0000813672false00008136722024-07-222024-07-22

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): July 22, 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 July 22, 2024, Cadence Design Systems, Inc. ("Cadence") issued a press release announcing its financial results for the quarter ended June 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 June 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: July 22, 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 Second Quarter 2024 Financial Results
Second Quarter Backlog of $6.0 Billion
Updating 2024 Revenue Outlook to 13% YoY Growth
SAN JOSE, Calif. — July 22, 2024 — Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced results for the second quarter of 2024.
Second Quarter 2024 Financial Results
•Revenue of $1.061 billion, compared to revenue of $977 million in Q2 2023
•GAAP operating margin of 28%, compared to 31% in Q2 2023
•Non-GAAP operating margin of 40%, compared to 42% in Q2 2023
•GAAP diluted net income per share of $0.84, compared to $0.81 in Q2 2023
•Non-GAAP diluted net income per share of $1.28, compared to $1.22 in Q2 2023
•Quarter-end backlog was $6.0 billion and current remaining performance obligations ("cRPO"), contract revenue expected to be recognized as revenue in the next 12 months, was $3.1 billion.

“Cadence delivered strong results for the second quarter of 2024, with robust demand for our cutting-edge technologies from AI, hyperscale, and automotive customers,” said Anirudh Devgan, president and chief executive officer. “I'm pleased with the strong momentum of our Cadence.AI portfolio and our next generation Z3 / X3 hardware systems, and am excited about the growing demand for our industry leading products from an expanding foundry ecosystem.”

“I am pleased with our strong Q2 results. We exceeded our outlook on all key financial metrics, closing Q2 with backlog of approximately $6 billion,” said John Wall, senior vice president and chief financial officer. “A good finish to the first half of the year, combined with ongoing demand for our solutions, sets us up for strong growth in the second half of 2024.”

CFO Commentary
Commentary on the second 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 $4.60 billion to $4.66 billion
•GAAP operating margin in the range of 29.7% to 31.3%
•Non-GAAP operating margin in the range of 41.7% to 43.3%
•GAAP diluted net income per share in the range of $3.82 to $4.02
•Non-GAAP diluted net income per share in the range of $5.77 to $5.97
For the third quarter of 2024, the company expects:
•Revenue in the range of $1.165 billion to $1.195 billion
•GAAP operating margin in the range of 27.7% to 29.3%
•Non-GAAP operating margin in the range of 40.7% to 42.3%
•GAAP diluted net income per share in the range of $0.83 to $0.93
•Non-GAAP diluted net income per share in the range of $1.39 to $1.49

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 continues to gain momentum, offering unparalleled chip-to-systems design capabilities that empower our customers to achieve exceptional quality of results and productivity benefits
•IP business continued its strong momentum with AI, 3D-IC and HPC applications fueling demand for our IP titles at the most advanced nodes
•Major long-term development partner broadly deployed Palladium Z3 to deliver to its next generation AI product roadmap, further solidifying Cadence’s leadership in verification
•Closed BETA CAE acquisition and we now offer a comprehensive multiphysics platform covering electromagnetics, electrothermal, CFD and structural analysis solutions

Audio Webcast Scheduled
Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the second quarter 2024 financial results audio webcast today, July 22, 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 July 22, 2024 at 5 p.m. (Pacific) and ending September 16, 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 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 rates, currency exchange rate fluctuations, inflation rates, Cadence’s upcoming debt maturities and Cadence’s ability to access capital and debt markets; (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
June 30, 2024June 30, 2023
 (unaudited)
GAAP operating margin as a percent of total revenue
28%
31%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense
8%
8%
Amortization of acquired intangibles
2%
2%
Acquisition and integration-related costs
2%
1%
Restructuring
0%
0%
Non-qualified deferred compensation expenses
0%
0%
Special charges
0%0%
Non-GAAP operating margin as a percent of total revenue
40%
42%



