Technology
Synopsys Posts Financial Results for Third Quarter Fiscal Year 2024
Published
5 months agoon
By
Results Summary1
Record quarterly revenue of $1.526 billion, up approximately 13% year over year.Quarterly GAAP earnings per diluted share of $2.73; non-GAAP earnings per diluted share of $3.43, up approximately 27% year over year and exceeding guidance.Expecting record full-year revenue with growth of approximately 15% driven by continued, strong execution and business momentum.
SUNNYVALE, Calif., Aug. 21, 2024 /PRNewswire/ — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its third quarter of fiscal year 2024. Revenue for the third quarter of fiscal year 2024 was $1.526 billion, compared to $1.354 billion for the third quarter of fiscal year 2023.
“Our strong third quarter results and expectations for a record year continue to demonstrate the resiliency of Synopsys’ business,” said Sassine Ghazi, president and CEO of Synopsys. “The complexity and pace of technology innovation is accelerating as silicon and systems companies race to capitalize on AI in this era of pervasive intelligence. Synopsys is mission-critical to technology innovation and our customer set is expanding as more companies in more industries define and optimize system performance at the silicon level.”
“Synopsys delivered an excellent third quarter, setting a new quarterly revenue record and achieving non-GAAP EPS above our guidance range,” said Shelagh Glaser, CFO of Synopsys. “The strong momentum across the business is a result of our leadership products and relentless execution. For the full year, we expect to achieve revenue growth of approximately 15% and non-GAAP EPS growth of approximately 24% while expanding non-GAAP operating margin by two points.”
____________________________________________
1 Synopsys’ Software Integrity business has been presented as a discontinued operation in the consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis unless otherwise noted.
Continuing Operations
On May 5, 2024, Synopsys entered into an agreement to sell its Software Integrity business. Unless otherwise noted, Synopsys’ Software Integrity business has been presented as a discontinued operation in the consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.
GAAP Results
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal year 2024 was $425.9 million, or $2.73 per diluted share, compared to $335.7 million, or $2.17 per diluted share, for the third quarter of fiscal year 2023.
Non-GAAP Results
On a non-GAAP basis, net income for the third quarter of fiscal year 2024 was $535.5 million, or $3.43 per diluted share, compared to non-GAAP net income of $419.0 million, or $2.70 per diluted share, for the third quarter of fiscal year 2023.
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) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other and (2) Design IP, which includes our Synopsys IP portfolio.
Financial Targets
Synopsys also provided its consolidated financial targets for continuing operations for the fourth quarter and full fiscal year 2024. The fiscal year targets include the impact of an extra week in fiscal year 2024, which was included in the first quarter of fiscal year 2024. 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.
Fourth Quarter and Full Fiscal Year 2024 Financial Targets (1)(2)
(in millions except per share amounts)
Range for Three Months Ending
Range for Fiscal Year Ending
October 31, 2024
October 31, 2024
Low
High
Low
High
Revenue
$ 1,614
$ 1,644
$ 6,105
$ 6,135
GAAP Expenses
$ 1,210
$ 1,230
$ 4,577
$ 4,597
Non-GAAP Expenses
$ 1,027
$ 1,037
$ 3,760
$ 3,770
Non-GAAP Interest and Other Income (Expense), net
$ 8
$ 10
$ 41
$ 43
Non-GAAP Tax Rate
15 %
15 %
15 %
15 %
Outstanding Shares (fully diluted)
155
157
155
157
GAAP EPS
$ 2.25
$ 2.39
$ 9.71
$ 9.85
Non-GAAP EPS
$ 3.27
$ 3.32
$ 13.07
$ 13.12
Operating Cash Flow
~ $1,300
Free Cash Flow(3)
~ $1,100
Capital Expenditures
~ $200
(1) Synopsys’ fourth quarter of fiscal year 2024 and its fiscal year 2024 will end on November 2, 2024. For presentation purposes, we refer to the
closest calendar month end. The first quarter of fiscal year 2024 included one extra week.
(2) Presented on a continuing operations basis.
(3) Free cash flow is calculated as cash provided from operating activities less capital expenditures and capitalization of software development costs.
For a reconciliation of Synopsys’ fourth quarter and fiscal year 2024 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis and a discussion of the financial targets that we are not able to reconcile without unreasonable efforts, see “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.
Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys’ corporate website at investor.synopsys.com. Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the fourth quarter and fiscal year 2024 in December 2024.
Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys’ corporate website at www.synopsys.com (collectively, the “Earnings Materials”), represent Synopsys’ expectations and beliefs as of August 21, 2024. Although these Earnings Materials will remain available on Synopsys’ website through the date of the earnings call for the fourth quarter and fiscal year 2024, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law.
Availability of Final Financial Statements
Synopsys will include final financial statements for the third quarter of fiscal year 2024 in its quarterly report on Form 10-Q to be filed on or before September 12, 2024.
About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq: SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.
Reconciliation of Third Quarter Fiscal Year 2024 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2024 Results(1)
(unaudited and in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
July 31,
July 31,
2024
2023
2024
2023
GAAP net income from continuing operations
attributed to Synopsys
$ 425,868
$ 335,708
$ 1,162,429
$ 880,994
Adjustments:
Amortization of acquired intangible assets
17,436
11,951
49,962
35,591
Stock-based compensation
164,029
131,092
491,516
383,444
Acquisition/divestiture related items
53,022
4,840
110,210
9,815
Restructuring charges
—
21,879
—
54,439
Gain on sale of strategic investments
—
—
(55,077)
—
Tax settlement
—
(23,752)
—
(23,752)
Tax adjustments
(124,903)
(62,685)
(231,164)
(168,717)
Non-GAAP net income from continuing operations
attributed to Synopsys
$ 535,452
$ 419,033
$ 1,527,876
$ 1,171,814
Three Months Ended
Nine Months Ended
July 31,
July 31,
2024
2023
2024
2023
GAAP net income from continuing operations per diluted share
attributed to Synopsys
$ 2.73
$ 2.17
$ 7.46
$ 5.68
Adjustments:
Amortization of acquired intangible assets
0.11
0.08
0.32
0.23
Stock-based compensation
1.05
0.85
3.15
2.47
Acquisition/divestiture related items
0.34
0.03
0.71
0.06
Restructuring charges
—
0.14
—
0.35
Gain on sale of strategic investments
—
—
(0.35)
—
Tax settlement
—
(0.15)
—
(0.15)
Tax adjustments
(0.80)
(0.42)
(1.49)
(1.09)
Non-GAAP net income from continuing operations per diluted share
attributed to Synopsys
$ 3.43
$ 2.70
$ 9.80
$ 7.55
Shares used in computing net income per diluted share amounts:
156,131
154,947
155,863
155,119
(1) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively.
For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024
included one extra week.
GAAP to Non-GAAP Tax Rate Reconciliation (1)(2)
(unaudited)
Three Months Ended
Nine Months Ended
July 31, 2024
July 31, 2024
GAAP effective tax rate
(7.8) %
3.2 %
Income tax effect of above non-GAAP adjustments
22.8 %
11.8 %
Non-GAAP effective tax rate
15.0 %
15.0 %
(1) Synopsys’ third quarter of fiscal year 2024 ended on August 3, 2024. For presentation purposes, we refer to
the closest calendar month end. The first quarter of fiscal year 2024 included one extra week.
(2) Presented on a continuing operations basis.
