ADSK - Earnings call transcript Q4 2025

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Operator

Thank you for standing by, and welcome to Autodesk Fourth Quarter and Full Year Fiscal 2025 Earnings Conference Call. [Operator Instructions]

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

Simon Mays-Smith

Thanks, operator, and good afternoon. our and to full joining 'XX Autodesk's for quarter fourth year you conference discuss call fiscal Thank results. me. Andrew Moorjani, Anagnost, with our Janesh CFO, are our on the CEO; and line

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

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

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

will And to the turn now Andrew. I over call

Andrew Anagnost

exchange Thank fourth end higher of you, call. quarter while the Billings our Simon, strong and revenue and despite expectations. margins flow topped the exceeded our foreign welcome, Autodesk and new results. delivered headwinds, everyone, free to range and full cash year expected

has restructuring this which parts. have X our all seen announcement will You afternoon,

resources strengthen resilience. second, plan. our of strategic sales priorities we and optimization marketing our we First, the our have are internal reallocating accelerate initiated And to phase and

in turn. talk me Let about them

through has go-to-market, enablement, the and and self-service contracts evolved the annually billed transition to Our more. from of adoption subscription billing and multiyear direct model, purposely GTM significantly

from phase, customers which complex will evolve of faster Autodesk to channel channel partners. the beginning better self-service more Autodesk duplication comes its partnerships its and digital automation of and positions tighter This and customer to the satisfaction less processes and evolving and enable to GTM We needs are increase Autodesk productivity. and continue now optimization that meet effort. less

is emphasis teams and of systems customer success and scale. focus on and current that and efficiency on consolidating investing an excellence into marketing, with at operations Our processes centers increase sales S&M, marketing, in

Our channel partner self-service focus integration will on future for value greater a on and sales to and of efficiency. increase broad customers be tighter productivity sales further drive emphasis which deployment marketing the will and creation capabilities

dollars And Due we ongoing model the operating to margin and complete, is deliver among optimization, expect industry. best we margins GAAP in expect in to profit once the phase the this fiscal 'XX fiscal 'XX. non-GAAP and improvement optimization pre-new both transaction

the we internal design where in to of enabled Turning on AI. focus resources the and term. are, to make and Autodesk on long by is focused reallocating industry cloud convergence platform, cloud, the

supporting and accelerate our investments the increasingly cloud, a and in strategic To connected maintain across company much this AI platform high-potential and ahead providing will we're priorities. peers investments and by customer drive of resources shifting with ecosystem. our Our solutions customers to are in developer valuable leadership, and broader growth these extend and

will and we enable expertise globally flexible. remain capabilities and distribute that the building ensuring resilient critical optimization we also are We need to to future competitive,

velocity driving Disciplined strategy a absolute generating and execution resilient and to momentum and secular reasons: As main operational greater and and strong a efficiency. connected we solutions delivering X our in There markets, terms peers. focused sustained Attractive growth are to valuable ever-more quarter, I customers said last long-term relative business. is are

value believe these over capital share many and over sustainable shareholder count our deploying enhance time. will reduce value further creation to grow are years. We We deliver the business, factors

like is at him already making him at for ahead. impact. annual come Janesh today. Autodesk excited through our and you and I'd have conference sales update turn can he strategic take growth year results him to an on and he's provide me welcome with call to guidance our back to over I'll the so here an our then We're initiatives. the to

Janesh Moorjani

Thanks, Andrew. you. here I'm to with delighted be all of

areas touch get results, I I I'll to our saw that that Before into Autodesk. X on of me attracted potential

design to in the are the level cloud and further deliver drive enabled we our growth we by months few at understanding cloud, the in platform, And and I investments we confident convergence well to AI. deeper ability to expanded second, am have in a Having significant positioned as of potential profitability First, drive spent scale industry make both. and of business, business. of effectiveness optimize the do as gaining the last we the

with of full the results the to economic consistent the quarter were the turn in as in The Overall, and grew growth. Let's last growth and We were few across broader 'XX fourth fiscal year regions. continuing and with results. momentum currency. rates environment in XX% reported and quarter headwinds fourth quarter business constant the quarters to business renewal the and products revenue new the strong broad-based fourth underlying Total strong. generated

AECO revenue, AutoCAD excluding manufacturing XX%. M&E currency, the in upfront LT XX%, AutoCAD grew By and product revenue and grew grew revenue revenue X%. in revenue constant XX% teens, low and grew

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

and from year. and XX% in the model transaction for XX% By in XX% was in revenue million grew $XX revenue million in region to fourth constant The Americas, in contribution APAC. currency, the the new EMEA quarter $XX the

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

new $XXX million the for contribution billings quarter full model in Billings multiyear most in model. quarter the transaction contracts and annual XX% billings at the the to year. $XXX from the reflecting was the currency, to shift transaction increased fourth transition the new and to constant for The million

of of current billion $X.X billion RPO $X.X XX%, XX% and and respectively. RPO grew

the affected from As expected, transaction of current and the deferred RPO and from fiscal new model from billed declining larger revenue renewal ahead cohorts growth headwinds in of tailwinds EBA unbilled contribution 'XX. by and multiyear was

non-GAAP exceeded fiscal were XXX GAAP margins. Turning XX%, increases We XX% quarter to margin were and non-GAAP operating respectively, discipline. points. and and XX we basis margins Fourth demonstrating reflecting expectations pleased year-over-year that of strong our

and For XXX increased excluding points transaction the fiscal of year-over-year, 'XX, and approximately and model the non-GAAP XXX GAAP impact basis currency movements. respectively, new margins

our fiscal which billion, 'XX $X.XX cash ahead high guidance. of for Free was the was end flow of

approximately million shares $XXX $XXX approximately million purchased share. we quarter, average price at for per an fourth X.X the In of

