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Synopsys Posts Financial Results for Third Quarter Fiscal Year 2024

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Results Summary1 

Record quarterly revenue of $1.526 billion, up approximately 13% year over year.Quarterly GAAP earnings per diluted share of $2.73; non-GAAP earnings per diluted share of $3.43, up approximately 27% year over year and exceeding guidance.Expecting record full-year revenue with growth of approximately 15% driven by continued, strong execution and business momentum.

SUNNYVALE, Calif., Aug. 21, 2024 /PRNewswire/ — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its third quarter of fiscal year 2024. Revenue for the third quarter of fiscal year 2024 was $1.526 billion, compared to $1.354 billion for the third quarter of fiscal year 2023.  

“Our strong third quarter results and expectations for a record year continue to demonstrate the resiliency of Synopsys’ business,” said Sassine Ghazi, president and CEO of Synopsys. “The complexity and pace of technology innovation is accelerating as silicon and systems companies race to capitalize on AI in this era of pervasive intelligence. Synopsys is mission-critical to technology innovation and our customer set is expanding as more companies in more industries define and optimize system performance at the silicon level.”

“Synopsys delivered an excellent third quarter, setting a new quarterly revenue record and achieving non-GAAP EPS above our guidance range,” said Shelagh Glaser, CFO of Synopsys. “The strong momentum across the business is a result of our leadership products and relentless execution. For the full year, we expect to achieve revenue growth of approximately 15% and non-GAAP EPS growth of approximately 24% while expanding non-GAAP operating margin by two points.”

____________________________________________

1 Synopsys’ Software Integrity business has been presented as a discontinued operation in the consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis unless otherwise noted.

Continuing Operations 
On May 5, 2024, Synopsys entered into an agreement to sell its Software Integrity business. Unless otherwise noted, Synopsys’ Software Integrity business has been presented as a discontinued operation in the consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.

GAAP Results 
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal year 2024 was $425.9 million, or $2.73 per diluted share, compared to $335.7 million, or $2.17 per diluted share, for the third quarter of fiscal year 2023.

Non-GAAP Results
On a non-GAAP basis, net income for the third quarter of fiscal year 2024 was $535.5 million, or $3.43 per diluted share, compared to non-GAAP net income of $419.0 million, or $2.70 per diluted share, for the third quarter of fiscal year 2023.

For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see “GAAP to Non-GAAP Reconciliation” in the accompanying tables below. 

Business Segments 
Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other and (2) Design IP, which includes our Synopsys IP portfolio.

Financial Targets 
Synopsys also provided its consolidated financial targets for continuing operations for the fourth quarter and full fiscal year 2024. The fiscal year targets include the impact of an extra week in fiscal year 2024, which was included in the first quarter of fiscal year 2024. These financial targets assume no further changes to export control restrictions or the current U.S. government “Entity List” restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see “Forward-Looking Statements” below. 

Fourth Quarter and Full Fiscal Year 2024 Financial Targets (1)(2)

(in millions except per share amounts)

 Range for Three Months Ending

Range for Fiscal Year Ending

October 31, 2024

October 31, 2024

Low

High

Low

High

Revenue

$              1,614

$              1,644

$              6,105

$              6,135

GAAP Expenses

$              1,210

$              1,230

$              4,577

$              4,597

Non-GAAP Expenses

$              1,027

$              1,037

$              3,760

$              3,770

Non-GAAP Interest and Other Income (Expense), net

$                     8

$                   10

$                   41

$                   43

Non-GAAP Tax Rate

15 %

15 %

15 %

15 %

Outstanding Shares (fully diluted)

155

157

155

157

GAAP EPS

$                2.25

$                2.39

$                9.71

$                9.85

Non-GAAP EPS

$                3.27

$                3.32

$              13.07

$              13.12

Operating Cash Flow

~ $1,300

Free Cash Flow(3)

~ $1,100

Capital Expenditures

~ $200

(1) Synopsys’ fourth quarter of fiscal year 2024 and its fiscal year 2024 will end on November 2, 2024. For presentation purposes, we refer to the
closest calendar month end. The first quarter of fiscal year 2024 included one extra week. 

(2) Presented on a continuing operations basis.

