Cadence Reports Third Quarter 2024 Financial Results
Cadence Design Systems (CDNS) reported strong Q3 2024 results with revenue of $1.215 billion, up 19% year-over-year. The company achieved a non-GAAP operating margin of 45% and non-GAAP EPS of $1.64. Quarter-end backlog reached $5.6 billion, with current remaining performance obligations of $2.9 billion. Notable growth areas included System Design & Analysis (47% YoY), IP business (59% YoY), and Functional Verification (22% YoY). The company raised its 2024 non-GAAP EPS outlook midpoint to $5.90 and expects full-year revenue between $4.61-4.65 billion.
Cadence Design Systems (CDNS) ha riportato risultati solidi per il terzo trimestre del 2024, con un fatturato di 1,215 miliardi di dollari, in crescita del 19% rispetto all'anno precedente. L'azienda ha raggiunto un margine operativo non-GAAP del 45% e un EPS non-GAAP di 1,64 dollari. Il portafoglio ordini alla fine del trimestre ha toccato 5,6 miliardi di dollari, con obbligazioni di prestazione residue attuali di 2,9 miliardi di dollari. Le aree di crescita significative hanno incluso il Design e Analisi dei Sistemi (47% anno su anno), il business IP (59% anno su anno) e la Verifica Funzionale (22% anno su anno). La società ha alzato la sua previsione intermedia per l'EPS non-GAAP del 2024 a 5,90 dollari e prevede un fatturato totale per l'anno compreso tra 4,61 e 4,65 miliardi di dollari.
Cadence Design Systems (CDNS) reportó resultados sólidos en el tercer trimestre de 2024 con ingresos de 1,215 mil millones de dólares, un aumento del 19% interanual. La compañía logró un margen operativo no-GAAP del 45% y un EPS no-GAAP de 1.64 dólares. La cartera de pedidos al final del trimestre alcanzó 5.6 mil millones de dólares, con obligaciones de rendimiento restantes actuales de 2.9 mil millones de dólares. Las áreas de crecimiento notables incluyeron Diseño y Análisis de Sistemas (47% interanual), negocio de IP (59% interanual) y Verificación Funcional (22% interanual). La empresa aumentó su perspectiva intermedia de EPS no-GAAP para 2024 a 5.90 dólares y espera ingresos anuales entre 4.61 y 4.65 mil millones de dólares.
케이던스 디자인 시스템즈 (CDNS)는 2024년 3분기 실적에 대해 12억 1500만 달러의 매출을 보고하며 전년 대비 19% 증가했다고 발표했습니다. 회사는 비-GAAP 운영 마진 45%를 달성했으며, 비-GAAP 주당 순이익(EPS) 1.64달러를 기록했습니다. 분기 말 미착 계약잔고는 56억 달러에 도달했으며, 현재 잔여 성과 의무는 29억 달러입니다. 주목할 만한 성장 분야로는 시스템 설계 및 분석(전년 대비 47%), IP 비즈니스(전년 대비 59%), 기능 검증(전년 대비 22%)이 포함됩니다. 이 회사는 2024년 비-GAAP EPS 전망의 중간 값을 5.90달러로 상향 조정했으며, 연간 매출을 46.1억에서 46.5억 달러 사이로 예상하고 있습니다.
Cadence Design Systems (CDNS) a annoncé de solides résultats pour le troisième trimestre 2024 avec des revenus de 1,215 milliard de dollars, en hausse de 19 % par rapport à l'année précédente. L'entreprise a atteint une marge opérationnelle non-GAAP de 45% et un BPA non-GAAP de 1,64 dollar. Le carnet de commandes à la fin du trimestre a atteint 5,6 milliards de dollars, avec des obligations de performance restantes actuelles de 2,9 milliards de dollars. Les domaines de croissance notables comprenaient la Conception et l'Analyse des Systèmes (47 % en glissement annuel), le secteur IP (59 % en glissement annuel) et la Vérification Fonctionnelle (22 % en glissement annuel). L'entreprise a relevé son objectif intermédiaire de BPA non-GAAP pour 2024 à 5,90 dollars et prévoit des revenus annuels compris entre 4,61 et 4,65 milliards de dollars.
