0000813672false00008136722024-10-282024-10-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM 8-K
 
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 28, 2024
CADENCE DESIGN SYSTEMS, INC.
(Exact Name of Registrant as Specified in its Charter)
 
Delaware 000-15867 00-0000000
(State or Other Jurisdiction
of Incorporation)		 (Commission File Number) (I.R.S. Employer
Identification No.)
2655 Seely Avenue, San Jose, California 95134
(Address of Principal Executive Offices) (Zip Code)
(408) 943-1234
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareCDNSNasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐






Item 2.02. Results of Operations and Financial Condition.

On October 28, 2024, Cadence Design Systems, Inc. ("Cadence") issued a press release announcing its financial results for the quarter ended September 30, 2024.
A copy of the press release is attached hereto as Exhibit 99.01 and a copy of the commentary by the Chief Financial Officer of Cadence regarding Cadence's financial results for the quarter ended September 30, 2024 is attached hereto as Exhibit 99.02, and the press release and the commentary are incorporated herein by reference.
The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
Exhibit No.  Description
  
104Cover Page Interactive Data File (embedded within the Inline XBRL document).




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 28, 2024
CADENCE DESIGN SYSTEMS, INC.
By: /s/ John M. Wall
 John M. Wall
 Senior Vice President and Chief Financial Officer



Exhibit 99.01
Cadence Reports Third Quarter 2024 Financial Results
Exceeded Q3 guidance for revenue and operating margin
On track to deliver strong second half
Raising midpoint of 2024 non-GAAP EPS outlook to $5.90
SAN JOSE, Calif. — October 28, 2024 — Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced results for the third quarter of 2024.
Third Quarter 2024 Financial Results
•Revenue of $1.215 billion, compared to revenue of $1.023 billion in Q3 2023
•GAAP operating margin of 29%, compared to 29% in Q3 2023
•Non-GAAP operating margin of 45%, compared to 41% in Q3 2023
•GAAP diluted net income per share of $0.87, compared to $0.93 in Q3 2023
•Non-GAAP diluted net income per share of $1.64, compared to $1.26 in Q3 2023
•Quarter-end backlog was $5.6 billion and current remaining performance obligations ("cRPO"), contract revenue expected to be recognized as revenue in the next 12 months, was $2.9 billion

“Cadence delivered exceptional results for the third quarter of 2024, driven by broad-based strength across our portfolio, especially in IP, SD&A, and hardware systems,” said Anirudh Devgan, president and chief executive officer. “Customers are achieving outstanding results with Cadence.AI, and I’m excited by its accelerating proliferation as AI rapidly becomes an integral part of the design workflow.”

“I am pleased to report that Cadence delivered strong Q3 results, with total revenue growing 19% year-over-year. Our Q3 recurring revenue growth returned to low teens on a year-over-year basis, and China revenue continues to improve, representing 13% of our total revenue for Q3,” said John Wall, senior vice president and chief financial officer. “Our Q4 bookings pipeline looks exceptionally strong, and we are well positioned to deliver a strong 2024.”

CFO Commentary
Commentary on the third quarter of 2024 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.
Business Outlook
For fiscal year 2024, the company expects:
•Revenue in the range of $4.61 billion to $4.65 billion
•GAAP operating margin in the range of 29% to 30%
•Non-GAAP operating margin in the range of 42% to 43%
•GAAP diluted net income per share in the range of $3.70 to $3.76
•Non-GAAP diluted net income per share in the range of $5.87 to $5.93
The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use the current normalized non-GAAP tax rate through fiscal 2025 but will re-evaluate this rate periodically for significant items that may materially affect its projections.
Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release.





Business Highlights
•Cadence.AI portfolio powered by GenAI agents, AI-driven optimization and the big data analytics JedAI platform, offers unparalleled quality of results and productivity benefits, further proliferated with revenue nearly tripling over the last year
•System Design & Analysis business achieved 47 percent year-over-year revenue growth in Q3 with strong growth of Cadence's comprehensive multi-physics portfolio that couples the company's expertise in physics-based modeling with AI driven optimization
•Strong IP business momentum, with 59 percent year-over-year growth as Cadence executed to its profitable and scalable growth strategy. A long-term IP partner signed a major deal for Cadence's hardware, IP and services offering to help deliver its AI product roadmap and next generation subsystems
•Functional Verification delivered 22 percent year-over-year revenue growth, fueled by strong demand for Cadence's new ground-breaking hardware systems, especially at AI, hyperscale and automotive companies

Audio Webcast Scheduled
Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the third quarter 2024 financial results audio webcast today, October 28, 2024, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting October 28, 2024 at 5 p.m. (Pacific) and ending December 17, 2024 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.
About Cadence
Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary electronic products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For 10 years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at www.cadence.com.

