Delaware | 000-15867 | 00-0000000 | ||||||||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value per share | CDNS | Nasdaq Global Select Market |
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
CADENCE DESIGN SYSTEMS, INC. | ||||||||
By: | /s/ John M. Wall | |||||||
John M. Wall | ||||||||
Senior Vice President and Chief Financial Officer |
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. |
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 |
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 |
Nine Months Ended |
|||||||||||
September 30, 2024 | September 30, 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 |
2023 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||||||||||||||||||||||||||||||||
Americas | 44 | % | 41 | % | 43 | % | 44 | % | 43 | % | 46 | % | 49 | % | 50 | % | |||||||||||||||||||||||||||||||
China | 17 | % | 18 | % | 17 | % | 15 | % | 17 | % | 12 | % | 12 | % | 13 | % | |||||||||||||||||||||||||||||||
Other Asia | 18 | % | 18 | % | 19 | % | 19 | % | 19 | % | 20 | % | 19 | % | 17 | % | |||||||||||||||||||||||||||||||
Europe, Middle East and Africa | 15 | % | 17 | % | 15 | % | 16 | % | 16 | % | 17 | % | 14 | % | 14 | % | |||||||||||||||||||||||||||||||
Japan | 6 | % | 6 | % | 6 | % | 6 | % | 5 | % | 5 | % | 6 | % | 6 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
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 | % |
Three Months Ending
December 31, 2024
|
Year Ending
December 31, 2024
|
|||||||||||||
Forecast | Forecast | |||||||||||||
GAAP operating margin as a percent of total revenue | 33.2% - 34.2% |
29% - 30% |
||||||||||||
Reconciling items to non-GAAP operating margin as a percent of total revenue: | ||||||||||||||
Stock-based compensation expense | 8% |
8% | ||||||||||||
Amortization of acquired intangibles | 2% | 2% |
||||||||||||
Acquisition and integration-related costs | 2% |
2% |
||||||||||||
Restructuring | 0% | 1% |
||||||||||||
Non-qualified deferred compensation expenses | 0% | 0% | ||||||||||||
Special charges |
0% | 0% | ||||||||||||
Non-GAAP operating margin as a percent of total revenue† | 45.2% - 46.2% |
42% - 43% |
† | 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. |
Three Months Ending
December 31, 2024
|
Year Ending
December 31, 2024
|
|||||||||||||
Forecast | Forecast | |||||||||||||
Diluted net income per share on a GAAP basis | $1.09 to $1.15 |
$3.70 to $3.76 |
||||||||||||
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† | $1.78 to $1.84 |
$5.87 to $5.93 |
† |
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. |
* |
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
Three Months Ending
December 31, 2024
|
Year Ending
December 31, 2024
|
|||||||||||||
($ in millions) | Forecast | Forecast | ||||||||||||
Net income on a GAAP basis | $300 to $316 |
$1,015 to $1,031 |
||||||||||||
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† | $489 to $505 |
$1,609 to $1,625 |
† |
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 REPORTS THIRD QUARTER 2024 | ||||||||
CADENCE DESIGN SYSTEMS, INC. | ||||||||
CFO COMMENTARY |
||||||||
Key Takeaways
• Q3 revenue growth of ~19% year-over-year
• Q3 non-GAAP operating margin of 45%
• Raising midpoint of 2024 non-GAAP EPS outlook to $5.90
|
Q4 2024 Outlook
• Revenue: $1.325 billion - $1.365 billion
• GAAP operating margin: 33.2% - 34.2%
• Non-GAAP operating margin: 45.2% - 46.2%
