Autodesk (ADSK) 25 Aug 202021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Autodesk Second Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please Instructions]. [Operator hand to Investor your I would today, conference to like VP, now speaker the Abhey Relations. Lamba, ahead, go Please sir.

operator. quarter of joining year XXXX. you discuss Thanks, results fiscal afternoon. call the second conference to for our of good And our Thank

On is webcast. our Andrew CEO, our Scott Herren, via the Today's broadcast conference live line CFO. call Anagnost, and is being

at replay of the autodesk.com/investor. available a be addition, In will call

opening commentary can and today's You the transcript following website release, earnings our presentation slide on this find press Relations Investor of call.

differ about SEC we our our During assumptions, and results outlook, business of refer or on differ and materially. results this in resulting the filings factors. including developments could related and risks cause judgment COVID our best from course impact may Please in call, make on forward-looking and for may known factors reflect actual forward-looking important statements the that events currently statements. other our pandemic strategies. the our to based those operations to and statements These Actual our future results

Forward-looking current this is call disclaims or call made after are statements update forward-looking during reviewed presented the any or contain or call accurate today, to information information. may replayed obligation today. of not made the during any statements. as the If being Autodesk revise

to the investor a relations numeric would now, or reconciled comparison. the And growth or release our slide year-on-year today's Andrew. quote like call the presentation of I are changes discuss number represents in on And call over we in noted, otherwise unless referenced to turn numbers website. performance. will each press our non-GAAP we During financial the such call, All a as reference

to I Thank hope safe continues healthy To the you, start, as impacted by COVID our world everyone be pandemic. and Abhey. is

well-being employees, the Our safety of and communities. the continued priorities customers, partners and support our remain of and our

as for us execution their earnings cash our efforts I The results quarter, our solid revenue, for, in continue these the The we QX as we times. uncertain challenging cloud-based flow adoption that preparing all and strong times. investing and our have of and market. are of above into to dive resiliency excited helped I operate during we such deliver thank been secular are in free and accelerating Before persistence employees and position of with expectations, even the in model about the trends business solutions,

results. the just beginning trends, few While on to from investments years our are our driving already competitors last similar positive focus are

in model value continue the to discuss, made, changes be aspects of I'll will pandemic. other significant we we and With Because this business this, deliver other the a side we of on have functionality the and stronger cloud. few

across levels. pre-COVID most the July. in to above Europe, In recovery we some uptick Americas, we key not indicated we usage experienced slight usage areas well. of are In see usage products could we closely historically. As continue the our monitor globe, last In we seeing patterns Korea, China, do continue something on to for in a as the call, products the a and Japan, of

and subsequent trends employees business translate will We in are improved us new the between changing, business performance, also to is that cloud correlation new gives users Usage doubling our see by usage shoots seeing senses, usage performance confidence a we In workflows collaboration remotely. with tool, Revit green positive and are in and all businesses work allowing and which quarters. when working of year. thrive our collaboration adoption effectively products connect their has the BIM almost cloud XXX Design, partners the to past in accelerated even project teams

becoming The XXX. best value additions with more in net gain is manufacturing apparent more XX,XXX with and momentum quarter We ever more in quarter. cloud-based Fusion necessity. cloud solutions than to a are becoming subscription had We for the the also of and the continued

subscription improved recognize to their value offerings throughout critical the businesses. bring rates our Our as renewal customers QX steadily product

Our the second combined our in us of business execution year, current with targets. new was full-year half impacted entering make our strength pipeline by recovering countries, the the environment, confident the but in of

Now, I'd you insights to growth details quarterly like I Scott through the and of it drivers. to our turn to our come to over strategic back performance before for guidance provide take year into

Thanks, Andrew.

As in economic we growth currency, with the XX% in growing through performance XX% expanding RPO, offering of revenue Current which XX the points. margin X healthy at Total reflects next headwinds delivered we revenue subscription COVID, had heard, from metrics operating across the all despite in quarter and the the at reported, Despite is you plan facing free came strong just percentage by constant total for quarter. is revenue as XX% $XX up committed up RPO and million. terms by quarter, flow extended XX%. XX% key payment months, cash

are sales the saw we strong quarter. through results double-digit channel the yielding growth billings Our during online ongoing in as digital investments

Our in came new family, quarter online of in attract to Autodesk customers the three four helping e-commerce. sales through new customers out nearly are the as

Our XXX% the run retention out quarter, in slowed was XXX% the net closing rate we transactions our business within previous In modestly. came pace range rate of larger revenue our to guidance. while in the QX, strong during laid

last improved customer strategic of is the renewal transition renewal the a into rates, us, maintenance our model the our Andrew stickiness business of Digging behind to end renewal since With product to subscription and rates experienced expected, of to sequential our of model. mentioned, of X% is strong in a customers for only saw in nature new a about this in our rates quarter, of subscriptions. renewal our revenue. resilient subscription the endorsement products our Similar maintenance up renewal basis, rates, of life who announced deeper than XX% came converted as offerings. maintenance more we on maintenance base decline We As we business our quarter. which a

at maintenance industry revenue QX, XXXX. total of great we also success quarterly business. had with peak as the fiscal grow maintenance revenue, a new of QX sequentially speaks to collections combined to in with $XXX quarter MXS XX% is This saw Our the In revenue have share our program. this close we our million,

multi-year down toward slight deals, relatively While the payments quarter, the in saw way make multi-year end new region's performance long-term led customers in in multi-year second year-over-year, a to to continue the products. as payments uptick the strong share business. of we of APAC are consistent with commitments our

