Autodesk (ADSK) 25 Nov 202021 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Q3 Fiscal Year 2021 Autodesk Earnings Conference Call. At this time, all participants’ lines are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand of Simon would to conference Investor I speaker your Mays-Smith, Instructions] like the to over Relations. [Operator Vice President you. Thank go sir. Please ahead,

for to Thanks, our fiscal year our Thank good Operator, of you and third quarter conference the discuss call ‘XX. results of afternoon. joining

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

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

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

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

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

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

welcome and to Simon, you, call. the Thank everyone

hope I families remaining you healthy. and off, and are First safe your

and sustained resilience our quarter. during and they quarter as That would uncertain revenue, underpinning for earnings flow am secular free I the their commitment this was them, macro-economic that the and our our and opportunities again business see the expectations, pandemic. employees our the third to enabled with above despite commitment execution, cloud the coming us Together, customers, into results competitive it well of our the model jumping the like partners demonstrated resulting thank - reflected communities conditions in it cash SaaS volatile acceleration pleased our families business the deliver support Before I QX results, as to times. billings, and from brings. shift strong and to in to of past model,

opportunity of ahead us. of miles many have We

transformation software are Our their that These their own product partner the enterprise past, rather strategic we customers becoming vendor. than digital portfolios. undertaking transformation, customers broader are a than Autodesk in partnerships and are with our strategic by expanding enabling a

flow strong of large this trend, In in impact which positions the of results quarter, with transactions activity quarter history, Our we and our saw the reflect accelerated. third the enterprise company’s entering deal. the nine-digit us We fourth also of am as third our proud customers the pipeline closed I some a pandemic. team’s of with quarter execution, a deals. ebb the deal largest the well economic of including

and positive pre-COVID patterns Japan, to the our regions. and of products able correlation monitor those the the in levels. usage Europe China, rise business and means above saw of we globe to cloud see increasing new transition the Korea, between know, you levels are usage across levels growth As our most usage

is helping trends, the business stream but the with have of returned by base the and in our U.S. diversity pandemic, deliver the U.K. line grown remains U.S. while revenue new and to pre-COVID the us U.K. trends strong usage While our not have stabilized usage in the they levels, yet in and sequentially results. In customer impacted

know, starting last career Cisco, over played his model role Scott by decided you helping the Autodesk the a at has accepting has six on As years, navigate CFO in business driving take mid-December. the the challenge business successfully to next huge transition. the Scott role in

sad replacement. We him but see a excited I ensure leaving him. your smooth to also we success contributions your for Scott, are for for Scott while you, to behind next Autodesk chapter are leave, operations to of team strong we career. and you look continued wish his many is the Thank in

and We priority it process, top the in have is my started the near-term. search

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

recurring am Thanks, lies years I of as momentum. model. ahead I and Autodesk sad complete for markets Autodesk. leaving future about Autodesk am have revenue with from the The leave Andrew. six what we emotions, my well-positioned is attractive my entire transition also transformed but traditional as colleagues excited I have the license leading to is for a the most last That accelerating me, cloud-based at and model leaving fun with about revenue rewarding mixed and a been career, in now knowing positions company

improving flow currency, margin at We the new for revenue growth rates. XX%, combined XX% QX, was saw Looking customers helped X next in other plan continued enterprise improvement by Business normalization the performance trends previously customer RPO of online exchange benefited factors growing cash again sequential free operating certain came we in and sales XX% with by and payment in terms expanding up impacted in extended healthy collections a renewal subscription Total percentage payment a growth business the U.S. second parts The revenue Digital at sales, and base. $XXX in reflects activity, our up XX% healthy contributed constant terms, points. by with offerings. cash reported, revenue business accelerated strong in of you we Total Current twelve offset RPO, pandemic. told rates, of trends, drive by the improvement foreign of our results, in diversity across strong of key committed to deal slight the strength all metrics, digital as softness XX%. our the like several quarter’s to We growth drive out subscription growth on areas, the million. cloud-based rate was our through months, Fusion quarter. by was which in channel, areas. double-digit billings from Europe, supported and including, for

We with are broader commitments. strategic with customers our developing enterprise multiyear relationships

enterprise third meaningful business quarter. have with during our impact deal run-rate three-year a our mentioned commitment is on the and annually well. for also As The typical to partners most perform not a revenue Andrew agreements, flow the nine-digit did cash continued is billed or

a of are While advantage traction model, line their our our of our X-for-X optimizing we transition they with by expectations. am the overall our needed report customers in trade-in of subset that are base pleased installed after seeing reducing to business seats number program. to take results the I in of the user it user trends named named these

have to said to model transition in is value way the the as providers. other in we us us, aggregate, SaaS more event offer past, in the a our for customers, As enables a to similar revenue-neutral but named user

remained laid our rate within out net guidance. revenue retention in the to range Our XXX% XXX% we

remained nature reinforcing renewal products the subscription our strong, product rates our critical of Our to customers.

to of for renewal XX% prior maintenance the approximately came customers subscriptions. up the who converted in As quarter,

maintenance as program. are of share a total our the rate Industry sequentially, QX. remained business was Our we of expected collections which nearing stable renewal our end declined in maintenance

spent multiyear our share modest investments million anticipated, of to shares finally, of we improvement share. price average we approximately in but at at repurchased during per for As $XXX payments we X.XX across million. continue down customers total And buy approximately $XXX long-term as products. saw year back $XXX were spend in an an the average million sequential per to have $XXX payments share, quarter multiyear the over third each geography shares XXX,XXX of a Year-to-date, year, make of price

Now let guidance. to turn me our

We of growth the $X.XXX a XX% end to of billion, billion to year-over-year. to are revenue raising the guidance $X.XXX our range bringing full-year up rate mid-point low

outlook the margin end also We non-GAAP improvement year. of upper last are prior to from a range, our raising X-point operating

our current uncertain environment quarter fourth the cases. third will results, from the Our the COVID strength remains in of business quarter performance wave given benefit but

product very Churn healthy. on ending between maintenance to revenue offering. maintenance our expect we rates XXX% will net we retention remain be subscription offering quarter. as accelerate continue enter And renewal stages for and our the of likely expect to our We final to XXX% rate the

that Our around but billings have to products new business quarter current is we under continue our headwinds. multiyear cash we testament contracts assumed current and is XX% of moderating our expecting environment. primarily pressure. The the driven resiliency multiyear and to the range to the flow outlook the by of narrowing the uncertainty and be growth will pipeline free It still economic entering customers, assumptions fourth presented strategic model, to value our the a despite is revenue of and that are report by our strong,

our will the accelerating over to ‘XX. year result new course exit fiscal in in an out improving fiscal as year we we this macro-economic XXXX, environment Looking business expect growth of

model, sales subscription improving our Given growth revenue environment. the will lag

linear. path As will ‘XX not to past, the fiscal said we in be the have

We fiscal to cash re-accelerate free growth and XX%. expect growth low- to-mid-teens our flow revenue ‘XX to be approximately to

our ‘XX from cash part free billion, confident restarted of provide transactions revenue fiscal flow we benefit We will ‘XX our and tailwind in business. momentum benefit our growth. to the are when from will payments ‘XX flow target In for also of that fiscal $X.X a cash we multiyear our fiscal in free of as business improving will we ‘XX, fiscal renewals a

I’d growth. ‘XX, sheet, turn for subscription by a our model, strong fiscal to continued and business now, cloud double-digit products foundation Andrew. balance back us to platform robust And and backed a Beyond investment it in give like a

Scott. you, Thank

as business the future, to and and harnessing our in needed to on evaluate we I quickly and users the options or workflow, rapidly a options. demo build development. cities time smart Our design. functionality, data urban strong website. that customer once Spacemaker University At generate, hosted last our we demonstrates resiliency power again of of approximately week, which much customers the our of closed us our yesterday earlier to offerings, in strength and Spacemaker a the series available fundamental capture, iterate to enable and is to AI as offers out to check in automated create shift It of our you advantages Autodesk QX the their and support, on a possible of industry optimize building employees, encourage for Through enables week various product model. XXX,XXX base, and in design, Spacemaker, partners, imagine our how the announcements performance of last diverse SaaS Design partnership decision acquisition well architects. will evaluate functionality and leading collaboration professionals and support also offers made and by from

navigation, announced the our and the also seamless which data BIM and project integrated Autodesk Cloud truth We platform, Quantify, across PlanGrid Build, XXX, management Construction solution. workflows Cloud Underpinning project cloud is to This Autodesk within create our lifecycle. single project offerings BIM common best a connected together AEC source the and project bring a functionality enable and a and the held across provides comprehensive unifies design of and of Autodesk Construction to with Docs. enables controls, construction Autodesk the new them, and environment, data ecosystem Collaborate construction. field

the between Pro project extends more the construction. customers, XXX BIM platform data a capabilities Design design to our design of create on and BIM exchange Collaborate of seamless For new

committed leading construction to partner. a Morgan in group During U.K., Autodesk as Sindall, platform their the the strategic quarter,

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for Our navigate to tomorrow. sustainable cloud-based and products the enable more our today, and cycle to customers be efficient

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set products XXX average BIM our weekly quarter, and This worldwide for projects. both records users

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building clients infrastructure the sectors increased and with During firms the world’s professional the its quarter, investment of leading Autodesk. services which one serves in

XX in use over and PlanGrid another for together to builder, faster business BIM partnering XXX for instance, enables Co, House years adapt been and create order renewed in industry largest this have BIM Ltd., the Japan’s to of enterprise its company investments digital We Industry and adopting markets The XXX enterprise PlanGrid. and Design, be its our to agreement to of company adopt partner and agreement business its In The firm its Autodesk renewal expand is its new of Daiwa a with home key made services. changes has goals BIM, for and and to selected making manufacturing, us. to transformation, is construction. design Docs organization, BIM the strategic levels has additional for achieve products, including at innovation Autodesk all commitment and industrialized

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the of by Manufacturing in growth Design propelling also Make. is platform cloud-based enabling and Our convergence

our of to side, quarter commercial deployments, XXX adding further subscriptions. Fusion functionality. several competitive scale adding end growing the XXX,XXX subscriptions, introduced the by of of Fusion platform, extensions platform another cloud-based with adoption XXX, the to and At specialist accelerating AU, enjoyed that we displacements, quarter usage market-leading and over On encourage

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approximately enterprise During a at and quarter, security with stay its of large third in global components target set time through supply industry, its multinational and XD to is print increase methods innovative the aerospace company investment the extensive save with and defense, the using new a To money has one agreement. an an chain chose forefront the to to its manufacturing business jet. of company Autodesk

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has engineering. and University biomedical of multiple Illinois including switched mechanical across XXX now the Fusion systems engineering, Urbana-Champaign instance, to For engineering departments, at

enhanced to model seeing customers its enhanced taking our our finding multi-user plan, subscription with the capabilities, are Premium at sign-on in of value of offering single user advantage are the Many named analytics, to Premium and plan, who customers adoption the renewal. transitioning support. user advanced of early We great due are

continues a decided IT Autodesk to user commit For example, SSO see global field due capabilities. the environment strategic the to long-term and as technology, harmonize They Scheuch, Premium a a to as in management partner leader innovative this investment infrastructure. its quarter, and it to air in primarily of

Let me non-compliant our by updating finish on progress users. monetizing you

sensitive We the economic the about our faced cloud-based remain by continue be the but long-term our value to to of short-term optimistic pressure demonstrate opportunity as to customers, customers. we our platform

left For to growth. a focus example, try in to China, lower due Autodesk a customer time to collections cost us and which invested first purchasing quickly for competitor returned the further superior functionality in on AutoCAD’s by

benefits to the customers to staying manner. paying educate friendly customer to our are able users results, compliant are efforts with Our them we yielding in our as convert about of a subscriptions

compliance deals closing, to eight license build During a long-term. the for we closed the $XXX,XXX over continue our stronger In we Autodesk quarter, with team.

and Our investment and in transition to like a critical the in significant early grow have billion. give and collaboration, target a make cloud ‘XX double-digit confidence Operator, like the sustained organic in in SaaS now with questions. we cash computing and that call open that, range business and multiple free us for model, the $X.X confident capabilities fiscal combined successful With our strategic foreseeable us of advantages flow cloud-based to competitive up to we would drivers future

Barclays Instructions] [Operator you. comes first Kalia of from line question Saket Thank Capital. from the Our

Your line now is open.

guys. on congratulations here, the and step. my Okay. Scott, for taking next Great. Hey, questions Thanks

missed. be certainly will You

Thanks, Saket.

saw reference. during Does a but or what one what Reinvestment don’t of a what perhaps frame months potentially that as was during the got some the sense? like Hey, make Act you, maybe yet spending of frankly of by little that and were I lot infrastructure wondering could spurred like talk that looks a higher Andrew, and XXXX even Autodesk? you the government Recovery for mean especially first maybe bit, will the it of to October about, feel we November, for I happen, questions but if And we course, of Autodesk know

Saket, makes Yeah. that sense.

clear. stimulus one of out of to leave the of me government. off, around by stimulus impact leave First exposed don’t of our That kind let being on stuff want start or because we in question business that vagaries the any We any super to not projections models, have does right? our themselves the

this, ‘XX the the if However, gosh. and exposed work base the it’s absolutely to and Oh, important our sectors faster back of distributed And think, did recovering narratives was that. already I of and a we spending so is Infrastructure showed recovered were was market. of housing significantly stimulus pipeline to ‘XX and it’s revenue and our think that but housing ‘XX in about customer Autodesk ‘XX, well, of nature and the the the some we remember than and that created oh, market because helped projects I and the and to go that to back reality stimulus is, Autodesk that before we my because one spending of projects up cover. important the it were new, then recognize Autodesk

some what some If project going make adoption portfolio. pipelines numbers. expecting could are be impact not And and Saket, to and we to of up it’s actually stuff hit show it you But the our actually portfolio. look at good more for really and construction we again, that see want don’t see good could it kind of model in to this It be the if of increase our that’s always super our of outlook us. clear, stimulus, it obviously important I see the we might we for our customers

does those for of Yeah. turn downstream projects then time to some our to that infrastructure that out bill to for let’s to to on drive say, passed. an put for into comment bill get start It projects take bid top that and is, I’d Saket, the only add will business. and other real get that

that the if anyway. to have happen, So it I a in impact to let’s even new say, were expect administration, early ‘XX material wouldn’t fiscal on of

fiscal flow growth Got fiscal here ‘XX, maybe that like I for of Thanks the guess a continue $X.X some that click ‘XX that early That’s ‘XX wondering acceleration that flow into a it ‘XX helpful. guide. in my for you cash might free is and little You could prepared looks this next very it. for target of we just once Scott, Can if going -- am actually, talk double are comments, That’s it free wonder of in seeing little to in drivers touched super and on you. about billion on follow-up just that? so ‘XX is fiscal the contribute you helpful. with to I cash more? year fiscal XX% the ‘XX.

Sure, last year multiple just Yeah. through crazy, know, year And in recall nine been that looking fiscal probably team this the you note over as at were by I the of running ones we as fiscal and actually, the not ‘XX way, beyond. it and I ‘XX. right, on months it we And run what been driving out have my impact of next your scenarios running each for run the fiscal got for preview you have one expect fiscal even fiscal to Saket. and case to ‘XX scenarios.

the a I sense But underpins that step back of start a how biggest and drivers to scenarios, of fiscal the to our in ‘XX. confidence part will what with what behind different So driver. model are and that’s the have of good say, you if variety responds

the steady renewal revenue And range rate but increase even modestly the given we pandemic. renewal renewal net stay during XXX% this size You even in through that’s the that retention to staying rates our big in we in have a of seen saw talked kind process base, XXX% of fact about longer our and rates, term. sequential driver

Add growth. that cloud base So rate big seeing a a in XXX% we renewal revenue to renewal retention high XXX% are and a lot to with that take net rate drives what you in of and opportunity front portfolio, acceleration users in of have portfolio we us a nonpaying we the of the out and built overall, still significant pretty convert product products cloud construction. to leading

way headed manufacturing we to have of traction are are the we today business and Fusion get we of talked the success and the about XXX and extension. a there beginning with there of monetizing -- So the our and again we some is with are that some where about

this lot fiscal there’s not that out our ‘XX. but ‘XX year that. a gave of ramps up you early some the in confidence how and of behind So then just view That’s I drives what fiscal through

to I We seeing we Certain think now are modest add things activity -- pre-COVID but other to back do there’s are a in that that. two quick not to about. improvement I’d countries talked like economic levels, right it’s consistent. Andrew

we Our improvement is continued next year but to through see going economic that it’s expectation that that be will will line. -- doubt I straight a

I just build our think that the free we fairly which year-on-year your more year half And affects it impact will the into not you on affects will get pronounced see in the then in a about into can of flow. the momentum do tax the next to revenue. fiscal And lot be when we item a so ‘XX more cash has one be as to second call back-end It turn million of million half $XX improved year bit $XX of will cash. sales collect this profitability model, also next that want other significantly. that that year means cash the linearity year, that second year to I of of a loaded.