For share. at the million shares full of for price $XXX year, per $XXX we million average approximately purchased approximately X.X an

and guidance. the the to a model underlying new give clearer transaction numbers impact Turning business, constant I on the currency. view of To the to of dynamics will excluding you in the speak

today's our You'll also transaction 'XX deck new see fiscal movements guidance. model of currency we that split in earnings for out and impact the the

'XX For and review of how the transaction earnings fiscal further opening see our a new QX commentary from please call. model deck earnings works, the

how me we thinking by Let 'XX. framing start about fiscal are

with our of customer is recurring hold of position base a revenue. positions starting and high many strong. in a have degree markets We Our leadership loyal

we seen the realize leading benefits the changes environment our not cloud. and geopolitical are and AI our of our broader in in guidance, building the cloud of markets. We or as data converged In have the platform and in in we customers macroeconomic fundamental workflows help momentum

and like we momentum Construction business in Our Fusion. growth our seeing model are businesses is resilient, strong and

strong focus renewal Our on will growth through and fiscal while rates. new 'XX from customers, be maintaining driving existing

Our similar of guidance to to the building fiscal 'XX for approach was fiscal that 'XX.

forecast, based the momentum is grounded bottom-up of of range is outcomes the guidance and the business. on in a Our possible which sales

transition, Given some our CRO is disruption we restructuring possible. plans and believe

and actions guidance have consider fiscal we for place it mitigation these our believe we is to While reflects This we are plans in thinking outlook, how and these changes, this. about in our 'XX. frames prudent

earnings earnings details There color. me in but our give you let press financial release and deck, more are some

impact billing the billings to transaction year to most expect constant Billings to contracts. XX% excluding for this remains new model. growth the due of transition our of currency annual elevated multiyear We XX%, growth

excluding revenue assumptions transaction that model. between the range X%, earlier. currency of mentioned constant reflects impact I the growth This of new expect X% and We the

operating GAAP be to in of expect the margin We XX%. range XX% to

currency of years ago. the new and transaction margin Excluding non-GAAP in the movements, model range expect gave the XX%, we be higher we of XX% of which is to impact X the guidance to operating the range at end

of cash utilization billion actions This more this $XXX after anticipated is We approximately and million slide fiscal we in expect discrete $XXX $XXX an We've announced deck. to to to earlier from assets. today free cash the deferred generate and outflows 'XX. million between $XXX $X.XXX information million million flow related $X.XXX the cash of to absorbing of benefit the of provided tax on in includes U.S. billion

like the billion a expect timing the approximately in which buyback increase which billion to We of and conditions slide modeling between is shares The 'XX has XX% and $X.X our 'XX, to and compared refinancing. of fiscal first fiscal on full fiscal $X.X the assumptions market 'XX. depend XX% will factors year and debt website on more quarter other on deck for details

to our opportunity, deliver are how meaningfully Autodesk longer-term our my operating conviction Finally, years joining about I'll the we last December, reaffirmed. share been fiscal framework and seen shareholder sustainable future. the to provided 'XX market over XX% value and our That has our many Since our bottom margins in thinking around said, as revenue expand end capacity our the currently of in over our XX% we been of previously growth to has hovering years growth you've couple past ability underlying guidance.

benefits our the product our believe longer catalyze business appropriate momentum the framework transaction the to sustainable of execution we to resilient new is date. XX% of the and growth no base, given the in future, strategy successful the will XX% model our of growth consistent While

be success our go-to-market the execution primarily years. me and of operations We've phase higher. past other of hand, today is clear continued which customer and it's evolution marketing, optimization, to go-to-market first few that reflects the announced can in our margins On the of overall the

be duplication 'XX best automation, future capabilities overall fiscal We Once guidance, service of capabilities we partnerships expect the focused on Autodesk go-to-market executing while margin will in disruption. also less complete, GAAP and workforce phase, our among for include intend and industry. margins customers plan effort is which in building the we fiscal These operating underlying Through channel more are in 'XX. better optimization digital deliver potential satisfaction reflected and need increases with customer as to productivity. and able this our self-service minimizing beyond expansion optimization tighter we deliver this to while

It's year. been meeting more Day further getting plans finalizing our in path share 'XX on third will there's forward for to over of and can the our work, to invigorating Investor fiscal preparing I We look see potential an investors and at analysts execution, the tremendous this to our weeks. I coming expansion already quarter ahead. margin

Andrew, back to you.

