Autodesk (ADSK) 29 Aug 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q2 Fiscal '25 Autodesk Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Simon Mays-Smith, Vice President, Investor Relations.

Thanks, operator, and good afternoon. our Autodesk's to fiscal joining quarter the for of results 'XX. you conference discuss call second Thank

On the line CEO; and with me is Rafael, interim Andrew our CFO. Betsy Anagnost, our

outlook Actual events results we forward-looking will our During refer materially. or assumptions, our SEC this strategies. statements, filings, could call, including including and products, and Please make to differ related most differ Form other from press release actual risks and factors recent statements. may today's results in Form for those with to XX-Q our forward-looking X-K filed and our that the cause important

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

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

and first to of the transformation We XX% secular our workloads for accelerating welcome, launch finished AI model in to out reflecting year year, down the Real-world markets momentum expected and opportunity, Manufacturing Once and Europe resilience, we underpinned transaction transition sustained and you, guidance and raised disruption of constant to smooth AEC, periods the driving year, trends. discipline new the March September. digital the our Engineering trends cloud have these in launch full supply North business remote June Western in experiences are the growth and from collaboration America These Thank quarter connect the currency and Simon, siloed and secular in in Architecture, or everyone, the Entertainment. delivering in to the end-to-end. are and seamlessly Construction, chain in growth to and break again, the half trends revenue the from and call. of laid performance. In customers Media in reinforcing second strongly, in last both data

strategy are secular from aggressively between of industries. We evolution, pursuing transformation development unique services, benefit growth including and technology evolution, the business customer enablers end-to-end as these our and such to and trends, next-generation experience digital model convergence

with pursuit growth provide Our marketplace. and investments to in in support cloud, valuable developer and enable and a connected and ahead solutions Autodesk AI its and ever customers opportunities of and these broader our ecosystem more peers platform, of customer much to

a approach To and have economic been and the ecosystem and in sustained free our investments to The broader previous significant focused support to by we And quarters bid more for and our capital geopolitical, our and activity the throughout deployment of subscriptions revenue, cycle. Hollywood Autodesk with key the These on initiatives and flow cash improvement, we margin platform serve to create our customer expensive mitigate margin channel momentum of increased resilient. business policy, customer macroeconomic marketplace. realized benefits investments velocity and future are While through risk portfolio usage, and and shareholders efficiency and from product growth. disciplined and our and underlying efficiently. factors have this and growth, strategy catch-up cautious and a to execution has partners. We them proven product direct the consistent our support developer modernizing more impacted diversified greater transforming as support the of optimism record indicators engineering customers go-to-market performance and growth durable model evidenced remain like BuildingConnected, strikes one-off industry enable relationships with

transaction XX% the We seen from FX of operating benefits representing expect be our the out the in XXX like 'XX, there's schedule to fiscal to effects new midpoint Stripping these, and we have target fiscal improvement margin and of come. margins from basis fiscal already model, and significant initiatives more a to of of year ahead XX% about 'XX since points non-GAAP of towards 'XX.

and a among margins deliver We market, to same metric transaction a and Non-GAAP a ever momentum resilient new and and go-to-market profit, execution deployment we become next terms model stock-based long-term on to business complete, few within operational increase will and efficiency sustained in cash fiscal capital to revenue in solutions the velocity peers. Autodesk key and valuable sales operating mechanical strategy over this secular strong subsequent flow the costs best GAAP the Once expect efficiency transition. Attractive are industry. the confident will is generating connected and including among make in we GAAP and delivering optimization track Disciplined and the even customers, years both relative the make the further margins 'XX our compensation and free improvements the driving further build model marketing basis. and we will best focused industry. underpin absolute to of growth in as and are more

fiscal to free buybacks fiscal the will We our flow dilution forward the from as pick cash into expect 'XX pace builds trough. 'XX of up

take update to financial continuing a turn last factors for the of and value these in shareholder our guidance in outstanding in Betsy on years. and further to the quarterly deliver will capital and provide the In stepping over her and welcome to come year. thank details back I'd we I'll of years. then shares result few time, believe will for over an many growth performance over strategic as interim the this sustainable initiatives. trend to expect her return like combination, We the now to you through our CFO call reduction