Reconciliation of 2024 Targets
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Fourth Quarter Fiscal Year 2024 Targets (1)(2)
(in thousands, except per share amounts)
Range for Three Months Ending
October 31, 2024
Low
High
Target GAAP expenses
$ 1,210,000
$ 1,230,000
Adjustments:
Amortization of acquired intangible assets
(15,000)
(18,000)
Stock-based compensation
(168,000)
(175,000)
Target non-GAAP expenses
$ 1,027,000
$ 1,037,000
Range for Three Months Ending
October 31, 2024
Low
High
Target GAAP earnings per diluted share attributed to Synopsys
$ 2.25
$ 2.39
Adjustments:
Amortization of acquired intangible assets
0.12
0.10
Stock-based compensation
1.12
1.08
Acquisition/divestiture related items (3)
0.11
0.08
Tax adjustments
(0.33)
(0.33)
Target non-GAAP earnings per diluted share attributed to Synopsys
$ 3.27
$ 3.32
Shares used in non-GAAP calculation (midpoint of target range)
156,000
156,000
GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2024 Targets (1)(2)
(in thousands, except per share amounts)
Range for Fiscal Year Ending
October 31, 2024
Low
High
Target GAAP expenses
$ 4,576,771
$ 4,596,771
Adjustments:
Amortization of acquired intangible assets
(65,000)
(68,000)
Stock-based compensation
(660,000)
(667,000)
Acquisition/divestiture related items
(91,771)
(91,771)
Target non-GAAP expenses
$ 3,760,000
$ 3,770,000
Range for Fiscal Year Ending
October 31, 2024
Low
High
Target GAAP earnings per diluted share attributed to Synopsys
$ 9.71
$ 9.85
Adjustments:
Amortization of acquired intangible assets
0.44
0.42
Stock-based compensation
4.27
4.23
Acquisition/divestiture related items (3)
0.82
0.79
Gain on sale of strategic investments
(0.35)
(0.35)
Tax adjustments
(1.82)
(1.82)
Target non-GAAP earnings per diluted share attributed to Synopsys
$ 13.07
$ 13.12
Shares used in non-GAAP calculation (midpoint of target range)
156,000
156,000
(1) Synopsys’ fourth quarter of fiscal year 2024 and its fiscal year 2024 will end on November 2, 2024. For
presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024 included
one extra week.
(2) Presented on a continuing operations basis.
(3) Adjustments reflect actual expenses incurred by Synopsys as of August 3, 2024 as well as certain
contractually obligated financing fees and related amortization expenses, and do not fully reflect all potential
adjustments for future periods for the reasons set forth in “GAAP to Non-GAAP Reconciliation” below.
Forward-Looking Statements
This press release and the investor conference call contain forward-looking statements, including, but not limited to, statements regarding short-term and long-term financial targets, expectations and objectives, including, among others, the anticipated effects of our pending acquisition of ANSYS, Inc. (the Ansys Merger); strategies related to our products, technology and services; business and market outlook, opportunities, strategies and technological trends, such as artificial intelligence; the Ansys Merger, including, among other things, its anticipated benefits; planned dispositions and their expected impact, such as the previously announced divestiture of our Software Integrity business (the Software Integrity Divestiture); the potential impact of the uncertain macroeconomic and geopolitical environment on our financial results; the expected impact of U.S. and foreign government actions and regulatory changes, including export control restrictions on our financial results; customer demand and market expansion; our planned product releases and capabilities; industry growth rates; the expected realization of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); software trends; planned stock repurchases; our expected tax rate; and the impact and result of pending legal, administrative and tax proceedings. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and geopolitical uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations; failure to complete the Ansys Merger on the terms described in our filings with the SEC, if at all; failure to obtain required governmental approvals related to the Ansys Merger or the imposition of conditions to such governmental approvals that may have an adverse effect on us; failure to realize the benefits expected from the Ansys Merger; failure to complete the Software Integrity Divestiture, or the Software Integrity Divestiture disrupting our business or failing to achieve its intended benefits, and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys’ results is included in filings we make with the SEC from time to time, including in the sections entitled “Risk Factors” in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys’ most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. Synopsys’ financial results for its third quarter of fiscal year 2024 are not necessarily indicative of Synopsys’ operating results for any future periods. The information provided herein is as of August 21, 2024. Synopsys undertakes no duty to, and does not intend to, update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.
SYNOPSYS, INC.
Unaudited Condensed Consolidated Statements of Income (1)
(in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
July 31,
July 31,
2024
2023
2024
2023
Revenue:
Time-based products
$ 803,147
$ 827,396
$ 2,389,924
$ 2,235,531
Upfront products
442,528
292,653
1,281,283
958,631
Total products revenue
1,245,675
1,120,049
3,671,207
3,194,162
Maintenance and service
280,074
234,341
820,243
656,469
Total revenue
1,525,749
1,354,390
4,491,450
3,850,631
Cost of revenue:
Products
179,536
174,460
553,753
500,146
Maintenance and service
96,630
74,978
275,348
211,833
Amortization of acquired intangible assets
14,510
10,994
41,165
32,683
Total cost of revenue
290,676
260,432
870,266
744,662
Gross margin
1,235,073
1,093,958
3,621,184
3,105,969
Operating expenses:
Research and development
508,872
484,470
1,527,542
1,384,120
Sales and marketing
211,491
185,769
640,117
537,981
General and administrative
150,437
99,750
396,464
274,406
Amortization of acquired intangible assets
4,062
2,014
12,152
5,949
Restructuring charges
—
21,879
—
54,439
Total operating expenses
874,862
793,882
2,576,275
2,256,895
Operating income
360,211
300,076
1,044,909
849,074
Interest and other income (expense), net
31,784
25,484
146,070
52,631
Income before income taxes
391,995
325,560
1,190,979
901,705
Provision (benefit) for income taxes
(30,712)
(6,951)
37,634
29,779
Net income from continuing operations
422,707
332,511
1,153,345
871,926
Income (loss) from discontinued operations, net of income taxes
(17,813)
544
(13,155)
(296)
Net income
404,894
333,055
1,140,190
871,630
Less: Net income (loss) attributed to non-controlling interest and
redeemable non-controlling interest
(3,161)
(3,197)
(9,084)
(9,068)
Net income attributed to Synopsys
$ 408,055
$ 336,252
$ 1,149,274
$ 880,698
Net income (loss) attributed to Synopsys
Continuing operations
$ 425,868
$ 335,708
$ 1,162,429
$ 880,994
Discontinued operations
(17,813)
544
(13,155)
(296)
Net income
$ 408,055
$ 336,252
$ 1,149,274
$ 880,698
Net income (loss) per share attributed to Synopsys – basic:
Continuing operations
$ 2.78
$ 2.21
$ 7.60
$ 5.79
Discontinued operations
(0.12)
—
(0.08)
—
Basic net income per share
$ 2.66
$ 2.21
$ 7.52
$ 5.79
Net income (loss) per share attributed to Synopsys – diluted:
Continuing operations
$ 2.73
$ 2.17
$ 7.46
$ 5.68
Discontinued operations
(0.12)
—
(0.09)
—
Diluted net income per share
$ 2.61
$ 2.17
$ 7.37
$ 5.68
Shares used in computing per share amounts:
Basic
153,417
152,023
152,885
152,204
Diluted
156,131
154,947
155,863
155,119
(1) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively. For presentation purposes, we refer to the
closest calendar month end. The first quarter of fiscal year 2024 included one extra week.
SYNOPSYS, INC.
