CDNS Cadence Design Systems Inc

Record Backlog of $6.8 Billion

Exceeded Q4 and 2024 Outlook for Revenue and EPS

Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced results for the fourth quarter and fiscal year 2024.

Fourth Quarter 2024 Financial Results

• Revenue of $1.356 billion, compared to revenue of $1.069 billion in Q4 2023
• GAAP operating margin of 33.7%, compared to 31.5% in Q4 2023
• Non-GAAP operating margin of 46.0%, compared to 42.9% in Q4 2023
• GAAP diluted net income per share of $1.24, compared to $1.19 in Q4 2023
• Non-GAAP diluted net income per share of $1.88, compared to $1.38 in Q4 2023

Fiscal Year 2024 Financial Results

• Revenue of $4.641 billion, compared to revenue of $4.090 billion in 2023
• GAAP operating margin of 29.1%, compared to 30.6% in 2023
• Non-GAAP operating margin of 42.5%, compared to 42.0% in 2023
• GAAP diluted net income per share of $3.85, compared to $3.82 in 2023
• Non-GAAP diluted net income per share of $5.97, compared to $5.15 in 2023
• Year-end backlog was $6.8 billion and current remaining performance obligations ("cRPO"), contract revenue expected to be recognized as revenue in the next 12 months, was $3.4 billion

“Cadence delivered exceptional results in the fourth quarter, capping off a strong 2024 with 13.5% revenue growth and 42.5% non-GAAP operating margin for the year,” said Anirudh Devgan, president and chief executive officer. “Our momentum continues to build as we exited 2024 with record bookings and record backlog. Cadence is very well positioned to benefit from the various phases of AI, including the current AI infrastructure buildout, applying AI to our own products, and expanding into new markets such as life sciences.”

“We had a strong finish to 2024, driven by broad based strength across all our businesses,” said John Wall, senior vice president and chief financial officer. “I’m pleased with our record year-end backlog of $6.8 billion and cRPO of $3.4 billion, and I look forward to building on that strength in 2025.”

CFO Commentary

Commentary on the fourth quarter and fiscal year 2024 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

For fiscal year 2025, the company expects:

• Revenue in the range of $5.14 billion to $5.22 billion
• GAAP operating margin in the range of 30.25% to 31.25%
• Non-GAAP operating margin in the range of 43.25% to 44.25%
• GAAP diluted net income per share in the range of $4.19 to $4.29
• Non-GAAP diluted net income per share in the range of $6.65 to $6.75

The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use the current normalized non-GAAP tax rate through fiscal 2025 but will re-evaluate this rate periodically for significant items that may materially affect its projections.

Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release.

Business Highlights

• The Cadence.ai portfolio continued to gain momentum with market shaping customers, as Cadence's AI-driven optimization products including Cadence Cerebrus, Verisium SimAI and Allegro X AI are proliferating at scale. Additionally, Cadence's LLM based Design Agents powered by JedAI data platform, are showing promising results in early engagements.
• System Design & Analysis achieved strong results with over 40% growth in 2024 driven by Cadence's multi-physics analysis platform and AI-driven optimization, which delivered superior results to a rapidly expanding customer base across multiple verticals, especially Aerospace & Defense and Automotive.
• Cadence's IP business grew 28% year over year in Q4 as Cadence's AI HPC protocols including Cadence's flagship HBM, DDR, PCIe and UCIe solutions continued propelling Cadence's business with significant expansions and competitive displacements at top tier customers.
• Core EDA, which comprises of Cadence's digital, custom/analog and verification portfolios grew 15% year over year in Q4.
• The hardware business, consisting of the Palladium Z3 and Protium X3, delivered another record year, with Q4 being the best quarter ever.

Audio Webcast Scheduled

Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the fourth quarter and fiscal year 2024 financial results audio webcast today, February 18, 2025, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting February 18, 2025 at 5 p.m. (Pacific) and ending March 17, 2025 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence

Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary electronic products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For 10 years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at www.cadence.com.