(3) Free cash flow is calculated as cash provided from operating activities less capital expenditures and capitalization of software development costs.

For a reconciliation of Synopsys’ fourth quarter and fiscal year 2024 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis and a discussion of the financial targets that we are not able to reconcile without unreasonable efforts, see “GAAP to Non-GAAP Reconciliation” in the accompanying tables below. 

Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys’ corporate website at investor.synopsys.com. Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the fourth quarter and fiscal year 2024 in December 2024. 

Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys’ corporate website at www.synopsys.com (collectively, the “Earnings Materials”), represent Synopsys’ expectations and beliefs as of August 21, 2024. Although these Earnings Materials will remain available on Synopsys’ website through the date of the earnings call for the fourth quarter and fiscal year 2024, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law.

Availability of Final Financial Statements
Synopsys will include final financial statements for the third quarter of fiscal year 2024 in its quarterly report on Form 10-Q to be filed on or before September 12, 2024.

About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq: SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.

Reconciliation of Third Quarter Fiscal Year 2024 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2024 Results(1)

(unaudited and in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

July 31,

July 31,

2024

2023

2024

2023

GAAP net income from continuing operations
attributed to Synopsys

$                425,868

$        335,708

$     1,162,429

$        880,994

Adjustments:

Amortization of acquired intangible assets

17,436

11,951

49,962

35,591

Stock-based compensation

164,029

131,092

491,516

383,444

Acquisition/divestiture related items

53,022

4,840

110,210

9,815

Restructuring charges

21,879

54,439

Gain on sale of strategic investments

(55,077)

Tax settlement

(23,752)

(23,752)

Tax adjustments

(124,903)

(62,685)

(231,164)

(168,717)

Non-GAAP net income from continuing operations
attributed to Synopsys

$               535,452

$       419,033

$    1,527,876

$    1,171,814

Three Months Ended

Nine Months Ended

July 31,

July 31,

2024

2023

2024

2023

GAAP net income from continuing operations per diluted share
attributed to Synopsys

$                      2.73

$              2.17

$              7.46

$              5.68

Adjustments:

Amortization of acquired intangible assets

0.11

0.08

0.32

0.23

Stock-based compensation

1.05

0.85

3.15

2.47

Acquisition/divestiture related items

0.34

0.03

0.71

0.06

Restructuring charges

0.14

0.35

Gain on sale of strategic investments

(0.35)

Tax settlement

(0.15)

(0.15)

Tax adjustments

(0.80)

(0.42)

(1.49)

(1.09)

Non-GAAP net income from continuing operations per diluted share
attributed to Synopsys

$                      3.43

$              2.70

$              9.80

$              7.55

Shares used in computing net income per diluted share amounts:

156,131

154,947

155,863

155,119

(1) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively.
For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024
included one extra week.

 

GAAP to Non-GAAP Tax Rate Reconciliation (1)(2)

(unaudited)

Three Months Ended

Nine Months Ended

July 31, 2024

July 31, 2024

GAAP effective tax rate

(7.8) %

3.2 %

Income tax effect of above non-GAAP adjustments

22.8 %

11.8 %

Non-GAAP effective tax rate

15.0 %

15.0 %

(1) Synopsys’ third quarter of fiscal year 2024 ended on August 3, 2024. For presentation purposes, we refer to
the closest calendar month end. The first quarter of fiscal year 2024 included one extra week.

(2) Presented on a continuing operations basis.

Reconciliation of 2024 Targets
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Fourth Quarter Fiscal Year 2024 Targets (1)(2)

(in thousands, except per share amounts)

 Range for Three Months Ending

October 31, 2024

Low

High

Target GAAP expenses

$         1,210,000

$         1,230,000

Adjustments:

      Amortization of acquired intangible assets

(15,000)

(18,000)

      Stock-based compensation

(168,000)

(175,000)

Target non-GAAP expenses

$         1,027,000

$         1,037,000

Range for Three Months Ending

October 31, 2024

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$                  2.25

$                  2.39

Adjustments:

      Amortization of acquired intangible assets

0.12

0.10

      Stock-based compensation

1.12

1.08

      Acquisition/divestiture related items (3)

0.11

0.08

      Tax adjustments

(0.33)

(0.33)