Unaudited Condensed Consolidated Balance Sheets (1)
(in thousands, except par value amounts)
July 31, 2024
October 31, 2023
ASSETS:
Current assets:
Cash and cash equivalents
$ 1,839,815
$ 1,433,966
Short-term investments
154,431
151,639
Total cash, cash equivalents and short-term investments
1,994,246
1,585,605
Accounts receivable, net
805,198
856,660
Inventories
386,009
325,590
Prepaid and other current assets
914,598
548,115
Current assets held for sale
1,027,702
114,654
Total current assets
5,127,753
3,430,624
Property and equipment, net
571,408
549,837
Operating lease right-of-use assets, net
556,593
559,923
Goodwill
3,444,349
3,346,065
Intangible assets, net
266,092
239,577
Deferred income taxes
1,102,716
853,526
Other long-term assets
579,773
444,820
Long-term assets held for sale
—
908,759
Total assets
$ 11,648,684
$ 10,333,131
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND
STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable and accrued liabilities
$ 756,983
$ 1,059,914
Operating lease liabilities
89,869
79,832
Deferred revenue
1,356,804
1,559,461
Current liabilities held for sale
331,294
286,244
Total current liabilities
2,534,950
2,985,451
Long-term operating lease liabilities
568,407
579,686
Long-term deferred revenue
319,080
150,827
Long-term debt
15,599
18,078
Other long-term liabilities
465,233
381,531
Long-term liabilities held for sale
—
33,257
Total liabilities
3,903,269
4,148,830
Redeemable non-controlling interest
31,043
31,043
Stockholders’ equity:
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding
—
—
Common stock, $0.01 par value: 400,000 shares authorized; 153,613 and
152,053 shares outstanding, respectively
1,536
1,521
Capital in excess of par value
1,192,363
1,276,152
Retained earnings
7,884,044
6,741,699
Treasury stock, at cost: 3,648 and 5,207 shares, respectively
(1,188,435)
(1,675,650)
Accumulated other comprehensive income (loss)
(180,112)
(196,414)
Total Synopsys stockholders’ equity
7,709,396
6,147,308
Non-controlling interest
4,976
5,950
Total stockholders’ equity
7,714,372
6,153,258
Total liabilities, redeemable non-controlling interest and stockholders’ equity
$ 11,648,684
$ 10,333,131
(1) Synopsys’ third quarter of fiscal year 2024 ended on August 3, 2024 and its fiscal year 2023 ended on October 28, 2023,
respectively. For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024
included one extra week.
SYNOPSYS, INC.
Unaudited Condensed Consolidated Statements of Cash Flows (1)
(in thousands)
Nine Months Ended July 31,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$ 1,140,190
$ 871,630
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation
180,149
180,033
Reduction of operating lease right-of-use assets
72,196
72,647
Amortization of capitalized costs to obtain revenue contracts
57,071
61,677
Stock-based compensation
540,026
421,949
Allowance for credit losses
14,696
11,937
Gain on sale of strategic investments
(55,077)
—
Amortization of bridge financing costs
18,435
—
Deferred income taxes
(276,840)
(166,061)
Other non-cash
(3,730)
8,649
Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities:
Accounts receivable
59,159
112,511
Inventories
(71,303)
(77,919)
Prepaid and other current assets
(350,652)
8,373
Other long-term assets
(137,159)
(116,487)
Accounts payable and accrued liabilities
17,532
48,574
Operating lease liabilities
(72,254)
(52,914)
Income taxes
(241,952)
123,924
Deferred revenue
(46,276)
(131,310)
Net cash provided by operating activities
844,211
1,377,213
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and sales of short-term investments
98,465
104,139
Purchases of short-term investments
(97,181)
(102,457)
Proceeds from sales of strategic investments
55,696
7,248
Purchases of strategic investments
(1,240)
(435)
Purchases of property and equipment
(118,772)
(136,520)
Acquisitions, net of cash acquired
(156,947)
(51,324)
Capitalization of software development costs
—
(2,204)
Net cash used in investing activities
(219,979)
(181,553)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt
(2,607)
(2,603)
Payment of bridge financing and term loan costs
(72,265)
—
Issuances of common stock
143,148
164,841
Payments for taxes related to net share settlement of equity awards
(278,571)
(198,969)
Purchase of equity forward contract
—
(45,000)
Purchases of treasury stock
—
(860,724)
Other
(1,096)
(122)
Net cash used in financing activities
(211,391)
(942,577)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
5,458
14,997
Net change in cash, cash equivalents and restricted cash
418,299
268,080
Cash, cash equivalents and restricted cash, beginning of year, including cash from discontinued operations
1,441,187
1,419,864
Cash, cash equivalents and restricted cash, end of period, including cash from discontinued operations
1,859,486
1,687,944
Less: Cash, cash equivalents and restricted cash from discontinued operations
17,441
4,835
Cash, cash equivalents and restricted cash from continuing operations
$ 1,842,045
$ 1,683,109
(1) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively. For
presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024 included one
extra week.
Synopsys provides segment information, namely revenue, adjusted segment operating income and adjusted segment operating margin, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 280, Segment Reporting. Synopsys’ chief operating decision maker (“CODM”) is our Chief Executive Officer. In evaluating our business segments, the CODM considers the income and expenses that the CODM believes are directly related to those segments. The CODM does not allocate certain operating expenses managed at a consolidated level to our business segments and, as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table below. These unallocated expenses are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income from continuing operations:
SYNOPSYS, INC.
Business Segment Reporting (1)(2)(5)
(in millions)
Three Months Ended
July 31, 2024
Three Months Ended
July 31, 2023
Nine Months Ended
July 31, 2024
Nine Months Ended
July 31, 2023
Revenue by segment
– Design Automation
$ 1,062.6
$ 1,004.2
$ 3,103.0
$ 2,821.5
% of Total
69.6 %
74.1 %
69.1 %
73.3 %
– Design IP
$ 463.1
$ 350.2
$ 1,388.5
$ 1,029.1
% of Total
30.4 %
25.9 %
30.9 %
26.7 %
Adjusted operating income by segment
– Design Automation
$ 440.9
$ 410.0
$ 1,218.6
$ 1,102.8
– Design IP
$ 169.7
$ 82.8
$ 540.2
$ 277.7
Adjusted operating margin by segment
– Design Automation
41.5 %
40.8 %
39.3 %
39.1 %
– Design IP
36.7 %
23.6 %
38.9 %
27.0 %
Total Adjusted Segment Operating Income Reconciliation (1)(2)(5)
(in millions)
Three Months Ended
July 31, 2024
Three Months Ended
July 31, 2023
Nine Months Ended
July 31, 2024
Nine Months Ended
July 31, 2023
GAAP total operating income – as reported
$ 360.2
$ 300.1
$ 1,044.9
$ 849.1
Other expenses managed at consolidated level
-Amortization of acquired intangible assets (3)
18.6
13.0
53.3
38.6
-Stock-based compensation (3)
164.4
131.5
492.6
384.5
-Non-qualified deferred compensation plan
25.8
21.5
76.3
44.1
-Acquisition/divestiture related items (4)
41.7
4.8
91.8
9.8
-Restructuring charges
—
21.9
—
54.4
Total adjusted segment operating income
$ 610.6
$ 492.8
$ 1,758.8
$ 1,380.5
(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of
our business. Amounts may not foot due to rounding.
(2) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively. For presentation purposes, we refer to
the closest calendar month end. The first quarter of fiscal year 2024 included one extra week.
(3) The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest.
(4) The adjustment excludes the amortization of bridge financing costs entered into in connection with the pending acquisition of Ansys, that was
recorded in interest and other income (expense), net in our unaudited condensed consolidated statements of income.
(5) Presented on a continuing operations basis.
GAAP to Non-GAAP Reconciliation
Synopsys continues to provide all information required in accordance with GAAP but acknowledges evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys’ operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal budgeting and resource allocation purposes. This press release includes non-GAAP earnings per diluted share, non-GAAP net income and non-GAAP tax rate for the periods presented. It also includes future estimated ranges for non-GAAP expenses, non-GAAP interest and other income (expense), non-GAAP tax rate, non-GAAP earnings per diluted share and free cash flow. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Synopsys is unable to provide a full reconciliation of certain fourth quarter and full fiscal year 2024 non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because Synopsys believes that it would not be possible for it to have the required information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, restructuring charges, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information.
