益華電腦 (CDNS) 2024 Q3 法說會逐字稿

Good afternoon. My name is Brianna, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cadence third quarter 2024 earnings conference call. (Operator Instructions)

午安.我叫布麗安娜，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 Cadence 2024 年第三季財報電話會議。 （操作員說明）

I will now turn the call over to Richard Gu, Vice President of Investor Relations for Cadence. Please go ahead, sir.

我現在將電話轉給 Cadence 投資者關係副總裁 Richard Gu。請繼續，先生。

Thank you, operator. I would like to welcome everyone to our third quarter of 2024 earnings conference call. I'm joined today by Anirudh Devgan, President and Chief Executive Officer; and John Wall, Senior Vice President and Chief Financial Officer. The webcast of this call and a copy of today's prepared remarks will be available on our website, cadence.com.

謝謝你，接線生。歡迎大家參加我們的 2024 年第三季財報電話會議。今天與我一起出席的還有總裁兼執行長 Anirudh Devgan；約翰‧沃爾 (John Wall)，資深副總裁兼財務長。本次電話會議的網路直播和今天準備好的演講副本將在我們的網站 cadence.com 上提供。

Today's discussion will contain forward-looking statements, including our outlook on future business and operating results. Due to risks and uncertainties, actual results may differ materially from those projected or implied in today's discussion. For information on factors that could cause actual results to differ, please refer to our SEC filings, including our most recent Forms 10-K and 10-Q, CFO commentary and today's earnings release.

今天的討論將包含前瞻性陳述，包括我們對未來業務和經營績效的展望。由於風險和不確定性，實際結果可能與今天討論中預測或暗示的結果有重大差異。有關可能導致實際結果不同的因素的信息，請參閱我們向 SEC 提交的文件，包括我們最新的 10-K 和 10-Q 表格、首席財務官評論和今天的收益發布。

All forward-looking statements during this call are based on estimates and information available to us as of today, and we disclaim any obligation to update them. In addition, our financial measures discussed on this call are non-GAAP unless otherwise specified. The non-GAAP measures should not be considered in isolation from or as a substitute for GAAP results. Reconciliations of GAAP to non-GAAP measures are included in today's earnings release.

本次電話會議期間的所有前瞻性陳述均基於我們今天掌握的估計和信息，我們不承擔更新這些陳述的義務。此外，除非另有說明，我們在本次電話會議中討論的財務指標均不符合公認會計原則。非公認會計準則措施不應孤立於公認會計準則結果，也不應被視為公認會計準則結果的替代方案。 GAAP 與非 GAAP 指標的調整包含在今天的收益發布中。

For the Q&A session today, we would ask that you observe a limit of one question and one follow-up. Now I'll turn the call over to Anirudh.

對於今天的問答環節，我們要求您遵守一個問題和一個後續行動的限制。現在我將把電話轉給阿尼魯德。

Thank you, Richard. Good afternoon, everyone, and thank you for joining us today. Cadence delivered exceptional results for the third quarter of 2024, with broad-based strength across our product portfolio. We are on track for a strong second half, and we are pleased to raise our full year EPS outlook. John will provide more details on our financials in a moment.

謝謝你，理查。大家下午好，感謝您今天加入我們。 Cadence 在 2024 年第三季取得了出色的業績，我們的產品組合具有廣泛的實力。我們預計將迎來強勁的下半年，我們很高興上調全年每股收益預期。約翰稍後將提供有關我們財務狀況的更多詳細資訊。

Generational trends such as hyperscale computing, autonomous driving and 5G, all accelerated by the AI super cycle, continue to fuel strong design activity across multiple verticals, especially in data center and automotive. Our cutting-edge chip to system platforms empower customers to drive unprecedented innovation as the race to develop next-gen AI and Agentic AI products while navigating escalating design complexities.

人工智慧超級週期加速了超大規模運算、自動駕駛和 5G 等世代趨勢，繼續推動多個垂直領域的強勁設計活動，尤其是在資料中心和汽車領域。我們的尖端晶片到系統平台使客戶能夠在開發下一代人工智慧和代理人工智慧產品的競賽中推動前所未有的創新，同時應對不斷升級的設計複雜性。

We continue steadily executing to our intelligent system design strategy, that triples our TAM opportunity while significantly expanding our portfolio across core EDA, IP and system design and analysis. I'm excited about AI's incredible promise and how rapidly it is becoming an integral part of the design workflow with customers steadily increasing their investments in AI-driven automation.

我們繼續穩步執行我們的智慧系統設計策略，這使我們的 TAM 機會增加了兩倍，同時顯著擴展了我們在核心 EDA、IP 和系統設計與分析方面的產品組合。我對人工智慧令人難以置信的前景以及它如何迅速成為設計工作流程中不可或缺的一部分以及客戶穩步增加對人工智慧驅動的自動化的投資感到興奮。

Our cadence.AI portfolio powered by GenAI agents, AI-driven optimization, and Big Data analytics JedAI platform saw sales nearly triple over the last year, as it continued delivering unparalleled quality of results and productivity benefits. We continue partnering with NVIDIA to accelerate AI innovation and are using their latest NeMo and NIM micro services to build customized GenAI application, delivering enhanced optimization and productivity.

我們的 cadence.AI 產品組合由 GenAI 代理、人工智慧驅動的優化和大數據分析 JedAI 平台提供支持，去年銷售額幾乎翻了三倍，因為它繼續提供無與倫比的結果品質和生產力優勢。我們繼續與 NVIDIA 合作加速 AI 創新，並使用他們最新的 NeMo 和 NIM 微服務來建立客製化的 GenAI 應用程序，從而提供增強的優化和生產力。

In Q3, we deepened our partnership with ARM through a broad expansion of our IP, hardware, and AI-driven design enablement solutions to help deliver ARM's next-generation AI technologies and advanced ARM compute subsystems across multiple markets. We expanded our long-standing partnership with TSMC, with AI optimized design flows certified for TSMC's N3 and N2P technologies. We are also collaborating on innovative solutions for next-generation technologies like TSMC A16 and 3D blocks that are paving the way for the AI factories of tomorrow.

第三季度，我們透過廣泛擴展 IP、硬體和 AI 驅動的設計支援解決方案，加深了與 ARM 的合作夥伴關係，以協助在多個市場提供 ARM 的下一代 AI 技術和先進的 ARM 運算子系統。我們擴大了與台積電的長期合作關係，並通過了台積電 N3 和 N2P 技術認證的人工智慧優化設計流程。我們也合作開發適用於 TSMC A16 和 3D 模組等下一代技術的創新解決方案，為未來的人工智慧工廠鋪平道路。

Demand for our industry-leading integrity 3D IC solution that enables system-level PPA optimization continues to grow with accelerating adoption by hyperscalers, OSAT and foundries. We introduced the industry's first auto router for both die-to-die and die-to-substrate connectivity. And that was showcased at TSMC's 3DFabric Alliance workshop.

隨著超大規模生產商、OSAT 和代工廠的加速採用，對我們行業領先的完整性 3D IC 解決方案的需求持續增長，該解決方案可實現系統級 PPA 優化。我們推出了業界首款用於晶片到晶片和晶片到基板連接的自動路由器。這在台積電的 3DFabric 聯盟研討會上進行了展示。

High-speed multilayer PCB designs require increasing levels of miniaturization, advanced simulation, and AI-driven automation. Allegro X, with this tight integration with our analysis technology and expanded collaboration platform is ramping strongly and drove over 40% of our PCB sales this year. The transition to OrCAD X, our new mainstream PCB solution accelerated in Q3, with a third of our OrCAD customers converting to this new cloud-enabled solution.

高速多層 PCB 設計需要不斷提高小型化、進階模擬和人工智慧驅動的自動化水準。 Allegro X 與我們的分析技術和擴展的協作平台緊密整合，正在強勁成長，並推動了我們今年 PCB 銷售額的 40% 以上。我們的新主流 PCB 解決方案 OrCAD X 的過渡在第三季度加速，三分之一的 OrCAD 客戶轉向了這種新的支援雲端的解決方案。

Cadence on Cloud is a key go-to-market platform to reach the long tail of smaller system customers and is seeing strong traction with over 400 customers, tens of thousands of online users and orders doubling over the past year. We recently launched the Cadence OnCloud marketplace and announced Cadence online support through OnCloud, which uses GenAI technology to provide insightful contextual and accurate answers to customer queries.

Cadence on Cloud 是吸引小型系統客戶長尾的關鍵入市平台，在過去一年中受到超過 400 名客戶、數萬名線上用戶和訂單翻倍的強勁吸引力。我們最近推出了 Cadence OnCloud 市場，並宣布透過 OnCloud 提供 Cadence 線上支持，OnCloud 使用 GenAI 技術為客戶查詢提供富有洞察力的上下文和準確答案。

As the digital transformation in Aerospace and Defense accelerates, we saw continued strength in this vertical as the US Air Force and Army expanded their commitment to Cadence's solutions spanning from chips to boards to systems. Our hardware accurate digital twins have been successfully used by Northrop Grumman in taping out several ASICs, helping accelerate schedule by over two years.

隨著航空航太和國防數位轉型的加速，隨著美國空軍和陸軍擴大對 Cadence 解決方案從晶片到電路板再到系統的承諾，我們看到了該垂直領域的持續優勢。我們的硬體精確數位孿生已被諾斯羅普·格魯曼公司成功用於流片多個 ASIC，幫助將進度加快了兩年多。

In Q3, we substantially grew our footprint at several marquee hyperscalers through a broad proliferation of our best-in-class hardware systems, IP, and software portfolio. Our system design and analysis business continued to outpace the market, delivering impressive results with over 40% year-over-year revenue growth in Q3.

在第三季度，透過廣泛擴散我們一流的硬體系統、IP 和軟體產品組合，我們在多家大型超大規模企業中的足跡大幅成長。我們的系統設計和分析業務繼續領先市場，取得了驕人的業績，第三季營收年增超過40%。

We are pleased with the strong growth of our multiphysics portfolio, that couples our expertise in physics-based modeling with AI-driven optimization to deliver superior results to customers. Clarity and Celsius both grew strongly with competitive wins, while our newly acquired BETA CAE products that round out our system analysis portfolio outperformed our expectations as we signed large deals with major EV companies.

我們對多物理場產品組合的強勁成長感到高興，它將我們在基於物理的建模方面的專業知識與人工智慧驅動的最佳化相結合，為客戶提供卓越的結果。 Clarity 和攝氏都在競爭中取得了強勁增長，而我們新收購的 BETA CAE 產品完善了我們的系統分析產品組合，其表現超出了我們的預期，因為我們與主要電動汽車公司簽署了大筆交易。

Our AI-driven optimality solution was adopted by several leading customers and Voltus InsightAI, was used by a top hyperscaler to successfully achieve an 80% higher drop reduction in their designs. Our IP business continued its strong momentum in Q3, delivering over 50% year-over-year revenue growth as we executed to our profitable and scalable growth strategy.

我們的 AI 驅動的最優解決方案已被多家領先客戶採用，而一家頂級超大規模生產商使用 Voltus InsightAI 成功將其設計中的跌落降低了 80%。我們的 IP 業務在第三季度繼續保持強勁勢頭，隨著我們執行盈利和可擴展的成長策略，營收年增超過 50%。

Increasing complexity of interconnect protocols, along with the growing outsourcing trend, and new foundry opportunities are providing strong tailwinds to our IP business. AI, HPC and chiplet use cases were the primary drivers for the adoption of our differentiated HBM, PCIe, UCIe, DDR and high-speed SerDes solutions in design ranging from 7-nanometer down to the most advanced gate all around nodes.