Cadence Design Systems (CDNS) berichtete über starke Ergebnisse im dritten Quartal 2024 mit einem Umsatz von 1,215 Milliarden Dollar, was einem Anstieg von 19% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte eine non-GAAP-Betriebs marge von 45% und ein non-GAAP EPS von 1,64 Dollar. Der Auftragsbestand zum Ende des Quartals erreichte 5,6 Milliarden Dollar, mit aktuellen verbleibenden Leistungspflichten von 2,9 Milliarden Dollar. Bedeutende Wachstumsbereiche umfassten Systemdesign und -analyse (47% im Jahresvergleich), IP-Geschäft (59% im Jahresvergleich) und funktionale Verifizierung (22% im Jahresvergleich). Das Unternehmen hob seine Prognose für das non-GAAP EPS 2024 auf einen Mittelwert von 5,90 Dollar an und erwartet einen Jahresumsatz zwischen 4,61 und 4,65 Milliarden Dollar.
- Revenue increased 19% YoY to $1.215 billion
- Non-GAAP operating margin improved to 45% from 41% YoY
- Non-GAAP EPS grew to $1.64 from $1.26 YoY
- Strong backlog of $5.6 billion
- IP business revenue grew 59% YoY
- System Design & Analysis revenue increased 47% YoY
- Functional Verification revenue up 22% YoY
- Raised FY2024 guidance
- GAAP diluted EPS decreased to $0.87 from $0.93 YoY
- GAAP operating margin remained flat at 29%
Insights
Cadence delivered an outstanding Q3 with
The
The tripling of Cadence.AI revenue highlights the company's successful integration of generative AI into its core EDA tools. This transformation is particularly significant as it addresses the increasing complexity in chip design while improving productivity. The strong adoption of multi-physics portfolio and verification solutions by AI, hyperscale and automotive companies indicates Cadence's growing influence in high-growth technology segments.
The major IP deal for AI product development demonstrates Cadence's strategic positioning in the AI infrastructure market. The company's comprehensive portfolio spanning hardware, IP and services makes it an essential partner for next-generation chip development, particularly in AI applications where design complexity and performance requirements are escalating rapidly.
Exceeded Q3 guidance for revenue and operating margin
On track to deliver strong second half
Raising midpoint of 2024 non-GAAP EPS outlook to
Third Quarter 2024 Financial Results
-
Revenue of
, compared to revenue of$1.21 5 billion in Q3 2023$1.02 3 billion -
GAAP operating margin of
29% , compared to29% in Q3 2023 -
Non-GAAP operating margin of
45% , compared to41% in Q3 2023 -
GAAP diluted net income per share of
, compared to$0.87 in Q3 2023$0.93 -
Non-GAAP diluted net income per share of
, compared to$1.64 in Q3 2023$1.26 -
Quarter-end backlog was
and current remaining performance obligations (“cRPO”), contract revenue expected to be recognized as revenue in the next 12 months, was$5.6 billion $2.9 billion
“Cadence delivered exceptional results for the third quarter of 2024, driven by broad-based strength across our portfolio, especially in IP, SD&A, and hardware systems,” said Anirudh Devgan, president and chief executive officer. “Customers are achieving outstanding results with Cadence.AI, and I’m excited by its accelerating proliferation as AI rapidly becomes an integral part of the design workflow.”