the and was effect QX the of partly offset Andrew. in which broad-based by growth Manufacturing, quarter. regions to across and and a Media was Thanks, strike. softness Hollywood strong generated due primarily in lingering We products AEC Entertainment,

business of consistent business and contribution business momentum few the we -- quarter the to infusion. improvement. strength derive to and our margin initiatives, and strong driven to the our included transaction Korea. The China main were our last growth continues go-to-market opening meet Our by support underlying in policy new rates expect benefits not softer geopolitical In construction material Andrew quarters renewal but the second did business the new and macroeconomic his results. in growth enhance ongoing Overall, and challenges model ongoing remarks, discussed from which with

evolved multiyear to to most annual naturally flow, be revenue balance into increased circumstances, annual driven and revenue new billings unbilled revenues, enable as our I model. The is would store an annual transaction emerging as when sheet multiyear deferred we billing; Before you deferred cash will but billings we well where 'XX, deferred certain deferred reporting. remaining flow transition billings if on the disclosure. and contracts. in offer fiscal in we upfront; cash cash free upfront is let until countries such saw deferred offerings. as billed as non-cloud unbilled include basis, better becoming billings billings, on our it performance Unbilled offer of how most in shift financial said And and give customer you a that in deferred performance remind during continue during contracts gradually Autodesk RPO, in not but revenue annually in changes contracts included moved for revenue, multiyear system cohorts shift reduces for as for like to mechanically a obligations for as: discuss such have contracts tailwind Initially, and view RPO there our flow, would our be of revenue of credit received to deferred not revenue included billed billed revenue, before, free on and, me then this annual preference rebill. Metrics these to course, most as our billings, multiyear is the by to risk enabled the metrics free our exception multiyear

of and deferred contributed revenue less operating is pace billings quarter. rollout. of by the than impacts of the model on transaction the X% has billings, billed give cost. to timing scale, contracts multiyear revenue, impact you The some in and upfront determined also Just amount context total The mechanical model on incrementally new second

net due partner payments Conversely, In report partner and customer partner the accounted and addition, way revenue. in is gross record we then can recognized net partner new the are channel old revenue. Under expense. transaction channel to sales in deducted channel billings billings model, behavior and payments We the impact payments the buy/sell also P&L. the model, results. The marketing and channel or in mechanical are impact for from and the

flows a the and to to it's creates in predict And an mechanically is in way is we term, among sales and ratably shift revenue long us increase margin of the higher marketing revenue, billings, from revenue revenue deliver moving our to customer by costs and from old behavior to the time. profit expect That transaction on this geography. In anticipate payments tailwind the we launched percentage, from channel despite to expense when we which model and model a much as costs. Channel over are P&L recognized but headwind cost for over pace expense. the transaction resulting optimize channel provide free the higher best flow into we transition transition harder new to marketing that neutral short the new to the sales are and to deferred further rollout change revenue the model and enable But the margins cash there will of the the the GAAP new, increase during each operating and payments model. and and partner in model operating and accounting really new partner the business, comp overall determined in dollars. partner the will revenue, broadly industry at revenue through and in term, P&L the the transaction mechanically that geography So operating

America from timing contract subsidiaries co-termed times customers to us ahead as we before, This co-termed renewals reduce revenue. an actually and relationship larger more costs customers of For better to a across impact opportunity had align their more it And with company-wide. Along efficiently. channel with self-service our and partners example, their negative of to serve many deferred contracts prepared customers in create the renewal expirations the enabled billings launch, Australia contracts and business. timing also on of with as more on administrative for our functionality, elevate seen we've North

quarter of over model is of our drivers and momentum second one will was the coming the margin of probably in new one more expected the the benefits years. in tactical activity of nature, While transaction co-terming be the

underlying our the fiscal the in discuss, creates We'll when the of the expected this more momentum but is results I'll not change new details As fiscal headwinds 'XX full 'XX impact much we on on model report impact about you results the timing February. year next of business. a and give transaction

regions a results. currency, revenue. M&E year, AutoCAD both retention grew XX% Revenue from Store. Net again negatively remained growth XX%, decreased Autodesk benefiting $X.X and transition to all constant percentage grew RPO Billings So deferred currency. billings in range and respectively. the annual also grew revenue to now XX%, reflecting XXX% in transaction total exchange of a the last revenue, the basis. XX% on on constant grew grew multiyear for within and XX% the billings annual the billion to a was most $X.X XX% let's tailwind tailwind rate AEC model. for increased grew co-terms. revenue at to AutoCAD Direct were approximately the Total by XX% in X%. billion contracts. more to Billings move the Total and represented from of low X% Total year's and and and strong By mechanical prior upfront quarter, multiyear X%, grew constant current teens in XXX% impacted revenue revenue up by increased the constant to currency in XX% Manufacturing and X of from from revenue XX% transition the in XX% from contracts of shift rate. upfront revenue modest and EBAs RPO XX% points product revenue LT billion new impacted excluding $X.X

stock-based as GAAP margins $XXX operating and quarter fiscal the time. Free fall and level, percentage peaked in a was more below a percentage point in and the for X by Turning to broadly revenue while of course gross compensation non-GAAP non-GAAP At percentage million. and than current will and respectively. fiscal by points, increased cash of flow GAAP will 'XX, XX% margins. X margins ratio speed, be 'XX, over were

some business the which America accelerated might more the of in partners in quarter, February, North we to to of to transaction transition quarter the derisk flow booked cash happen new As by transition. second ahead offset impact model earlier co-terms. the month the This after said was the partially in channel X back negative free

Turning to capital allocation.

We our it shareholder discipline economic continue within framework with to capital drive focus and the long-term cycle to and manage actively deploy through value.

During first for in $XXX price pick second the year XXX,XXX the had purchased approximately buybacks average we do per of of purchases million, the as shares is the minimal we of approximately half expect second We quarter, $XXX the to pace which share. up during half. an very

upfront fiscal from 'XX dilution to as will billings, into generated fiscal free contracts. to again flow 'XX the most the grows from annual by cash We also capital transition from trough multiyear to our continue offset deploy

to a further last return result trend expect in outstanding few will capital forward years. time, which We dilution, shares continuing in continue to of reduction over buy we the the

per reduced by an have reduction basis about average count We percentage years points XX year. of shares about X share the over with last our million X

guidance. finish me with let Now

we year. the we remains rollout that the momentum our create will of the consistent so measure pace embedded Taking transaction said of new out think our noise, As for with noise and of the in in range is the February, performance. expectations business flow the the billings best free the the underlying in full guidance cash in P&L

new the transaction Our scenarios. sustained more North in smooth the of second forecast the quarter reduced of and our model America momentum launch likelihood the cautious in

raising we're per and earnings share, that, of billings, the midpoint our cash guidance flow revenue, Given ranges. free

billings momentum give expectations line with a in of X underlying our of me have you Let assumptions our more little changed. The bit detail. modeling is but

Europe than is a was First, is launch assumption Western which tailwind early in transaction to fiscal the reported This our fiscal our expected in the modeling start September of model at rather to new billings. 'XX, in 'XX.

our or $XX have to Second, Western to transaction cautious guidance in with effect modeled, well happen of we the is million X fiscal in same bottom to North co-termed $XX will Europe. includes guidance that timing these Europe The remainder than increasing in This a a September more of forecast to more $X.XX and and the to Western underlying The billings likelihood contracts in from have in percentage increase the $X.XX X the guidance we which 'XX fiscal new tailwind our million, new increase specifically. We've revenue range in increase $XX billings the line model as expected acquisitions between underlying range a tailwind model fiscal to assumed America scenarios. At X model. of the impact transaction billings of 'XX. is headwind the about customers million transaction million revenue revenue measures. the from also The point X midpoint, to guidance and expectations. 'XX, of by effect acquisitions and in our percentage are includes reported the the momentum a equal net new think top we thing point end end North of $XX with reflects million due those in an roughly The to the America billion is raised launch reduced of $XX as the excluding billion.