© 2025 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

This press release contains forward-looking statements, including Cadence's outlook on future operating results, financial condition, strategic objectives, business prospects, technology and product developments, industry trends, market growth and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) changes in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including export controls, tariffs, other trade restrictions and other government regulations, as well as rising tensions and armed conflicts around the world; (vi) changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence’s increased debt levels and obligations and Cadence’s ability to access capital and debt markets in the future; (vii) legislative or regulatory requirements; (viii) Cadence’s acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (ix) potential harm caused by compromises in cybersecurity and cybersecurity attacks; (x) capital expenditure requirements and events that affect cash flow, liquidity or reserves, or estimates Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (xi) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject; and (xii) Cadence’s ability to successfully meet any governance, environmental and social targets and strategies. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings.

All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

GAAP to Non-GAAP Reconciliation

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.

To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, investment gains or losses, income or expenses related to Cadence’s non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments.

Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.

The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:

Operating Margin Reconciliation

 

Three Months Ended

 

 

December 31, 2024

 

December 31, 2023

 

 

(unaudited)

GAAP operating margin as a percent of total revenue

 

33.7

%

 

31.5

%

Reconciling items to non-GAAP operating margin as a percent of total revenue:

 

 

 

 

Stock-based compensation expense

 

7.9

%

 

8.1

%

Amortization of acquired intangibles

 

2.0

%

 

1.6

%

Acquisition and integration-related costs

 

1.7

%

 

1.2

%

Restructuring

 

(0.1

)%

 

(0.1

)%

Non-qualified deferred compensation expenses

 

0.0

%

 

0.6

%

Special charges*

 

0.8

%

 

0.0

%

Non-GAAP operating margin as a percent of total revenue

 

46.0

%

 

42.9

%

*

Includes costs related to adjustments to estimated legal liabilities and executive severance.

Operating Margin Reconciliation

 

Years Ended

 

 

December 31, 2024

 

December 31, 2023

 

 

(unaudited)

GAAP operating margin as a percent of total revenue

 

29.1

%

 

30.6

%

Reconciling items to non-GAAP operating margin as a percent of total revenue:

 

 

 

 

Stock-based compensation expense

 

8.4

%

 

8.0

%

Amortization of acquired intangibles

 

2.0

%

 

1.5

%

Acquisition and integration-related costs

 

2.1

%

 

1.4

%

Restructuring

 

0.5

%

 

0.3

%

Non-qualified deferred compensation expenses

 

0.2

%

 

0.2

%

Special charges*

 

0.2

%

 

0.0

%

Non-GAAP operating margin as a percent of total revenue

 

42.5

%

 

42.0

%

*

Includes costs related to adjustments to estimated legal liabilities and executive severance.

Net Income Reconciliation

 

Three Months Ended

 

 

December 31, 2024

 

December 31, 2023

(in thousands)

 

(unaudited)

Net income on a GAAP basis

 

$

340,210

 

 

$

323,899

 

Stock-based compensation expense

 

 

106,508

 

 

 

86,683

 

Amortization of acquired intangibles

 

 

26,776

 

 

 

16,920

 

Acquisition and integration-related costs

 

 

23,477

 

 

 

12,583

 

Restructuring

 

 

(1,020

)

 

 

(569

)

Non-qualified deferred compensation expenses

 

 

293

 

 

 

6,295

 

Special charges*

 

 

10,224

 

 

 

—

 

Other income or expense related to investments and non-qualified deferred compensation plan assets**

 

 

14,654

 

 

 

(27,966

)

Income tax effect of non-GAAP adjustments

 

 

(5,456

)

 

 

(41,638

)

Net income on a non-GAAP basis

 

$

515,666

 

 

$

376,207

 

*

Includes costs related to adjustments to estimated legal liabilities and executive severance.

**

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.

Net Income Reconciliation

 

Years Ended

 

 

December 31, 2024

 

December 31, 2023

(in thousands)

 

(unaudited)

Net income on a GAAP basis

 

$

1,055,484

 

 

$

1,041,144

 

Stock-based compensation expense

 

 

391,219

 

 

 

325,611

 

Amortization of acquired intangibles

 

 

90,449

 

 

 

61,970

 

Acquisition and integration-related costs

 

 

95,562

 

 

 

56,542

 

Restructuring

 

 

23,765

 

 

 

11,013

 

Non-qualified deferred compensation expenses

 

 

11,145

 

 

 

10,851

 

Special charges*

 

 

11,457

 

 

 

—

 

Other income or expense related to investments and non-qualified deferred compensation plan assets**

 

 

(60,798

)

 

 

(45,502

)

Income tax effect of non-GAAP adjustments

 

 

17,162

 

 

 

(57,139

)

Net income on a non-GAAP basis

 

$

1,635,445

 

 

$

1,404,490

 

*

Includes costs related to adjustments to estimated legal liabilities and executive severance.

