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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Cadence Design Systems Inc | NASDAQ:CDNS | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-7.34 | -2.76% | 259.00 | 258.40 | 259.49 | 268.32 | 258.16 | 267.00 | 3,427,727 | 00:56:00 |
(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 | ||||||||||||
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 | |||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||
(unaudited) | ||||||||||||||
GAAP operating margin as a percent of total revenue | 28% | 31% | ||||||||||||
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% | 1% | ||||||||||||
Restructuring | 0% | 0% | ||||||||||||
Non-qualified deferred compensation expenses | 0% | 0% | ||||||||||||
Special charges | 0% | 0% | ||||||||||||
Non-GAAP operating margin as a percent of total revenue | 40% | 42% |
Net Income Reconciliation | Three Months Ended | |||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||
(in thousands) | (unaudited) | |||||||||||||
Net income on a GAAP basis | $ | 229,520 | $ | 221,120 | ||||||||||
Stock-based compensation expense | 87,569 | 76,608 | ||||||||||||
Amortization of acquired intangibles | 20,155 | 14,920 | ||||||||||||
Acquisition and integration-related costs | 20,715 | 13,946 | ||||||||||||
Restructuring | (33) | — | ||||||||||||
Non-qualified deferred compensation expenses | 1,697 | 3,155 | ||||||||||||
Special charges | 1,233 | — | ||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | (27,048) | (2,508) | ||||||||||||
Income tax effect of non-GAAP adjustments | 16,890 | 6,509 | ||||||||||||
Net income on a non-GAAP basis | $ | 350,698 | $ | 333,750 |
* | 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 | |||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||
(in thousands, except per share data) | (unaudited) | |||||||||||||
Diluted net income per share on a GAAP basis | $ | 0.84 | $ | 0.81 | ||||||||||
Stock-based compensation expense | 0.32 | 0.28 | ||||||||||||
Amortization of acquired intangibles | 0.07 | 0.06 | ||||||||||||
Acquisition and integration-related costs | 0.08 | 0.05 | ||||||||||||
Restructuring | — | — | ||||||||||||
Non-qualified deferred compensation expenses | 0.01 | 0.01 | ||||||||||||
Special charges | — | — | ||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | (0.10) | (0.01) | ||||||||||||
Income tax effect of non-GAAP adjustments | 0.06 | 0.02 | ||||||||||||
Diluted net income per share on a non-GAAP basis | $ | 1.28 | $ | 1.22 | ||||||||||
Shares used in calculation of diluted net income per share | 273,520 | 272,996 | ||||||||||||
* | 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. |
June 30, 2024 | December 31, 2023 | |||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 1,058,955 | $ | 1,008,152 | ||||||||||
Receivables, net | 564,851 | 489,224 | ||||||||||||
Inventories | 171,508 | 181,661 | ||||||||||||
Prepaid expenses and other | 401,074 | 297,180 | ||||||||||||
Total current assets | 2,196,388 | 1,976,217 | ||||||||||||
Property, plant and equipment, net | 449,422 | 403,213 | ||||||||||||
Goodwill | 2,417,747 | 1,535,845 | ||||||||||||
Acquired intangibles, net | 664,038 | 336,843 | ||||||||||||
Deferred taxes | 892,963 | 880,001 | ||||||||||||
Other assets | 605,183 | 537,372 | ||||||||||||
Total assets | $ | 7,225,741 | $ | 5,669,491 | ||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | 349,732 | $ | 349,285 | ||||||||||
Accounts payable and accrued liabilities | 505,392 | 576,558 | ||||||||||||
Current portion of deferred revenue | 678,598 | 665,024 | ||||||||||||
Total current liabilities | 1,533,722 | 1,590,867 | ||||||||||||
Long-term liabilities: | ||||||||||||||
Long-term portion of deferred revenue | 88,823 | 98,931 | ||||||||||||
Long-term debt | 998,935 | 299,771 | ||||||||||||
Other long-term liabilities | 343,369 | 275,651 | ||||||||||||
Total long-term liabilities | 1,431,127 | 674,353 | ||||||||||||
