Cadence demonstrated strong performance in Q3 2024, with significant growth in AI-driven solutions, system design, and analysis. The company raised its EPS outlook and expanded key partnerships. Despite a decline in China revenue, sequential improvements suggest recovery. The strong pipeline for Q4 indicates continued momentum, though there is a noted concentration in hardware revenue.

Company Guidance

During the Cadence Third Quarter 2024 Earnings Call, the company delivered robust financial results and provided updated guidance, highlighting significant growth across various segments. Key metrics included a total revenue of $1.215 billion, marking a 19% year-over-year increase, with a non-GAAP operating margin of 44.8% and non-GAAP EPS of $1.64. The company raised its full-year guidance, projecting revenue between $4.61 billion and $4.65 billion, and non-GAAP EPS between $5.87 and $5.93. For Q4, Cadence anticipates revenue in the range of $1.325 billion to $1.365 billion and non-GAAP EPS of $1.78 to $1.84. The company also noted strong demand in its system design and analysis business, which saw over 40% year-over-year growth, and a significant increase in its IP business, which grew over 50% year-over-year. Cadence's AI-driven offerings, particularly its cadence.ai portfolio, experienced nearly triple sales over the past year, underscoring the accelerated adoption of AI technologies across various sectors.

Strong Revenue Growth

Cadence reported total revenue of $1.215 billion for Q3 2024, marking a 19% year-over-year growth. The system design and analysis business and IP business showed impressive growth, with IP delivering over 50% year-over-year revenue growth.

AI and System Design Momentum

Cadence's AI-driven system design strategy is driving significant momentum, with the AI portfolio's sales nearly tripling over the past year. The system design and analysis business outpaced the market with over 40% year-over-year revenue growth in Q3.

Partnerships and Market Expansion

Cadence expanded partnerships with NVIDIA, ARM, and TSMC, focusing on AI innovation and advanced technologies like TSMC's N3 and N2P. The collaboration with ARM includes a broad expansion of IP, hardware, and AI-driven design enablement solutions.

Cadence on Cloud Growth

The Cadence on Cloud platform showed strong traction with over 400 customers and a doubling of orders over the past year. The transition to the new OrCAD X cloud-enabled solution accelerated, with 1/3 of OrCAD customers converting.

Increased EPS Outlook

Cadence raised its full-year non-GAAP EPS outlook to a range of $5.87 to $5.93, reflecting strong business performance and momentum.

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Cadence Design (CDNS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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CDNS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 25, 2025	2024 (Q4)	1.82 / -	1.38	―	―	―
Oct 28, 2024	2024 (Q3)	1.46 / 1.64	1.26	30.16% (+0.38)	―
Jul 22, 2024	2024 (Q2)	1.23 / 1.28	1.22	4.92% (+0.06)	―
Apr 22, 2024	2024 (Q1)	1.13 / 1.17	1.29	-9.30% (-0.12)	―
Feb 12, 2024	2023 (Q4)	1.33 / 1.38	0.96	43.75% (+0.42)	―
Oct 23, 2023	2023 (Q3)	1.20 / 1.26	1.06	18.87% (+0.20)	―
Jul 24, 2023	2023 (Q2)	1.18 / 1.22	1.08	12.96% (+0.14)	―
Apr 24, 2023	2023 (Q1)	1.26 / 1.29	1.17	10.26% (+0.12)
Feb 13, 2023	2022 (Q4)	0.92 / 0.96	0.82	17.07% (+0.14)	―
Oct 24, 2022	2022 (Q3)	0.96 / 1.06	0.8	32.50% (+0.26)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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CDNS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 28, 2024	$252.77	$284.45	+12.53%
Jul 22, 2024	$287.08	$282.99	-1.42%
Apr 22, 2024	$285.02	$281.76	-1.14%
Feb 12, 2024	$306.58	$294.33	-4.00%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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