Synopsys’ management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, as superior to, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures. Synopsys’ management believes presentation of non-GAAP financial measures, when shown in conjunction with the corresponding GAAP financial measures, provides useful information to investors allowing them to view financial and business trends relating to our financial condition and results of operations through the eyes of management. Synopsys’ management evaluates and makes decisions about our business operations using both GAAP financial measures and non-GAAP financial measures to help facilitate internal comparisons to Synopsys’ historical operating results and forecasted targets, planning and forecasting in subsequent periods and comparisons to competitors’ operating results.
The following are descriptions of the adjustments made to reconcile non-GAAP financial measures (other than free cash flow, which is defined in the footnote to the Financial Targets table above) to the most directly comparable GAAP financial measures:
(i) Amortization of acquired intangible assets. We incur expenses from amortization of acquired intangible assets, which include, among other things, core/developed technology, customer relationships, contract rights, trademarks and trade names, and other intangibles related to acquisitions. We amortize the intangible assets over their estimated useful lives. We do not enter into acquisitions on a predictable cycle. The amount of an acquisition’s purchase price allocated to intangible assets and their estimated useful lives can vary significantly and are unique to each acquisition. We believe that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets provides investors and others with a consistent basis for comparison across accounting periods. We also exclude this item because such expenses are non-cash in nature and we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our core operational performance and liquidity, and ability to invest in research and development and fund future acquisitions and capital expenditures.
(ii) Stock-based compensation. Stock-based compensation expenses consist primarily of expenses related to restricted stock units, stock options, employee stock purchase rights and other stock awards, including such expenses associated with acquisitions. We exclude stock-based compensation expense from our non-GAAP financial measures primarily because it is not an expense that typically requires or will require cash settlement by us. Further, the expense for the fair value of the stock-based instruments we utilize may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards and, therefore, is not used by management to assess the core profitability of our business operations.
(iii) Acquisition/divestiture related items. In connection with certain of our business combinations and/or divestitures, we incur significant expenses that we would not have otherwise incurred as part of our business operations. These expenses include, among other things, compensation expenses, professional fees and other direct expenses, concurrent restructuring activities and divestiture activities, including employee severance and other exit costs, bridge financing costs, costs related to integration activities, changes to the fair value of contingent consideration related to the acquired company, and amortization of the fair value difference of below-market value assets arising from arrangements entered into or acquired in conjunction with an acquisition. We also recognize the gains and losses from the mark-up of equity or cost method investments to fair value upon obtaining control through acquisition. We exclude these items because they are related to acquisitions and have no direct correlation to the core operation of our business. Further, because we do not acquire businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, we believe it is useful to exclude such expenses when looking for a consistent basis for comparison across accounting periods.
(iv) Restructuring charges. We initiate restructuring activities to align our costs to our operating plans and business strategies based on then-current economic conditions, and such activities have a specific and defined term. Restructuring costs generally include severance and other termination benefits related to voluntary retirement programs, involuntary headcount reductions and facilities closures. Such restructuring costs include elimination of operational redundancy, permanent reductions in workforce and facilities closures and, therefore, are not considered by us to be a part of the core operation of our business and are not used by management when assessing the core profitability and performance of our business operations.
(v) Gains (losses) on the sale of strategic investments. We exclude gains and losses on the sale of equity investments in privately held companies because we do not believe they are reflective of our core business and operating results.
(vi) Deferred compensation. We exclude changes in the fair value of our non-qualified deferred compensation plan because we do not use these to assess the core profitability of our business operations.
(vii) Income tax effect of non-GAAP pre-tax adjustments. Excluding the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effect on net income. We utilize an annual non-GAAP tax rate in calculating non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of certain non-recurring and other period-specific items, which can vary in size and frequency and do not necessarily reflect our normal operations, and to more closely align our tax rate with our expected geographic earnings mix. This annual non-GAAP tax rate is based on an evaluation of our historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments, U.S. tax law changes, as well as other factors such as our current tax structure, existing tax positions and expected recurring tax incentives. Based on these considerations, we have elected to adopt a non-GAAP tax rate of 15% for fiscal year 2024.
INVESTOR CONTACT:
Trey Campbell
Synopsys, Inc.
650-584-4289
Synopsys-ir@synopsys.com
EDITORIAL CONTACT:
Cara Walker
Synopsys, Inc.
650-584-5000
corp-pr@synopsys.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/synopsys-posts-financial-results-for-third-quarter-fiscal-year-2024-302227772.html
SOURCE Synopsys, Inc.
You may like
Technology
AI Wellness Launches SoCal Fire Relief Initiative to Support Families and First Responders in Southern California
Published
2 hours agoon
January 12, 2025By
LOS ANGELES, Jan. 11, 2025 /PRNewswire/ — Demonstrating a commitment to both innovation and compassion, AI Wellness has officially launched the SoCal Fire Relief Initiative to provide aid to families and first responders affected by the devastating fires in Southern California. Unveiled during CES 2025, this initiative aims to deliver critical resources and long-term recovery solutions to the communities hardest hit by this tragedy.
“Southern California is more than just where we operate—it’s our home,” said Dr. Gideon Kwok, Co-Founder of AI Wellness. “The fires have left countless families without homes, belongings, and hope. This initiative is our way of giving back and rebuilding the lives of our neighbors and the first responders who have worked tirelessly to protect them.”
Let’s Take Action Together
The SoCal Fire Relief Initiative brings together individuals, brands, and organizations to address the urgent and long-term needs of affected communities. In partnership with the Mission Community Hospital Foundation and the Santo Niño Health Center, AI Wellness is leading efforts to:
Provide essential supplies such as food, water, clothing, and medical care to displaced families.Deliver hydration and wellness resources to first responders working on the frontlines.Support long-term community recovery through wellness programs and innovative solutions.
“It is during a crisis that the best of humanity comes out,” said Bernard Hiller. “It’s important for those affected to know they are not alone. This is a huge undertaking that we cannot do without you. These are our friends, neighbors, and family. Please help us.”
How You Can Help
The initiative provides several ways to make a difference:
Donate to Relief Efforts:
Contributions directly fund essential resources for families and first responders.Send Water to Evacuation Centers:
Every purchase of AI Wellness Water helps ensure first responders and displaced families stay hydrated, while also funding continued production and donation efforts.Spread Awareness:
Share the SoCal Fire Relief Initiative with your networks to amplify its reach and inspire collective action.Wellness Bundles:
Wellness bundle purchases such as the Powersuit, Smart Ring, and Mindbody Matrix Water, help support relief efforts with proceeds contributing to recovery initiatives.
Real Impact in Action
Since the fires began, AI Wellness and its partners have made a significant impact:
Delivered over 10,000 water packs to evacuation centers and first responders.Distributed 500 wellness bundles to displaced families.Donated proceeds from the first 1,000 AI Wellness Powersuits and 5,000 Smart Rings to relief efforts.Raised $250,000 to support critical aid and recovery.
“This initiative is about more than providing relief,” said Abby Aboitiz Founder of AI Wellness. “It’s about restoring hope and rebuilding our community, together.”
Uniting Brands and Innovators
During CES 2025, AI Wellness called on brands and innovators to collaborate on this critical mission. Companies can contribute by donating resources, partnering on curated wellness bundles, or amplifying awareness for the initiative.
“We’re inspired by the innovation and generosity of the brands we’ve met here at CES,” said Dr. TK Huynh, Medical Innovator at AI Wellness. “Together, we can transform this tragedy into an opportunity to rebuild lives and strengthen our community.”
Join the SoCal Fire Relief Initiative
Support the SoCal Fire Relief Initiative by visiting aiwellness.ai or contacting AI Wellness directly:
Email: info@aiwellness.aiInstagram: @aiwellnesstv
About AI Wellness
AI Wellness is a pioneer in health, wellness, and philanthropy, combining cutting-edge AI technology with innovative solutions to address the most pressing challenges facing communities today. From digital avatars to precision education and curated wellness bundles, AI Wellness empowers individuals and brands to make a meaningful impact.