**

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

 

 

December 31, 2024

 

December 31, 2023

(in thousands, except per share data)

 

(unaudited)

Diluted net income per share on a GAAP basis

 

$

1.24

 

 

$

1.19

 

Stock-based compensation expense

 

 

0.39

 

 

 

0.32

 

Amortization of acquired intangibles

 

 

0.10

 

 

 

0.06

 

Acquisition and integration-related costs

 

 

0.08

 

 

 

0.04

 

Restructuring

 

 

—

 

 

 

—

 

Non-qualified deferred compensation expenses

 

 

—

 

 

 

0.02

 

Special charges*

 

 

0.04

 

 

 

—

 

Other income or expense related to investments and non-qualified deferred compensation plan assets**

 

 

0.05

 

 

 

(0.10

)

Income tax effect of non-GAAP adjustments

 

 

(0.02

)

 

 

(0.15

)

Diluted net income per share on a non-GAAP basis

 

$

1.88

 

 

$

1.38

 

Shares used in calculation of diluted net income per share

 

 

274,292

 

 

 

272,419

 

*

Includes costs related to adjustments to estimated legal liabilities and executive severance.

**

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

 

Years Ended

 

 

December 31, 2024

 

December 31, 2023

(in thousands, except per share data)

 

(unaudited)

Diluted net income per share on a GAAP basis

 

$

3.85

 

 

$

3.82

 

Stock-based compensation expense

 

 

1.43

 

 

 

1.19

 

Amortization of acquired intangibles

 

 

0.33

 

 

 

0.23

 

Acquisition and integration-related costs

 

 

0.35

 

 

 

0.21

 

Restructuring

 

 

0.09

 

 

 

0.04

 

Non-qualified deferred compensation expenses

 

 

0.04

 

 

 

0.04

 

Special charges*

 

 

0.04

 

 

 

—

 

Other income or expense related to investments and non-qualified deferred compensation plan assets**

 

 

(0.22

)

 

 

(0.17

)

Income tax effect of non-GAAP adjustments

 

 

0.06

 

 

 

(0.21

)

Diluted net income per share on a non-GAAP basis

 

$

5.97

 

 

$

5.15

 

Shares used in calculation of diluted net income per share

 

 

273,833

 

 

 

272,748

 

*

Includes costs related to adjustments to estimated legal liabilities and executive severance.

**

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 Design Systems, Inc. Condensed Consolidated Balance Sheets December 31, 2024 and December 31, 2023 (In thousands) (Unaudited)   December 31, 2024 December 31, 2023   Current assets: Cash and cash equivalents

$

2,644,030

$

1,008,152

Receivables, net

 

680,460

 

489,224

Inventories

 

257,711

 

181,661

Prepaid expenses and other

 

433,878

 

297,180

Total current assets

 

4,016,079

 

1,976,217

  Property, plant and equipment, net

 

458,200

 

403,213

Goodwill

 

2,378,671

 

1,535,845

Acquired intangibles, net

 

594,734

 

336,843

Deferred taxes

 

982,057

 

880,001

Other assets

 

544,741

 

537,372

Total assets

$

8,974,482

$

5,669,491

  Current liabilities: Current portion of long-term debt

$

-

$

349,285

Accounts payable and accrued liabilities

 

632,692

 

576,558

Current portion of deferred revenue

 

737,413

 

665,024

Total current liabilities

 

1,370,105

 

1,590,867

  Long-term liabilities: Long-term portion of deferred revenue

 

115,168

 

98,931

Long-term debt

 

2,476,183

 

299,771

Other long-term liabilities

 

339,448

 

275,651

Total long-term liabilities

 

2,930,799

 

674,353

  Stockholders' equity

 

4,673,578

 

3,404,271

Total liabilities and stockholders' equity

$

8,974,482

$

5,669,491

Cadence Design Systems, Inc. Condensed Consolidated Income Statements For the Three Months and Years Ended December 31, 2024 and December 31, 2023 (In thousands, except per share amounts) (Unaudited)   Three Months Ended Years Ended December 31,2024 December 31,2023 December 31,2024 December 31,2023   Revenue: Product and maintenance

