Synopsys Reports Record Revenue Growth

By Tamara Parker • Thursday, August 22 08:01 • Permanent Link

Synopsys, Inc. has reported its financial results for the third quarter of fiscal year 2024, and the numbers are impressive. The company achieved a record quarterly revenue of $1.526 billion, marking a substantial increase of approximately 13% year over year from the third quarter of fiscal year 2023, which saw revenue of $1.354 billion.

On a GAAP basis, the company reported quarterly earnings per diluted share of $2.73, compared to $2.17 per diluted share for the same period last year. Meanwhile, non-GAAP earnings per diluted share for the third quarter of fiscal year 2024 were $3.43, which represents a remarkable increase of approximately 27% year over year.

The company's strong performance is further emphasized by its outlook for the full year, with an expectation of achieving a record full-year revenue growth of approximately 15%. Synopsys also anticipates non-GAAP earnings per share growth of approximately 24% for the full year, along with an expansion of non-GAAP operating margin by two points.

It's worth noting that Synopsys' software integrity business has been presented as a discontinued operation in the consolidated financial statements for all periods presented, and all financial results and targets are presented on a continuing operations basis.

In terms of business segments, Synopsys reports revenue and operating income in two segments: design automation and design IP. The former includes advanced silicon design, verification products and services, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products, and others. The latter segment includes the Synopsys IP portfolio.

Looking ahead, Synopsys has provided its consolidated financial targets for continuing operations for the fourth quarter and full fiscal year 2024. The fiscal year targets take into account the impact of an extra week in fiscal year 2024, which was included in the first quarter of fiscal year 2024.

The market has reacted to these announcements by moving the company's shares 1.4% to a price of $564.68. Check out the company's full 8-K submission here.

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