Cadence Reports Q2 2023 Financial Results

Estimated reading time: 2 minutes

Cadence Design Systems, Inc. announced results for the second quarter of 2023.

Cadence reported second quarter 2023 revenue of $977 million, compared to revenue of $858 million for the same period in 2022. On a GAAP basis, Cadence achieved operating margin of 31 percent and recognized net income of $221 million, or $0.81 per share on a diluted basis, in the second quarter of 2023, compared to operating margin of 33 percent and net income of $187 million, or $0.68 per share on a diluted basis, for the same period in 2022.

Using the non-GAAP measures defined below, operating margin for the second quarter of 2023 was 42 percent and net income was $334 million, or $1.22 per share on a diluted basis, compared to operating margin of 42 percent and net income of $298 million, or $1.08 per share on a diluted basis, for the same period in 2022.

“Cadence delivered excellent results for the second quarter of 2023, with strong ongoing customer demand for our innovative technologies,” said Anirudh Devgan, president and chief executive officer. “With its unparalleled promise, Generative AI is beginning to make a significant impact globally. Our dedicated focus on AI over the past several years, combined with our computational software expertise and invaluable data that lies at the core of AI, uniquely positions us to deliver to the tremendous potential of this transformative technology.”

“We achieved another quarter of strong financial results and are raising our revenue, operating margin and EPS guidance for 2023 yet again,” said John Wall, senior vice president and chief financial officer. “Our revenue outlook for the second half represents a year-over-year growth of approximately 15%, allowing us to raise our 2023 revenue guidance to more than 14% growth over 2022.”

Business Outlook

For the second half of 2023, the company expects total revenue in the range of $2.052 billion to $2.092 billion. Second half GAAP operating margin is expected to be in the range of 30 percent to 31 percent and GAAP net income per diluted share is expected to be in the range of $1.65 to $1.71. Using the non-GAAP measures defined below, operating margin is expected to be in the range of 41 percent to 42 percent and net income per diluted share is expected to be in the range of $2.54 to $2.60.

For fiscal year 2023, the company expects total revenue in the range of $4.05 billion to $4.09 billion. On a GAAP basis, operating margin for 2023 is expected to be in the range of 30.2 percent to 31.2 percent and GAAP net income per diluted share for 2023 is expected to be in the range of $3.35 to $3.41. Using the non-GAAP measures defined below, operating margin for 2023 is expected to be in the range of 41.2 percent to 42.2 percent and net income per diluted share for 2023 is expected to be in the range of $5.05 to $5.11.