• GAAP EPS: $1.09 - $1.15
• Non-GAAP EPS: $1.78 - $1.84
• Expect to use approximately $150 million to repurchase Cadence shares in Q4
|
Q3 2024 KEY METRICS |
||||||
• Revenue: $1.215 billion
• GAAP operating margin: 29%
• Non-GAAP operating margin: 45%
• GAAP EPS: $0.87
• Non-GAAP EPS: $1.64
• Operating cash flow: $410 million
| ||||||||
FY 2024 Outlook
• Revenue: $4.61 billion - $4.65 billion
• GAAP operating margin: 29% - 30%
• Non-GAAP operating margin: 42% - 43%
• GAAP EPS: $3.70 - $3.76
• Non-GAAP EPS: $5.87 - $5.93
• Operating cash flow: $1.0 billion - $1.2 billion
• Expect to use approximately 50% of free cash flow to repurchase Cadence shares for the year
|
Financial Results Webcast |
|||||||
Our Q3 2024 financial results webcast will begin October 28, 2024 at 2:00 p.m. (Pacific). The webcast may be accessed at www.cadence.com/cadence/investor_relations. An archive of the webcast will be available on October 28, 2024 until 5:00 p.m. (Pacific) on December 17, 2024. |
||||||||
October 28, 2024 | Cadence Q3 2024 Financial Results | 1 |
Cadence Design Systems, Inc. | ||||||||
(In Millions, except per share data) | 2018 | 2019 | 2020* | 2021 | 2022 | 2023* |
2024E |
||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 2,138 | $ | 2,336 | $ | 2,683 | $ | 2,988 | $ | 3,562 | $ | 4,090 | $4,610- $4,650 |
||||||||||||||||||||||||||||||||||
Revenue growth* | 10% | 9% | 15% | 11% | 19% | 15% |
13% - 14% |
||||||||||||||||||||||||||||||||||||||||
3-year CAGR | 8% | 9% | 11% | 12% | 15% | 15% | ~16% |
||||||||||||||||||||||||||||||||||||||||
3-year CAGR without 53rd week impact | 11% | 16% |
|||||||||||||||||||||||||||||||||||||||||||||
GAAP operating expenses | $ | 1,742 | $ | 1,845 | $ | 2,037 | $ | 2,209 | $ | 2,488 | $ | 2,839 | ~$3,279 |
||||||||||||||||||||||||||||||||||
GAAP operating expense growth | 8% | 6% | 10% | 8% | 13% | 14% |
~15% |
||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating expenses | $ | 1,491 | $ | 1,587 | $ | 1,739 | $ | 1,877 | $ | 2,125 | $ | 2,373 | ~$2,662 |
||||||||||||||||||||||||||||||||||
Non-GAAP operating expense growth | 6% | 6% | 10% | 8% | 13% | 12% |
~12% |
||||||||||||||||||||||||||||||||||||||||
GAAP operating margin** | 19% | 21% | 24% | 26% | 30% | 31% |
29.5 | % | |||||||||||||||||||||||||||||||||||||||
Non-GAAP operating margin** | 30% | 32% | 35% | 37% | 40% | 42% |
42.5 | % | |||||||||||||||||||||||||||||||||||||||
GAAP earnings per share | $ | 1.23 | $ | 3.53 | $ | 2.11 | $ | 2.50 | $ | 3.09 | $ | 3.82 | $3.70 - $3.76 |
||||||||||||||||||||||||||||||||||
Non-GAAP earning per share | $ | 1.87 | $ | 2.20 | $ | 2.80 | $ | 3.29 | $ | 4.27 | $ | 5.15 | $5.87 - $5.93 |
||||||||||||||||||||||||||||||||||
Non-GAAP EPS growth** | 34% | 18% | 27% | 18% | 30% | 21% |
15 | % | |||||||||||||||||||||||||||||||||||||||
3-year Non-GAAP EPS CAGR** | 20% | 22% | 26% | 21% | 25% | 23% |
21 | % | |||||||||||||||||||||||||||||||||||||||
Weighted average shares diluted outstanding | 281.1 | 280.5 | 279.6 | 278.9 | 275.0 | 272.7 |
273 - 275 |
||||||||||||||||||||||||||||||||||||||||
Cash flow from operations | 605 | 730 | 905 | 1,101 | 1,242 | 1,349 |
$1,000 - $1,200 |
||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 62 | 75 | 95 | 65 | 123 | 102 |
~$130 |
||||||||||||||||||||||||||||||||||||||||
(In Millions) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