“I am pleased to report that Cadence delivered strong Q3 results, with total revenue growing
CFO Commentary
Commentary on the third 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
to$4.61 billion $4.65 billion -
GAAP operating margin in the range of
29% to30% -
Non-GAAP operating margin in the range of
42% to43% -
GAAP diluted net income per share in the range of
to$3.70 $3.76 -
Non-GAAP diluted net income per share in the range of
to$5.87 $5.93
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 powered by GenAI agents, AI-driven optimization and the big data analytics JedAI platform, offers unparalleled quality of results and productivity benefits, further proliferated with revenue nearly tripling over the last year
- System Design & Analysis business achieved 47 percent year-over-year revenue growth in Q3 with strong growth of Cadence's comprehensive multi-physics portfolio that couples the company's expertise in physics-based modeling with AI driven optimization
- Strong IP business momentum, with 59 percent year-over-year growth as Cadence executed to its profitable and scalable growth strategy. A long-term IP partner signed a major deal for Cadence's hardware, IP and services offering to help deliver its AI product roadmap and next generation subsystems
- Functional Verification delivered 22 percent year-over-year revenue growth, fueled by strong demand for Cadence's new ground-breaking hardware systems, especially at AI, hyperscale and automotive companies
Audio Webcast Scheduled
Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the third quarter 2024 financial results audio webcast today, October 28, 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 October 28, 2024 at 5 p.m. (Pacific) and ending December 17, 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, market growth 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 |
||||
|
|
September 30, 2024 |
|
September 30, 2023 |
||
|
|
(unaudited) |
||||
GAAP operating margin as a percent of total revenue |
|
29 |
% |
|
29 |
% |
Reconciling items to non-GAAP operating margin as a percent of total revenue: |
|
|
|
|
||
Stock-based compensation expense |
|
9 |
% |
|
9 |
% |
Amortization of acquired intangibles |
|
2 |
% |
|
1 |
% |
Acquisition and integration-related costs |
|
3 |
% |
|
1 |
% |
Restructuring |
|
2 |
% |
|
1 |
% |
Non-qualified deferred compensation expenses (credits) |
|
0 |
% |
|
0 |
% |
Non-GAAP operating margin as a percent of total revenue |
|
45 |
% |
|
41 |
% |
Net Income Reconciliation |
|
Three Months Ended |
||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
||||
(in thousands) |
|
(unaudited) |
||||||
Net income on a GAAP basis |
|
$ |
238,111 |
|
$ |
254,321 |
|
|
Stock-based compensation expense |
|
|
109,013 |
|
|
|
88,032 |
|
Amortization of acquired intangibles |
|
|
26,763 |
|
|
|
15,603 |
|
Acquisition and integration-related costs |
|
|
29,284 |
|
|
|
14,213 |
|
Restructuring |
|
|
24,538 |
|
|
|
11,582 |
|
Non-qualified deferred compensation expenses (credits) |
|
|
4,567 |
|
|
|
(1,749 |
) |
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
|
11,582 |
|
|
|
(11,755 |
) |
Income tax effect of non-GAAP adjustments |
|
|
6,341 |
|
|
|
(27,147 |
) |
Net income on a non-GAAP basis |
|
$ |
450,199 |
|
|
$ |
343,100 |
|
* |
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 |
||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
||||
(in thousands, except per share data) |
|
(unaudited) |
||||||
Diluted net income per share on a GAAP basis |
|
$ |
0.87 |
|
$ |
0.93 |
|
|
Stock-based compensation expense |
|
|
0.40 |
|
|
|
0.32 |
|
