Autodesk (ADSK) 24 Nov 212022 Q3 Earnings call transcript

Thank you for standing by, and welcome to Autodesk Third Quarter Fiscal Year 2022 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] Please be advised that today’s conference may be recorded. [Operator Instructions] I would now like to hand the conference over to the VP of Investor Relations, Simon Mays-Smith. ahead. go Please

good to and of for our joining year Thanks the afternoon. results call discuss quarter of conference XXXX. operator Thanks our fiscal third

Debbie Andrew On call conference broadcast our me line webcast. being Chief are via the CEO; Officer. with is and Clifford, live Today’s our Financial Anagnost,

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

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

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

Forward-looking current this is call disclaims or statements made after are call 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 the any statements. as during If being Autodesk revise

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

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

by solid performance. our a high our renewal and Our a rate one third quarters revenue subscriptions, new subscription competitive net range, results the end strong, best-ever of rates, record for of retention driven were quarter towards

grew tougher and also the respectively, year. RPO despite a of the We and quarters, than quarter third first improvement expected. during XX% we second rate last XX% versus to compare the and more billings Relative decelerated

is for country-specific making to chain projects, and in and customers a disruption disruption staff AEC believe harder as and shortage are documented it global deceleration, pressures, flow robust, demand to labor our the contributing While new resulting COVID we well of to the China. supply as ebb inflationary

Our conversations reinforce channel and with customers view. partners our

drive a We’re encouraged customers. that transformation for remains priority to efficiency embracing our sustainability digital and

and enter solutions, flexibility end-to-end competitively and Our customers more position ecosystem. well model remain to business in us enable our and platform

at develop heard opportunity As and at process. the role software and deploy sustainable achieved not we how insights affects and from drive and, began our sustainability the consumption you the optimizing sustainability first issuing our quarter, linked quarter bond our goals of acquisition underscored our our recent on Notable needs business increase The and retrofitted in third our and milestones Forge investments the automate we recent are Climate tools combine efficiently Panel to plans by our technologies, like also Change including to to connect the and be Nations that be model we recent This Investor meeting both Sustainability unlock to valuable for the Innovyze, to launch Climate reducing report manufacturing. to construction innovating of for Many and processes, platform. capital. This earth’s Autodesk example but to cannot the and effectively atmosphere holders and made through ours principle source or already organizing play. in ahead. align to designed, our the many cases, customers United Change of Flex our our debt end-to-end and equity sustainability during to Glasgow Day carbon in our align urgency included workflows, the how we needs COPXX in the capital, University, in largest of rapidly without through corporations, everyone, just holders Intergovernmental goals. realize our

Now, let take come an I’ll call Debbie for the me details the growth over you update to to of initiatives. guidance the strategic financial performance year. provide our to our quarterly on turn then through and back

Andrew. Thanks,

to to As accelerated results in growing increasing new in currency, that, and our digital growth Several XX%. XX% subscriptions, product and constant rapidly Total quarter in with said, including Andrew growth quarter strong. were revenue the robust sales, subscription contributed revenue by third XX%, factors expanding rates. renewal subscription

revenue XX% at revenue Across enterprise broad-based. both, APAC. last grew strength was XX%, XX%, XX% M&E in manufacturing AutoCAD to AutoCAD the saw revenue, year, revenue XX% revenue the XX%. due LT of product, in and XX% revenue grew revenue Looking grew the and by XX% grew grew from AEC Americas, XX%. growth revenue and and EMEA, Direct we our total and in increased from represented up e-commerce. XX% globe,

about new at channels, through As customers the of strength experiences. reflecting investor Autodesk are of digital our day, three our simplified our you quarters generated to heard buying now

toward demand to reached product our underlying XXX% comparison reflecting versus Billings we including year of Our range. tough $X.X current XXX% of $X.X and revenue respectively. last RPO a renewal our to and signed XX% billion. billion $X.X grew when net billion, our the robust increased XX% highs, revenue a high billion largest subscription end grew of XX% rates XX%, deal. nine-digit RPO retention and to was record rate of $X.X Total deferred two EBAs, and Total ever

reflecting while delivered X discipline. revenue percentage operating gross XX%, remained to strong points approximately Turning and at non-GAAP P&L, margin broadly to to plans. to benefited ongoing XX%, non-GAAP dilution million $XXX payment pandemic-related we the increased healthy level shares flow offset term which cost during our against growth Consistent capital year, repurchase cash from comparison equity margin tough by free our the last strategy, quarter with of allocation extensions. from a from continued We

average X.XX third $XXX the we shares million XXX,XXX $XXX $XXX price per million purchased we’ve total share, share. at shares at average million. for an a spend for of quarter, approximately price repurchased $XXX Year-to-date, of of an approximately per During

as forward, said, opportunities we’re ahead. optimizing business the innovating Andrew realize and our rapidly to Looking

of make better last we multi-year to billings annual predictable the quarter, discussed free more which time, move will realization Autodesk will As valuable more shift contracts drive and over ‘XX as fiscal cash we flow a company. into price

while optimize years cost maturity structure to steps profile debt took average by our of weighted extending our first bond, we our strategy goals reducing XX quarter, which our points. capital by capital by issuing sustainability sustainability our with also debt our two and basis almost aligns This