Andrew Anagnost

the focused and go-to-market and cloud you, industry platform, in Thank capitalize that we've is on business convergence it. Autodesk because AI. Autodesk of evolving the and on the of models, cloud forefront Janesh. products and convergence enabled by design been at investing platforms, make the in is and

inferences With in during safety. and world assembled building reduce convergence, the the can at offsite With a and cost power cost valuable all. manufactured convergence, can construction. universal better rework conceptual design AI simulation for make convergence, and better significantly designed can more models higher components a done be lower and on-site that of phase With

a X examples projects major Terminal BART, Bay sixth drive extension, Valley on engineering, few quarter. development from Transit, to better known Area through This delivery. our management digital a its MacDonald, renewal Heathrow the Mott its partnership Silicon global in for Phase you the the EBA give and expands Airport Rapid such consultancy, me renewed long-standing as work Let outcomes quarter. and II

to and design. addition expanding MacDonald capabilities Civil usage optimized plans Autodesk productivity workflows to In Autodesk project Mott XD, and to of Build Revit, for additional increase Water, leverage

helps choice their the unifying construction at as protect contractor Autodesk in seamless Power This teams Design, essential integrity, strategic Design project Build specialty Autodesk systems. construction, enhances collaboration #XX and technology. ensuring coordination and ENR scale. design an efficiency between drive concept to design optimize Power and data XXX selected from workflows across link completion, By

a displaced partners solutions, integration preconstruction is this GC, commercial demonstrates gave competitive comprehensive with the migrating that partner implementation Cloud Using Cleveland leveraging with transition. its management of proprietary this our data channel national and and Construction I the an end-to-end from earlier to to platinum support GCPay. with and a technology a our phase Construction, plan project Construction, talked produced to growth Autodesk's from for its next potential. deal solution cost replacing Cleveland about flow-through make confidence Autodesk solution payments that

and to project stories These decreasing a processes while people, increase common across risk. the and have efficiency theme. data Converging sustainability life cycle

end-to-end comprehensive drive like segments industry Our growth larger extend construction. platform and our convergence into cloud and infrastructure further footprint and

progress, logos. of added the As our quarter, a new and in construction accelerated revenue sign we net almost XXX fourth growth

Moving strategic initiatives. excellent on their progress our growth Customers and transformations platform our Design on to to manufacturing. and and made consolidate in We to invest on increase resilience. continue digital Make drive

Autodesk's manufacturing unique in Forma is X Autodesk media digital across and new and to Flow, design of make. usage launching toys of into product physical goals leader expertise data and its its and between and global clouds, bridges a while Fusion, to expanding development models across AECO, example, industry manufacturing industry all revenue profitability meet entertainment. in For digital our

Swiss family-owned be digital a and outcomes workflows key and partners plant renewed connecting design expanded as in to optimize project it delivery, multinational in strategy to execution Autodesk its by manufacturer, strategic of including moves and plant one and quarter. data product Buhler, from the Buhler's equipment of their installation. for the EBA development will

will able this its Industrial industrial CAD, connected PCB metalworking MSC Supply, leading product position to the will best-in-class metalworking toolpaths that efficiently recommendations Through capabilities Autodesk distributors team through enhanced cutting of North and manufacturing cloud of relationship, specialists customers. begin program. MSC's enhance in supply validating and CAE be further unique tooling to with categories, one OP capabilities all-in-one more AP the chain CAM, optimize Fusion's across largest and platform industry-leading virtual testing leveraging parameters strengthen optimization, application their for strategic America

America, of creates for capabilities, in fiscal MSC's million services approximately this solutions manufacturers resulting combining year proposition Autodesk partnership XXXX. customers and in North with in savings unmatched Fusion's By value suite an MSC's $XXX advanced in for

Autodesk, Converged the team. data for opportunities with opens sales this case in new

As Fusion prices average customers driving gains attach customers increasing productivity where AI. extension we up, seek deploy meaningful and innovation, to delivering efficient drive are rates and we're to sales

AutoConstrain process a time to in of acceptance For has the leverages Fusion, sketch example, our recently suggested launched saving XX% which for significant simplify defining rate AI roughly work. geometry, tool on geometry, higher-value

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

Institute solutions industry-ready memorandum programs generation QX, into understanding in example, For of of a engineers Bombay education and Technology Autodesk to signed innovative with IIT designers industry-leading integrate Indian to with Bombay's our the of skills. next research equip and the

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

infrastructure identified supporting For with optimize we administrator sustainability the to BIM its example, process adopting Working in compliance. of working in European we digital development processes, transformation. railway while an gaps and while compliance infrastructure of address together, their

business and greater markets, efficiency. Disciplined growth connected secular a long-term focused customers in is and peers. Attractive operational resilient and our sustained relative momentum to execution absolute delivering and of and generating a to are driving velocity terms ever-more solutions strategy valuable strong

grow value We will In our over reduce are shareholder deliver many value deploying the capital believe business, share these creation enhance over to factors time. years. count combination, we further and sustainable

your our the Throughout and last for extend when Autodesk's departed result been Autodesk. over I a paramount are my success taken have actions even XX This To appreciation to they difficult. drive to we team of our our today. who business remains contribution our to history, commitment as sincere true has decisive restructuring, forward, years members

grateful part done. will you am of everything story, for and You have a Autodesk's be always I

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

Operator

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

Saket Kalia

Janesh. Welcome,

Janesh Moorjani

Thanks, Saket.