互連協議的複雜性日益增加，外包趨勢不斷增長，以及新的代工機會為我們的 IP 業務提供了強大的推動力。 AI、HPC 和小晶片用例是我們在從 7 奈米到最先進的全閘極節點設計中採用差異化 HBM、PCIe、UCIe、DDR 和高速 SerDes 解決方案的主要驅動力。

Our AI-assisted Tensilica audio DSPs scored multiple design wins with marquee global customers across HPC, mobile and automotive use cases. Our core EDA business comprised of our custom, digital, and functional verification businesses delivered 9% year-over-year revenue growth in Q3.

我們的 AI 輔助 Tensilica 音訊 DSP 在 HPC、行動和汽車用例領域贏得了許多全球客戶的多項設計勝利。我們的核心 EDA 業務由客製化、數位和功能驗證業務組成，第三季營收年增 9%。

Our new groundbreaking hardware systems offering industry's leading performance, capacity and scalability experienced strong demand, especially at AI, hyperscale and automotive companies. Verisium, our AI-driven verification platform continued seeing rapid customer adoption with several leading customers successfully using Verisium SimAI for highly efficient coverage maximization.

我們全新的突破性硬體系統提供業界領先的效能、容量和可擴展性，需求強勁，特別是在人工智慧、超大規模和汽車公司。我們的 AI 驅動驗證平台 Verisium 繼續得到客戶的快速採用，多家領先客戶成功使用 Verisium SimAI 實現高效的覆蓋範圍最大化。

Proliferation of our digital full flow at the most advanced nodes accelerated with over 30 new full flow logos added over the past year. With nearly 450 tape-outs, customers are increasingly deploying Cadence Cerebrus AI solution as it continues to deliver unparalleled PPA and productivity benefits, on a broad spectrum of designs.

去年，我們增加了 30 多個新的全流程徽標，加速了我們在最先進節點的數位全流程的擴散。憑藉近 450 個串流片，客戶越來越多地部署 Cadence Cerebrus AI 解決方案，因為它繼續在廣泛的設計中提供無與倫比的 PPA 和生產力優勢。

Our AI-driven Virtuoso Studio leverages the capabilities of our flagship Virtuoso platform. while seamlessly integrating with other Cadence cutting-edge technologies to drive significant productivity benefits for analog, RF, and mixed signal designers. With this Gen AI-driven automated design migration and new layout placement and routing technologies, customers are rapidly adopting Virtuoso studio and it won 30 new logos in Q3.

我們的人工智慧驅動的 Virtuoso Studio 利用了我們旗艦 Virtuoso 平台的功能。同時與其他 Cadence 尖端技術無縫集成，為類比、射頻和混合訊號設計人員帶來顯著的生產力提升。憑藉這一新一代 AI 驅動的自動化設計遷移以及新的佈局佈局和佈線技術，客戶正在迅速採用 Virtuoso studio，並在第三季度贏得了 30 個新徽標。

In summary, I'm pleased with our Q3 results and the continuing momentum of our business. The AI-driven automation era offers massive opportunities, and the co-optimization of our comprehensive EDA, SDA and IP portfolio with accelerated compute and AI orchestration uniquely positions us to provide disruptive solutions to multiple verticals.

總之，我對我們第三季的業績和業務的持續成長勢頭感到滿意。人工智慧驅動的自動化時代提供了巨大的機遇，我們全面的 EDA、SDA 和 IP 產品組合與加速運算和人工智慧編排的共同優化使我們能夠為多個垂直行業提供顛覆性解決方案。

Now I will turn it over to John to provide more details on the Q3 results and our updated 2024 outlook.

現在我將把它交給 John，以提供有關第三季度業績和我們更新的 2024 年展望的更多詳細資訊。

Thanks, Anirudh, and good afternoon, everyone. I'm pleased to report that Cadence delivered strong Q3 results with total revenue of over $1.2 billion, we achieved 19% year-over-year growth. Our Q3 recurring revenue growth returned to low teens on a year-over-year basis. Our Intelligent System Design strategy is paying off, with our system design and analysis business delivering strong growth, and we continue to see robust demand for our emulation and prototyping systems.

謝謝阿尼魯德，大家午安。我很高興地報告，Cadence 第三季業績強勁，總收入超過 12 億美元，年增 19%。我們第三季的經常性收入年增率回到了十幾歲以下。我們的智慧系統設計策略正在取得回報，我們的系統設計和分析業務實現了強勁成長，我們繼續看到對我們的模擬和原型系統的強勁需求。

Here are some of the financial highlights from the third quarter, starting with the P&L. Total revenue was $1.215 billion. GAAP operating margin was 28.8%, and non-GAAP operating margin was 44.8%. And GAAP EPS was $0.87, with non-GAAP EPS of $1.64.

以下是第三季的一些財務亮點，從損益表開始。總收入為 12.15 億美元。 GAAP 營業利益率為 28.8%，非 GAAP 營業利益率為 44.8%。 GAAP 每股收益為 0.87 美元，非 GAAP 每股收益為 1.64 美元。

Next, turning to the balance sheet and cash flow. We had a $2.5 billion senior notes offering in Q3 that was well received by the market. We have used the majority of the net proceeds to retire maturing notes and prepaid term loans as well as for other general corporate purposes. Cash balance at quarter end was $2.786 billion, while the principal value of debt outstanding was $2.850 billion. Operating cash flow was $410 million. DSOs were 44 days, and we used $150 million to repurchase Cadence shares.

接下來，轉向資產負債表和現金流量。我們在第三季發行了 25 億美元的優先票據，受到了市場的好評。我們已將大部分淨收益用於償還到期票據和預付定期貸款以及其他一般公司用途。季末現金餘額為 27.86 億美元，未償債務本金為 28.50 億美元。營運現金流為 4.1 億美元。 DSO 為期 44 天，我們用 1.5 億美元回購了 Cadence 股票。

Before I provide our updated outlook I'd like to highlight that it contains the usual assumption that export control regulations that exist today remain substantially similar for the remainder of the year. Our updated outlook for 2024 is revenue in the range of $4.61 billion to $4.65 billion. GAAP operating margin in the range of 29% to 30%. Non-GAAP operating margin in the range of 42% to 43%. GAAP EPS in the range of $3.70 to $3.76. Non-GAAP EPS in the range of $5.87 and to $5.93. Operating cash flow in the range of $1 million to $1.2 billion. And we expect to use approximately 50% of our annual free cash flow to repurchase Cadence shares.

在提供最新的展望之前，我想強調的是，它包含了通常的假設，即目前存在的出口管制法規在今年剩餘時間內保持基本相似。我們對 2024 年的最新展望是營收在 46.1 億美元至 46.5 億美元之間。 GAAP 營業利潤率介於 29% 至 30% 之間。非 GAAP 營業利潤率在 42% 至 43% 之間。 GAAP 每股收益在 3.70 美元至 3.76 美元之間。非 GAAP 每股收益在 5.87 美元至 5.93 美元之間。營運現金流在 100 萬美元至 12 億美元之間。我們預計將使用約 50% 的年度自由現金流來回購 Cadence 股票。

With that in mind, for Q4, we expect revenue in the range of $1.325 billion to $1.365 billion. GAAP operating margin in the range of 33.2% to 34.2% and non-GAAP operating margin in the range of 45.2% to 46.2%. GAAP EPS in the range of $1.09 to $1.15, and non-GAAP EPS in the range of $1.78 to $1.84. And as usual, we published a CFO commentary document on our Investor Relations website which includes our outlook for additional items as well as further analysis and GAAP to non-GAAP reconciliations.

考慮到這一點，我們預計第四季的營收將在 13.25 億美元至 13.65 億美元之間。 GAAP 營業利潤率在 33.2% 至 34.2% 範圍內，非 GAAP 營業利潤率在 45.2% 至 46.2% 範圍內。 GAAP 每股收益為 1.09 美元至 1.15 美元，非 GAAP 每股收益為 1.78 美元至 1.84 美元。與往常一樣，我們在投資者關係網站上發布了一份首席財務官評論文件，其中包括我們對其他項目的展望以及進一步分析以及 GAAP 與非 GAAP 調節。

In conclusion, I'm pleased with our Q3 results. Our Q4 bookings pipeline looks exceptionally strong, and we are well positioned to deliver a strong 2024. As always, I'd like to close by thanking our customers, partners, and our employees for their continued support.

總之，我對我們第三季的結果感到滿意。我們第四季度的預訂管道看起來異常強勁，我們完全有能力實現強勁的 2024 年業績。

And with that, operator, we will now take questions.

接線員，我們現在開始提問。

(Operator Instructions) Joe Vruwink, Baird.

（操作員說明）Joe Vruwink，Baird。

Great. Hi, everyone. I appreciate the nature of your relationships with customers means you typically know well in advance what product road maps might be, you're typically not learning new information off of public calls. But just given the number of headlines off late around advanced foundry efforts or maybe demand from China, I wanted to ask, have you learned anything over the past three months or so that you would point out as maybe being something worth considering either good or bad as investors think about the 2025 opportunity for Cadence?

偉大的。大家好。我很欣賞您與客戶關係的性質，這意味著您通常會提前充分了解產品路線圖，您通常不會透過公開電話了解新資訊。但考慮到最近有關先進代工努力或來自中國的需求的頭條新聞數量，我想問一下，在過去三個月左右，您是否學到了一些東西，以便您指出可能是值得考慮的好或壞的事情投資者如何看待Cadence的2025年機會？

Yeah. Hi, Joe, this is Anirudh. That's a good question. Well, I would say that I mean as you know already that the importance of semiconductor to the overall global economy is increasing and is more well recognized now and I did visit several countries over the last quarter, and there is more and more kind of commitment to build that out.

是的。嗨，喬，我是阿尼魯德。這是個好問題。嗯，我想說的是，正如您已經知道的那樣，半導體對全球整體經濟的重要性正在增加，並且現在得到了更多的認可，我在上個季度確實訪問了幾個國家，並且有越來越多的承諾來建構它。

And you're seeing that in different countries and also like we highlighted even earlier in the year, of course, TSMC is leading foundry, but our own relationship with Samsung and Intel in this area has improved. And global also, we have worked for several years.

你會看到，在不同的國家，就像我們在今年早些時候強調的那樣，當然，台積電是領先的代工廠，但我們自己與三星和英特爾在這一領域的關係有所改善。在全球範圍內，我們已經工作了好幾年。

So I would like to say that in general, we do see this continued investment in newer foundries, whether it's Intel, Samsung and even like Rapidus in Japan and other countries. So -- and we continue to partner closely with the leading players like TSMC and ARM as we highlighted in this report. But it's good to see more investments we've made in other areas.

所以我想說，總的來說，我們確實看到了對新代工廠的持續投資，無論是英特爾、三星，甚至是日本和其他國家的 Rapidus。因此，正如我們在本報告中所強調的那樣，我們將繼續與台積電和 ARM 等領先廠商密切合作。但很高興看到我們在其他領域進行了更多投資。

Okay. And then, John, you don't normally give backlog guidance, but you did comment on bookings pipeline and 4Q and that stands out. Are you maybe able to go into a bit more color on what you might expect or what you would be looking for as kind of the forerunners to your 2025 performance?