Target non-GAAP earnings per diluted share attributed to Synopsys

$                  3.27

$                  3.32

Shares used in non-GAAP calculation (midpoint of target range)

156,000

156,000

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2024 Targets (1)(2)

(in thousands, except per share amounts)

Range for Fiscal Year Ending

October 31, 2024

Low

High

Target GAAP expenses

$         4,576,771

$         4,596,771

Adjustments:

      Amortization of acquired intangible assets

(65,000)

(68,000)

      Stock-based compensation

(660,000)

(667,000)

      Acquisition/divestiture related items

(91,771)

(91,771)

Target non-GAAP expenses

$         3,760,000

$         3,770,000

Range for Fiscal Year Ending

October 31, 2024

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$                  9.71

$                  9.85

Adjustments:

      Amortization of acquired intangible assets

0.44

0.42

      Stock-based compensation

4.27

4.23

      Acquisition/divestiture related items (3)

0.82

0.79

      Gain on sale of strategic investments

(0.35)

(0.35)

      Tax adjustments

(1.82)

(1.82)

Target non-GAAP earnings per diluted share attributed to Synopsys

$                13.07

$                13.12

Shares used in non-GAAP calculation (midpoint of target range)

156,000

156,000

(1) Synopsys’ fourth quarter of fiscal year 2024 and its fiscal year 2024 will end on November 2, 2024. For
presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024 included
one extra week.

(2) Presented on a continuing operations basis.

(3) Adjustments reflect actual expenses incurred by Synopsys as of August 3, 2024 as well as certain
contractually obligated financing fees and related amortization expenses, and do not fully reflect all potential
adjustments for future periods for the reasons set forth in “GAAP to Non-GAAP Reconciliation” below.

Forward-Looking Statements
This press release and the investor conference call contain forward-looking statements, including, but not limited to, statements regarding short-term and long-term financial targets, expectations and objectives, including, among others, the anticipated effects of our pending acquisition of ANSYS, Inc. (the Ansys Merger); strategies related to our products, technology and services; business and market outlook, opportunities, strategies and technological trends, such as artificial intelligence; the Ansys Merger, including, among other things, its anticipated benefits; planned dispositions and their expected impact, such as the previously announced divestiture of our Software Integrity business (the Software Integrity Divestiture); the potential impact of the uncertain macroeconomic and geopolitical environment on our financial results; the expected impact of U.S. and foreign government actions and regulatory changes, including export control restrictions on our financial results; customer demand and market expansion; our planned product releases and capabilities; industry growth rates; the expected realization of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); software trends; planned stock repurchases; our expected tax rate; and the impact and result of pending legal, administrative and tax proceedings. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and geopolitical uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations; failure to complete the Ansys Merger on the terms described in our filings with the SEC, if at all; failure to obtain required governmental approvals related to the Ansys Merger or the imposition of conditions to such governmental approvals that may have an adverse effect on us; failure to realize the benefits expected from the Ansys Merger; failure to complete the Software Integrity Divestiture, or the Software Integrity Divestiture disrupting our business or failing to achieve its intended benefits, and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys’ results is included in filings we make with the SEC from time to time, including in the sections entitled “Risk Factors” in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys’ most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. Synopsys’ financial results for its third quarter of fiscal year 2024 are not necessarily indicative of Synopsys’ operating results for any future periods. The information provided herein is as of August 21, 2024. Synopsys undertakes no duty to, and does not intend to, update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.

SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Income (1)

(in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

July 31,

July 31,

2024

2023

2024

2023

Revenue:

  Time-based products

$             803,147

$             827,396

$          2,389,924

$          2,235,531

  Upfront products

442,528

292,653

1,281,283

958,631

    Total products revenue

1,245,675

1,120,049

3,671,207

3,194,162

  Maintenance and service

280,074

234,341

820,243

656,469

      Total revenue

1,525,749

1,354,390

4,491,450

3,850,631

Cost of revenue:

  Products

179,536

174,460

553,753

500,146

  Maintenance and service

96,630

74,978

275,348

211,833

  Amortization of acquired intangible assets

14,510

10,994

41,165

32,683

      Total cost of revenue

290,676

260,432

870,266

744,662

Gross margin

1,235,073

1,093,958

3,621,184

3,105,969

Operating expenses:

