Autodesk (ADSK) 26 Nov 242025 Q3 Earnings call transcript

Thank you for standing by, and welcome to Autodesk Third Quarter and Fiscal Year 2025 Financial Results Conference Call. [Operator Instructions]

I would now like to hand the call over to Simon Mays-Smith, VP, Investor Relations. Please go ahead.

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

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

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

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

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

to will Andrew. I call turn now the And over

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

underpinned reflects in finished strategy, This new resilience Western the our constant the XX% of performance. smooth of sustained currency business model We discipline the of successful full the a again, in execution guidance. quarter momentum Europe. delivering revenue opportunity, implementation and raised transaction growth third year strongly, and year have and including again Once of our the

and even University and in connected valuable support XX,XXX We registered and and Customers solutions organized data the remain Autodesk customers AU showed marketplace. through deliver of in how recent consistent for I connected the optimism spoke more momentum and in trends and of Diego, with San ingenuity persistence business, the Last ecosystem XX,XXX channel underlying our another and that and cautiously bid sense at data of partners left a with we online. usage everything for sentiment to models customers over optimistic, partners our much attendees future. and and tremendous cloud a purpose with I BuildingConnected product APIs granular broader activity a with growing AU to the and quarters. month hosted our at

On set I of them. AU opportunities those our were out platform on secular of of was peers; last our that. pursuit earnings good quarter, Autodesk's in opportunities and that its strategy ahead to concluded growth a our in and investment cloud, capitalize call I AI demonstration

build years durable in to transition serve But them enablement more and and we're Autodesk go-to-market with billing. starting through also These more leading its direct and direct subscription initiatives the efficiently. a motion enable consumption few with relationships and ago our to industry self-service modernizing recently more customers the larger to

have We from initiatives these, benefits next come phase. to more the like in and there's already optimization seen significant

fiscal 'XX further make model, be same still our confident operating improvement target in to schedule. of the out and non-GAAP Taking on XX% margins We're in new fiscal FX on we effects we midpoint a from XX% expect year fiscal the the margin 'XX will of to towards 'XX, transaction ahead of the basis.

deliver to automation, among the transaction will marketing productivity. emphasis and in and model on which sharing GAAP effort a industry. channel to efficiency and create increase and new subsequent the for Once margins we greater revenue on workforce new more earn digital value for partners It customer duplication complete, tighter and creation more The customers. less and transaction expect optimization the emphasis transaction new go-to-market sales best will of and model Autodesk less with with also satisfaction partnerships enable opportunities increases and self-service

absolute have Autodesk will focused Attractive, business and sustained cash build solutions relative and are both growth and delivering strong few generating mechanical execution flow to a in and peers. and long-term, the even and in the and valuable resilient within momentum and the markets, best strategy our industry. years over secular a terms customers, connected and deployment operational the margins to evermore revenue of efficiency velocity underpin driven capital next free greater among GAAP Disciplined

reduced to We forward will cash buy our the This continue to grows practice and count offset 'XX the flow from last over free X as has deploy dilution our trough. share fiscal years. capital

significantly repayment dependent authorization share remaining with extend repurchase and our the In factors deliver many our will the over ebb We flow sustainable term, of shareholder precise have these the years. combination, value increased M&A. debt schedule on flexibility trajectory we medium over to this and momentum believe

the in Before in sustaining I experience, time journey, to I'm Autodesk. stepping with at like forward formally like closely conclude, who I'd welcome an enhanced We're member. as will of growth instrumental excited in Autodesk's to welcome continuing for work as Janesh, wealth Board be an importance, equal brings profitability Autodesk CFO momentum. looking thank to to Interim company's I'd to Of to her Janesh and and Betsy important a and

then turn I our update on growth and return strategic initiatives. to the guidance call to to for will financial year. now the discuss over our provide quarterly Betsy performance I'll an

regions. quarter. strong generated Thanks, products across broad-based growth and Andrew. QX We was underlying another

model In M&A, last the new revenue QX year, and were from of agreement and increases business the addition, true-ups transaction we from FX. offset absence saw enterprise which by

ongoing to products our continued Fusion. strength and Make by Our in driven Construction growth enhance

and the to headwinds quarters Overall, policy strong and business of continued the and macroeconomic rates renewal new growth. consistent with few our underlying momentum were with challenges geopolitical the last business

by and absence Americas, constant true-up currency. of region, X%. in AutoCAD XX% revenues; revenue excluding XX%. adjustments. By double revenue currency, AEC impacted the upfront XX% revenue. XX% in boosted AutoCAD XX% and still which M&E comfortably constant revenue by the in in Total and constant digits, By APAC. in LT by Manufacturing impacted grew grew most XX% of EMEA; XX% absence in And revenue grew currency, XX% revenue product, revenues, in grew was acquisition associated most true-up was and grew PIX revenue, integration and grew the the which

from the new was on million in contribution year-to-date $XX $XX third million revenue a and quarter mechanical transaction to basis. model The the

revenue Direct from up new tailwind X and percentage revenue, represented from natural total of model. the year, increased and growth Store Autodesk points XX% from EBAs the benefiting last also transaction XX% both the strong to revenue in and

revenue at Net within exchange the rates. XXX% remained range to retention XXX% constant rate