guidance, to billion, compared Our translating range around X new the from model fiscal at transaction higher than launch are us is between and 'XX slightly to in Europe. and and the midpoint $X.XX new enables into percentage costs the offset fiscal [ of ] earlier transaction the margins previous that now XX% billion of from Western X.X Underlying 'XX guidance to better expected growth $X.XX revenue points includes model. when our

the to free co-terming fiscal While markets. We've well. a we in I resulting and headwinds XX% is 'XX, a of model new people, and the The margins investments improved from is line underlying of margin improvement includes non-GAAP in X range operating now of from the our X.X offset cash processes, our the still to range $X.XX offset transaction between broadly end expect by point and automation. by that the and momentum XX% billion incremental largely being fiscal underlying margin in $X.X faster 'XX free cash raised mentioned underlying billion. with headwind that flow The guidance, in collections flow as billings expectations is between earlier lower and that

renewal free we We our EBA cohort. of of stacking natural fiscal because a largest a estimate in multiyear With mechanical still larger cohort, expect cash trajectory, in flow be the around 'XX at of annually, cash $X.XX midpoint. 'XX to strong billion contracts return fiscal our multiyear overall current free billed growth and flow the

While multiyear the in noise provide new tailwind revenue contracts for the and natural few model creates uncertainty, climate deployment transition the a the to next of macroeconomic, cash a of annual and significant billings resilient over model has and transaction in visibility, they geopolitical, given flow P&L, context do of billing uncertainty. the to and momentum, policy, competitive the sources Combined Autodesk free enviable sustained years. business with health,

to manage reaching business a more continue of a time. XX with XX% We goal our framework using of or over Rule

remain world, fiscal both on in more XX this flow taking most we slide year and free one significant intend them. full the and between our modeling to of strong has this Andrew, hallmark growth QX We the on of you. the website compounding assumptions We deck margins and cash valuable details revenue framework back in to think for to captured balance 'XX. The and is next. Rule are of companies the our steps goal year

Thank you, Betsy.

our second on progress you updating quarter. in Let me strong by finish the

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Before I update call the on search. like open for CFO I'd you our questions, to quickly

update out some you and Once questions. more like would and in have we the say. have detail. our are speed candidates to more excellent we new we'll the We is up to open Operator, CFO good progress. We'll we've for new up when set to in launched making our transaction model plans now call all developed markets,

[Operator Instructions] Saket Barclays. Kalia with from Our first question comes

of Starboard last Value you reported, since a slide couple Andrew, deck. letters a has issued and

any the wondering you high-level us. with thoughts group, to had of maybe Just share the for wanted you if I was that benefit

a is make Those contracts know sure is from All X them from upfront I investors There's things tough kind that strikes. what lot We've much for macro And think annually. I'll from Russia, the years multiyear began okay. About writers to of on environment. one-off our talk impacts. are here? should of but the created to measured number important about, a is great to immaterial, we to smooth buildup still, results, we value of come is and had did we Board. How seen from tell highlight, billed a you, and we you But back is China, that this it's we contracts guide's there delivered I off, the X was money discipline. with come get that things seeing our presented a Today, and outlook contracts math. than billed okay, ago, and to upfront up, Betsy, And Two in remember be multiyear thing right? Now right. free okay? listen it, multiyear created aligned building want ago, simple up. it's it Autodesk from you, Revenue up all It's investors, at we years Look, That billions. results math. simple kind in X% excited and about? Today's delivered some XX We've the of cash impacts math met up, of about from love you're Saket. and to we billed all for at to comes move first midpoint. be shareholder away it's we that time. results, do quarter. you is for heard I'll and from actors very months. we More the this back I our to couple in pretty of love Autodesk thing billions clouds over the times. more okay? flow listen I you it's the all coming of the the with math. And past work carefully. we look that, They Starboard We've to several nice came on journey from