view our flow $XX.X the in fiscal of that’s So what you confidence, early fiscal confidence and ‘XX. add those our cash together, billion ‘XX underpin all in

Got it. Thanks, guys. very helpful. That’s

Saket. Thanks,

you. Thank

Markets. Capital RBC from Hedberg Matt from comes question next Our

open. Your now line is

these exciting. situation. three-year been for at offer you taking about I obviously, enterprise that on really also can to the renewal luck. but ask given super give Scott. Hey. grown extended I for my history of And Thanks level. difficult this maybe these Great, nine-figure days? That sort am the we Andrew, you, this wanted with deals us caliber, other of deal. a has will then platform a of your I and I how in my congrats opportunity miss congrats wondering questions It’s bit guess is and numbers congrats working on customer of to great best you Autodesk, you will guys. to

Yeah.

tell more of deals and broke of So actually all the so important them. times quarters. and a want are not same underpins these dynamic we all records in of the quarter, than to it’s these during becoming our I couple what essentially in norm it’s And think I this you

BIM okay, Our are without customers renegotiating associated they to are with transition out. order do or us in with strategic with to cloud years Fusion to EBA maintain look what or that three customers. requirements digital look the what trying with and to to this. internally, what’s going discussion powering an That’s transformation things with the these themselves, they the adoption And they and They with that. what the again. need the other at transformationally, transition A back in drive contract coming of expansion and about are long-term ask

process, make applying that to going are So plan expansion Revit more or and processes. see Cloud they for to want instance, sure their broadly for deeper Construction both and a their they construction in into customer and might themselves industrialized expanding into Inventor of more they

much They the well, year year. next are planning saying, that, after I are year this that. they to year, this the that. I going am Construction So for Cloud using much this use after am

the is across expansion So That’s three-year of couldn’t sense, usage these size you see of out dynamic of deals coming Matt? all across usage driving of deals is through. are usage almost these of Make that seeing. breadth in we what that of plays Otherwise, this portfolio. discussion about kinds in this it’s the it’s this these our deals, not accounts portfolio users, and just

SaaS have the pandemic effect potentially raise but XXX you deals, the SaaS you and then see even every a a guess, world, as double excited in that all at today, day, you vaccine. some a That’s could helpful. next the for had a No. though, I I with we mean, of And really, to of SaaS bit Andrew, I slingshot On of get just prospects effectively post-COVID larger success think do embrace sense customers part Yeah. obviously click lot talk think, about it. to conversations, a Got super on executives maybe side. of a we the are you those as these I point? mean,

-- think, It’s it like broadly actually these It’s of customers, has beyond deploying were it. I more even have Because taste got going pandemic. they want Yeah. goes some it, a you of you what’s it not once our of too, they prior am okay? remember get this is it and my solutions is the for are and I is I going stuff what seeing drive you I future prepare what, pandemic important, to to this and to need how now to know need SaaS digitization. on on

out. play election one and president are absolutely interesting growth are is when us, vaccine we continued everybody uncertain. a of that the are conversations who in then what getting seeing we is, is this these uncertainty. SaaS with pandemic of what the platforms. going is less timeline you doesn’t how things increasing It executives than is reductions it starts to all seeing But U.S. in mentioned goes vaccine that, because talk hey, to uncertain, be see to into, going and and like the see in more the now we to going we then right vaccine So is change less It’s

the to okay? feel comfortable we And investment I they with looking uncertainty half of year. one long and as half as removed and next are being being more every second people comfortable in this conversations, building removed, you SaaS at uncertainty on increasingly year customers see being second trajectory scenarios about is those of getting about how for So progressive and this are is next more of think going continue of their

guys. Thanks, helpful. Super

question, the for Matt. Thanks

Thank you.

question line from next Wells Winslow Our from Fargo. of Philip comes the

Your line now is open.

taking obviously not this great been going with you, my just quarter. Hey, to. a congrats Scott, working question back on guys. great And but pleasure at Autodesk, for Thanks it’s and

We you my will friend. definitely miss

Thanks, Phil.

got I the question of of for of construction. your you from actual portfolio, AEC terms stages in diversified -- obviously, building design, The in very it planning, a of a the terms the call sort

out? of QX, question portfolio you to a are are we what you sort of guess, about And sort next right here, so then that portfolio that the now seeing of fiscal I sort into in are spending How ebbs and year. play two thinking of part flows and

that because more discussion now way an whole this AEC And right? there, on things I digital portfolio BIM make BIM, the something have for usage layered that a Right AEC what what’s continuing right? twin, lot Information see on critical differentiator accelerating digital of acceleration seeing front around pushing digital are we no used going you ongoing is and twins of it progressively, going talking a and digital cycle things unique, twins is But the dialogue cloud entire have breadth digital And now people our will we original and the have are top right of twin are a and of it I and to the in that’s then with around do if The competitive vocabulary And that’s haven’t Model. I twins, this out portfolio. again. the a you couple are of there’s of to to are and on is Phil, associated the BIM. Building very entire is up in capability XD again got often. vocabulary important the we do across want valuable. we is you BIM us. that see Actually, information about Yeah. without fairly is that think we a what But obviously, integrating

compliant It’s environment the it’s may through Cloud things data and environment ultimately data allow You information and entire common new us SaaS Construction way platform common the to common to go ISO is that process. data going not environment. That that the emphasized data be around that based. also this to noticed in building all with move a we along just going have the all notion

other cycle based in our types Tandem, third mention way to that what’s But forefront the preconstruction BIM from and that project thing the single it from represents project going Build, all And through other where want in the one this is building the of Autodesk pretty aggregated you, actually attention a From want for we of data us adoption more the see that as Tandem. bring parties from places. of from the to what twins power site more was from. are BIM view Autodesk all that or the BIM I no to and and are models BIM, progresses. planning data the BIM information to Tandem? to us. you twins updates digital and into our at comes to the about differentiator in bringing last cloud Tandem So rollout other the talked the is, powerful This create that’s digital and the building a make way project to it, at of bring construction together puts I state matter of BIM to information, applications AU perhaps, if a was Tandem to start controller with you twins dynamically from cloud digital data sure to multiple paid the ability final create of So

think the So going taking. the for uptake we lot approach and and a you and to what it about are progression pretty this excited company are of in see are means I interest we

long-term year and thinking exciting obviously, Scott, The after about That’s hanging are you awesome. question guidance how you this the year, are that is flow as next exciting That’s for of when cash for But modeling that thinking out sort year super mid-XXs? at the the you equally and year are for about -- deferred that next that? revenue. an how

