP-EPS erreichte $0.84, und der verwässerte Nicht-GAAP-EPS betrug $1.28. Der Auftragsbestand von Cadence am Ende des Quartals belief sich auf 6,0 Milliarden Dollar, mit aktuellen verbleibenden Leistungsansprüchen von 3,1 Milliarden Dollar.
Das Unternehmen aktualisierte seine Umsatzprognose für 2024 auf 13% Wachstum im Jahresvergleich und erwartet einen Umsatz zwischen 4,60 Milliarden und 4,66 Milliarden Dollar. Das Cadence.AI-Portfolio und die Hardware-Systeme der nächsten Generation Z3/X3 zeigten starken Schwung, mit robuster Nachfrage von Kunden im Bereich KI, Hyperscale und Automobil. Das Unternehmen hat auch die Übernahme von BETA CAE abgeschlossen, um sein Angebot an Mehrfeld-Plattformen zu erweitern.
- Revenue increased to $1.061 billion, up 8.6% year-over-year
- Quarter-end backlog reached $6.0 billion
- Updated 2024 revenue outlook to 13% year-over-year growth
- Strong demand for Cadence.AI portfolio and next-generation Z3/X3 hardware systems
- IP business showed strong momentum in AI, 3D-IC, and HPC applications
- Completed BETA CAE acquisition, expanding multiphysics platform offerings
- GAAP operating margin decreased to 28% from 31% in Q2 2023
- Non-GAAP operating margin declined to 40% from 42% in Q2 2023
Insights
Cadence Design Systems' second-quarter financial results demonstrate a strong performance, with revenue increasing from $977 million in Q2 2023 to $1.061 billion in Q2 2024. This 8.6% YoY growth is a positive signal for investors, indicating robust demand and effective business strategies. However, the decline in GAAP operating margins from 31% to 28% and non-GAAP operating margins from 42% to 40% suggests increasing costs or pricing pressures. This could be a point of concern, but it’s balanced by the growth in net income per share, both GAAP and non-GAAP, highlighting efficiency in operations and profitability.
The company’s updated revenue outlook for 2024 indicates a 13% YoY growth, setting a bullish tone for future performance. Cadence's significant backlog of $6.0 billion and the projected revenue of $3.1 billion to be recognized in the next 12 months provide a stable revenue pipeline. This backlog demonstrates strong customer demand and long-term contracts, which can lead to sustained revenue growth and predictability. Investors should, however, keep an eye on the company’s ability to manage costs and maintain or improve operating margins in the upcoming quarters.
Short-term, Cadence appears well-positioned for continued growth. Long-term, the focus should be on how they handle margin pressures and whether the demand for their AI and automotive technology continues to rise.
Cadence Design Systems' growth is significantly driven by its innovative products, especially in the AI, automotive and hyperscale segments. The Cadence.AI portfolio and next-generation Z3/X3 hardware systems are pivotal in maintaining the company’s competitive edge. AI and automotive sectors are rapidly evolving and Cadence's focus on these areas shows strategic foresight. The successful deployment of Palladium Z3 for a major AI partner highlights Cadence’s strength in verification and validation technologies, which are important in these high-tech sectors.
The mention of high demand for their IP titles in AI, 3D-IC and HPC applications suggests that Cadence is not only keeping up with but leading in technological innovations. Their recent acquisition of BETA CAE expands their multiphysics platform capabilities, covering areas like electromagnetics and structural analysis, which broadens their market reach and application scope. This positions them well for future growth as industries increasingly adopt sophisticated design and simulation tools.
For investors, Cadence's continued innovation and expansion into high-growth tech areas indicate strong long-term potential. Monitoring their product development and adoption rates will be key in assessing future stock performance.
The second-quarter performance of Cadence Design Systems aligns well with broader market trends in technology and innovation. The company's revenue growth and substantial backlog are reflective of the increased investment in AI, hyperscale and automotive technologies. The market’s demand for advanced design systems and verification tools is on the rise and Cadence is strategically positioned to capitalize on this trend.