In quarter think the on was new we the impacted As be last declining most will with our in with our than the percent. second the second new quarter in by activity more impacted mid-teens QX, business range line commentary of we the pandemic. call, business anticipated,

Our impacted the pandemic earlier by is on. markets in business recovering that were the

but have UK However, some major markets of meaningful improvement. the are US show to yet like our and stabilized,

continue guidance. we midpoint a the revenue of raising such, As range wider-than-normal for with while our remainder year, the the of

of guidance in to all end the two updated improvement implies over continued closing Our next larger we improve. pace and transactions our quarters markets the of expect

impact and market. low with continued we At meaningful of we In of a the range, recovery in recovery the of QX. end anticipate in demand factors large third of our the improvement end range in of improvement which upper our the in modeling fourth slower forecast the the third the in are the our deal quarter, region quarter quarter. addition in largest environment the guidance end Americas, includes activity, At range, to the in varying degrees

We them very second renewal with our the pleased expect the of are the the subscription rates continue improving quarter product year. for performance in and of to rest

the that but expect base, maintenance total base. to we remaining ending recall of number small of stages installed final increase, offering is churn the and versus we maintenance further seats in the For are our our

retention the of year. to between remain We and expect our XXX% net revenue for the rate rest XXX%

end billings of upper the strategic approximately their trends the continuing is the we points should the priorities. view year, experienced of as by are the at our continued full-year which to keep the half expand of X impacting margin management, we taking end year. our percentage invest spend points a in strong Despite to for improving multi-year cautious operating while discipline percentage we Our exercising range of forecast around X.X second uptake quarter, in

Our expect XXXX $X.X for billings estimate to continue. free adjustment of billion does $X.X we collections flow fiscal affect cash our cash not strong as billion to

are XXXX now, to we of flow $X.X like billion. it cash in confident I'd And target free Andrew. our Finally, to fiscal turn back

the what accomplished Thank for you, we of proud team QX. am I Scott. in

customers significant amount enables our users to now a can remote administrators. model environment. of true With over in SaaS make a the we a have to and provider named We the work cloud. stages our investments deliver to made our we enhanced in last operate years efficiently move in delivering user, few everyone user becoming and the value our And of the capabilities final named and are a

of Our adopt off the this ahead consulting start, the and transition choosing some largest customers to firms of named engineering users a one the launch promising to Khatib in month. is to construction East, earlier and in ability with & the Alami, the named user continuity model transition business working only transition accelerate their out to thing from ensuring work not saw home to is from reached Middle its value early. while The home. to the it

their BIM During silos models breaking and from Civil Revit on XXX infrastructure seats teams their Design, different they building the and increased collaborate locations. enabling to of quarter, XD and

sign-on can converting our not During premium which without possible administrators. the launched users. subscription with named single administration, for also now quarter, product capabilities, advanced ease added and of usage We plan, security would offer been we have to everyone information

XX have customers the investment license of partnering to the our compelling will the to board a BIM. them the Autodesk long-time products continue and as even capability for to visibility. features and technology This of and cloud phase and journey and the AutoCAD now from as one make next the Diona headquartered to greater The innovating of deliver design and years, a was in to provider. solutions enable infrastructure technology engineering Australia. plan value valuable Diona, most to professional both been customers, in us engineering One leading Calibre solutions customers premium first their evolved single to Calibre practices sign-on has our have our built-environment true provider enabled with CAD our offer them to of drawing usage for are

convergence Now, and in digitization in manufacturing, let monetization – non-compliant users. key me and legacy update you on make three of growth our AEC, design initiatives of and accelerating

to continued resilient. has business AEC Our be

as works the increased their efficient shift in site layouts. Our processes, steps industry communication more additional oversight as through paradigms optimized products and such new and enable

the in we especially adoption technology We exit expect announced as we growing, to three continue to keep make investments where pandemic. investments. We recently construction notable

we month, for project overall increase to significant such productivity Pype, Autodesk allowing contractors, which Construction value as the throughout automate acquired subcontractors project reduce to and and and add Cloud closeouts general will workflows owners users, closed and First, this submittals lifecycle. risk

workforce offers solutions Bridgit Second, we for Bridgit. optimization made strategic also a investment in contractors.

our expanded modular existing is the Factory_OS. we Third, site, practices. our and of us Factory_OS thereby products advancing to support prefabrication, manufacturing, improve convergence helping and relationship with construction off construction

enhance to workflows project connected continue capabilities cost by improving tracking and cost management our functionality. We and