© 2024 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.


This press release contains forward-looking statements, including Cadence's outlook on future operating results, financial condition, strategic objectives, business prospects, technology and product developments, industry trends, market growth and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) change in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions, and rising tensions and conflicts around the world such as in the Middle East and with respect to Taiwan; (vi) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence’s increased debt levels and obligations and Cadence’s ability to access capital and debt markets in the future; (vii) Cadence’s acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (viii) potential harm caused by compromises in cybersecurity and cybersecurity attacks; (ix) events that affect cash flow, liquidity, or reserves, or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (x) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject; and (xi) Cadence’s ability to successfully meet corporate governance, environmental and social targets and strategies. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.
For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings.
All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.



GAAP to Non-GAAP Reconciliation

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.

To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, investment gains or losses, income or expenses related to Cadence’s non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments.

Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.
The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:
 
Operating Margin ReconciliationThree Months Ended
September 30, 2024September 30, 2023
 (unaudited)
GAAP operating margin as a percent of total revenue
29%
29%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense
9%
9%
Amortization of acquired intangibles
2%
1%
Acquisition and integration-related costs
3%
1%
Restructuring
2%
1%
Non-qualified deferred compensation expenses (credits)
0%
0%
Non-GAAP operating margin as a percent of total revenue
45%
41%



Net Income ReconciliationThree Months Ended
September 30, 2024September 30, 2023
(in thousands)(unaudited)
Net income on a GAAP basis$238,111 $254,321 
Stock-based compensation expense109,013 88,032 
Amortization of acquired intangibles26,763 15,603 
Acquisition and integration-related costs29,284 14,213 
Restructuring 24,538 11,582 
Non-qualified deferred compensation expenses (credits)
4,567 (1,749)
Other income or expense related to investments and non-qualified deferred compensation plan assets*11,582 (11,755)
Income tax effect of non-GAAP adjustments6,341 (27,147)
Net income on a non-GAAP basis$450,199 $343,100 

*Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.

Diluted Net Income Per Share ReconciliationThree Months Ended
September 30, 2024September 30, 2023
(in thousands, except per share data)(unaudited)
Diluted net income per share on a GAAP basis$0.87 $0.93 
Stock-based compensation expense0.40 0.32 
Amortization of acquired intangibles0.10 0.06 
Acquisition and integration-related costs0.11 0.05 
Restructuring 0.09 0.04 
Non-qualified deferred compensation expenses (credits)
0.01 — 
Other income or expense related to investments and non-qualified deferred compensation plan assets*0.04 (0.04)
Income tax effect of non-GAAP adjustments0.02 (0.10)
Diluted net income per share on a non-GAAP basis$1.64 $1.26 
Shares used in calculation of diluted net income per share273,958 272,427 
*Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.
For more information, please contact:
Cadence Investor Relations
408-944-7100
investor_relations@cadence.com
Cadence Newsroom
408-944-7039
newsroom@cadence.com



Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
September 30, 2024 and December 31, 2023
(In thousands)
(Unaudited)
 
September 30, 2024December 31, 2023
Current assets:
Cash and cash equivalents$2,786,040 $1,008,152 
Receivables, net 560,973 489,224 
Inventories293,350 181,661 
Prepaid expenses and other459,560 297,180 
Total current assets4,099,923 1,976,217 
Property, plant and equipment, net 448,652 403,213 
Goodwill2,493,467 1,535,845 
Acquired intangibles, net 662,343 336,843 
Deferred taxes889,939 880,001 
Other assets572,707 537,372 
Total assets$9,167,031 $5,669,491 
Current liabilities:
Current portion of long-term debt
$349,958 $349,285 
Accounts payable and accrued liabilities627,200 576,558 
Current portion of deferred revenue697,836 665,024 
Total current liabilities1,674,994 1,590,867 
Long-term liabilities:
Long-term portion of deferred revenue102,439 98,931 
Long-term debt2,475,232 299,771 
Other long-term liabilities351,028 275,651 
Total long-term liabilities2,928,699 674,353 
Stockholders’ equity4,563,338 3,404,271 
Total liabilities and stockholders’ equity$9,167,031 $5,669,491 




Cadence Design Systems, Inc.
Condensed Consolidated Income Statements
For the Three and Nine Months Ended September 30, 2024 and September 30, 2023
(In thousands, except per share amounts)
(Unaudited)
 