Yeah.

lot this that what kind at to we want in too think seeing obviously call get I a of drives of detail it course until is year of that QX fiscal what more that earnings into next deferred. year long-term you moderating forecasting for point. assumptions But that’s and of Phil. multiyear, give ‘XX get I we to are and stays range, much don’t can the around we

onto maintenance. there hasn’t they see not we still are so off floor. But sequential are and multiyear the as desk fallen off And robust the long-term. are seen hasn’t had you as the It fallen trends historically It rates the floor. in The there.

to big we year, a rates this think renewal cash. get that there’s multiyear I we level. continue see of think will the that that frankly given don’t returns moderating But collect the I it strength that, ultimately that negative to in our sense the

the all an three without collect subsequent We discount we XX% instead the will put years of collecting and for that we upfront will just years incentive it it in in collect those transactions. as multiyear two

Ultimately, for in where think settling foreseeable I it it there’s for future. is to a of run. room little it think the So

Awesome. Thanks, guys, and congrats again on a great quarter.

Thanks, Phil.

Thanks.

Thank you.

line Bellini next Sachs. comes Heather question Our the from of Goldman from

Your now line open. is

responding? a wanted two on more on differentiation course you wider then Thank seeing that’s that bit so could the APAC? growth. the even you us over challenging if model region at in well, given that ask if you of the the are that, construction, my growth of with the competitors some best you much. you is One, you macro look was your little environment. maybe as spend the positioning in recovery this mean, solid I from Americas questions. and might also, could share think Thank growth to the pandemic? do the see you Asia-Pac, How if gotten much, can I in kind will in of the pricing to in I and some behind terms of, for time far company’s the you and congratulations so And Scott, Andrew, Great. you and So execution if competitive I echo how your see

right. All

competitive So the the me on with start let construction. positioning

right, absolutely the parts bit. a wind out of lap market. pandemic definitely competition The Heather, our the slowdown us actually to are that gave You of the an certain took opportunity

didn’t we down, the continued we slow bit rolling unified out and a quite platform. of invest into money put we to However,

what project and are lead Autodesk U.S. to deal, design you all going going of and that is internationally lead some with predictive with on IQ are site the application Build way site to are over Construction are goes lead the skills, over with analytics Autodesk and Build, what with a which field Docs. see Autodesk going of built execution the leading layers to and to comprehensive top So in new from we in this, we with every the is on all through management management associated we we again, and and management,

That pretty change. a So highly this is platform is significant competitive.

capabilities. of matter it’s a ways in its fact, end-to-end numerous As because differentiated of

I one in unique what’s flexible about industry models, of In important the very deliver pricing us, and think, more Heather, we here’s than these remember applications it’s this. the way Autodesk. is terms No with to

named for So have named want users named you. users and got of our if deployment buy deploy That’s applications. for most users, model primarily you we to our

do can based you If want that. pay to on turnover, project you

has usage allowed by heavily of is what’s play and us year. on parcel to part during This continue and you and our I happened over last do the been Construction consumption, usage the think, in flexibility what’s to customers, of to Cloud the coveted based this even fact, flexibility want can you If that. expand

took So out the I are differentiated, because model-wise on a the it to and there unification think technologically we time are as business differentiated. double we now get pandemic we competitively platform down and

competition customers. in We competitive we the a next our have this head various about it’s are we good are But that the year tough pretty love feeling think we feeling We as us. we good we really good all into space. in recovery strong for for think So where markets. position across it’s are We at.

places. goes particular of surge. The hasn’t Usage to everywhere the a up Now, say. bit lot above and a have to quickly Americas a seeing will pre-COVID APAC, in in U.S. definitely it’s kind just like Usage in Asia-Pacific ramped I It’s versus but seemed what lot regard But up it’s say all back. time on. fallen right, levels we right. earlier, not with in this as here’s of little not ramped fairly places, stalled, of

and about of the see their in the about between stimulus just right U.S., think out right. of Between good now results, we that the levering for kind see does usage the vaccines, a what in all should hold news for pipeline. the while the the project people I between uncertainty tight little election potential

I a think change. we see might to start

matters can earnings be a next I unwinding in about think we will the it what interesting of call. on But the lot So talk our markets. uncertainty

Thank you much. so

you. Thank

Our next Griffin of Vleeschhouwer the Securities. from question from comes line Jay

Your line is now open.