View original content to download multimedia:https://www.prnewswire.com/news-releases/ai-wellness-launches-socal-fire-relief-initiative-to-support-families-and-first-responders-in-southern-california-302348576.html
SOURCE Assisted Intelligence Wellness, Inc.
Technology
2024-2025 Global Top Brands Award Ceremony Launched
Published
4 hours agoon
January 12, 2025By
LAS VEGAS, Jan. 11, 2025 /PRNewswire/ — The highly anticipated 2024-2025 Global Top Brands Award Ceremony and International Consumer Electronics Industry Leaders’ Summit were held on January 8, 2025 local time, at the Wynn & Encore Hotel in Las Vegas, USA. This ceremony gathered leading manufacturers, traders, and elites in the global consumer electronics industry to celebrate the triumphs of the world’s top consumer electronics brands.
With the theme of “AI Empowerment: Ushering in a New Era of Brand Upgrading”, the Global Top Brands Award Ceremony focuses on how AI is deeply integrating with the consumer electronics industry and continuously driving innovation, vitality, and competitiveness in industrial development. A number of distinguished guests were present at the event, including Stavros Anthony, Lieutenant Governor of Nevada; Kim Tae Heum, Governor of Chungcheongnam-do, South Korea; Adam Goldstein, Vice President of TWICE; Zhu Dongfang, President of Asia Digital Group; Zhang Li, Co-President of Asia Digital Group; and Jan Lorbach, Senior Director of Strategic Insights at GfK. Senior executives from influential companies such as Huawei, TCL, Haier, Changhong, TECNO, ECOVACS, VOLTME, XPENG Motors, and Segway-Ninebot were also in attendance. In addition, key representatives from Samsung joined the ceremony. Nearly one hundred media outlets, including CCTV, Phoenix TV, and Dragon TV, as well as senior journalists, were also present to cover the event.
Ceremony and Summit Open with a Focus on Pioneering Industry Development
The award ceremony was filled with excitement and star power, bringing together representatives of executives from leading global consumer electronics brands and industry experts, who witnessed the unveiling of multiple top awards. These accolades celebrated the outstanding achievements in the consumer electronics sector over the past year, and pointed the way toward industry trends. Furthermore, participants engaged in in-depth exchanges on cutting-edge issues, exploring new trends, opportunities, and challenges facing the industry. The ceremony was not only a moment of honor but also an important platform for driving the high-quality development of the global consumer electronics industry.
Founded by International Data Group in 2006, the Global Top Brands Awards (GTB for short) is a world-class selection event organized by Asia Digital Group and Europe Digital Group, and supported by TWICE and International Data Corporation(IDC for short), an authoritative market research and analysis firm. The GTB has evolved into a platform where the world’s top consumer electronics brands compete to highlight their innovations, aiming to present the charm of global consumer electronics to audiences worldwide, enhancing the popularity of major consumer electronics enterprises in the international market, and further promoting the development of the global consumer electronics industry. This GTB brought together top consumer electronics brands from around the world to show their latest products and cutting-edge technologies. It serves as a forward-thinking platform for exchanging ideas, offering industry professionals an in-depth look at the most innovative products and emerging trends shaping the future of the global consumer electronics landscape.
The event began with an address by Lieutenant Governor Stavros Anthony of Nevada. He highlighted that Nevada, often referred to as the “Silver State”, has long been a fertile land for the fusion of innovative technologies and industries, thanks to its open and inclusive spirit, leading technological atmosphere, and unparalleled business environment. He emphasized that the award ceremony recognizes Nevada’s strength in scientific and technological innovation, and serves as a powerful boost to their ongoing efforts to advance industry upgrades and promote international cooperation. Furthermore, he expressed strong optimism about the future of AI in the consumer electronics sector and reaffirmed that Nevada would continue to embrace an open and collaborative approach, offering top-tier services and support to all companies and brands participating in the GTB selection.
As one of the hosts, Asia Digital Group’s President Zhu Dongfang welcomed the guests attending the ceremony. He noted that, despite the complexities of the global economic environment, emerging technologies like AI are driving the steady development of the global consumer electronics industry, with the market expected to experience a new phase of robust growth. As a key player, China is transitioning from a “major manufacturer” to an “innovation powerhouse”. In 2024, the market turnover is projected to surpass 2.2 trillion yuan, with an accelerated shift toward smart, high-end, and environmentally friendly products. The international influence of Chinese consumer electronics brands has grown significantly, penetrating the mid-to-high-end markets. Against this backdrop, this GTB honors the exceptional achievements of the global consumer electronics industry and looks ahead to emerging trends, bringing together industry leaders to explore new opportunities for growth.
Adam Goldstein, Vice President of TWICE, also highlighted in his address that, as the leading consumer electronics publication in the U.S., TWICE has long been dedicated to providing valuable insights and guidance to consumer electronics suppliers and channel partners. It has established a robust information bridge between Chinese product suppliers and international buyers and retailers. He emphasized that the annual GTB selection holds tremendous significance, as it not only reflects the industry’s achievements over the past year but also offers a glimpse into the future direction of the industry. This year, especially, the rapid advancement of AI has undoubtedly injected fresh vitality into the sector, positioning itself as a pivotal force in reshaping industry development. The theme of this year’s GTB is “AI Empowerment: Ushering in a New Era of Brand Upgrading”, which perfectly encapsulates the current trends in the consumer electronics industry. It provides the industry with valuable insights into emerging opportunities to drive continuous innovation and sound development throughout the industry.
Governor Kim Tae Heum of Chungcheongnam-do, South Korea, noted that Chungcheongnam-do, one of South Korea’s major economic engines, is home to a population of 2.2 million and over 300,000 businesses, spanning industries from semiconductor manufacturing to agriculture. The government is vigorously promoting scientific and technological innovation and plans to invest nearly 8 billion US dollars in factory and facility development by 2026 to attract more domestic and international investment, particularly in high-tech sectors. He also shared that Chungcheongnam-do has signed memorandums of understanding with many companies to deepen cooperation in key areas such as semiconductor production to transform the region into a global sci-tech and industrial hub, positioning it as South Korea’s “Silicon Valley”.
The Industry’s Prestigious Awards Unveiled, Brand Excellence Recognized with Top Honors
During the event, highly recognized awards were presented, including the “CE Brands from China Top 10″ and the “Global CE Brands Top 50”, as well as a range of specialized accolades across various categories, such as the “Global TV Brands Top 10” and the “Global Smart Phone Brands Top 10”. These awards recognize the winners for their achievements in technological innovation and market expansion and affirm their leading positions within the global consumer electronics industry.
CE Brands from China Top 10
The list brings together the leading players in today’s rapidly evolving scientific and technological landscape, including TCL, Huawei, Haier, Midea, Lenovo, Xiaomi, Gree, and others. These companies are at the forefront of adopting cutting-edge technologies like AI and 5G, driving the smart and connected evolution of their products. With exceptional technical expertise, frontier innovative designs, and a deep understanding of consumer needs, they have built strong market competitiveness across a wide range of consumer electronics, including smartphones, wearables, headphones, laptops, and small home appliances. Not only do they hold a significant share in the domestic market, but they are also gaining recognition on the global stage, earning widespread acclaim from consumers worldwide, and playing a key role in the ongoing evolution of the industry.