 Three Months Ended
Nine Months Ended
 September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Revenue:
Product and maintenance$1,100,380 $965,840 $2,974,222 $2,852,372 
Services115,119 57,254 311,061 168,991 
Total revenue1,215,499 1,023,094 3,285,283 3,021,363 
Costs and expenses:
Cost of product and maintenance109,593 85,813 279,351 260,269 
Cost of services53,451 23,768 148,160 70,642 
Marketing and sales189,763 176,215 557,077 509,951 
Research and development407,369 369,642 1,157,067 1,074,353 
General and administrative71,581 58,556 203,733 166,688 
Amortization of acquired intangibles9,148 4,612 21,222 13,181 
Restructuring 24,538 11,582 24,785 11,582 
Total costs and expenses865,443 730,188 2,391,395 2,106,666 
Income from operations350,056 292,906 893,888 914,697 
Interest expense(24,495)(9,059)(46,092)(27,196)
Other income, net
7,853 16,106 111,371 32,363 
Income before provision for income taxes
333,414 299,953 959,167 919,864 
Provision for income taxes
95,303 45,632 243,893 202,619 
Net income$238,111 $254,321 $715,274 $717,245 
Net income per share - basic$0.87 $0.94 $2.64 $2.66 
Net income per share - diluted$0.87 $0.93 $2.61 $2.63 
Weighted average common shares outstanding - basic272,244 269,229 270,925 269,480 
Weighted average common shares outstanding - diluted273,958 272,427 273,679 272,859 



Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2024 and September 30, 2023
(In thousands)
(Unaudited) 
Nine Months Ended
 September 30, 2024September 30, 2023
Cash and cash equivalents at beginning of period
$1,008,152 $882,325 
Cash flows from operating activities:
Net income715,274 717,245 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization142,252 106,783 
Amortization of debt discount and fees2,381 942 
Stock-based compensation284,711 238,928 
Gain on investments, net
(64,458)(12,732)
Deferred income taxes(5,082)(23,506)
Provisions for losses on receivables1,124 1,692 
ROU asset amortization and change in operating lease liabilities(1,100)(2,684)
Other non-cash items309 1,962 
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables(44,766)50,024 
Inventories(139,179)(47,293)
Prepaid expenses and other(114,785)33,307 
Other assets(8,759)(26,580)
Accounts payable and accrued liabilities21,858 43,111 
Deferred revenue6,680 (14,628)
Other long-term liabilities22,732 10,514 
Net cash provided by operating activities819,192 1,077,085 
Cash flows from investing activities:
Purchases of investments(2,095)(145,150)
Proceeds from the sale and maturity of investments45,656 64,174 
Purchases of property, plant and equipment(105,340)(68,634)
Cash paid in business combinations, net of cash acquired (735,327)(163,963)
Net cash used for investing activities(797,106)(313,573)
Cash flows from financing activities:
Proceeds from revolving credit facility
— 50,000 
Payments on revolving credit facility
— (150,000)
Proceeds from issuance of debt
3,196,595 — 
Payment of term loans
(1,000,000)— 
Payment of debt issuance costs(22,669)— 
Proceeds from issuance of common stock193,933 131,341 
Stock received for payment of employee taxes on vesting of restricted stock(217,462)(122,182)
Payments for repurchases of common stock(400,018)(575,127)
Net cash provided by (used for) financing activities
1,750,379 (665,968)
Effect of exchange rate changes on cash and cash equivalents5,423 (17,887)
Increase in cash and cash equivalents
1,777,888 79,657 
Cash and cash equivalents at end of period
$2,786,040 $961,982 






Cadence Design Systems, Inc.
(Unaudited)
Revenue Mix by Geography (% of Total Revenue)
 
 20232024
GEOGRAPHYQ1Q2Q3Q4YearQ1Q2Q3
Americas44 %41 %43 %44 %43 %46 %49 %50 %
China17 %18 %17 %15 %17 %12 %12 %13 %
Other Asia18 %18 %19 %19 %19 %20 %19 %17 %
Europe, Middle East and Africa15 %17 %15 %16 %16 %17 %14 %14 %
Japan6 %6 %6 %6 %5 %5 %6 %6 %
Total100 %100 %100 %100 %100 %100 %100 %100 %

Revenue Mix by Product Category (% of Total Revenue)
 
 20232024
PRODUCT CATEGORYQ1Q2Q3Q4YearQ1Q2Q3
Custom IC Design and Simulation20 %22 %22 %22 %22 %22 %21 %19 %
Digital IC Design and Signoff25 %27 %28 %29 %27 %29 %27 %24 %
Functional Verification, including Emulation and Prototyping Hardware32 %27 %26 %24 %27 %25 %25 %27 %
Core EDA Total
77 %76 %76 %75 %76 %76 %73 %70 %
IP11 %11 %11 %13 %12 %12 %13 %14 %
System Design and Analysis12 %13 %13 %12 %12 %12 %14 %16 %
Total100 %100 %100 %100 %100 %100 %100 %100 %

















Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Operating Margin
As of October 28, 2024
(Unaudited)
 
Three Months Ending
December 31, 2024
Year Ending
December 31, 2024
 ForecastForecast
GAAP operating margin as a percent of total revenue
33.2% - 34.2%
29% - 30%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense
8%
8%
Amortization of acquired intangibles2%
2%
Acquisition and integration-related costs
2%
2%
Restructuring 0%
1%
Non-qualified deferred compensation expenses0%0%
Special charges
0%0%
Non-GAAP operating margin as a percent of total revenue†
45.2% - 46.2%
42% - 43%
†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.









































Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share
As of October 28, 2024
(Unaudited)
 
Three Months Ending
December 31, 2024
Year Ending
December 31, 2024
 ForecastForecast
Diluted net income per share on a GAAP basis
$1.09 to $1.15
$3.70 to $3.76
Stock-based compensation expense0.391.44
Amortization of acquired intangibles0.100.33
Acquisition and integration-related costs0.090.35
Restructuring —0.09
Non-qualified deferred compensation expenses—0.04
Special charges
——
Other income or expense related to investments and non-qualified deferred compensation plan assets*—(0.27)
Income tax effect of non-GAAP adjustments0.110.19
Diluted net income per share on a non-GAAP basis†
$1.78 to $1.84
$5.87 to $5.93
†
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
*
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.


Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Net Income
As of October 28, 2024
(Unaudited)
 
Three Months Ending
December 31, 2024
Year Ending
December 31, 2024
($ in millions)ForecastForecast
Net income on a GAAP basis
$300 to $316
$1,015 to $1,031
Stock-based compensation expense108393
Amortization of acquired intangibles2791
Acquisition and integration-related costs2496
Restructuring —25
Non-qualified deferred compensation expenses—11
Special charges
—1
Other income or expense related to investments and non-qualified deferred compensation plan assets*—(75)
Income tax effect of non-GAAP adjustments3052
Net income on a non-GAAP basis†
$489 to $505
$1,609 to $1,625
†
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
*
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.


Exhibit 99.02
image0a22a.jpg

CADENCE REPORTS THIRD QUARTER
2024
CADENCE DESIGN SYSTEMS, INC.
CFO COMMENTARY
Key Takeaways
• Q3 revenue growth of ~19% year-over-year
• Q3 non-GAAP operating margin of 45%
• Raising midpoint of 2024 non-GAAP EPS outlook to $5.90

Q4 2024 Outlook
• Revenue: $1.325 billion - $1.365 billion
• GAAP operating margin: 33.2% - 34.2%
• Non-GAAP operating margin: 45.2% - 46.2%
• GAAP EPS: $1.09 - $1.15
• Non-GAAP EPS: $1.78 - $1.84
• Expect to use approximately $150 million to repurchase Cadence shares in Q4
Q3 2024 KEY METRICS
• Revenue: $1.215 billion
• GAAP operating margin: 29%
• Non-GAAP operating margin: 45%
• GAAP EPS: $0.87
• Non-GAAP EPS: $1.64
• Operating cash flow: $410 million

FY 2024 Outlook
• Revenue: $4.61 billion - $4.65 billion
• GAAP operating margin: 29% - 30%
• Non-GAAP operating margin: 42% - 43%
• GAAP EPS: $3.70 - $3.76
• Non-GAAP EPS: $5.87 - $5.93
• Operating cash flow: $1.0 billion - $1.2 billion
• Expect to use approximately 50% of free cash flow to repurchase Cadence shares for the year
Financial Results Webcast
Our Q3 2024 financial results webcast will begin October 28, 2024 at 2:00 p.m. (Pacific). The webcast may be accessed at www.cadence.com/cadence/investor_relations. An archive of the webcast will be available on October 28, 2024 until 5:00 p.m. (Pacific) on December 17, 2024.
October 28, 2024Cadence Q3 2024 Financial Results
1