2024E* |
||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 2,138 | $ | 2,336 | $ | 2,683 | $ | 2,988 | $ | 3,562 | $ | 4,090 | $ | 4,630 | |||||||||||||||||||||||||||||||||
Revenue Growth | 10% | 9% | 15% | 11% | 19% | 15% |
13% |
||||||||||||||||||||||||||||||||||||||||
3-Year Revenue Growth CAGR | 8% | 9% | 11% | 12% | 15% | 15% | 16% |
||||||||||||||||||||||||||||||||||||||||
GAAP operating margin | 19% | 21% | 24% | 26% | 30% | 31% |
29.5% |
||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating margin | 30.2% |
32.1% |
35.2% |
37.2% |
40.3% |
42.0% |
42.5% |
||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (7.8)% |
(7.8)% |
(7.4)% |
(7.0)% |
(7.6)% |
(8.0)% |
(8.5)% |
||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating margin adjusted for stock-based compensation | 22.4% |
24.3% |
27.8% |
30.2% |
32.7% |
34.0% |
34.0% |
||||||||||||||||||||||||||||||||||||||||
GAAP operating income | $ | 396 | $ | 492 | $ | 646 | $ | 779 | $ | 1,074 | $ | 1,251 | $ | 1,351 | |||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 647 | $ | 749 | $ | 944 | $ | 1,111 | $ | 1,436 | $ | 1,717 | $ | 1,968 | |||||||||||||||||||||||||||||||||
Non-GAAP operating income adjusted for stock-based compensation | $ | 479 | $ | 567 | $ | 747 | $ | 901 | $ | 1,166 | $ | 1,391 | $ | 1,575 | |||||||||||||||||||||||||||||||||
October 28, 2024 | Cadence Q3 2024 Financial Results | 2 |
Cadence Design Systems, Inc. | ||||||||
Q4 2023 |
Q3 2024 |
Q4 2024E |
|||||||||||||||||||||
Total Revenue ($ Millions) | $ | 1,069 | $ | 1,215 | $1,325 - $1,365 |
||||||||||||||||||
Q/Q Growth | 15% |
9% - 12% |
|||||||||||||||||||||
Y/Y Growth | 19% |
24% - 28% |
|||||||||||||||||||||
GAAP Operating Margin | 31% |
29% |
33.2% - 34.2% |
||||||||||||||||||||
Non-GAAP Operating Margin | 43% |
45% |
45.2% - 46.2% |
||||||||||||||||||||
GAAP EPS | $ | 1.19 | $ | 0.87 | $1.09 - $1.15 |
||||||||||||||||||
Non-GAAP EPS | $ | 1.38 | $ | 1.64 | $1.78 - $1.84 |
||||||||||||||||||
Previous | Current | ||||||||||||||||||||||
FY 2023 |
FY 2024E |
FY 2024E |
|||||||||||||||||||||
Recurring Revenue | 84% |
80% - 85% |
80% - 85% |
||||||||||||||||||||
Total Revenue ($ Millions) | $ | 4,090 | $4,600 - $4,660 |
$4,610 - $4,650 |
|||||||||||||||||||
Y/Y Growth | 15% |
12% - 14% |
13% - 14% |
||||||||||||||||||||
Revenue from Beginning Backlog | ~75% |
~70% |
~70% |
||||||||||||||||||||
GAAP Operating Margin | 30.6% |
29.7% - 31.3% |
29% - 30% |
||||||||||||||||||||
Non-GAAP Operating Margin | 42.0% |
41.7% - 43.3% |
42% - 43% |
||||||||||||||||||||
GAAP Other Income & Expense ($ Millions) | $ | 31 | $42 - $56 |
$40 - $50 |
|||||||||||||||||||
Non-GAAP Other Income & Expense ($ Millions) | $ | (15) | $(31) - $(45) |
$(25) - $(35) |
|||||||||||||||||||
GAAP Tax Rate | 19% | ~25% |
~27% |
||||||||||||||||||||
Non-GAAP Tax Rate | 17.5% | 16.5% |
16.5% |
||||||||||||||||||||
Weighted Average Diluted Shares Outstanding (Millions) | 272.7 |
273.5 - 275.5 |
273 - 275 |
||||||||||||||||||||
GAAP EPS | $ | 3.82 | $3.82 - $4.02 |
$3.70 - $3.76 |
|||||||||||||||||||
Y/Y Growth | 24% |
0% - 5% |
(3)% - (2)% |
||||||||||||||||||||
Non-GAAP EPS | $ | 5.15 | $5.77 - $5.97 |
$5.87 - $5.93 |
|||||||||||||||||||
Y/Y Growth | 21% |
12% - 16% |
14% - 15% |
||||||||||||||||||||
Cash Flow from Operations ($ Millions) | $ | 1,349 | $1,000 - $1,200 |
$1,000 - $1,200 |
