NASDAQ$SNPS

Synopsys Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Synopsys achieved record quarterly revenue and non-GAAP earnings, exceeding guidance.

Synopsys reported strong Q1 2024 results, with record quarterly revenue of $1.649 billion, up 21% year-over-year, and non-GAAP EPS of $3.56, exceeding the high end of guidance. The company reaffirms full-year 2024 targets for revenue and non-GAAP operating margin and raised non-GAAP EPS guidance.

  • Record quarterly revenue of $1.649 billion, up approximately 21% year over year.
  • GAAP earnings per diluted share of $2.89.
  • Non-GAAP earnings per diluted share of $3.56, which exceeded high end of guidance.
  • Reaffirming full-year 2024 targets for revenue and non-GAAP operating margin and raising non-GAAP EPS guidance.

Headline financials

Total Revenue

$1.65B

Previous: $1.36B+21.1%
EPS

$2.89

Previous: $2.62+10.3%
Capital Expenditures

-$40.4M

Previous: -$43.5M+7.1%
Free Cash Flow

-$128M

Previous: $71.3M-279.9%
Net Income

$449M

Previous: $272M+65.4%
Operating Income

$360M

Previous: $256M+40.5%
Gross Profit

$1.32B

Previous: $1.08B+22.6%
Cash & Equivalents

$1.12B

Previous: $1.15B-3.1%
Total Assets

$10.6B

Previous: $9.57B+10.4%
R&D Expense

$552M

No prior period
Stock-Based Comp

$181M

Previous: $134M+34.6%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$1.65B

Q1 2024+21.1%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Synopsys · $1.47B total across 2 segments · Q4 2023

  • Design Automation
    $954M
  • Design IP
    $514M

Forward guidance

Synopsys provided its consolidated financial targets for the second quarter and full fiscal year 2024. The fiscal year targets include the impact of an extra week in fiscal year 2024, which was included in the first quarter of fiscal year 2024. These financial targets assume no further changes to export control restrictions or the current U.S. government “Entity List” restrictions.

Tailwinds

  • Revenue for Q2 2024 is expected to be between $1.56 billion and $1.59 billion.
  • Revenue for the full fiscal year 2024 is expected to be between $6.57 billion and $6.63 billion.
  • GAAP EPS for Q2 2024 is expected to be between $2.05 and $2.16.
  • Non-GAAP EPS for Q2 2024 is expected to be between $3.09 and $3.14.
  • Non-GAAP EPS for the full fiscal year 2024 is expected to be between $13.47 and $13.55.

Headwinds

  • GAAP expenses for Q2 2024 are expected to be between $1.206 billion and $1.226 billion.
  • GAAP expenses for the full fiscal year 2024 are expected to be between $5.022 billion and $5.079 billion.
  • Non-GAAP expenses for Q2 2024 are expected to be between $1.005 billion and $1.015 billion.
  • Non-GAAP expenses for the full fiscal year 2024 are expected to be between $4.140 billion and $4.180 billion.
  • Operating cash flow is expected to be approximately $1.4 billion for the full fiscal year 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.4%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.2%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+10.6%

Q4 2022

Best reaction

-24.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-1.6%-5.5%-15.3%
Q4 2025-1.8%-2.6%+10.4%
Q3 2025-24.8%-30.6%-27.4%
Q2 2025-1.5%+0.8%+8.7%
Q1 2025-3.3%-5.3%-6.9%
Q4 2024-9.6%-10.8%-13.4%
Q3 2024-1.6%-5.6%-9.0%
Q2 2024+2.6%+2.8%+5.9%
Q1 2024+6.0%+5.1%+8.4%
Q4 2023-0.1%-2.3%-5.3%
Q3 2023-2.9%-0.1%+3.5%
Q2 2023+9.2%+7.1%+17.6%
Q1 2023-4.3%-5.7%-0.9%
Q4 2022+10.6%+2.4%-1.4%
Q3 2022-3.2%-7.1%-18.5%
Q2 2022+6.3%+8.5%+4.7%
Q1 2022-4.2%-6.0%+3.9%
Q4 2021+2.5%+1.3%+8.1%
Q3 2021+8.4%+10.0%+11.6%
Q2 2021+4.1%+5.8%+13.1%
Q1 2021-6.8%-12.4%-21.6%
Q4 2020+1.9%+4.0%+12.7%
Q3 2020+7.5%+6.8%-1.1%
Q2 2020+4.0%+5.6%+13.8%
Q1 2020-4.8%-10.4%-32.5%
Q4 2019-2.5%-2.2%+4.8%
Q3 2019+7.0%+5.1%+4.4%
Q2 2019+1.1%+0.8%+11.3%
Q1 2019-0.4%+1.0%+8.3%
Q4 2018+1.9%-0.4%-6.2%
Q3 2018+7.2%+8.7%+5.6%
Q2 2018-0.8%-1.1%-1.3%
Q1 2018-6.0%-4.8%-8.2%
Q4 2017+0.6%-2.3%-5.1%
Q3 2017-1.9%-0.4%+2.0%
Q2 2017-5.6%-3.8%-1.8%
Q1 2017+7.3%+7.1%+8.0%
Q4 2016-7.1%-6.1%-3.8%
Q3 2016+4.7%+4.8%+3.8%
Q2 2016+2.0%
Q1 2016+2.4%
Q4 2015-7.8%
Q3 2015-6.5%
Q2 2015+1.6%
Q1 2015+4.0%
Q4 2014+3.5%
Q3 2014+6.8%
Q2 2014+1.9%
Q1 2014-2.4%
Q4 2013+2.0%
Q3 2013-0.5%
Q2 2013+0.6%
Q1 2013+3.3%
Q4 2012-0.9%
Q3 2012+4.9%
Q2 2012+6.5%
Q1 2012+0.4%
Q4 2011-0.9%
Q3 2011-3.5%
Q2 2011+1.6%
Q1 2010+1.9%
Q1 2011+3.5%
Q2 2010+0.4%
Q4 2008+0.4%
Q4 2010+0.4%
Q3 2010+1.1%
Q3 2009+1.1%
Q4 2009+1.1%

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