As activities targeted at reopen. started solutions you Sales but had large sites shut during to sites may a of number construction out quarter of the as down quarter. the began when construction we our improved recall, field started slowly, construction

this Glue, Saunders gains and quarter, signed XXX management construction been ENR a productivity Saunders BIM for with coordination our with positioned partnership previous This and their of their terms company the rework, Construction, During with top teams, enabled office and expand them. field document and enable and XXX our renewal excited centralize we services, general using BIM enterprise to and coordination deliver of the out connect and deployment successfully years. programs, Revit with the now build comprehensive their to support lifecycle. their agreement, management, field of construction products quality a Field cloud Navisworks execution, to safety in ongoing With we're continue us, minimize has expansion growing value their project Saunders citing our three-year they're contracting and dedicated reporting. success our across with in and provider for

immense found cloud-based New throughout Design largest Principal quarter to the adjusted is to over effectively of the success. York architecture offices projects also City, and in and in KPF, the strongly XXX KPF, collaboration critical investing BIM world, collaborating architects Brogan, remote design is contractors solutions said, work the global environment perform in to with "At value as one clients and BIM solutions. with its KPF, capabilities. Our firms James our and at teams all XXX continued

continue world-class Autodesk and clients." with data in become efficiently outcomes in such, our value XXX deliver partnership provide space. with to business, our more make As for enabling the BIM infrastructure customers global to use Revit, fundamental have of across particular, us and the our manage in We conjunction teams and to design to progress

their the renewed file-based digitize largest token agreement, and data-driven one the traditional displacing and leveraging quarter, move firms with design, US workflows leveraging or offering customer competition. in Autodesk. the EBA business company the expanded EBA, cloud is infrastructure design This of During to and the to enterprise the

With the large in coordination. multiple in managing quantity information, the collaboration, common ever-growing project customer need for models takeoffs. as work teams design This and in for project customer as conditioning and to is and well Assemble and for stakeholders, added to PlanGrid remotely, this XXX Autodesk RFIs platform model BIM investing as data also submittals field, manage estimating the with

and gaining generative to earlier, traction mentioned with Fusion I As is continuing within design. manufacturing our accelerate portfolio

Switzerland, reduction alongside reduction and a their only capabilities can Their customers and of a to firmly with world. will needs the unique design we stay by Austin, designs has choice step QX, finish using in fully to for individual their also to optimize platform a PowerMill, to our them advanced efficiency us been manufacturing advanced competition. XXX analysis, platform. these Fusion to ahead launch our start from the as manufacturing of also their workflows created the be a most and space, subscriptions partner as weight where Fusion advanced to under on in dental PowerInspect about This in Fusion at part the economical FeatureCAM. Biocare process our generative a of that our step TX, Leveraging collaboration their a Design in correlates automated quarter, applications next-generation Nobel In software is Make as tools allows and from Autodesk PowerShape, we receive implants Nobel technologies lightweighting first interest Aerospace, and and them because launch rocket Firefly single see also Biocare platform. and realized and opportunities which restorations included our prosthetics, Fusion already built over PowerMill, production Firefly and further. used competitors high restoration designers XXX the single manufacturing cost, and produce design-to-make and not establish we Fusion Today, This that to to as the from with offering existing generative announced is thought machining new of of software over in design thinking market. designed design. for one their cloud Firefly manufacturing between a XXX The bring and use implant advanced how generative has company custom, based individualized provided design, natural core allows in cloud-based enable multiple the software. solutions multiple-unit leader progression to to is but dental in market Autodesk XXX manufacturing of of XXX from FeatureCAM completely workflows team tools. manufactured key with existing uniting can complements of for using Headquartered long-standing vision vehicle our power they become will all seamless the toward gains restorations, committed orders This It the engineers, CAD/CAM-based technology. a a PowerShape, design Autodesk design patients. entirety signed manufactures deal meeting Autodesk's In is Nobel and and Biocare, of using and and also directly dental custom spacecraft

product need to the of We vendor building the building preferred model. within who design information context are manufacturers the for

and new largest maximize transforming to the across improving of their enterprise signed a uncertain the efficiencies amid the manufacturer looking help entire ecosystem. Autodesk support we manufacturers North America. one and Inventor, products Autodesk focus exterior quarter, to construction. Revit agreement and climate, of them with BIM business on construction industrialized investing building digitally the with processes as are and They XXX, such is Even by innovation US-based to solutions, in During an business partnering strategically

a is building our The manufacturer happening and to to connection deep enable at connection displaced competitor make due of convergence design BIM. win. deep us will and also BIM local in to manufacturing to our France a We product in

Moving transformation our on progress to users. non-compliant digital updates and on monetizing

our are the ability convert in to confident We opportunity. long-term

We more of ways. However, to in the pre-COVID the than current deals against in competitor. switch firm but during on short their lower-cost engineers where China, In design-build to closed decided customer architecture term, were able few three $X continue away we returned the cost to the of environment quarter, the solutions non-compliant of the closing, be In and use we closed term. our quarters respectful has paying to the Autodesk we a we due with APAC from A for continued back and levels. our local, a provide. each users the based in make business reasonable long necessary importance are mindful stronger with functionality. deal in users the region software based solely working to million a building a Also savings, activity QX, value to them AutoCAD on ago, convert to

are head and a our to and multiple fiscal competition critical cloud-based we like make our will start XXXX drivers that capabilities collaboration and invest over confident continue cloud strategic We have computing in beyond. targets us our initiatives. in in There

and support is as paradigms companies current in accelerate to First, construction. in more industrial digitization years make processes for going only coming efficient, to resilient new to seek AEC not the but

years resilient and of few more demand. emerging adaptable customer the to both manufacturing not and is and entire company. in third, the but leading than revenue will questions. our margin we do needs and a to will that future, solution with of cloud-based shape And allow model eye so is going address also business cloud-based an next workflow This us in the for distributed significantly up operator, multi-tenant network that, we'd invest evolution the industry's call to over the robust, open more like the Second, to accelerate to history to the now With only the to growth. have