The company’s optimistic revenue outlook and strong backlog signify robust customer engagement and confidence in their solutions. The diversification in their portfolio, particularly with products like Cadence.AI and the Z3/X3 hardware systems, ensures they are catering to a wide range of high-demand industries. Moreover, the acquisition of BETA CAE and its integration into their multiphysics platform highlight Cadence's strategic moves to enhance their end-to-end design capabilities, which could attract new customers and retain existing ones.
From a market perspective, Cadence is in a favorable position. The key for investors will be to watch how the company leverages its innovation to drive market share and maintain its growth trajectory in a competitive landscape. The emphasis should be on assessing customer adoption rates and the performance of new product lines in the coming quarters.
Second Quarter Backlog of
Updating 2024 Revenue Outlook to
Second Quarter 2024 Financial Results
-
Revenue of
$1.06 1 billion$977 million -
GAAP operating margin of
28% , compared to31% in Q2 2023 -
Non-GAAP operating margin of
40% , compared to42% in Q2 2023 -
GAAP diluted net income per share of
$0.84 $0.81 -
Non-GAAP diluted net income per share of
$1.28 $1.22 -
Quarter-end backlog was
$6.0 billion $3.1 billion
“Cadence delivered strong results for the second quarter of 2024, with robust demand for our cutting-edge technologies from AI, hyperscale, and automotive customers,” said Anirudh Devgan, president and chief executive officer. “I'm pleased with the strong momentum of our Cadence.AI portfolio and our next generation Z3 / X3 hardware systems, and am excited about the growing demand for our industry leading products from an expanding foundry ecosystem.”
“I am pleased with our strong Q2 results. We exceeded our outlook on all key financial metrics, closing Q2 with backlog of approximately
CFO Commentary
Commentary on the second quarter of 2024 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.
Business Outlook
For fiscal year 2024, the company expects:
-
Revenue in the range of
$4.60 billion $4.66 billion -
GAAP operating margin in the range of
29.7% to31.3% -
Non-GAAP operating margin in the range of
41.7% to43.3% -
GAAP diluted net income per share in the range of
$3.82 $4.02 -
Non-GAAP diluted net income per share in the range of
$5.77 $5.97
For the third quarter of 2024, the company expects:
-
Revenue in the range of
$1.16 5 billion$1.19 5 billion -
GAAP operating margin in the range of
27.7% to29.3% -
Non-GAAP operating margin in the range of
40.7% to42.3% -
GAAP diluted net income per share in the range of
$0.83 $0.93 -
Non-GAAP diluted net income per share in the range of
$1.39 $1.49
The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use the current normalized non-GAAP tax rate through fiscal 2025 but will re-evaluate this rate periodically for significant items that may materially affect its projections.
Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release.
Business Highlights
- Cadence.AI portfolio continues to gain momentum, offering unparalleled chip-to-systems design capabilities that empower our customers to achieve exceptional quality of results and productivity benefits
- IP business continued its strong momentum with AI, 3D-IC and HPC applications fueling demand for our IP titles at the most advanced nodes
- Major long-term development partner broadly deployed Palladium Z3 to deliver to its next generation AI product roadmap, further solidifying Cadence’s leadership in verification
- Closed BETA CAE acquisition and we now offer a comprehensive multiphysics platform covering electromagnetics, electrothermal, CFD and structural analysis solutions
Audio Webcast Scheduled
Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the second quarter 2024 financial results audio webcast today, July 22, 2024, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting July 22, 2024 at 5 p.m. (Pacific) and ending September 16, 2024 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.
About Cadence
Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary electronic products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For 10 years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at www.cadence.com.
© 2024 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
This press release contains forward-looking statements, including Cadence's outlook on future operating results, financial condition, strategic objectives, business prospects, technology and product developments, industry trends and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) change in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions, and rising tensions and conflicts around the world such as in the
For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the
All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.
To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, investment gains or losses, income or expenses related to Cadence’s non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments.
Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.