  Research and development

508,872

484,470

1,527,542

1,384,120

  Sales and marketing

211,491

185,769

640,117

537,981

  General and administrative

150,437

99,750

396,464

274,406

  Amortization of acquired intangible assets

4,062

2,014

12,152

5,949

  Restructuring charges

21,879

54,439

      Total operating expenses

874,862

793,882

2,576,275

2,256,895

Operating income

360,211

300,076

1,044,909

849,074

Interest and other income (expense), net

31,784

25,484

146,070

52,631

Income before income taxes

391,995

325,560

1,190,979

901,705

Provision (benefit) for income taxes

(30,712)

(6,951)

37,634

29,779

Net income from continuing operations

422,707

332,511

1,153,345

871,926

Income (loss) from discontinued operations, net of income taxes

(17,813)

544

(13,155)

(296)

Net income

404,894

333,055

1,140,190

871,630

Less: Net income (loss) attributed to non-controlling interest and
redeemable non-controlling interest

(3,161)

(3,197)

(9,084)

(9,068)

Net income attributed to Synopsys

$             408,055

$             336,252

$          1,149,274

$             880,698

Net income (loss) attributed to Synopsys

 Continuing operations

$             425,868

$             335,708

$          1,162,429

$             880,994

 Discontinued operations

(17,813)

544

(13,155)

(296)

 Net income

$             408,055

$             336,252

$          1,149,274

$             880,698

Net income (loss) per share attributed to Synopsys – basic:

  Continuing operations

$                   2.78

$                   2.21

$                   7.60

$                   5.79

  Discontinued operations

(0.12)

(0.08)

  Basic net income per share

$                   2.66

$                   2.21

$                   7.52

$                   5.79

Net income (loss) per share attributed to Synopsys – diluted:

  Continuing operations

$                   2.73

$                   2.17

$                   7.46

$                   5.68

  Discontinued operations

(0.12)

(0.09)

  Diluted net income per share

$                   2.61

$                   2.17

$                   7.37

$                   5.68

Shares used in computing per share amounts:

  Basic

153,417

152,023

152,885

152,204

  Diluted

156,131

154,947

155,863

155,119

(1) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively. For presentation purposes, we refer to the
closest calendar month end. The first quarter of fiscal year 2024 included one extra week.

 

SYNOPSYS, INC.

Unaudited Condensed Consolidated Balance Sheets (1)

(in thousands, except par value amounts)

July 31, 2024

October 31, 2023

ASSETS:

Current assets:

  Cash and cash equivalents

$           1,839,815

$           1,433,966

  Short-term investments

154,431

151,639

          Total cash, cash equivalents and short-term investments

1,994,246

1,585,605

  Accounts receivable, net

805,198

856,660

  Inventories

386,009

325,590

  Prepaid and other current assets

914,598

548,115

  Current assets held for sale

1,027,702

114,654

          Total current assets

5,127,753

3,430,624

Property and equipment, net

571,408

549,837

Operating lease right-of-use assets, net

556,593

559,923

Goodwill

3,444,349

3,346,065

Intangible assets, net

266,092

239,577

Deferred income taxes

1,102,716

853,526

Other long-term assets

579,773

444,820

Long-term assets held for sale

908,759

           Total assets

$         11,648,684

$         10,333,131

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND
STOCKHOLDERS’ EQUITY:

Current liabilities:

  Accounts payable and accrued liabilities

$              756,983

$           1,059,914

  Operating lease liabilities

89,869

79,832

  Deferred revenue

1,356,804

1,559,461

  Current liabilities held for sale

331,294

286,244

           Total current liabilities

2,534,950

2,985,451

Long-term operating lease liabilities

568,407

579,686

Long-term deferred revenue

319,080

150,827

Long-term debt

15,599

18,078

Other long-term liabilities

465,233

381,531

Long-term liabilities held for sale

33,257

           Total liabilities

3,903,269

4,148,830

Redeemable non-controlling interest

31,043

31,043

Stockholders’ equity:

  Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding

  Common stock, $0.01 par value: 400,000 shares authorized; 153,613 and
152,053 shares outstanding, respectively