Instructions]. [Operator you. Thank

Kalia Our first Barclays. Saket from question with comes

just you a maybe duration for this on for what about in you. Can terms of Scott, customer you're in talk saw but think can seeing remarks, you're of different you preferences billings Hey, as talk that contracts? touched You you prepared about rest bit on little top and what duration the end the to the year we of about for how that quarter planning contract this guide? change just the

You're into particular, the on quarter, an saw we end didn't it We toughest at in that quarter guide, quarter each be would then, that. in we previous multi-year see stretch, impact, spot see the we saw month quarter. seen throughout modestly we very the on. felt although as would impact but floor improving and the we've on, QX. didn't multi-year, an And came fall went through the And And we said it it rate year. QX earlier down thought when did we coming And gave of the we buying the of customers the the of quarter. any that – by the

exactly our of markets, the in end. And and end of second And the I hit a think, versus half what of of with described the we that's to it, quarter. the did end So, that the improved a had the would a throughout the ranges, remember, seeing assumed bit multi-year the in low take markets. in rolled some high of what detail guidance but quite in But and out when we guidance recovery we year. we're all at that high the said, take not swift then us range

is the by slower recovery really less about our the multi-year in US So, billings adjustment talked the and opening the driven and expectation as of sales commentary. we guide slightly on in a UK,

I little for was blog a the under little industry. maintenance subscription which prepared the by I guess it, actually a the bit of architectural sort interesting ago Maybe versus And about customers disconnected of – you the zero paying a less to for posted the remarks from an results AEC Autodesk spent way, want just up. couple you, follow that old be of part the A model model. bit. Andrew, perpetual time, one you idea But weeks on my your – in in lot may in

the you address little that AEC I a expand maybe potentially whether Autodesk money is so, wondering if could bit. leaving just the on And was actually in on industry. And table

be those expressed to for why proving to audiences. empathetic other were won't audience me as Thanks concerns of some that this as

about and take targeting Revit an functionality from industry, investment, the acknowledge hasn't let particular. first component, of legitimate communications it's a gone structural One, the And have concerns with have architects something standpoint, gotten off, is, the the revenue – incredibly the the architectural the a Revit. engineering seriously. we So, about is workflows, to just AEC in me investments lot in to in particular. incremental AEC lot the gone that of enhancements construction, they And fact those workflow

there's concerns real So, there. some legitimate

they The a they named from These move clients want they've model, prices cloud They would to the multi-user pay users. other We are per and per a have is which pay a up. to them use prefer multi-user want seen use really licensing. to model. drift have large multiuser concern

everything. five-year under a roughly even over So, moving that deliberate old same on we're Autodesk these five frankly, with. relative base. would you base page they the of come expenditures I that XX% said, add they was perpetual privileged, from seats, subscription out make actually – rest And are from a transition, acknowledge. that the paying maintenance model. sure to But even said, as those are our than years, really less was they the we another of want have up deep multiuser go in the part as some this like at to prices clear, things to And all And their that protections, if okay, it and period, make I have you over look of important price moved a and the just highly to that pretty customers subscription

would If on you period. for these actually maintenance of that have in lock. Alright? add not We We're we end front paying were period out going to they for that. And what over five-year early up price about time, of maintenance a about that. users over concerned exactly and less something It take Lots adding customers of us as paid you with subscription that they has and, frankly, us. were XX-year was of up out a in care they We wasn't went resulted that yes, all right. users over add all of debates did this. But program XX-year we it it the behind. you were think very

never of model. now. equation. So, on there. But of It's our But, base, concern the the a But about same that in we're part There'll to audience be old is about less remember, protected less the going pay this than XX% worried subscription no page with particular over bit not shrinking this they that. used perpetual true. to the we're that later. than they There's time, be

with next Griffin comes from Jay Our question Securities. Vleeschhouwer

rearchitecting one, product or of an about three, in of underlying Two, now, three platform. work. in your that it calling a intersection model. number And Number be you've model consumption the information is or collections to inevitabilities Andrew, the you're The called cloud. underlying going one, eventualities whatever business. Question what are your doing you rearchitecting then,

either of those you and portfolio, be of you it to forth, not feasible the might of all things, able to new having terms in market user to or configurations but for desirable to And additional terms re-segment bring would perhaps of some where so, have how number you pre-transition you go flavors, in perhaps so were would feasibly SKUs dozens connecting that be back on named architecture, based or forth. new to the collections, so of opportunity standalone the to have and

question. talk about is, follow-up two account, capacity about of territory how margins? question of each segments could your terms territory. the the whether the meeting and/or doing you breakdown back-end those there mid those the of in strategic and and about performance you're analyst you The in plain of sales vanilla anything and months customer At four So, thinking named talked the as remainder year markets, consisting ago, you're Thanks. for

method. to then back is to their But it All going entry subscription a to hand but that of that, being a asked let a and Fusion the a The day there. to to to that Fusion and we're out do of they're right? constructed. Jay, first has the me to respects, use a way, to kind on you this complicated, right? There's Right? Scott. that and set to way So, going model using sophisticated I'm segmentation summarize and reach architected I greater of functionality that part of access that work, second very need-based a I'm price. take keep the but people is in there's of frequently some part day So, series going of want lot modules pointing they question can you a