Net Income ReconciliationThree Months Ended
June 30, 2024June 30, 2023
(in thousands)(unaudited)
Net income on a GAAP basis$229,520 $221,120 
Stock-based compensation expense87,569 76,608 
Amortization of acquired intangibles20,155 14,920 
Acquisition and integration-related costs20,715 13,946 
Restructuring (33)— 
Non-qualified deferred compensation expenses
1,697 3,155 
Special charges
1,233 — 
Other income or expense related to investments and non-qualified deferred compensation plan assets*(27,048)(2,508)
Income tax effect of non-GAAP adjustments16,890 6,509 
Net income on a non-GAAP basis$350,698 $333,750 

*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
June 30, 2024June 30, 2023
(in thousands, except per share data)(unaudited)
Diluted net income per share on a GAAP basis$0.84 $0.81 
Stock-based compensation expense0.32 0.28 
Amortization of acquired intangibles0.07 0.06 
Acquisition and integration-related costs0.08 0.05 
Restructuring — — 
Non-qualified deferred compensation expenses
0.01 0.01 
Special charges
— — 
Other income or expense related to investments and non-qualified deferred compensation plan assets*(0.10)(0.01)
Income tax effect of non-GAAP adjustments0.06 0.02 
Diluted net income per share on a non-GAAP basis$1.28 $1.22 
Shares used in calculation of diluted net income per share273,520 272,996 
*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
June 30, 2024 and December 31, 2023
(In thousands)
(Unaudited)
 
June 30, 2024December 31, 2023
Current assets:
Cash and cash equivalents$1,058,955 $1,008,152 
Receivables, net 564,851 489,224 
Inventories171,508 181,661 
Prepaid expenses and other401,074 297,180 
Total current assets2,196,388 1,976,217 
Property, plant and equipment, net 449,422 403,213 
Goodwill2,417,747 1,535,845 
Acquired intangibles, net 664,038 336,843 
Deferred taxes892,963 880,001 
Other assets605,183 537,372 
Total assets$7,225,741 $5,669,491 
Current liabilities:
Current portion of long-term debt
$349,732 $349,285 
Accounts payable and accrued liabilities505,392 576,558 
Current portion of deferred revenue678,598 665,024 
Total current liabilities1,533,722 1,590,867 
Long-term liabilities:
Long-term portion of deferred revenue88,823 98,931 
Long-term debt998,935 299,771 
Other long-term liabilities343,369 275,651 
Total long-term liabilities1,431,127 674,353 
Stockholders’ equity4,260,892 3,404,271 
Total liabilities and stockholders’ equity$7,225,741 $5,669,491 




Cadence Design Systems, Inc.
Condensed Consolidated Income Statements
For the Three and Six Months Ended June 30, 2024 and June 30, 2023
(In thousands, except per share amounts)
(Unaudited)
 
 Three Months Ended
Six Months Ended
 June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Revenue:
Product and maintenance$960,457 $922,790 $1,873,842 $1,886,532 
Services100,224 53,789 195,942 111,737 
Total revenue1,060,681 976,579 2,069,784 1,998,269 
Costs and expenses:
Cost of product and maintenance94,363 74,218 169,758 174,456 
Cost of services44,907 22,640 94,709 46,874 
Marketing and sales186,725 167,070 367,314 333,736 
Research and development370,740 354,416 749,698 704,711 
General and administrative63,436 54,605 132,152 108,132 
Amortization of acquired intangibles6,667 4,302 12,074 8,569 
Restructuring (33)— 247 — 
Total costs and expenses766,805 677,251 1,525,952 1,376,478 
Income from operations293,876 299,328 543,832 621,791 
Interest expense(12,905)(8,877)(21,597)(18,137)
Other income, net
34,739 7,973 103,518 16,257 
Income before provision for income taxes
315,710 298,424 625,753 619,911 
Provision for income taxes
86,190 77,304 148,590 156,987 
Net income$229,520 $221,120 $477,163 $462,924 
Net income per share - basic$0.85 $0.82 $1.77 $1.72 
Net income per share - diluted$0.84 $0.81 $1.74 $1.70 
Weighted average common shares outstanding - basic270,912 269,714 270,259 269,607 
Weighted average common shares outstanding - diluted273,520 272,996 273,532 273,078 



Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2024 and June 30, 2023
(In thousands)
(Unaudited) 
Six Months Ended
 June 30, 2024June 30, 2023
Cash and cash equivalents at beginning of period
$1,008,152 $882,325 
Cash flows from operating activities:
Net income477,163 462,924 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization87,202 70,432 
Amortization of debt discount and fees684 626 
Stock-based compensation175,698 150,896 
(Gain) loss on investments, net
(80,599)554 
Deferred income taxes(9,506)(20,171)
Provisions for losses on receivables614 720 
ROU asset amortization and change in operating lease liabilities(1,410)(3,543)
Other non-cash items212 1,834 
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables(49,384)41,208 
Inventories(15,978)(16,981)
Prepaid expenses and other(39,868)50,793 
Other assets(38,967)(31,838)
Accounts payable and accrued liabilities(93,078)(37,049)
Deferred revenue(18,599)1,269 
Other long-term liabilities15,013 9,497 
Net cash provided by operating activities409,197 681,171 
Cash flows from investing activities:
Purchases of investments(2,095)(29,212)
Proceeds from the sale and maturity of investments43,864 1,505 
Purchases of property, plant and equipment(78,800)(46,655)
Cash paid in business combinations, net of cash acquired (720,821)(55,379)
Net cash used for investing activities(757,852)(129,741)
Cash flows from financing activities:
Proceeds from revolving credit facility
— 50,000 
Payments on revolving credit facility
— (150,000)
Proceeds from term loan700,000 — 
Payment of debt issuance costs(944)— 
Proceeds from issuance of common stock133,272 77,502 
Stock received for payment of employee taxes on vesting of restricted stock(166,903)(78,988)
Payments for repurchases of common stock(250,010)(450,119)
Net cash provided by (used for) financing activities
415,415 (551,605)
Effect of exchange rate changes on cash and cash equivalents(15,957)(8,225)
Increase (decrease) in cash and cash equivalents
50,803 (8,400)
Cash and cash equivalents at end of period
$1,058,955 $873,925 






Cadence Design Systems, Inc.
(Unaudited)
Revenue Mix by Geography (% of Total Revenue)
 
 20232024
GEOGRAPHYQ1Q2Q3Q4YearQ1Q2
Americas44 %41 %43 %44 %43 %46 %49 %
China17 %18 %17 %15 %17 %12 %12 %
Other Asia18 %18 %19 %19 %19 %20 %19 %
Europe, Middle East and Africa15 %17 %15 %16 %16 %17 %14 %
Japan6 %6 %6 %6 %5 %5 %6 %
Total100 %100 %100 %100 %100 %100 %100 %

Revenue Mix by Product Category (% of Total Revenue)
 
 20232024
PRODUCT CATEGORYQ1Q2Q3Q4YearQ1Q2
Custom IC Design and Simulation20 %22 %22 %22 %22 %22 %21 %
Digital IC Design and Signoff25 %27 %28 %29 %27 %29 %27 %
Functional Verification, including Emulation and Prototyping Hardware32 %27 %26 %24 %27 %25 %25 %
IP11 %11 %11 %13 %12 %12 %13 %
System Design and Analysis12 %13 %13 %12 %12 %12 %14 %
Total100 %100 %100 %100 %100 %100 %100 %

















Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Operating Margin
As of July 22, 2024
(Unaudited)
 
Three Months Ending
September 30, 2024
Year Ending
December 31, 2024
 ForecastForecast
GAAP operating margin as a percent of total revenue
27.7% - 29.3%
29.7% - 31.3%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense
9%
8%
Amortization of acquired intangibles2%
2%
Acquisition and integration-related costs
2%
2%
Non-qualified deferred compensation expenses0%0%
Non-GAAP operating margin as a percent of total revenue†
40.7% - 42.3%
41.7% - 43.3%
†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 July 22, 2024
(Unaudited)
 
Three Months Ending
September 30, 2024
Year Ending
December 31, 2024
 ForecastForecast
Diluted net income per share on a GAAP basis
$0.83 to $0.93
$3.82 to $4.02
Stock-based compensation expense0.381.43
Amortization of acquired intangibles0.100.33
Acquisition and integration-related costs0.100.34
Non-qualified deferred compensation expenses—0.02
Special charges
——
Other income or expense related to investments and non-qualified deferred compensation plan assets*—(0.32)
Income tax effect of non-GAAP adjustments(0.02)0.15
Diluted net income per share on a non-GAAP basis†
$1.39 to $1.49
$5.77 to $5.97
†
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 July 22, 2024
(Unaudited)
 