QX, the footprint As we we’ve to we we has enter pandemic changes a steps in reduce intend to moved our hybrid the and work spurred way workforce. to real-estate take because

be and we facilities As recognized months of XX% will our will which execute to that drive a we facilities result, by next the we plan. our worldwide costs square the we to and better our portfolio our take GAAP-only of anticipate as growth. several allow further approximately strategy Optimizing million, over up deploy charge to bulk footage will of a capital will us reduce the $XXX approximately

remain in Demand guidance. to was Now, finish it me QX. we with robust QX so let expect and in

and labor said, are pace a flow recovery. as ebb and of shortage, as the COVID, in However, macroeconomic of impacting and AEC such headwinds supply disruption the chain resulting Andrew China global our inflationary pressures,

short the versus our COVID in an comparison as fell than strong half approximately that, and QX, As country-specific tougher expectations. we subscription XX% QX, volume suggest. last dynamic and chain, of a seasonality example, labor, drove a macroeconomic the billings which in approach in more growth decelerated first that assuming challenges of mid-XXs product pragmatic would QX This new are this will normal growth the percent from In and supply persist. we’re light nonetheless, to in is taking enter uncertainty, year

our As cash we’re and free mid-point $XXX million respectively, a million, reducing result, for of ‘XX. fiscal by approximately the and guidance full-year $XXX flow billings

nature our our discipline, visibility provides degree of of broadly the strong model revenue business of of us unchanged. continued spend our greater the guidance subscription full-year is Given margin and mid-point expectation and near-term and it to the

FX million in about the what cash volatility first created today. last a headwind in moves on in know then flow. we further rate free current in ‘XX to flow. the growth half We in that to continue the But XX continue $XX Since moves about we and Rate $XXX another potential target days seeing cash the next to year, million $XXX to transient. of are cash dollar based because about potential in if currency deceleration of target we’re strengthened constant $X.X to headwinds fiscal factor. through alone, created believe risk we of $XX billion the million and potential see headwind ‘XX is macro year flow fiscal could million, big

it’s persist risk but current watching that closely through obviously We’re in flow. cash could materialize clear free if FX the next that rates year, rates

Beyond flow, low point. you and Day about if could ‘XX account, CAGR could at risk of further take be impacted into the revenue at end Investor the up talked growth by we fiscal end about cash the margins a

metrics macro visibility course, update potential flow growth to double-digit our any will, from a call remain XX% growth the expectations. to target cash annual fiscal about outlook. and ‘XX or earnings growth compound impacts beyond spend to These when back FX on we We continue to to have provide expect ceiling revenue in ‘XX, margins We you. are revenue a intended operating movement ambitions and to non-GAAP of fiscal on our optimistic to growth growth, into more XX% floor double-digit you our a our range, Andrew, our next basis. on free

Debbie. you, Thank

innovation model solutions let us has customers growth connect And through purposeful changed me serve initiatives. strategic relationships partner. transformation software strategic industries to that to workflows, vendor data to create our and is our digital turn evolution. and with and in enable we Now, more through that cloud-based end-to-end, business from enabling value the Sustained our to

and management. digital we Our navigate product adjacent By grow, helping through from engineering, model product scalable and and extensible and manufacturing lifecycle our and will and product into through and verticals, customers owners; construction architecture data engineering, from is too. their transformation, grow

Obayashi the years, largest it accelerating sustainability. third a with consolidation greater the monthly which In is Japan, last the Revit, an Civil Bouygues leading Autodesk increased over France are XX over and their construction example, globe. commitment significantly as accelerated XXX,XXX around and they platform XD expanded average of in to EBA quarter, significantly In the its following us. construction countries worldwide, XX in Colas For technology BIM infrastructure to one across XD and and firms in flows quarter, three operates third efficiency firms unified users. increased which digital such work employees BIM Similarly, construction countries with Corporation, and to enable in AutoCAD move global and products Construction the its based operating

two doubled the than it Cloud Revit its usage workflows and design from users Over years, has Autodesk number last expanded connect more of through of Construction the to construction.

introduction into our extending the the with and We of are Build, distribution further partners. launch recent Autodesk an account-based reach of pricing mid-market through business our model construction channel

United ENR teams the example, long-term for Construction accounting around For general its quarter, to States, Jacobsen increase single Company, partner efficiency solution. integrating in solution was field seamlessly XXX and would consolidate looking this that a its project while contractor also an with technology the management of a