Billings the new transaction increased tailwind natural renewals from to reflecting the tailwind to most and contracts, the transition year model. the multiyear the shift a early XX% prior for annual billings quarter, in from

and model last model co-terming the the from impacted expected, in in billing negatively $XX million ahead billing The and the a million new transaction year-to-date launch basis. to as Europe. quarter, of third quarter the was to contribution Similar Western on natural of new transaction $XXX

revenue the billion impacted billings again by and contracts. from multiyear X% for decreased deferred $X.X to was upfront to transition annual Total

XX% ahead respectively, from tailwind declining headwind Total early of RPO reflects revenue deferred of fiscal renewal $X.X the from renewals and billion of transaction a billion new model and and and and unbilled current EBA the large, cohorts from 'XX. multiyear $X.X billed XX%, a RPO contribution which in grew of and

on new the growth RPO QX the growth was transaction both current to and FY and with 'XX expect model in larger We 'XX. RPO these, RPO broadly QX. of do greater cohorts have Excluding renewal current consistent fiscal impact a

timing were gross percentage With from GAAP and decreased from last and points, GAAP back respectively. Turning X non-GAAP to AU operating effect and by margins Autodesk margins. QX to washes low. over margins QX the this shifting year. year, The obviously out broadly University full non-GAAP X year

of the below in than XX% will as percentage more fiscal over speed, fiscal will and revenue, of At 'XX current a a stock-based time. fall be course ratio in compensation point 'XX, by and percentage peaked

Western new of the impact the $XXX model co-terming in Free Western free to the in booking benefited flow was for from the third partners negative was some cash of absolute million. quarter by channel really Europe. derisk flow quarter, transition. the which transition partially the This to X earlier quarter Europe expected business offset to accelerated cash This transaction month in ahead

allocation. capital now Turning to

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

up of average share. shares price for picked an million As per $XXX in approximately approximately expected, at We of X.X quarter. $XXX third million pace purchased the the buybacks

continue grows from percentage capital flow free to to by year. fiscal the about about deploy over dilution of points as reduction per will an offset cash practice trough. average We our and has X shares years XX This the buy share with 'XX forward count last X basis million our reduced

repayment schedule billion. the and the remaining under by approximately We well repurchase share flow the medium trajectory as increased extends of a M&A. the our with for our This $X total dependent on debt billion authorized of precise $X flexibility over our amount term, ebbs as program

with finish guidance. Now me let

we will create the in billings model pace the rollout noise the the transaction P&L. in said and As February, the of new of

So we the business continued of embedded headwinds expectations year free performance. our that the range best strong momentum flow think for rates renewal the the noise, our with new cash underlying the is remains out full Taking in business consistent to growth. measure in and guidance with

the the likelihood the cautious in forecast our third momentum model of new in and smooth of launch quarter reduced Western sustained scenario. Europe, Our more transaction

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

and tailwind that by headwinds $X.XX million with FX the early detail. provide new to launch done to been 'XX billing, between of The in whereas a of underlying Compared fiscal Western little midpoint of So to year, in range fiscal billings X tailwind more modeling before old and $X.XX to We model model, is expectations. let me launch billings billing. of have our now transaction new more and transaction a billion weeks, line model the the at in We've renewals Europe the a estimate give our guidance co-terming, start buy-sell in a movement, recent QX percentage more business momentum will X.X for transaction the the model you been in under the to of the billion. point raised of the bit have billing 'XX. growth our $XX new

tailwind to fiscal in of fiscal contributed is The model 'XX. revenue QX is also 'XX. estimate our Upfront in points 'XX, percentage of underlying the growth revenue point of line new around this therefore, transaction We QX in in revenue a fiscal to headwind percentage with expectations. provide growth revenue and to X X X.X momentum will

QX $X.XX call billion the billion. already the range of million our $X.XX While of our fiscal start revenue range the year factored into was of 'XX year, model. guidance not a large it to to to enough midpoint at and raised our full out by $XX We've

is is range basis guidance XX%, XX broadly XX%. XX guidance which our basis end by XX.X% increasing margin now range raising ranges to investments The transaction percentage includes The to to in the model midpoint We're the XX.X% a related the margin by from offset points GAAP guidance by non-GAAP margin processes X.X non-GAAP improvement, automation. the bottom X and people, incremental by now GAAP points. and and margin of underlying new margin point headwinds the

free collections with to improved by margins. $X.XX $X.X to our early range raised 'XX million and The The underlying also billion I momentum faster rates by of We of FX fiscal from renewals, and is guidance and flow tightened that free the cash is underlying our billings expectations. the $XX billion. offset cash midpoint line mentioned headwind earlier co-terming flow in being to