Three Months Ending
September 30, 2024
Year Ending
December 31, 2024
($ in millions)ForecastForecast
Net income on a GAAP basis
$228 to $256
$1,049 to $1,103
Stock-based compensation expense106391
Amortization of acquired intangibles2690
Acquisition and integration-related costs2793
Non-qualified deferred compensation expenses—6
Special charges
—1
Other income or expense related to investments and non-qualified deferred compensation plan assets*—(87)
Income tax effect of non-GAAP adjustments(5)41
Net income on a non-GAAP basis†
$382 to $410
$1,584 to $1,638
†
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 SECOND QUARTER
2024
CADENCE DESIGN SYSTEMS, INC.
CFO COMMENTARY
Key Takeaways
• Annual revenue growth outlook is now 13%, including $40 million from BETA CAE at the midpoint
• Annual non-GAAP operating margin outlook remains 42.5%
• Q2 ending backlog remains ~$6.0B

Q3 2024 Outlook
• Revenue: $1.165 billion - $1.195 billion
• GAAP operating margin: 27.7% - 29.3%
• Non-GAAP operating margin: 40.7% - 42.3%
• GAAP EPS: $0.83 - $0.93
• Non-GAAP EPS: $1.39 - $1.49
• Expect to use approximately $150 million to repurchase Cadence shares in Q3
Q2 2024 KEY METRICS
• Revenue: $1.061 billion
• GAAP operating margin: 28%
• Non-GAAP operating margin: 40%
• GAAP EPS: $0.84
• Non-GAAP EPS: $1.28
• Operating cash flow: $156 million

FY 2024 Outlook
• Revenue: $4.60 billion - $4.66 billion
• GAAP operating margin: 29.7% - 31.3%
• Non-GAAP operating margin: 41.7% - 43.3%
• GAAP EPS: $3.82 - $4.02
• Non-GAAP EPS: $5.77 - $5.97
• 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 Q2 2024 financial results webcast will begin July 22, 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 July 22, 2024 until 5:00 p.m. (Pacific) on September 16, 2024.
July 22, 2024Cadence Q2 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 
$4,600- $4,660
Revenue growth*10%9%15%11%19%
15%
12% - 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 
~$3,244
GAAP operating expense growth8%6%10%8%13%
14%
~14%
Non-GAAP operating expenses$1,491 $1,587 $1,739 $1,877 $2,125 $2,373 
~$2,663
Non-GAAP operating expense growth6%6%10%8%13%
12%
~12%
GAAP operating margin**19%21%24%26%30%
31%
30.5 %
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 
$3.82 - $4.02
Non-GAAP earning per share$1.87 $2.20 $2.80 $3.29 $4.27 $5.15 
$5.77 - $5.97
Non-GAAP EPS growth**34%18%27%18%30%
21%
14 %
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
273.5 - 275.5
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 guidance.
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%
30.5%
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)%
(8.4)%
Non-GAAP operating margin adjusted for stock-based compensation
22.4%
24.3%
27.8%
30.2%
32.7%
34.0%
34.1%
GAAP operating income$396 $492 $646 $779 $1,074 $1,251 $1,386 
Non-GAAP operating income $647 $749 $944 $1,111 $1,436 $1,717 $1,967 
Non-GAAP operating income adjusted for stock-based compensation$479 $567 $747 $901 $1,166 $1,391 $1,576 
* At midpoint of guidance.
July 22, 2024Cadence Q2 2024 Financial Results
2
Cadence Design Systems, Inc.
Third Quarter 2024 Financial Outlook
Q3 2023
Q2 2024
Q3 2024E
Total Revenue ($ Millions)$1,023 $1,061 
$1,165 - $1,195
   Q/Q Growth
5%
10% - 13%
   Y/Y Growth
9%
14% - 17%
GAAP Operating Margin
29%
28%
27.7% - 29.3%
Non-GAAP Operating Margin
41%
40%
40.7% - 42.3%
GAAP EPS$0.93 $0.84 
$0.83 - $0.93
Non-GAAP EPS$1.26 $1.28 
$1.39 - $1.49