|||||||||||||||||||
DSO | 43 |
~45 | ~45 | ||||||||||||||||||||
Capital Expenditures ($ Millions) | $ | 102 | ~$130 |
~$130 |
|||||||||||||||||||
October 28, 2024 | Cadence Q3 2024 Financial Results | 3 |
Cadence Design Systems, Inc. | ||||||||
(In Billions) | 2020 | 2021 | 2022 | 2023 |
Q3 2024 |
||||||||||||||||||||||||||||||
Backlog | $ | 3.9 | $ | 4.4 | $ | 5.8 | $ | 6.0 | $ | 5.6 | |||||||||||||||||||||||||
(In Millions) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Product and Maintenance | $ | 966 | $ | 982 | $ | 913 | $ | 961 | $ | 1,100 | |||||||||||||||||||||||||
Services | 57 | 87 | 96 | 100 | 115 | ||||||||||||||||||||||||||||||
Total Revenue | $ | 1,023 | $ | 1,069 | $ | 1,009 | $ | 1,061 | $ | 1,215 | |||||||||||||||||||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
Revenue recognized over time | 83 | % | 85 | % | 87 | % | 85 | % | 80 | % | |||||||||||||||||||||||||
Revenue from arrangements with non-cancelable commitments | 2 | % | 2 | % | 3 | % | 3 | % | 2 | % | |||||||||||||||||||||||||
Recurring Revenue | 85 | % | 87 | % | 90 | % | 88 | % | 82 | % | |||||||||||||||||||||||||
Up-Front Revenue | 15 | % | 13 | % | 10 | % | 12 | % | 18 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||
Trailing Twelve Months Ended | |||||||||||||||||||||||||||||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
Recurring Revenue | 84 | % | 84 | % | 87 | % | 87 | % | 86 | % | |||||||||||||||||||||||||
Up-Front Revenue | 16 | % | 16 | % | 13 | % | 13 | % | 14 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||
(% of Total Revenue) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Americas | 43 | % | 44 | % | 46 | % | 49 | % | 50 | % | |||||||||||||||||||||||||
China | 17 | % | 15 | % | 12 | % | 12 | % | 13 | % | |||||||||||||||||||||||||
Other Asia | 19 | % | 19 | % | 20 | % | 19 | % | 17 | % | |||||||||||||||||||||||||
Europe, Middle East and Africa | 15 | % | 16 | % | 17 | % | 14 | % | 14 | % | |||||||||||||||||||||||||
Japan | 6 | % | 6 | % | 5 | % | 6 | % | 6 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(% of Total Revenue) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Custom IC Design and Simulation | 22 | % | 22 | % | 22 | % | 21 | % | 19 | % | |||||||||||||||||||||||||
Digital IC Design and Signoff | 28 | % | 29 | % | 29 | % | 27 | % | 24 | % | |||||||||||||||||||||||||
Functional Verification | 26 | % | 24 | % | 25 | % | 25 | % | 27 | % | |||||||||||||||||||||||||
Core EDA Total |
76 | % | 75 | % | 76 | % | 73 | % | 70 | % | |||||||||||||||||||||||||
IP | 11 | % | 13 | % | 12 | % | 13 | % | 14 | % | |||||||||||||||||||||||||
System Design and Analysis | 13 | % | 12 | % | 12 | % | 14 | % | 16 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
October 28, 2024 | Cadence Q3 2024 Financial Results | 4 |
Cadence Design Systems, Inc. | ||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
GAAP Gross Margin | 89.3 | % | 90.3 | % | 87.6 | % | 86.9 | % | 86.6 | % | |||||||||||||||||||||||||
Non-GAAP Gross Margin | 90.6 | % | 91.7 | % | 89.1 | % | 88.5 | % | 88.6 | % | |||||||||||||||||||||||||
(In Millions) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Total GAAP Costs and Expenses | $ | 730 | $ | 732 | $ | 759 | $ | 767 | $ | 865 | |||||||||||||||||||||||||
Total Non-GAAP Costs and Expenses | $ | 603 | $ | 610 | $ | 627 | $ | 635 | $ | 671 | |||||||||||||||||||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