$

1,239,287

 

$

981,987

 

$

4,213,509

 

$

3,834,359

 

Services

 

116,694

 

 

86,636

 

 

427,755

 

 

255,627

 

  Total revenue

 

1,355,981

 

 

1,068,623

 

 

4,641,264

 

 

4,089,986

 

  Costs and expenses: Cost of product and maintenance

 

157,249

 

 

71,491

 

 

436,600

 

 

331,760

 

Cost of services

 

62,742

 

 

32,639

 

 

210,902

 

 

103,281

 

Marketing and sales

 

200,406

 

 

180,368

 

 

757,483

 

 

690,319

 

Research and development

 

392,026

 

 

367,443

 

 

1,549,093

 

 

1,441,796

 

General and administrative

 

78,550

 

 

75,742

 

 

282,283

 

 

242,430

 

Amortization of acquired intangibles

 

9,153

 

 

4,981

 

 

30,375

 

 

18,162

 

Restructuring

 

(1,020

)

 

(569

)

 

23,765

 

 

11,013

 

  Total costs and expenses

 

899,106

 

 

732,095

 

 

3,290,501

 

 

2,838,761

 

  Income from operations

 

456,875

 

 

336,528

 

 

1,350,763

 

 

1,251,225

 

  Interest expense

 

(29,907

)

 

(8,989

)

 

(75,999

)

 

(36,185

)

Other income, net

 

9,684

 

 

34,523

 

 

121,055

 

 

66,886

 

  Income before provision for income taxes

 

436,652

 

 

362,062

 

 

1,395,819

 

 

1,281,926

 

  Provision for income taxes

 

96,442

 

 

38,163

 

 

340,335

 

 

240,782

 

  Net income

$

340,210

 

$

323,899

 

$

1,055,484

 

$

1,041,144

 

    Net income per share - basic

$

1.25

 

$

1.20

 

$

3.89

 

$

3.86

 

  Net income per share - diluted

$

1.24

 

$

1.19

 

$

3.85

 

$

3.82

 

  Weighted average common shares outstanding - basic

 

272,069

 

 

269,088

 

 

271,212

 

 

269,381

 

  Weighted average common shares outstanding - diluted

 

274,292

 

 

272,419

 

 

273,833

 

 

272,748

 

  Cadence Design Systems, Inc. Condensed Consolidated Statements of Cash Flows For the Years Ended December 31, 2024 and December 31, 2023 (In thousands) (Unaudited)   Years Ended December 31, December 31,

2024

2023

  Cash and cash equivalents at beginning of year

$

1,008,152

 

$

882,325

 

Cash flows from operating activities: Net income

 

1,055,484

 

 

1,041,144

 

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization

 

196,935

 

 

145,292

 

Amortization of debt discount and fees

 

3,473

 

 

1,262

 

Stock-based compensation

 

391,219

 

 

325,611

 

Gain on investments, net

 

(49,593

)

 

(34,602

)

Deferred income taxes

 

(128,737

)

 

(36,512

)

Provisions for losses on receivables

 

2,078

 

 

3,325

 

ROU asset amortization and change in operating lease liabilities

 

(1,920

)

 

451

 

Other non-cash items

 

587

 

 

1,983

 

Changes in operating assets and liabilities, net of effect of acquired businesses: Receivables

 

(180,287

)

 

(11,748

)

Inventories

 

(82,771

)

 

(65,895

)

Prepaid expenses and other

 

(81,529

)

 

39,015

 

Other assets

 

11,866

 

 

(45,784

)

Accounts payable and accrued liabilities

 

33,676

 

 

5,415

 

Deferred revenue

 

66,478

 

 

(21,583

)

Other long-term liabilities

 

23,592

 

 

1,802

 

Net cash provided by operating activities

 

1,260,551

 

 

1,349,176

 

  Cash flows from investing activities: Purchases of investments

 

(4,982

)

 

(176,170

)

Proceeds from the sale and maturity of investments

 

47,980

 

 

64,775

 

Purchases of property, plant and equipment

 

(142,542

)

 

(102,337

)

Purchases of intangible assets

 

-

 

 

(166

)

Cash paid in business combinations, net of cash acquired

 