ACC functionality, Autodesk While opportunity competitor solution cost it Jacobsen so, because and opportunities features integrate to Autodesk or technology. some management capabilities operations, and two of the it ahead. for robust the Autodesk had pre-construction optimistic bundles new and projects, and Construction field about Build’s used remain a previously Build existing ultimately the for With launched smoothly with launched Cloud chose construction and months recently we every

in too. dots the infrastructure, connecting We’re

efficient ADIF, ADIF offerings competitor Administrator selected information, example, Autodesk of Backed of digital collaborate products its our will For coordination for Spain, an development, leverage construction their Autodesk remains transformation. Infrastructure to over the Railway globe. railway ensure Autodesk Construction Cloud model network. data to on-site environment, and by across on the or Infrastructures the common important accurate opportunity to support in project and

give more horizontal needed investment and and sustainability to Much across globe in in of like additional well which and the of Transportation Department which ability efficiency efficient the accelerate digitize as consequentially a construction, of productivity adoption aging long as and the end-to-end our advantage. and and become of enable competitive us digital should bill, provisions seamlessly the the increase workflows the infrastructure in investment integrate Our the infrastructure infrastructure all more ADIF, in term, United Perhaps design States solutions, vertical to sustainable. will customers boost their encourages U.S. economy. processes, infrastructure restore and to

beyond automotive, and factories, In OEMs this we down our as to design work cycles. manufacturing, our strong the and and to to in silos connected footprint, Turning grow quarter. design shorten studio sustained hand-off we manufacturing break manufacturing seek automotive momentum continue portfolio into

Build largest EBA users the Inventor one and third the in the quarter, in world, renewed Ford, AutoCAD, while Autodesk in to access growing sales in again with and and over. the facilities its Construction Autodesk of expanded Cloud plant during and systematic promotions, and to automotive with drawings ending Autodesk and commercial operations design and change subscribers without any manufacturing, quarter and maintenance Alias XXX strongly Navisworks Fusion OEMs field during VRED manufacturing of enable XXX,XXX subscribers. equipment adding grew

accelerate is enable company’s make are Manufacturing Fewer enabling company. and advanced new Fast major including are Nesting manufacturing Cloud Platform potential capture certified interest growing software our and in leading products. market combines and move Design, and extensions, performing several Fusion our design our to Radius simulation Generative the design, days, there early promotions is customers a to & and Machining, already for more supply microfactories that still uses Fast and of Autodesk proprietary chain us parts. Fabrication digital demand and and upcoming opportunity extensions flexibly growth. extensions. While The XXX’s well its Radius

workplace. Fusion This additive resulting and with Radius Machining existing and that times. Fusion of will parts Fusion faster program quarter, into a education fuel the Outside future. XXX the support it rapidly its taking quickly, operation use, to its alongside in in of ecosystem Fast more growing large commercial the variety commercial offering. product CNC and These enables Extension XXX to added usage it wide cycle a home from manufacturing is in-house there of XXX users integrate are

million inaugural University Boring Not-a-Boring with XXX the TUM this XX% users, than up measure applicants more active X finalists And team to As Munich’s are XX they one amazing XX, of Competition. September Technical ecosystem, some over ended On the quarter work. we third the doing and of monthly beat year-over-year. win

of operations, pandemic collaborate five and aiming the by year, As to enabled Haokun and XXX’s one an told XX-foot “Fusion for solution cloud-based Zheng, that Throughout machine. award-winning we long, the industry tunneling were said: during the team were XX-ton project repeatedly leads timeline our XX-member experts design responsible remotely build for and was enable our more workflow.” enabled impossible. Fusion participate productively, the continue through integrated efficiency ecosystem of FEM business and of model our But initiatives. the design simulation borderline ease innovation CAD, in finally, use improved CAM And and to speed rapid we more license to XXX’s and compliance and users we

standards sustainable adopting a design secure its increased streamlining Australia, digital and a sustainability been more Across customer Autodesk, efficiency a solutions single And example, employee AEC premium Autodesk license our own subscribers the across across building third for enable Middle a has number than East, engineering its of provide on fragmented in it the the while more also BIM better than to and compliance offices. subscriptions base. in offering an quarter which seeking added undertaking by ensuring year-over-year. to manage increase premium workflows to telecoms multiple more For consultant transformation XXX% in company sign was decade, large digital and

the period During two the are speaking employees, with resulting the when and investment compared years became a the and partner the right ahead, there year-over-year. are future. billings process, we whole we and compliance and future twists in ways and has in are transformation Year-to-date, a in almost partners Collections, pandemic we pandemic. as agility confidence turns certainly optimistic many will of to on And license inspiration Max. the AutoCAD, up innovation, across determination, very XX% path. choice Revit, same and trusted Autodesk have that increased demonstrated the accelerated on and In road the my about They the AEC XX% Xds ago while and and grit customers, during be significant