from one, Autodesk. something be value ongoing that's to about excited So

what we And we about Another visibility did were thing We about really the I journey for? over we more this want it productivity model, of transaction we you great line it sales Last get doing important. marketing that new forward our on the how new talk tell when those effectiveness you some which and deal were down to we sales was doing to mission started transaction told line control on that it our going model. is the here. of driving We motion is growth. marketing sight per because increasing costs. sight costs in and that's a and and And and of to margin to basis, see year, see

a of this ahead are me? happen Now apples-to-apples we non-GAAP all This year basis at why going should an we believe years that the ago, you to what's targets look us, right? year. Let's on to going should you believe up set Why target. X year, achieve

trust that we're going can this focused that you think So we're on to I deliver. and

out there agree forward that results lot that coming step quarter this are value going the more we've And excited really journey. with I'm we the just a Autodesk. in delivered it So is about that of and first creation Starboard

follow-up Andrew. That as maybe was moving the my well, helpful, for Yes, to business. for Maybe absolutely. just you super

examples construction You competitively? Construction Cloud? Could Autodesk sort And how of the you're gave the ACC some nice do overall talk construction quarter. feel seeing. just backdrop Maybe that of you level about go about in into X wins deeper we

looking of momentum the And we're Yes. really excited the solutions things about construction. They competitive They're looking That's to our to with they're is value a addition But and we're maintaining going are Backlog move design environment construction. a business our in or a all that key of why still I'm right? Construction is off, net there's backlog couple reasons customers. in in like to the proposition like look, backlog a from Construction large momentum. One, still to matters, the Cloud we're of construction interested flexibility Construction our value others all They our it. in bring maintaining great challenges having that competitive. business is One, like momentum. portfolio digitization. That, one proposition we older is question, in of momentum, maintaining solutions, from competitive there resonant new first becoming still to maintaining Cloud models right? to to more where People there tough And really are of either and move solutions. them. professionals

thing our the a place internationally. long We're our going where see to worth Autodesk we're about This term, growth to strong the to more. has going we grow and a because of continue And last to superpower, the is international talking to bit growth in and see construction continue internationally. that's win U.S., to strong other growth of I that's We for of accretive think The is proposition. And saw business. the strengthening the kind be competition continue in going And internationally. Autodesk. this value to is is we mid-market more

but there I on going want to there's backlog definitely lot and people a remember momentum. maintaining So do we're a

next from with Vleeschhouwer comes Griffin Our question Securities. Jay

under and success channel sales, I'd ask new arithmetic investments transactional to customer model, labor the understandable. But the is is engagement your your inside the the like to very of the to Andrew, with regard the model, division new about channel. like which readily more compensation versus or say new

So inside the how of capacities Then under role the model? new versus eStore of of you comes do the to that sales it follow-up. versus when your see the role channel my the do direct you upselling? see other and channel, particularly renewals the and/or How

questions. some asking you're very Jay, specific

labor, forward are answer Let the efficiencies productivity drive general me clear a things absolutely, kind sales with in model, highlighting this transaction way. with you're to to margin moving new with So going from, drive of of marketing, that to that ability right? divisions there are next some and years. most partners and going regards of very and to opportunities continue we With this where this our from it in over come to us growth come is the is perfect some going to of is time. couple to over growth And regards to margin of

around the you're important So are that definitely to talking some discuss. of areas

Okay.

and you volume billings term Second P framework? long about your and say, effects business, In you organic words, Q overall question the Perhaps and expectations? regard get times the license is other to volume previously effects, your that to are near to we are you've about in regard thinking the which spoken how the that at how like. with model effects thinking to parse mix the term assumptions with co-terming can the of

me let here -- start for just Betsy wants add So look, if to anything.

more renewal going upsell it time renewal And much our the the right? more and time. process. some contract. It's expansion to much importantly, efficiency I our another So is get the and more at to out we're than in is co-terming do easy important it renewal to also of A more cross-sell, easy efficiency process, in billings takes to move is all what current does that thing it creates about them renewal think renewal cycle forward. get at much contract wrangle co-term

some So from efficiencies this. you're going to get

So billings up. co-terming on though puts some good, and it even takes the show is has where

So I address a take little to kind piece detail's The to away that. directly. the harder that's of important of that rest think from

only fewer company. drive what manage, inside you contracts is thing also to The would the efficiency from I add that

comes question next Our Adam from with Borg Stifel.

exactly to hear go back the going that just model, could far step transactional hoping great complexities of Andrew and the rollout for new expectations, on going talked in it's to to things rolling especially means. about the what's accelerate so maybe the given North a And are what Europe internationally? maybe -- additional Japan roll smoothly Just America. that deeper I into out you've ahead given confidence out was you importantly,

a good it's Yes, question.