Cadence Design Systems, Inc.
Financial Metrics
(In Millions, except per share data)201820192020*20212022
2023*
2024E
Revenue$2,138 $2,336 $2,683 $2,988 $3,562 $4,090 
$4,610- $4,650
Revenue growth*10%9%15%11%19%
15%
13% - 14%
3-year CAGR8%9%11%12%15%15%
~16%
3-year CAGR without 53rd week impact11%
16%
GAAP operating expenses$1,742 $1,845 $2,037 $2,209 $2,488 $2,839 
~$3,279
GAAP operating expense growth8%6%10%8%13%
14%
~15%
Non-GAAP operating expenses$1,491 $1,587 $1,739 $1,877 $2,125 $2,373 
~$2,662
Non-GAAP operating expense growth6%6%10%8%13%
12%
~12%
GAAP operating margin**19%21%24%26%30%
31%
29.5 %
Non-GAAP operating margin**30%32%35%37%40%
42%
42.5 %
GAAP earnings per share$1.23 $3.53 $2.11 $2.50 $3.09 $3.82 
$3.70 - $3.76
Non-GAAP earning per share$1.87 $2.20 $2.80 $3.29 $4.27 $5.15 
$5.87 - $5.93
Non-GAAP EPS growth**34%18%27%18%30%
21%
15 %
3-year Non-GAAP EPS CAGR**20%22%26%21%25%
23%
21 %
Weighted average shares diluted outstanding281.1280.5279.6278.9275.0
272.7
273 - 275
Cash flow from operations6057309051,1011,242
1,349
$1,000 - $1,200
Capital expenditures62759565123
102
~$130
* Fiscal 2020 was a 53-week year, compared to all other years which were 52 week years. 2020 (which impacts the 3 year CAGR in 2023) included approximately $45 million revenue impact for the extra week.
** At midpoint of outlook.
Profitability Trends
(In Millions)20182019202020212022
2023
2024E*
Revenue$2,138 $2,336 $2,683 $2,988 $3,562 $4,090 $4,630 
Revenue Growth 10%9%15%11%19%
15%
13%
3-Year Revenue Growth CAGR 8%9%11%12%15%15%
16%
GAAP operating margin19%21%24%26%30%
31%
29.5%
Non-GAAP operating margin
30.2%
32.1%
35.2%
37.2%
40.3%
42.0%
42.5%
Stock-based compensation
(7.8)%
(7.8)%
(7.4)%
(7.0)%
(7.6)%
(8.0)%
(8.5)%
Non-GAAP operating margin adjusted for stock-based compensation
22.4%
24.3%
27.8%
30.2%
32.7%
34.0%
34.0%
GAAP operating income$396 $492 $646 $779 $1,074 $1,251 $1,351 
Non-GAAP operating income $647 $749 $944 $1,111 $1,436 $1,717 $1,968 
Non-GAAP operating income adjusted for stock-based compensation$479 $567 $747 $901 $1,166 $1,391 $1,575 
* At midpoint of outlook.
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Cadence Design Systems, Inc.
Fourth Quarter 2024 Financial Outlook
Q4 2023
Q3 2024
Q4 2024E
Total Revenue ($ Millions)$1,069 $1,215 
$1,325 - $1,365
   Q/Q Growth
15%
9% - 12%
   Y/Y Growth
19%
24% - 28%
GAAP Operating Margin
31%
29%
33.2% - 34.2%
Non-GAAP Operating Margin
43%
45%
45.2% - 46.2%
GAAP EPS$1.19 $0.87 
$1.09 - $1.15
Non-GAAP EPS$1.38 $1.64 
$1.78 - $1.84

Fiscal Year 2024 Financial Outlook
PreviousCurrent
FY 2023
FY 2024E
FY 2024E
Recurring Revenue
84%
80% - 85%
80% - 85%
Total Revenue ($ Millions)$4,090 
$4,600 - $4,660
$4,610 - $4,650
   Y/Y Growth
15%
12% - 14%
13% - 14%
Revenue from Beginning Backlog
~75%
~70%
~70%
GAAP Operating Margin
30.6%
29.7% - 31.3%
29% - 30%
Non-GAAP Operating Margin
42.0%
41.7% - 43.3%
42% - 43%
GAAP Other Income & Expense ($ Millions)$31 
$42 - $56
$40 - $50
Non-GAAP Other Income & Expense ($ Millions)$(15)
$(31) - $(45)
$(25) - $(35)
GAAP Tax Rate19%
~25%
~27%
Non-GAAP Tax Rate17.5%
16.5%
16.5%
Weighted Average Diluted Shares Outstanding (Millions)
272.7
273.5 - 275.5
273 - 275
GAAP EPS$3.82 
$3.82 - $4.02
$3.70 - $3.76
   Y/Y Growth
24%
0% - 5%
(3)% - (2)%
Non-GAAP EPS$5.15 
$5.77 - $5.97
$5.87 - $5.93
   Y/Y Growth
21%
12% - 16%
14% - 15%
Cash Flow from Operations ($ Millions)$1,349 
$1,000 - $1,200
$1,000 - $1,200
DSO
43
~45~45
Capital Expenditures ($ Millions)$102 
~$130
~$130