Autodesk’s and to reminded achieve purpose are technology and again significant with sustainably. can in urgent. enables we that I innovators opportunities am design-and-make Together, also the future. confidence that and skills meet they of these build been water, of posed waste access like manufacture the also to new times Empowering have well the so challenges challenges we them equity questions. while confidence We the challenging underpins open year more possible this Autodesk’s role central Operator, my advancing executing important believe never efficiently us. in can only by in-demand has or carbon, future. ahead and meeting in and and the the we now would for my call to

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

my here. Hey, guys. questions you. for just Okay, with great. maybe start Debbie, we’ll taking Thanks

like FYXX of the some parts, the I’d given moving zoom on to bit. a Just guidance in

this you wondering just specifically? change what drove chain in bit You your just could on cash the about and talked go I if free flow guide talk to level in FX. little can touched But, deeper. and a prepared You supply remarks. was billings you one about

Just parse help that make Does that bit. a us sense? little out

start It does. we’ll think with Andrew here. I And

Yes.

I and will on this. team kind Debbie start some me Let of and of tag then here

So first the right. we all set kind of make is on off, strong. level All Saket, let’s business sure

You saw the numbers.

seeing We’re tremendous growth.

record seeing We’re renewal rates.

important net approaching high end rates good feel retention guide, is to pretty of going. go they’re about at business where We’re That’s our And and revenue the continuing here. we up. super the

is and business a the seeing So, strong, lot we’re strength of there.

that, just pragmatically that’s partners. going this to and point the the then looking guide you’re we at what at what continue to at we’re translated QX. monthly talking in into channel by and assumed saw about that’s in saw a squeezing of terms And there’s what on FX look opening customers kind quarter looking risk. kind our into and of look, customers around If is the by of this in seeing we margins I of the of Debbie our One, and of at some seeing year, going assessment going in guide we pressure If things quarter, with terms forward several of look that kind reinforce We the interesting of pressure, kind we which pragmatic on comment going next were associated And supply and things chain in things. in, and that QX. want two the usage you continue deceleration kind all inflationary of into potential we forward, is things some environment we said our to saw what again here, presents us to that. hey, of we’re we things you got happened some into reinforced during what’s our commentary, active this this assume

flag want those to risks. we So,

the In supply we’re flag large bleed just risk of beginning seeing. certainly we some headwind I’d we kind but the addition, of chain there, all to commentary, opening wanted And year, like Debbie reiterate of if you the a so things in currency same into issues next there’s that the some these over of page about some can said get that. additional on to

Yes.

back about and for go volume for of a me to of was XX% mid-XXs. it ‘XX; first. ‘XX the in that Because the it says all. QX, growth the the our metrics guide, first talked I pretty in half new that one growth, And fiscal then I saw we that in the Let is think much fiscal opening commentary

short It still of strong fell our was expectations. growth. pretty it just So,

XX it’s highlight rate the FX, fiscal is potential been The see we cash volatile. based big cash rate about headwind in in on first flow. $XX fiscal we flow. the we another we created to saw of days alone, million true further factor. ahead, then we free that that what highly know since ‘XX potential And created the to look in And and today, moves million headwind moves about half that did It’s flow. a the risks $XX cash in As last year potential ‘XX to

persist if obviously as could next closely. materialize current But year, risk imagine, watching it’s that clear So, we’re rates cash through rates you can FX the in flow. free that

overall, numerous highlight on just was to growth important the ahead as is to year. over term. it’s goal the risk look remind next capitalize long working, today and levers the that have But strategy to we to we Our

a because path see flag. next Not we’re billion that’s still seeing today flag $X.X currency a we constant time, thing given risk at prudent We want a path risk think to right but to what now. -- to do this guide. these year, we It’s

just think Understood. maybe prudent. And the for I follow-up is Andrew, that you. for

and numbers maybe and think Just of as the after. start the year from zoom the parts we some out to moving about years next

love just for the be now of of an just talk things U.S., when you the you of about and One maybe the think particularly customer Autodesk’s we to the in have bill couple start benefit that see to view can infrastructure a get that is, could on helpful business, we in your your some components base? that you feel I’d

Yes.

off, let’s that clear. have play multiple over talking okay? These years. we’re or anything built bill. guidance very things This in So first infrastructure don’t We of any any be out now, is uplift a our right great about

things is really to a this a in it’s the digital these Transportation. bill But part play of it. happy that’s Included good thing bill to accelerate fund a investment long the feel for in it’s change We We’re over from term. because important out Department an that ecosystem. of going and perspective million our see $XXX tools to

storage We’re invested water, terms in lot. a critical things, water, infrastructure wastewater because matter to of of big is we water Clean water these have to certainly in processing, a really deal. of fact happy that flooding going these ahead going management or about all investments is in the water water be

right industry wait we don’t couple increase a the pretty we see couple and excited going growth expanding into see engagement about next to And going pay water we’re things to all our and coming. projects in we’re but -- in our want we years, clear water of is the over inside over to This we’re build the make some probably that a infrastructure to time think over States. And an I here. years. and it. to But absolutely I the investments So, was off of our bill see how these and period transformation United long happening we’re want rail will that digital our be of to next out going multiyear these now, numbers the play sure in on important modernizing in what’s emphasis catalyst infrastructure and road,

Our next comes Stifel. question Borg from Adam of

Your line is open.