Stockholders’ equity | 4,260,892 | 3,404,271 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 7,225,741 | $ | 5,669,491 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Product and maintenance | $ | 960,457 | $ | 922,790 | $ | 1,873,842 | $ | 1,886,532 | ||||||||||||||||||
Services | 100,224 | 53,789 | 195,942 | 111,737 | ||||||||||||||||||||||
Total revenue | 1,060,681 | 976,579 | 2,069,784 | 1,998,269 | ||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Cost of product and maintenance | 94,363 | 74,218 | 169,758 | 174,456 | ||||||||||||||||||||||
Cost of services | 44,907 | 22,640 | 94,709 | 46,874 | ||||||||||||||||||||||
Marketing and sales | 186,725 | 167,070 | 367,314 | 333,736 | ||||||||||||||||||||||
Research and development | 370,740 | 354,416 | 749,698 | 704,711 | ||||||||||||||||||||||
General and administrative | 63,436 | 54,605 | 132,152 | 108,132 | ||||||||||||||||||||||
Amortization of acquired intangibles | 6,667 | 4,302 | 12,074 | 8,569 | ||||||||||||||||||||||
Restructuring | (33) | — | 247 | — | ||||||||||||||||||||||
Total costs and expenses | 766,805 | 677,251 | 1,525,952 | 1,376,478 | ||||||||||||||||||||||
Income from operations | 293,876 | 299,328 | 543,832 | 621,791 | ||||||||||||||||||||||
Interest expense | (12,905) | (8,877) | (21,597) | (18,137) | ||||||||||||||||||||||
Other income, net | 34,739 | 7,973 | 103,518 | 16,257 | ||||||||||||||||||||||
Income before provision for income taxes | 315,710 | 298,424 | 625,753 | 619,911 | ||||||||||||||||||||||
Provision for income taxes | 86,190 | 77,304 | 148,590 | 156,987 | ||||||||||||||||||||||
Net income | $ | 229,520 | $ | 221,120 | $ | 477,163 | $ | 462,924 | ||||||||||||||||||
Net income per share - basic | $ | 0.85 | $ | 0.82 | $ | 1.77 | $ | 1.72 | ||||||||||||||||||
Net income per share - diluted | $ | 0.84 | $ | 0.81 | $ | 1.74 | $ | 1.70 | ||||||||||||||||||
Weighted average common shares outstanding - basic | 270,912 | 269,714 | 270,259 | 269,607 | ||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 273,520 | 272,996 | 273,532 | 273,078 |
Six Months Ended | |||||||||||
June 30, 2024 | June 30, 2023 | ||||||||||
Cash and cash equivalents at beginning of period | $ | 1,008,152 | $ | 882,325 | |||||||
Cash flows from operating activities: | |||||||||||
Net income | 477,163 | 462,924 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 87,202 | 70,432 | |||||||||
Amortization of debt discount and fees | 684 | 626 | |||||||||
Stock-based compensation | 175,698 | 150,896 | |||||||||
(Gain) loss on investments, net | (80,599) | 554 | |||||||||
Deferred income taxes | (9,506) | (20,171) | |||||||||
Provisions for losses on receivables | 614 | 720 | |||||||||
ROU asset amortization and change in operating lease liabilities | (1,410) | (3,543) | |||||||||
Other non-cash items | 212 | 1,834 | |||||||||
Changes in operating assets and liabilities, net of effect of acquired businesses: | |||||||||||
Receivables | (49,384) | 41,208 | |||||||||
Inventories | (15,978) | (16,981) | |||||||||
Prepaid expenses and other | (39,868) | 50,793 | |||||||||
Other assets | (38,967) | (31,838) | |||||||||
Accounts payable and accrued liabilities | (93,078) | (37,049) | |||||||||
Deferred revenue | (18,599) | 1,269 | |||||||||
Other long-term liabilities | 15,013 | 9,497 | |||||||||
Net cash provided by operating activities | 409,197 | 681,171 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of investments | (2,095) | (29,212) | |||||||||
Proceeds from the sale and maturity of investments | 43,864 | 1,505 | |||||||||
Purchases of property, plant and equipment | (78,800) | (46,655) | |||||||||
Cash paid in business combinations, net of cash acquired | (720,821) | (55,379) | |||||||||
Net cash used for investing activities | (757,852) | (129,741) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving credit facility | — | 50,000 | |||||||||
Payments on revolving credit facility | — | (150,000) | |||||||||
Proceeds from term loan | 700,000 | — | |||||||||
Payment of debt issuance costs | (944) | — | |||||||||
Proceeds from issuance of common stock | 133,272 | 77,502 | |||||||||
Stock received for payment of employee taxes on vesting of restricted stock | (166,903) | (78,988) | |||||||||