Australia. And test to environment. right? taken So and on pools. have the disruption that journey U.S. remember, started let's like We in major rollout completed and the We just recount with business. in No tested time, Really the that came the to markets to regards smaller system And here, during stress we issues the with up stressed smaller incremental we've things essentially major we've issues. had entire in no always

is X, that doing ourselves and a want There's of we backlog, of to time we're Now issues. working that Z. issues more extra backlog we're of sorts life what that course, quality people more And to clear been bit functionality. little and a do Y, of They gave of there's all backlog. capabilities want

to Some well. specific we've that done of test Europe that in backlog as runs is

even So to pull given kind out we time that and as is buffers very saw in given going given Australia, this roll as much see the how in we're in in we the that probably going U.S., the to of had out. and we a recovery than smoother how learned what Australia, the we Europe things about confident we move same forward, cascade here which forward Australia, U.S. we're rolled shorter went

in and legal, regulatory that the But only each the Europe from very think North are from there's America the very, for fiscal place. different comfortable year. is it's different currencies learned that plan Western we've different in really way thing so that's full along with step And laws the I and

changes a That's coming you're in super Andrew, you helpful. follow-up, any of quick Manufacturing And little more a end the market decision-making obviously, seeing or process, talk demand hoping making a bit months. the a slowing maybe industry months? I is in few Are about their election was accelerating or up what could the just in environment? U.S. as few decision-making election down ahead either AEC in

The that USA, manufacturing, customers Infrastructure, the Yes. are thing across affect the they bipartisan our go is bipartisan world, here everything are issues issues, good that right? all issues.

And there may other customers that impact. trepidation affect regards on and the of all of sorts lot things But I wins, a to see customers' not our I be So puts little markets, hearing takes. end with our whoever from we're that. think

Jason Our Markets. from next with Capital KeyBanc comes question Celino

kind I just into Obviously, quarter. of nicely. dig performance you of kind the to beat the the -- of wanted margins

some from the margin for these year, transition. You're keeping the the kind headwinds same the absorbing though incremental of framework even you're of

So internally, sources did or that? of you do anything leverage leverage to drive with

right? and to of more? the want bit little you the do a we nothing comment is all Betsy, rate unusual pace this, No, to This business. did

see transitions. of going improvement some from were knowing we these underlying did the to think that we some I get in that intentional that margins, and was headwinds

flow the more on then Okay, great. maybe And little side. pointed just free cash a

free So to see, the have impact transition no it is time to a $XX cash obviously, million lines flow. raise. Nice

customers said earlier know I signed some you XQ. So in

flow a raise So more free business? of function cash the is function the or timing just on a like core

think in of buying it didn't significance issue I timing is people a -- the lot we originally America. of a because So launch North we that anticipate estimated of the ahead

original And for the back X/X free of would so our roughly that for of year. in half flow FY assumption place it the was cash 'XX take

the that is take modeling will in year. place half X/X of of the Our back assumption current

Morgan with comes Porter question next from Our Elizabeth Stanley.

allow on and seen. to behavior wanted narrow picked you've of the pricing up some of the was should differentials you believe help control the things a have to that one we to bit I model some environment. discounting transactional the on ask I the price move more

a to is doing to ask, is So and future forward? today you're a think I something wanted expect you lever about use? it opportunity this could that or how going we And

Yes.

is big confident, transaction to partners, add impact about it best plans they're in on our new trying coming where really is on value-added quite the frankly. less where model really deal prevents partners price the the a and partner like less So them a that What undermining value. has biggest our with

to this going for definitely value delivering. allow to So they're the sell them is our partners, to

it's about the For us process. moving all forward, efficiencies the of

So want price. The from going as going benefit the the is much we the think to cost And you efficiencies get the to What at to environment are that. for definitely where us. partners not and us, about that's so we're move look ability forward. to of it's I benefit out for the

for the advantage best our So partners, a definitely partners. price

cost us, For advantage drive we as a productivity.

customers. And strategic with directly enhance relationships those

comments or follow-up, around environment. the And just picking in the Great. was little a I more unpack business is Understand how a outlook the you're new as up appreciate could the quarter I overall you bit hoping changing? remains trends. new the on from a demand macro challenging. Anything that standpoint then business

headwinds There trends that some are Yes, business, we new we've let quarter. we're at okay, broadly, different talk this same so in me a seeing seen look about bit. and kind of takes as previous that but Generally quarters. in puts little absolutely here the there's

on a Revit and associated of do but our got drags There's same takes from BuildingConnected, has will away to take kind to you okay? to show past. But X the lay of things the beat the forward momentum was was well. that and that did we've we in of part lot that things for of construction a look well coming Entertainment at is kind the on bids those with our the of But the And one Now land that It the strikes, other China time. Geographically, incredibly business if you and in few is geographically, Media to business. This AEC there like an the gives competitors of drag out Autodesk seen business. and market. continue Manufacturing driving as a as puts growth effects And metrics this strong, the in of here, resilient a were obviously, of see. do usage monthly forward takes market, what you positive moving that. and well. with still Korea active of like right? helping lot world backlog okay? in The Most puts our the continues and take those

off another geography projects a here. This down, is types you're is the and you're One geography be very as on is And of other up. projects. of are distributed of business. seeing and might result but magic up on resilient certain You types what Autodesk that's

next comes from Vruwink Joe question Our with Baird.

to Andrew, back, Going your comments. Manufacturing

Those I to at numbers So definitely for the just you mean, mid-market business. we've there throughout teens about the low high end, where or upper deal the more some think been lumpiness growth enterprise. been in commentary at the I particularly to teens out summer, ratable stand relative what have exposure hearing enterprise. there's and

You and gave anecdotes strength cash flow the about both movement explaining maybe share seeing more segments. there. I'm if ultimately you're wondering

of movement, seeing up out of other we're was previous on and lot Fusion more Fusion feel are importantly, to we like Fusion consistent a right? definitely share actions quarters. And drive with Key we extensions ASPs with continue did attach the in quarter. base. growth front well rates the Look, in things. for in We

you are a share absolutely shift. seeing So

catch-up another revenues to margin is against future improvement showing investment. and being underlying haven't slide much about that's taken making place investments AI, cloud platform, Okay. So needing 'XX, some you those it not talked some in is XX%? say normalized FY way investment that the amount yet. peers make to And matched so and since you're investment weighted spending mean, you're on you how ahead then still of up in absorbed I

to quantify possible doing with in an improvement that future So addition of it's if seem what the transaction is because just that what area to wondering model. you're be would to

of in share a is definitely always definitely starting We're We're in where return okay? there's R&D No, an delay here. time shift. investment in always happen. to there's a advancement great and So shift investment, R&D on a environment technological

the this. margin I like to going technologies areas, actual investments there's next moving over So that, couple in as very because we're in and new years to between in technology okay? And we're there's pick forward think investment. marketing should that value start on sales the and that the to drive creation the understand you we and productivity very want That's how focused expect that natural those a these the delay always growth emerging that's up. this shift I of That's why really

Our next question Wong with Ken & Oppenheimer Co. from comes

little the I Fantastic. wanted into to margins maybe dig bit. a

guess, sales could where 'XX. trajectory? mentioned we go? improvements to even You What's about schedule in Also of about haven't a you how and that where think at the We're should confident way you think ahead right point make for margin I that marketing. further being optimized the profile. can fiscal on

little year. for it's give to So not guide I'm to early for the you next a me going say.