Andrew, I’d love just go was about. to on step maybe what of another kind deeper Saket talking

of For has an impact gotten has example today what’s issues uncertainty, direct talked we’ve about much higher the again. factors where an like like unwinding the uncertainty talked of year, maybe and that. give several bit impacting Could having be we this pricing close of to example just of inflation about kind certainty deals? talk of or chain or more it happening sounds or would a from two really -- Just is you ability a great. That is of how even like little kind on supply help about

it was question. an excellent Adam, Yes.

of we some kind saw to we were the heading rates of back seeing ago, up too, strong projecting strong a for ago Three we renewal in, this. get into sense so look rates, set let’s strong context renewal those heading So, rates. months renewal months of and kind like quarter the three that

record rates. renewal We’re at

continuing things. We’re to those see

into quarter. increasing also robustly, We the usage active saw heading monthly

see. went on expected didn’t negative that progressed, to we at a and the monthly increase it second to us, kind quarter As to of the It the continued grow. little active It’s accelerate pace bit. usage decelerated derivative continue just in

supply actually of also all that? during have can What see you all inflationary throughout So, a robust. and the lot our continued in the For on to and is right indicators. quarter. backlogs they’re peaked what’s They saw they’re and quarter, seeing persistently of pressures business the able than these it book more And quarter in demand these now. customers, driving you indices the the the fulfill chain

and cost your to and while because you’re going tight have have of you’re pressure labor the AEC contract, or on existing big to see working projects, bid deliver So, of is a fixed cost margin is actually and goods book on that constrained. pool they up, say ongoing project you’re labor your your this they side the business, as if going on you’re is of

seeing it’s behavior you’re pinching these factors buying at and your some all time. affecting -- So, your margins increase

robustly, this with continued grow in we forces, we just including not environment, even So, that, where actually the and expected labor associated shortages all to. saw these we where of things to

if you’re manufacturing and which very relative well did to fulfill there, the noticed they’re side, you they on the all not their on Even our heading especially businesses. we able demand to Now, into have competitors. of

not the shipping getting from cash customers. they’re not products as they’re because they’re So, ordered fast collecting that their

around So, all stop certainly of expectations buying it to out. and slowed make but relative from in people these of sense? technology things activity are technology, people buying that our playing It some investing didn’t down the their portfolio. Does

at just we bit little a Analyst earlier you was some terms, call. it talked follow-up. changes maybe really referenced the that quick around Obviously, as about Day, a And Yes, and in billing helpful.

changes explained kind kind that Just as customers of early has curious how with to you the of been receptivity are them coming?

Yes.

We flow out by terms free pay pretty us. have don’t These types don’t our are with to is to by transient billings of pressures, over of chain things any if business. unchanged moves cash Also, regards our with are they or upfront smoothing believe of not regards in to this trajectory they view to billing been this. a cases, right We are about around prefer want multiple because years to it’s right supply talking for believe generally be these they the our for positive look, things we’ve persistent changing So lot our customers. and is Customers going to. these annual most have things.

fairly these view So, customers well.

Our transition. these that plans partners anything are all are those relative we’re now, on getting of But, completely activities it’s themselves ahead seeing right right steam full around unchanged some and to now.

Please question of comes ahead. from Our go Griffin next Jay Securities. Vleeschhouwer

telemetry, Andrew, delta start terms But points circumstances. the said with operational or circumstances do to let the You of some And I perhaps usage to that you’ve be with can in a me Autodesk. to having at recoup you of, fiscal for think take changes Do let’s you to the then, have just along expect current your themselves, some point at you time is, question. guidance are to the feel for you billings given are regard that ‘XX? modified, And what account foresee of amount make? the to over warning circumstantial you made able follow-up having a your be And anything back the now that say, least you to robust in amended way there that transitory. in any you. come system, that that call those updated, need billings lines customers pipeline early

Yes.

first So tracking. me comment on let off, the

we believe progressed. We impact us in of over mean the the because good tracking our quarter is outcome saw there. monthly associated So, active the growth the [ph] and actually usage the as showed it