them from they it subscription, advanced might pay use need platform built it's on we for capability. it's for of be the functionality that. as a a previously model need this on having in added manufacturing, more those need word, of and cloud; built they able media, you to baseline And the media better model cloud Fusion, going noticed some of They'll built for portfolio. a, a information as as need Okay? pull that's, they in vertical it. to with a associated the Delcam in model they'll the and technology a they be just in model will in building They pay that be things per the to AEC, was and in cloud; This on lack product information instance, things the in recently information various of the

an in they collections is that of all segmentation to cloud. when as-needed high in increase without to and SKUs? the get what used respects, it functionalities that but the That's cloud can Maybe portfolio about think of ensure of need it, a once. an that if they get So, value, you having use designed on it of some in is notion basis. our occasionally at it's can collection they It's the do

that So, what we're at of ultimately. doing connected. when where our all you all captures really customers, Fusion, model it's directionally is And with look going the for

of right. necessary in their use, that in connected the the named doesn't track and specifically. come you named future of occasionally, large consumption but because That usage And name the a user, again back to to you. architecture right user, needs do to. products. something You're per that them and can off and pay so users user something the we're pool have you going can't Named which it's that mean that's is of terms provide people their that also the be Scott, to to want underlying to

strong let with And let tends commentary. start question to good your kind Jay, smaller me touched customer – first. what accounts. through so me can instead went customer result. We up. qualitatively opening where saw from that If see It the small set. And we've we quite bottom by territory the through. in of the if slicing – pandemic at slice it size, They by was strong. be strategic which actually this you the in went our APAC take more was we they seen quite territory, strength you of it on geo,

above as markets actually called China, we reopened, those Korea being levels. and out pre-COVID As Japan

in strength accounts good subsequently seeing in continental So, APAC good Europe. strength and then smaller in seeing and the

category. user that have sorry, in As our seems QX. mid-market named the and EBAs name, That's name, big where our a heavier of the or the to doesn't EBAs account your most the way all of in name up of half it sit. is to – And be where I'm second year. in sit That's you work

very got coming large a are actually we've of large EBA close XXX% renewal So, accounts, rate. full have renewals pipeline to EBAs And transactions, that those up.

there actually named during And have accounts. is we of tepid. had that QX a multi-user that the named. seen bit fine quarter, and multi-user big to quarter you've is, done little QX. And was a with for did beginning moving lot transition to mid-market. within And but mid-market usage we've one away the a So, the say offer, over named until active of what the more for not didn't I'd what offer named, two We from

impact kind little there's doing about business but all as beginning of transition the of those of by right of to their are customer also to had mid-market doing, the way, a the think That's pause wanting mid-market the us assessing bit size. named it of understanding in QX. by way we of program what the get at and needs, many their the that So, to launched to accounts,

Matt Hedberg Markets. from Capital The next RBC with comes question

alluded new bit if trended more progressed August in pipeline. earlier, talk has little mentioned I results the to multi-year I'm through maybe detail versus a Congrats in quarter? year? could business you I about wondering either that on strength guess, you the the renewal in the really good for your the Saket's have know you, last of how Scott, in answer to trends trends hear business. and maybe outside question of strengthened how And to Andrew

you that there? new what on gives wondering business Just side, confidence

start really I'll in is new that and saw color. and expectations you the our opened line jump Andrew, What in up. in some that, businesses add have more we were markets with in let those on what

When by think geo, rates the the Matt. geo, you struck slice by highest. look that pandemic Continental first the APAC So, at business Continental Europe. new were about it Europe, it way

the further down. more US I'd bump modest Next, And two like they've it they markets. by of way, and out feeling yet in declines. modest back say bump outside they're coming the UK, are Europe, of There's stable stabilized. those we both and see than Continental no up, the

followed business come rates the at what is, usage those their monitoring as world. we've back we we And see has time. been new usage of the and those same about see around new kind Andrew come rates the back, talked the markets usage trends. business the So, rates as reopen,

Andrew, So, right characterization overall to the add that's probably you'd it. that? anything for

ultimate be between it's fairly correlation and new The tight. usage business, rates then out proving to

as The we quite rising, kind the watched in it APAC. We We're correlating stability Europe. stability seem up. from that, the see we well. So, two UK. new going We to And in in the we of expect uptick see said expect moves go be to earlier, US seeing saw to that same we're seeing continue. that to we're and in Like business. it

and know you granularity I thus been XX% actually bit AutoCAD AutoCAD far. they And stress. been grew weaker you can AutoCAD LT, LT. And fairly a quarter. then, more talk about I for Wonder that I think in if had the has historically, strong times know, in of

is how in relatively LT this Wondering Just market. holding up

it end. the talk buying they The changes that LT But or coal point for about is the point. And at of to small for that are a dislocation businesses, need. attractive used We customers mine the what canary businesses. it everything. subscription price are subscription medium low very And does the market small, in very most price very as small

be to point has just People and the things AutoCAD And buy one actually they for proven of XD subscription buy the that. go to continue during this in LT the space. very resilient attractive time. model. that the associated and the with price and it's fundamental changes very APIs the the in So, But of

Brad Credit from comes question next Zelnick Our with Suisse.

out wanted X% I more. more and bit segment you'd in call all grew manufacturing anything as design convergence good pronounced of with Andrew, manufacturing? dig having a things quarter that the despite only there to make. this particular of impact a the The happening in Is into