The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:
Operating Margin Reconciliation |
Three Months Ended |
||
|
June 30, 2024 |
June 30, 2023 |
|
|
(unaudited) |
||
GAAP operating margin as a percent of total revenue |
|
|
|
Reconciling items to non-GAAP operating margin as a percent of total revenue: |
|
|
|
Stock-based compensation expense |
|
|
|
Amortization of acquired intangibles |
|
|
|
Acquisition and integration-related costs |
|
|
|
Restructuring |
|
|
|
Non-qualified deferred compensation expenses |
|
|
|
Special charges |
|
|
|
Non-GAAP operating margin as a percent of total revenue |
|
|
|
Net Income Reconciliation |
Three Months Ended |
||||||
|
June 30, 2024 |
June 30, 2023 |
|||||
(in thousands) |
(unaudited) |
||||||
Net income on a GAAP basis |
$ |
229,520 |
|
$ |
221,120 |
|
|
Stock-based compensation expense |
|
87,569 |
|
|
76,608 |
|
|
Amortization of acquired intangibles |
|
20,155 |
|
|
14,920 |
|
|
Acquisition and integration-related costs |
|
20,715 |
|
|
13,946 |
|
|
Restructuring |
|
(33 |
) |
|
— |
|
|
Non-qualified deferred compensation expenses |
|
1,697 |
|
|
3,155 |
|
|
Special charges |
|
1,233 |
|
|
— |
|
|
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
(27,048 |
) |
|
(2,508 |
) |
|
Income tax effect of non-GAAP adjustments |
|
16,890 |
|
|
6,509 |
|
|
Net income on a non-GAAP basis |
$ |
350,698 |
|
$ |
333,750 |
|
|
* Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
Diluted Net Income Per Share Reconciliation |
Three Months Ended |
||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||
(in thousands, except per share data) |
(unaudited) |
||||||
Diluted net income per share on a GAAP basis |
$ |
0.84 |
|
|
$ |
0.81 |
|
Stock-based compensation expense |
|
0.32 |
|
|
|
0.28 |
|
Amortization of acquired intangibles |
|
0.07 |
|
|
|
0.06 |
|
Acquisition and integration-related costs |
|
0.08 |
|
|
|
0.05 |
|
Restructuring |
|
— |
|
|
|
— |
|
Non-qualified deferred compensation expenses |
|
0.01 |
|
|
|
0.01 |
|
Special charges |
|
— |
|
|
|
— |
|
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
(0.10 |
) |
|
|
(0.01 |
) |
Income tax effect of non-GAAP adjustments |
|
0.06 |
|
|
|
0.02 |
|
Diluted net income per share on a non-GAAP basis |
$ |
1.28 |
|
|
$ |
1.22 |
|
Shares used in calculation of diluted net income per share |
|
273,520 |
|
|
|
272,996 |
|
* Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
| Cadence Design Systems, Inc. | |||||
| Condensed Consolidated Balance Sheets | |||||
| June 30, 2024 and December 31, 2023 | |||||
| (In thousands) | |||||
| (Unaudited) | |||||
|
|||||
| June 30, 2024 | December 31, 2023 | ||||
| Current assets: | |||||
| Cash and cash equivalents | $ |
1,058,955 |
$ |
1,008,152 |
|
| Receivables, net |
|
564,851 |
|
489,224 |
|
| Inventories |
|
171,508 |
|
181,661 |
|
| Prepaid expenses and other |
|
401,074 |
|
297,180 |
|
| Total current assets |
|
2,196,388 |
|
1,976,217 |
|
| Property, plant and equipment, net |
|
449,422 |
|
403,213 |
|
| Goodwill |
|
2,417,747 |
|
1,535,845 |
|
| Acquired intangibles, net |
|
664,038 |
|
336,843 |
|
| Deferred taxes |
|
892,963 |
|
880,001 |
|
| Other assets |
|
605,183 |
|
537,372 |
|
| Total assets | $ |
7,225,741 |
$ |
5,669,491 |
|
| Current liabilities: | |||||
