Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at
investor.synopsys.com. Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2025 in February 2025.
Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys' corporate website at
www.synopsys.com (collectively, the "Earnings Materials"), represent Synopsys' expectations and beliefs as of December 4, 2024. Although these Earnings Materials will remain available on Synopsys' website through the date of the earnings call for the first quarter of fiscal year 2025, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law.
Availability of Final Financial Statements
Synopsys will include final financial statements for the fiscal year 2024 in its annual report on Form 10-K to be filed on or before January 2, 2025.
About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq:
SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at
www.synopsys.com.
Reconciliation of Fourth Quarter and Fiscal Year 2024 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2024 Results(1) | ||||
(unaudited and in thousands, except per share amounts) | ||||
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| Three Months Ended | Twelve Months Ended | ||
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| October 31, | October 31, | ||
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| 2024 | 2023 | 2024 | 2023 |
GAAP net income from continuing operations attributed to Synopsys | $ 279,281 | $ 346,051 | $ 1,441,710 | $ 1,227,045 |
Adjustments: |
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Amortization of acquired intangible assets | 54,258 | 14,886 | 104,220 | 50,477 |
Stock-based compensation | 165,116 | 128,286 | 656,632 | 511,730 |
Acquisition/divestiture related items | 62,428 | 4,016 | 172,638 | 13,831 |
Restructuring charges | — | (1,348) | — | 53,091 |
Gain on sale of strategic investments | — | — | (55,077) | — |
Tax settlement | — | — | — | (23,752) |
Tax adjustments | (31,158) | (27,753) | (262,322) | (196,471) |
Non-GAAP net income from continuing operations attributed to Synopsys | $ 529,925 | $ 464,138 | $ 2,057,801 | $ 1,635,951 |
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| Three Months Ended | Twelve Months Ended | ||
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| October 31, | October 31, | ||
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| 2024 | 2023 | 2024 | 2023 |
| GAAP net income from continuing operations per diluted share attributed to Synopsys | $ 1.79 | $ 2.23 | $ 9.25 | $ 7.91 |
| Adjustments: |
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| Amortization of acquired intangible assets | 0.35 | 0.10 | 0.67 | 0.33 |
| Stock-based compensation | 1.06 | 0.83 | 4.21 | 3.30 |
| Acquisition/divestiture related items | 0.40 | 0.03 | 1.11 | 0.09 |
| Restructuring charges | — | (0.01) | — | 0.34 |
| Gain on sale of strategic investments | — | — | (0.35) | — |
| Tax settlement | — | — | — | (0.15) |
| Tax adjustments | (0.20) | (0.18) | (1.69) | (1.28) |
| Non-GAAP net income from continuing operations per diluted share attributed to Synopsys | $ 3.40 | $ 3.00 | $ 13.20 | $ 10.54 |
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| Shares used in computing net income per diluted share amounts: | 155,991 | 154,845 | 155,944 | 155,195 |
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| (1) Synopsys' fourth quarter of fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation
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| GAAP to Non-GAAP Tax Rate Reconciliation (1)(2) | |
| (unaudited) | |
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| Twelve Months Ended |
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| October 31, 2024 |
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| GAAP effective tax rate | 6.6 % |
| Stock-based compensation | 2.9 % |
| Income tax adjustments (3) | 5.5 % |
| Non-GAAP effective tax rate | 15.0 % |
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| (1) Synopsys' fiscal year 2024 ended on November 2, 2024. For presentation purposes, we refer to
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| (2) Presented on a continuing operations basis. | |
| (3) The adjustments are primarily related to the differences in the tax rate effect of certain deductions, such as the deduction for foreign-derived intangible income and credits. | |
