President and Chief Executive Officer at Cadence Design Systems
Good afternoon, everyone, and thank you for joining us today. I'm pleased to report that Cadence delivered outstanding financial results for 2021. As we exceeded our original growth target, achieving 11% revenue growth, 37% non-GAAP operating margin and operating cash flow of over $1 billion. Generational trends such as 5G, hyperscale computing, and AI ML are propelling the digital transformation of multiple end markets and fueling a golden era for semiconductors and electronic systems.
With robust design activity providing a strong tailwind, we expect our innovative solutions to continue driving broad-based business momentum in 2021 and 2022, accelerating revenue growth and profitability. John will provide more details in a moment. Our Intelligent System Design strategy triples our total available market. And our compelling portfolio of chip, package, board and system design solutions, leveraging our computational software expertise uniquely positions us to capture a wide range of exciting opportunities.
During the year, we significantly expanded our core EDA and IP solutions footprint with market-shaping customers, as new customers accelerated their adoption of our expanding systems portfolio. We deepened our partnerships with leading foundry, IP and cloud service providers and launched key strategic initiatives.
Earlier today, we announced an exciting strategic partnership with Dassault Systemes that brings together Cadence Allegro and Dassault's 3D experience platform to provide virtual twin experiences for optimizing the entire value chain for electromechanical system modeling, design, simulation and product life cycle management. Central to our strategy is the relentless commitment to innovation. And in 2021, we introduced 13 significant differentiated products across our business groups that will be key to our future growth.
Now let's talk about some of the product highlights for both Q4 and 2021. Our Digital and Signoff business had another strong year with 10% revenue growth. Deployment of our digital full flow, delivering industry-leading quality of results at the most advanced nodes continue to accelerate as more than 45 additional customers adopted it during the year.
In 2021, we strengthened our relationship with Oppo, a leading mobile phone manufacturer in China with our digital full flow and an expansion of our system design and analysis products. We expanded our relationship with Socionext, who used our digital full flow, delivering the best quality of results to successfully tape out several advanced node automotive and hyperscaler design.
Our transformative Cadence Cerebrus solution incorporates sophisticated ML technologies to explore the entire design space and intelligently optimize the digital full flow in an automated manner.
Several leading customers are increasingly deploying Cadence series in production designs and gaining exceptional power, performance, area and productivity benefits, including a market-shaping U.S. automotive company that reduced the power consumption of critical five-nanometer SoC AI blocks by nearly 10% in just two weeks.
Additionally, a premier Asia Pacific system company reduced power of their four-nanometer design by 10% with one-tenth the effort of manual optimization and then applied the Cadence Cerebrus-trained ML model to other designs, further improving their power and productivity.
And Cadence Cerebrus enabled a marquee U.S. semiconductor company to tape out their next-generation SoC with a 5 times productivity improvement on several critical blocks. Rapidly escalating system verification and software bring up challenges continue to drive heavy demand for our verification full flow solutions, delivering the industry's leading verification throughput.
Our verification business grew 20% year-over-year, fueled by a record year for hardware. Our next-generation Palladium Z2 and Protium X2 platforms provide best-in-class solutions to address system verification and software bring-up challenges of complex multibillion gate design.
Demand for these platforms that were launched earlier last year has greatly exceeded our expectations, as customers quickly embrace their superior performance, capacity and debug capabilities. The compelling value offered by the common front-end compiler led to more than half of our customers purchasing both Palladium as well as Protium platforms during the year.
Our hardware family added over 30 new customers and over 100 repeat orders during the year, with particular strength seen in hyperscaler, mobile and networking vertical. Our verification software product, which includes the Xcelium Logic Simulator and Jasper Formal Verification Platform continue to proliferate, with Jasper having an exceptional year, adding 40 new customers with particular strength in compute and hyperscale.
Today's complex memory and mixed-signal high-frequency design underscore the need for high-performance and very accurate circuit simulation. Our Spectre platform has been a long-standing leader in simulation tech solutions for analog and RF design.
And now with the recent addition of Spectre FX, our next-generation FastSPICE simulator for memory and large SoC design, we provide the industry's most advanced comprehensive cross-domain circuit simulation platform.
Several leading customers have already deployed Spectre FX on their production designs. Such as SK Hynix has successfully evaluated and deployed the Spectre FX simulation solution to improve their design methodology and productivity in DRAM verification.
And Micron adopted Spectre FX simulators, as it gave very compelling phosphide simulation performance for accurate verification of the DRAM and flash design.
In 2021, our IP business grew in multiple vertical markets, including mobile, 5G, hyperscaler and automotive. Our leadership DDR and PCI IP portfolio continue to proliferate at the five-nanometer and lower process nodes, and our design IP portfolio had several wins at top customers, including a significant expansion at a marquee US semiconductor company.
Our Tensilica DSP portfolio continued expanding its footprint in audio, imaging, computer vision and ML applications. And during the year, we introduced the Tensilica AI platform, delivering scalable and energy-efficient on device to edge AI processes. Pricing system complexity for advanced 5G, automotive, and HPC application is driving the need for a seamless platform solution across design, simulation and analysis.
Our System Design and Analysis business that is driving our expansion beyond EDA continued its strong momentum, delivering 18% year-over-year growth. There is rapidly growing demand for sophisticated multi-die integration packaging solutions and our revolutionary integrity 3D-IC solution, providing tightly integrated system planning, implementation and analysis technology has been gaining strong customer traction.
Our Integrity 3D-IC platform was recognized at TSMC's OIP ecosystem forum by winning Partner of the Year Award for joint development of 3D Fabric design solutions as well as winning a customer choice award for 3D-IC design. Last year, we furthered our system analysis strategy on building out a disruptive, comprehensive multiphysics platform by expanding into CFT domain through the acquisitions of NUMECA and Pointwise.
The integration has gone well and we have added nearly 100 new logos, including competitive wins across multiple end markets, notably in aerospace and defense. We expanded our collaboration with Schneider Electric, a leader in digital transformation of energy management and industrial automation. As they standardize on Allegro X platform for PCB design, as well as adopting our Clarity Solution for system analysis.
In Q4, we significantly strengthened our partnership with EDI, with a wide-ranging expansion of our EDA product, along with deployment of our System Design and Analysis solutions, which will enable them to develop more complete end-to-end solutions for their customers. And Butterfly Networks leverage our Clarity 3D solver for advanced mobile ultrasound design.
Lastly, usage of our Cadence Cloud portfolio continued to scale with over 250 customers using our solutions in the cloud. Cadence Cloud-ready products are enabling our customers to realize meaningful scalability, performance and productivity benefits through the availability of several flexible use models.
Now, I will turn it over to John to provide more details on the Q4 results and our 2022 outlook.