line results result of you as is at confidence got not we the that, that, do move paying results complete the That couple color a model. things to the annualized of say, we'll to fingers a now the did years for okay? there's one, at delivering we've trying we'll here, to suffice new was specifics of on So We do CFO new start the the want a want it Look get of we're to okay? their attention but this. in this only we're And next year. But hire you I'm to Look transaction are that sight, X we're rollout delivering. and that One, like what what billings. gating just is give then to we giving more on ago.

with sight Now marketing and have the and I'm line telling other associated you sales model. on transaction productivity we new of improvements

So believe it. it see to know in need you I to you and want we

expect. noisy before, the to 'XX sense said to cohort a we free we transition in why the you to free is going flow our we've current we P&L give we $X.XX fiscal earlier, billion said multiyear to And on cash midpoint. estimate still the And as model. renewing. what cash I at continue that's as trajectory, as FY have And target 'XX And you be anchored transaction flow to largest that the with of the to around be our new

billings annual natural and of billings. cohort have We have a from a to kind EBA upfront transition large we

Okay, perfect.

about of customers? for And they they the on from we a we're, economics even benefit of just details. talked might sort on analyst even anxiously a you the their thinking maybe what cognizant there activity Like Like partner that await guys potential world, Maybe as do the on will the -- and Do transaction lot are side these We second, quite kind some that the notice? they care? hearing be model. of? seeing not is about

Yes.

nonevent, most for themselves right? it's they're buying look, So a customers, Because just finding differently.

happier. Some are

right? Some they're have What through relationship would they're opportunity and sure in with saying, the their renewal clean cycle." doing with relationship true-up chance prefer a party. there, me that power to "Oh, have my are they visibility from the company. up to third to That's more actually So going I go a taking advantages some they see Notice Autodesk. right with up their us to give making cleaning contracts, that

positive issue, big for for or negative. But part, good most them. customer that's not So a the it's

with Radke Tyler from comes question next Citi. Our

margin cost terms being about ahead confidence I built on optimizations, guidance as talk free X to just off start guess number? that's just of of guess or you next that for number that? like these is you've the margin think behind a least that how of the you of Can flow year. about some plan into piece And cash and at in target I much given. optimizations

the midpoint. it fiscal 'XX will a Europe model, Western focused fiscal what fiscal details September. What of to it Well, right transaction can not end we'll well obviously in give we at to the -- as the the to tailwind the again, North based the this margins. giving as the as in this on largest focused say greater growth is at we're about very and And again, Obviously, impact we better point. than to managing 'XX greater of lot impact is revenue detailed And as number of 'XX on sheet they the than change in Again, are well manage where how mentioned will to are that but free earlier, be still year. largely else on at the revenue focused America again, is more geography equal, next the this significantly we the I all up guidance in on do rollout back going 'XX, are be what headwind from I balance you we flow that. expect to year. that's in the greater able year 'XX. being the for the margins renewing now, But cohort you 'XX. expect we're tailwind new fiscal on in to P&L, billion upon today. And the is the it we're cash going And $X.XX fiscal to And both being the multiyear

flow billing large have annual EBA We this transition And from upfront us cohort. a perspective. also will help from the billings the a from -- to cash again, annual natural

the in Andrew, in sequential accelerate share sort sort of Is leap strongest any make growth there? in a of the onetime you've to in that organization function the there number done factors having of of growth? for some think Was that year reorg years And of I strong, quarter. gains quarter Great. that last particularly of a was the despite the sort revenue

Yes.

Fusion the solid intact. factor previous right, which sense? all an as core Construction with is business, the make Payapps Makes businesses onetime that the piece business, in But is with There kick the momentum of of the it. is in and consistent is the So acquisition well, first quarters was there X off, little a underlying momentum from okay? and important of Payapps underlying

way Yes, quantify the quarter? in to Payapps yes. the Any

ask. No. always trying, Always

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

at for end any on at towards Thanks, have ping of to the over just very of and/or next the many meantime. attending. catch you the you in weeks of Otherwise, if call quarter's questions AU seeing the everyone, on October. me Thanks We coming November. end the forward up road we'll Please much. look

the your you for concludes conference. Thank participation. This

may now You disconnect.