Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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Synopsys Inc., consolidated income statement
US$ in thousands
Based on: 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31).
- Revenue Trends
- Revenue has shown a consistent upward trajectory from 2019 through 2024, increasing from approximately $3.36 billion to over $6.12 billion. This growth is primarily driven by the increase in products revenue, which rose from about $2.82 billion to $5.03 billion over the same period. Maintenance and service revenue also increased steadily, from around $543 million in 2019 to approximately $1.10 billion in 2024.
- Product Breakdown
- Time-based products revenue grew from approximately $2.20 billion in 2019 to a peak just above $3.38 billion in 2023, followed by a slight decline to $3.22 billion in 2024. Upfront products showed strong and continuous growth, more than doubling from $620 million in 2019 to $1.80 billion in 2024, indicating an increasing emphasis or success in this segment.
- Cost of Revenue and Gross Margin
- Cost of revenue increased in line with revenue growth, rising from about $753 million in 2019 to nearly $1.25 billion in 2024. Despite the rising costs, gross margin expanded significantly from around $2.61 billion to $4.88 billion, reflecting improved operational efficiency or a favorable product mix. The gross margin growth indicates strong profitability at the core business level.
- Operating Expenses
- Operating expenses have escalated steadily, increasing from approximately $2.09 billion in 2019 to about $3.53 billion in 2024. Research and development expenses showed significant growth, rising by over 80% from $1.14 billion to $2.08 billion, underscoring a substantial commitment to innovation. Sales and marketing expenses grew moderately but showed a slight reduction in 2024 compared to 2023. General and administrative expenses notably increased, particularly in 2024 where a marked rise occurred to over $568 million, suggesting higher overhead or administrative costs. Amortization of acquired intangible assets has decreased over the period, potentially indicating the amortization of previous acquisitions reaching completion.
- Operating Income and Profitability
- Operating income improved markedly, almost tripling from approximately $520 million in 2019 to about $1.36 billion in 2024. This positive trend reflects strong revenue growth outpacing increased expenses and effective cost management. Overall profitability strengthened considerably over the analyzed period.
- Other Income and Expenses
- Interest income showed growth, notably increasing in recent years, rising to over $67 million in 2024. Interest expense remained relatively low until a notable surge in 2024 to approximately $35 million, which may suggest increased borrowing or changes in financing costs. Gains and losses related to deferred compensation and other non-operating items displayed volatility, but the gain on sale of strategic investments contributed $55 million in 2024, positively impacting total income.
- Net Income and Taxation
- Net income from continuing operations followed an upward trend, increasing from around $532 million in 2019 to over $1.41 billion in 2024. The overall net income more than doubled when including income from discontinued operations in 2024, reaching approximately $2.24 billion. The provision for income taxes was inconsistent, with a benefit in 2020 followed by increasing tax expenses in subsequent years, peaking at around $100 million in 2024, thereby reducing the pre-tax income gains but maintaining a net positive growth in earnings attributable to the company.
- Non-Controlling Interests
- Net losses attributed to non-controlling interests increased over time but remain a relatively small proportion of overall net income, rising from immaterial amounts to about $27.6 million in 2024, indicating slight growth in minority interest costs or losses.
- Summary
- Overall, the financial data reveals robust growth in top-line revenue and expanding gross margins, supported by increased investment in research and development and controlled operating expenses. The substantial increase in upfront product revenue suggests strategic shifts or successful product launches. The company improved operating income and net profits over the six-year span, managing to maintain profitability despite higher costs and tax expenses. The extraordinary gain from discontinued operations and strategic sales in the final year significantly boosted net income. Increased interest expenses in the latest period may warrant monitoring going forward.