Payments for repurchases of common stock | (250,010) | (450,119) | |||||||||
Net cash provided by (used for) financing activities | 415,415 | (551,605) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (15,957) | (8,225) | |||||||||
Increase (decrease) in cash and cash equivalents | 50,803 | (8,400) | |||||||||
Cash and cash equivalents at end of period | $ | 1,058,955 | $ | 873,925 |
2023 | 2024 | ||||||||||||||||||||||||||||||||||||||||
GEOGRAPHY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | ||||||||||||||||||||||||||||||||||
Americas | 44 | % | 41 | % | 43 | % | 44 | % | 43 | % | 46 | % | 49 | % | |||||||||||||||||||||||||||
China | 17 | % | 18 | % | 17 | % | 15 | % | 17 | % | 12 | % | 12 | % | |||||||||||||||||||||||||||
Other Asia | 18 | % | 18 | % | 19 | % | 19 | % | 19 | % | 20 | % | 19 | % | |||||||||||||||||||||||||||
Europe, Middle East and Africa | 15 | % | 17 | % | 15 | % | 16 | % | 16 | % | 17 | % | 14 | % | |||||||||||||||||||||||||||
Japan | 6 | % | 6 | % | 6 | % | 6 | % | 5 | % | 5 | % | 6 | % | |||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
2023 | 2024 | ||||||||||||||||||||||||||||||||||||||||
PRODUCT CATEGORY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | ||||||||||||||||||||||||||||||||||
Custom IC Design and Simulation | 20 | % | 22 | % | 22 | % | 22 | % | 22 | % | 22 | % | 21 | % | |||||||||||||||||||||||||||
Digital IC Design and Signoff | 25 | % | 27 | % | 28 | % | 29 | % | 27 | % | 29 | % | 27 | % | |||||||||||||||||||||||||||
Functional Verification, including Emulation and Prototyping Hardware | 32 | % | 27 | % | 26 | % | 24 | % | 27 | % | 25 | % | 25 | % | |||||||||||||||||||||||||||
IP | 11 | % | 11 | % | 11 | % | 13 | % | 12 | % | 12 | % | 13 | % | |||||||||||||||||||||||||||
System Design and Analysis | 12 | % | 13 | % | 13 | % | 12 | % | 12 | % | 12 | % | 14 | % | |||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ending September 30, 2024 | Year Ending December 31, 2024 | |||||||||||||
Forecast | Forecast | |||||||||||||
GAAP operating margin as a percent of total revenue | 27.7% - 29.3% | 29.7% - 31.3% | ||||||||||||
Reconciling items to non-GAAP operating margin as a percent of total revenue: | ||||||||||||||
Stock-based compensation expense | 9% | 8% | ||||||||||||
Amortization of acquired intangibles | 2% | 2% | ||||||||||||
Acquisition and integration-related costs | 2% | 2% | ||||||||||||
Non-qualified deferred compensation expenses | 0% | 0% | ||||||||||||
Non-GAAP operating margin as a percent of total revenue† | 40.7% - 42.3% | 41.7% - 43.3% |
† | 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 September 30, 2024 | Year Ending December 31, 2024 | |||||||||||||
Forecast | Forecast | |||||||||||||
Diluted net income per share on a GAAP basis | $0.83 to $0.93 | $3.82 to $4.02 | ||||||||||||
Stock-based compensation expense | 0.38 | 1.43 | ||||||||||||
Amortization of acquired intangibles | 0.10 | 0.33 | ||||||||||||
Acquisition and integration-related costs | 0.10 | 0.34 | ||||||||||||
Non-qualified deferred compensation expenses | — | 0.02 | ||||||||||||
Special charges | — | — | ||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | — | (0.32) | ||||||||||||
Income tax effect of non-GAAP adjustments | (0.02) | 0.15 | ||||||||||||
Diluted net income per share on a non-GAAP basis† | $1.39 to $1.49 | $5.77 to $5.97 |
† | The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. |
* | Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
Three Months Ending September 30, 2024 | Year Ending December 31, 2024 | |||||||||||||
($ in millions) | Forecast | Forecast | ||||||||||||
Net income on a GAAP basis | $228 to $256 | $1,049 to $1,103 | ||||||||||||
Stock-based compensation expense | 106 | 391 | ||||||||||||
Amortization of acquired intangibles | 26 | 90 | ||||||||||||
Acquisition and integration-related costs | 27 | 93 | ||||||||||||
Non-qualified deferred compensation expenses | — | 6 | ||||||||||||
Special charges | — | 1 | ||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | — | (87) | ||||||||||||