So, the in it to it wasn’t second lifting the way we half. expected

fact, second I bit. like said, eat In little derivative over a it the change

these of going predictors, actually were mechanisms think on. we are gave that powerful. They tracking us these So, indications I valid. have, still things They’re

customers are the trying labor also, we’re what’s our environment inflationary to sure make with. I more now, goods the engaging and a frankly, bit think tracking right pool happening that with

to of hopeful some that going paying this to up that. some we’re We’re going out signs to respects, loosening There’s watching but be that. in is attention there be

coming Now, business with that possible regards with some that’s the the case. of absolutely it is back,

associated projects a with the at Our all that. of backlog things of orders and customers are backlog definitely and a looking

some think it’s of that as see to for -- changes. information with releasing result that. prudent kind of it’s not of we’re at I could impact declare But now, just now of it back But assume these to prudent something right until things this come -- right have it’s we going ongoing kind pressure. the of don’t an point think that to for possible I a is us kind this

I think we which we put on of should pressures by pace supply chain our the watch at this these customers. all were kind pressure because surprised

Right, understood.

looking you at you something term, like longer said the in past circumstances, for to these Now, remarks last AU about ask your I’d month.

you’re or flex, question to something model time? were that the said my that in to another about consumption is, over you of and fundamental else fundamentally And shift will for of referring Company value." value how way how terms the was subscriptions referring delivers licensing You thinking and delivering simply that besides just "Autodesk

to business co-designers deliver to visibility, They to major the system Yes. we’re effectively more was our going designer enablers. engineer. with Actually, change value value. a value. co-designing become some of pretty model the model or facilitated which way capability between the and lot this these are it’s happy real-time broader and actually us and the the computer data that’s to to we our we really per related visibility, as that not se. more business customers Jay, talking driving a of were well. What changes change will notion driver a help tools facilitate about talking really customers, through the with the going set customers, with the some action allow going are relationship It’s products. be That’s that a Those about. we’re how of The that this business the not about. that to platform with our we’re get the going fundamental to option statement But, product, models real-time There’s system much be with of how real-time was delivering collaboration more

Please Our next Munda Gal comes from of ahead. go question Berenberg.

to in than potentially or one, the risk focus outlook, ‘XX. was first flow how I’d the ‘XX the is The reduced on for is do I you or FYXX a supply all of to momentum way think carry-on billings your so and that chain based understand in FYXX. Is stuff way, lower then with cash to that correct for the rather FYXX you’re ‘XX? outlook and of on all of it translates remarks listened just risk, billings from FX cash to change lower that impact like there read on the The that in free flow kind the that seeing kind into that do free rates shortage

Yes.

ahead, Go is a answer mix. of a Andrew. -- the So, it’s bit

answer it’s a is a bit that Okay. of mix. The

million So, And I model. based risk of our $XXX to of about the $XXX highlighted the way know million to today. we subscription business think on what of to part it it, basis approximately relates

year. the through this cash And we’re of FX. it falling into next that of given free year, our about we’re the other that for expectations So, talking that flowing risk are flow part short billings is

and half. So, it’s roughly half

Thank year. on revenue say, let’s really terms that I kind acceleration whatever deferred you’d of of is just for -- towards also especially of for you. mid falling numbers the that of the revenue that mid-XXs And of you very something of do the changed then, deferred to driving end seem up that. itself a because the in is say, is and away from really just QX we kind that want drivers outlook outlook, XX% this the Is focus or is of clear. the that the of That’s helpful revenues really to like, kind towards the XX%, be different something of The total pick long-term strong? billings in to think below expect billings transition multiyear kind lower of portion

Yes.

way revenue contribution deferred about revenue roughly the being change. the mid-XXs going So, is deferred that we in to long-term and think about not to

we’re this for We’ve into built contracts cohort in with multiyear monitoring in on for quite line an is year front and into what this from outlook multiyear of year we impact year. business then get But, And here seeing expectations. that from proportion strong. next year. been macro next the was our our highlighting we’re billings So, our it risk the even this QX, as year is up

so, And changing. something not that’s that’s

as We revenue deferred And would of see revenue. still XX% follow-on wouldn’t the well. so, is that that that impact roughly deferred long-term change being

Okay.

that change the didn’t have change multiyear outlook so So, have? billings on the any contribution it -- impact you billings doesn’t

That’s Yes. correct.