TCL
TCL is a globally competitive intelligent technology industry group driven by the mission of “Leading Technology, Harmonious Coexistence”. It is committed to delivering forward-looking scientific and technological experience and promoting smart and healthy living. TCL has once again been recognized as one of the Global Top 50 CE Brands, reaffirming its exceptional strength as a top global consumer electronics brand. As an outstanding representative of Chinese brands, TCL also continues to hold a spot among the list of CE Brands from China Top 10. Its flagship product, the TCL Premium QD-Mini LED TV X11K, was awarded the Mini LED Display Technology Innovation Award, the TCL FreshIN Series Air Conditioner won the Smart Fresh Air Technology Innovation Award, and the TCL Super Drum Series Front Load Washing Machine received the Clean Technology Innovation Gold Award.
Founded in 1981, TCL operates 46 R&D centers and 38 manufacturing bases across the globe. With a presence in over 160 countries and regions, it serves more than 1.3 billion users worldwide. Over the course of more than 40 years of transformation, innovation, and strategic upgrades, TCL has restructured its business into two main entities, TCL Industries and TCL Technology. It is now focused on three core industries, smart terminals, semiconductor displays, and new energy photovoltaics. Its smart display terminals, LCD displays, and photovoltaic monocrystals and silicon wafers have all achieved global leadership in their respective fields.
TCL invested more than 60 billion yuan in R&D from 2018 to 2023. As of 2024, it has filed a total of 112,469 patents, including 18,567 PCT patents, placing it among the top companies in Chinese mainland. In the field of electroluminescent quantum dot displays, TCL holds 2,913 patents, ranking second globally.
Global CE Brands Top 50
Recognized as leaders in consumer electronics, Apple, Samsung, Microsoft, Qualcomm, Sony, Huawei, TCL, Lenovo, Changhong, and others on the list are showing the significant role of scientific and technological innovation in driving industry growth. These companies are staying ahead of the wave, continuously innovating to meet the increasingly diverse demands of consumers. Among them, Chinese companies have excelled in areas such as smart wearables. With the widespread adoption of emerging technologies like AI and 5G, these companies are actively exploring new applications to enhance product competitiveness. The global consumer electronics industry is poised for even greater growth and opportunity.
Global Smart Phone Brands Top 10
At the forefront of smartphone brands are Samsung, Apple, Xiaomi, Vivo, OPPO, Huawei, Honor, TECNO, Motorola, and realme on the list. Notably, Chinese brands occupy a prominent position and have gained global recognition through their sharp market insights and continuous innovation. Meanwhile, internationally renowned brands continue to perform strongly, strengthening their leadership through new product launches and channel reforms. This list reflects the current market landscape and hints at future trends, that is, only those brands that relentlessly innovate and meet consumer demands will rise to the top.
TECNO
In this GTB, the innovative tech brand TECNO was recognized as one of the Global Smart Phone Brands Top 10. The brand also won the Product Innovation Awards for two of its groundbreaking flagship products: the PHANTOM V Fold2 5G, the second-generation foldable smartphone featuring the full suite of TECNO’s AI capabilities, and the Pocket Go, the world’s first Windows handheld console paired with AR glasses, heralding a new era of AR gaming.
Global TV Brands Top 10
The list includes the industry’s leading brands, including TCL, Changhong, Samsung, Xiaomi, LG, Sony, Haier, and more. These brands are leading trends such as large-screen, ultra-high-definition, and smart TVs. They push the boundaries of picture quality and technology, and prioritize exceptional design and user experience. With superior product quality and relentless innovation, these brands have secured a prominent position in global market, offering consumers immersive viewing experience and new smart home possibilities. This shows the future direction of the television industry.
Global Intelligent Vehicles Brands Top 10
The automotive industry’s innovators, including Tesla, BYD, Volkswagen, Mercedes-Benz, Hengxing, BMW, Toyota, Geely, NIO, and XPENG Motors, are driving the transformation of smart mobility. With a focus on breakthrough technologies like autonomous driving and intelligent cockpits, these brands offer consumers greater convenience, comfort, and safety and are shaping the future of the industry through strategic partnerships to drive industrial upgrading. Their expertise and innovation make them key influencers in the global smart automotive market.
Global Smart Home Brands Top 10
Top industry brands gather in the list, including Amazon, Apple, Samsung, Haier, TOMEFON, CHiQ, Midea, Huawei, Mi Home, and ECOVACS. These companies are industry leaders, renowned for their robust R&D capabilities, exceptional product performance, and precise market positioning. Chinese brands have made a notable impact, with several ranking among the top. They have made significant contributions in areas such as safety, convenience, and smart technology, while consistently driving innovation and technological progress. These brands are widely recognized in the global market and provide consumers with diverse and personalized smart home solutions, shaping the industry’s future towards greater possibilities.
ECOVACS ROBOTICS
As a leader in the global service robotics industry, ECOVACS ROBOTICS has been recognized as one of the Global Smart Home Brands Top 10 for 2024-2025. Its robotic lawn mower, GOAT A2500 RTK, received the Robotic Lawn Mower Technology Innovation Award for its exceptional performance and innovative technology. Designed for diverse backyards with various sizes and layouts, the robot is equipped with a 32V energetic platform and two staggered blade-discs, delivering efficient and precise lawn care. Featuring LELS™ positioning technology, the robot enhances its accuracy in positioning and intelligent navigation, autonomously creating high-precision 3D maps. This allows for centimeter-level precision in both navigation and positioning, even in complex layouts or at night. Additionally, the GOAT A2500 RTK is equipped with a LiDAR-enhanced localization system, enabling it to precisely avoid obstacles and ensure smooth operation.
CHiQ
CHiQ’s smart home products provide users with a more convenient, efficient, intelligent, and personalized experience. The brand has earned a place in the Global Smart Home Brands Top 10 for 2024-2025. Since its founding in 2014, CHiQ has consistently innovated in response to consumer needs, earning widespread international recognition. It offers a broad range of products, including smart home appliances such as televisions, refrigerators, air conditioners, and washing machines. Its global footprint continues to expand, covering over 40 countries, including the EU, ASEAN, Australia, Latin America, the Middle East, Africa, and South Korea. It has formed partnerships with numerous international companies, secured key offline distribution channels, and established a presence on more than 30 major e-commerce platforms, including Amazon, Lazada, and Shopee.
International Innovation Award
International innovative brands are showcasing exceptional competitiveness in today’s consumer electronics and technology industry. Brands like YEEDI, Ampace, and TECNO are at the forefront across various sectors, including smartphones, home appliances, and IT office solutions, thanks to their strong R&D capabilities and deep market insights. These brands are driving the robust growth of the industry and meeting the diverse needs of consumers through technological innovation and high-quality services, positioning themselves as industry benchmarks. They will continue to embrace innovation, leading the consumer electronics sector towards a brighter and more promising future.
YEEDI
Amid the wave of smart technology, YEEDI stands out for its exceptional innovation and deep understanding of consumer needs. The YEEDI S14 Plus was awarded the Indoor Cleaning Technology Innovation Gold Award. As a pioneer in smart cleaning solutions, YEEDI remains at the forefront of science and technology, consistently launching groundbreaking products that deliver a more convenient and efficient cleaning experience for households worldwide. In the year of 2024, YEEDI has launched multiple innovative products, including the M12 PRO+ and C12 COMBO. The highly anticipated YEEDI S14 PLUS, set for release in 2025, has already generated considerable attention. It has earned widespread praise from consumers worldwide, with exclusive innovations such as the OZMO Roller Mopping Technology, TruEdge 2.0 Adaptive Edge Mopping Technology, ZeroTangle 2.0 Technology, and AIVI 3D 3.0 Technology.
Ampace
As a globally recognized leader and trusted choice in the field of new energy innovation, Ampace has earned the trust and praise of users worldwide through its exceptional innovation, strong technical expertise, keen market insights, and relentless commitment to quality. With a market share exceeding 30% in the global residential energy storage sector, it has proven its formidable competitive strength and set a benchmark for innovation, reliability, and outstanding performance, honored with the International Innovation Award. The Ampace Andes 1500 Portable Power Station was awarded the Portable Energy Storage Technology Innovation Award. Ampace places technological innovation at the heart of its mission, continually pushing the boundaries and driving industry progress. The Ampace Andes Portable Power Station showcases this trusted energy technology, offering reliable, stable, safe, and high-capacity power support to outdoor adventurers, professionals, and families alike. Looking to the future, we look forward to Ampace continuing its legacy of innovation and making even greater contributions to the sustainable development of society.