Income tax effect of non-GAAP adjustments | (5) | 41 | ||||||||||||
Net income on a non-GAAP basis† | $382 to $410 | $1,584 to $1,638 |
† | 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 SECOND QUARTER 2024 | ||||||||
CADENCE DESIGN SYSTEMS, INC. | ||||||||
CFO COMMENTARY | ||||||||
Key Takeaways • Annual revenue growth outlook is now 13%, including $40 million from BETA CAE at the midpoint • Annual non-GAAP operating margin outlook remains 42.5% • Q2 ending backlog remains ~$6.0B | Q3 2024 Outlook • Revenue: $1.165 billion - $1.195 billion • GAAP operating margin: 27.7% - 29.3% • Non-GAAP operating margin: 40.7% - 42.3% • GAAP EPS: $0.83 - $0.93 • Non-GAAP EPS: $1.39 - $1.49 • Expect to use approximately $150 million to repurchase Cadence shares in Q3 | Q2 2024 KEY METRICS | ||||||
• Revenue: $1.061 billion • GAAP operating margin: 28% • Non-GAAP operating margin: 40% • GAAP EPS: $0.84 • Non-GAAP EPS: $1.28 • Operating cash flow: $156 million | ||||||||
FY 2024 Outlook • Revenue: $4.60 billion - $4.66 billion • GAAP operating margin: 29.7% - 31.3% • Non-GAAP operating margin: 41.7% - 43.3% • GAAP EPS: $3.82 - $4.02 • Non-GAAP EPS: $5.77 - $5.97 • 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 Q2 2024 financial results webcast will begin July 22, 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 July 22, 2024 until 5:00 p.m. (Pacific) on September 16, 2024. | ||||||||
July 22, 2024 | Cadence Q2 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 | $4,600- $4,660 | ||||||||||||||||||||||||||||||||||
Revenue growth* | 10% | 9% | 15% | 11% | 19% | 15% | 12% - 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 | ~$3,244 | ||||||||||||||||||||||||||||||||||
GAAP operating expense growth | 8% | 6% | 10% | 8% | 13% | 14% | ~14% | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating expenses | $ | 1,491 | $ | 1,587 | $ | 1,739 | $ | 1,877 | $ | 2,125 | $ | 2,373 | ~$2,663 | ||||||||||||||||||||||||||||||||||
Non-GAAP operating expense growth | 6% | 6% | 10% | 8% | 13% | 12% | ~12% | ||||||||||||||||||||||||||||||||||||||||
GAAP operating margin** | 19% | 21% | 24% | 26% | 30% | 31% | 30.5 | % | |||||||||||||||||||||||||||||||||||||||
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 | $3.82 - $4.02 | ||||||||||||||||||||||||||||||||||
Non-GAAP earning per share | $ | 1.87 | $ | 2.20 | $ | 2.80 | $ | 3.29 | $ | 4.27 | $ | 5.15 | $5.77 - $5.97 | ||||||||||||||||||||||||||||||||||
Non-GAAP EPS growth** | 34% | 18% | 27% | 18% | 30% | 21% | 14 | % | |||||||||||||||||||||||||||||||||||||||
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 | 273.5 - 275.5 | ||||||||||||||||||||||||||||||||||||||||
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% | 30.5% | ||||||||||||||||||||||||||||||||||||||||
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)% | (8.4)% | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating margin adjusted for stock-based compensation | 22.4% | 24.3% | 27.8% | 30.2% | 32.7% | 34.0% | 34.1% | ||||||||||||||||||||||||||||||||||||||||
GAAP operating income | $ | 396 | $ | 492 | $ | 646 | $ | 779 | $ | 1,074 | $ | 1,251 | $ | 1,386 | |||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 647 | $ | 749 | $ | 944 | $ | 1,111 | $ | 1,436 | $ | 1,717 | $ | 1,967 | |||||||||||||||||||||||||||||||||
Non-GAAP operating income adjusted for stock-based compensation | $ | 479 | $ | 567 | $ | 747 | $ | 901 | $ | 1,166 | $ | 1,391 | $ | 1,576 | |||||||||||||||||||||||||||||||||
July 22, 2024 | Cadence Q2 2024 Financial Results | 2 |
Cadence Design Systems, Inc. | ||||||||
Q3 2023 | Q2 2024 | Q3 2024E | |||||||||||||||||||||
Total Revenue ($ Millions) | $ | 1,023 | $ | 1,061 | $1,165 - $1,195 | ||||||||||||||||||
Q/Q Growth | 5% | 10% - 13% | |||||||||||||||||||||
Y/Y Growth | 9% | 14% - 17% | |||||||||||||||||||||
GAAP Operating Margin | 29% | 28% | 27.7% - 29.3% | ||||||||||||||||||||
Non-GAAP Operating Margin | 41% | 40% | 40.7% - 42.3% | ||||||||||||||||||||
GAAP EPS | $ | 0.93 | $ | 0.84 | $0.83 - $0.93 | ||||||||||||||||||
