Q4 2024 Synopsys Inc Earnings Call Transcript
Key Points
- Synopsys Inc (SNPS) achieved a record revenue of $6.13 billion in FY24, marking a 15% year-over-year growth.
- The company reported a significant EPS growth at a 24% CAGR over the last five years.
- Synopsys Inc (SNPS) is expanding its focus on growth segments, highlighted by the sale of its Software Integrity business and the pending acquisition of ANSYS.
- The company is leveraging AI across its product portfolio, with Synopsys.ai solutions delivering substantial customer results, including up to 4x improvement in hardware utilization.
- Synopsys Inc (SNPS) has a strong backlog of $8.1 billion, indicating high visibility and stability in future revenue streams.
- The company anticipates macroeconomic uncertainties, particularly in China, which could impact growth.
- Synopsys Inc (SNPS) is preparing for the largest acquisition in its history, which may introduce integration challenges.
- The company's guidance for FY25 reflects a more conservative outlook, with expected revenue growth of 10.1% to 11.1%, lower than previous years.
- There is a noted deceleration in the Chinese market due to economic conditions and expanding restrictions.
- The first half of FY25 is expected to be weaker due to fewer business days and timing of customer pull-downs, leading to a more back-loaded revenue profile.
Ladies and gentlemen, welcome to the Synopsys earnings conference call for the fourth quarter and fiscal year 2024. (Operator Instructions) As a reminder, today's call is being recorded.
At this time, I would like to turn the conference over to Trey Campbell, Senior Vice President, Investor Relations. Please go ahead.
Good afternoon, everyone. With us today are Sassine Ghazi, President and CEO of Synopsys; and Shelagh Glaser, CFO.
Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts, targets, and other forward-looking statements regarding the company and its financial results.
While these statements represent our best current judgment about future results and performance as of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect.
In addition to any risks that we highlight during the call,
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