Fiscal Year 2024 Financial Outlook
PreviousCurrent
FY 2023
FY 2024E
FY 2024E
Recurring Revenue
84%
80% - 85%
80% - 85%
Total Revenue ($ Millions)$4,090 
$4,560 - $4,620
$4,600 - $4,660
   Y/Y Growth
15%
11% - 13%
12% - 14%
Revenue from Beginning Backlog
~75%
~70%
~70%
GAAP Operating Margin
30.6%
31% - 32%
29.7% - 31.3%
Non-GAAP Operating Margin
42.0%
42% - 43%
41.7% - 43.3%
GAAP Other Income & Expense ($ Millions)$31 
$49 - $55
$42 - $56
Non-GAAP Other Income & Expense ($ Millions)$(15)
$(5) - $(11)
$(31) - $(45)
GAAP Tax Rate19%
~25%
~25%
Non-GAAP Tax Rate17.5%
16.5%
16.5%
Weighted Average Diluted Shares Outstanding (Millions)
272.7
272.5 - 274.5
273.5 - 275.5
GAAP EPS$3.82 
$4.04 - $4.14
$3.82 - $4.02
   Y/Y Growth
24%
6% - 8%
0% - 5%
Non-GAAP EPS$5.15 
$5.88 - $5.98
$5.77 - $5.97
   Y/Y Growth
21%
14% - 16%
12% - 16%
Cash Flow from Operations ($ Millions)$1,349 
$1,350 - $1,450
$1,000 - $1,200
DSO
43
~45~45
Capital Expenditures ($ Millions)$102 
~$120
~$130


July 22, 2024Cadence Q2 2024 Financial Results
3
Cadence Design Systems, Inc.
Second Quarter Financial Results
Backlog
(In Billions)202020212022
2023
Q2 2024
Backlog$3.9 $4.4 $5.8 $6.0 $6.0 
Revenue
(In Millions)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Product and Maintenance$923 $966 $982 $913 $961 
Services54 57 87 96 100 
   Total Revenue$977 $1,023 $1,069 $1,009 $1,061 
Recurring and Up-Front Revenue
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Revenue recognized over time82 %83 %85 %87 %85 %
Revenue from arrangements with non-cancelable commitments3 %2 %2 %3 %3 %
Recurring Revenue85 %85 %87 %90 %88 %
Up-Front Revenue15 %15 %13 %10 %12 %
Total100 %100 %100 %100 %100 %
Trailing Twelve Months Recurring and Up-Front Revenue
Trailing Twelve Months Ended
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Recurring Revenue84 %84 %84 %87 %87 %
Up-Front Revenue16 %16 %16 %13 %13 %
   Total 100 %100 %100 %100 %100 %
Revenue Mix by Geography
(% of Total Revenue)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Americas41 %43 %44 %46 %49 %
China18 %17 %15 %12 %12 %
Other Asia18 %19 %19 %20 %19 %
Europe, Middle East and Africa17 %15 %16 %17 %14 %
Japan6 %6 %6 %5 %6 %
   Total100 %100 %100 %100 %100 %
Revenue Mix by Product Category
(% of Total Revenue)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Custom IC Design and Simulation22 %22 %22 %22 %21 %
Digital IC Design and Signoff27 %28 %29 %29 %27 %
Functional Verification27 %26 %24 %25 %25 %
IP11 %11 %13 %12 %13 %
System Design and Analysis13 %13 %12 %12 %14 %
   Total100 %100 %100 %100 %100 %


July 22, 2024Cadence Q2 2024 Financial Results
4
Cadence Design Systems, Inc.

