Autodesk Inc Q1 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Celino - KeyBanc Capital Markets Inc. - Analyst : Great, Andrew. Good afternoon, REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 9:00PM, ADSK.OQ - Q1 2025 Autodesk Inc Earnings Call

Question: Jason Celino - KeyBanc Capital Markets Inc. - Analyst : I know you said that we couldn't say much about the 10- K process, but how would you summarize the key takeaways for investors?

Question: Jason Celino - KeyBanc Capital Markets Inc. - Analyst : Okay. Yeah, I think that's a good clarification. Maybe the next question, my follow-up. So Q1 performance was strong. With you guide probably a little bit better than consensus expectations, but given the full year revenue guidance isn't really changing. I'm wondering how you're thinking about growth in the second half of the year?

Question: Jason Celino - KeyBanc Capital Markets Inc. - Analyst : Okay, great. Thank you very much.

Question: Jay Vleeschhouwer - Griffin Securities, Inc. - Analyst : Thank you. