Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2022

MOUNTAIN VIEW, Calif., Nov. 30, 2022 -- Synopsys, Inc. today reported results for its fourth quarter and fiscal year 2022. Revenue for the fourth quarter of fiscal year 2022 was $1.284 billion, compared to $1.152 billion for the fourth quarter of fiscal year 2021. Revenue for fiscal year 2022 was $5.082 billion, an increase of 20.9 percent from $4.204 billion in fiscal year 2021.

"Synopsys achieved record results in fiscal year 2022, substantially exceeding our original targets, with strength in all product groups and geographies. We enter fiscal year 2023 with excellent momentum and a resilient business model that provides stability during market cycles," said Aart de Geus, chairman and CEO of Synopsys. "We've delivered many game-changing innovations over the past several years, which continue to enable customers to meet the unrelenting quest for "smart everything" devices. Simultaneously, our execution and operational management continue to drive growth and margin expansion. For fiscal year 2023, we are targeting 14-15% revenue growth, continued non-GAAP operating margin expansion, and approximately 16% non-GAAP earnings per share growth."

GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2022 was $153.5 million, or $0.99 per diluted share, compared to $201.4 million, or $1.28 per diluted share, for the fourth quarter of fiscal year 2021. GAAP net income for fiscal year 2022 was $984.6 million, or $6.29 per diluted share, compared to $757.5 million, or $4.81 per diluted share, for fiscal year 2021.

Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal year 2022 was $297.7 million, or $1.91 per diluted share, compared to non-GAAP net income of $285.8 million, or $1.82 per diluted share, for the fourth quarter of fiscal year 2021. Non-GAAP net income for fiscal year 2022 was $1.393 billion, or $8.90 per diluted share, compared to non-GAAP net income of $1.077 billion, or $6.84 per diluted share, for fiscal year 2021.

For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.

Business Segments
Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA tools, IP products, system integration solutions and other associated revenue categories, and (2) Software Integrity, which includes a comprehensive solution for building integrity—security, quality and compliance testing—into the customers' software development lifecycle and supply chain. Further information regarding these segments is provided at the end of this press release.

Financial Targets
Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2023. These financial targets assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.

For a reconciliation of Synopsys' first quarter and fiscal year 2023 targets, including expenses, tax rate, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.

Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at www.synopsys.com. A recording of the call will be available by calling +1-800-770-2030 (+1-647-362-9199 for international callers), access code 6444570, beginning at 5:00 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on December 7, 2022. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter fiscal year 2023 in February 2023. Synopsys will post copies of the prepared remarks on its website following today's call. In addition, Synopsys makes additional information available in a financial supplement and corporate overview presentation, also posted on the corporate website.

Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call and the information contained in the financial supplement and corporate overview presentation (available on Synopsys' corporate website at www.synopsys.com) represent Synopsys' expectations and beliefs as of November 30, 2022. Although this press release, copies of the prepared remarks made during the call, the financial supplement, and the corporate overview presentation will remain available on Synopsys' website through the date of the earnings call for the first quarter fiscal year 2023, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this release unless required by law.

Availability of Final Financial Statements
Synopsys will include final financial statements for the fiscal year 2022 in its annual report on Form 10-K to be filed on or before December 28, 2022.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry's broadest portfolio of application security testing tools and services. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn more at www.synopsys.com.