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

our has year details the and deck The for fiscal 'XX. on slide assumptions website modeling full QX on more for

I've bit this analysts smooth And while your a I and my few will to you, Andrew Thank the support transition quarters. with investors was here, call a around to for and lively everyone had Janesh. over whom discussions last at for earnings while I last be Autodesk, to for many stick Autodesk ensure the may and

sources flow for billings a Autodesk visibility very in world. noise P&L, of with annual contracts growth. in natural While tailwind resilient Combined the enviable new the transaction revenue uncertain and billings deployment the to to sustained near-term created has a in momentum, model competitive provide do business has and cash multiyear certainty and transition free model, of a they the

tremendous with these future. from all I For optimism role CFO step down my reasons, interim the for as

Andrew, you. back to

Thank you, Betsy.

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

the through connect interest momentum siloed solutions We to is in to AEC, infrastructure and continue The customers workflows onto our fueled consolidating good see that and in growing cloud. particularly previously execution optimize breadth our of construction, by reach operations. mid-market. handover extend to and encompassing connected into field footprint construction This infrastructure our and enables solutions into through us into and of further capability also the our end-to-end comprehensive preconstruction, expand design, cornerstone

of to perform strong. a expansion and and momentum as the customers sign end-to-end continue renewal robustly Construction net remaining year-over-year benefit of solution existing As new customers' business more rates doubling apparent, become growing our our and our with

give a you Let me few examples.

Construction Top XXX a News-Record, Power Engineering is nonresidential serving Chicago-based U.S. markets. ENR, list. the #XX general end on and is contractor, contractor residential It

Construction After RFP for management standardizing across project Power its Cloud, platform completing legacy on preconstruction, collaboration U.S. Autodesk a construction that Power of Autodesk source was to and data, Construction for single project during Autodesk Build construction a truth BDC. will competitive workflows replace its quarter. platform. unified selected tool, on By have enterprise-wide XXX enhanced top XXX capabilities the a on streamlined Power standardized ENR X contractors X and of single

Carbon Europe, Bouygues quarter. solutions times contractor teams. across ENR decarbonize digitize, Informed bid a infrastructure in building is in Construction XX adoption through commitment industrialize on enterprise, continuing expanded projects between gains projects. and Bouygues response faster consolidate and to collaboration France of its Design a top broader to based the Autodesk to better increased It In efficiency international in also leader Insight the project and EBA Forma, and including XXX design Cloud and to its Autodesk sustainable renewed and drive significantly Autodesk and

enhanced Water QX, ACC firms. on design is XXX ENR's zones. through solutions time and Based which international EBA, In renewed an integrated Surbana across integrated included in Singapore, and in is Construction Autodesk helping it design Top Autodesk firm. infrastructure scale and #XX to its Infrastructure increased urban automation, investment it is increased third workflows consulting its Solutions. Jurong Cloud collaboration operations

its technology Our Water ambitions core customers supporting designing, Infrastructure planning, Solutions for engineering worldwide. growth will managing projects be and a in water

time, managing theme: stories projects this data that be we have the while these Over across and a enabling efficiency expect majority Again, the we our project sustainability to remain all industry transition to and and life cycle focused common on way, people, clouds. of through risk. processes managed increase decreasing

on platform. Moving on and in Customers consolidate to initiatives. manufacturing. strategic progress We made invest continue and on excellent digital their Make our transformation to Design our

the one remains of manufacturing the in fastest-growing Fusion industry. products

average are Fusion and seek increasing, cost, drive helping to growth price to higher. lower customers As sales innovation at which is extension attach the drive rates

collaboration the selected and PLM example, people customer semiconductor year expects connecting XXX,XXX resulting market. faster this and and a development Once manufacturer For to in global scaled time solutions reduced operational, product quarter, efficiency. the competitive improve foster supplying to in by over industry Vault sites costs manufacturing hours greater Fusion save data, per Manage operating to and across fully and

playground In the been designing, U.K., equipment Playdale Playgrounds manufacturing outdoor and years. over has installing XX for

optimize times, operations production reduce nonconformities floor. its to workflows, digitize the replace to solutions, Excel-driven Vault, and portfolio AutoCAD reduce on Playdale This to inefficient shop Autodesk added and Fusion quarter, and existing including streamline Inventor, of lead

customer solutions leader A the and engineering renewed global expanded its Autodesk quarter. in long EBA precision in and time

generative AutoCAD, In adopting and waste addition fluid is to mold reduction defects increasing flow reduce it and to optimization, manufacturing design and costs for yields. capabilities Inventor, while and Moldflow, Vault Fusion's material

