Synopsys, Inc. (NASDAQ:SNPS) Q4 2023 Earnings Call Transcript November 29, 2023 5:00 PM ET

Company Participants

Trey Campbell - SVP, IR

Aart de Geus - Chairman and CEO

Sassine Ghazi - President and COO

Shelagh Glaser - CFO

Conference Call Participants

Harlan Sur - JP Morgan

Joe Vruwink - Baird

Vivek Arya - Bank of America Securities

Jason Celino - KeyBanc

Jay Vleeschhouwer - Griffin Securities

Charles Shi - Needham

Gianmarco Conti - Deutsche Bank

Operator

Ladies and gentlemen, welcome to the Synopsys Earnings Conference Call for the Fourth Quarter and Fiscal Year 2023. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to turn the call over to Trey Campbell, Senior Vice President, Invest Relations. Please go ahead.

Trey Campbell

Thanks Lisa. Good afternoon everyone. With us today are Aart de Geus, Chair and CEO of Synopsys; Sassine Ghazi, President and COO; and Shelagh Glaser, CFO.

Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts, targets, and other forward-looking statements regarding the company and its financial results. While these statements represent our best current judgment about future results and performance as of today, our actual results are subject to many risks and uncertainties. That could cause actual results to differ materially from what we expect. In addition to any risks that we highlight during this call, important factors that may affect our future results are described in our most recent SEC reports and today's earnings press release.

In addition, we will refer to certain non-GAAP financial measures during the discussion. Reconciliations to their most directly comparable GAAP financial measures and supplemental financial information can be found in the earnings press release, financial supplement and 8-K that we released earlier today. All of these items, plus the most recent investor presentation, are available on our website at www.synopsys.com. In addition, the prepared remarks will be posted on our website at the conclusion of the call.

With that, I'll turn the call over to Aart de Geus.

Aart de Geus

Good afternoon. In Q4, we exceeded the high end of all our guidance targets and delivered another quarterly revenue high at $1.599 billion. Q4 thus capped a record year, growing revenue by 15% to $5.84 billion, with strong orders expanding backlog by $1.5 billion to $8.6 billion. We further improved non-GAAP operating margin to 35.1%, increased non-GAAP EPS by 26%, generated $1.7 billion in operating cash flow while maintaining an exceptionally strong balance sheet. Clearly, Synopsys has moved forward with sustained momentum.