GAAP Operating Margin | 28.6 | % | 31.5 | % | 24.8 | % | 27.7 | % | 28.8 | % | |||||||||||||||||||||||||
Non-GAAP Operating Margin | 41.1 | % | 42.9 | % | 37.8 | % | 40.1 | % | 44.8 | % | |||||||||||||||||||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
GAAP Net Income Per Share | $ | 0.93 | $ | 1.19 | $ | 0.91 | $ | 0.84 | $ | 0.87 | |||||||||||||||||||||||||
Non-GAAP Net Income Per Share | $ | 1.26 | $ | 1.38 | $ | 1.17 | $ | 1.28 | $ | 1.64 | |||||||||||||||||||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
DSO | 39 |
43 |
36 |
49 |
44 |
||||||||||||||||||||||||||||||
(In Millions) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Net Cash from Operating Activities | $ | 396 | $ | 272 | $ | 253 | $ | 156 | $ | 410 | |||||||||||||||||||||||||
Capital Expenditures | 22 | 34 | 49 | 29 | 27 | ||||||||||||||||||||||||||||||
Free Cash Flow | $ | 374 | $ | 238 | $ | 204 | $ | 127 | $ | 383 | |||||||||||||||||||||||||
(In Millions) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 962 | $ | 1,008 | $ | 1,012 | $ | 1,059 | $ | 2,786 | |||||||||||||||||||||||||
(In Millions) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Debt (principal value) |
$ | 650 | $ | 650 | $ | 650 | $ | 1,350 | $ | 2,850 | |||||||||||||||||||||||||
(In Millions) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
Share Repurchase | $ | 185 | $ | 125 | $ | 125 | $ | 125 | $ | 150 | |||||||||||||||||||||||||
Number of Shares | 0.811 | 0.488 | 0.425 | 0.423 | 0.563 | ||||||||||||||||||||||||||||||
October 28, 2024 | Cadence Q3 2024 Financial Results | 5 |
Cadence Design Systems, Inc. | ||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
Headcount | 11,139 | 11,226 | 11,753 | 12,665 | 12,703 | ||||||||||||||||||||||||||||||
October 28, 2024 | Cadence Q3 2024 Financial Results | 6 |
Cadence Design Systems, Inc. | ||||||||
October 28, 2024 | Cadence Q3 2024 Financial Results | 7 |
Cadence Design Systems, Inc. | ||||||||
(In Millions) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
||||||||||||||||||||||||||||||
GAAP total costs and expenses | $ | 730 | $ | 732 | $ | 759 | $ | 767 | $ | 865 | |||||||||||||||||||||||||
Reconciling items to non-GAAP total costs and expenses | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | (88) | (87) | (88) | (88) | (109) | ||||||||||||||||||||||||||||||
Amortization of acquired intangibles | (15) | (17) | (17) | (20) | (27) | ||||||||||||||||||||||||||||||
Acquisition and integration-related costs | (14) | (13) | (22) | (21) | (29) | ||||||||||||||||||||||||||||||
Restructuring | (12) | 1 | — | — | (25) | ||||||||||||||||||||||||||||||
Non-qualified deferred compensation (expenses) credits | 2 | (6) | (5) | (2) | (4) | ||||||||||||||||||||||||||||||
Special charges |
— | — | — | (1) | — | ||||||||||||||||||||||||||||||
Non-GAAP total costs and expenses* | $ | 603 | $ | 610 | $ | 627 | $ | 635 | $ | 671 | |||||||||||||||||||||||||
* | 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. |
(In Millions) | 2018 | 2019 | 2020* | 2021 | 2022 | 2023 |
2024E |
||||||||||||||||||||||||||||||||||||||||
GAAP total costs and expenses | $ | 1,742 | $ | 1,845 | $ | 2,037 | $ | 2,209 | $ | 2,488 | $ | 2,839 | $ | 3,279 | |||||||||||||||||||||||||||||||||
