The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst
: The first one is on DSO.ai. Aart, I'm just curious, can we get a little bit more color on maybe how this is priced on a per seat basis and whether is it
only available to those customers that are on the Fusion Compiler platform? Or is it also available elsewhere?
Aart J. de Geus - Synopsys, Inc. - Co-Founder, Chairman & Co-CEO
Well, it's a bit of a complicated question because we are in the first wave of making this successful. And suddenly, we have built one of its capabilities
on Fusion Compiler. And since we have pretty much all of the advanced customers using Fusion Compiler, we have plenty of opportunity to
continue with that. And there's a lot of runway in terms of what we can accomplish.
What I did not mention is that DSO.ai is actually a capability that can also be applied in other domains. And over time, we will use some of that
technology and the ability to design better silicon technologies, for example, or in the verification space. So there are many directions that we can
take with that. And we are strongly engaged now with some of the most advanced design teams in the world. And maybe the only comment I
want to make right now on pricing and so on is that it has already helped us see some growth in renewals. And that is really the direction that we
count on for technology that truly has a big impact with our customers.
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AUGUST 18, 2021 / 9:00PM, SNPS.OQ - Q3 2021 Synopsys Inc Earnings Call
Question: Gal Munda - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: The first one is just I'd like to go back on the full year guidance upgrade. I'm just kind of thinking about to make sure it's clear. It's not just that you
were surprised by the amount of hardware orders that you're seeing in Q4. It's the mix of all different business segments that allowed you to raise
the guidance by $145 million at the midpoint. Is that correct?
Question: Gal Munda - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. Awesome. And then just as a follow-up to that. It's a big revenue number to raise with 1 quarter to go. But at the same time, when I look at
the operating cash flow raised again, it's just as impressive. I think it implies more than 50% incremental operating cash margin to that revenue
base. So can you just talk to me how much of that is kind of sustainable when you look at the operating cash flow incrementals versus any one-offs
that kind of play and potentially help you this year a little bit because of the fact that it's a lot higher to do it than the overall operating cash flow
margin that you've been generating recently?
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