Saket Kalia

Maybe XX% little Absolutely. what to key growth rate new while a is no maybe comments I with is, business of start growth appropriate. reason is growth rate over XX% correctly, zoom your you. slow drives into talking question understanding And that business that want for to the maybe to higher medium been why new I'm Andrew, now. business a about new time? medium-term you've longer And bit. the the if growth rate the

Andrew Anagnost

for to right good talk got to you. off, upfront. thinking you've Saket, question. Look, the I think first Yes. Thanks this

I'll on comment past of bit me and a question. Let substance what's then just little answer the in your the happened

off, changing. we past, of first of the to in really the a look is new were Autodesk things back impacting if business we couple couple growth So were was that moving there's last that years. One as things the all

on has measurable a business. productivity that changed things impact with we to So regards a lot balancing of and renewals partner new

to with our things business. all of thing other some the invest customers' in uncertainty, environment. These macro the willingness economic things associated their impaired The was

things the those past. So latently happened in

some we path. going of that we have there's don't that our to growth drive are have to us that forward, things on and control Moving of back control

if control we uncertainty. thing, key first control customers' in businesses up impact will subs related new that That's control, continue, areas, show don't Make the we some we what of do of definitely the and X related one look But The to thinking. one macro and we of things the have category, emerging in is our have our that have at primarily don't high-growth going and the new businesses. to product to

That's where growth. a on our change. time, that allow more optimization our to increasing productivity. going a business all go-to-market to to control. productivity right We're and be the focus on channel. regard we'll to period impacting now we cycle former, a their of productivity new over of them their is in are That's journey now, With of the We've enhance going with on been the

actually of Make emerging side. we includes cycle, industry in this platform high-growth the business is core cloud that invested that's growth The and the other in And and in cloud, risk the AI. the thing investing our in control our on during current driving

things the only So impacts our to these momentum, current continue on business. enhance our going high-growth are having businesses is current to momentum. but are long-term the not these And goal

So business those in growth. are get control confident us the back where long-term can the our floor that reinforcing things that a to are we in feel place our of

Saket Kalia

debates Got it. key you And as been of it. natural Got a has I for maybe Autodesk. one potential segue mean, investor know, the margin that's Janesh. you, on

as you flag margin I the today's is on color that start, were for point, little well. important Andrew's into And announcement, think 'XX us guide more to But a so for the than maybe ahead potential here margins here. it's 'XX to mean, give And I expected to maybe that bit and could restructuring maybe fits just higher debate? how

Janesh Moorjani

Saket. appreciate minds. this I foremost Thanks, of is investors' issues one the on

we're in As I pleased quarter. first, on the us delivered setting I discipline back 'XX a fiscal thank And Betsy to and thanks we for that strong outperformance front. our here, want step fiscal actually look up strong at really to strong that QX for fourth

introduction of continuation expand model. go-to-market, the to hold team reflect It's the also It's since our our effects with our does something that underlying aside new multiyear had model. our the this allowing thoughtfully us in was as for margin and it year margin the journey overall planning of transaction meaningfully talking transaction goals. expansion you the new the announcement non-GAAP quite Today's about when been evolve of fits to operating nicely Andrew very

will and even more when ultimately expands help future. unit driving our cost So go-to-market lowers more customers, tighter customers of eventually opportunity at it and it, look the also motion efficient serving which better I the those in integration market self-service, serving through

focus on to future as So this on margins in we as potential time the higher our opening that we over execute touched opportunities we in I plan have and commentary. conviction drive

Operator

Adam Borg comes Our of from next Stifel. question

Adam Borg

a your Janesh to just control. your overall. administration more ultimately policy tailwind the you Awesome. or new either as macro about regulation that the on Maybe of kind how out love impacts some that's things around hear puts takes comment and their outside how being bit and like question the over then well. little customers decision-making a extend some playing a to X uncertainty shortening to Andrew, piggyback and made Saket's And around customer potential that obviously, conversations for just maybe just immigration to overall questions you're what around to are I'd sentiment, next tariffs, welcome and hearing talk XX I'd a bit with little and about there months? of

Andrew Anagnost

Yes.

question. for Adam. that Okay, Thanks

enough that's fast faith certainty. fueling is way. So move kind of But policy enough. any that first can uncertainty. hearing answer thing certainty, the to react uncertainty navigate through. The angst. our I policy. the is. we to our to to want business a kind It's and not output off, our want It's is, past. is, what work something that's is it's that absorb sustainable the the resilient changes what the policy it want is customers in Autodesk's diversified uncertainty -- policy from place, customer business have of that thing Once It's just We I'm And in want is to not move customers to whatever they in

Operator

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

Jay Vleeschhouwer

range so to and you've words, core Andrew, with multiple last In analyst the XX% with businesses. components its price of and XX% less have the us for call other which new you to business, growth spoken most it, gave respect meeting of volume business, adjacent expansion of, renewal that. company or with your core within the a at previously do as that, of variety elements to

the So of. break pricing elements those or I have and product to previously that perhaps down that Then had from with thinking ] of about growth [ question. range multiple regard leverage in about here thinking terms, queue the maybe you spoken you're a volume how

Andrew Anagnost

focus think delivers something of create that's channel over multiple some important tailwind will years. thing the on. business to through move these to I'm more thing within said going for a what back go be It's our a critical cycle. and part It's optimization that of I X That all key And Jay, core issues. I previously us. to for that on is these productivity focus as to Enhancing going these our elements. channel subs changes, Yes. we ongoing

