Cadence Surpasses Expectations with 13.5% Revenue Growth and Record $6.8 Billion Backlog in Fiscal Year 2024
Cadence, the leading provider of electronic design automation (EDA), artificial intelligence (AI), and semiconductor intellectual property (IP) solutions, has announced exceptional results in its fourth quarter of fiscal year 2024. The company reported a 13.5% revenue growth for the year, with a record backlog of $6.8 billion, solidifying its position as a leader in the AI-driven chip-to-systems market.
Speaking during the conference call, Anirudh Devgan, President and Chief Executive Officer of Cadence, emphasized that the company is well-positioned to capitalize on the growing demand for AI-driven solutions. "The AI super cycle is entering a new phase with generative AI, agentic AI, and physical AI, fueling an explosion in compute demand and semiconductor innovation," Devgan stated.
One of the key highlights of Cadence's performance in 2024 was its deepened collaboration with NVIDIA through commitments across various EDA, hardware, IP, and system software solutions. This partnership has enabled the company to leverage NVIDIA's latest NeMo and NIM microservices to build customized Gen AI applications, delivering enhanced optimization and productivity.
Additionally, Cadence strengthened its collaboration with Qualcomm through a significant expansion of its EDA and system software solutions. The company also expanded its strategic partnership with Marvell through a broad proliferation of its portfolio of products. These partnerships have contributed significantly to Cadence's revenue growth in 2024.
Cadence's AI portfolio continued gaining strong momentum, with market-shaping customers embracing the company's AI-powered products such as Cerebrus, SimAI, and Allegro X AI. The LLM-based design agents powered by JedAI data platform are showing promising results and early engagement. Cerebrus is rapidly becoming essential to the design flow, delivering transformative PPA benefits to customers with over 750 tapeouts to date and over 300 in Q4 alone.
The growing foundry ecosystem is driving increased design activity and creating significant opportunities for Cadence's products. In 2024, the company strengthened its collaboration with existing foundry partners and entered into new strategic engagements. The furthering of partnerships with TSMC, GlobalFoundries, Samsung, and Intel foundry has provided a solid foundation for future growth.
The record backlog of $6.8 billion is a testament to Cadence's compelling AI-driven chip-to-systems portfolio and its growing proliferation among marquee system and semi customers. As the company continues to capitalize on the opportunities presented by the AI super cycle, investors and analysts are optimistic about its prospects for future growth.