Non-GAAP EPS | $ | 1.26 | $ | 1.28 | $1.39 - $1.49 | ||||||||||||||||||
Previous | Current | ||||||||||||||||||||||
FY 2023 | FY 2024E | FY 2024E | |||||||||||||||||||||
Recurring Revenue | 84% | 80% - 85% | 80% - 85% | ||||||||||||||||||||
Total Revenue ($ Millions) | $ | 4,090 | $4,560 - $4,620 | $4,600 - $4,660 | |||||||||||||||||||
Y/Y Growth | 15% | 11% - 13% | 12% - 14% | ||||||||||||||||||||
Revenue from Beginning Backlog | ~75% | ~70% | ~70% | ||||||||||||||||||||
GAAP Operating Margin | 30.6% | 31% - 32% | 29.7% - 31.3% | ||||||||||||||||||||
Non-GAAP Operating Margin | 42.0% | 42% - 43% | 41.7% - 43.3% | ||||||||||||||||||||
GAAP Other Income & Expense ($ Millions) | $ | 31 | $49 - $55 | $42 - $56 | |||||||||||||||||||
Non-GAAP Other Income & Expense ($ Millions) | $ | (15) | $(5) - $(11) | $(31) - $(45) | |||||||||||||||||||
GAAP Tax Rate | 19% | ~25% | ~25% | ||||||||||||||||||||
Non-GAAP Tax Rate | 17.5% | 16.5% | 16.5% | ||||||||||||||||||||
Weighted Average Diluted Shares Outstanding (Millions) | 272.7 | 272.5 - 274.5 | 273.5 - 275.5 | ||||||||||||||||||||
GAAP EPS | $ | 3.82 | $4.04 - $4.14 | $3.82 - $4.02 | |||||||||||||||||||
Y/Y Growth | 24% | 6% - 8% | 0% - 5% | ||||||||||||||||||||
Non-GAAP EPS | $ | 5.15 | $5.88 - $5.98 | $5.77 - $5.97 | |||||||||||||||||||
Y/Y Growth | 21% | 14% - 16% | 12% - 16% | ||||||||||||||||||||
Cash Flow from Operations ($ Millions) | $ | 1,349 | $1,350 - $1,450 | $1,000 - $1,200 | |||||||||||||||||||
DSO | 43 | ~45 | ~45 | ||||||||||||||||||||
Capital Expenditures ($ Millions) | $ | 102 | ~$120 | ~$130 | |||||||||||||||||||
July 22, 2024 | Cadence Q2 2024 Financial Results | 3 |
Cadence Design Systems, Inc. | ||||||||
(In Billions) | 2020 | 2021 | 2022 | 2023 | Q2 2024 | ||||||||||||||||||||||||||||||
Backlog | $ | 3.9 | $ | 4.4 | $ | 5.8 | $ | 6.0 | $ | 6.0 | |||||||||||||||||||||||||
(In Millions) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
Product and Maintenance | $ | 923 | $ | 966 | $ | 982 | $ | 913 | $ | 961 | |||||||||||||||||||||||||
Services | 54 | 57 | 87 | 96 | 100 | ||||||||||||||||||||||||||||||
Total Revenue | $ | 977 | $ | 1,023 | $ | 1,069 | $ | 1,009 | $ | 1,061 | |||||||||||||||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
Revenue recognized over time | 82 | % | 83 | % | 85 | % | 87 | % | 85 | % | |||||||||||||||||||||||||
Revenue from arrangements with non-cancelable commitments | 3 | % | 2 | % | 2 | % | 3 | % | 3 | % | |||||||||||||||||||||||||
Recurring Revenue | 85 | % | 85 | % | 87 | % | 90 | % | 88 | % | |||||||||||||||||||||||||
Up-Front Revenue | 15 | % | 15 | % | 13 | % | 10 | % | 12 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||
Trailing Twelve Months Ended | |||||||||||||||||||||||||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
Recurring Revenue | 84 | % | 84 | % | 84 | % | 87 | % | 87 | % | |||||||||||||||||||||||||
Up-Front Revenue | 16 | % | 16 | % | 16 | % | 13 | % | 13 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||
(% of Total Revenue) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
Americas | 41 | % | 43 | % | 44 | % | 46 | % | 49 | % | |||||||||||||||||||||||||
China | 18 | % | 17 | % | 15 | % | 12 | % | 12 | % | |||||||||||||||||||||||||
Other Asia | 18 | % | 19 | % | 19 | % | 20 | % | 19 | % | |||||||||||||||||||||||||
Europe, Middle East and Africa | 17 | % | 15 | % | 16 | % | 17 | % | 14 | % | |||||||||||||||||||||||||
Japan | 6 | % | 6 | % | 6 | % | 5 | % | 6 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(% of Total Revenue) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
Custom IC Design and Simulation | 22 | % | 22 | % | 22 | % | 22 | % | 21 | % | |||||||||||||||||||||||||
Digital IC Design and Signoff | 27 | % | 28 | % | 29 | % | 29 | % | 27 | % | |||||||||||||||||||||||||
Functional Verification | 27 | % | 26 | % | 24 | % | 25 | % | 25 | % | |||||||||||||||||||||||||
IP | 11 | % | 11 | % | 13 | % | 12 | % | 13 | % | |||||||||||||||||||||||||
System Design and Analysis | 13 | % | 13 | % | 12 | % | 12 | % | 14 | % | |||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
