Summary by Moomoo AI
Cadence Design Systems reported Q2 2024 revenue of $1.06 billion, up 9% year-over-year, with net income reaching $229.5 million. Product and maintenance revenue grew 4% to $960.5 million, while services revenue surged 86% to $100.2 million. The company maintained a strong recurring revenue base at 88% of total revenue.The company completed two strategic acquisitions during the quarter - BETA CAE Systems for $1.14 billion and Invecas for $71.5 million, expanding its system analysis capabilities and engineering services portfolio. Operating margin was 28%, down from 31% in Q2 2023, primarily due to acquisition-related costs and increased investments in R&D and sales support.Looking ahead, Cadence expects continued growth driven by increasing design complexity and customer demand for its software and IP offerings. The company maintained a solid financial position with $1.06 billion in cash and cash equivalents, while generating $409.2 million in operating cash flow during the first half of 2024. Management anticipates an effective tax rate of approximately 25.1% for fiscal 2024.