| Current portion of long-term debt | $ |
349,732 |
$ |
349,285 |
|
| Accounts payable and accrued liabilities |
|
505,392 |
|
576,558 |
|
| Current portion of deferred revenue |
|
678,598 |
|
665,024 |
|
| Total current liabilities |
|
1,533,722 |
|
1,590,867 |
|
| Long-term liabilities: | |||||
| Long-term portion of deferred revenue |
|
88,823 |
|
98,931 |
|
| Long-term debt |
|
998,935 |
|
299,771 |
|
| Other long-term liabilities |
|
343,369 |
|
275,651 |
|
| Total long-term liabilities |
|
1,431,127 |
|
674,353 |
|
| Stockholders' equity |
|
4,260,892 |
|
3,404,271 |
|
| Total liabilities and stockholders' equity | $ |
7,225,741 |
$ |
5,669,491 |
|
| Cadence Design Systems, Inc. | |||||||||||||||
| Condensed Consolidated Income Statements | |||||||||||||||
| For the Three and Six Months Ended June 30, 2024 and June 30, 2023 | |||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||
| (Unaudited) | |||||||||||||||
|
|||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| Revenue: | |||||||||||||||
| Product and maintenance | $ |
960,457 |
|
$ |
922,790 |
|
$ |
1,873,842 |
|
$ |
1,886,532 |
|
|||
| Services |
|
100,224 |
|
|
53,789 |
|
|
195,942 |
|
|
111,737 |
|
|||
| Total revenue |
|
1,060,681 |
|
|
976,579 |
|
|
2,069,784 |
|
|
1,998,269 |
|
|||
| Costs and expenses: | |||||||||||||||
| Cost of product and maintenance |
|
94,363 |
|
|
74,218 |
|
|
169,758 |
|
|
174,456 |
|
|||
| Cost of services |
|
44,907 |
|
|
22,640 |
|
|
94,709 |
|
|
46,874 |
|
|||
| Marketing and sales |
|
186,725 |
|
|
167,070 |
|
|
367,314 |
|
|
333,736 |
|
|||
| Research and development |
|
370,740 |
|
|
354,416 |
|
|
749,698 |
|
|
704,711 |
|
|||
| General and administrative |
|
63,436 |
|
|
54,605 |
|
|
132,152 |
|
|
108,132 |
|
|||
| Amortization of acquired intangibles |
|
6,667 |
|
|
4,302 |
|
|
12,074 |
|
|
8,569 |
|
|||
| Restructuring |
|
(33 |
) |
|
- |
|
|
247 |
|
|
- |
|
|||
| Total costs and expenses |
|
766,805 |
|
|
677,251 |
|
|
1,525,952 |
|
|
1,376,478 |
|
|||
| Income from operations |
|
293,876 |
|
|
299,328 |
|
|
543,832 |
|
|
621,791 |
|
|||
| Interest expense |
|
(12,905 |
) |
|
(8,877 |
) |
|
(21,597 |
) |
|
(18,137 |
) |
|||
| Other income, net |
|
34,739 |
|
|
7,973 |
|
|
103,518 |
|
|
16,257 |
|
|||
| Income before provision for income taxes |
|
315,710 |
|
|
298,424 |
|
|
625,753 |
|
|
619,911 |
|
|||
| Provision for income taxes |
|
86,190 |
|
|
77,304 |
|
|
148,590 |
|
|
156,987 |
|
|||
| Net income | $ |
229,520 |
|
$ |
221,120 |
|
$ |
477,163 |
|
$ |
462,924 |
|
|||
| Net income per share - basic | $ |
0.85 |
|
$ |
0.82 |
|
$ |
1.77 |
|
$ |
1.72 |
|
|||
| Net income per share - diluted | $ |
0.84 |
|
$ |
0.81 |
|
$ |
1.74 |
|
$ |
1.70 |
|
|||
| Weighted average common shares outstanding - basic |
|
270,912 |
|
|
269,714 |
|
|
270,259 |
|
|
269,607 |
|
|||
| Weighted average common shares outstanding - diluted |
|
273,520 |
|
|
272,996 |
|
|
273,532 |
|
|
273,078 |
|
|||
| Cadence Design Systems, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| For the Six Months Ended June 30, 2024 and June 30, 2023 | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
|
|||||||
| Six Months Ended | |||||||
June 30, |
June 30, |
||||||
2024 |
2023 |
||||||
| Cash and cash equivalents at beginning of period | $ |
1,008,152 |
|