(737,574

)

 

(198,351

)

Net cash used for investing activities

 

(837,118

)

 

(412,249

)

  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

 

 

-

 

Payments of debt

 

(1,350,000

)

 

-

 

Payments of debt issuance costs

 

(23,828

)

 

-

 

Proceeds from issuance of common stock

 

204,237

 

 

132,957

 

Stock received for payment of employee taxes on vesting of restricted stock

 

(237,737

)

 

(136,396

)

Payments for repurchases of common stock

 

(550,026

)

 

(700,134

)

Net cash provided by (used for) financing activities

 

1,239,241

 

 

(803,573

)

  Effect of exchange rate changes on cash and cash equivalents

 

(26,796

)

 

(7,527

)

  Increase in cash and cash equivalents

 

1,635,878

 

 

125,827

 

  Cash and cash equivalents at end of year

$

2,644,030

 

$

1,008,152

 

Cadence Design Systems, Inc. (Unaudited)   Revenue Mix by Geography (% of Total Revenue)

2023

 

2024

GEOGRAPHY Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year   Americas

44

%

41

%

43

%

44

%

43

%

46

%

49

%

50

%

49

%

49

%

China

17

%

18

%

17

%

15

%

17

%

12

%

12

%

13

%

13

%

12

%

Other Asia

18

%

18

%

19

%

19

%

19

%

20

%

19

%

17

%

17

%

18

%

Europe, Middle East and Africa

15

%

17

%

15

%

16

%

16

%

17

%

14

%

14

%

15

%

15

%

Japan

6

%

6

%

6

%

6

%

5

%

5

%

6

%

6

%

6

%

6

%

Total

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

    Revenue Mix by Product Category (% of Total Revenue)

2023

 

2024

PRODUCT CATEGORY Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year   Core EDA

77

%

76

%

76

%

75

%

76

%

76

%

73

%

70

%

68

%

71

%

IP

11

%

11

%

11

%

13

%

12

%

12

%

13

%

14

%

13

%

13

%

System Design and Analysis

12

%

13

%

13

%

12

%

12

%

12

%

14

%

16

%

19

%

16

%

Total

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Operating Margin

As of February 18, 2025

(Unaudited)

 

 

Three Months Ending

Year Ending

March 31, 2025

December 31, 2025

Forecast

Forecast

 

 

GAAP operating margin as a percent of total revenue

27% - 28%

30.25% - 31.25%

 

 

Reconciling items to non-GAAP operating margin as a percent of total revenue:

 

 

Stock-based compensation expense

9%

9%

Amortization of acquired intangibles

2%

2%

Acquisition and integration-related costs

2%

2%

 

 

Non-GAAP operating margin as a percent of total revenue†

40% - 41%

43.25% - 44.25%

†

 

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.

Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share

As of February 18, 2025

(Unaudited)

 

 

Three Months Ending

Year Ending

March 31, 2025

December 31, 2025

Forecast

Forecast

 

 

Diluted net income per share on a GAAP basis

$0.93 to $0.99

$4.19 to $4.29

 

 

Stock-based compensation expense

0.40

1.69

Amortization of acquired intangibles

0.09

0.36

Acquisition and integration-related costs

0.08

0.31

Income tax effect of non-GAAP adjustments

(0.04)

0.10

 

 

Diluted net income per share on a non-GAAP basis†

$1.46 to $1.52

$6.65 to $6.75

†

 

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.

Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Net Income

As of February 18, 2025

(Unaudited)

 

 

Three Months Ending

Year Ending

March 31, 2025

December 31, 2025

($ in millions)

Forecast

Forecast

 

 

Net income on a GAAP basis

$256 to $273

$1,151 to $1,179

 

 

Stock-based compensation expense

109

466

Amortization of acquired intangibles

25

98

Acquisition and integration-related costs

23

85

Income tax effect of non-GAAP adjustments

(11)

28

 

 

Net income on a non-GAAP basis†

$402 to $419

$1,828 to $1,856

†

 

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.

CDNS–IR Category: Financial, Featured

View source version on businesswire.com: https://www.businesswire.com/news/home/20250217827618/en/

For more information, please contact:

Cadence Investor Relations 408-944-7100 investor_relations@cadence.com

Cadence Newsroom 408-944-7039 newsroom@cadence.com