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Cadence Design Systems, Inc.
Third Quarter Financial Results
Backlog
(In Billions)202020212022
2023
Q3 2024
Backlog$3.9 $4.4 $5.8 $6.0 $5.6 
Revenue
(In Millions)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Product and Maintenance$966 $982 $913 $961 $1,100 
Services57 87 96 100 115 
   Total Revenue$1,023 $1,069 $1,009 $1,061 $1,215 
Recurring and Up-Front Revenue
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Revenue recognized over time83 %85 %87 %85 %80 %
Revenue from arrangements with non-cancelable commitments2 %2 %3 %3 %2 %
Recurring Revenue85 %87 %90 %88 %82 %
Up-Front Revenue15 %13 %10 %12 %18 %
Total100 %100 %100 %100 %100 %
Trailing Twelve Months Recurring and Up-Front Revenue
Trailing Twelve Months Ended
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Recurring Revenue84 %84 %87 %87 %86 %
Up-Front Revenue16 %16 %13 %13 %14 %
   Total 100 %100 %100 %100 %100 %
Revenue Mix by Geography
(% of Total Revenue)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Americas43 %44 %46 %49 %50 %
China17 %15 %12 %12 %13 %
Other Asia19 %19 %20 %19 %17 %
Europe, Middle East and Africa15 %16 %17 %14 %14 %
Japan6 %6 %5 %6 %6 %
   Total100 %100 %100 %100 %100 %
Revenue Mix by Product Category
(% of Total Revenue)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Custom IC Design and Simulation22 %22 %22 %21 %19 %
Digital IC Design and Signoff28 %29 %29 %27 %24 %
Functional Verification26 %24 %25 %25 %27 %
   Core EDA Total
76 %75 %76 %73 %70 %
IP11 %13 %12 %13 %14 %
System Design and Analysis13 %12 %12 %14 %16 %
   Total100 %100 %100 %100 %100 %

October 28, 2024Cadence Q3 2024 Financial Results
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Cadence Design Systems, Inc.
Gross Margin
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
GAAP Gross Margin89.3 %90.3 %87.6 %86.9 %86.6 %
Non-GAAP Gross Margin90.6 %91.7 %89.1 %88.5 %88.6 %
Total Costs and Expenses
(In Millions)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Total GAAP Costs and Expenses$730 $732 $759 $767 $865 
Total Non-GAAP Costs and Expenses$603 $610 $627 $635 $671 
Operating Margin
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
GAAP Operating Margin28.6 %31.5 %24.8 %27.7 %28.8 %
Non-GAAP Operating Margin41.1 %42.9 %37.8 %40.1 %44.8 %
Net Income Per Share
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
GAAP Net Income Per Share$0.93 $1.19 $0.91 $0.84 $0.87 
Non-GAAP Net Income Per Share$1.26 $1.38 $1.17 $1.28 $1.64 
Total DSO
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
DSO
39
43
36
49
44
Balance Sheet and Cash Review
Free Cash Flow
(In Millions)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Net Cash from Operating Activities$396 $272 $253 $156 $410 
Capital Expenditures22 34 49 29 27 
Free Cash Flow$374 $238 $204 $127 $383 
Cash and Cash Equivalents
(In Millions)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Cash and Cash Equivalents$962 $1,008 $1,012 $1,059 $2,786 
•Approximately 74 percent of our cash and cash equivalents were in the U.S. at quarter-end.
Debt
(In Millions)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Debt (principal value)
$650 $650 $650 $1,350 $2,850 
•In September 2024, Cadence issued $2.5 billion of Senior Notes at a weighted average interest rate of 4.44%.
Share Repurchase
(In Millions)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Share Repurchase$185 $125 $125 $125 $150 
Number of Shares0.811 0.488 0.425 0.423 0.563 
•Q3 2023 includes 276,330 shares and $60 million equity forward contract from Q2 2023 ASR settled in Q3 2023.
October 28, 2024Cadence Q3 2024 Financial Results
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Cadence Design Systems, Inc.
Employees
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Headcount11,139 11,226 11,753 12,665 12,703 
October 28, 2024Cadence Q3 2024 Financial Results
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Forward Looking Statements
This CFO Commentary contains forward-looking statements, including Cadence's outlook on future operating results, financial condition, strategic objectives, business prospects, technology and product developments, industry trends, market growth and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) change in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions, and rising tensions and conflicts around the world such as in the Middle East and with respect to Taiwan; (vi) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence's increased debt levels and obligations and Cadence’s ability to access capital and debt markets in the future; (vii) Cadence’s acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (viii) potential harm caused by compromises in cybersecurity and cybersecurity attacks; (ix) events that affect cash flow, liquidity, or reserves, or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (x) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject; and (xi) Cadence’s ability to successfully meet corporate governance, environmental and social targets and strategies. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings.