Amortization of acquired intangibles |
|
|
0.10 |
|
|
|
0.06 |
|
Acquisition and integration-related costs |
|
|
0.11 |
|
|
|
0.05 |
|
Restructuring |
|
|
0.09 |
|
|
|
0.04 |
|
Non-qualified deferred compensation expenses (credits) |
|
|
0.01 |
|
|
|
— |
|
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
|
0.04 |
|
|
|
(0.04 |
) |
Income tax effect of non-GAAP adjustments |
|
|
0.02 |
|
|
|
(0.10 |
) |
Diluted net income per share on a non-GAAP basis |
|
$ |
1.64 |
|
|
$ |
1.26 |
|
Shares used in calculation of diluted net income per share |
|
|
273,958 |
|
|
|
272,427 |
|
* |
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 | |||||||
September 30, 2024 and December 31, 2023 | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
September 30, 2024 | December 31, 2023 | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ |
2,786,040 |
$ |
1,008,152 |
|||
Receivables, net |
|
560,973 |
|
|
489,224 |
|
|
Inventories |
|
293,350 |
|
|
181,661 |
|
|
Prepaid expenses and other |
|
459,560 |
|
|
297,180 |
|
|
Total current assets |
|
4,099,923 |
|
|
1,976,217 |
|
|
Property, plant and equipment, net |
|
448,652 |
|
|
403,213 |
|
|
Goodwill |
|
2,493,467 |
|
|
1,535,845 |
|
|
Acquired intangibles, net |
|
662,343 |
|
|
336,843 |
|
|
Deferred taxes |
|
889,939 |
|
|
880,001 |
|
|
Other assets |
|
572,707 |
|
|
537,372 |
|
|
Total assets | $ |
9,167,031 |
|
$ |
5,669,491 |
|
|
Current liabilities: | |||||||
Current portion of long-term debt | $ |
349,958 |
|
$ |
349,285 |
|
|
Accounts payable and accrued liabilities |
|
627,200 |
|
|
576,558 |
|
|
Current portion of deferred revenue |
|
697,836 |
|
|
665,024 |
|
|
Total current liabilities |
|
1,674,994 |
|
|
1,590,867 |
|
|
Long-term liabilities: | |||||||
Long-term portion of deferred revenue |
|
102,439 |
|
|
98,931 |
|
|
Long-term debt |
|
2,475,232 |
|
|
299,771 |
|
|
Other long-term liabilities |
|
351,028 |
|
|
275,651 |
|
|
Total long-term liabilities |
|
2,928,699 |
|
|
674,353 |
|
|
Stockholders' equity |
|
4,563,338 |
|
|
3,404,271 |
|
|
Total liabilities and stockholders' equity | $ |
9,167,031 |
|
$ |
5,669,491 |
|
|
Cadence Design Systems, Inc. | |||||||||||||||
Condensed Consolidated Income Statements | |||||||||||||||
For the Three and Nine Months Ended September 30, 2024 and September 30, 2023 | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||
Revenue: | |||||||||||||||
Product and maintenance | $ |
1,100,380 |
|
$ |
965,840 |
|
$ |
2,974,222 |
|
$ |
2,852,372 |
|
|||
Services |
|
115,119 |
|
|
57,254 |
|
|
311,061 |
|
|
168,991 |
|
|||
Total revenue |
|
1,215,499 |
|
|
1,023,094 |
|
|
3,285,283 |
|
|
3,021,363 |
|
|||
Costs and expenses: | |||||||||||||||
Cost of product and maintenance |
|
109,593 |
|
|
85,813 |
|
|
279,351 |
|
|
260,269 |
|
|||
Cost of services |
|
53,451 |
|
|
23,768 |
|
|
148,160 |
|
|
70,642 |
|
|||
Marketing and sales |
|
189,763 |
|
|
176,215 |
|
|
557,077 |
|
|
509,951 |
|
|||
Research and development |
|
407,369 |
|
|
369,642 |
|
|
1,157,067 |
|
|
1,074,353 |
|
|||
General and administrative |
|
71,581 |
|
|
58,556 |
|
|
203,733 |
|
|
166,688 |
|
|||
Amortization of acquired intangibles |
|
9,148 |
|
|
4,612 |
|
|
21,222 |
|
|
13,181 |
|
|||
Restructuring |
|
24,538 |
|
|
11,582 |
|
|
24,785 |
|
|
11,582 |
|
|||
Total costs and expenses |
|
865,443 |
|
|
730,188 |
|
|
2,391,395 |
|
|
2,106,666 |
|
|||
Income from operations |
|
350,056 |
|
|
292,906 |
|
|
893,888 |
|
|
914,697 |
|
|||
Interest expense |
|
(24,495 |
) |
|
(9,059 |
) |
|
(46,092 |
) |
|
(27,196 |
) |
|||
Other income, net |
|
7,853 |
|
|
16,106 |
|
|
111,371 |
|
|
32,363 |
|
|||