curriculum future to prepare courses In engineers. and continue education, modernize universities to attract and their

capabilities of environment. Medical selected courses. University PCB Technology, X collaboration combination solution a single replace winter, additive example, use and ease use, students Device to Fusion for workflows unique across will platform, this of modern the Stuttgart, team was of and competitive at For from in Institute its a for manufacturing cloud Fusion

latest work continue they software. ensure and with to secure our using most are the of lastly, And we versions our customers to

of for completing after of a Working address a Alias rapid partnership and across looking APAC rail base. license and mechanical and large and scaling its a expanded adoption rates manufacturing design. multinational compliance cementing VRED studio which our example, engineering align company in diversification, long-term of compliance period For one and PDMC ever collaboratively, Design was issues included while compliance to largest employee the for agreements, we global

valuable and a are a focused to capital secular Autodesk, markets, to customers generating operational strategy business delivering momentum even long-term and in within sustained absolute connected relative growth solutions and and strong an driving to Attractive resilient terms our Disciplined and evermore is both shareholder greater to velocity deliver peers. over execution deploy value and continue deployment efficiency capital we sustainable years. and many

customers persistence and and and our the I in a optimism sense tremendous purpose for future. of ingenuity of retain the

Operator, would like for we now the up open to call questions.

of first line question the Instructions] KeyBanc from Markets. Our [Operator Capital Jason of Celino comes

me. for two Just

are just us bit what about you first more brings one, him a to us Andrew, he some of little with Can unfamiliar The Janesh. tell and Autodesk?

can. certainly I

make it. do brought during that period. this The I Betsy. I Betsy she I really Thank interim let that, Before appreciate sure Autodesk everything thank it. to for me appreciates you, company

about why excited really me tell we're Now we're Janesh. about and excited Janesh, you let

of of next brings balance for business. which that seat was the time CFO, which both optimization investors well. As us is after getting someone you getting the And looking Autodesk. The criteria invest that's be scale a the great nice-to-have you we next to looking for dollar sure to the are what But really of we important that at of means the that right? going business someone and that was return the set things Janesh a as going inwardly in I that optimization one it really was able every for a their looking most be return at kind telling nice-to-have, best was the we're was was things, as drive was I that make from those were scale. for, focused, at was remember, of of sitting to inside dispassionately

CFO in at both turbulent driving seat X COO, and the changes Elastic, Elastic. years He's inside of some fairly been

like So He's We to value a at he's Autodesk. got to changes scars lot. done the inside, feel companies from like got battle have company early added we also good always get and that experience pushing inside that that. we very

at it He companies. driving was those looking kind was which We've when those senior for in this #X work. he is scale, companies people bringing driving from criteria So worked in at at He senior the success was Cisco VMware of position. a were I a optimization good position. we had

X recently of spent knowledge nice-to-have. was He got Board. career. the PTC on years He actually industry. also has He another his in at He's PTC our

our understands to quickly. be and pretty he to industry, able So up he'll get speed

The here: sure #X we make scale getting excited, and forward very December. I'm everything optimization joining And at him important drive the that, few that years, looking need goal invest, a which we're over from every Autodesk. next I'm theme for in we is to really with dollar

Interesting. might second question, then any soon? my you frame? do CFO, in that Day? is Great. Or a you time do hold on the you in past, next have And Okay. now March. good that thoughts a for the that when did Is usually think I too Investor you have it

Janesh Yes. is Well, in December. joining

sea him speed. his year year actually up in need set give end get for on and to good giving kind next the we think time legs of to fiscal the I get drive of to time us

be about doing those get to talk but the I unlikely back So would it's soon we'll you things. as that anything is as spring, ready Janesh we'll on to say in

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

that, X% years, last of is XX%. CAGR your brands the about you improvement, are all is about as for looks about in that the several next over Andrew, for years? X% When third How CAGR number ingredients roughly X-year think aggregate. of the to like, for CRPO the CAGR volume thinking we or current perhaps RPO sustainability, the upon of the quarter, over unit or it the your

on you then how of trajectory price you've RPO, most other might able perhaps think ingredients, current top the and you but for be improve So my that, upon had talk about follow-up. to recent

Betsy. is this Jay, Yes.

the things. of number you a headline just the number. are on of couple give me a There's going of on, things Let CRPO that

my the growth, with first opening was I headwinds you the quarter. and transaction broadly early the a consistent providing tailwinds, away tailwind. model, and new the And CRPO second renewals take as If commentary, are mentioned and in

calling in there's and as the then declining the a reminder, growth headwind of 'XX And for fiscal out fiscal you large coming are tailwinds deferred billed also from if we unbilled flow a the to 'XX, as contribution cohorts fiscal from renewal up dynamic as cohorts renewals multiyear EBA year. next And these well. 'XX. for look just free larger same revenue to And CRPO of are to ahead cash the same we back saw the

the this evening, Since CRO? a how perhaps sense Revenue could more sense and is continue you're make Or you have combine the of CRO management it might make Would you new Chief talk to Okay. about to it position? thinking news part perhaps do to Officer COO? about think separate