$ |
882,325 |
|
|
| Cash flows from operating activities: | |||||||
| Net income |
|
477,163 |
|
|
462,924 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization |
|
87,202 |
|
|
70,432 |
|
|
| Amortization of debt discount and fees |
|
684 |
|
|
626 |
|
|
| Stock-based compensation |
|
175,698 |
|
|
150,896 |
|
|
| (Gain) loss on investments, net |
|
(80,599 |
) |
|
554 |
|
|
| Deferred income taxes |
|
(9,506 |
) |
|
(20,171 |
) |
|
| Provisions for losses on receivables |
|
614 |
|
|
720 |
|
|
| ROU asset amortization and change in operating lease liabilities |
|
(1,410 |
) |
|
(3,543 |
) |
|
| Other non-cash items |
|
212 |
|
|
1,834 |
|
|
| Changes in operating assets and liabilities, net of effect of acquired businesses: | |||||||
| Receivables |
|
(49,384 |
) |
|
41,208 |
|
|
| Inventories |
|
(15,978 |
) |
|
(16,981 |
) |
|
| Prepaid expenses and other |
|
(39,868 |
) |
|
50,793 |
|
|
| Other assets |
|
(38,967 |
) |
|
(31,838 |
) |
|
| Accounts payable and accrued liabilities |
|
(93,078 |
) |
|
(37,049 |
) |
|
| Deferred revenue |
|
(18,599 |
) |
|
1,269 |
|
|
| Other long-term liabilities |
|
15,013 |
|
|
9,497 |
|
|
| Net cash provided by operating activities |
|
409,197 |
|
|
681,171 |
|
|
| Cash flows from investing activities: | |||||||
| Purchases of investments |
|
(2,095 |
) |
|
(29,212 |
) |
|
| Proceeds from the sale and maturity of investments |
|
43,864 |
|
|
1,505 |
|
|
| Purchases of property, plant and equipment |
|
(78,800 |
) |
|
(46,655 |
) |
|
| Cash paid in business combinations, net of cash acquired |
|
(720,821 |
) |
|
(55,379 |
) |
|
| Net cash used for investing activities |
|
(757,852 |
) |
|
(129,741 |
) |
|
| Cash flows from financing activities: | |||||||
| Proceeds from revolving credit facility |
|
- |
|
|
50,000 |
|
|
| Payments on revolving credit facility |
|
- |
|
|
(150,000 |
) |
|
| Proceeds from term loan |
|
700,000 |
|
|
- |
|
|
| Payment of debt issuance costs |
|
(944 |
) |
|
- |
|
|
| Proceeds from issuance of common stock |
|
133,272 |
|
|
77,502 |
|
|
| Stock received for payment of employee taxes on vesting of restricted stock |
|
(166,903 |
) |
|
(78,988 |
) |
|
| Payments for repurchases of common stock |
|
(250,010 |
) |
|
(450,119 |
) |
|
| Net cash provided by (used for) financing activities |
|
415,415 |
|
|
(551,605 |
) |
|
| Effect of exchange rate changes on cash and cash equivalents |
|
(15,957 |
) |
|
(8,225 |
) |
|
| Increase (decrease) in cash and cash equivalents |
|
50,803 |
|
|
(8,400 |
) |
|
| Cash and cash equivalents at end of period | $ |
1,058,955 |
|
$ |
873,925 |
|
|
| Cadence Design Systems, Inc. | |||||||||||||
| (Unaudited) | |||||||||||||
|
|||||||||||||
| Revenue Mix by Geography (% of Total Revenue) | |||||||||||||
2023 |
2024 |
||||||||||||
| GEOGRAPHY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | ||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
| Other |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
| Total |
|
|
|
|
|
|
|
||||||
| Revenue Mix by Product Category (% of Total Revenue) | |||||||||||||
2023 |
2024 |
||||||||||||
| PRODUCT CATEGORY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | ||||||
| Custom IC Design and Simulation |
|
|
|
|
|
|
|
||||||
| Digital IC Design and Signoff |
|
|
|
|
|
|
|