How a time and for vertical that. Maybe to thing are upon the interesting some extent as with you you returning by perhaps possible returning going by many telemetry $XXX,XXX question by to for opportunities a that supply invest in question especially going a software, multi-part and we moment, understand as Could is, capacities quarters, about we you of propensity need standalone the you that kinds then week, the obviously ramp larger in once these last talk even Thank in the do And for nine-figure deal there orders are magnitude requirements same and what is the the with the Andrew, perhaps things? there? the Geo. products or new deal question, in now But a the Autodesk, last deal when to thinking And earlier beyond usage of and new manufacturing consider in license XX that and terms are away of to was usage you pipeline. smart to big seeing to management made versus so data parsed those to seriously subject, even for remarks you company you. are then Andrew, obviously support your collections for you you now chain, eight-figure alluded additional that what first, do about it’s for some to you additional customer to. are interesting Scott, deployments? you a AU starting up having how mean thank success pursue be deals and

Right.

right. So classic question. Jay All it’s a multipart

particularly So, glad licenses Jay, we these is super right. that important start And to Autodesk manage in a piece. let do and me as asked licensed enterprise it, to to with I it’s we This want in investment this manage this customers. space license all because an They really value-add ability am management management, take asset, the something the assets actually seriously this. about is our you

The provides paradigm help legacy terms management cloud legacy that’s in on business license user that in years because doing last a and to every the is usage customer want that still base user as desktop old still our customer, analytics add a to of the and more customers continue sheet unifying do their actual their glass we of fidelity retire believe about a a this we models everything usage really is stack -- have this look level and to it start portfolio value for with is understanding of ongoing this. accelerate of data high This what terms base. see invest is. But in in in the high in that on retire for us that level these every systems a look back good reasons out you to our of the that’s on and through dashboard control Autodesk One been their and of software per manage we us investment will more managing back paradigm models they so of there, to of our our customers relationship been we something news our delivering to based EBA license our holds from multiuser us the license have and for holding actually get the able versus Every get best-in-class that in what these maintenance moving is our how they customers customers customers. the different we use things totally a way are holistically. is from deploying quickly

we because important to to we doing think the what attention investments, pay that to. Now targeting, with areas are attention are manufacturing pay think, want just we I we you Fusion and areas to want with are these

surrounded want augment significant that Fusion certain manufacturing solution is other We growth and grade tackles professional into vertical. markets the a solution those We to technology grade Fusion. by and types inside have supplement of so professional extend integrated that

of was convert the merging advanced manufacturing make in with and angle modeling of advanced first design methods Our attack the methods. and

electrical I mechanical are of going the are components us going to -- convergence think see you and you attack designs. to engineering inside

it in have that do already of we going are uniquely some cloud way. started doing a and We to

ways are cloud customers but We it it to differentiated some are underpinnings going the tools of of uniquely ways that do also in with going our compute to highly do we respect in and are using today.

on this on my call. little congratulate a guess. jump part call, It’s to will as for a earnings you History I earnings Autodesk I the would congratulations I It’s get XXXth second with the there. bit Thank Jay, company. like right. interesting… your of in I difference and And you well. XXth Autodesk the

you. Thank

you of we differential … look are vertical and rates, the by seeing country. by differential If more -- differentiated less a a at of

manufacturing stable, in flat So it’s in the growth, AEC in nice and to both again side. words, be that If country by continuing see see other the somewhat acts robust we vertical. that seeing if we and is

in it performing, it So -- the that region how it’s, is is usage the manufacturing. say or more within I’d differentiator country country how better that The performing, just is then I reiterate stable the in is be AEC I said a industry collections standalone, versus business. I will of continues overall industry -- the will commentary what to our opening share collections is what

had we sales to reverted we We early toward back about quarter So where the not significant talked mean mix — historically. are last it the seeing a had more shift mix on, of there. LTE and we had that seen new a shift been

new other been to how grow will a give -- significant those a add, That new subscription know pandemic, a of performing. you business So growth that give grew impacted you and growth, QX standpoint, business in our of our places. probably business detail seeing either QX, sequentially a our last business at unit out in everything from the laid the particular, I’d again just are point mix sense to so thing because and probably got so to are expectation we are new have by that’s from The unit we you not to units new sense than from question, QX here, I product no this things already in on your and QX way. spreadsheets shift but more you

of to Okay. Thanks very much both you.

Thanks, Jay.

Thanks.

Thank you.

Our comes from the from of Credit line Brad Suisse. next Zelnick question

now Your open. line is

much. so Thanks Great.

year innovation next was I’d for sheer I University just I And this in innovation. the So congrats to Best of chapter. display -- particularly on you guess, your around, at The Autodesk both overflowing. you, Scott. guys, topic all especially ask of everything say about amount of for wanted

high-single, parting double-digit of the question. So, and going Scott, pace you the the maybe gift for forward, because low X% How Andrew, always most below are but What we my a year-to-date. little about for about talked have think growth, spend excites more you, innovation we easy you you, complex. should

accelerating should tremendous So to your think ahead? the of about opportunity range we the growth end meaningfully recapture to spend Thanks. high

right. All

love lot I Innovation critical absolutely are believe we powering to industry transformation of lot we the is dialogue this a Brad, We question. do. So a hyper everything in right now. and of

have see talking been I of innovation are of are the we think our putting the into a talk to and like market. kind We that’s competitors for delighted we sign years to start

for I what and Here’s am industry, of excited and merger imagined power that will anything about. cloud really SaaS, This beyond you and change about transformational they now learning what tell customers into the driving I we this what are machine excited ever-decreasing it their enhancements is means. are the it that and to to computing more excited am going more more me processes costs right have our compute I machine layering what are with the our of productivity compute and get going cloud simply on gets morning for the be to part deliver more be be data with every up in we -- their we with terms and me gets to provide cloud, extremely of in able in customers. right are when now our of insights and we and able industry When to right? learning,

about a sudden talk technologies it’s R&D segue we our all right, that about think excited, the the to of want the about lots. on business as if know questions, as going spending play are we a much for Now, in transformation one thing space gets be But Scott I you is into as me to that. is. what about I you nobody, a answering probably talk I -- just think, After Autodesk can is discussions spender his that, you had there’s next probably that. through individual all and to R&D a to model I where important this high level And at nobody world segment, talking that all it’s all think largest the in year

I and is Scott? from lot fundamental change of that spend. a innovation think much a comes that

what to sure to I that, am Andrew. not add

it said right. exactly you think I

by We thanks position, are But are grow spending words, at increase model way. And a the in we for fortunate margins position your both the we where a Brad. fortunate kind and year-on-year. at can

an year, you look of the at if And fiscal this the for so XXXX, X% in updated guide just total spend. of it midpoint growth implies for short

cost OpEx. of sold the goods plus So

Looking ahead, and for in that R&D significantly our of on invested of grown internal top out Andrew year capacity sales for internal that, about have investment our the R&D, building pretty in we in and headcount areas our earlier question just some on Jay’s touched systems infrastructure. this

invested have we to year that acquisitions next quite that and strategic made So but innovation. fuel large obviously on to handful year will already in this carry continue a bit have we innovation of into not a

on are continuing and the growth we I to through double-digit the us and in investment dependent -- long-term position things is ‘XX. increase targeting drive feel of an to be think out side good margins to we revenue both somewhat about invest I able really fiscal So on that R&D

Okay. hosting look Thanks very we to you and week. Happy holidays next forward much.

Brad. Thanks,

you. Thank

question next of from Weiss from line Stanley. Keith Our Morgan comes the

open. is line now Your

line more lot stay guys it’s question. I for it you taking you out interesting mean, to company. be the than Autodesk? a networking Thank of a to Scott, at like to try Excellent. convince would

not. I am

the think first… I

work, enough hard Scott, him. Keith, keep like

a He’s one. good Exactly.

keep tried him. should You to harder have

so, you, for taking And thank question. guys, the

whole bit. want get of given you like seeing faster, to current and two in to it But it more going One kind earlier in recovery have the I little actually guys what quarter, things spreading this expecting. just RPO pace It on. seemed this are business the the here. really maybe are On is that’s you is that corner year like with the again, out a seeing a Asia-Pac, quarter, a turn like thought are looks for come of guys you little you a little was like turning the color might

which look So that us a carrying of modeling their need lot normalized we the some in ahead into into thinking of as T&E are one, business, the of talk we margins latest can they give shape to there ‘XX? to when we in as on to the expense companies due business the of on spending of Autodesk and give about then lower that what’s should kind COVID your big back we more total commentary, that to of ‘XX? just and in garner spend and be able component thinking efficiencies environment. we And you overall were savings saw recovery that this kind year Is get year into assumed FY a a FY

Yeah.

and start Andrew, add So, you Keith, can to I color will it.

are rates. that’s countries of we terms a we above and are we at level where to are In specific we what are where activity recovery. already alluded seeing of it of seeing seeing, and Andrew pre-COVID gave recovery some the

APAC earlier been has standpoint. that from I think us APAC. highlighted for someone strong quite

a second us. but activity half to expect improvement good economic see line improvement -- modestly We we as are see see is for will year, year recovery by out continue I I economic improvement. seeing pretty think, we am expectations environment it’s clearly The or Continental be the nicely at straight next we and that to improving Europe the recover some going will to and will see the that given will a QX continue especially well. will continue I that our look of as we not we sure current wave, and to benefit

that’s this look growth that what have on with think next loaded early like year. part being growth of we guide little at given midpoint more revenue I XX%. think and revenue what has in you for back-end the a about will about XX% full the So of with of line as you be QX, the QX year op see looks about again, at and margin year

growth next will margin at of you will increase out grow. see Revenue from there there. those looking both increase think I year op from and will

virtual, COVID specific have gone that same as Obviously had for expense events savings we savings think, has the look think, spend have at everyone a the I had. has -- more On continue. travel I But we T&E savings, big been will us. that

from amount offices. modest We have the our had facilities, of savings our of operations

that near headwind. year, don’t Travel in at to come we to next a build expect As the look or say, anywhere will such in, it return. be back our to expect I that was significant going calendar to course where ‘XX. year-on-year of don’t I XXXX fiscal are But it let’s we budget

final nothing if to have think agreement. face-to-face don’t get we to that with I customer learned, else a have you be

to face-to-face have done done the need things get to You don’t to internally. them be internally get way we

from to year significant T&E. It it’s think savings ongoing going be So for headwind step spend. in but will I a up not will this see to us certainly on we continue

helpful. it. Super Thanks, Got guys.

Keith. Thanks,

Thank you.

comes the next question Adam Our of from line Borg Stifel. from

Your is now line open.

on of for question, course, and guys, and thanks taking congrats role. Hey, the new Scott, the

announcements a AU about Autodesk talking and of little Just more coming some Build. out on

base how do XXX leading you the but big you going with are and that forward BIM PlanGrid. installed mentioned have on You

quickly to Autodesk for follow-up growth? So I for expectations just much. Scott, the the of Spacemaker commentary, Build? on path what kind on revenue a acquisition, migration any And was looks those like assets as Thanks maybe curious so

right. All Yeah.

with the let path. start So migration me

ultimately actually we because They It’s lift huge customers it. that way and for heavy from not of PlanGrid’s really is whole application. are the a PlanGrid migrated for on the experience. innovation migrated PlanGrid, at a huge stack built those So mobile to good the and Build. value-add

did mobile we for is what experience experience PlanGrid Build. So the the used team we and PlanGrid as the basically

is move heavy to a build progression lift. not as the PlanGrid is So a from

we are of Field, tail long are Those Field. on to that next-gen to a have Build XXX migrating we BIM BIM right, sense go going an customers them. are created shift makes they we is projects that what projects. allowed to pace them and a sunset done as for have XXX customers you Now time over be at But that onto new have environment

you with organization We success have on whole and how time. plan a got our master over move they construction customers

less gen BIM Field, which not Autodesk anybody It’s it’s their plan customers. where to people have people we for well-crafted on much BIM move got a for move of but built a are a -- people. we heavy who Docs more on heavy force PlanGrid XXX off are how of next to of and time, lift lift for going smaller for of ahead We these XXX lift was Docs are a is that

