But if you look over 3 years, it’s mid-teens. And if you look over 3 years for our revenue CAGR, that’s mid-teens to €˜22, and we are guiding to mid-teens for €˜23. So, I think you can take out some of the noise by looking over a 3-year kind of average period.
Joe Vruwink: Okay. That’s helpful. And then I guess I will stay on the topic of AI. And obviously, Cadence is already using a lot of reinforcement learning and design flow and verification. I guess any thoughts on kind of the recent attention around large language models. You have started to see, I think some tinkering with like RTL code generation or maybe within certain aspects of verification. Does this maybe supplement what you are already doing, or does it have the potential to bring about entirely new products?
Anirudh Devgan: Yes. Good point. I mean one thing to mention is, we always look at all the kind of AI technologies. We have a pretty talented team. And like I mentioned, for us, the biggest application is simulation plus optimization, because you can generate much better results for the customers. So, we are using reinforcement learning and all kinds of other kind of ML techniques for a while now. And to give you an example, like some of the results we are seeing, the PPA can be improved by 10% to 15%, okay. That’s a lot of improvement. And typically, you see this improvement from €“ going from one node to the next, okay, spending billions of dollars, okay. You can get that from better kind of AI algorithms. Now, some of the language models, there could be other applications, especially with the interface of our tools for customer support.
There could be applications. But the main customer-facing applications are when we give better results, better productivity, which we are already doing in multiple ways, as I mentioned, and we will continue to look at all possible ways to improve that.
Joe Vruwink: Okay. Great. Thank you very much.
Anirudh Devgan: Yes.
Operator: Our next question comes from Vivek Arya from Bank of America Securities. Please go ahead. Your line is open.
Vivek Arya: Thanks for taking my question. Anirudh, when I look at the relative growth in your different segments, the System Design and Analysis seems to be the fastest-growing segment, obviously, off a lower base over the last 5 years. What do you think has driven that outperformance? And as you get bigger in that market, does the competitive landscape change? Can you continue to outgrow the market, or just how do you think about that particular aspect of your growth drivers?
Anirudh Devgan: Yes. Hi Vivek. I just want to pointed out first that all businesses are doing great. If you look at even our analog business, that’s grew 13%, okay. That was used to be a stable business a few years ago, okay. Digital business, 17%, okay. These are very remarkable numbers, okay. Verification business, 28%, okay. So, I mean just to put that in context to what was happening in EDA and chip design like 5 years ago to now, I mean this is a remarkable growth in our business, and at the same time, very good profitability. We have more than 40% operating margin. So, I think we focus on growth and profitability. And to come to your question on systems, I mean that had a very strong year with 27% growth. And that’s because our products are just better.