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

please? question, Your

a clarification just for Debbie, maybe you.

you revenue comment? will in be fiscal to some think that the I about of do does noted your math, ‘XX script at grow XX% you believe fiscal I to CAGR fiscal quick ‘XX will per imply your the ‘XX If revenue guide. XX%, XX% that lower that end

seeing end CAGR I we your next low year, for we’re while next the you computes. materializes said risk revenue Day. the if XX% we’re our And that to year, at revenue yes, Investor math of guidance that specific correctly the on that that not XX% would are of about talked Well, interpreting today, be in at providing our we directionally, numbers,

it. Got

Okay. And then, maybe just one other.

metric, well. all of into how of kind that but on a any kind judge And to sort XQ? at trend helpful commentary cRPO I the we’re business know as I looking as of cRPO, might think you guide don’t

Yes.

that So, ‘XX cRPO But time earnings gradually with that decelerated, because call. in and was and on are that over with entering EBA contribution growth The last time. declining converge anticipate multiyear deals revenue of in fiscal our the of closed that the for growth rates QX. that which year That let’s growth from final to our by term. to mainly will expectations, continue going start something deceleration line growth their timing is rate We we signaled and cRPO also the of over be volume EBAs. RPO influenced it’s

given quarter. rate EBA that a to is growth big have quarter the going that’s next And QX so, on us, a for big impact

Suisse. of comes question Phil from Credit next Our Winslow

side in bit the I derivative, on AEC those house. where wanted in in particularly of just Andrew, a second to changes the seeing dig little you’re the

a did different at lot that QX? has the actually how you are of life in about you where things second cycle in et about wood, When And as nail cetera. life the the in is derivatives, the planning, see that that of in Autodesk that the those solutions the on cycle? you putting parts AEC One thinking world, talked look you

Yes.

slowing So the want coming of things. of And that The were sure to to the that clear expecting acceleration on half that down a was we of second second again, we’re strong. these business I some was make into year. very see derivative the

just can positioned a that be super it’s on down, get decline. slowing clear a I that we so all on it’s to that. want not So,

Now, think to head in going this we of out. terms where is

think active these these we’re to increases to going continue see We to with usage and rates that associated that to continue continue going monthly are grow things. to

we to QX just bet rather in than saw except assuming prudently relax, is was usage what The relieve are just to absolutely a at that the start like retention business But of we that renewal higher what this to wanted to probably continues active If into something brush, safe underlying we We’re improving business the see because see these based an assume fundamentals a The net saw, country-specific The broad could is are coast pressures revenue QX. it’s on monthly -- this uplift issues The changes, we start environment. strong. what for in was highlighted into going rate QX if and strong. we strong. strong. rates rates slowdown the China. to are in

out slowing. other product at you this So, year, pretty there But to note that one important saw of the a want area particularly we and competitive was no something position here. Look I that places. in came manufacturing

to some of We’re the have expectations in expectations growing high our wanted than much more those robustly we of and just we competition any see fulfilled. space. It’s high

year. we how viewing of rest into Does to want the something? clarify that’s and heading now, this that’s how did view the So, right we’re you question, that it answer or your

drilling by vertical, of that helpful. within mean, Thank anything numbers, in out And have but it I help in That’s me just QX? whether no. be you’re sort how the thinking by then, you’d back call just the then, we queue. geography. the obviously, also And or No, geography, about markets I’ll you. by reported go

I’ll in well actually we The that just in about We say, one softness talked China in was specifically manufacturing China. thing highlight, the AEC. in did

So China broad-brush kind impact. not in was of uniform what softness saw a businesses. a all But across our we general, was in of

in couldn’t was slowing seeing. a any that or offset of that acceleration down were point kind in we onesie-twosies was the of kind particular broader It I of impact to saw. different the else kind from of anything country So we

Our next question of from Baird. comes Joe Vruwink

question, please? Your

Autodesk business that about base I’m of new customer as the growing more some all is incremental think curious, growth. growth. the susceptible customer issues understanding on the of you’re being right, macro If the Is the that out? you nicely. moderation There established is to calling detail is of persona I’m key kind to

installed time. the trickle are into at and the starting maybe former base the to So, to I of suppose the starting impact a be, the question latter risks might same

we’re That’s the seeing. different. If we what the that revenue net would we during quarter have were rate been not that’s retention what trend saw seeing,

on keep retention. want And a our willingness affinity high that’s that the to strengthen. at of Remember, focus products their okay? offering. game And upping of net to we regards strong continuing shows back and to If you that our I revenue strong what not So, range it a -- came is anything, often, on. with to end and does kind a does

feels really good. that So,

was affecting who it into to -- be really the So, level, new of Those constrained, most our some long some tail which into which buying most. business is in are environments there’s expected cash this. like flow down business, slow point the kind their really tend bleeds book of at of to the

potential. I don’t bleed over see any So,

of our in growth things. fact, we some of with lot a newer In these associated businesses, robust saw

So, I over crossover a not or bleed a do between see things. these

In fact, net revenue strengthening of base. in the we continue continued to expect rates retention

support Day tough, are chain backlogs technology, be firms be could as but supply bigger was risk being the opportunity. This might topic. perhaps adoption. the addressed engineering Even area, on then, And an acknowledging that it helpful. an technology like Investor again, but a That’s seems also recently, Okay. for at maybe opportunity hiring

being the to and content sustainable? the a model digits double is, the backdrop? given do seats, growth and from think I think how you contribution about the the Would about you how macro application in new bigger contribution the seat side of question growth So, of expect for guess, your algorithm current context