some the Adam the a but know make by got at super I you have see a it’s growth change I at it, if should Spacemaker to that your of chance call, sure out you take next and effect technology, a next recommend though. not away acquisition. we of talented we and will couple exciting to had But question get This And Impact super I people get products to that I’d that over it year-on-year, mentioned there’s to year. actually will one another on ratable, want going are year to It if have highly earlier Vault, to us a did be past, There’s excited small a the obviously revenue it’s slightly didn’t dilutive products, on that up upfront is for right? — in don’t am already and into with AU, expectations one, in The thing built of about recognition. I tremendously all financially to and it. look that our probably picked I almost slight revenue that’s the be get Spacemaker, talked hurdle have terms headwind and nominal. is it demoed you our the we from a really technology

that We product. have to work continued on

the first because the have of that gave rev revenue your the early into low-double, being I are view to you kind next But if it’s ratable based Vault point of growth level on of that, of a year fiscal I ratable, rec XXXX cloud are already in one mid-teens the next of looks of it but bit more I of the like the into and part that incorporate compare We impact already full in headwind rec of is detail, that normalizes Again, about rev think built that’s built a building into a things built points from view and that it year growth. once equivalent. do bucks for will functionality model think to flip you that’s much low- of early continued obviously, to ‘XX. Vault upfront that

Yeah. Great.

I will make some…

Thanks again guys.

forgot convergence make of represents Spacemaker comment segue into just you on learning problems customers. of Spacemaker real on that to cloud more that. will machine because one I solving to perfect I our compute for SaaS, But kind and world

connects on over the the and see deeper time the it of process. expands business parts are you with impact think our accumulate to and as itself I as technology going other Revit

stakeholder building a decisions One build of all constituents environment infrastructure the about example big are the successful and change big design multiple also these on this I And making their with of owner, It’s decisions customer decisions. is have ultimately they more controlled. sustainable way this, or the things is and in Spacemaker the the developer they managed real investment and people how make perfect things together city team and sure things time love of their impact profitable. come have the built. city in more is the that’s and architects make to making making That’s helping the how for philosophy the more planners objectives

for this. look their our out the existing with products see which we parts that parts its process, organization, and to starts builds other moving other inevitably hooking starts team So expand into over impact as of time into acquisitions always of like

we with a coming see There’s that lot of in. synergies Spacemaker absolutely Yeah.

again. Thanks Great.

Thank you.

from SMBC Koenig of line Our from next question Nikko. comes Steve the

Your line is open. now

it. thanks us in, for over Hey. squeezing Definitely you of me the done Terrific. work all years. have for best to Thanks appreciate appreciate and hard Scott, I luck And you guys. the it. for

you. Thank Yeah. Thanks.

Cool.

what roadmap communications those engineering the read And So I quarter on just one pretty that for focus. if hasn’t in customers and asking the architecture letter subscriptions what and to had it? very I am maintenance design, asking been get may to guys collections which lines there’s thoughts written? transparent what looking They with at call are you of transitions named doesn’t like what terms seems And for that the little thanks they seem the last about the -- lot Andrew, there frustrated today love and talked I’d just they between And to communication, hearing customers how it were on the like been And of terms of through with doing a and be you also customers from seemed bit was gap accelerating a going I this to about ask very between now will are you misperception the just a call a dissonance had and clearly today, question. that bit your for? on asking is open, much. from some have why users. were in we in in

dissidents. there’s right. no absolutely Steve, All

take choice well the communications, communication in construction ahead investing you map said road of and functionality will consistently from for customers, these Revit we the architects. the to right, not in made because of started in I we is, One for a communication think Revit deliberate in and invest these back things I all I in

architecture made I are thoroughly at investment And year. think end segment quickly actually going several architects, customers we on of of squarely Spacemaker these right. spent the just are So targeted to our the are are of all from to the see we something, to you and is missing start additions million space, and last $XXX changes architecture at right. all design founders Spacemaker and Revit the

Okay.

like said, I edge, is right we and something we act. spent this have this and technology It’s in been on right to the do for This is looking of just while. a lot at money the a

maintenance with what And that upfront have maintenance done focused migration, is of under where customers able us. have of of -- happily. have with that were migration changes where along going So that of them more other no Most of those got solutions. the we because expected reached some million some X at here these added to than we of look, of afford there’s started come tale end are this customers. the something have of terms in with and customers we when the come cost weren’t never before, are. with the no solutions us we But we dissonance are our to the with you two -- to are regard we to along millions all the not. same frustrated With time We

that customers maintenance of yeah, been with are yet. transition. not They lots us done So, seen have have

X than We haven’t we retired all less yet. those remember But million started those. with of models

fraction X over are million those of A from that base. We subscribers are right maintenance now.

as at seats, to how of people AutoCAD, couldn’t industry the look us. picture. value journeyed those now. have model. adding customers, let’s actually many story That’s us well growth high remember, with firms, we companies, people transformative to much less terms if are and more have We reached so of on the the so have perpetual individual so and the many people with years would Revit, to they extra that big so five architecture picture that they seed in many a understand big it’s here that architects, spending couldn’t who add that able many over frustration they many as get afford small are seats the in But than afford and I many I maintenance empathize started customers more so so of

let’s So make picture big stay focused on the we sure here.

Scott. appreciate luck Well, thanks to the Cool. and I you, your again for open Good communication. thoughts

Steve. Thanks,

back for turn I time today. have would over like for closing all Q&A to is the we remarks. the Smith Simon This to call

and Thank everyone, joining for us today. you, thanks, Gigi,

have are many of our reach We us weeks. you you to few next any looking at forward Thank you. anything to do ups This today. call. follow conferences this if concludes Please on seeing call the over from out

Ladies and gentlemen, this concludes today’s conference call. participating. Thanks for

now may disconnect. You