Reconciling items to non-GAAP total costs and expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | (168) | (182) | (197) | (210) | (270) | (326) | (393) | ||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | (53) | (53) | (64) | (67) | (60) | (62) | (91) | ||||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | (20) | (8) | (23) | (23) | (41) | (56) | (96) | ||||||||||||||||||||||||||||||||||||||||
Restructuring | (11) | (9) | (9) | 1 | — | (11) | (25) | ||||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation (expenses) credits | 1 | (5) | (5) | (6) | 8 | (11) | (11) | ||||||||||||||||||||||||||||||||||||||||
Special charges** | — | (1) | — | (27) | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP total costs and expenses*** | $ | 1,491 | $ | 1,587 | $ | 1,739 | $ | 1,877 | $ | 2,125 | $ | 2,373 | $ | 2,662 | |||||||||||||||||||||||||||||||||
* | Fiscal 2020 was a 53-week year. | ||||
** | 2021 includes costs related to a voluntary retirement program. | ||||
*** | 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. |
October 28, 2024 | Cadence Q3 2024 Financial Results | 8 |
Cadence Design Systems, Inc. | ||||||||
(In Millions) | 2018 | 2019 | 2020* | 2021 | 2022 | 2023 |
2024E |
||||||||||||||||||||||||||||||||||||||||
GAAP operating income |
$ | 396 | $ | 492 | $ | 646 | $ | 779 | $ | 1,074 | $ | 1,251 | $ | 1,351 | |||||||||||||||||||||||||||||||||
Reconciling items to non-GAAP operating income |
|||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 168 | 182 | 197 | 210 | 270 | 326 | 393 | ||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 53 | 53 | 64 | 67 | 60 | 62 | 91 | ||||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 20 | 8 | 23 | 23 | 41 | 56 | 96 | ||||||||||||||||||||||||||||||||||||||||
Restructuring | 11 | 9 | 9 | (1) | — | 11 | 25 | ||||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) |
(1) | 5 | 5 | 6 | (8) | 11 | 11 | ||||||||||||||||||||||||||||||||||||||||
Special charges** | — | 1 | — | 27 | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income*** |
$ | 647 | $ | 749 | $ | 944 | $ | 1,111 | $ | 1,436 | $ | 1,717 | $ | 1,968 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | (168) | (182) | (197) | (210) | (270) | (326) | $ | (393) | |||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income adjusted for stock-based compensation*** |
$ | 479 | $ | 567 | $ | 747 | $ | 901 | $ | 1,166 | $ | 1,391 | $ | 1,575 | |||||||||||||||||||||||||||||||||
* | Fiscal 2020 was a 53-week year. | ||||
** | 2021 includes costs related to a voluntary retirement program. | ||||
*** | 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. |
October 28, 2024 | Cadence Q3 2024 Financial Results | 9 |
Cadence Design Systems, Inc. | ||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|||||||||||||||||||||||||||||||
GAAP gross margin as a percent of total revenue | 89.3% |
90.3% |
87.6% |
86.9% |
86.6% |
||||||||||||||||||||||||||||||
Reconciling items to non-GAAP gross margin as a percent of total revenue | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 0.2% | 0.3% |
0.3% |
0.3% |
0.3% |
||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 1.1% | 1.1% | 1.1% | 1.2% |
1.5% |
||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 0.0% | 0.0% | 0.1% |
0.1% |
0.2% |
||||||||||||||||||||||||||||||
Non-GAAP gross margin as a percent of total revenue* | 90.6% |
91.7% |
89.1% |
88.5% |
88.6% |
||||||||||||||||||||||||||||||