好的。然後，約翰，您通常不會提供積壓指導，但您確實對預訂管道和第四季度發表了評論，這一點很突出。您能否進一步闡述您的預期或您將尋找什麼作為 2025 年業績的先驅？

Yeah. I mean, thanks for picking up on that, Joe. I mean, obviously, we're not giving any outlook on 2025 yet. But it's -- we have a very, very strong pipeline right now for Q4. I think it's the biggest I've ever seen for Q4 pipeline. It reminds me a little bit, it's kind of similar to how we finished 2021.

是的。我的意思是，謝謝你接受這一點，喬。我的意思是，顯然我們還沒有對 2025 年做出任何展望。但我們現在有一個非常非常強大的第四季管道。我認為這是我所見過的第四季度管道中最大的。這讓我想起了一點，這有點類似於我們 2021 年的結束方式。

If you recall, in 2021, we had a really strong pickup in bookings in Q4 in '21 and about 40% of our annual bookings came in, in Q4 of '21. And this year, the second half seems to be setting up the same way, but it's an exceptionally strong pipeline, and we're seeing strong design activity everywhere.

如果你還記得，2021 年，我們在 21 年第四季的預訂量出現了強勁成長，大約 40% 的年度預訂量是在 21 年第四季實現的。今年下半年似乎也以同樣的方式進行，但這是一個異常強大的管道，我們到處都看到強勁的設計活動。

Great. Thank you very much.

偉大的。非常感謝。

Jason Celino, KeyBanc Capital Markets.

Jason Celino，KeyBanc 資本市場。

Hey, thanks for taking my questions, maybe just following up on Joe's backlog question. So understand that the pipeline looks quite large. Is it fair to say that the composition of that pipeline is mostly being hardware driven? I guess curious what you're seeing from a new order pipeline perspective on kind of the Z3, X3.

嘿，感謝您提出我的問題，也許只是跟進喬的積壓問題。所以要明白管道看起來相當大。可以公平地說該管道的組成主要是硬體驅動的嗎？我想你很好奇你從 Z3、X3 的新訂單管道角度看到了什麼。

Hi, Jason, thanks for the opportunity to clarify. I mean it's broad-based right across the board, across all of our businesses. All the businesses are performing really, really well. I mean, when I look at our forecast for the remainder of the year, on a three-year CAGR basis, I mean, all business groups are on track for strong growth from low double-digit growth on the core EDA software side, right through to kind of mid-teen growth right up to almost 30% growth for like IP, functional verification, which hardware is part of a system design analysis.

嗨，傑森，感謝您給我澄清的機會。我的意思是，它在我們所有的業務中都有廣泛的基礎。所有的業務都表現得非常非常好。我的意思是，當我查看我們對今年剩餘時間的預測時，以三年複合年增長率為基礎，我的意思是，所有業務部門都有望從核心EDA 軟體方面的低兩位數增長中實現強勁成長，對吧IP、功能驗證（硬體是系統設計分析的一部分）等方面的成長高達近 30%。

Okay. Perfect. And then just one really quick one on China. I think last quarter, I think you were trying to derisk some of your assumptions. Obviously, this quarter, there were some incremental worries that the region might be taking another leg down.

好的。完美的。然後是一篇關於中國的快速報道。我認為上個季度，您試圖消除一些假設的風險。顯然，本季度，人們越來越擔心該地區可能會再次下滑。

But obviously, Cadence and EDA see very different purchasing habits and demand drivers from semi cap and some of the smaller point solution providers. But do you still expect to see 13% of your revenues come from China this year? I guess what else can you tell us about the overall demand environment there?

但顯然，Cadence 和 EDA 認為半帽子和一些較小的單點解決方案提供者的購買習慣和需求驅動因素截然不同。但您仍預期今年 13% 的收入來自中國嗎？我想您還能告訴我們有關那裡整體需求環境的什麼資訊嗎？

Yeah. Great question. Jason, I mean, you're reading my mind, giving myself and my team were looking through China. We went back -- we're data-driven. We went back 25 years to have a look at our China revenue. Because -- I mean we're expecting China revenue to be lower this year than last year. That's only happened 3 times in the last 25 years.

是的。很好的問題。傑森，我的意思是，你讀懂了我的想法，讓我自己和我的團隊正在審視中國。我們回去了——我們是數據驅動的。我們回顧 25 年前，看看我們在中國的收入。因為——我的意思是我們預計今年中國的收入將低於去年。過去 25 年來，這種情況只發生過 3 次。

First time was 2008. Obviously, there were macro things that gone on back in 2008, and it took until 2011 for us to reach a new high in China revenue. But it recovered immediately in 2009. And -- it dipped in 2021, recovered immediately to a new high in 2022. And it looks like it's dipping in 2024. But I'm very, very pleased that Q2 was stronger than Q1 on a dollar basis. Q3 was stronger than and China seems to be recovering well with strong design activity.

第一次是2008年。但它在 2009 年立即恢復。第三季表現強勁，中國似乎因強勁的設計活動而復甦良好。

Okay, thank you very.

好的，非常感謝。

Gianmarco Conti, Deutsche Bank.

吉安馬科·孔蒂，德意志銀行。

Yeah. Hi. Thank you very much for taking my questions and congrats again for a great quarter. Maybe perhaps if you could touch a little bit on the Cadence.AI suites if you're seeing incremental appetite there. And is it going to be material for 2025 growth? If you could give us any data points or qualitative anecdotes that will be amazing. Thank you.

是的。你好。非常感謝您回答我的問題，並再次恭喜您度過了一個美好的季度。如果您看到 Cadence.AI 套件的需求不斷增加，也許您可以接觸 Cadence.AI 套件。這會對 2025 年的成長產生重大影響嗎？如果您能給我們任何數據點或定性軼事，那就太棒了。謝謝。

Yeah, absolutely. I mean we have pretty pleased with how our Cadence.AI portfolio is doing. And like mentioned earlier, I mean, right now, I think it is used by all our top customers. So -- now some of them are -- the amount of proliferation is different at each customer. But right now, we are engaged in all of our top customers with our AI solution.

是的，絕對是。我的意思是，我們對 Cadence.AI 產品組合的表現非常滿意。正如前面提到的，我的意思是，現在，我認為我們所有的頂級客戶都在使用它。所以——現在其中一些是——每個客戶的擴散量是不同的。但現在，我們正在透過我們的人工智慧解決方案與所有頂級客戶進行合作。

And as you may know, we have five major AI platforms, all analog, digital, verification, PCB and package and system analysis. So it's a pretty rich portfolio. And the customers are routinely seeing anywhere from 5% to 20% improvement in PPA, which is significant. I think the value of AI is not just productivity, which is huge. I mean, we have a history of productivity improvements in EDA, but the value of AI is when it can give a better result. So that's where I think the real value and monetization can happen if the result is better.

如您所知，我們有五個主要的人工智慧平台，全部是類比、數位、驗證、PCB 以及封裝和系統分析。所以這是一個相當豐富的投資組合。客戶通常會發現 PPA 提高了 5% 到 20%，這是非常重要的。我認為人工智慧的價值不僅僅是生產力，它是巨大的。我的意思是，我們有 EDA 生產力提高的歷史，但人工智慧的價值在於它可以提供更好的結果。因此，我認為如果結果更好，真正的價值和貨幣化就可以實現。

And we also design our own chips as well. As you know, Palladium. We design our own chip, one of the most complicated chips that is made by TSMC. And we design our own IP, right, in our IP group. So we are also applying our own solutions internally as well. So give you -- these are like true comparisons of AI versus non-AI solutions.

我們也設計自己的晶片。如你所知，鈀金。我們設計自己的晶片，這是台積電製造的最複雜的晶片之一。我們在 IP 團隊中設計了自己的 IP，對吧。因此，我們也在內部應用我們自己的解決方案。所以給你——這些就像是人工智慧與非人工智慧解決方案的真實比較。

So even in the latest Palladium Z3-chip, we saw like 15% improvement in power using Cadence Cerebrus and in the latest AI IP, we designed, we saw anywhere from 13% to 20% improvement in our IP group using our own Cadence.AI solutions, which is very consistent with what we see with top customers.

因此，即使在最新的Palladium Z3 晶片中，我們也看到使用Cadence Cerebrus 的功耗提高了15%，而在我們設計的最新AI IP 中，我們看到使用我們自己的Cadence 的IP 組的功耗提高了13% 到20%。

So overall, we are pleased with the benefit we are getting, especially with the improvement in PPA and productivity improvements can be anywhere between 5x to 10x, but the PPA benefits are truly remarkable and almost equivalent to one kind of node, one process node migration typically get 15% to 20% PPA improvement, and we can get that with AI.

因此，總體而言，我們對所獲得的收益感到滿意，尤其是PPA 的改進，生產率的提高可以達到5 倍到10 倍之間，但PPA 的收益確實非常顯著，幾乎相當於一種節點、一種流程節點的遷移通常，PPA 會提高 15% 到 20%，我們可以透過 AI 實現這一點。

And then the last thing I would like to highlight with AI is our cadence on cloud offering. So we do have a Cadence customer support portal, and we are applying GenAI in there to give better and response to our customers. And this is another big trend of applying AI to give better customer support.

關於人工智慧，我想強調的最後一件事是我們在雲端產品上的節奏。因此，我們確實有一個 Cadence 客戶支援門戶，我們正在其中應用 GenAI，以便為我們的客戶提供更好的回應。這是應用人工智慧來提供更好的客戶支援的另一個大趨勢。

So overall, applying Cadence.AI, of course, working with all our top customers across all five major platforms, applying AI internally to improve our own designs, whether it's in hardware group or IP and then applying AI for customer support can make us much more efficient.

所以總的來說，應用Cadence.AI，當然，與我們所有五個主要平台上的所有頂級客戶合作，在內部應用人工智慧來改進我們自己的設計，無論是在硬體組還是IP中，然後應用人工智慧進行客戶支援可以讓我們受益匪淺。

Amazing. If I could just ask a quick follow-up. Is it fair to say that in Q4, we should see the air pocket of hardware kind of closing out? And if you could share sort of any commentary around 2025 visibility, particularly from your overordering of the FPGAs and the raw materials.

驚人的。如果我能要求快速跟進就好了。可以公平地說，在第四季度，我們應該看到硬體的氣穴逐漸消失嗎？如果您能分享任何有關 2025 年可見性的評論，特別是對 FPGA 和原材料的超額訂購。

I'm just kind of curious how does that translate into backlog? I know you think you don't specifically guide on backlog, but obviously, backlog was a little bit down sequentially. And so any commentary there, that will be amazing. Thank you.

我只是有點好奇這如何轉化為積壓？我知道您認為您沒有具體指導積壓工作，但顯然，積壓工作按順序略有下降。因此，那裡的任何評論都會令人驚嘆。謝謝。

Yeah, GianMarco, I certainly wouldn't categorize our ordering of FPGAs as over ordering to fit the demand that we see. We're seeing very robust demand. The pipeline is super strong. But like I said, I haven't seen it as strong as this in any previous Q4 that I've been here. So we're set up for a tremendous Q4.

是的，GianMarco，我當然不會將我們的 FPGA 訂單歸類為為了滿足我們所看到的需求而過度訂購。我們看到需求非常強勁。管道超強。但就像我說的，在我之前去過的任何第四季中，我都沒有看到過如此強勁的表現。因此，我們已經為精彩的第四季做好了準備。

At this time of the year, it's always difficult to give any indication as to what next year looks like and particularly in years like this, when you expect such a strong bookings quarter in Q4, we kind of have to get that landed and look at the quality of that before we give any indication as to what next year looks like.