I you that robustly And emerging And make are been we of and to that or those always think businesses rate. that at that clearly plan. the to have a our rate sure continue accelerate growing very beyond businesses see Make part investing grow the are

to time. now of terms over business So to be that's right the it want focus in where to we back you where getting want

Jay Vleeschhouwer

of and about Okay. product changes for talk the the Maybe you AU. business investing go-to-market of impact at the what and to optimization forth, platform this talked so and beyond are various Outside thinking about technology you or would say on executables critical how so and the are reallocating or year services, about consistently in? you're so most new that data and we've models things forth, recently that

Andrew Anagnost

Yes.

our doing we're maps of what the industry road cloud. we're with some is So associated accelerating

So you're the of cloud. And things the see of more to that. energy activity side and more with and the Construction AEC side going the you're the and industry associated with going activity associated associated to driving see Cloud Forma to Fusion some

that. in made investments there's So

the clouds expanding of are granular we customers Within expanding the all the accessing that only but that about the investing to not that customers are industry that's available our can accelerate platform, our in the common and services accessing. are so that it's data core APIs to footprint customers, what our available

of investment. that's part So the

And features. crank the to continue of going on turn of to course, AR we're some the

by going real investment used rate, a it really gets and That's that's introduced high where customers is smarter into just Fusion. the technology the our approximately generative we of going. a be our it really XX% AI users. those, first know, There's that AutoConstrain just tool for acceptance As for And productivity to feature right? difference. rate It's is makes generative a which got a It's as you goes. there, Jay, a commercial more getting feature. It's a AI, out our

Operator

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

Jason Celino

Great. One in then guide force. question on and the reduction the

why that cognizant reduction. of changes. and conservatism large just a quite extra some It's But got the revenue on is potential guide I the I'm understand business disruption? momentum, does the any assume change just you're making you've Now

the to you guide relative have what into that? guess I So built

Janesh Moorjani

This is I'll that. take Janesh. Maybe

potential 'XX then a So overall as to And our range some for place factor possible we and did of our I building the have CRO from in in sales We've the these risk opening in associated prudent fiscal plans actions forecast. manage level mitigation consider that bottoms-up outcomes the mentioned commentary, guidance of approach did we thought plans to we good it's in the with put to those. our and transition. outlook. restructuring consider But

our guidance does that. So reflect

Jason Celino

I prior any And calls, renewals, there that or EBA might customers on you mentions still on really a then cohort for up Okay. some this And what's appreciate Is for an coming big up be a were this cohort, that of this year? that. brought for opportunity bigger call. multiyear on wasn't built-in? details how of

Janesh Moorjani

cohorts as for before. it this on We product opportunity. because it really an up come EBA that renewal we has multiyear still It's year. We've as the mentioned have discretely cohort didn't subscription Nothing well will reference changed that front. later got the both

Operator

of comes McGinnis question Taylor next Our UBS. from

Taylor McGinnis

the guide. on margin Just

cost the just maybe with thoughts streamlining can So some really secondly, of expansion? savings, scaling and associated on we and there? might underlying XXXX, margin cost quantify How And when much then savings break margin back down is any from the sales the risk? you force? I the is how that much the XXX from duplicative of just like initial be strong. guess, improvement you points But basis costs potential of can drivers think provide So the about beyond

Janesh Moorjani

Yes, I'm take happy to that.

integrated reinvestment demonstrates overall plans. increase hiring commitment as an to year, margin plan. The guiding and organic impact that plans, operating about that it's obviously, So expanding our is our overall fiscal all to, but underlying we're our the in that and think this the 'XX longer-term of profitability we part of

risks, in that's You mentioned the part field same organization of all the actions taken plan. and that the the and we've

organic 'XX. plans for also had we We our had that hiring fiscal

that it's break apart. So hard of all to

X% are to currency. implies new But fiscal 'XX on year-over-year we grew of give spending, X% our transaction And you constant look only just sense model. 'XX our that thinking at excluding about how it, if total growth that in the said, a similar basis that year-over-year, you of a fiscal total spending,

So spend driving you of extent the discipline a and of optimization the the business overall. are that that both sense we the gives in

Day committed is industry, think get that to details have we'll And margin in as we little I bit what we in we margins then that are Investor underlying 'XX, overall that best ultimately, GAAP little the fiscal when on means complete, terms among the And more we continue. quarter. further a that 'XX as we've in share to about. fiscal bit our basis, talked a of expect go-to-market the optimization will And ahead on and expansion when third an beyond

Operator

comes of question Bank. Shah Bhavin from Deutsche Next

Bhavin Shah

on just that, a up of show you marketing making of you the of Janesh, the to of up kind do and the from seeing about timeline sales of lot what's efficiencies And a sales terms from are perspective? marketing? benefits in revenue adjustments of thinking when you're kind see some and guys kind following that

Janesh Moorjani

seeing a Yes. benefit Bhavin, in significant we itself. here clearly, 'XX are fiscal

set the this customers in set serve Investor to of As to some build I mentioned, investing and so expansion our we plan those we think translates for what terms Day mentioned, spell we need 'XX to drive With we that got more of we again, are will means next that I integrations that's that lower for that to to details We're around as a that do the overall it for partner underlying the in years. the in channel delivering. capabilities up what we've about to beyond, fiscal future respect that activities can our quarter. the And to out of of and the to big need margin be third tighter capabilities part cost we as in build work self-service. year