Actually, space. the we're our biggest than growing in competitor faster

is So, we I that grow sure we year. strong Remember, to get just to want last make well. doing the Look, in. continued space

year into coming growth last strong good year. had next we So, and

year X% like So, last we're good not something or that. to year comparing last a a bad year, to year X%

on Fusion. metric think So, see around actually And the going that's for happy net an important regards and we're what us, especially to adds Fusion now. right we're you with performance with seeing I the

So, solid view this get only and to to it's a continue we going result, better. as

now. we're year. position think to right I good at Especially last in we're comparing a what So, when look from you

maybe in of you're does And ecommerce purchasing follow-up, talk in direct the longer in business customers channel? you this seeing about can are through term? strong you performance channel? thinking the this And just how about types the products fair. changes of Are That's any way change

business. doesn't to total trying It our We're still that strategy. of XX% get business online direct digital our that to fundamentally change up

to But incredibly strategy does strategy, trying But up up it customers XX%. to bit. we're And But what buying products are buy. The well to our we're have we get going additional All available They the everything right? changed. goal the change and the it want changed. our still our and do, little to mix on this product sell this continued fundamentally, hasn't we fundamental strategy during So, has, held fundamentally obviously, channel. channel. is on of strategy a hasn't where

question with Fargo. next Winslow Wells Our comes from Phil

of But some management Congrats Obviously, the AEC quarter. project if design seeing half? about Wondering AEC I uptake. again. you're how in into projects takes talked in the those just Thanks. on your at another comments, in wins are slow about you vertical the second go could positive we in XXX. in you or strong you as quarter. puts I and your just to beginning and thinking talk that look at starts of on mentioned the about focus the want if competitive the you

in think aren't. business zero things fairly and on that grew want the we the that total I things soft right? make to The sure All that we are just well. And

Let's talk construction. specifically about

field everything we and process, an the precursor with be expected, design construction said this it's doc, it's are in But BIM now, that that's and field upfront sites. to right, going we're where stabilizing the important is project is to loading given where of opening because area in As right I usage happened commentary, is the part the the see And expect And future which pipeline to the XXX of business, we flow. softness. and see up. seeing strength,

entire during Obviously, well. growth terms in this construction do well to doc general the segment in particular, XXX in in So, design, segment. BIM continues BIM period Revit in has seen this doing of robust

we really So, the we of depending what project or would if right and the bringing we because us, places field to was poured. all being wood is it's softness hammers make on which management, attention the And in project part the hitting in on execution focused now in are than – we be to problems where part, for building pipeline. sure want the or I not the being And the execution pay more the that the great is doing is are the the into concrete in deeper upfront certainly metal, side. were people you're narrowly we're hitting the

to design is robust from that action. and see planning, to We have a that through broad portfolio pre-construction goes the all way part continuing

from comes Koji Oppenheimer. Ikeda question next with Our

within Pype acquisition. quarter. technology heard the acquisition. workflows great potential Great overlap technology balancing the question with field. about that that question We've a on cloud. is any the against the Congrats Had really on in things it in cloud, construction will about the actually my other out Pype enhance really And construction the products and

guess, acquisition? are construction you. overlaps technology level, high products? from from key with the workflow I a existing there So, And Pype the any Thank enhancements what are coming

is adds in work changes Obviously, requests things process the a of Pype's orders management managing learning the it and setting up and of the in area. key process. the and one whole And project machine to layer

it's doing the Okay? upfront So, these activities close project in the shortening work these it's time is and to process. what outs

them there, really more and closely was as have our in lots and that for of we were deeply throughout risk technology faster where provides but than some we use as cases core lower the lot the we turnaround, us lot doing. portfolio, giving have to make management, and these with we complementing That's the in project very were RFI accounts worked as really and not Pype a that outcomes. a process We nothing what more you what has. duplicating Pype workflow covers capabilities it's certainly it's sure there of And deep with better partnered Pype do. went So, into were we we better know, them workflows and inside them.

our their to new level. we a is whole pretty whole like the RFI So, And well, reasons pretty process it's one for similar and were us. why you bullish. were a bullish which technology of as the on customers workflow powerful And takes said, combination the

three the over periods, you again these news big to for on in million us, prior volume picture license average again many perspective, how my does there Thanks the deals? on remind in big plus us million. for Congrats taking X deals out guess, maybe one And could a the what guess, compliance And three there. was type Asia. license questions. you Great compliance I deals of those how a tell deals the deals? that compare are really, today? the And license from world deal I follow-up duration could contract of maybe just big

compliance to put in in bit this time but you in our the that of calling reason economic a are The give out for those of and our – many environment, more work a at and continuing It's talked et cetera. customers duration, the we've of that slowly our levels end not out when markets for customers license of back terms notable business, about and the to go position are – they sense to particularly deference deals a little to is particular are demand more under drive were stress.

recovered also seeing we've back. are they're they back as come out that those do, open the we large, markets As are not that right those is markets those and on they getting the seen that ensuring And only non-compliant – but can back we're we have in to up, users. call reason monetize

them calling than lengthy of saying was particularly more purpose out, So, duration. they the that were in much so

