NASDAQ$SNPS

Synopsys Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Synopsys' Q4 2023 financial results were released, demonstrating record quarterly revenue and exceeding earnings guidance.

Synopsys reported record quarterly revenue of $1.599 billion, a 25% increase year-over-year. The company's GAAP earnings per diluted share were $2.26, and non-GAAP earnings per diluted share reached $3.17, surpassing the high end of guidance. For fiscal year 2023, revenue was $5.843 billion, with GAAP EPS of $7.92 and non-GAAP EPS of $11.19, also exceeding guidance.

  • Synopsys achieved record quarterly revenue of $1.599 billion, up 25% year-over-year.
  • GAAP earnings per diluted share for the quarter were $2.26, while non-GAAP EPS was $3.17, exceeding guidance.
  • The company's fiscal year revenue reached $5.843 billion, a 15% increase from the previous year.
  • GAAP EPS for fiscal year 2023 was $7.92, and non-GAAP EPS was $11.19, both exceeding guidance.

Headline financials

Total Revenue

$1.6B

Previous: $1.28B+24.5%
EPS (adj)

$3.17

Previous: $1.91+66.0%
Capital Expenditures

-$53.1M

Previous: $33.7M-257.8%
Free Cash Flow

$346M

Previous: $360M-3.8%
Net Income

$346M

Previous: $154M+125.7%
Operating Income

$431M

Previous: $217M+98.1%
Gross Profit

$1.29B

Previous: $1B+28.5%
Cash & Equivalents

$1.59B

Previous: $1.42B+12.2%
Total Assets

$10.3B

Previous: $9.42B+9.7%
R&D Expense

$488M

No prior period
Stock-Based Comp

$141M

Previous: $126M+12.5%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$1.6B

Q4 2023+24.5%vs Q4 2022
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 first quarter and full fiscal year 2024. The fiscal year targets include the impact of an extra week in fiscal year 2024, which will be included in the first quarter of fiscal year 2024.

Tailwinds

  • Revenue between $1.630 billion and $1.660 billion for the first quarter of fiscal year 2024.
  • Revenue between $6.570 billion and $6.630 billion for the full fiscal year 2024.
  • GAAP EPS between $2.40 and $2.50 for the first quarter of fiscal year 2024.
  • GAAP EPS between $9.07 and $9.25 for the full fiscal year 2024.
  • Non-GAAP EPS between $3.40 and $3.45 for the first quarter of fiscal year 2024.

Headwinds

  • GAAP expenses between $1.217 billion and $1.237 billion for the first quarter of fiscal year 2024.
  • GAAP expenses between $4.995 billion and $5.052 billion for the full fiscal year 2024.
  • Non-GAAP expenses between $1.017 billion and $1.027 billion for the first quarter of fiscal year 2024.
  • Non-GAAP expenses between $4.140 billion and $4.180 billion for the full fiscal year 2024.
  • Assumes no further changes to export control restrictions or the current U.S. government “Entity List” restrictions.

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 Q4 2023

Historical avgQ4 2023

+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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