Gross Margin
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
GAAP Gross Margin90.1 %89.3 %90.3 %87.6 %86.9 %
Non-GAAP Gross Margin91.4 %90.6 %91.7 %89.1 %88.5 %
Total Costs and Expenses
(In Millions)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Total GAAP Costs and Expenses$677 $730 $732 $759 $767 
Total Non-GAAP Costs and Expenses$569 $603 $610 $627 $635 
Operating Margin
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
GAAP Operating Margin30.7 %28.6 %31.5 %24.8 %27.7 %
Non-GAAP Operating Margin41.8 %41.1 %42.9 %37.8 %40.1 %
Net Income Per Share
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
GAAP Net Income Per Share$0.81 $0.93 $1.19 $0.91 $0.84 
Non-GAAP Net Income Per Share$1.22 $1.26 $1.38 $1.17 $1.28 
Total DSO
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
DSO42
39
43
36
49
Balance Sheet and Cash Review
Free Cash Flow
(In Millions)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Net Cash from Operating Activities$414 $396 $272 $253 $156 
Capital Expenditures20 22 34 49 29 
Free Cash Flow$394 $374 $238 $204 $127 
Cash and Cash Equivalents
(In Millions)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Cash and Cash Equivalents$874 $962 $1,008 $1,012 $1,059 
•Approximately 26 percent of our cash and cash equivalents were in the U.S. at quarter-end.
Share Repurchase
(In Millions)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Share Repurchase$265 $185 $125 $125 $125 
Number of Shares1.178 0.811 0.488 0.425 0.423 
•Q3 2023 includes 276,330 shares and $60 million equity forward contract from Q2 2023 ASR settled in Q3 2023.
Employees
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Headcount10,832 11,139 11,226 11,753 12,665 
July 22, 2024Cadence Q2 2024 Financial Results
5
Cadence Design Systems, Inc.
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 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 rates, currency exchange rate fluctuations, inflation rates, Cadence's upcoming debt maturities and Cadence’s ability to access capital and debt markets; (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.
July 22, 2024Cadence Q2 2024 Financial Results
6
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)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
GAAP total costs and expenses$677 $730 $732 $759 $767 
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense(76)(88)(87)(88)(88)
Amortization of acquired intangibles(15)(15)(17)(17)(20)
Acquisition and integration-related costs(14)(14)(13)(22)(21)
Restructuring— (12)1 — — 
Non-qualified deferred compensation (expenses) credits(3)2 (6)(5)(2)
Special charges
— — — — (1)
Non-GAAP total costs and expenses*$569 $603 $610 $627 $635 
*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 $3,244 
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense(168)(182)(197)(210)(270)(326)(391)
Amortization of acquired intangibles(53)(53)(64)(67)(60)(62)(90)
Acquisition and integration-related costs(20)(8)(23)(23)(41)(56)(93)
Restructuring (11)(9)(9)1 — (11)— 
Non-qualified deferred compensation (expenses) credits1 (5)(5)(6)8 (11)(6)
Special charges**— (1)— (27)— — (1)
Non-GAAP total costs and expenses***$1,491 $1,587 $1,739 $1,877 $2,125 $2,373 $2,663 
*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.
July 22, 2024Cadence Q2 2024 Financial Results
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Cadence Design Systems, Inc.
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 $1,386 
Reconciling items to non-GAAP operating income
Stock-based compensation expense168 182 197 210 270 326 391 
Amortization of acquired intangibles53 53 64 67 60 62 90 
Acquisition and integration-related costs20 8 23 23 41 56 93 
Restructuring 11 9 9 (1)— 11 — 
Non-qualified deferred compensation expenses (credits)
(1)5 5 6 (8)11 6 
Special charges**— 1 — 27 — — 1 
Non-GAAP operating income***
$647 $749 $944 $1,111 $1,436 $1,717 $1,967 
Stock-based compensation expense(168)(182)(197)(210)(270)(326)$(391)
Non-GAAP operating income adjusted for stock-based compensation***
$479 $567 $747 $901 $1,166 $1,391 $1,576 
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.
July 22, 2024Cadence Q2 2024 Financial Results
8
Cadence Design Systems, Inc.
Reconciliation of GAAP Gross Margin as a Percent of Total Revenue to Non-GAAP Gross Margin as a Percent of Total Revenue
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
GAAP gross margin as a percent of total revenue90.1%
89.3%
90.3%
87.6%
86.9%
Reconciling items to non-GAAP gross margin as a percent of total revenue
Stock-based compensation expense0.2%0.2%
0.3%
0.3%
0.3%
Amortization of acquired intangibles1.1%1.1%1.1%1.1%
1.2%
Non-qualified deferred compensation expenses (credits)0.0%0.0%0.0%0.0%0.0%
Acquisition and integration-related costs0.0%0.0%0.0%
0.1%
0.1%
Non-GAAP gross margin as a percent of total revenue*91.4%
90.6%
91.7%
89.1%
88.5%
*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.