* | 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. |
October 28, 2024 | Cadence Q3 2024 Financial Results | 10 |
Cadence Design Systems, Inc. | ||||||||
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024E |
|||||||||||||||||||||||||||||||||||||||
GAAP operating margin as a percent of total revenue | 29% |
31% |
25% |
28% |
29% |
33.2% - 34.2% |
||||||||||||||||||||||||||||||||||||||
Reconciling items to non-GAAP operating margin as a percent of total revenue | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 9% |
8% |
9% |
8% |
9% |
8% |
||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 1% |
2% |
2% |
2% |
2% |
2% |
||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 1% | 1% | 2% |
2% |
3% |
2% |
||||||||||||||||||||||||||||||||||||||
Restructuring | 1% |
0% |
0% |
0% |
2% |
0% |
||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | 0% | 1% |
0% |
0% |
0% |
0% | ||||||||||||||||||||||||||||||||||||||
Special charges |
0% | 0% | 0% | 0% | 0% | 0% | ||||||||||||||||||||||||||||||||||||||
Non-GAAP operating margin as a percent of total revenue* | 41% |
43% |
38% |
40% |
45% |
45.2% - 46.2% |
||||||||||||||||||||||||||||||||||||||
* | 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. |
2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
2024E |
||||||||||||||||||||||||||||||||||||||||||||
GAAP operating margin as a percent of total revenue | 19% | 21% | 24% | 26% | 30% | 31% |
29% - 30% |
|||||||||||||||||||||||||||||||||||||||||||
Reconciling items to non-GAAP operating margin as a percent of total revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 8% | 8% | 7% | 7% | 8% | 8% |
8% |
|||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 2% | 2% | 3% | 2% | 2% | 2% |
2% |
|||||||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 1% | 0% | 1% | 1% | 1% | 1% |
2% |
|||||||||||||||||||||||||||||||||||||||||||
Restructuring | 0% | 1% | 0% | 0% | 0% | 0% |
1% |
|||||||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | 0% | 0% | 0% | 0% | (1)% | 0% |
0% | |||||||||||||||||||||||||||||||||||||||||||
Special charges * | 0% | 0% | 0% | 1% | 0% | 0% | 0% | |||||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating margin as a percent of total revenue** | 30% | 32% | 35% | 37% | 40% | 42% |
42% - 43% |
|||||||||||||||||||||||||||||||||||||||||||
* | 2021 includes costs related to a voluntary retirement program. | ||||
** | 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. |
October 28, 2024 | Cadence Q3 2024 Financial Results | 11 |
Cadence Design Systems, Inc. | ||||||||
(In Thousands, Except Per Share Data) | Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024E |
||||||||||||||||||||||||||||||||||||||
Diluted net income per share on a GAAP basis | $ | 0.93 | $ | 1.19 | $ | 0.91 | $ | 0.84 | $ | 0.87 | $1.09 - $1.15 |
|||||||||||||||||||||||||||||||||
Stock-based compensation expense | 0.32 | 0.32 | 0.32 | 0.32 | 0.40 | 0.39 | ||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 0.06 | 0.06 | 0.06 | 0.07 | 0.10 | 0.10 | ||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 0.05 | 0.04 | 0.08 | 0.08 | 0.11 | 0.09 | ||||||||||||||||||||||||||||||||||||||
Restructuring | 0.04 | — | — | — | 0.09 | — | ||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | — | 0.02 | 0.02 | 0.01 | 0.01 | — | ||||||||||||||||||||||||||||||||||||||