Bhavin Shah

That's all? sounds aggressive pretty you be in follow-up. I of And at now some are and one talking like a And do guys you're super and these return how changes fiscal from efficiencies, on view to just going the are perspective mean 'XX perspective focus the of quick helpful. it from given your thinking shareholders' change top M&A? actions about about kind line you

Andrew Anagnost

take anything us to will doesn't that into like we change. been our acquisitive If accelerate always that's adjacencies it. always something view M&A relevant we stances are company. previous we company. or that see But Bhavin, on consistent Yes, think looking on on We've can with act our strategy this. the an We're for that,

Operator

Joe from of comes Baird. question next Our Vruwink

Joseph Vruwink

Great.

few wanted change in was if I these is about year. I year-over-year the right on margin of assumptions. upcoming mute. on go Sorry, growth agency correctly, those back the reading just It Slide impact X-point looks like one questions times. I'll a on assuming to get I'm that a you're XX

X-point think I on So a means that headwind margins.

of margins up. slightly flat You're kind to to guiding

on to where to points So can to the you're guiding the you year? bridge you're able get back layer X

Janesh Moorjani

Joe, the I'm headwind. to X-point doesn't is margin to top way a to but translate the right A take revenue that that. about X-point happy headwind think line,

as just slide we've for is same margin the well. that X It's percentage headwind exactly actually that what points. on see You'll spelled out you

currency, that model So on well as an and ultimately as-reported to we XX%. currency. to in to basis to But you our the the would -- that's constant expect as rises XX% transaction XX%, once new adjust XX% have same to

Joseph Vruwink

Okay. about. you're And underlying talking that's the

Okay. And...

Janesh Moorjani

That's you've partner in we in got Keep that as right. commissions well model. mind, pay that

Joseph Vruwink

Yes.

you that product revenue the elsewhere really this think AEC going still environment? difficult manufacturing compresses this are and in like Do kind that that is XX%. of time AEC seems outperforming and just lot challenges the in one through. rates quarter as think good, -- rate. I sense what growth we're would segment to ultimately segments makes of standing just guess And because thing the out new is kind was surprising a see over an environment And a seem bit there's then subscriber it it you a performance and that I the and that's customers as addition of you're the slower as Understood. growth going maybe Okay. builds in there

Andrew Anagnost

Yes.

So what you're construction our quite performance, Construction is in seeing you're all well. is right? doing seeing AEC

got XXX new You momentum We've saw that We've logos. we great a building got added a there. product.

broad is to business Looking really seeing their that. the about to taking The That's present what need you're in end-to-end of payment have wonderful people not seeing implement future, we're what be. to buying get where well. in where construction growth Customers doing forward, We're for They're we're the bullish the product. it. trying to They like needs. business. front They're plans they associated That's with attracted AEC. are very their solution. for,

compared just low to looks upfront in said. last to to digits. double the kind for actually year. have regards take Those we something blips of manufacturing had you is address have account that, that account you with want revenue upfront a you manufacturing that impact I how disproportionate I some when growth that Remember, make on to just also growth, sure into revenue

as actually performing basis. well there a especially peers, to full well on we're relative year So

seeing to doing but more There's Make doubt, they're having no see why an us in So AEC, that's what drive those businesses doing is fantastic. impact. Construction even great. you Revit's you're want really because

Operator

comes question Elizabeth Stanley. from Porter of next Morgan Our

Elizabeth Elliott

Self-service a from of require pretty efficiency. higher complex be software can to given partners. sales that piece or big does drive sounds underlying some And touch like Autodesk the opportunity just a

applicable that Just it self-service? where about think understand to could kind we helpful. of is to today how base help of over should go would could comments very business the be sort it time of and us be where Any

Andrew Anagnost

can every of view. touch business transactional point Self-service Yes. of aspect from about just a our

of a into instance, fact, improving our these of for So as going are matter self-service some the of right reinvestments some out capabilities gate. of

might the drives of and that transaction be own, customers and where for using are their seats upsell what more aware a So you the add things and they on easier it they and what users see immediately. what they own, make need to all cross-sell new basis, capacity, manage

systems focus very automatically that a with building high-value significantly can come that our our are The customers the things other we bunch transactions getting that level, and in that of better we're look, of the resources can do needs those aspects that customer address the at support so low-value there's on self-service returns. on human

business making terms easier as to use of benefit capabilities to easier move our the they self-service. forward from improved lots and and of terms of customers. access, And in work we So with an the every fruit there's self-service low-hanging enhanced in how aspect can of more complete

Elizabeth Elliott

multiyear And At near-term could more are is just we us we're like. should a entering Great. given going help level, just towards phase? journey, understand milestones now it for through we're to what going optimization and key sounds you marketing, and high as a sales longer-term the be phase a versus some this then bit look of just it optimization this

Andrew Anagnost

Yes.