1,536

1,521

  Capital in excess of par value

1,192,363

1,276,152

  Retained earnings

7,884,044

6,741,699

  Treasury stock, at cost: 3,648 and 5,207 shares, respectively

(1,188,435)

(1,675,650)

  Accumulated other comprehensive income (loss)

(180,112)

(196,414)

           Total Synopsys stockholders’ equity

7,709,396

6,147,308

Non-controlling interest

4,976

5,950

           Total stockholders’ equity

7,714,372

6,153,258

           Total liabilities, redeemable non-controlling interest and stockholders’ equity

$         11,648,684

$         10,333,131

(1) Synopsys’ third quarter of fiscal year 2024 ended on August 3, 2024 and its fiscal year 2023 ended on October 28, 2023,
respectively. For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024
included one extra week.

 

SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows (1)

(in thousands)

Nine Months Ended July 31,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$          1,140,190

$            871,630

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization and depreciation

180,149

180,033

Reduction of operating lease right-of-use assets

72,196

72,647

Amortization of capitalized costs to obtain revenue contracts

57,071

61,677

Stock-based compensation

540,026

421,949

Allowance for credit losses

14,696

11,937

Gain on sale of strategic investments

(55,077)

Amortization of bridge financing costs

18,435

Deferred income taxes

(276,840)

(166,061)

Other non-cash

(3,730)

8,649

Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities:

Accounts receivable

59,159

112,511

Inventories

(71,303)

(77,919)

Prepaid and other current assets

(350,652)

8,373

Other long-term assets

(137,159)

(116,487)

Accounts payable and accrued liabilities

17,532

48,574

Operating lease liabilities

(72,254)

(52,914)

Income taxes

(241,952)

123,924

Deferred revenue

(46,276)

(131,310)

Net cash provided by operating activities

844,211

1,377,213

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from maturities and sales of short-term investments

98,465

104,139

Purchases of short-term investments

(97,181)

(102,457)

Proceeds from sales of strategic investments

55,696

7,248

Purchases of strategic investments

(1,240)

(435)

Purchases of property and equipment

(118,772)

(136,520)

Acquisitions, net of cash acquired

(156,947)

(51,324)

Capitalization of software development costs

(2,204)

Net cash used in investing activities

(219,979)

(181,553)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(2,607)

(2,603)

Payment of bridge financing and term loan costs

(72,265)

Issuances of common stock

143,148

164,841

Payments for taxes related to net share settlement of equity awards

(278,571)

(198,969)

Purchase of equity forward contract

(45,000)

Purchases of treasury stock

(860,724)

Other

(1,096)

(122)

Net cash used in financing activities

(211,391)

(942,577)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

5,458

14,997

Net change in cash, cash equivalents and restricted cash

418,299

268,080

Cash, cash equivalents and restricted cash, beginning of year, including cash from discontinued operations

1,441,187

1,419,864

Cash, cash equivalents and restricted cash, end of period, including cash from discontinued operations

1,859,486

1,687,944

Less: Cash, cash equivalents and restricted cash from discontinued operations

17,441

4,835

Cash, cash equivalents and restricted cash from continuing operations

$          1,842,045

$          1,683,109

(1) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively. For
presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024 included one
extra week.

Synopsys provides segment information, namely revenue, adjusted segment operating income and adjusted segment operating margin, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 280, Segment Reporting. Synopsys’ chief operating decision maker (“CODM”) is our Chief Executive Officer. In evaluating our business segments, the CODM considers the income and expenses that the CODM believes are directly related to those segments. The CODM does not allocate certain operating expenses managed at a consolidated level to our business segments and, as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table below. These unallocated expenses are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income from continuing operations:

SYNOPSYS, INC.