每年的這個時候，總是很難對明年的情況給出任何指示，尤其是在這樣的年份，當您預計第四季度的預訂量會如此強勁時，我們必須將其落實並考慮在我們對明年的情況在做出任何指示之前，先確定其品質。

But I'm very, very pleased with the hardware demand, with the performance of the business and they're ramping up production all the time to meet the demand.

但我對硬體需求和業務表現非常非常滿意，他們一直在提高產量以滿足需求。

Okay. Thank you very much.

好的。非常感謝。

Lee Simpson, Morgan Stanley.

李‧辛普森，摩根士丹利。

Great, good evening everyone. So a couple of quick ones from me actually. Just looking at the Millennium platform, following on from the last question there, could you maybe characterize what is the interest beyond NVIDIA. When, who and how big do we think the demand will be for that platform?

太好了，大家晚上好。實際上是我的一些快速的。只要看看 Millennium 平台，接著上一個問題，您是否可以描述一下 NVIDIA 以外的興趣是什麼。我們認為該平台的需求何時、誰、有多大？

And maybe as a follow-on question, I'm just interested on the timing of the impact from new collaboration with ARM on CSS. Does that have any specific vertical to it? Is that autos? Or is it maybe the aerospace stuff that you were talking about there? Thanks.

也許作為一個後續問題，我只是對與 ARM 對 CSS 的新合作產生影響的時間感興趣。這有什麼具體的垂直方向嗎？那是汽車嗎？或者你在那裡談論的可能是航空航天的東西？謝謝。

Yeah. Good question, Lee. So first, in terms of ARM, I mean, we have a pretty broad partnership with ARM over the years. I mean, going back like 10 years, and especially in their IP development CPUs and GPUs. And this latest collaboration, which we highlighted, is also expanding to compute subsystems and total design, which is ARM doing more as you know, more chiplets and more droplets.

是的。好問題，李。首先，就 ARM 而言，我的意思是，多年來我們與 ARM 建立了相當廣泛的合作關係。我的意思是，追溯到 10 年前，尤其是在他們的 IP 開發 CPU 和 GPU 方面。我們強調的這項最新合作也擴展到了計算子系統和整體設計，正如你所知，ARM 正在做更多的事情，更多的小晶片和更多的液滴。

And this is broad-based, but I think they are -- this is more a question for ARM, but they are seeing a lot of strength in multiple markets, including HPC and automotive. But this is expansion of as ARM kind of morph is their strategy, our relationship with ARM gets even stronger, not just in IP development but also for total compute.

這是基礎廣泛的，但我認為他們是——這更多的是 ARM 的問題，但他們在多個市場看到了很大的優勢，包括 HPC 和汽車。但這是一種擴展，因為 ARM 的變形是他們的策略，我們與 ARM 的關係變得更加牢固，不僅在 IP 開發方面，而且在整體運算方面。

And in terms of your other questions on Millennium, in general, I am optimistic, like I've mentioned before that with these new systems we can accelerate a lot of our software on combination of CPUs and GPUs, okay? And Millennium is a perfect example. And the reason for that is -- I mean, of course, we can accelerate EDA. We got like fabulous results in Spectre. We are the leading provider of circuit simulation, which Spectre is the leading platform.

至於你關於 Millenium 的其他問題，總的來說，我很樂觀，就像我之前提到的，透過這些新系統，我們可以在 CPU 和 GPU 的組合上加速我們的許多軟體，好嗎？千禧年就是一個完美的例子。原因是——我的意思是，我們當然可以加速 EDA。我們在《幽靈黨》中取得了驚人的成績。我們是領先的電路模擬供應商，其中 Spectre 是領先的平台。

And with these latest systems, we are able to accelerate circuit simulation by 5x to 10x by these CPU, GPU acceleration platforms, but also on system design and analysis, which is Millennium is a perfect example for that. And the reason for that is that system design and analysis by nature, the algorithms involved does a lot of matrix multiply.

借助這些最新的系統，我們能夠透過這些 CPU、GPU 加速平台加速電路模擬 5 到 10 倍，而且還可以加速系統設計和分析，Millennium 就是一個完美的例子。原因在於系統設計和分析本質上涉及的演算法會進行大量矩陣乘法。

Like CFD is essentially a matrix multiply operation. And the other thing that is largely a matrix multiply is, of course, AI. So -- and these systems are well tuned for AI or matrix multiply operation. So they are very naturally tuned for SD&A kind of application. So I'm pretty optimistic that because we're getting tremendous results and we are seeing that CFD especially with the aerospace and automotive companies, okay?

就像CFD本質上是矩陣乘法運算。當然，另一個主要是矩陣乘法的東西是人工智慧。因此，這些系統針對人工智慧或矩陣乘法運算進行了很好的調整。因此，它們非常自然地針對 SD&A 類型的應用程式進行了調整。所以我非常樂觀，因為我們取得了巨大的成果，而且我們看到 CFD 特別是在航空航天和汽車公司，好嗎？

Because this is -- typically, they have been limited by how much simulation they can provide and I think we highlighted like for example, Honda is a great kind of early development partner for Millennium. And in general, as these platforms get more sophisticated, the CPU, GPU platforms, I think we can apply this acceleration to a broader portfolio, and you'll see that going forward.

因為這通常是他們受到可以提供多少模擬的限制，我認為我們強調了本田是千禧年的一個很好的早期開發合作夥伴。總的來說，隨著這些平台（CPU、GPU 平台）變得更加複雜，我認為我們可以將這種加速應用到更廣泛的產品組合中，您將會看到這一點。

That's great. Thanks so much.

那太棒了。非常感謝。

Charles Shi, Needham.

查爾斯·施，李約瑟。

Hi, good afternoon. I want to ask another question about the Intel and Samsung. But from another perspective, I mean, despite all the headlines, which were not so positive, we know that those two customers will wear your market share historically has been a little bit underrepresented, but largely because they are still using the internal EDA tools.

嗨，下午好。我想問另一個關於英特爾和三星的問題。但從另一個角度來看，我的意思是，儘管所有的頭條新聞都不是那麼積極，但我們知道這兩個客戶將磨損您的市場份額，歷史上的代表性有點不足，但很大程度上是因為他們仍在使用內部EDA 工具。

So I mean, given all the challenges, those two customers seems to be facing, although it doesn't sound like you're seeing any immediate changes. Is it possible that it can be a net positive for you guys? And if there is more dependence of those two customers on the commercial EDA tools, meaning more of the EDA development work being outsourced to the merchant EDA companies like Cadence I want to get some thoughts and what could be, let's say, an inflection point for that to happen if it happens? Thanks.

所以我的意思是，考慮到所有的挑戰，這兩個客戶似乎都面臨著，儘管聽起來你並沒有看到任何立即的變化。這對你們來說有可能是正面的嗎？如果這兩個客戶對商業 EDA 工具有更多的依賴，意味著更多的 EDA 開發工作被外包給像 Cadence 這樣的商業 EDA 公司，我想得到一些想法，以及什麼可能是，比如說，一個拐點如果發生的話會發生什麼事？謝謝。

Yeah. Hi, Charles, that's a great observation. I mean, as you know, we are very strong in the -- historically strong over the last five, 10 years in the TSMC ecosystem with partnership with TSMC and ARM and historically not as strong with Samsung and Intel. Though, I think that is beginning to change, especially last year and this year.

是的。嗨，查爾斯，這是一個很好的觀察。我的意思是，正如您所知，我們在過去五年、十年中在台積電生態系統中非常強大，與台積電和 ARM 合作，但在歷史上與三星和英特爾的合作並不那麼強大。不過，我認為這種情況正在開始改變，尤其是去年和今年。

And to me, there's always every company goes through ups and downs, as you know. And whenever -- I mean, both Intel and Samsung are great companies. And when they're going through more challenges, typically is more opportunities for us. We always lead with products. We believe we have the best solution.

對我來說，如你所知，每家公司都會經歷起起落落。我的意思是，無論何時，英特爾和三星都是偉大的公司。當他們經歷更多挑戰時，通常對我們來說就是更多機會。我們始終以產品引領。我們相信我們有最好的解決方案。

So -- and we are seeing that. We saw with Intel, we mentioned our IP partnership, also the strength of our new hardware platforms across we are working with both these companies on our new systems and then AI-enabled software. So typically, these things will take time. So -- but in general, whenever there is a competitive situation with some of these big customers, typically, we have done well historically in those situations.

所以——我們正在看到這一點。我們看到了與英特爾的合作，我們提到了我們的智慧財產權合作夥伴關係，以及我們新硬體平台的實力，我們正在與這兩家公司合作開發我們的新系統，然後是支援人工智慧的軟體。通常，這些事情需要時間。所以，但總的來說，每當與其中一些大客戶出現競爭情況時，通常我們在這些情況下都會做得很好。

Got it. Thanks. Maybe the other question I want to ask is hopefully, you can clarify because it has been the news that Cadence maybe acquiring Altera or maybe looking to acquire Altera Engineering Systems, and if you provide some comments here.

知道了。謝謝。也許我想問的另一個問題是希望您能澄清一下，因為有消息稱Cadence可能收購Altera或可能希望收購Altera Engineering Systems，如果您在這裡提供一些評論。

Well, Yeah. I mean, as you know, we don't comment on specific rumors, but I mean, as we have said before, I mean, we are very pleased with our strategy. We are very pleased that most of our growth is organic and sometimes we do some small tuck-in M&A, and that strategy has not changed, okay? So that's our plan going forward, and we are pretty happy with how we are positioned.

嗯，是的。我的意思是，如您所知，我們不會對具體謠言發表評論，但我的意思是，正如我們之前所說，我的意思是，我們對我們的策略非常滿意。我們很高興我們的大部分成長都是有機的，有時我們會進行一些小型的併購，而且這項策略沒有改變，好嗎？這就是我們未來的計劃，我們對我們的定位非常滿意。

Thanks so much Anirudh.

非常感謝阿尼魯德。

Jay Vleeschhouwer, Griffin Securities.

Jay Vleeschhouwer，格里芬證券。

Thank you. Good evening. Anirudh, you may recall that on the conference call a quarter ago, you spoke about various AI ML use cases that you're beginning to see -- and then separately, we also talked about how you might, over time, change your product packaging for different use cases or end markets.

謝謝。晚安. Anirudh，您可能還記得，在一個季度前的電話會議上，您談到了您開始看到的各種 AI ML 用例，然後我們還分別討論了隨著時間的推移，您可能如何改變您的產品包裝針對不同的用例或終端市場。

Maybe we can bring those two things together. And the question is do you see a likelihood of -- for AI ML applications, more and more vertical domain-specific packaging. I know you've got the branded apps right now. you're obviously selling into different verticals. But would you foresee taking any of those technologies and making them specifically packaged to specific end markets?

也許我們可以把這兩件事結合起來。問題是，對於 AI ML 應用程序，您是否認為有可能出現越來越多的垂直領域特定包裝。我知道您現在已經擁有品牌應用程式。顯然你正在向不同的垂直領域銷售。但您是否會預見採用這些技術中的任何一種並將其專門包裝到特定的終端市場？

And also before I get to my follow-up, could you also talk a little bit about your AI ML development road map. You've had customers speak at Cadence live about what they're looking for from you in that respect? And maybe you could talk about improvements you're going to be making in things like capacity, memory footprint, scenario proliferation, and so on and so forth. Then I'll ask my follow-up.