July 22, 2024 | Cadence Q2 2024 Financial Results | 4 |
Cadence Design Systems, Inc. | ||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
GAAP Gross Margin | 90.1 | % | 89.3 | % | 90.3 | % | 87.6 | % | 86.9 | % | |||||||||||||||||||||||||
Non-GAAP Gross Margin | 91.4 | % | 90.6 | % | 91.7 | % | 89.1 | % | 88.5 | % | |||||||||||||||||||||||||
(In Millions) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
Total GAAP Costs and Expenses | $ | 677 | $ | 730 | $ | 732 | $ | 759 | $ | 767 | |||||||||||||||||||||||||
Total Non-GAAP Costs and Expenses | $ | 569 | $ | 603 | $ | 610 | $ | 627 | $ | 635 | |||||||||||||||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
GAAP Operating Margin | 30.7 | % | 28.6 | % | 31.5 | % | 24.8 | % | 27.7 | % | |||||||||||||||||||||||||
Non-GAAP Operating Margin | 41.8 | % | 41.1 | % | 42.9 | % | 37.8 | % | 40.1 | % | |||||||||||||||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
GAAP Net Income Per Share | $ | 0.81 | $ | 0.93 | $ | 1.19 | $ | 0.91 | $ | 0.84 | |||||||||||||||||||||||||
Non-GAAP Net Income Per Share | $ | 1.22 | $ | 1.26 | $ | 1.38 | $ | 1.17 | $ | 1.28 | |||||||||||||||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
DSO | 42 | 39 | 43 | 36 | 49 | ||||||||||||||||||||||||||||||
(In Millions) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
Net Cash from Operating Activities | $ | 414 | $ | 396 | $ | 272 | $ | 253 | $ | 156 | |||||||||||||||||||||||||
Capital Expenditures | 20 | 22 | 34 | 49 | 29 | ||||||||||||||||||||||||||||||
Free Cash Flow | $ | 394 | $ | 374 | $ | 238 | $ | 204 | $ | 127 | |||||||||||||||||||||||||
(In Millions) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 874 | $ | 962 | $ | 1,008 | $ | 1,012 | $ | 1,059 | |||||||||||||||||||||||||
(In Millions) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
Share Repurchase | $ | 265 | $ | 185 | $ | 125 | $ | 125 | $ | 125 | |||||||||||||||||||||||||
Number of Shares | 1.178 | 0.811 | 0.488 | 0.425 | 0.423 | ||||||||||||||||||||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
Headcount | 10,832 | 11,139 | 11,226 | 11,753 | 12,665 | ||||||||||||||||||||||||||||||
July 22, 2024 | Cadence Q2 2024 Financial Results | 5 |
Cadence Design Systems, Inc. | ||||||||
July 22, 2024 | Cadence Q2 2024 Financial Results | 6 |
Cadence Design Systems, Inc. | ||||||||
(In Millions) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||||||||||||||||||||||||
GAAP total costs and expenses | $ | 677 | $ | 730 | $ | 732 | $ | 759 | $ | 767 | |||||||||||||||||||||||||
Reconciling items to non-GAAP total costs and expenses | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | (76) | (88) | (87) | (88) | (88) | ||||||||||||||||||||||||||||||
Amortization of acquired intangibles | (15) | (15) | (17) | (17) | (20) | ||||||||||||||||||||||||||||||
Acquisition and integration-related costs | (14) | (14) | (13) | (22) | (21) | ||||||||||||||||||||||||||||||
Restructuring | — | (12) | 1 | — | — | ||||||||||||||||||||||||||||||
Non-qualified deferred compensation (expenses) credits | (3) | 2 | (6) | (5) | (2) | ||||||||||||||||||||||||||||||
Special charges | — | — | — | — | (1) | ||||||||||||||||||||||||||||||
Non-GAAP total costs and expenses* | $ | 569 | $ | 603 | $ | 610 | $ | 627 | $ | 635 | |||||||||||||||||||||||||
* | 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 | $ | 3,244 | |||||||||||||||||||||||||||||||||
Reconciling items to non-GAAP total costs and expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | (168) | (182) | (197) | (210) | (270) | (326) | (391) | ||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | (53) | (53) | (64) | (67) | (60) | (62) | (90) | ||||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | (20) | (8) | (23) | (23) | (41) | (56) | (93) | ||||||||||||||||||||||||||||||||||||||||
Restructuring | (11) | (9) | (9) | 1 | — | (11) | — | ||||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation (expenses) credits | 1 | (5) | (5) | (6) | 8 | (11) | (6) | ||||||||||||||||||||||||||||||||||||||||