Yes.

we So, see we tailwinds here. that to absolutely continue digitization think

technology if Okay? things of the and working. these see Customers of double-digit And around to absolutely things. strategy growth and some a of turning lot problems look going, are we’re wrestle these with solve to you you some where at

business to don’t reflecting the the to things kind let’s which some you notice in and setting some of and year-over-year, of the two-year things. -- growth Also, but period, to just compare these normalized the is times, I the did I nice XX% many XX-year in want with of the wanted we pandemic, a shows like our XXXX grew this strong a the in around pause, say floor of happened the off, that’s XX% the some doing slowdown revenue. First and COVID on and that we kind of We noncompliant growth too over growth. steady

the you you really a of see if look well. So, lot working at business, things

trends be growth, you telling and terms to digitization that us are double-digit of look long-term continue, tailwinds at additive is contribute the are the want some the there, the going Now, they if our in to of driving deeper, digitization. largest in construction instance deeper And adoption go and deeper, and with more strong EBA largest more, we’re customers in like for GCs. seeing customers our

Cloud or Construction We’re strong Cloud of more deeply adoption integrating of into Construction seeing some these relationships.

and talking some look things and the about drivers types regards capabilities long it’s at model, the with model. say associated, Flex I of to were Flex then, we you business And the early terms with we the of new early incremental If of make of always there it’s when the in with really want sure growth about continuing users. model noncompliant to while days subscription talk see days that we some models, we’re tail, to strong

with we exactly to Flex things the seeing is of One see. what we’re expected

large seeing in We’re of is Flex business net coming a new. percent

these like time People continue. another on to as of offerings this. And Flex, bought expect classically products, buyers. Those use coming we products in going experience to business using Flex more previously. trends trends advanced with we weren’t and and goes trying with that licenses people kind previously. to of want those trends of occasional they are more as get we exactly the network see And chunk usage Another chunk where business

So, They’re working seeing of gives ‘XX, beyond, ‘XX wouldn’t transient have now? forward right but the into that we’re or softness not terms now. drive have is pursuing. move us obvious. now, is that pursuing the showing what Is that’s and right was we’re them. I is things They’re right something we’re ‘XX everything are right we as confidence working. double-digit growth to all And and If working, things the Everybody doing working seeing everything that then is we’re I impacts the systemic. now FY in confidence of

pass. These in systematically You terms what’s them will on is measure question will they when can in going The of pass.

Sterling Our from Morgan. JP next of question comes Auty

investor, Andrew, supply you if pressures to constraints, the were you an headlines starting handle the all help chain looking put when seat alleviating you and we’re to us would upward monitor But inflect the the of yourself again? seeing some in possibly a at your if on be is investor, cetera. business these of are to get what, et of

Yes.

Okay.

be when pressures tell you are we’re... to to I’ll me predictor of these chain So, the kind Look, of you’re what going some asking unwind. of supply

I’m it’s better... I’m are the data some asking would asking signal a what No. time. that that not points of getting for for

Yes.

Okay.

of data is look, one the of freight. cost we So points at look the

you’ve So, has -- been regards up compaction of and with been seeing people instance, up freight moving this for cost and the as are capacity things. up to Okay? going

So goes one metric freight and soften up. look say, that’s out at that’s you one thing if and and a That’s is down, there sit hey, sign if just cost to of that’s there. the that flow-through throughput starting

The and some to of are make starting sure is chip think commodity interesting the impacts. of with have that these look kind thing to and I XX%, is associated your execute? materials look at I wood Another the do, deal. but I XX% big contract, it’s know of wood XX%, cost of fixed up our on freight, bid a your So, and up cost the loosen together. and that wood The that finish wood-based assembled commodities customers a with is some regards or you direct ability any the of really AECs, thing to core goes in If shipments to electronics of I our to some going of what you Right? of machines is cost manufacturing doing mean, last that costs people cost cost going mean, to the the manufacturing those actually is have at things that wood. true, allowing impact. of sounds of and take into that their

wood being and with these building commodities can there, the see cost are So, of in some all are that to cost of out associated of being us things The freight at of front. the going. things up things right look how

for of follow continue look us, other usage some the probably because people at indicators We’re changing. will make with active predictor to that’s of that Sterling? that sense, monthly products, going doing these a the Does more to and

you. Thank does. It

welcome. You’re

like to over this remarks. the At to Simon Sir? call I’d closing turn Mays-Smith you. back for time, Thank

apologize. with repeat everyone, forward look We’ll myself. next I was you I attending. for Sorry. catching muted. quarter. Lateef. Thanks, I’ll you, to up Thank

the If a much, team. follow-up you do In very happy any have ping and have IR happy questions, Thanks the meantime, please everyone. Thanksgiving holidays. very

this And you concludes conference participating. today’s call. Thank for

disconnect. may You now