在我進行後續討論之前，您能否也談談您的 AI ML 開發路線圖。您是否曾讓客戶在 Cadence 現場談論他們在這方面對您的期望？也許您可以談論您將在容量、記憶體佔用、場景擴散等方面進行的改進。然後我會問我的後續。

Yeah. Jay, that's all great observations. I mean, we have, of course, one of the highest investments in R&D, and we are very pleased with our kind of road map for AI and AI products. But we will enroll that over time, right?

是的。傑伊，這些都是很棒的觀察。我的意思是，我們當然是研發投資最高的國家之一，我們對人工智慧和人工智慧產品的路線圖感到非常滿意。但隨著時間的推移我們會註冊它，對吧？

As you know, it's kind of -- I don't want to preannounce anything here. But overall, I think we are investing heavily. And as AI itself gets more powerful, the three-layered cake that I always talk about the AI orchestration of the top, the middle layer of principal simulation and optimization and the bottom layer, like I mentioned earlier, with CPU, GPU, and custom silicon.

如你所知，我不想在這裡預先宣布任何事情。但總的來說，我認為我們正在大力投資。隨著人工智慧本身變得越來越強大，我總是談論人工智慧編排的三層蛋糕，頂層，中間層主要模擬和優化，底層，就像我之前提到的，有CPU，GPU和客製化矽。

So we are investing in all these three areas. And it may make sense for some verticalization like we did for Millennium, right? That is a vertical targeted at a particular vertical with aerospace and automotive. But overall, we are pretty pleased with that. And like we -- I also believe that -- I mean, AI itself is a very big topic, but there are two parts of it.

所以我們正在這三個領域進行投資。這對於一些垂直化來說可能是有意義的，就像我們在千禧年所做的那樣，對吧？這是一個針對航空航太和汽車產業特定垂直領域的垂直領域。但總的來說，我們對此非常滿意。就像我們一樣——我也相信——我的意思是，人工智慧本身是一個非常大的主題，但它有兩個部分。

The initial phase is horizontal. And we are also -- we have a lot of horizontal technologies. But over time, I think the AI monetization will have to be more and more vertical. And I've talked about this publicly, the three phases of AI. So we are right now in what I would call infrastructure AI, starting with data centers and then going into edge devices like laptops and phones and even in data centers, we have more vertical solutions now with thermal management and things like that.

初始階段是水平的。我們還有很多橫向技術。但隨著時間的推移，我認為人工智慧貨幣化必須越來越垂直。我已經公開談論過人工智慧的三個階段。因此，我們現在處於我所說的基礎設施人工智慧領域，從資料中心開始，然後進入筆記型電腦和手機等邊緣設備，甚至在資料中心，我們現在擁有更多具有熱管理等功能的垂直解決方案。

But that's the horizon 1, which is in infrastructure AI. Horizon 2 in my mind is physical AI, things like self-driving, drones, robots. And even though the auto market is weak right now, but in terms of design, it's not weak, okay? As you see a lot of the reporting on semiconductor autos is weak.

但這是第一視野，即基礎設施人工智慧。我心目中的地平線 2 是實體人工智慧，像是自動駕駛、無人機、機器人。儘管現在汽車市場很弱，但在設計方面，它並不弱，好嗎？正如您所看到的，許多有關半導體汽車的報告都很薄弱。

But in terms of design activity, there's a lot of design activity for what is there to come. And this is what I saw a few years ago in data center as we are seeing in automotive. And a lot of the chips that are required for automotive are very similar to what are required for drones and robots, okay? So to me, that's like the second phase of AI, which is physical AI.

但就設計活動而言，未來還有很多設計活動。這就是我幾年前在資料中心看到的情況，就像我們在汽車產業看到的那樣。汽車所需的許多晶片與無人機和機器人所需的晶片非常相似，好嗎？所以對我來說，這就像是人工智慧的第二階段，也就是物理人工智慧。

And then the third phase of AI, which is Horizon 3, which is further out from the physical AI is what I would call sciences AI, and the biggest application will be life sciences, okay? And that's why the investment in open AI two years ago.

然後人工智慧的第三階段，地平線3，離物理人工智慧更遠，我稱之為科學人工智慧，最大的應用將是生命科學，好嗎？這就是兩年前投資開放人工智慧的原因。

So that's how we look at it. Infrastructure AI, followed by physical AI, followed by Sciences AI, and we will have of course, horizontal solutions because our business is fundamentally horizontal for multiple end markets. But as these markets evolve, we will also have some vertical solutions that are tuned to especially these mega trends of infrastructure, Physical AI, and Sciences AI.

這就是我們的看法。基礎設施人工智慧，其次是實體人工智慧，然後是科學人工智慧，我們當然會有橫向解決方案，因為我們的業務基本上是針對多個終端市場的橫向業務。但隨著這些市場的發展，我們也將推出一些垂直解決方案，特別是針對基礎設施、實體人工智慧和科學人工智慧的大趨勢。

Okay. Sorry about that. So, you noted the strength in SD&A generally including some upside for the first full quarter with BETA CAE. But from a larger perspective, the fact is since you did your first acquisition for the ISD strategy, you've done seven or eight acquisitions over $2.1 billion of cumulative value. But you're still very much the challenger in that market with a fraction of market share relative to the market leaders.

好的。對此感到抱歉。因此，您注意到 SD&A 的優勢通常包括 BETA CAE 在第一個完整季度的一些優勢。但從更大的角度來看，事實是，自從您為 ISD 策略進行第一次收購以來，您已經進行了七到八次收購，累計價值超過 21 億美元。但您仍然是該市場的挑戰者，相對於市場領導者而言，您的市佔率只佔一小部分。

So maybe you could talk about how you're thinking about more tightly coupling across the various applications you have in CFD and SD&A and talk about how you're thinking about ramping up in go-to-market, especially, which is also something that I think you need to do to supplement what you've done on the code acquisition side?

因此，也許您可以談談您如何考慮在 CFD 和 SD&A 中的各種應用程式之間進行更緊密的耦合，並談談您如何考慮如何加快上市速度，特別是，這也是我認為你需要做一些補充你在程式碼取得方面所做的工作？

Yeah, Jay, that's a great observation. So first of all, especially like we mentioned earlier, with the BETA acquisition, and which is doing pretty well, we feel that our portfolio is fairly complete, okay? So whether it is electromagnetics or thermal and now with CFD and then structural.

是的，傑伊，這是一個很好的觀察。首先，特別是像我們之前提到的那樣，透過 BETA 收購，而且做得很好，我們覺得我們的投資組合相當完整，好嗎？無論是電磁學還是熱學，現在都是 CFD，然後是結構學。

So -- and the key thing that I watch and you can see in our results is the growth rate, okay, not just how complete the portfolio is, but how well it's performing in the market. And we are pretty pleased to see that the growth rate is good and I believe, much better than the overall market.

因此，我觀察到的關鍵問題是成長率，你可以在我們的結果中看到，好吧，不僅僅是投資組合的完整性，還有它在市場上的表現如何。我們很高興看到成長率很好，我相信，比整體市場好得多。

And part of it is now that one part is, of course, the products have to be good, and I believe our products are best-in-class, whether it's clarity for is routinely like 5x to 10x faster, Celsius, only unique solution that can do thermal both finite element and CFD for 3D IC and general applications with BETA or with Millennium, but also go-to-market.

當然，現在的一部分是，產品必須很好，我相信我們的產品是一流的，無論是清晰度通常快 5 倍到 10 倍，還是攝氏溫度，只有獨特的解決方案可以使用BETA 或Millennium 對3D IC和一般應用進行有限元素和CFD 熱分析，而且還可以上市。

So I think we have highlighted before and especially this quarter, it really went into full effect is we want to go to market in three big ways. So one way is direct, right, which is Cadence trend, working with the top customers. Our history, especially in EDA is, of course, working directly with the world's best companies. So we are doing that in SD&A as well, and that's where we were focused last few years was -- and we still are with the top companies but we need to augment that with two other parts of the strategy, which the other system design companies do anyway.

因此，我認為我們之前已經強調過，尤其是本季度，我們希望以三大方式進入市場，這確實充分發揮了作用。所以一種方式是直接的，對的，這就是Cadence的趨勢，與頂級客戶合作。當然，我們的歷史，尤其是 EDA 領域，是與世界上最好的公司直接合作的。因此，我們也在 SD&A 中這樣做，這就是我們過去幾年關注的重點 - 我們仍然與頂級公司合作，但我們需要透過策略的其他兩個部分來增強這一點，其他系統設計公司無論如何都要做。

So the second part, apart from direct channel is what we would call indirect channel, through channel partners. And then the third part of go-to-market is e-commerce and cloud offerings, okay? So I think at this point, especially in Q3, I feel that we are hitting our stride in this go-to-market. And for example, this -- apart from the top customers where we go direct, with a channel partner or indirect channel, we have now more than 100 partners, which is a significant increase from earlier.

因此，第二部分，除了直接管道之外，就是我們所說的間接管道，也就是透過通路夥伴。然後進入市場的第三部分是電子商務和雲端產品，好嗎？因此，我認為在這一點上，特別是在第三季度，我覺得我們在上市方面正在取得進展。舉個例子，除了我們直接、透過通路合作夥伴或間接管道接觸的頂級客戶之外，我們現在有超過 100 個合作夥伴，這比之前有了顯著的成長。

And also OnCloud itself, which is the e-commerce direct channel, we have tens of thousands of users. And what we are also doing is we are a -- all our channel partners are also going to market through OnCloud. So whether the customer directly buys through e-commerce, or is in a traditional way, all the data is captured in this online platform, so which is great for cross-selling. It's great for lead generation.

還有OnCloud本身，這是電子商務直接管道，我們有數萬名用戶。我們還在做的是，我們所有的通路合作夥伴也將透過 OnCloud 進行行銷。因此，無論客戶是透過電子商務直接購買，還是以傳統方式購買，所有數據都在這個線上平台中捕獲，因此這非常有利於交叉銷售。這對於潛在客戶開發非常有用。

So I really feel that we'll see how it progresses in the future, but especially this year, we are go-to-market has improved now that our products are in good shape. We need to focus on go-to-market, especially indirect channel, and direct customer sales.

所以我真的覺得我們會看到它在未來的進展，但特別是今年，我們的產品狀況良好，我們的市場推廣已經有所改善。我們需要專注於進入市場，特別是間接通路和直接客戶銷售。

And if I could add to that as well, Jay, it's way more than just BETA. I mean, BETA is fantastic in that we're getting more pull-through revenue, especially in automotive as a result of BETA rounding out our multiphysics platform. But we're also getting strong momentum in A&D. Do you want to talk more about the A&D?

如果我也可以補充一點，傑伊，這不僅僅是測試版。我的意思是，BETA 非常棒，因為我們獲得了更多的拉動收入，尤其是在汽車領域，因為 BETA 完善了我們的多物理場平台。但我們在航空與航太領域也取得了強勁的發展動能。您想多談談 A&D 嗎？

Yeah, absolutely. I mean A&D, like we highlighted this time I mean not just the traditional -- see, what is exciting about A&D to me is not just the traditional dips like Northrop Grumman, which we have a long history of working with both on the silicon side and the system side. But also, we are now directly working with like we highlighted the US Air Force and US Army.

