Cadence Q3 2024 Financial Highlights
- Revenue: $1.215 billion, a 19% increase from $1.023 billion in Q3 2023
- GAAP Operating Margin: 29% (unchanged from Q3 2023)
- Non-GAAP Operating Margin: 45%, up from 41% in Q3 2023
- GAAP Net Income per Share: $0.87, compared to $0.93 in Q3 2023
- Non-GAAP Net Income per Share: $1.64, up from $1.26 in Q3 2023
- Quarter-End Backlog: $5.6 billion
- Current Remaining Performance Obligations (cRPO): $2.9 billion, expected as revenue within 12 months
Executive Commentary
Cadence President and CEO Anirudh Devgan credited the strong performance to growth across key areas, especially in IP, SD&A, and hardware systems. Devgan noted customer success with Cadence.AI, highlighting its role as AI becomes integral to design workflows. CFO John Wall highlighted a strong bookings pipeline for Q4 and noted improved recurring revenue growth and contributions from China, which represented 13% of total revenue in Q3.
Outlook for Fiscal 2024
- Revenue: Expected to range between $4.61 billion and $4.65 billion
- GAAP Operating Margin: Estimated between 29% and 30%
- Non-GAAP Operating Margin: Estimated between 42% and 43%
- GAAP EPS: $3.70 to $3.76
- Non-GAAP EPS: $5.87 to $5.93
Business Highlights
- The Cadence.AI portfolio, powered by GenAI and the JedAI platform, nearly tripled in revenue, enhancing productivity and results.
- The System Design & Analysis business grew 47% year-over-year, driven by demand for multi-physics solutions combining physics-based modeling and AI.
- IP Business saw a 59% increase, with major deals supporting clients’ AI product development.
- Functional Verification grew 22%, fueled by demand for new hardware systems in AI, hyperscale, and automotive sectors.
Investor Relations Webcast
Anirudh Devgan and John Wall will discuss these results in an audio webcast on October 28, 2024, at 2 p.m. Pacific / 5 p.m. Eastern. Access and an archive are available on Cadence’s Investor Relations page.
About Cadence
With over 30 years of expertise, Cadence is a leader in electronic systems design, supporting innovation in industries like 5G, automotive, aerospace, and healthcare. Fortune has named Cadence one of the 100 Best Companies to Work For ten years in a row. Learn more at Cadence.com.
This press release includes forward-looking statements subject to various risks. See Cadence’s filings with the SEC for a complete discussion of potential risks and reconciliations from GAAP to non-GAAP metrics.