Yes.

we're work and going a under the to separate have because continue to have there together our our all IT things that various CRO organization, associated. we So functions including organization, infrastructure COO

we're business What customer. drive for looking understands continue the how CRO a someone to direct engagement have with in you our to when that is

So what channel patterns, it transforming customers. Autodesk help drive cycle focused solution the that of really life data someone self-service understand and that kind analyze partner understands a of comes a in extension solutions the from actually also cross-sell our to upsell for to transactionally a driving customers to while that's that takes from means

kind role So going of And within we're a the be that's role continue to looking yes, COO it's organization. for to the CRO here. stand-alone

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

to ability Awesome. know Maybe to upsell different white the seeing that model new that you technology Congrats have from just transaction and are better those more of in relationship? are solutions the now but was space customers a cross-sell I Autodesk the direct of curious, I on and that you're new find terms early, any adoption to and on Janesh. model, learnings still Betsy there the it's

transactional about early to that. direct we some of really on What on But for some probably Adam, Autodesk served of it's kind you of early days. kind that definitely level. is be days, driving shifts of the that kind I tell early customers Yes, cross-sell able a very conclusions see of length any terms to to can were upsell, arm's and just in at channels make

you agreements, their If EBAs, where having that driving experience and learned customer they're really we with the our evolve, and enterprise a effective for we've might partners. our even kind get understand partnering that usage to sense our over relationship But years of want that we've how got business the who with upsell doing, are much patterns, with they what are cross-sell and at more when we channel

So I think a of the those possible of forward completion transaction as kind of what's with new stand model. move testament we as

to or maybe really just Great. new be pause in perspective administration? ahead? Any I'm quick change a really, the of there consistent. just would or the conversations the being about macro you their in, new we administration just a as or optimism ability full ahead from And follow-up, your expand helpful. have just broadly markets Any willingness any tone projects as steam macro commentary end terms think with about in talked of in the curious, you coming

What things Our I'll to the about is infrastructure matter infrastructure care parties build-outs. care our are things, bipartisan that right? customers all build-outs. customers say about Both

chain customers States. United Both in it be Europe, that domestic domestic in important. build-outs manufacturing independence, are about it be agree supply supply stability. It's Our chain the manufacturing, parties care

bipartisan customers. are things All affect our really of that these issues

a be So of the suspect the things that to I focus. to are continuing are regardless our administration, important customers

from Joe Baird. of line Vruwink Our comes next of question the

think, the next the in expectation for I has, the now. year, On past been free billion cash $X.XXX for year outlook

year, more in of last also And you've to FY leads think I Within co-terming the contracts. billings 'XX. better seen that

So of now $X.XXX that's qualifying are and you're my question actually as the things does the billion midpoint better, that is, the that why potential possibilities? create

about to talked There's flow It how fiscal for the we've at to 'XX. free cash billion continues midpoint. the change $X.XX no guide be

history, And enough. more environment, tuck-ins. strategic on in just mode of, I over been Fair recent the M&A a say, would Autodesk has then Okay.

model out Autodesk, the build approach in announced And tuck-ins of in time, cloud there and in peers happening simulation data the think Is and for with done space work this was the CFE point you've AU that platform, that's you I these quarter. larger contrast the would in the an how right sense? during that's just that actually the some given all to asset the the space? true, compare if M&A the most your scale make maybe so was

Yes.

on say, the company, in any our here's I'll that space specific Autodesk what deal. both consolidation I'm been not comment and has look, acquisitive strategic be and acquisitive always will makes inevitable. But for is company sense we to an company. So when going financial an

next line Morgan of Porter the Stanley. of comes Our question from Elizabeth

up partners running with we of transaction up usual and on existing are than spending more new just customers little getting model, customers. bit time resources As the time picked they're those that a and

think you change versus call any had on business that So in and trends should I that if any broadly, kind curious from out business you was new impact demand of last recently more more quarter. new then just

it's Yes. Elizabeth, Betsy.