All forward-looking statements in this document are based on management's expectations as of the date of this document and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this CFO Commentary with their most directly comparable GAAP financial results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance. See our earnings press release issued today for further discussion of our non-GAAP financial measures, as well as the reconciliation provided in the Appendix to this CFO Commentary.

Cadence’s management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of the company’s core business operations and therefore provides supplemental information to Cadence’s management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence’s business from the same perspective as Cadence’s management, including forecasting and budgeting.

© 2024 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
October 28, 2024Cadence Q3 2024 Financial Results
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Cadence Design Systems, Inc.
APPENDIX I
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Reconciliation of GAAP Total Expenses to Non-GAAP Total Expenses
(In Millions)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
GAAP total costs and expenses$730 $732 $759 $767 $865 
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense(88)(87)(88)(88)(109)
Amortization of acquired intangibles(15)(17)(17)(20)(27)
Acquisition and integration-related costs(14)(13)(22)(21)(29)
Restructuring(12)1 — — (25)
Non-qualified deferred compensation (expenses) credits2 (6)(5)(2)(4)
Special charges
— — — (1)— 
Non-GAAP total costs and expenses*$603 $610 $627 $635 $671 
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
Reconciliation of GAAP Total Expenses to Non-GAAP Total Expenses
(In Millions)201820192020*20212022
2023
2024E
GAAP total costs and expenses$1,742 $1,845 $2,037 $2,209 $2,488 $2,839 $3,279 
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense(168)(182)(197)(210)(270)(326)(393)
Amortization of acquired intangibles(53)(53)(64)(67)(60)(62)(91)
Acquisition and integration-related costs(20)(8)(23)(23)(41)(56)(96)
Restructuring (11)(9)(9)1 — (11)(25)
Non-qualified deferred compensation (expenses) credits1 (5)(5)(6)8 (11)(11)
Special charges**— (1)— (27)— — (1)
Non-GAAP total costs and expenses***$1,491 $1,587 $1,739 $1,877 $2,125 $2,373 $2,662 
*Fiscal 2020 was a 53-week year.
**2021 includes costs related to a voluntary retirement program.
***The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
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Reconciliation of GAAP Operating Income to Non-GAAP Operating Income and Non-GAAP Operating Income Adjusted for Stock-based Compensation
(In Millions)201820192020*20212022
2023
2024E
GAAP operating income
$396 $492 $646 $779 $1,074 $1,251 $1,351 
Reconciling items to non-GAAP operating income
Stock-based compensation expense168 182 197 210 270 326 393 
Amortization of acquired intangibles53 53 64 67 60 62 91 
Acquisition and integration-related costs20 8 23 23 41 56 96 
Restructuring 11 9 9 (1)— 11 25 
Non-qualified deferred compensation expenses (credits)
(1)5 5 6 (8)11 11 
Special charges**— 1 — 27 — — 1 
Non-GAAP operating income***
$647 $749 $944 $1,111 $1,436 $1,717 $1,968 
Stock-based compensation expense(168)(182)(197)(210)(270)(326)$(393)
Non-GAAP operating income adjusted for stock-based compensation***
$479 $567 $747 $901 $1,166 $1,391 $1,575 
Table may not foot due to rounding
*Fiscal 2020 was a 53-week year.
**2021 includes costs related to a voluntary retirement program.
***The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
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Reconciliation of GAAP Gross Margin as a Percent of Total Revenue to Non-GAAP Gross Margin as a Percent of Total Revenue
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
GAAP gross margin as a percent of total revenue
89.3%
90.3%
87.6%
86.9%
86.6%
Reconciling items to non-GAAP gross margin as a percent of total revenue
Stock-based compensation expense0.2%
0.3%
0.3%
0.3%
0.3%
Amortization of acquired intangibles1.1%1.1%1.1%
1.2%
1.5%
Non-qualified deferred compensation expenses (credits)0.0%0.0%0.0%0.0%0.0%
Acquisition and integration-related costs0.0%0.0%
0.1%
0.1%
0.2%
Non-GAAP gross margin as a percent of total revenue*
90.6%
91.7%
89.1%
88.5%
88.6%
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.


