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Synopsys, Inc. (Nasdaq: SNPS) 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.

Q4 FY 2022 Financial Highlights

• Revenue: $1.284 billion
• GAAP earnings per diluted share: $0.99
• Non-GAAP earnings per diluted share: $1.91
• FY 2022 Financial Highlights

Revenue: $5.082 billion

• GAAP earnings per diluted share: $6.29
• Non-GAAP earnings per diluted share: $8.90
• Cash flow from operations: $1.739 billion
• Cash, cash equivalents and short-term investments: $1.566 billion

“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.