Russia, speaking, business, all momentum the see really several the into number over at to just broadly growth that's elections. And due a so years: to guidance. the factored continue last of macro, on a of exiting factors a while but drag we And forward really our pace of slower COVID,

So would of at that. I just kind leave it

on QX follow-up compare. in a But billings. then in there's down model. lot the and despite bigger growth Understanding like step change just around And guidance looks just a an year ago from Great. it of a the easier volatility multiyear transaction implies

greater in drive I those would a in hoping kind that balance us and So that of the downtick was of headwinds growth QX. tailwinds could unpack help you

me get and and FX. early be you're and, business shift renewals. model final booked annual perspective, from model ahead start recent from some again, with Well, transaction co-terming a just from And to billing, the headwinds 'XX the new your the let fiscal going new to weeks, out billing are of launch tailwinds going in transaction to

we've we've through think I executed QX. again, that as perform continued So well to

so think QX. very feel And about I strongly our very, we expectations for

next Our question Shah Bank. line of of comes Deutsche Bhavin from the

and driving at attendance owners uptick segment? recent the What's noticeable geared Congrats sessions quarter. this towards of made the a buyers be on it been and more there university, enhancement how appeared from meaningful and a is the you much this focusing financials? long in of versus guys How from becomes perspective? have to to kind go-to-market really more segment of And product Andrew, emphasizing interest operators. before

very question, cycle manufacturing whole an make, from that's way entire life through excellent Bhavin, the all We're in into Yes, construction, the interested tackling design operations. right?

we solutions twin which people Tandem, called solution. lot digital interest aware of also the digital were connect sessions have And to allows data that is our solution by a Tandem. increasing increasing to of You're a tightly a toolkit twin probably has that a those and easily driven to sensor product coupled adoption

you're seeing and that we're of that uptick directly owner interest are the to capabilities So releasing space. because products

an area doing expect to as only time, especially solutions. were can as when the to and we APIs space, see continue you for You to trend buildings, of space. about of It's owner with well owner solutions to that are see like over owner to the for related expect that not deliver talk owner some can continue us to even what it vertical comes great infrastructure our interest, the factories continue and but space things that other and water

them, matter. of and owners for building that. yes, see more to We're you're So software going

the underlying margins. you've Super for improvement we next operating as the I transaction the And headline called of think you, transaction Betsy, know like FX of terms about the I model. kind and in of then, but we've the been how think FX model in to out know margins? do helpful there. the just that we one seeing early, it's year, and about impact And very

could CFO problem I a probably of a give with that Well, have answer, new bit you but I think the little that. I wish would that

So specifics that. of give to we'll on until the February you wait end more

Radke question of Tyler comes Our of from the next line Citi.

ask but kind especially I was of wanted it Betsy, feel going I companies, comments larger who a Cisco, you of a free to about some as around next Janesh, pointed you VMware, lot to a to that, cetera. on year's you et at ask relates experience made of your hiring has efficiency, out, you to but But placeholder answer. for don't question about waste to guidance, Andrew, I want

you're that some relationships, the billing transaction about a that the few as quarters number channel out should think that of And embedded of of the the that areas cash having into incremental next have for that potential? free visibility are year? unlock, then rollout, model as we identified to as that flow What have Now having already? with better efficiency kind on that customer. you've prior direct we this some you about you that in is efficiency think Or

dodge other okay? So layers So right? and curious first, in me of answer serious that to the let question ones, then kind many question, a stage

happens. you our will when the our off, deck first in year, kind mindset targets which year or disclosed okay? year, is for mentality. already non-GAAP the It's this not comparison, at example, be materials, So are can for slide next see in the that hitting we right at want to margins a if a you optimization that something set optimization is that I look look now this Autodesk. suddenly So you because of reemphasize apples-to-apples

say me step for to be us is of our journey a as for You've over new optimization to go-to-market think the we're to model a margin part years efforts It's couple that's I And going okay? a driver. out, over that's of going the to company for long-term critical growth and important. that optimization starts on the come, transaction deliver of roll also again, heard and

huge the I important, the things is give getting with other right? side think renewals Autodesk to to Now on okay, an customers just the right? a a engage and things from but another where drive those sense the of that on some through of both us specifics Self-service growth a me accretive come probably is you with efficiency into self-service, customers on our will for are are from, time, kind value the for but directly. how One also that and specifics, let and customers revenue is side impact capturing

I cross-sell. The customer talked understanding other the so thing about better, is upsell the and

cost players to sorts of channel and automation going the and transactional drive to and be real duplication where opportunities of moving from more are, providers our moving and the a drive for to lot effort company of That's the to IP efficiencies about some understanding the being being this have model going customers. eliminate to forward. going opportunities the providers partners efficiencies. that's we're we're And solution to So away the able do all to

bottom efficiencies just growth, through efficiencies necessary removing steps both there's well that the customer. in there's revenue here aren't top line So but and as redundancies line for the

get lot to optimization on year next that. clarity this more You'll go-to-market beyond a forward into move that see as you and continue us with

new net year-over-year. question, my talked Cloud, then And about Construction strong additions some the I Andrew, really follow-up customer doubling think, within you Great.