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Reconciliation of GAAP Operating Margin as a Percent of Total Revenue to Non-GAAP Operating Margin as a Percent of Total Revenue
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024E
GAAP operating margin as a percent of total revenue
29%
31%
25%
28%
29%
33.2% - 34.2%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Stock-based compensation expense
9%
8%
9%
8%
9%
8%
Amortization of acquired intangibles
1%
2%
2%
2%
2%
2%
Acquisition and integration-related costs1%1%
2%
2%
3%
2%
Restructuring
1%
0%
0%
0%
2%
0%
Non-qualified deferred compensation expenses (credits)0%
1%
0%
0%
0%
0%
Special charges
0%0%0%0%0%0%
Non-GAAP operating margin as a percent of total revenue*
41%
43%
38%
40%
45%
45.2% - 46.2%
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
Reconciliation of GAAP Operating Margin as a Percent of Total Revenue to Non-GAAP Operating Margin as a Percent of Total Revenue
20182019202020212022
2023
2024E
GAAP operating margin as a percent of total revenue19%21%24%26%30%
31%
29% - 30%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Stock-based compensation expense8%8%7%7%8%
8%
8%
Amortization of acquired intangibles2%2%3%2%2%
2%
2%
Acquisition and integration-related costs1%0%1%1%1%
1%
2%
Restructuring 0%1%0%0%0%
0%
1%
Non-qualified deferred compensation expenses (credits)0%0%0%0%(1)%
0%
0%
Special charges *0%0%0%1%0%0%0%
Non-GAAP operating margin as a percent of total revenue**30%32%35%37%40%
42%
42% - 43%
*2021 includes costs related to a voluntary retirement program.
**The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
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Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share
(In Thousands, Except Per Share Data)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024E
Diluted net income per share on a GAAP basis$0.93 $1.19 $0.91 $0.84 $0.87 
$1.09 - $1.15
Stock-based compensation expense0.32 0.32 0.32 0.32 0.40 0.39 
Amortization of acquired intangibles0.06 0.06 0.06 0.07 0.10 0.10 
Acquisition and integration-related costs0.05 0.04 0.08 0.08 0.11 0.09 
Restructuring 0.04 — — — 0.09 — 
Non-qualified deferred compensation expenses (credits)— 0.02 0.02 0.01 0.01 — 
Special charges
— — — — — — 
Other income or expense related to investments and non-qualified deferred compensation plan assets**(0.04)(0.10)(0.22)(0.10)0.04 — 
Income tax effect of non-GAAP adjustments(0.10)(0.15)— 0.06 0.02 0.11 
Diluted net income per share on a non-GAAP basis*$1.26 $1.38 $1.17 $1.28 $1.64 
$1.78 - $1.84
Shares used in calculation of diluted net income per share272,427 272,419 273,544 273,520 273,958 
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
**Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.





October 28, 2024Cadence Q3 2024 Financial Results
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Cadence Design Systems, Inc.
Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share
(In Thousands, Except Per Share Data)20182019202020212022
2023
2024E
Diluted net income per share on a GAAP basis$1.23 $3.53 $2.11 $2.50 $3.09 $3.82 
$3.70 - $3.76
Stock-based compensation expense0.60 0.65 0.71 0.75 0.98 1.19 1.44 
Amortization of acquired intangibles0.19 0.19 0.23 0.24 0.22 0.23 0.33 
Acquisition and integration-related costs0.07 0.03 0.08 0.08 0.15 0.21 0.35 
Restructuring 0.04 0.03 0.03 — — 0.04 0.09 
Non-qualified deferred compensation expenses (credits)(0.01)0.02 0.02 0.02 (0.03)0.04 0.04 
Special charges**— — — 0.10 — — — 
Other income or expense related to investments and non-qualified deferred compensation plan assets***— (0.01)— (0.03)0.05 (0.17)(0.27)
Income tax benefit related to intercompany transfers of certain intellectual property rights— (2.05)— — — — — 
Income tax effect of non-GAAP adjustments(0.25)(0.19)(0.38)(0.37)(0.19)(0.21)0.19 
Diluted net income per share on a non-GAAP basis*$1.87 $2.20 $2.80 $3.29 $4.27 $5.15 
$5.87 - $5.93
Shares used in calculation of diluted net income per share 281,144 280,515 279,641 278,858 275,011 272,748 
273 - 275M
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
**2021 includes costs related to a voluntary retirement program.
***Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.








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Reconciliation of GAAP Total Other Income and Expense to Non-GAAP Total Other Income and Expense
(In Millions)
FY 2022
FY 2023
FY 2024E
GAAP total other income and expense$(28)$31 
$40 - $50
Reconciling items to non-GAAP total income and expense
Other income or expense related to investments and non-qualified deferred compensation plan assets**14 (46)(75)
Non-GAAP total other income and expense*$(14)$(15)
$(25) - $(35)
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
**Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.


October 28, 2024Cadence Q3 2024 Financial Results
14
v3.24.3
Document and Entity Information
Oct. 28, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 28, 2024
Entity Registrant Name CADENCE DESIGN SYSTEMS, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 000-15867
Entity Tax Identification Number 00-0000000
Entity Address, Address Line One 2655 Seely Avenue,
Entity Address, City or Town San Jose,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95134
City Area Code (408)
Local Phone Number 943-1234
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol CDNS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000813672
Amendment Flag false
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