July 22, 2024Cadence Q2 2024 Financial Results
9
Cadence Design Systems, Inc.
Reconciliation of GAAP Operating Margin as a Percent of Total Revenue to Non-GAAP Operating Margin as a Percent of Total Revenue
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024E
GAAP operating margin as a percent of total revenue31%
29%
31%
25%
28%
27.7% - 29.3%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Stock-based compensation expense8%
9%
8%
9%
8%
9%
Amortization of acquired intangibles2%
1%
2%
2%
2%
2%
Acquisition and integration-related costs1%1%1%
2%
2%
2%
Restructuring 0%
1%
0%
0%
0%
0%
Non-qualified deferred compensation expenses (credits)0%0%
1%
0%
0%
0%
Special charges
0%0%0%0%0%0%
Non-GAAP operating margin as a percent of total revenue*42%
41%
43%
38%
40%
40.7% - 42.3%
*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%
29.7% - 31.3%
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%
0%
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%
41.7% - 43.3%
*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.
July 22, 2024Cadence Q2 2024 Financial Results
10
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)Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024E
Diluted net income per share on a GAAP basis$0.81 $0.93 $1.19 $0.91 $0.84 
$0.83 - $0.93
Stock-based compensation expense0.28 0.32 0.32 0.32 0.32 0.38 
Amortization of acquired intangibles0.06 0.06 0.06 0.06 0.07 0.10 
Acquisition and integration-related costs0.05 0.05 0.04 0.08 0.08 0.10 
Restructuring — 0.04 — — — — 
Non-qualified deferred compensation expenses (credits)0.01 — 0.02 0.02 0.01 — 
Special charges
— — — — — — 
Other income or expense related to investments and non-qualified deferred compensation plan assets**(0.01)(0.04)(0.10)(0.22)(0.10)— 
Income tax effect of non-GAAP adjustments0.02 (0.10)(0.15)— 0.06 (0.02)
Diluted net income per share on a non-GAAP basis*$1.22 $1.26 $1.38 $1.17 $1.28 
$1.39 - $1.49
Shares used in calculation of diluted net income per share272,996 272,427 272,419 273,544 273,520 
*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.





July 22, 2024Cadence Q2 2024 Financial Results
11
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 
$3.82 - $4.02
Stock-based compensation expense0.60 0.65 0.71 0.75 0.98 1.19 1.43 
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 0.34 
Restructuring 0.04 0.03 0.03 — — 0.04 — 
Non-qualified deferred compensation expenses (credits)(0.01)0.02 0.02 0.02 (0.03)0.04 0.02 
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)(0.32)
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)0.15 
Diluted net income per share on a non-GAAP basis*$1.87 $2.20 $2.80 $3.29 $4.27 $5.15 
$5.77 - $5.97
Shares used in calculation of diluted net income per share 281,144 280,515 279,641 278,858 275,011 272,748 
273.5 - 275.5M
*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.








July 22, 2024Cadence Q2 2024 Financial Results
12
Cadence Design Systems, Inc.
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 
$42 - $56
Reconciling items to non-GAAP total income and expense
Other income or expense related to investments and non-qualified deferred compensation plan assets**14 (46)(87)
Non-GAAP total other income and expense*$(14)$(15)
$(31) - $(45)
*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.


July 22, 2024Cadence Q2 2024 Financial Results
13
v3.24.2
Document and Entity Information
Jul. 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 22, 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
Cadence Design Systems (NASDAQ:CDNS)
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Cadence Design Systems (NASDAQ:CDNS)
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