1ec3e69553ecc4f453bda3437d888dc89b7c5bd2a831ebed233a90a64c2129e9

Contracted but unsatisfied or partially unsatisfied performance obligations (backlog) (USD billions)

non-cancellable FSA commitments from customers (USD billions)

95beb0b15839b1616f905a797b30c5b1f06c2fafcd05f4aa2149811c01a5da07

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

Selling, General, and Administrative Expenses (USD, thousands)

Research and Development (R&D) (USD, thousands)

Depreciation and Amortization (D&A) (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

61c85ef943dea3f1f23df94ce8fa62c5e5635734af73d614c7b7c9d402ff2452

f2f792e5bfc9dd24d0413c3b630d63020b88cba748ab0bff83738d6801a2676e

c2c2194faa9ba64d44d64840277aa459fdbdcc133e2cab7843c3348a31b633d3

The operating cash flow turned negative in Q1 2024 because **higher disbursements for operations**, including vendor and tax payments, outweighed the benefits from **higher net income** and **higher accounts receivable collections**. This resulted in a switch from a positive net cash provided of **$114.8 million** in Q1 2023 to a negative amount of **$87.8 million** in Q1 2024.  **[0000883241-24-000013_snps-20240131.htm:40]** **[0001193125-24-041524_d759623dex991.htm:8]** 

Why did operating cash flow turn negative in Q1 2024?

There is no definitive explanation provided for the increase in Q4 2024 operating cash flow. While the documents show that operating cash flow in Q4 2024 (**562,818 thousand USD**  **[0000883241-24-000024_snps-20241031.htm:87]** ) was higher than in Q4 2023 (**326,061 thousand USD**  **[0000883241-23-000019_snps-20231031.htm:79]** ), the only detailed explanation available relates to a **decline** in fiscal year operating cash flow—which was driven by higher federal tax payments and changes in operating assets and liabilities.  **[0000883241-24-000024_snps-20241031.htm:73]**  Therefore, based on the available information, we cannot clearly attribute the significant increase in Q4 2024 operating cash flow to specific drivers.

What drove the significant increase in operating cash flow in Q4 2024?

The documents indicate that while there was a significant decrease in Purchases of Property and Equipment, Net—from **$189,618 thousand in fiscal year 2023** to **$123,161 thousand in fiscal year 2024**—no definitive explanation is provided for the minimal purchases in Q4 2024. It is suggested that factors such as **variations in capital expenditure priorities, timing of investments, or changes in operational needs** might be influencing this decline, but there isn’t explicit detail confirming any specific reason.  **[20241204SF71497:7]** 

Why were property and equipment purchases so minimal in Q4 2024?

The lower annual operating cash flow in FY 2024 was mainly driven by **higher federal tax payments**. Specifically, during FY 2024, the company incurred **$471.0 million** in federal tax payments, which included **$187.0 million** from deferred fiscal 2023 tax payments due to IRS tax relief measures related to the California winter storms. This increase in tax outlays contributed significantly to reducing the net cash provided by operating activities compared to FY 2023.  **[20241204SF71497:7]** **[0001193125-24-270723_d868165dex991.htm:9]** **[0000883241-24-000024_snps-20241031.htm:73]** **[0000883241-24-000024_snps-20241031.htm:87]** 

What factors contributed to the lower annual operating cash flow in FY 2024?

d4de28465ac8f91bf4a78e5e82d438fa744c8069d374c85512cdd0ab615eacf7

The significant increase in **FY 2024** net income was primarily driven by a **net gain of $868.8 million from the divestiture of the Software Integrity Business**. Additionally, **record revenue of $6.127 billion**, representing a **15% increase** from FY 2023, played a crucial role. Other contributing factors included **improved non-GAAP operating margins**, adjustments in **stock-based compensation**, and a **lower effective tax rate of 6.6%**.  **[0001193125-24-270723_d868165dex991.htm:9]** **[20241204SF71497:0]** **[0001193125-24-270723_d868165dex991.htm:1]** **[20241204SF71497:3]** 

What drove the significant increase in net income in FY 2024?

EPS nearly doubled in FY 2024 because Synopsys experienced a combination of factors that significantly boosted its earnings. **Net income increased substantially** from **$1,229.9 million** in FY 2023 to **$2,263.4 million** in FY 2024, while revenue grew by **15%** across all products and geographies. Additionally, the company saw a dramatic rise in income from discontinued operations—from **$2.8 million** in FY 2023 to **$821.7 million** in FY 2024—mainly due to the gain on the Software Integrity Divestiture. A **6% increase in operating income** also contributed to the robust EPS growth.  **[0000883241-24-000024_snps-20241031.htm:84]** **[0000883241-24-000024_snps-20241031.htm:54]** 

Why did EPS nearly double in FY 2024?

The documents do not provide a direct explanation for why Time-based Products Revenue was so low in Q2 2024. One document explains that an **extra week in Q1 2024** boosted that quarter’s revenue, which might make Q2 appear lower in comparison.  **[0000883241-24-000016_snps-20240430.htm:44]**  However, aside from this timing effect, no further details are given that specifically account for a low revenue figure in Q2 2024.  **[0000883241-24-000013_snps-20240131.htm:2]** **[0000883241-24-000016_snps-20240430.htm:2]** 

Why was Time-based Products Revenue so low in Q2 2024?

