Cadence Design Systems Reports Q2 2024 Results

TL;DR

CDNS Q2 earnings show solid growth, revenue up year-over-year.

AI Summary

Cadence Design Systems Inc. reported its second quarter results for the period ending June 30, 2024. The company's financial performance for the quarter and the first half of the year shows continued growth in its product and maintenance revenue streams.

Why It Matters

This filing provides insight into the financial health and performance of Cadence Design Systems, a key player in the electronic design automation industry, impacting investors and partners.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which results are reported.)
• 2024-01-01 — First Day of Fiscal Year to Date (Marks the beginning of the period covered by the year-to-date financial data.)
• 2023-12-31 — Previous Fiscal Year End (Provides a reference point for year-over-year comparisons.)

Key Players & Entities

• CADENCE DESIGN SYSTEMS INC (company) — Filer
• 20240630 (date) — Reporting period end date
• 20240724 (date) — Filing date
• SAN JOSE (location) — Business address city
• DE (location) — State of incorporation

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share CDNS Nasdaq Global

Filing Documents

• cdns-20240630.htm (10-Q) — 1521KB
• ex102cdns06302024.htm (EX-10.2) — 146KB
• ex103cdns06302024.htm (EX-10.3) — 154KB
• ex104cdns06302024.htm (EX-10.4) — 111KB
• ex311cdns06302024.htm (EX-31.1) — 11KB
• ex312cdns06302024.htm (EX-31.2) — 11KB
• ex321cdns06302024.htm (EX-32.1) — 6KB
• ex322cdns06302024.htm (EX-32.2) — 6KB
• cdns-20240630_g1.jpg (GRAPHIC) — 3KB
• image_01.jpg (GRAPHIC) — 0KB
• image_0a.jpg (GRAPHIC) — 0KB
• image_11.jpg (GRAPHIC) — 10KB
• image_1a.jpg (GRAPHIC) — 20KB
• image_2.jpg (GRAPHIC) — 0KB
• 0000813672-24-000155.txt ( ) — 8152KB
• cdns-20240630.xsd (EX-101.SCH) — 46KB
• cdns-20240630_cal.xml (EX-101.CAL) — 78KB
• cdns-20240630_def.xml (EX-101.DEF) — 249KB
• cdns-20240630_lab.xml (EX-101.LAB) — 632KB
• cdns-20240630_pre.xml (EX-101.PRE) — 449KB
• cdns-20240630_htm.xml (XML) — 1149KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 1 Condensed Consolidated Income Statements for the three and six months ended June 30, 2024 and June 30, 2023 2 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and June 30, 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and June 30, 2023 4 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and June 30, 2023 6 Notes to Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 41

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 41

Other Information

Item 5. Other Information 41

Exhibits

Item 6. Exhibits 42

Signatures

Signatures 44

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) As of June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 1,058,955 $ 1,008,152 Receivables, net 564,851 489,224 Inventories 171,508 181,661 Prepaid expenses and other 401,074 297,180 Total current assets 2,196,388 1,976,217 Property, plant and equipment, net 449,422 403,213 Goodwill 2,417,747 1,535,845 Acquired intangibles, net 664,038 336,843 Deferred taxes 892,963 880,001 Other assets 605,183 537,372 Total assets $ 7,225,741 $ 5,669,491 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 349,732 $ 349,285 Accounts payable and accrued liabilities 505,392 576,558 Current portion of deferred revenue 678,598 665,024 Total current liabilities 1,533,722 1,590,867 Long-term liabilities: Long-term portion of deferred revenue 88,823 98,931 Long-term debt 998,935 299,771 Other long-term liabilities 343,369 275,651 Total long-term liabilities 1,431,127 674,353 Commitments and contingencies (Note 14) Stockholders' equity: Common stock and capital in excess of par value 3,928,477 3,166,964 Treasury stock, at cost ( 4,971,955 ) ( 4,604,323 ) Retained earnings 5,413,547 4,936,384 Accumulated other comprehensive loss ( 109,177 ) ( 94,754 ) Total stockholders' equity 4,260,892 3,404,271 Total liabilities and stockholders' equity $ 7,225,741 $ 5,669,491 See notes to condensed consolidated financial statements. CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED INCOME STATEMENTS (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenue: Product and maintenance $ 960,457 $ 922,790 $ 1,873,842 $ 1,886,532 Services 100,224 53,789 195,942 111,737 Total revenue 1,060,681 976,579 2,069,784 1,998,269 Costs and expenses: Cost of product and maint