What's you to you about understand, help the position Make are that customer We is Can strength additions? just us And constant your durable? XX% the also of there? do reacceleration you saw new how currency. that been driving in accelerate think revenue just sort thinking

let make go then on me revenue, construction. the first, into I'm going So to comment

associated includes revenue So revenue that. some things and the with make also PIX from

I facts However, the is important, think Construction business let's talk our right? about because around this

our high is solutions. one we Construction growth factor that to Number consistent continue in drive

You're those lion's of seeing it's Make numbers, it. It's built into numbers. the and Make the share

some seeing consistent really organically. That's growth You're there.

Inorganically, of executing things we're that's acceleration actually like Payapps, well growth. driving on our and incredibly

a yes, not So I to we about as our all in clear And And a in customers. that. we right? coming increase performing talk of And new okay? where Xx decelerating are we about business, be from we're Inorganically, drove solidly. said really want We accelerating, I'll minute. are that's year-over-year, a just just actually some

other the going want thing highlight that's But to I also on.

an position are the already XXX. We ENR in strengthening strong

and cloud-based need us. operations," from great the all solution goes example end-to-end, one a about story example Construction, "Look, So that they RFP someone was saying, just heard that in Power a that the of forward-looking the taking And we about commentary. design out you new chose technology gave on a was way I to which construction to and competitive opening

So already in a ENR the position strengthening XXX.

allowing that scale. U.S., effectively, more Now also, us driving us at new to But aren't, distribution is capture is that. qualitative customer is more which market already which customers with operating the more that helping channel. operating go effectively, have channel we're some growth down our of In be the this are scale it we places at internationally where other part our we distribution weren't things already others before of driving is and where

And international seeing net those driving really a us. as driver there. for some you're important that's well of growth that that's as new So accounts

want I'm the heard hearing it thing over they done from And bets next the over in that, to want to this to operations, I years. customers solution. placing go solution then design lots different look, and add, license over cloud. the with just and the construction Construction AU, and last from for I'll is the over in at places, XX They They the of again market. that's I'm end-to-end our want attractive to making They're and again more

line Fargo. Our of Wells comes next from Michael the of question Turrin

consistent, maybe The call spend more the provide you that's added useful. think there just sounded geos, any commentary details if segments the macro overall are on product and key environment wondering you either on across can for split but or progressing how whatever is us

consistent as or I trying over quarters? you'd characterize if to if are sense is the shades of think just what any a anywhere mainly couple there for past we're improvement of get

the business okay? as diverse consistent think tone it's especially all There's But here takes always other I quarters. consistent quarters. like in Michael, large core and a the trends is as that ours, with ours. one is we've We're seen in general prior puts the seeing consistency, answer

then year transaction leading of just the up model also that. I obviously, would that And from add the this new there's been lot elections to and and noise a

it's so to out particular hard that of behavior. parse kind And

Andrew think we So it as call consistent. I said,

for we asking. us, Betsy, why the too. congrats transition That's on keep back. tough Yes,

the chime transitions progress and Given Janesh the I company key and hiring maybe you're think keep to working through. also you're just Board, reins the on is on able useful on the going ensure you be also on of it'd to you hear in the comment how over hand

involved Firstly, and quite of recruiting was the company, I extensive the Janesh. which the was process, in in

Janesh. And say so as XX him to deep obviously, as of have business of is, Board that years being on also What the transition X for my is the onboard. certainly think fiscal I I'm the months, the the last we're end of the very in would staying year be reasons excited around with for experience I one into over can dive helpful until my really I well

we very to finance fast as And And so making fit I'm and that forward. and he's can. think we forward I I'm looking have going think that much team, happen well, very I a looking to great that as

next question Matthew of comes RBC from of Our the line Hedberg Markets. Capital

in the Bernini could if models I for on monetization developing has was Project Richards This there? and and we how an wondering is been just other on Mike opportunity foundational customer maybe reception are or Matt. you where provide update

Yes.

also from before applications. might we're certain types you So us talk from that embedded in is AU, first how and off, I Bernini, our done heard heard models as have in building we're at And new comment bottom-up everything a a on of doing top-down foundation are AI perspective. things AU you about understand

foundation model automated driving that's about heard creation. drawing You a

is bottom-up that's a about innovation. heard constraints. and sketch driving You of model automated generation stuff kind That sketch foundation

and Bernini with of we've getting to Bernini something preliminary those is stand outcome we've trying actually that successful been as and what continue geometry more And geometry," of picture on work doing and generate is more specifying as now, because intelligent. should something, specifications. you where that's a things in been engage with a with right more now, participate "Look, to say, commercially top-down certain us see Bernini We've innovation refinements some just It's to in what's with not smarter extensions making targeted forward. a to customers up So not from going to you're to and moving actually to this right Bernini okay? of actually understands I'd you them available type it's get need intelligent. more that and getting trying with customers like but been we intelligent XD make yes, to