Special charges** | — | (1) | — | (27) | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP total costs and expenses*** | $ | 1,491 | $ | 1,587 | $ | 1,739 | $ | 1,877 | $ | 2,125 | $ | 2,373 | $ | 2,663 | |||||||||||||||||||||||||||||||||
* | 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. |
July 22, 2024 | Cadence Q2 2024 Financial Results | 7 |
Cadence Design Systems, Inc. | ||||||||
(In Millions) | 2018 | 2019 | 2020* | 2021 | 2022 | 2023 | 2024E | ||||||||||||||||||||||||||||||||||||||||
GAAP operating income | $ | 396 | $ | 492 | $ | 646 | $ | 779 | $ | 1,074 | $ | 1,251 | $ | 1,386 | |||||||||||||||||||||||||||||||||
Reconciling items to non-GAAP operating income | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 168 | 182 | 197 | 210 | 270 | 326 | 391 | ||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 53 | 53 | 64 | 67 | 60 | 62 | 90 | ||||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 20 | 8 | 23 | 23 | 41 | 56 | 93 | ||||||||||||||||||||||||||||||||||||||||
Restructuring | 11 | 9 | 9 | (1) | — | 11 | — | ||||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | (1) | 5 | 5 | 6 | (8) | 11 | 6 | ||||||||||||||||||||||||||||||||||||||||
Special charges** | — | 1 | — | 27 | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income*** | $ | 647 | $ | 749 | $ | 944 | $ | 1,111 | $ | 1,436 | $ | 1,717 | $ | 1,967 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | (168) | (182) | (197) | (210) | (270) | (326) | $ | (391) | |||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income adjusted for stock-based compensation*** | $ | 479 | $ | 567 | $ | 747 | $ | 901 | $ | 1,166 | $ | 1,391 | $ | 1,576 | |||||||||||||||||||||||||||||||||
* | 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. |
July 22, 2024 | Cadence Q2 2024 Financial Results | 8 |
Cadence Design Systems, Inc. | ||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||||||||||||||||||||||||||
GAAP gross margin as a percent of total revenue | 90.1% | 89.3% | 90.3% | 87.6% | 86.9% | ||||||||||||||||||||||||||||||
Reconciling items to non-GAAP gross margin as a percent of total revenue | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 0.2% | 0.2% | 0.3% | 0.3% | 0.3% | ||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 1.1% | 1.1% | 1.1% | 1.1% | 1.2% | ||||||||||||||||||||||||||||||
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% | 0.0% | 0.1% | 0.1% | ||||||||||||||||||||||||||||||
Non-GAAP gross margin as a percent of total revenue* | 91.4% | 90.6% | 91.7% | 89.1% | 88.5% | ||||||||||||||||||||||||||||||
* | 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. |
July 22, 2024 | Cadence Q2 2024 Financial Results | 9 |
Cadence Design Systems, Inc. | ||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024E | |||||||||||||||||||||||||||||||||||||||
GAAP operating margin as a percent of total revenue | 31% | 29% | 31% | 25% | 28% | 27.7% - 29.3% | ||||||||||||||||||||||||||||||||||||||
Reconciling items to non-GAAP operating margin as a percent of total revenue | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 8% | 9% | 8% | 9% | 8% | 9% | ||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 2% | 1% | 2% | 2% | 2% | 2% | ||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 1% | 1% | 1% | 2% | 2% | 2% | ||||||||||||||||||||||||||||||||||||||
Restructuring | 0% | 1% | 0% | 0% | 0% | 0% | ||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | 0% | 0% | 1% | 0% | 0% | 0% | ||||||||||||||||||||||||||||||||||||||
Special charges | 0% | 0% | 0% | 0% | 0% | 0% | ||||||||||||||||||||||||||||||||||||||
Non-GAAP operating margin as a percent of total revenue* | 42% | 41% | 43% | 38% | 40% | 40.7% - 42.3% | ||||||||||||||||||||||||||||||||||||||
* | 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% | 29.7% - 31.3% | |||||||||||||||||||||||||||||||||||||||||||
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% | 0% | |||||||||||||||||||||||||||||||||||||||||||
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% | 41.7% - 43.3% | |||||||||||||||||||||||||||||||||||||||||||