||||||
| Functional Verification, including Emulation and Prototyping Hardware |
|
|
|
|
|
|
|
||||||
| IP |
|
|
|
|
|
|
|
||||||
| System Design and Analysis |
|
|
|
|
|
|
|
||||||
| Total |
|
|
|
|
|
|
|
||||||
| Cadence Design Systems, Inc. | |||
| Impact of Non-GAAP Adjustments on Forward Looking Operating Margin | |||
| As of July 22, 2024 | |||
| (Unaudited) | |||
|
|||
| Three Months Ending | Year Ending | ||
| September 30, 2024 | December 31, 2024 | ||
| Forecast | Forecast | ||
| GAAP operating margin as a percent of total revenue |
|
|
|
|
|
||
| Reconciling items to non-GAAP operating margin as a |
|
|
|
| percent of total revenue: |
|
|
|
| Stock-based compensation expense |
|
|
|
| Amortization of acquired intangibles |
|
|
|
| Acquisition and integration-related costs |
|
|
|
| Non-qualified deferred compensation expenses |
|
|
|
|
|
||
| Non-GAAP operating margin as a percent of total revenue† |
|
|
|
| †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. | |||
| Cadence Design Systems, Inc. | |||
| Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share | |||
| As of July 22, 2024 | |||
| (Unaudited) | |||
| Three Months Ending | Year Ending | ||
| September 30, 2024 | December 31, 2024 | ||
| Forecast | Forecast | ||
|
|
||
| Diluted net income per share on a GAAP basis |
|
|
|
|
|
||
| Stock-based compensation expense | 0.38 |
1.43 |
|
| Amortization of acquired intangibles | 0.10 |
0.33 |
|
| Acquisition and integration-related costs | 0.10 |
0.34 |
|
| Non-qualified deferred compensation expenses | - |
0.02 |
|
| Special charges | - |
- |
|
| Other income or expense related to investments and |
|
|
|
| non-qualified deferred compensation plan assets* | - |
(0.32) |
|
| Income tax effect of non-GAAP adjustments | (0.02) |
0.15 |
|
|
|
||
| Diluted net income per share on a non-GAAP basis† |
|
|
|
| †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP | |||
| * Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. | |||
| Cadence Design Systems, Inc. | |||
| Impact of Non-GAAP Adjustments on Forward Looking Net Income | |||
| As of July 22, 2024 | |||
| (Unaudited) | |||
| Three Months Ending | Year Ending | ||
| September 30, 2024 | December 31, 2024 | ||
| ($ in millions) | Forecast | Forecast | |
|
|||
| Net income on a GAAP basis |
|
|
|
|
|
||
| Stock-based compensation expense | 106 |
391 |
|
| Amortization of acquired intangibles | 26 |
90 |
|
| Acquisition and integration-related costs | 27 |
93 |
|
| Non-qualified deferred compensation expenses | - |
6 |
|
| Special charges | - |
1 |
|
| Other income or expense related to investments and |
|
|
|
| non-qualified deferred compensation plan assets* | - |
(87) |
|
| Income tax effect of non-GAAP adjustments | (5) |
41 |
|
|
|
||
| Net income on a non-GAAP basis† |
|
|
|
| †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP | |||
| * Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. | |||
CDNS–IR
Category: Financial, Featured
View source version on businesswire.com: https://www.businesswire.com/news/home/20240721138030/en/
Cadence Investor Relations
408-944-7100
investor_relations@cadence.com
Cadence Newsroom
408-944-7039
newsroom@cadence.com
Source: Cadence Design Systems, Inc.
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