The drop in **Operating Income** in Q4 2024 is primarily driven by several factors. **Operating expenses** increased across the board: R&D rose from **$465.8M** to **$554.8M**, Sales and Marketing from **$187.0M** to **$219.2M**, and General and Administrative expenses from **$102.3M** to **$172.0M**.  **[20241204SF71497:6]**  Additionally, the increase in **Amortization of Acquired Intangible Assets** (from **$15.9M** to **$70.9M**), **Stock-Based Compensation** (from **$128.6M** to **$165.4M**), and **Acquisition/Divestiture-Related Costs** (from **$4.0M** to **$47.0M**) further contributed to the significant decline in income.  **[20241204SF71497:8]** 

What caused the drop in Operating Income in Q4 2024?

The **diluted EPS more than doubled** in FY 2024 primarily due to a **15% revenue growth** and a dramatic improvement in net income from discontinued operations. The gain on the Software Integrity Divestiture boosted discontinued operations’ net income from **$2.8 million in FY 2023** to **$821.7 million in FY 2024**, significantly impacting overall profitability. Additionally, **modest operating income growth (6%)** and favorable **non-GAAP adjustments** further contributed to the EPS increase.  **[0000883241-24-000024_snps-20241031.htm:54]** **[20241204SF71497:3]** **[20241204SF71497:1]** 

Why did diluted EPS more than double in FY 2024?

b8639f053b756474e1605211b11e2f635f0632697c191d28d5d1a99fbe3682ae

The nearly **double increase** in cash and cash equivalents in Q4 2024 was driven by several key factors. **Proceeds from the sale** of its Software Integrity business generated **$1,446,578 thousand** in net proceeds. In addition, the company reported strong **net cash provided by operating activities** amounting to **$1,407,029 thousand** and **net cash provided by investing activities** of **$1,223,013 thousand**. Finally, there was a significant **reduction in cash used for financing activities** (only **$181,297 thousand** compared to **$1,196,871 thousand** in the prior period), which further contributed to this increase.  **[20241204SF71497:7]** 

Why did Cash and cash equivalents nearly double in Q4 2024?

The significant jump in total assets in Q4 2024 was primarily driven by several key factors. **Cash and cash equivalents increased substantially** due to strong cash flow operations and proceeds from the sale of the Software Integrity business. Additionally, the sale itself generated **substantial inflows** that directly boosted total assets. There was also a noticeable rise in **prepaid and other current assets**, reflecting higher prepaid expenses, and an increase in **goodwill** due to acquisitions made during the year. Finally, **deferred income taxes rose**, contributing further to the asset increase.  **[20241204SF71497:7]** **[0001193125-24-270723_d868165dex991.htm:8]** **[0000883241-24-000024_snps-20241031.htm:83]** **[20241204SF71497:0]** **[0000883241-24-000024_snps-20241031.htm:109]** 

What factors contributed to the significant jump in Total assets in Q4 2024?

The notable decrease in Synopsys' long-term debt during Q3 2024 primarily appears to have been driven by the **repayment of debt obligations**, as evidenced by the **$2,607 thousand** repayment reflected in the cash flow statement for the nine months ended July 31, 2024. However, the documents do not provide additional specific reasons for this change.  **[20240821SF88214:7]** 

What led to the notable decrease in Long-term debt in Q3 2024?

254f1f560d9bc35425f83f8ec3c6eb2e8cab68bcbd92f3193f1445ad2150fc5c

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

5cb05292efe983cdc55fda2cbe90d2eb08849cf63b2fcda2b76c5f961b09f9bd

414cd9d7fe16498392b7c1f885adc84ced9c9a1202700fd46b3cd64235deab48

United States

Europe

China

Korea

Japan

Asia Pacific and Other

Other

Total Revenue

8fdec17edfa458a3ef75813e9c86aad6b4e86e7ac630e26125de09bb26a68d18

Time-based Products Revenue (USD, thousands)

Upfront Products Revenue (USD, thousands)

Total Products Revenue (USD, thousands)

Maintenance and Service Revenue (USD, thousands)

Products Cost of Revenue (USD, thousands)

Maintenance and Service Cost of Revenue (USD, thousands)

Amortization of Acquired Intangible Assets Cost of Revenue (USD, thousands)

Total Cost of Revenue (USD, thousands)

Gross Margin (USD, thousands)

Research and Development Operating Expenses (USD, thousands)

Sales and Marketing Operating Expenses (USD, thousands)

General and Administrative Operating Expenses (USD, thousands)

Amortization of Acquired Intangible Assets Operating Expenses (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Income (USD, thousands)

Income Before Income Taxes (USD, thousands)

Provision (Benefit) for Income Taxes (USD, thousands)

Net Income from Continuing Operations (USD, thousands)

Income from Discontinued Operations, Net of Income Taxes (USD, thousands)

Net Income Attributed to Synopsys (USD, thousands)

Net Income Attributed to Synopsys from Continuing Operations (USD, thousands)

Net Income Attributed to Synopsys from Discontinued Operations (USD, thousands)

Basic Net Income per Share Attributed to Synopsys (USD)

Diluted Net Income per Share Attributed to Synopsys (USD)

298204e14842e1301b6d4ee987f5325ea169fc620aa8893d48fb94bd649f7127

Synopsys Inc (SNPS)

Financials