Synopsys Q4 2024: A Quarter of Growth and Strategic Moves

Synopsys, a leading provider of electronic design automation software, reported its Q4 2024 earnings, showcasing a strong quarter marked by growth and strategic initiatives. The company's revenue reached a record $1.636 billion, up approximately 11% year over year (YoY), while non-GAAP earnings per diluted share grew by approximately 13% YoY, reaching $3.40.

The quarter's growth was driven by several factors, including the AI-driven reinvention of compute, silicon proliferation, and software-defined systems. Synopsys' pending acquisition of Ansys, expected to close in the first half of 2025, is also poised to further expand the company's opportunities in new adjacent areas, delivering AI-powered design solutions that fuse electronics and physics.

Synopsys' Design Automation segment was a key driver of growth, reporting record revenue up 11% YoY. This segment offers a broad range of products and services, including advanced silicon design, verification products and services, system integration products and services, digital, custom, and field programmable gate array IC design software, verification software and hardware products, manufacturing software products, and other offerings.

The Design IP segment also contributed significantly to the overall financial results, generating $750 million in revenue, representing approximately 46% of the total revenue for the quarter. This segment includes intellectual property (IP) solutions for various applications, such as USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy.



In addition to its strong financial performance, Synopsys made strategic moves during the quarter. The company sold its Software Integrity business, allowing it to focus on its core EDA and IP segments and sharpen its silicon to systems strategy. Despite the sale, Synopsys maintained its commitment to software security through its Intelligent Orchestration solution, Black Duck, and other offerings.

For 2025, Synopsys expects to deliver double-digit revenue growth while preparing for the Ansys acquisition and managing macro uncertainties in certain geographies. The company's strong execution and operating discipline position it well for the future, as it continues to capitalize on growth opportunities in AI-driven compute and other emerging markets.



In conclusion, Synopsys' Q4 2024 earnings call highlighted a strong quarter marked by growth, strategic moves, and a positive outlook for the future. The company's ability to adapt to market trends and execute on its strategic vision has positioned it well for ongoing success in the competitive technology landscape.