deliberately let to began everybody, began So years a the me of just the we remind to of model planning when this changes. is new phase the phase. move this transaction we first optimization last X connected the planned activity When off, is optimization

and just whole talked a with is high-level get effort. for self-service this I this more overall. relationships The the earlier, certain So duplication and are so optimizing deliberate purposeful, enhancing we reduce also and planned-out our like on efficiency improving efficiency partners system tightening about that main focuses generally from processes, the

phases were efficiency. primarily our aspects some marketing and efficiency of our initial The focused go-to-market on of the some marketing-related of

that business we productivity in the move to with forward. a and more on bit you're us of drill tighter associated partner self-service creating we're there's to and impact As more have making you're bigger see ensuring moving optimization forward, relationships going our see sure relationships, little going that terms a with into partners

with moving partner a on maximizing So the more continuum efficient there enhancing all self-service. through optimization, getting a through marketing from and to starting returns engagement the considering way continuum

to All improvement -- for company. deliver is the the of improvement that margin long-term for going operating income

Operator

Hedberg of RBC. question from comes next Matt Our

Matthew Hedberg

Gen forward AI to should cash guess just we see we flow earlier talk of working think obviously, really Maybe, strong it's product you launch at I the I'm Autodesk. think as wondering how little models guide well. more about out Congrats given, the talked rollouts year how across some And sensitivity with again, a product to should And data there. starting just here really the sort philosophically, the kind great Andrew, Fusion, with is free you bit lot of of Janesh. customer could about pricing? portfolio, around look you generative AI, a Really about a of about these additional specific. again

Andrew Anagnost

enhancing these much Look, Yes. with productivity on we're tools. very customer focused

opportunity bring with of them, customers. productivity the some additional the the AI to tools high-productivity for that get us. some features money we obviously, and so As charge capture to and back more productive, share more the some there's value the we capture to We really we of productivity of

more less essentially you're XD of features the with early more some with models labor. What lot things quickly, that these rapidly customer seeing build help is a

this competitive in situations, hitting as large ecosystem a it very really we in with sets much their to dealing especially up we with that's Fusion be in essentially land, our them competitive where forward. products that makes right and So productivity Fusion more and much of compete more also products move we're

more that completely bring reach kind that companies both smaller and has of the initial already the sizing, look capabilities to things budgets. found in AEC, their of to their for to analysis, BIM we're information features If around doors dedicated some rolled you masses, and productive in models around have that capabilities make at creating, Forma building a bring meaning huge out to and really help Revit be tools building allow conceptual frameworks. people forward is We've up people a servicing possibility smaller and This out of information AI windows different initial doing way. to much early set modeling down

to term. do of those opportunity really long modeling. that's an information of things can building has Forma one with the we're the who expand And footprint targeting

look also productive AI these So potentially market not provide for it new only to to better productivity, long-term value of higher expand monetization look but for for and some competitive our features, highly footprint.

Matthew Hedberg

on color kind of That's Day. you, the for Got QX we're maybe Analyst helpful. to then Janesh, going And more model bit get it. on sounds super a a midterm like one perhaps it

from of Is maybe of -- kind of investors floor of outcome. is end growth? a there how it way question about to kind like as the a that digits? of high XX% a of XX%? XX% about of think Just growth to about single you lower just kind kind of of think think like Is any a kind it range. couple about way that about thinking maybe guess, should end so think guidance of And I like we getting the a today. lower to kind follow-up We're how to

Janesh Moorjani

great with be to and to actually. forward you, reconnected Matt, working looking

underlying if of look have years, last terms of you couple growth to to are the in that effect. we that back that's around in of over And fiscal And transaction fundamentally the X% excluding bottom constant delivered that the of with guiding where we of consistent we currency, actually, 'XX. in So the fiscal X% the in growth new framework been. 'XX, XX%, that's range end model

actually construction fundamentally resilient, especially is overall, period growth as is consistent to our strategy focus the we've over platform think business saying. like driving Make overall on our focus driving and So and and business of performance Andrew and manufacturing that through business, continue growth time, on new was we the had a and sustainable we

Matthew Hedberg

Congrats. guys. Thanks,

Janesh Moorjani

Thank you.

Operator

question next Research. from Our comes Wolfe Joshua Tilton of

Joshua Tilton

hear Guys, me? can you

Janesh Moorjani

Yes, we can.

Joshua Tilton

I have ones. two quick

where ex-transition you The to just next first guiding about X.X% the the give for announcement question year? So this is, what can the Like NRR And benefit customers much into operating to finishing help revenue growth maybe guiding -- my are guidance more year? current this is year How is that recent there margin simple. just you year. the can of existing us factored next example, restructuring for understand for finished is for relative year? or you're growing risk where to relative sense to second any little you're for question core for a then

Janesh Moorjani

those. of both address just I'll Maybe Yes.

of a we on range. terms provided by same we've think are I rate to which to It's fiscal the we about the of it. range, essentially can in reasonably way net quarter. retention the see is It in wide was that points the of how And 'XX, in a guidelines, guiding That's that modeling range a But a -- on as essentially particular the realize around to that around 'XX. and that's we've X% bounce why middle in any is thinking the hovers to you'll retention So put we're the I few wide range net underlying. XXX% rate, a growth the basically view it fiscal X% XXX%. about

we you And the mind would And please? piece. about how are sorry, that question, so thinking second repeating I'm that's

Joshua Tilton

Yes.

into the operating announcement of is year? Just recent benefit how risk much current baked margin or the announcement layoff this for guidance

Janesh Moorjani

Yes.

action guidance already. the our So hiring organic built savings the margin we plan is reinvestment 'XX into for we and obviously, talked from fiscal an But really built the as is integrated year, the guidance earlier, operating for of had as I about plan. any baked the that

And currency. model baked so of overall into year holding is to year at growth I different spending effect X% if growth in transaction think overall the from look model, that we've which might spending the the it, fiscal again, that the a way about this aside X% be constant for new 'XX, last slowing to

Operator

question Turrin next from Wells comes Our Michael of Fargo Securities.