是的，絕對是。我的意思是A&D，就像我們這次強調的那樣，我的意思不僅僅是傳統——看，A&D 對我來說令人興奮的不僅僅是像諾斯羅普·格魯曼這樣的傳統技術，我們在矽方面有著悠久的合作歷史和系統端。而且，我們現在正在直接與我們強調的美國空軍和美國陸軍合作。

So -- and in terms of SD&A, there's three big markets. There's the traditional markets of high-tech or electronics. Anyway, that's we are traditionally strong in. And the two other markets are aerospace and automotive. So apart from BETA helping us in automotive, I think Aerospace, our own history with Northrop and other and the strength of our portfolio. So we feel that we are well positioned in these three big markets.

因此，就 SD&A 而言，有三大市場。有高科技或電子產品的傳統市場。無論如何，這是我們傳統上的強項。因此，除了 BETA 在汽車領域幫助我們之外，我還認為航空航太、我們與諾斯羅普等公司的歷史以及我們產品組合的優勢。所以我們覺得我們在這三大市場處於有利地位。

Great. Thanks very much.

偉大的。非常感謝。

Vivek Arya, Bank of America Securities.

Vivek Arya，美國銀行證券公司。

Thanks for taking my question. So Anirudh, despite all the secular drivers, the stock has underperformed this year because of revenue lumpiness and we have seen the core EDA growth slip below 10%. And I know you're not guiding to '25, but do you think investors should be prepared for a smoother year? Or are there other lumpy effects in IT or hardware or anything else that we should keep in mind.

感謝您提出我的問題。因此，Anirudh，儘管有所有長期驅動因素，但由於收入不穩定，該股今年表現不佳，而且我們看到核心 EDA 增長下滑至 10% 以下。我知道您不是在指導 25 年，但您認為投資者應該為更順利的一年做好準備嗎？或者 IT 或硬體或其他方面是否還有其他我們應該記住的不穩定影響。

And if I had to try to quantify it, if I look at this $1.3 billion kind of exiting run rate from Q4, is this sort of the trend line for next year? Just how would you suggest investors get a handle for 2025 because I think this lumpiness has really impacted the stock this year.

如果我必須嘗試量化它，如果我看看第四季 13 億美元的退出運行率，這是明年的趨勢線嗎？您建議投資者如何應對 2025 年，因為我認為這種波動性確實影響了今年的股票。

Yeah, Vivek, all I would say is that, I mean, first two quarters were not -- were atypical for Cadence. We have highlighted before like Q1 and Q2 because of certain kind of onetime things. But I do believe Q3 is more back to normal, but John can comment more.

是的，Vivek，我想說的是，我的意思是，前兩個季度對於 Cadence 來說並不是典型的。由於某些一次性的事情，我們之前已經強調過 Q1 和 Q2。但我確實相信第三季已經恢復正常，但約翰可以發表更多評論。

No, I agree. I certainly Q3 feels like our back to normal quarter. I think Q4 has a lot of upfront revenue in -- unusual again in terms of Q4 and we've got that massive pipeline that we have to convert. We have a lot of work to do there before we can talk about 2025. But when I look at 2025, I kind of view Q3 as a more normal quarter for Cadence.

不，我同意。我當然感覺第三季我們回到了正常季度。我認為第四季有大量的前期收入——就第四季而言，這又不尋常，我們有大量的管道需要轉換。在我們談論 2025 年之前，我們還有很多工作要做。

Okay. And for my follow-up, I saw in the CFO commentary that you have something now called core EDA, You've always given the different segment sales, but if I'm not mistaken, you took SDA out and you have something called core EDA, I'm curious why you chose to do that? And do you have system design and analysis kind of growth CAGR in mind beyond just a generic kind of double digit. What is the organic growth rate that you think your SDA business can achieve over the next number of years?

好的。對於我的後續行動，我在CFO 評論中看到，現在有一種稱為核心EDA 的東西，您總是給出不同的細分市場銷售額，但如果我沒記錯的話，您去掉了SDA，而且有一種稱為核心的東西EDA，我很好奇你為什麼選擇這樣做？您是否考慮到系統設計和分析中複合年增長率的成長，而不僅僅是一般的兩位數成長。您認為您的 SDA 業務在未來幾年可以實現的有機成長率是多少？

And I say of asking about '25 again, nice try. Look, when we talk about core EDA, we were talking about, basically, you have core EDA software and you have the like functional verification group and hardware on. We talk about core EDA, we talk about those three groups combined.

我說再次詢問'25'，很好的嘗試。看，當我們談論核心 EDA 時，我們基本上談論的是核心 EDA 軟體，以及類似的功能驗證群組和硬體。我們談論核心 EDA，我們談論這三組的組合。

The system design and analysis we typically talk about separately. And then, of course, we have the IP business. The IP business and systems in analysis business are growing really, really strongly right now. But the launch of the new hardware products has resulted in functional verification growing really strongly.

我們通常單獨談論系統設計和分析。當然，我們還有智慧財產權業務。 IP 業務和分析業務中的系統現在正在非常非常強勁地成長。但新硬體產品的推出導致功能驗證真正強勁成長。

But often when hardware is bundled alongside core EDA software that there's an allocation methodology to apply value between the software and the hardware. So often internally, we look at core EDA, the three of them combined.

但通常當硬體與核心 EDA 軟體捆綁在一起時，就會有一種分配方法來在軟體和硬體之間應用價值。在內部，我們經常關注核心 EDA，將它們三者結合起來。

If you look at core EDA software, by the end of the year, we're on track to achieve double-digit revenue growth on a three-year CAGR basis, which is the way we track things. But on the functional verification side of things. It would be -- it looks like it's on track for like high-teen growth on a three-year CAGR basis, like mid- to high-teen growth. But IP, again, looks very, very strong and SD&A is the strongest of all. And I think it's all those things that Anirudh just spoke to.

如果你看看核心 EDA 軟體，到今年年底，我們預計在三年複合年增長率的基礎上實現兩位數的收入成長，這就是我們追蹤事物的方式。但在功能驗證方面。看起來，在三年複合年增長率的基礎上，它有望實現高青少年成長，就像中青少年成長一樣。但 IP 看起來非常非常強大，而 SD&A 是其中最強的。我認為這就是阿尼魯德剛才談到的所有這些事情。

Thank you.

謝謝。

Clarke Jeffries, Piper Sandler.

克拉克·傑弗里斯，派珀·桑德勒。

Hello, thank you for taking the question. I wanted to more focus on fiscal '24 with my questioning around specifically what happened in the quarter versus the full year guide? I mean, there was great momentum in the IP business, 59% growth. I was wondering what -- if you could level set what you're expecting in terms of Q4 IP contribution? I know last quarter, we talked a lot about IP and systems leading upfront revenue in the second half and verification maybe being in the high single digits. Is that still fair or true?

您好，感謝您提出問題。我想更多地關注 24 財年，並詢問本季與全年指南相比具體發生了什麼？我的意思是，IP 業務勢頭強勁，成長了 59%。我想知道您是否可以設定您對第四季知識產權貢獻的期望？我知道上個季度，我們談了很多關於下半年前期收入領先的智慧財產權和系統，而驗證可能會達到高個位數。這仍然公平或真實嗎？

Just to the broader question of tightened the full year range, but a beat on Q3, what was happening behind the scenes that revenue landed differently than expected? And then one follow-up.

只是對於收緊全年範圍這一更廣泛的問題，但第三季度的表現有所好轉，收入下降與預期不同的幕後發生了什麼？然後是一個後續行動。

Yeah. Sure, Clarke. I don't think revenue landed differently to -- I mean basically, we were prudent with our guide in Q3, and it's -- we feel our team always does his best business when they're not chasing. And I think we were rewarded for that with Q3 business. But similarly, we're being prudent for Q4. IP has great momentum. I expect that momentum to carry on into the fourth quarter as well as SD&A. I think all businesses are performing really, really well now. Anything to add there, Anirudh?

是的。當然，克拉克。我認為收入的下降與——我的意思是基本上，我們對第三季度的指南持謹慎態度，而且——我們覺得我們的團隊在不追逐的時候總是做最好的生意。我認為我們在第三季的業務中得到了回報。但同樣，我們對第四季持謹慎態度。 IP勢頭強勁。我預計這種勢頭將持續到第四季以及 SD&A。我認為現在所有企業的表現都非常非常好。阿尼魯德，還有什麼要補充的嗎？

Yeah. Just some more comments on the IP business. I mean, of course, Q3 is strong, and we expect good growth in Q4. But like any business, we look at it over multiple quarters and multiple years, right? So if you look at IP on a two-year CAGR, I think it's, I would say, in which is still good. But Q3, I mean, there's a focus on what each quarter separately. But the key thing in IP growing at, let's say, 30% on a two-year CAGR basis, I think we are doing -- finally, we are in a very good position in IP. This is the way I see.

是的。只是對知識產權業務的更多評論。我的意思是，當然，第三季很強勁，我們預計第四季會有良好的成長。但就像任何企業一樣，我們會透過多個季度和多年來審視它，對嗎？因此，如果你以兩年的複合年增長率來看待智慧財產權，我認為，我想說，這仍然是好的。但第三季度，我的意思是，每季分別關注什麼。但智慧財產權的關鍵在於，以兩年複合年增長率為基礎，我認為我們正在以 30% 的速度成長——最終，我們在智慧財產權方面處於非常有利的地位。我是這樣看的。

I mean EDA, we have done historically very well. We are well recognized as the leader in EDA. But if you look back like last three years, we have not done as well in IP as we could have. But I finally feel that now our IP business is in its strongest position it has been, okay?

我的意思是 EDA，我們在歷史上做得非常好。我們被公認為 EDA 領域的領導者。但如果你回顧過去三年，我們在智慧財產權方面的表現並沒有達到我們應有的水準。但我終於感覺到，現在我們的智慧財產權業務正處於有史以來最強勁的位置，好嗎？

And there's multiple reasons for that. I mean one key reason is that we always focused on advanced node, especially with our leading kind of TSMC advanced node. And now at 3-nanometer, 5-nanometer or PPA is finally industry-leading in the IPs we deliver. And they are for these kind of enterprise application. And that whole area is taking off. So I think that's the first main reason.

這有多種原因。我的意思是，一個關鍵原因是我們始終專注於先進節點，尤其是我們領先的台積電先進節點。現在，在 3 奈米、5 奈米或 PPA 領域，我們提供的 IP 終於處於行業領先地位。它們適用於此類企業應用程式。整個地區正在起飛。所以我認為這是第一個主要原因。

The second reason is that we are now working with other foundries like we have highlighted and there is more and more IP development needed for kind of onshoring or trench-shoring activities throughout the world.

第二個原因是，我們現在正在與其他代工廠合作，就像我們強調的那樣，世界各地的外包或溝渠外包活動需要越來越多的智慧財產權開發。

And then the third reason is disaggregation. There's 3D IC even not just in HPC but now in laptops and automotive, this aggregation trend and need for IP like UCIE and all the other memory interface IPs. So I do feel that -- we have a good portfolio and IP group is in a very good position, not just for Q3, but on a multiple year CAGR basis.

第三個原因是分解。 3D IC 不僅出現在 HPC 中，現在也出現在筆記型電腦和汽車中，這種聚合趨勢以及對 UCIE 等 IP 和所有其他記憶體介面 IP 的需求。因此，我確實認為，我們擁有良好的產品組合，並且知識產權集團處於非常有利的位置，不僅在第三季度，而且在多年複合年增長率的基礎上。

Perfect. And just to clarify or follow-up on that. Just -- I think the number one question we're going to get from investors are there going to be remaining execution thresholds with some of the IP business you had anticipated in the second half. Does more of that come in Q4? Or did some of it land in Q3?