Global Emerging Brands
The global emerging brand VOLTME has quickly made a name for itself in the consumer electronics and technology industry, driven by its innovation and competitiveness. Focused on technological innovation and keenly attuned to consumer needs, it has continuously improved its value for money. With exceptional offerings in areas such as smartphones, smart wearables, IT office solutions, and home appliances, VOLTME has gained significant market recognition. The rise of such dynamic brands is revitalizing the industry, guiding the consumer electronics sector towards greater heights and a promising future.
VOLTME
VOLTME, the flagship brand of Voltnex Innovations and a global leader in power solutions, has been awarded the Global Emerging Brands. Its latest offering, the VOLTME Revo 240 PD3.1 GaN Charger is the perfect solution for fast and safe charging of laptops, tablets, and smartphones. The Hako Series portable power stations combine high-capacity battery performance with intelligent power management, meeting a wide range of power needs. These stations provide reliable portable power support for consumers, underscoring VOLTME’s excellence in innovation, design, and technology.
Representatives of award-winning brands took the stage to deliver their acceptance speeches, and share insights into their success and future growth strategies. They expressed a commitment to further enhancing technological innovation and market expansion so as to deliver even more high-quality products and services to global consumers.
International Consumer Electronics Industry Leaders’ Summit Explores AI’s Role in Shaping Industry’s Future
The International Consumer Electronics Industry Leaders’ Summit was held concurrently. Industry experts and company representatives from around the world gathered to engage in in-depth discussions on the theme of “AI Reshaping Industrial Development”. Key topics included how the consumer electronics industry can integrate with smart technologies, how companies can build core competencies, and ways to strengthen competitive advantages. Participants shared the latest advancements and technological trends, offering valuable guidance for the development of the global consumer electronics sector.
Ines Haaga, Director of Global Strategic Insights at GfK, delivered a keynote speech titled “Navigating Tech and Durables Markets: How Consumer Preferences and Innovation Shape Tomorrow’s Success”. She emphasized that the consumer electronics industry is undergoing a transformation driven by consumers, with the modest growth of the fast-moving consumer goods market and the fragmentation of the tech and durable goods markets highlighting the critical role of consumer preferences. Besides, innovation has emerged as the new engine for market growth, with the integration of AI technologies fueling significant momentum. Looking ahead, the deep convergence of consumer preferences and innovation will shape a broader and more prosperous future for the tech and durable goods sectors.
In the following International Consumer Electronics Industry Leaders’ Summit, Zhang Li, Co-President of Asia Digital Group, moderated a panel discussion on “AI Reshaping Industrial Development”. Together with domestic and international guests, she led an in-depth discussion on the impact of AI on the consumer electronics industry, drawing on insights from their respective fields.
Wang Tan, Co-founder and Vice President of XPENG AEROHT, and General Manager of XPENG Motors’ Design Center, shared XPENG’s innovative applications of AI, particularly the launch of cutting-edge products such as the Land Aircraft Carrier (LAC). These products showcase the vast potential of AI in driving transformation within the automotive industry. He emphasized that AI will play a crucial role in enabling a more intelligent and personalized future for the automotive sector.
Calvin Chen, CTO and President of Segway Navimow at Segway-Ninebot, elaborated on the profound impact of AI on the consumer electronics industry from a technological R&D perspective. He noted that the application of AI elevates the intelligence of products and drives comprehensive upgrades in areas such as R&D, design, and manufacturing, injecting powerful momentum into the innovative development of the industry.
Grant Morgan, Senior Editor at TWICE, shared his analysis of the consumer electronics industry. He pointed out that while consumers’ acceptance of AI has not yet reached full saturation, AI has already demonstrated its powerful enabling potential across various sectors. Guiding consumers to recognize the value and potential of AI through innovative technologies and products will be crucial in driving the industry’s growth.
Jan Lorbach, Senior Director of Strategic Insights at GfK, provided unique perspectives on the consumer electronics industry, focusing on global market trends and consumer research. He noted that, in light of consumers’ shrinking budgets for electronic products and their increasing demand for value, companies need to become more agile in identifying market pain points. By harnessing AI technology, they can fuel product innovation and functional upgrades to meet the diverse needs of consumers. He emphasized that AI will not only profoundly reshape the form and functionality of consumer electronics but also steer the entire industry toward higher quality and greater efficiency.
The summit also provided attendees with a unique opportunity to engage in direct exchange with executives from the world’s leading brands. This allowed participants to gain valuable insights into the success stories and strategic thinking of these top international brands, while promoting mutual learning and resource sharing among companies.
Setting New Trends in Industry Development, Ushering in a New Era for Consumer Electronics
Beyond being a magnificent award ceremony and leaders’ exchange, the 2024-2025 Global Top Brands Award Ceremony and International Consumer Electronics Industry Leaders’ Summit play a vital role in setting new directions for the global consumer electronics industry. It not only highlights the latest achievements and emerging trends but also injects vitality into the industry’s future growth and provides clear direction for its development.
We are delighted to witness an increasing number of consumer electronics brands placing a stronger emphasis on technological innovation and brand development, continually introducing new products to meet the growing demand for personalized experiences. Today, the consumer electronics industry is driving global economic growth and transformation at an unprecedented pace. Brands with innovative vision and exceptional capabilities are poised to emerge as leaders, guiding the industry toward an even more brilliant future. As it celebrates its 20th anniversary in 2026, the GTB, as a flagship event for the consumer electronics sector, will remain a key force in guiding and accelerating the industry’s progress, fostering collaboration and exchange in scientific and technological innovation, and accelerating the transformation of these advancements into tangible productivity.
View original content:https://www.prnewswire.com/news-releases/2024-2025-global-top-brands-award-ceremony-launched-302348572.html
SOURCE Asia Digital Group
Technology
Digital Transformation Market in Oil & Gas to Grow by USD 56.4 Billion from 2025-2029, Driven by Investments, Partnerships, and AI-Powered Market Evolution – Technavio
Published
6 hours agoon
January 11, 2025By
NEW YORK, Jan. 11, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global digital transformation market in oil and gas industry size is estimated to grow by USD 56.4 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 14.5% during the forecast period. Rise in investments and partnerships is driving market growth, with a trend towards use of digital twin technology. However, lack of skilled labor poses a challenge. Key market players include Accenture PLC, Amazon.com Inc., AVEVA Group Plc, Emerson Electric Co., General Electric Co., Halliburton Co., Informatica Inc., Intel Corp., International Business Machines Corp., Microsoft Corp, NVIDIA Corp., Oracle Corp, Rockwell Automation Inc., SAP SE, Siemens AG, Sierra Wireless Inc., Tata Consultancy Services Ltd., Teradata Corp., and TIBCO Software Inc..
Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF
Digital Transformation Market In Oil And Gas Industry Scope
Report Coverage
Details
Base year
2024
Historic period
2019 – 2023
Forecast period
2025-2029
Growth momentum & CAGR
Accelerate at a CAGR of 14.5%
Market growth 2025-2029
USD 56.4 billion
Market structure
Fragmented
YoY growth 2022-2023 (%)
12.7
Regional analysis
APAC, North America, Middle East and Africa, Europe, and South America
Performing market contribution
APAC at 31%
Key countries
US, China, Saudi Arabia, Russia, India, Japan, Canada, UK, Germany, and UAE
Key companies profiled
Accenture PLC, Amazon.com Inc., AVEVA Group Plc, Emerson Electric Co., General Electric Co., Halliburton Co., Informatica Inc., Intel Corp., International Business Machines Corp., Microsoft Corp, NVIDIA Corp., Oracle Corp, Rockwell Automation Inc., SAP SE, Siemens AG, Sierra Wireless Inc., Tata Consultancy Services Ltd., Teradata Corp., and TIBCO Software Inc.
