Synopsys (SNPS) Q4 FY2021 earnings: revenue $1.2 billion, up 12.4% on the year

Synopsys Inc. (SNPS) reported revenue of $1.2 billion for Q4 FY2021, the quarter ended 31 October 2021, up 12.4% on the same quarter a year earlier. Net income was $201 million, up 2.0% on the year, and diluted earnings per share $1.27. The figures are the company's own, from the 10-K it filed with the SEC on 13 December 2021.

Revenue

$1.2 billion

+12.4% on the year · +9.0% on the quarter

Q1 FY2020Q4 FY2021

Operating margin

16.5%

19.1% a year earlier

Q1 FY2020Q4 FY2021

Net income

$201 million

+2.0% on the year · +1.4% on the quarter

Q1 FY2020Q4 FY2021

Diluted EPS

$1.27

0.0% on the year · -0.0% on the quarter

Q1 FY2020Q4 FY2021

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q4 FY2021	Q3 FY2021	Q4 FY2020	On the quarter	On the year
Revenue	1,152	1,057	1,025	+9.0%	+12.4%
Cost of revenue	235	n/a	n/a
Gross profit	918	n/a	n/a
Gross margin	79.6%	n/a	n/a
Research and development	414	n/a	n/a
Operating income	190	202	196	-5.8%	-3.0%
Operating margin	16.5%	19.1%	19.1%
Interest expense	1.1	n/a	n/a
Pre-tax income	199	n/a	n/a
Income tax	-2.1	n/a	n/a
Effective tax rate	-1.0%	n/a	n/a
Net income	201	199	197	+1.4%	+2.0%
Net margin	17.5%	n/a	n/a
Diluted EPS	$1.27	$1.27	$1.27	-0.0%	0.0%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q4 FY2021	Q3 FY2021	Q4 FY2020	On the quarter	On the year
Operating cash flow	371	n/a	n/a
Capital expenditure	26.8	n/a	n/a
Free cash flow	344	n/a	n/a
Free cash flow margin	29.8%	n/a	n/a
Cash from investing	-163	n/a	n/a
Cash from financing	-159	n/a	n/a
Depreciation and amortisation	52.4	51.2	50.8	+2.3%	+3.1%
Share-based compensation	96.7	n/a	n/a
Buybacks	215	n/a	n/a
Diluted shares, weighted	157m	157m	156m	+0.3%	+1.0%
Shares outstanding at period end	153m	153m	153m	+0.3%	+0.3%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q4 FY2021	Q3 FY2021	Q4 FY2020	On the quarter	On the year
Shareholders' equity	5,295	5,151	4,907	+2.8%	+7.9%
Non-controlling interest	3.8	n/a	n/a
Redeemable equity	0.0	n/a	n/a
Debt	100	107	128	-6.7%	-21.8%
Operating lease liabilities	487	n/a	n/a
Other liabilities	2,866	n/a	n/a
Total liabilities and equity	8,752	n/a	n/a
Fixed assets	472	n/a	n/a
Goodwill	3,576	n/a	n/a
Intangible assets	279	n/a	n/a
Investments	148	n/a	n/a
Cash and equivalents	1,433	1,385	1,236	+3.4%	+16.0%
Receivables	569	n/a	n/a
Inventory	229	n/a	n/a
Other assets	2,047	n/a	n/a
Total assets	8,752	n/a	n/a

Questions

What was Synopsys' revenue in Q4 FY2021?

Synopsys (SNPS) reported revenue of $1.2 billion for Q4 FY2021, the quarter ended 31 October 2021, up 12.4% on the same quarter a year earlier.

How much did Synopsys earn in Q4 FY2021?

Net income for Q4 FY2021 was $201 million, up 2.0% on the year, and diluted earnings per share $1.27.

When did Synopsys report Q4 FY2021 results?

Synopsys filed its 10-K for the year that ended with the quarter on 13 December 2021; the fourth quarter is the year less the first three.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023 †	Q3 FY2023 †	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024	Q4 FY2024 * †	Q1 FY2025 †	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,152	1,270	1,279	1,248	1,284	1,361	1,263	1,354	1,599	1,511	1,455	1,526	1,636	1,455	1,604	1,740	2,255	2,409	2,276	2,477
Cost of revenue	235	257	253	271	283	284	248	260	332	279	300	291	375	270	318	381	655	637	630	679
Gross profit	918	1,013	1,026	977	1,002	1,077	1,015	1,094	1,267	1,232	1,154	1,235	1,261	1,185	1,286	1,359	1,600	1,771	1,646	1,797
Gross margin	80%	80%	80%	78%	78%	79%	80%	81%	79%	82%	79%	81%	77%	81%	80%	78%	71%	74%	72%	73%
R&D	414	384	390	445	462	465	460	484	488	526	493	509	555	553	554	625	747	715	700	720
Operating income	190	347	364	234	217	256	292	300	431	353	332	360	311	252	376	165	121	203	120	357
Operating margin	17%	27%	28%	19%	17%	19%	23%	22%	27%	23%	23%	24%	19%	17%	23%	9%	5%	8%	5%	14%
Interest expense	1.1	0.5	0.4	0.4	0.4	0.3	0.3	0.3	0.3	1.3	7.1	11.8	15.8	11.1	94.3	147	195	163	133	133
Pre-tax income	199	327	340	236	212	279	297	326	410	457	342	392	323	291	396	189	517	79.1	19.3	684
Tax rate	-1%	4%	14%	7%	29%	4%	8%	-2%	15%	5%	13%	-8%	19%	-2%	12%	-28%	13%	18%	12%	20%
Net income	201	314	295	223	154	272	273	336	349	449	292	408	1,114	296	345	243	449	65.0	17.1	546
Net margin	17%	25%	23%	18%	12%	20%	22%	25%	22%	30%	20%	27%	68%	20%	22%	14%	20%	3%	1%	22%
Diluted EPS	$1.27	$1.99	$1.89	$1.43	$0.99	$1.75	$1.76	$2.17	$2.26	$2.89	$1.88	$2.61	$7.14	$1.89	$2.21	$1.50	$2.39	$0.34	$0.09	$2.84
Operating cash flow	371	156	750	440	394	115	703	560	326	-87.8	477	455	563	-67.5	275	671	640	857	629	813
Capital expenditure	26.8	41.8	25.6	35.6	33.7	43.5	47.9	45.2	53.1	40.4	38.4	40.0	4.4	40.7	55.6	38.6	n/a	35.3	54.2	66.6
Free cash flow	344	114	724	404	360	71.3	655	514	273	-128	438	415	558	-108	220	632	n/a	822	575	746
Buybacks	215	210	290	217	383	261	300	300	300	0.0	0.0	0.0	0.0	n/a	n/a	0.0	n/a	n/a	n/a	37.5
Shares outstanding	153m	153m	153m	153m	152m	152m	152m	152m	152m	153m	153m	154m	154m	155m	155m	185m	186m	191m	191m	192m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-K for the period ended 31 October 2021, filed 13 December 2021: the filing.