完美的。只是為了澄清或跟進這一點。只是——我認為我們將從投資者那裡得到的第一個問題是，您在下半年預計的一些智慧財產權業務是否仍存在執行門檻。第四季會出現更多這樣的情況嗎？或者其中一些落在了第三季？

And then just final point around margin outperformance. How would you attribute the margin outperformance that happened in the quarter, certainly, IP revenue may benefit the sort of optics of incremental margin, but anything to call out in terms of maybe how OpEx discipline came in compared to your expectations?

最後一點是利潤率表現優異。您如何看待本季利潤率的優異表現，當然，IP 收入可能有利於增量利潤率，但與您的預期相比，營運支出紀律可能如何出現，有什麼值得指出的嗎？

Yeah. Sure, Clarke. Again, more great questions. The -- I mean on the IP side, I think we -- like I said, we've got great momentum there. You're probably referring to the -- we did a large contract at the start of the year with milestones that were in the second half of the year and some of those kicked in, of course, in Q3 and triggered revenue. There are more that will trigger revenue in Q4, but that's a multiyear contract that will -- that momentum should continue on into next year.

是的。當然，克拉克。再次，更多好問題。我的意思是在智慧財產權方面，我認為我們——就像我說的那樣，我們在那裡擁有巨大的動力。您可能指的是——我們在今年年初簽訂了一份大型合同，並在下半年實現了里程碑，其中一些在第三季度開始生效並引發了收入。還有更多將在第四季度帶來收入，但這是一份多年期合同，這種勢頭應該會持續到明年。

And then on the margin side, I mean, Cadence is -- I mean it's a tremendous business. I mean, the core EDA business is a great foundation for margins and profitable sustainable revenue business that -- and growth we scale really well.

然後在利潤方面，我的意思是，Cadence 是——我的意思是這是一項巨大的業務。我的意思是，核心 EDA 業務是利潤率和盈利的可持續收入業務的良好基礎，而且我們的成長規模非常好。

As we grow in these other areas, a lot of the growth just slows down. Nice to hear you talking about incremental margin. Typically, a lot of that revenue growth just flows into operating margin. And you can see when the growth comes through, the impact it has on operating margin is incredible.

當我們在其他領域發展時，許多成長速度都會放緩。很高興聽到您談論增量保證金。通常情況下，收入成長的大部分只是流入營業利潤率。您可以看到，當成長實現時，它對營業利潤率的影響是令人難以置信的。

Thank you very much.

非常感謝。

Harlan Sur. JP Morgan.

哈蘭蘇爾。摩根大通。

Good afternoon. Thanks for taking my question. Your inventories are up 70% sequentially, that's an all-time high. I think it's implying a very strong demand profile and backlog for your new Z3 and X3 hardware systems. Is demand exceeding your near-term supply and manufacturing capabilities? In other words, is the Q4 shipment profile for your hardware system supply or manufacturing constraint? I'm just trying to get a sense on how many quarters, the strong upgrade cycle can extend into next year?

午安.感謝您提出我的問題。您的庫存比上一季增加了 70%，這是歷史最高水準。我認為這意味著您的新 Z3 和 X3 硬體系統的需求狀況和積壓情況非常強勁。需求是否超出了您近期的供應和製造能力？換句話說，第四季度的出貨情況是否受到您的硬體系統供應或製造的限制？我只是想了解強勁的升級週期可以延續到明年幾季？

Yes. Harlan, the demand is very strong for our hardware. But in terms of inventory growth, that's really come as a result of us buying -- doing a multiyear contract with a key supplier. We mentioned that on last quarter's call, that's also impacting our operating cash this year, but it was in and around the kind of low to mid $100 million kind of level in terms of purchases for hardware inventory for the next three years.

是的。 Harlan，我們的硬體需求非常強勁。但就庫存成長而言，這實際上是我們購買的結果——與主要供應商簽訂了多年合約。我們在上個季度的電話會議上提到，這也影響了我們今年的營運現金，但就未來三年的硬體庫存採購而言，這一水準大約在 1 億美元左右。

Perfect. Okay. Thank you for that. And then back to the China business. So as you think about 2025 and anniversary in a more normalized business environment for your China business this year. There's a lot of puts and takes where you've got the hardware upgrade cycle, you've got the potential direct or indirect headwinds from maybe more US regulatory actions. You've got the macro environment, which in extreme cases, maybe does impact your design activity.

完美的。好的。謝謝你。然後回到中國業務。因此，當您考慮 2025 年以及今年您的中國業務在更正常化的商業環境中的周年紀念日時。硬體升級週期中有很多變化，美國監管行動可能會帶來潛在的直接或間接阻力。您擁有宏觀環境，在極端情況下，這可能確實會影響您的設計活動。

So kind of a lot of moving pieces, right, but I think that the best leading indicator over the next few quarters on growth is design starts and planned design starts, right? So Anirudh you track design starts in China you track some of the upcoming programs. How does the design activity funnel look? Is it increasing? Is it staying flat?

有很多變化，對吧，但我認為未來幾季成長的最佳領先指標是設計開始和計劃設計開始，對吧？ Anirudh，你追蹤中國的設計開始，你追蹤一些即將推出的專案。設計活動漏斗看起來如何？有增加嗎？是否保持平坦？

And then when you overlay your hardware upgrade cycle on top of this, what's the early sort of qualitative view on China as you look into next year, would you expect continued acceleration in year-over-year comps?

然後，當您將硬體升級週期疊加在此之上時，當您展望明年時，對中國的早期定性看法是什麼，您是否預計同比比較會持續加速？

Harlan, that's a good question for me. First, overall, and then specifically on China. I mean, like we mentioned that China has improved last two quarters. I mean it's difficult to forecast that into next year. But I do think that there is improvement in China overall and -- and also, now with our more richer portfolio is also especially with the auto sector.

哈倫，這對我來說是個好問題。首先是總體情況，然後是具體針對中國。我的意思是，就像我們提到的，中國在過去兩個季度都取得了進步。我的意思是很難預測明年的情況。但我確實認為中國整體上有所改善，而且，現在我們的投資組合更加豐富，尤其是在汽車行業。

I mean what is interesting to me is, for China, we have luxury of like in China and other parts work on multiple end markets and we participate in all the markets that the customers are designing chips for. But what is interesting to see -- for me to see in China is how well they're doing in automotive and almost all of those major auto companies are also now designing chips. I mean this is well known now. And so we are glad to work with them both on the SD&A, but also the EDA side with the silicon part.

我的意思是，對我來說有趣的是，對於中國來說，我們擁有像中國一樣的奢侈品，其他零件在多個終端市場上工作，我們參與客戶為其設計晶片的所有市場。但有趣的是，對我來說，中國在汽車領域的表現非常出色，幾乎所有主要汽車公司現在也都在設計晶片。我的意思是這現在已經眾所周知了。因此，我們很高興在 SD&A 以及晶片部分的 EDA 方面與他們合作。

So I think we just have to see how it progresses into '25. But overall, I think the design activity is strong in China and elsewhere, especially driven by this AI super cycle and amount of activity we are seeing with the hyperscalers, both in China and of course, in the US and the demand of AI for next several years. So we'll see. We'll continue to monitor that.

所以我認為我們只需要看看 25 年它會如何發展。但總體而言，我認為中國和其他地方的設計活動很強勁，尤其是受到人工智慧超級週期以及我們在中國和美國看到的超大規模活動的推動，以及人工智慧對未來的需求幾年。所以我們拭目以待。我們將繼續關注這一情況。

Yeah. And Harlan. Although, I mean, obviously, we can't predict what 2025 is going to bring, we did go back and back test the last 25 years. It's only the third year that we've seen a down year in China revenue on a dollar basis. And we've never seen two down years in a row. .

是的。還有哈倫。我的意思是，顯然我們無法預測 2025 年會發生什麼，但我們確實對過去 25 年進行了回溯測試。以美元計算，中國收入連續第三年出現下滑。我們從未見過連續兩年下滑的情況。 。

And I'm pleased to see that Q2 was stronger than Q1 this year. Q3 is stronger than Q2 this year. Pipeline looks strong. Anecdotally, from the team out in China, they're seeing a lot of design activity strength out there. So we wouldn't expect a second down year based on that history, but it's just very hard to predict '25.

我很高興看到今年第二季強於第一季。今年第三季強於第二季。管道看起來很堅固。有趣的是，從中國的團隊來看，他們看到了許多設計活動的實力。因此，根據這段歷史，我們預計不會出現第二年的下滑，但很難預測 25 年。

No, I appreciate that. Thank you for the insight.

不，我很欣賞這一點。感謝您的見解。

Ruben Roy, Stifel.

魯本·羅伊，斯蒂菲爾。

Thank you. John, I wanted to ask a quick question, returning to the bookings pipeline and the strength there, great to hear that. But I know you said it was broad-based. Just wondering if we could drill into the hardware part of it, just a little bit more. I think historically, you've said that hardware visibility is a little limited relative to the rest of your business. I'm just wondering given that you have this new ramp, has that changed at all? Is your visibility on kind of hardware bookings extending at this point? Or is it kind of similar to the previous systems?

謝謝。約翰，我想問一個簡單的問題，回到預訂管道和那裡的實力，很高興聽到這個消息。但我知道你說過這是基礎廣泛的。只是想知道我們是否可以深入研究它的硬體部分，再多一點。我認為從歷史上看，您曾說過，相對於您的其他業務，硬體可見性有點有限。我只是想知道既然你們有了這個新坡道，情況有沒有改變？此時您對硬體預約的了解程度是否有延長？或者說它和以前的系統有點相似？

No, typically you've got like two.

不，通常你有兩個。

Yeah. Great question. I mean, typically, on the hardware side, you've kind of got a two-quarter view of the pipeline. Opportunities tend to turn up in the pipeline about two quarters at most in advance of when the customer plans to put the hardware into production. Because often it's based on design projects that customers are starting, and then they might need a hardware emulation system for that project. and they know the project will be like this quarter or next quarter.

是的。很好的問題。我的意思是，通常在硬體方面，您可以看到管道的四分之二的視圖。機會往往會在客戶計劃將硬體投入生產之前最多提前兩個季度出現。因為通常它是基於客戶正在啟動的設計項目，然後他們可能需要該項目的硬體模擬系統。他們知道該項目將在本季或下季進行。

But -- so typically, we have kind of a six-month view. Now at this time of the year, six months view is tremendous because there's a lot that happens in Q4 every year. Q4 is always a strong bookings quarter for us. By the time, we obviously with a strong pipeline and everything, we've got to convert a bunch of that, but you have a great history of converting that. But we'd like you to just let us convert that now in Q4, and we'll come back to you as soon as we close Q4 and give you an outlook on '25.

但是——通常，我們有六個月的觀點。現在每年的這個時候，六個月的前景是巨大的，因為每年第四季都會發生很多事情。第四季對我們來說始終是一個強勁的預訂季度。到那時，我們顯然擁有強大的管道和一切，我們必須轉換其中的一些內容，但是您在轉換這些內容方面擁有悠久的歷史。但我們希望您讓我們在第四季度進行轉換，我們會在第四季度結束後立即回覆您，並為您提供 25 年的展望。

Understood. Thanks John and then a quick one, I hope for Anirudh. Just kind of thinking through what you said on some of the new AI kind of areas that you're working on, you mentioned NVIDIA and NIM NeMo and I think your competitors talked a little bit about that. I imagine you would characterize that as a later phase AI revenue opportunity, but just wondering if you could maybe talk through how we should think about timing of when we might see some of those types of products at the market. And Also, you said that you're building custom applications. Are you getting inbound requests from customers like hyperscalers or otherwise for that type of AI feature set?