monetization, increases in vectors here play. nobody a going stay few be of all to going some how for monetized. there's One, this But the out, this one's to investing Let's outcome. exactly into value competitive okay? get for knows Also, of incremental the you're charge marketplace, we days. as charge When monetization, we space. our to a still you be come is these to regard delivering that are Now with It's this competitors How things? ahead. to in a ahead We result, to position features We're important able intend ahead. that be high-quality really future. play early outcome for that's to in let those you're and or charge That

monetization avenue. through opportunities there's right? all also But needs, be customer's technologies licensing for specific maturation will for another specific That a certain

know need play one for ahead this out to ahead. out, avenues these while. first technology what cutting you Autodesk X We've lab It's the research But let's for intend there We're over how were right XX play XD more, years. AI out We So papers. a we're out. on about to weighs been which let the and of an design with edge been AI, published we there. that's there stay is and

Tusa comes Our next of from of JPMorgan. the Steve line question

Lots of good asked. questions

X.X. Just a X one, what's in to contribution to the the change, change the the detailed X to model billings from transaction X

Yes.

launch. and European Remember, we It's X% model. there's means launched headline that new buy-sell our transaction flip from the increase that is greater of we side more ] to of we in did X when said the tailwind points billings means [ on than Europe, underlying percentage The it was looks business basis. short less because did more basically it it's to guidance So we buy-sell business, X which a answer. ahead (sic) the the X%

Joshua from comes question line of Wolfe next Research. the Tilton Our of

hear me? you Can

Yes.

to CFO. have like for a we understand, initial the I new today? of high-level the the how growth of growth just incoming for the calculus about underlying a business an on agency outside the trying that think that XX% in, kind anything of And for one change I'm outlook year. ongoing didn't get in the XX% is correctly, of context could I guys Great. that's coming If there you heard transition CFO revenue next to exactly

then incoming a that about little a comment on I'll bit bit, first, Well, framework talk and little let's CFO. the

geographies. X So the over the created right the we the series started look, new within that look business, like XX% right to strike, the things bottom It trade writer a back And whole pandemic, business. things pretty the years, we're now, much there's the to exiting off of that XX% inflation, last if headwinds end been with Russian the of growth, at range. wars the particular of

the accumulated that the these have of slowly the down end low built range. of things us to pushed All into and were headwinds business

goes It model takes in be out back goes out to time into the going revenue of turn model. to business, for us okay? subscription up build that. those with a down It build for That's to of slowly. So it's to The slowly subscription tailwinds. things time take expected as the headwinds

the in course, this core But us and bottom XX% just these evaluate As still expect to at now, the right of in, to be the as for that new range at come a look business, near XX% of sense. still the kind of of short framework, eyes the to But them. okay? for as company. the range, So term, the makes we'll be sense guideline bottom all we'll things a a guide general long-term long-term makes as

line Our question Panigrahi the of of from next comes Mizuho. Siti

some noise the your some next drive and exclude you understand leverages new see of I has the year can business of in or if that, margin you expense do where that in model you But operating side. kind so?

nothing on focused to year. pretty Well, we've years far last expansion, think kind provided clearly. the next I what think we've continuing we're And of X actually be done further as that historically said as I over we add but to

We on did data that. provide

thing and can we see underlying same vector. see improvement in is, what continued the to that expect you So

the On basis. same

same apples-to-apples basis. basis, on On the the same

Our America. question Bank of Michael Funk of of line the from comes next

could. I if Two,

the next calls large cohort You've a cohort. multiyear about mentioned times then in year EBA renewing also largest a few the last and

sell kind risk look among upsell, might the wondering renewals. give you Just and of around whether variance can if range potential like potential there, the that us down to of renewals outcomes of those what

we renewal so this have in saw report largest and we're we any that think and it's we at I a cohort, in that performance not looks that is February. mean on I the expect strong until year. we'll we But what for guidance and point, 'XX wait specific giving 'XX, No. said what like earnings

And Great. Betsy, one more. then, Okay.

not us of would we a try might also I to giving few presumably more be understanding but automation, an processes margin? about a with new versus as variable know transaction investment actually commission. and cost you mentioned in us cost guidance, our to to for that the Can modeling fixed people, basis You've you're times like us think modeling. us on what forecast help better model, absolute help that quantify

think just got you a help to I'll slide about you we've and point in deck that. earnings to Mike, modeling, the

all remarks. the back Mays-Smith is ladies have I And to like gentlemen, today. to the Q&A Simon and turn now for time would we conference that for Sir? closing

and Latif, everyone, Great. for Thanks, us you, today. joining thank

to seeing you the on road few many of Looking over forward the weeks. next

in questions e-mail please me. any meantime, If or you call the me have

in of the in you happy those North And Thanksgiving. America, a Thanks, very Latif. for wishing meantime, you

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

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