In the Oil and Gas industry, Digital Transformation is a game-changer. Upstream, Midstream, and Downstream sectors are embracing trends like Big Data, Cloud Computing, IoT, AI, and Digital Twins to monitor critical assets and facilities. Big Data helps analyze Exploration prospects using Geoscience platforms. Cloud Computing and AI-based simulation optimize Refining processes, improving manufacturing efficiency and asset utilization. IoT sensors monitor equipment in real-time, enabling Predictive Maintenance and reducing downtime. AI and Computer Vision detect anomalies, preventing Fires and enhancing Safety. Extended Reality solutions train workers, improving Risk management and enhancing Safety. Crude oil demand and Refinery throughput are optimized using AI-based tools. Midstream and Downstream operations, including Gas Stations and Petrochemicals, benefit from Automation solutions and Turnaround planning tools. Application Performance Management ensures smooth Digitalization, while Prescriptive Maintenance minimizes downtime. Sensor systems and AI-driven solutions automate Industrial Control Systems, enhancing Automation and Optimization across Energy industries. Preventive Maintenance and Predictive analytics minimize downtime, ensuring high-performing Refineries and Petrochemical plants.
The oil and gas industry is embracing digital transformation by integrating technologies like the digital twin to optimize energy production. A digital twin is a virtual representation of physical assets, allowing companies to compare actual and ideal conditions for enhanced safety and innovation. This technology provides disparate views of sub-surface and surface systems, enabling more efficient and cost-effective oil and gas production. By adopting digital twin technology, oil and gas companies can improve operational efficiency and foster continuous learning and innovation.
Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!
• In the Oil and Gas Industry, Digital Transformation brings new opportunities for Upstream, Midstream, and Downstream sectors. Challenges like Big Data, Cloud Computing, IoT, AI, and Industrial Control Systems require modern solutions. Extended Reality (XR) solutions help monitor critical assets and facilities, enhancing safety and risk management. Field devices and exploration prospects benefit from Data Science and Geoscience platforms. Downstream operations, including Petrochemicals, Refining, and Gas Stations, can optimize asset utilization and manufacturing efficiency with Automation, AI-based simulation, and Prescriptive Maintenance. Preventive maintenance is crucial for equipment, reducing fires and improving turnaround planning. Computer Vision and Sensor Systems ensure refinery process efficiency and predictive analytics help manage crude oil demand, High Speed Diesel, and Refinery throughput. Digitalization drives innovation, improving safety, risk management, and operational excellence in Energy Industries.
• Oil and gas producers are adopting advanced technologies, such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT) solutions, and big data analytics, to enhance their investment returns. Big data is gaining popularity due to the growing awareness of data-driven solutions. However, converting vast datasets into valuable insights necessitates both technology and analytics expertise. Identifying relevant data for storage and processing is a significant challenge for professionals. Analyzing unstructured data requires additional effort. Real-time big data analytics and cloud-based software solutions offer oil and gas companies innovative opportunities to optimize oil production processes, minimize costs and risks, ensure regulatory compliance, enhance safety, and make informed decisions.
Discover how AI is revolutionizing market trends- Get your access now!
This digital transformation market in oil and gas industry report extensively covers market segmentation by
Technology 1.1 IoT1.2 E and P software1.3 Big data1.4 Cloud computing1.5 OthersSector 2.1 Downstream2.2 Upstream2.3 MidstreamGeography 3.1 APAC3.2 North America3.3 Middle East and Africa3.4 Europe3.5 South America
1.1 IoT- The oil and gas industry faces economic pressure due to disparities in demand and supply, as well as volatile global energy prices. To address these challenges, companies are focusing on enhancing and extending the value of their existing assets while seeking new reserves. The implementation of Internet of Things (IoT) technology is a key strategy for transformation. In the upstream segment, IoT reduces non-productive time by enabling predictive maintenance for crucial equipment. In the midstream segment, IoT monitors pipelines for leaks and emissions, enhancing safety and reducing penalties. In the downstream segment, real-time data analysis enables distributors to predict consumer consumption, optimizing distribution. IoT is projected to increase crude output by 10-12% and profits by USD1 billion for large companies, while contributing USD816 billion to global GDP. By deploying IoT across the value chain, oil and gas organizations can make better decisions, create a safer working environment, and enhance operations.
Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics
The Oil and Gas industry is undergoing a digital transformation, leveraging technologies such as Big Data, Cloud Computing, Internet of Things (IoT), Artificial Intelligence (AI), and Industrial Control Systems to optimize operations and enhance productivity. Upstream, midstream, and downstream sectors are adopting digital twins to monitor critical assets and improve exploration prospects through geoscience platforms. Extended reality solutions enable remote collaboration and training in hazardous environments. Field devices are being connected to collect real-time data for predictive maintenance and preventive measures against fires. Computer Vision is used to monitor equipment performance and automation is being driven by AI-based simulation. Digitalization is revolutionizing energy industries, from gas stations to petrochemicals, by providing real-time insights and improving operational efficiency.
The Oil and Gas Industry is undergoing a digital transformation, leveraging technologies such as Big Data, Cloud Computing, Internet of Things (IoT), Artificial Intelligence (AI), Industrial Control Systems, Extended Reality (XR), and Field Devices to optimize operations and enhance productivity. Upstream, Midstream, and Downstream sectors are embracing digitalization, with a focus on monitoring critical assets, workers, and facilities in real-time. XR solutions provide training for workers, while data science and geoscience platforms help explore new prospects and enhance exploration and production. In the Midstream and Downstream sectors, digitalization leads to improved asset utilization, manufacturing efficiency, and automation. AI-based simulation and predictive analytics optimize refining processes, while sensor systems and prescriptive maintenance minimize risks and ensure safety. Crude oil demand, High Speed Diesel, refinery throughput, and petrochemical and refining industries also benefit from digital transformation, with turnaround planning tools, application performance management, and AI-based solutions streamlining operations.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
TechnologyIoTE And P SoftwareBig DataCloud ComputingOthersSectorDownstreamUpstreamMidstreamGeographyAPACNorth AmericaMiddle East And AfricaEuropeSouth America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-transformation-market-in-oil–gas-to-grow-by-usd-56-4-billion-from-2025-2029–driven-by-investments-partnerships-and-ai-powered-market-evolution—technavio-302347876.html
SOURCE Technavio
NY Attorney General files lawsuit to recoup $2.2M in crypto lost to job scam
AI Wellness Launches SoCal Fire Relief Initiative to Support Families and First Responders in Southern California
Binance altcoin dominance hits 78%, analyst eyes’ strong momentum’ ahead
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout
These ’90s fashion trends are making a comeback in 2017
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Coin Market5 days agoCzech National Bank governor weighs Bitcoin for future reserve strategy
-
Coin Market5 days agoToyota’s AI and Robotics-powered ‘Woven City’ set to open this year
-
Coin Market5 days agoUS CFTC chair to step down, flags urgent need for crypto regulation
-
Coin Market5 days agoTelegram answered 900 US requests for user data in 2024: Report
-
Coin Market5 days agoKULR Technology predicts $200K Bitcoin price after buying $97K dip
-
Coin Market5 days agoBTC price loses 4% on US JOLTS data as Bitcoin trader warns of $92K dip
-
Coin Market5 days agoBackpack Exchange acquires FTX EU, plans Q1 2025 launch
-
Coin Market5 days agoCoinSwitch launches $70M recovery fund for WazirX hack victims