Cadence Design Systems Q3 Revenue Surges to $3.15B

TL;DR

CDNS Q3 revenue up, 9-month total $3.15B. Strong growth!

AI Summary

Cadence Design Systems Inc. reported its Q3 2024 results, with total revenue for the nine months ending September 30, 2024, reaching $3.15 billion. This represents a significant increase compared to the same period in 2023. The company's product and maintenance revenue for Q3 2024 was $974 million, up from $879 million in Q3 2023.

Why It Matters

This filing shows strong revenue growth for Cadence Design Systems, indicating robust demand for its electronic design automation software and services in the semiconductor industry.

Risk Assessment

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

Key Numbers

• $3.15B — Revenue (9 months ended 2024-09-30) (Represents significant year-over-year growth.)
• $974M — Product and Maintenance Revenue (Q3 2024) (Up from $879M in Q3 2023, showing strong quarterly performance.)
• $1.03B — Total Revenue (Q3 2024) (Indicates continued strong sales in the latest quarter.)
• $943M — Total Revenue (Q3 2023) (Provides a basis for comparison for Q3 2024 performance.)
• $2.85B — Total Revenue (9 months ended 2023-09-30) (Shows the scale of growth achieved in the first nine months of 2024.)

Key Players & Entities

• CADENCE DESIGN SYSTEMS INC (company) — Filer
• 20240930 (date) — Reporting Period End Date
• $3.15 billion (dollar_amount) — Total revenue for the nine months ending September 30, 2024
• $974 million (dollar_amount) — Product and maintenance revenue for Q3 2024
• $879 million (dollar_amount) — Product and maintenance revenue for Q3 2023

FAQ

Key Financial Figures

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

Filing Documents

• cdns-20240930.htm (10-Q) — 1543KB
• ex311cdns09302024.htm (EX-31.1) — 11KB
• ex312cdns09302024.htm (EX-31.2) — 11KB
• ex321cdns09302024.htm (EX-32.1) — 6KB
• ex322cdns09302024.htm (EX-32.2) — 6KB
• cdns-20240930_g1.jpg (GRAPHIC) — 3KB
• 0000813672-24-000192.txt ( ) — 7964KB
• cdns-20240930.xsd (EX-101.SCH) — 48KB
• cdns-20240930_cal.xml (EX-101.CAL) — 79KB
• cdns-20240930_def.xml (EX-101.DEF) — 243KB
• cdns-20240930_lab.xml (EX-101.LAB) — 678KB
• cdns-20240930_pre.xml (EX-101.PRE) — 457KB
• cdns-20240930_htm.xml (XML) — 1192KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 1 Condensed Consolidated Income Statements for the three and nine months ended September 30, 2024 and September 30, 2023 2 Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and September 30, 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and September 30, 2023 4 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and September 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 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 35

Controls and Procedures

Item 4. Controls and Procedures 37

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40

Other Information

Item 5. Other Information 40

Exhibits

Item 6. Exhibits 41

Signatures

Signatures 43

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 September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,786,040 $ 1,008,152 Receivables, net 560,973 489,224 Inventories 293,350 181,661 Prepaid expenses and other 459,560 297,180 Total current assets 4,099,923 1,976,217 Property, plant and equipment, net 448,652 403,213 Goodwill 2,493,467 1,535,845 Acquired intangibles, net 662,343 336,843 Deferred taxes 889,939 880,001 Other assets 572,707 537,372 Total assets $ 9,167,031 $ 5,669,491 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 349,958 $ 349,285 Accounts payable and accrued liabilities 627,200 576,558 Current portion of deferred revenue 697,836 665,024 Total current liabilities 1,674,994 1,590,867 Long-term liabilities: Long-term portion of deferred revenue 102,439 98,931 Long-term debt 2,475,232 299,771 Other long-term liabilities 351,028 275,651 Total long-term liabilities 2,928,699 674,353 Commitments and contingencies (Note 15) Stockholders' equity: Common stock and capital in excess of par value 4,067,586 3,166,964 Treasury stock, at cost ( 5,141,957 ) ( 4,604,323 ) Retained earnings 5,651,658 4,936,384 Accumulated other comprehensive loss ( 13,949 ) ( 94,754 ) Total stockholders' equity 4,563,338 3,404,271 Total liabilities and stockholders' equity $ 9,167,031 $ 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 Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Revenue: Product and maintenance $ 1,100,380 $ 965,840 $ 2,974,222 $ 2,852,372 Services 115,119 57,254 311,061 168,991 Total revenue 1,215,499 1,023,094 3,285,283 3,021,363 Costs and exp