Michael Turrin

Janesh, a how help into I different questions target, can more just set perspective And a you or much on us any because the most long-term getting have But been we're this. just know around context angles you there there decision add few process on this? different the tenure, so assumptions your initially. given that is using can the of just commentary early parse any that's add maybe went it's in where

Janesh Moorjani

we've is business, is and the the I'm recognizing experienced low on to hovering in similar. middle similar The fundamentally, to 'XX we've coming the middle at have of years, looked on being talk past what towards Yes, that And principle And that into inappropriate for couple the past. years, the to really very end that. of we've the it high behind business about view happy an of fiscal of of the as not was against out high And the at core range. end that's there last not a least -- felt have or delivered I range been the this. ranges, in if that we that that And in apples-to-apples to look, my the reality end is that. couple range very been around basis just

resilient But fundamentally, I said, the we when and I a delivered business, consistently, it's as look business. at

outside us deliver that of of been a when couple control. years there's been the of seen over our lot last have external factors You've

been got that through transitions model base. do loyal and business customer You've the a We've seen strong us driving. we've

position are about our very products Our in market-leading positions. good feel We overall.

Michael Turrin

to I you're balancing reduction. right you continuity And helpful Andrew, preserving on color. making know seeing? headcount decisions. ensure of you're momentum that's change tough just speak Maybe efficiency Yes, with business the there, then, the are just how level the these and

Andrew Anagnost

Yes.

So term we trying And balance definitely here. term a long things frame, a we've over we balanced terms risk short long to look at feel taken in the approach reward these the really definitely we we're with what and time did. of like

money optimizations that some into the will future. of systems You additional and to can do see allow future we've the us reinvested in capabilities

to keep into balance a direction, that in cut that trying that we we moving so the guiding. business sure here we're right and of way the risk lot the factored right the we're make of kind So we

continue think move we've increasing to right. ongoing as year. And next think are forward profits done into it So the we I deliver to I going optimizations

Operator

next comes Ken & Company. Our question from Oppenheimer of Wong

Hoi-Fung Wong

I other respect think the is inappropriate the end in the Great. of prior when last putting that realize when Help that some to what on But these one back in have side on goal it Maybe changes to would there to this the us fine, go-to-market think of changes conditions the is changes, that about what XX% delivered XX% guys guys range. to just performance. with the the keep with the XX% number? the a you XX% improvements mean, goals. we with even macro all arguably are Is I be were to with play? go-to-market through should of through the maybe XX% that, channel, better kind XX% that you and the out given work

Andrew Anagnost

up the really at not now. business, changes It's productive the are we're the the energy of you're drive long about productive. that What new more face right to long-term company, areas kind and [indiscernible] want the acknowledgment to to need some where new business spend channel more of show now build we're over improve is going now That's term. in growth the areas channel about time. the growth that all to we the potential the reduction of the time a right getting in Ken, starts has all business over of for The So the some talking where be we're the The is actually to right? is, up right more it on result of a optimizations. hearing revenue as doing of more behavior

really is and Make we're The solution moving other lot excited in our thing the of Design a about customers.

So we're up that, And in to that end-to-end time. Make investing watch That because Autodesk. being penetrating over the growth top for business, clear up long-term the that's by is successful sign bucket line then solution. the book in that front-loading keep shows that real which we're a of new building essentially capability

So not from today. look of contrary, a the business, It's of confidence the that's it. we to growth are the acknowledgment structure the it is in at where retreat long-term but quite at way an

Hoi-Fung Wong

Got it.

are agency as a were on areas along, like, which mapping follow-up internal all Americas, the have quick those Okay. you further Perfect. how Any of update regions And of out of guys just to you are plans. then X how sense just a kind but Would on, out as we of rolled a Obviously, look, across X have kind APAC. tracking? just little now far rolled kind those love the transition. relative

Andrew Anagnost

Yes.

their was of the hitting are few as the going systems renewing. business production to all perceived planned. more the for did were business, to set is that. in some moving now we initial but then see we most most effectively productivity a of than of, originally forward. of working things as through But as the rollouts have we So part, We as help there's okay, bit expected, up systems with of expected, more an for problems end kind we're forward these kind we getting There's these and new pull partners go people through a the work do all manage part, some this little

Operator

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

Simon Mays-Smith

coming the today. Thank seeing over We'll you, for to joining many forward you look weeks. us of everyone,

forward e-mail If our please you catching QX so call. earnings simon@autodesk.com. everyone. Latif. up much, to questions, And goodbye, just on And we any me, look Thanks have

Operator

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

disconnect. now may You

Autodesk (ADSK) 27 Feb 252025 Q4 Earnings call transcript