Borg Adam from comes Stifel. question with next Our

You obviously, price quick I Are off you seeing given optimize in just last in. to about AutoCAD mentioned just I the around LT, talked earlier you Matt's AutoCAD wanted building question first, quarter. I strength guess points. customers just purchases? had any drill ones. two the that LT

the about industry being great. would in AutoCAD follow-up, talked just to renewal just partial be you've as a activity I but trade-downs about renewal partial great. expectations, commentary And would know or line there talk quick renewal be either want around just commentary any from rates rates. Any So, collections? any with

take I'll the over And AutoCAD rate hand to Scott. the question question I'll renewal

seeing not segments independent growth kind of is these we're of each in other. seeing all of we're actually, So, that behavior. What

and first collection. sticking time. for as goes model. two we And on, At first we time. the period. we or We're get squeezed of adding the the We're buying does point, expect people that. of some with between for we the of not is for, squeezed We're within expect, trade-up seeing now, we're lot up trade-down. AutoCAD today seeing customers that offerings. gets over AutoCAD offering have AutoCAD cross staying time seeing So, the LT seeing those between right But LT long remember, have, they we're buying But collections types as seeing that the We're and more it flow customers in customers between buying offerings something not plan the That's two. that they seeing a respect.

So, Scott, renewals. to the partial

Andrew, to on Just what mean. AutoCAD its point finer LT versus historical it's sales that if our kind terms mix a and percent you to of said, put collections are versus of the you just reverted of at look product other, in

partial seeing to and again monitor percent quarter. the So, really are big we not renewal, talked between quarter. quarter headcount. of To certain moved a closely – to on rate it's what's your we're hadn't that it we've any of question of X, how materially up, renewals, quarter. the continue really are as what obviously last a product a mix. because And this amount we good shift sense those is indicator partial in instead given So, the right? what renewing a our right? renewal us renewed point. or came they that gives subscriptions, doing There's renewed their due I the of same same I changes partial But only always I last a is, a employment the in at happens of monitored of it in And And XX, had they health customers, all X that come them about of it's XX

but or from up go base either change big rate, to it expect down. increase a rate. seeing not not it seeing we're the down So, from wouldn't that we're base I

Weiss Our next with from Morgan Stanley. question comes Keith

was commercial, hoping infrastructure, the like in Fodderwala updated Hamza is between breakdown This if Andrew, could business Weiss. Keith of an you I give for industrial construction.

Clearly, lot of commercial rebounding. lot seems You still be the around about the a macro hearing But talked industrial. segment. to a we're uncertainty

past, other the quite is the that thought there's tied I in segments. But, commercial in clearly, have growth think good side. the Autodesk people to

was wondering how and any three in I give verticals on exposure So, macro of through those? seeing your those each the if you could you're view

We're our right not might to be seeing various commercial that in any dislocations AEC business now. slowdown in due on places going

areas business. we're make of slow right? – understand outside we in business So, right a They're probably really commercial, as or of commercial this that. office AEC down about especially commercial part probably kind I in projects right? what's was are of all All want not, going now. like either Because still But big the that in Big And that sure strength there urban to our we assumption seeing somehow happening talked frequent. a to buildings urban be lot. not are

expect can discussions going of political commercial corridors. in see is more urban business space. these driving ongoing locations, places additional as but happening we're going the in of work And operations what well additional you you're and there's be from to seeing, that. see and only a lot of of suburban in improvements some not the of this building infrastructure away It's moving reconfiguring to to things sorts see along as of some centers centers of still of big and more as urban California, to all corridors, and which and as building But is However, legislatures of going more about are discussions commercial that transportation these be to type having, certainly along a in already sorts also we one the that of the all see activity, in conversations transportation out some well. topic that we're conversation we

any So, our result right business and a no, future don't we activities not seeing softness happening what's business, as softness in in now. our commercial of we are see with

follow-up back for in expected than Andrew stronger QX. the spoke half. a you. to an Obviously, just pipeline question Scott, improving

I'm to Just I not fully the mentioned for the sure billings – of earlier? guide bit the last for declining understood. there explanation wondering Was reason similar the end that revenue you high versus what a quarter.

got slightly cause. although it's same No, the different, root it's

as proud the to by I'm of that results in. that, of produce lot of raised pleased up $XX that all by able and second midpoint really guide I our we million. So, as the just be is an something our we full-year in pride saying, our the to with of a a you uncertain I'd think quarter. result take saw, results we execution incredibly put And In start environment, revenue

range. view. kind the level at high that's look of that the that, When the low high you we've how So, and up we end did of end slightly guidance reduced pulled

markets your question the just we six is end million. range. from With trends $XX had We're the left, only slight think months in good reduction we high range narrowed a There's seeing fair what it amount $XXX the uncertainty, that down moved We renewal on the talked the The of as been narrowed have I million and to in still Japan. in subs Product right UK. We is rates very direction. the the pipeline. Korea the particularly mentioned trending strong. US into reopening. about China, are in about pipeline and

range, we in high earlier, that all But midpoint. give overall $XX the this as point it's us so, I revenue guidance expecting recovery. And a that in seen is guidance previously, raise million markets, that And range were had we weigh the At our together, at haven't our those factors that to all talked of of markets. we and while we've said guide the swift seen by the we Hamza. high – confidence of end the about the some end combination that

the made narrowing that's end why just of so, the range And revenue slightly high sense. from