Income before provision for income taxes |
|
333,414 |
|
|
299,953 |
|
|
959,167 |
|
|
919,864 |
|
|||
Provision for income taxes |
|
95,303 |
|
|
45,632 |
|
|
243,893 |
|
|
202,619 |
|
|||
Net income | $ |
238,111 |
|
$ |
254,321 |
|
$ |
715,274 |
|
$ |
717,245 |
|
|||
Net income per share - basic | $ |
0.87 |
|
$ |
0.94 |
|
$ |
2.64 |
|
$ |
2.66 |
|
|||
Net income per share - diluted | $ |
0.87 |
|
$ |
0.93 |
|
$ |
2.61 |
|
$ |
2.63 |
|
|||
Weighted average common shares outstanding - basic |
|
272,244 |
|
|
269,229 |
|
|
270,925 |
|
|
269,480 |
|
|||
Weighted average common shares outstanding - diluted |
|
273,958 |
|
|
272,427 |
|
|
273,679 |
|
|
272,859 |
|
|||
Cadence Design Systems, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
For the Nine Months Ended September 30, 2024 and September 30, 2023 | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | ||||||||
September 30, | September 30, | |||||||
|
2024 |
|
|
2023 |
|
|||
Cash and cash equivalents at beginning of period | $ |
1,008,152 |
|
$ |
882,325 |
|
||
Cash flows from operating activities: | ||||||||
Net income |
|
715,274 |
|
|
717,245 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
142,252 |
|
|
106,783 |
|
||
Amortization of debt discount and fees |
|
2,381 |
|
|
942 |
|
||
Stock-based compensation |
|
284,711 |
|
|
238,928 |
|
||
Gain on investments, net |
|
(64,458 |
) |
|
(12,732 |
) |
||
Deferred income taxes |
|
(5,082 |
) |
|
(23,506 |
) |
||
Provisions for losses on receivables |
|
1,124 |
|
|
1,692 |
|
||
ROU asset amortization and change in operating lease liabilities |
|
(1,100 |
) |
|
(2,684 |
) |
||
Other non-cash items |
|
309 |
|
|
1,962 |
|
||
Changes in operating assets and liabilities, net of effect of acquired businesses: | ||||||||
Receivables |
|
(44,766 |
) |
|
50,024 |
|
||
Inventories |
|
(139,179 |
) |
|
(47,293 |
) |
||
Prepaid expenses and other |
|
(114,785 |
) |
|
33,307 |
|
||
Other assets |
|
(8,759 |
) |
|
(26,580 |
) |
||
Accounts payable and accrued liabilities |
|
21,858 |
|
|
43,111 |
|
||
Deferred revenue |
|
6,680 |
|
|
(14,628 |
) |
||
Other long-term liabilities |
|
22,732 |
|
|
10,514 |
|
||
Net cash provided by operating activities |
|
819,192 |
|
|
1,077,085 |
|
||
Cash flows from investing activities: | ||||||||
Purchases of investments |
|
(2,095 |
) |
|
(145,150 |
) |
||
Proceeds from the sale and maturity of investments |
|
45,656 |
|
|
64,174 |
|
||
Purchases of property, plant and equipment |
|
(105,340 |
) |
|
(68,634 |
) |
||
Cash paid in business combinations, net of cash acquired |
|
(735,327 |
) |
|
(163,963 |
) |
||
Net cash used for investing activities |
|
(797,106 |
) |
|
(313,573 |
) |
||
Cash flows from financing activities: | ||||||||
Proceeds from revolving credit facility |
|
- |
|
|
50,000 |
|
||
Payments on revolving credit facility |
|
- |
|
|
(150,000 |
) |
||
Proceeds from issuance of debt |
|
3,196,595 |
|
|
- |
|
||
Payment of term loans |
|
(1,000,000 |
) |
|
- |
|
||
Payment of debt issuance costs |
|
(22,669 |
) |
|
- |
|
||
Proceeds from issuance of common stock |
|
193,933 |
|
|
131,341 |
|
||
Stock received for payment of employee taxes on vesting of restricted stock |
|
(217,462 |
) |
|
(122,182 |
) |
||
Payments for repurchases of common stock |
|
(400,018 |
) |
|
(575,127 |
) |
||
Net cash provided by (used for) financing activities |
|
1,750,379 |
|
|
(665,968 |
) |
||
Effect of exchange rate changes on cash and cash equivalents |
|
5,423 |
|
|
(17,887 |
) |
||
Increase in cash and cash equivalents |
|
1,777,888 |
|
|
79,657 |
|
||
Cash and cash equivalents at end of period | $ |
2,786,040 |
|
$ |
961,982 |