* | 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. |
July 22, 2024 | Cadence Q2 2024 Financial Results | 10 |
Cadence Design Systems, Inc. | ||||||||
(In Thousands, Except Per Share Data) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024E | ||||||||||||||||||||||||||||||||||||||
Diluted net income per share on a GAAP basis | $ | 0.81 | $ | 0.93 | $ | 1.19 | $ | 0.91 | $ | 0.84 | $0.83 - $0.93 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 0.28 | 0.32 | 0.32 | 0.32 | 0.32 | 0.38 | ||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.10 | ||||||||||||||||||||||||||||||||||||||
Acquisition and integration-related costs | 0.05 | 0.05 | 0.04 | 0.08 | 0.08 | 0.10 | ||||||||||||||||||||||||||||||||||||||
Restructuring | — | 0.04 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | 0.01 | — | 0.02 | 0.02 | 0.01 | — | ||||||||||||||||||||||||||||||||||||||
Special charges | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets** | (0.01) | (0.04) | (0.10) | (0.22) | (0.10) | — | ||||||||||||||||||||||||||||||||||||||
Income tax effect of non-GAAP adjustments | 0.02 | (0.10) | (0.15) | — | 0.06 | (0.02) | ||||||||||||||||||||||||||||||||||||||
Diluted net income per share on a non-GAAP basis* | $ | 1.22 | $ | 1.26 | $ | 1.38 | $ | 1.17 | $ | 1.28 | $1.39 - $1.49 | |||||||||||||||||||||||||||||||||
Shares used in calculation of diluted net income per share | 272,996 | 272,427 | 272,419 | 273,544 | 273,520 | |||||||||||||||||||||||||||||||||||||||
* | 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. |
July 22, 2024 | Cadence Q2 2024 Financial Results | 11 |
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 | $3.82 - $4.02 | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 0.60 | 0.65 | 0.71 | 0.75 | 0.98 | 1.19 | 1.43 | ||||||||||||||||||||||||||||||||||||||||
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 | 0.34 | ||||||||||||||||||||||||||||||||||||||||
Restructuring | 0.04 | 0.03 | 0.03 | — | — | 0.04 | — | ||||||||||||||||||||||||||||||||||||||||
Non-qualified deferred compensation expenses (credits) | (0.01) | 0.02 | 0.02 | 0.02 | (0.03) | 0.04 | 0.02 | ||||||||||||||||||||||||||||||||||||||||
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) | (0.32) | ||||||||||||||||||||||||||||||||||||||||
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) | 0.15 | ||||||||||||||||||||||||||||||||||||||||
Diluted net income per share on a non-GAAP basis* | $ | 1.87 | $ | 2.20 | $ | 2.80 | $ | 3.29 | $ | 4.27 | $ | 5.15 | $5.77 - $5.97 | ||||||||||||||||||||||||||||||||||
Shares used in calculation of diluted net income per share | 281,144 | 280,515 | 279,641 | 278,858 | 275,011 | 272,748 | 273.5 - 275.5M | ||||||||||||||||||||||||||||||||||||||||
* | 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. |
July 22, 2024 | Cadence Q2 2024 Financial Results | 12 |
Cadence Design Systems, Inc. | ||||||||
(In Millions) | FY 2022 | FY 2023 | FY 2024E | |||||||||||||||||||||||
GAAP total other income and expense | $ | (28) | $ | 31 | $42 - $56 | |||||||||||||||||||||
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) | (87) | |||||||||||||||||||||||
Non-GAAP total other income and expense* | $ | (14) | $ | (15) | $(31) - $(45) | |||||||||||||||||||||
* | 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. |
July 22, 2024 | Cadence Q2 2024 Financial Results | 13 |
Document and Entity Information |
Jul. 22, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 22, 2024 |
Entity Registrant Name | CADENCE DESIGN SYSTEMS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 000-15867 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | 2655 Seely Avenue, |
Entity Address, City or Town | San Jose, |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95134 |
City Area Code | (408) |
Local Phone Number | 943-1234 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | CDNS |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000813672 |
Amendment Flag | false |
1 Year Cadence Design Systems Chart |
1 Month Cadence Design Systems Chart |
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