Business Segment Reporting (1)(2)(5)

(in millions)

Three Months Ended
July 31, 2024

Three Months Ended
July 31, 2023

Nine Months Ended
July 31, 2024

Nine Months Ended
July 31, 2023

Revenue by segment

– Design Automation

$                        1,062.6

$                        1,004.2

$                        3,103.0

$                        2,821.5

% of Total

69.6 %

74.1 %

69.1 %

73.3 %

– Design IP

$                           463.1

$                           350.2

$                        1,388.5

$                        1,029.1

% of Total

30.4 %

25.9 %

30.9 %

26.7 %

Adjusted operating income by segment

– Design Automation

$                           440.9

$                           410.0

$                        1,218.6

$                        1,102.8

– Design IP

$                           169.7

$                             82.8

$                           540.2

$                           277.7

Adjusted operating margin by segment

– Design Automation

41.5 %

40.8 %

39.3 %

39.1 %

– Design IP

36.7 %

23.6 %

38.9 %

27.0 %

 

Total Adjusted Segment Operating Income Reconciliation (1)(2)(5)

(in millions)

Three Months Ended
July 31, 2024

Three Months Ended
July 31, 2023

Nine Months Ended
July 31, 2024

Nine Months Ended
July 31, 2023

GAAP total operating income – as reported

$                           360.2

$                           300.1

$                        1,044.9

$                           849.1

Other expenses managed at consolidated level

-Amortization of acquired intangible assets (3)

18.6

13.0

53.3

38.6

-Stock-based compensation (3)

164.4

131.5

492.6

384.5

-Non-qualified deferred compensation plan

25.8

21.5

76.3

44.1

-Acquisition/divestiture related items (4)

41.7

4.8

91.8

9.8

-Restructuring charges

21.9

54.4

Total adjusted segment operating income

$                           610.6

$                           492.8

$                        1,758.8

$                        1,380.5

(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of
our business. Amounts may not foot due to rounding.

(2) Synopsys’ third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively. For presentation purposes, we refer to
the closest calendar month end. The first quarter of fiscal year 2024 included one extra week.

(3) The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest.

(4) The adjustment excludes the amortization of bridge financing costs entered into in connection with the pending acquisition of Ansys, that was
recorded in interest and other income (expense), net in our unaudited condensed consolidated statements of income.

(5) Presented on a continuing operations basis.

GAAP to Non-GAAP Reconciliation
Synopsys continues to provide all information required in accordance with GAAP but acknowledges evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys’ operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal budgeting and resource allocation purposes. This press release includes non-GAAP earnings per diluted share, non-GAAP net income and non-GAAP tax rate for the periods presented. It also includes future estimated ranges for non-GAAP expenses, non-GAAP interest and other income (expense), non-GAAP tax rate, non-GAAP earnings per diluted share and free cash flow. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Synopsys is unable to provide a full reconciliation of certain fourth quarter and full fiscal year 2024 non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because Synopsys believes that it would not be possible for it to have the required information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, restructuring charges, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information. 

Synopsys’ management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, as superior to, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures. Synopsys’ management believes presentation of non-GAAP financial measures, when shown in conjunction with the corresponding GAAP financial measures, provides useful information to investors allowing them to view financial and business trends relating to our financial condition and results of operations through the eyes of management. Synopsys’ management evaluates and makes decisions about our business operations using both GAAP financial measures and non-GAAP financial measures to help facilitate internal comparisons to Synopsys’ historical operating results and forecasted targets, planning and forecasting in subsequent periods and comparisons to competitors’ operating results.

The following are descriptions of the adjustments made to reconcile non-GAAP financial measures (other than free cash flow, which is defined in the footnote to the Financial Targets table above) to the most directly comparable GAAP financial measures:

(i) Amortization of acquired intangible assets. We incur expenses from amortization of acquired intangible assets, which include, among other things, core/developed technology, customer relationships, contract rights, trademarks and trade names, and other intangibles related to acquisitions. We amortize the intangible assets over their estimated useful lives. We do not enter into acquisitions on a predictable cycle. The amount of an acquisition’s purchase price allocated to intangible assets and their estimated useful lives can vary significantly and are unique to each acquisition. We believe that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets provides investors and others with a consistent basis for comparison across accounting periods. We also exclude this item because such expenses are non-cash in nature and we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our core operational performance and liquidity, and ability to invest in research and development and fund future acquisitions and capital expenditures.

(ii) Stock-based compensation. Stock-based compensation expenses consist primarily of expenses related to restricted stock units, stock options, employee stock purchase rights and other stock awards, including such expenses associated with acquisitions. We exclude stock-based compensation expense from our non-GAAP financial measures primarily because it is not an expense that typically requires or will require cash settlement by us. Further, the expense for the fair value of the stock-based instruments we utilize may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards and, therefore, is not used by management to assess the core profitability of our business operations.