|
||
Cadence Design Systems, Inc. | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Revenue Mix by Geography (% of Total Revenue) | |||||||||||||||||
2023 |
2024 |
||||||||||||||||
GEOGRAPHY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||
44 |
% |
41 |
% |
43 |
% |
44 |
% |
43 |
% |
46 |
% |
49 |
% |
50 |
% |
||
17 |
% |
18 |
% |
17 |
% |
15 |
% |
17 |
% |
12 |
% |
12 |
% |
13 |
% |
||
Other |
18 |
% |
18 |
% |
19 |
% |
19 |
% |
19 |
% |
20 |
% |
19 |
% |
17 |
% |
|
15 |
% |
17 |
% |
15 |
% |
16 |
% |
16 |
% |
17 |
% |
14 |
% |
14 |
% |
||
6 |
% |
6 |
% |
6 |
% |
6 |
% |
5 |
% |
5 |
% |
6 |
% |
6 |
% |
||
Total | 100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
|
Revenue Mix by Product Category (% of Total Revenue) | |||||||||||||||||
2023 |
2024 |
||||||||||||||||
PRODUCT CATEGORY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||
Custom IC Design and Simulation | 20 |
% |
22 |
% |
22 |
% |
22 |
% |
22 |
% |
22 |
% |
21 |
% |
19 |
% |
|
Digital IC Design and Signoff | 25 |
% |
27 |
% |
28 |
% |
29 |
% |
27 |
% |
29 |
% |
27 |
% |
24 |
% |
|
Functional Verification, including Emulation and Prototyping Hardware | 32 |
% |
27 |
% |
26 |
% |
24 |
% |
27 |
% |
25 |
% |
25 |
% |
27 |
% |
|
Core EDA Total | 77 |
% |
76 |
% |
76 |
% |
75 |
% |
76 |
% |
76 |
% |
73 |
% |
70 |
% |
|
IP | 11 |
% |
11 |
% |
11 |
% |
13 |
% |
12 |
% |
12 |
% |
13 |
% |
14 |
% |
|
System Design and Analysis | 12 |
% |
13 |
% |
13 |
% |
12 |
% |
12 |
% |
12 |
% |
14 |
% |
16 |
% |
|
Total | 100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
|
Cadence Design Systems, Inc. | ||||
Impact of Non-GAAP Adjustments on Forward Looking Operating Margin | ||||
As of October 28, 2024 | ||||
(Unaudited) | ||||
Three Months Ending | Year Ending | |||
December 31, 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 |
|
|
|
|
Restructuring |
|
|
|
|
Non-qualified deferred compensation expenses |
|
|
|
|
Special charges |
|
|
|
|
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 October 28, 2024 | ||||
(Unaudited) | ||||
Three Months Ending | Year Ending | |||
December 31, 2024 | December 31, 2024 | |||
Forecast | Forecast | |||
Diluted net income per share on a GAAP basis | ||||
Stock-based compensation expense | 0.39 |
|
1.44 |
|
Amortization of acquired intangibles | 0.10 |
|
0.33 |
|
Acquisition and integration-related costs | 0.09 |
|
0.35 |
|
Restructuring | - |
|
0.09 |
|
Non-qualified deferred compensation expenses | - |
|
0.04 |
|
Special charges | - |
|
- |
|
Other income or expense related to investments and non-qualified deferred compensation plan assets* | - |
|
(0.27) |
|
Income tax effect of non-GAAP adjustments | 0.11 |
|
0.19 |
|
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 October 28, 2024 | ||||
(Unaudited) | ||||
Three Months Ending | Year Ending | |||
December 31, 2024 | December 31, 2024 | |||
($ in millions) | Forecast | Forecast | ||
Net income on a GAAP basis | ||||
Stock-based compensation expense | 108 |
|
393 |
|
Amortization of acquired intangibles | 27 |
|
91 |
|
Acquisition and integration-related costs | 24 |
|
96 |
|
Restructuring | - |
|
25 |
|
Non-qualified deferred compensation expenses | - |
|
11 |
|
Special charges | - |
|
1 |
|
Other income or expense related to investments and non-qualified deferred compensation plan assets* | - |
|
(75) |
|
Income tax effect of non-GAAP adjustments | 30 |
|
52 |
|
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/20241027533635/en/
For more information, please contact:
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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