Special charges |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets** | (0.04) | (0.10) | (0.22) | (0.10) | 0.04 | — | ||||||||||||||||||||||||||||||||||||||
Income tax effect of non-GAAP adjustments | (0.10) | (0.15) | — | 0.06 | 0.02 | 0.11 | ||||||||||||||||||||||||||||||||||||||
Diluted net income per share on a non-GAAP basis* | $ | 1.26 | $ | 1.38 | $ | 1.17 | $ | 1.28 | $ | 1.64 | $1.78 - $1.84 |
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Shares used in calculation of diluted net income per share | 272,427 | 272,419 | 273,544 | 273,520 | 273,958 | |||||||||||||||||||||||||||||||||||||||
* | 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. |
October 28, 2024 | Cadence Q3 2024 Financial Results | 12 |
Cadence Design Systems, Inc. | ||||||||
(In Thousands, Except Per Share Data) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
2024E |
||||||||||||||||||||||||||||||||||||||||
Diluted net income per share on a GAAP basis | $ | 1.23 | $ | 3.53 | $ | 2.11 | $ | 2.50 | $ | 3.09 | $ | 3.82 | $3.70 - $3.76 |
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Stock-based compensation expense | 0.60 | 0.65 | 0.71 | 0.75 | 0.98 | 1.19 | 1.44 | ||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 0.19 | 0.19 | 0.23 | 0.24 | 0.22 | 0.23 | 0.33 | ||||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 0.07 | 0.03 | 0.08 | 0.08 | 0.15 | 0.21 | 0.35 | ||||||||||||||||||||||||||||||||||||||||
Restructuring | 0.04 | 0.03 | 0.03 | — | — | 0.04 | 0.09 | ||||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | (0.01) | 0.02 | 0.02 | 0.02 | (0.03) | 0.04 | 0.04 | ||||||||||||||||||||||||||||||||||||||||
Special charges** | — | — | — | 0.10 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets*** | — | (0.01) | — | (0.03) | 0.05 | (0.17) | (0.27) | ||||||||||||||||||||||||||||||||||||||||
Income tax benefit related to intercompany transfers of certain intellectual property rights | — | (2.05) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Income tax effect of non-GAAP adjustments | (0.25) | (0.19) | (0.38) | (0.37) | (0.19) | (0.21) | 0.19 | ||||||||||||||||||||||||||||||||||||||||
Diluted net income per share on a non-GAAP basis* | $ | 1.87 | $ | 2.20 | $ | 2.80 | $ | 3.29 | $ | 4.27 | $ | 5.15 | $5.87 - $5.93 |
||||||||||||||||||||||||||||||||||
Shares used in calculation of diluted net income per share | 281,144 | 280,515 | 279,641 | 278,858 | 275,011 | 272,748 | 273 - 275M |
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* | 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. | ||||
** | 2021 includes costs related to a voluntary retirement program. | ||||
*** | 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. |
October 28, 2024 | Cadence Q3 2024 Financial Results | 13 |
Cadence Design Systems, Inc. | ||||||||
(In Millions) | FY 2022 |
FY 2023 |
FY 2024E |
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GAAP total other income and expense | $ | (28) | $ | 31 | $40 - $50 |
|||||||||||||||||||||
Reconciling items to non-GAAP total income and expense | ||||||||||||||||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets** | 14 | (46) | (75) | |||||||||||||||||||||||
Non-GAAP total other income and expense* | $ | (14) | $ | (15) | $(25) - $(35) |
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* | 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. |
October 28, 2024 | Cadence Q3 2024 Financial Results | 14 |