(iii) Acquisition/divestiture related items. In connection with certain of our business combinations and/or divestitures, we incur significant expenses that we would not have otherwise incurred as part of our business operations. These expenses include, among other things, compensation expenses, professional fees and other direct expenses, concurrent restructuring activities and divestiture activities, including employee severance and other exit costs, bridge financing costs, costs related to integration activities, changes to the fair value of contingent consideration related to the acquired company, and amortization of the fair value difference of below-market value assets arising from arrangements entered into or acquired in conjunction with an acquisition. We also recognize the gains and losses from the mark-up of equity or cost method investments to fair value upon obtaining control through acquisition. We exclude these items because they are related to acquisitions and have no direct correlation to the core operation of our business. Further, because we do not acquire businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, we believe it is useful to exclude such expenses when looking for a consistent basis for comparison across accounting periods.

(iv) Restructuring charges. We initiate restructuring activities to align our costs to our operating plans and business strategies based on then-current economic conditions, and such activities have a specific and defined term. Restructuring costs generally include severance and other termination benefits related to voluntary retirement programs, involuntary headcount reductions and facilities closures. Such restructuring costs include elimination of operational redundancy, permanent reductions in workforce and facilities closures and, therefore, are not considered by us to be a part of the core operation of our business and are not used by management when assessing the core profitability and performance of our business operations.

(v) Gains (losses) on the sale of strategic investments. We exclude gains and losses on the sale of equity investments in privately held companies because we do not believe they are reflective of our core business and operating results.

(vi) Deferred compensation. We exclude changes in the fair value of our non-qualified deferred compensation plan because we do not use these to assess the core profitability of our business operations.

(vii) Income tax effect of non-GAAP pre-tax adjustments. Excluding the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effect on net income. We utilize an annual non-GAAP tax rate in calculating non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of certain non-recurring and other period-specific items, which can vary in size and frequency and do not necessarily reflect our normal operations, and to more closely align our tax rate with our expected geographic earnings mix. This annual non-GAAP tax rate is based on an evaluation of our historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments, U.S. tax law changes, as well as other factors such as our current tax structure, existing tax positions and expected recurring tax incentives. Based on these considerations, we have elected to adopt a non-GAAP tax rate of 15% for fiscal year 2024.

INVESTOR CONTACT:
Trey Campbell
Synopsys, Inc.
650-584-4289
Synopsys-ir@synopsys.com 

EDITORIAL CONTACT:
Cara Walker
Synopsys, Inc.
650-584-5000
corp-pr@synopsys.com

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SOURCE Synopsys, Inc.

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BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept

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BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure

BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
 BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
 Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.

VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).

The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.

“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”

South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative

BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.

The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.

Built on Kaia Mainnet

A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.

Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.

By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.

QSSN as the Security Layer

The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.

BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.

Addressing the Harvest-Now, Decrypt-Later Risk

The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.

BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.

Expanding BTQ’s Korean Ecosystem

BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.

The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.

About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/

About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.

Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/

About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: Website | LinkedIn | X/Twitter

ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE BTQ Technologies Corp.

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Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference

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WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).

A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.

About Zimmer Biomet 
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation. 

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.

Contacts:

 

Media

Investors

Troy Kirkpatrick

David DeMartino

614-284-1926

646-531-6115

troy.kirkpatrick@zimmerbiomet.com

david.demartino@zimmerbiomet.com

Kirsten Fallon

Zach Weiner

781-779-5561

908-591-6955

kirsten.fallon@zimmerbiomet.com

zach.weiner@zimmerbiomet.com

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SOURCE Zimmer Biomet Holdings, Inc.

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NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools

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New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing

Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment

ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.

The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health. 

The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.

NextLadder’s Focus Areas for Investment

Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations. 

As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.

“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”

NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.

The fund’s active investment areas include:

Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.

NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.

In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.

NextLadder’s Co-Founder Leadership Team

NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.

“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”

Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.

“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”

Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.

“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”

To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.

About NextLadder Ventures

NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.

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SOURCE NextLadder Ventures

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