Synopsys, Inc. (NASDAQ:SNPS) Q3 2023 Earnings Conference Call August 16, 2023 5:00 PM ET

Company Participants

Trey Campbell - SVP & IR

Aart de Geus - Chairman & CEO

Sassine Ghazi - President & COO

Shelagh Glaser - CFO

Conference Call Participants

Jason Celino - KeyBanc Capital Markets

Gary Mobley - Wells Fargo

Joshua Tilton - Wolfe Research

Joseph Vruwink - Robert W. Baird

Vivek Arya - BofA Securities

Ruben Roy - Stifel

Jay Vleeschhouwer - Griffin Securities

Charles Shi - Needham & Company

Gianmarco Conti - Deutsche Bank

Blair Abernethy - Rosenblatt

Operator

Ladies and gentlemen, welcome to the Synopsys Earnings Conference Call for the Third Quarter of Fiscal year 2023. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Today’s call will last 1 hour. And as a reminder, today’s call is being recorded.

At this time, I would like to turn the conference over to Trey Campbell, Senior Vice President, Investor Relations. Please go ahead, sir.

Trey Campbell

Thanks, Lisa. Good afternoon, everyone. With us today are Aart De Geus, Chair and CEO of Synopsys; Sassine Ghazi, President and COO; and Shelagh Glaser, CFO.

Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts, targets and other forward-looking statements regarding the company and its financial results. While these statements represent our best current judgment about future results and performance as of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect. In addition to any risks that we highlight during this call, important factors that may affect our future results are described in our most recent SEC reports and today's earnings press release.

In addition, we will refer to certain non-GAAP financial measures during the discussion. Reconciliations to their most directly comparable GAAP financial measures and supplemental financial information can be found in the earnings press release, financial supplement and 8-K that we released earlier today. All of these items, plus the most recent investor presentation are available on our website at www.synopsys.com. In addition, the prepared remarks will be posted on our website at the conclusion of the call.

With that, I'll turn the call over to Aart.

Aart de Geus

Good afternoon. We delivered outstanding results in the third quarter, exceeding the midpoint of all our guidance targets, while reaching another quarterly revenue record. Revenue of $1.487 billion was in the high end of our guidance with non-GAAP operating margin at 35.3%. GAAP earnings per share was $2.17, while non-GAAP earnings per share was above our target range at $2.88. We generated $560 million of operating cash flow, ended Q3 with a backlog of $7.1 billion.