明白了。謝謝約翰，然後快速說一句，我希望阿尼魯德也能做到。想想您在您正在研究的一些新的人工智慧領域所說的內容，您提到了 NVIDIA 和 NIM NeMo，我認為您的競爭對手也對此進行了一些討論。我想您會將其描述為後期人工智慧收入機會，但只是想知道您是否可以談談我們應該如何考慮何時在市場上看到其中一些類型的產品。另外，您說您正在建立自訂應用程式。您是否收到來自超大規模客戶或其他此類人工智慧功能集的入站請求？

Well, one thing I would like to highlight is that is our JedAI platform. So it's an enterprise data and AI platform. And the way we go to market with that and it supports like multiple GenAI solution. So we become almost like LLM agnostic. We can plug in different -- and different customers will want like different kind of engines in there.

嗯，我想強調的一件事是我們的 JedAI 平台。所以它是一個企業數據和人工智慧平台。我們進入市場的方式以及它支援多種 GenAI 解決方案。所以我們幾乎變得對法學碩士不可知論。我們可以插入不同的——不同的客戶會想要不同類型的引擎。

But it becomes like a main deployment vehicles and it works with all our tools and all our major five AI platform. So we give that flexibility to us, depending on which -- some customers may want different kind of AI solutions there.

但它變得像一個主要的部署工具，它與我們所有的工具和我們所有主要的五個人工智慧平台一起工作。因此，我們給予我們這種靈活性，這取決於某些客戶可能需要不同類型的人工智慧解決方案。

And then that platform can also be used to customized, not just our solutions, but any customer-specific solutions can be deployed through JedAI and JedAI also works both on the cloud and on-prem because some customers, some really big customers don't want the AI to go to the cloud.

然後該平台還可以用於定制，不僅僅是我們的解決方案，而是任何特定於客戶的解決方案都可以透過JedAI 進行部署，並且JedAI 也可以在雲端和本地運行，因為有些客戶，一些真正的大客戶不這樣做希望AI上雲。

So in that case, we have it on-prem. So I think JedAI and we have worked on this JedAI for several years, gives a unique position to Cadence to deploy these AI solutions and multiple kind of LLMs and ways to go to market.

因此，在這種情況下，我們將其部署在本地。因此，我認為 JedAI 和我們在這個 JedAI 上工作了幾年，為 Cadence 提供了獨特的地位來部署這些 AI 解決方案和多種 LLM 以及進入市場的方式。

Thank you.

謝謝。

Siti Panigrahi, Mizuho.

西蒂·帕尼格拉希，瑞穗。

Thanks for squeezing me in. And Anirudh, it's good to be on the call, it just initiated coverage. So I want to keep it at a high level and really just for the interest of time, one question here. When I look at your three years revenue CAGR trend, it has been accelerating from single digit to now mid-teens.

謝謝你讓我參與進來。所以我想將其保持在高水平，並且實際上只是為了時間的利益，這裡有一個問題。當我觀察你們三年的收入複合年增長率趨勢時，它已經從個位數加速到現在的十幾歲左右。

And Anirudh, you talked about so many growth drivers and even products, new products coming to market. I'm wondering how would you rank order this growth opportunity and product when you think about the growth in the foreseeable future? And what gives you that confidence to sustain this kind of double-digit revenue growth?

Anirudh，您談到如此多的成長動力，甚至是即將上市的產品、新產品。我想知道，當您考慮可預見的未來成長時，您會如何排列這個成長機會和產品？是什麼讓您有信心維持這兩位數的營收成長？

Well, thank you for the question. And also thank you for initiating coverage. I mean, as we have said before, I think one thing I just want to highlight is we are always looking at revenue growth, which has improved, like you mentioned, through a lot of these systemic drivers, but always at the same time, profitability, which has also improved and continues to improve every year.

嗯，謝謝你的提問。也感謝您發起報道。我的意思是，正如我們之前所說，我想我想強調的一件事是，我們始終關注收入成長，正如您所提到的，透過許多系統性驅動因素，收入成長有所改善，但總是同時，獲利能力也有所改善，且逐年持續改善。

So -- and put that together, that, of course, delivers results to our shareholders. And even in Q3, right, not only we did better on revenue but also on profitability. So I think there are a lot of driver, a lot of them driven by AI and then AI moving to the edge and our move into doing better in new areas like SD&A, but also IP. Like I mentioned, I'm optimistic about our IP business going forward. But at the same time, we put a focus on profitability. So we will continue to manage that going forward.

所以，把這些放在一起，當然可以為我們的股東帶來成果。即使在第三季度，我們不僅在收入方面做得更好，而且在獲利能力方面也做得更好。所以我認為有很多驅動因素，其中很多是由人工智慧驅動的，然後人工智慧轉向邊緣，我們在 SD&A 和智慧財產權等新領域做得更好。正如我所提到的，我對我們知識產權業務的未來發展持樂觀態度。但同時，我們也關注獲利能力。因此，我們將繼續管理這一點。

Great. Thank you.

偉大的。謝謝。

Joshua Tilton, Wolfe Research.

約書亞‧蒂爾頓，沃爾夫研究中心。

Hey guys, thanks for thanks for squeezing mine in. I want to start with a bit of a nuanced question, although I think it is important. John, you talked to how previously you have seen down years in China, but you've never seen two down years in a row. And I guess you mentioned your data driven, you looked at the historical numbers. But can you give us any sense of what helps to drive the recovery a year after you had a down year?

嘿夥計們，謝謝你們抽出我的時間。約翰，您談到以前在中國經歷了多年的衰退，但您從未經歷過連續兩年的衰退。我猜你提到了數據驅動，你查看了歷史數據。但您能否告訴我們，在經歷了低迷的一年之後，什麼有助於推動經濟復甦？

And what I'm trying to get at is, do I have to believe in some type of bigger hardware demand or more upfront contribution or something along the lines of things that may not be recurring? Or is it just more a function of we had a weak year and there was a return to normal demand environment going forward?

我想要表達的是，我是否必須相信某種更大的硬體需求或更多的前期貢獻或類似可能不會重複發生的事情？或者這更多是我們經歷了疲軟的一年而未來需求環境恢復正常的結果？

I guess, I'm just trying to understand outside of history, what is similar this year versus the previous years where you've seen down years and why you don't expect to once again not see two down years and up.

我想，我只是想了解歷史之外的情況，今年與前幾年有什麼相似之處，你已經看到了下降的年份，以及為什麼你不希望再次看到兩年的下降和上升。

Yeah. Okay, thanks for the opportunity to provide a little bit more color. We -- we look back over the last 25 years, and we've seen like tremendous momentum and design activity amongst our customer base, a growing customer base across China. There were only two previous years before this year where we saw a downtick in China revenue on a year-over-year basis. 2008, I know 2008 as somebody syncratic qualities to it. But 2008 also a year that we changed from an upfront revenue model to a ratable revenue model. And I think that's why it took a couple of years to get back to a new high in China.

是的。好的，感謝您有機會提供更多的色彩。回顧過去 25 年，我們看到了我們的客戶群的巨大動力和設計活動，以及中國各地不斷增長的客戶群。在今年之前，我們僅在前兩年看到中國收入年減。 2008年，我知道2008年是個與它融為一體的年份。但2008年也是我們從前期收入模式轉變為可評估收入模式的一年。我認為這就是為什麼中國花了幾年時間才回到新高的原因。

But then since then, it's only 2021. 2021 dipped -- China revenue dipped from 2020, but it recovered to a new high in 2022. Now incidentally, that was -- we launched new hardware systems. And we do find that there is a correlation between hardware revenue and China revenue. Hardware revenue tends to pull through more China revenue for us on the software side.

但從那以後，就只有2021年了。我們確實發現硬體收入和中國收入之間存在相關性。在軟體方面，硬體收入往往會為我們帶來更多的中國收入。

And I think we're seeing a little bit of that this year in that the new hardware that's been launched is selling more and being delivered more outside of China. I would expect more of that to go to China next year, and it will help improve our software revenue.

我認為今年我們已經看到了一些這樣的情況，即已推出的新硬體在中國境外的銷量和交付量都在增加。我預計明年會有更多的產品流向中國，這將有助於提高我們的軟體收入。

Also, if you look at this year, China dipped in Q1, but it's been recovering since Q2 has been higher, Q3 has been higher. And like I said, as hardware recovers out there, I think it will pull through more software revenue.

另外，如果你看看今年，中國在第一季有所下滑，但自從第二季更高、第三季更高以來，它一直在復蘇。正如我所說，隨著硬體的恢復，我認為它將帶來更多的軟體收入。

Super helpful. And then just maybe one very quick follow-up. Any updates on what you guys are -- or just in general, what the contribution from BETA was in the quarter and if you're still on track or expecting $40 million for the full year or if we should expect more from your original?

超有幫助。然後也許只是一個非常快速的後續行動。關於你們的最新情況——或者一般來說，BETA 在本季度的貢獻是多少，你們是否仍在正軌上或預計全年收入4000 萬美元，或者我們是否應該對你們的原始收入抱有更多期望？

The -- so we're seeing a big contribution with BETA when you include the pull-through revenue that we're getting across for all our automotive customers as a result of selling traditional Cadence technology alongside BETA. But we're -- but it's a small tuck-in. We're not guiding BETA separately.

因此，當您將我們透過將傳統 Cadence 技術與 BETA 一起銷售而為所有汽車客戶帶來的拉動收入算在內時，我們看到 BETA 做出了巨大貢獻。但我們——但這只是一個小小的縮排。我們不會單獨指導BETA。

Got it. Super helpful guys. Thank you so much for choosing me.

知道了。超樂於助人的傢伙。非常感謝您選擇我。

Thank you.

謝謝。

I will now turn it back to Anirudh Devgan for closing remarks.

現在我將把它轉回給阿尼魯德·德夫甘 (Anirudh Devgan) 作結束語。

Thank you all for joining us this afternoon. It's an exciting time for Cadence with strong business momentum and growing opportunities with semiconductor and system customers. We launched the Fem.ai initiative and committed to an initial investment of $20 million to lead the gender equity revolution in the AI workspace. This has also led through our Cadence giving foundation.

感謝大家今天下午加入我們。對於 Cadence 來說，這是一個令人興奮的時刻，其業務勢頭強勁，半導體和系統客戶的機會不斷增長。我們發起了 Fem.ai 計劃，並承諾初始投資 2000 萬美元，以引領 AI 工作空間中的性別平等革命。這也透過我們的 Cadence 捐贈基金會得到了體現。

With a world-class employee base, we continue delivering to our innovative road map and working hard to delight our customers and partners. On behalf of our Board of Directors, we thank our customers, partners and investors for their continued trust and confidence in Cadence.

憑藉世界一流的員工基礎，我們繼續實現我們的創新路線圖，並努力讓我們的客戶和合作夥伴滿意。我們謹代表董事會感謝客戶、合作夥伴和投資者對 Cadence 的持續信任和信心。

Thank you for participating in today's Cadence third quarter 2024 earnings conference call. This concludes today's call. You may now disconnect.

感謝您參加今天的 Cadence 2024 年第三季財報電話會議。今天的電話會議到此結束。您現在可以斷開連線。