Vruwink our with next comes Joe And question Baird. from

going which back this going forward. be increasingly up new, There's case but now, you think Do Andrew, certain balance, users with given where that this recently into is shows this Revit, your Inventor increase where things going mindful on blog higher a interplay and was Revit it's Any go it's I my things more a maybe audience shifting the to, because greater on of of tapping have to guess this to circle place? not My about in to of core question striking shift pass functionality be with you to receive year architecture. product mindfulness was I functionality, foresee it investment different you have only cloud that go now. dynamic roadmap. question kind are post the to and thought cloud you investment? that is the in in interesting priorities the a you anything investing because the you I your had maybe kind the certain changes meaningful that's structurally newer, or in portfolio product of it's gets

is put new Shift – not we the word. be dollars. correct where right it not necessarily What is will really

for because tension this at five architects, been whole architects. So, year – year, this is something kind this has and around of plus instance, around concern the beginning the we saw coming this architecture of with a

Architecture increased in at So, actually year. this the we of beginning investment AutoCAD

how that add investment, investment next with R&D forthright where that. we into to probably very investment add actually of is forward money incremental to incremental choose moving over not the So, year year time. been it into places space we mean incremental we'll we've after incremental rich from away in increase that, and and dollars going construction space. and terms What we shift incremental as used more investment But will in investment. We're other we deliberately add

to the of shift, add it think be as as rather about to continue in as, we spending I do, we're able we're more to than Joe, investment, incremental R&D a we history. position to ever So, we're certain we in the had than enviable we thinking year in it which still this And like invest more, our beginning spaces, architecture. choose of going investment to at deliberately to just for room have did incremental in add

Our David next comes Canaccord. with from Hynes question

demand start uptick is, lag of I'll me. you between use and question uptick Scott. you the the true Two would time you, with based expect in guess that Curious the on questions in what in demand same what then Americas active in saw an saw from APAC? resumption the you if when held see I the the to in here? And July, was

to for Europe. in between time David. get a and What as bit finely in as reopened markets months. our And lead when don't up. have sales Continental ticked up, quite into not same did usage the there only a have was want but bit that you, measured the phenomenon in not a was but parsing is, But the expectation, product usage of of new I time, see lead we've actual APAC there a we seen it's up really seen ticks pick the we that now, it

So, our expectation is the that a States we'll we United as more same in reopening here. see into that get thing

is the UK issue normal the with think dealing than slightly recovery a from just separate pandemic. I the

Curios Autodesk. training it's – But obviously, future for you. channel the for a not one I what users. Andrew, revenue know education it's driver

back-to-school curious and be seeing I'd processes what the Any you're around color helpful. enrollment there, So, just numbers. would given uncertainty be

Education think, on with parts of kind well regards certain doing especially is K-XX. its curriculum. the All the Certainly, have playing remember, up Fusion our how work right? we strategy Yeah. interacts the usage foundation. areas, is of cloud for cloud I with us. nature nicely in frankly, of is certain to the side, cloud the and Tinkercad university remote into in And because of

getting more a in is Tinkercad lot So, right as visibility curriculums of now well.

So, it's back for priority pre-COVID that had And in is where – gains to it's we is paradigm. education the have. educational seen not We in has really places during levels the we're well seeing we a us usage a of usage. cloud done usage rebounded in that sign. usage positive in in the for which absolutely days, But pandemic terms haven't declines

Jason with KeyBanc last from our Celino Markets. comes And Capital question

of forward-looking More quick Maybe for question. one one a Scott.

are of I Because I guess, lot what half. what the churn around But, a today. second last mentioned are think been building guidance? on the seeing that have for that in there conservatism think in quarter, I you in you questions building some you you're

end convert the continued in those It's to aggregate, subscription from renewal the expectation way it's improvement base, is biggest impact of of actually, in expectation recovering on region expectation subscriptions, see to now rates life it's surprising by either across with now economic kind – are quarter, the as to varies has of churn. slight year. our the product be, of renewal that piece the not we continue all I the Our on throughout I'm of the which that countries. renew, But improvements the bit chance shutdown last Obviously, announced regions through churn slight quite differently. kind will looking That's rate should as increase rates what small. Maintenance of the it informally by progressed far subs. a maintenance. think, we've quite different of the maintenance see the And on end or our on and pleased, products is

our in in base convert in subscription point. sorry, we're at we're at – quite and renew same of maintenance which course, And with line an And I'm churn an is so, revenue is a increase this the seeing overall our both both time, base of our and expectations. seeing increase element small

year. So, rate would of through see maintenance continue I end the churn And front. the expect not to level higher-than-normal a at that that on surprising

users from? One new XXX. The Were where Fusion that And before? for mentioned, were cloud Andrew users? or any existing quick completely they way net using to really they you think came those about on additions

all more. existing All were right? of There of them. kind users It's added that

There users low of bigger is Fusion. see end had expansion. we've lot installations, getting the at a also market CAM and We the a which low new good moving and We're consolidating bigger market. into with Fusion end the users and their Fusion So, forward solutions at are of sign. design the of

versions. some of versions So, commercial saw hobbyist it's kind our of a from those all users of some things. We to combination converting

accounts unifying we're selling it So, it's accounts where their of selling into are drivers whole really, had the But more their we and that we're more big operations. across are, the down spectrum. into inside market basically portfolios

Abhey now turn time over the have Thank you. Lamba this for like is all And to call would to we closing for the back remarks. today. I

concludes for everyone, Thank Thanks. follow-up to joining you to anything. This our reach if for want you, Joelle. thanks, today. And us call Please out us today. on

participating. conference This today's Thank call. for you concludes

may disconnect. You now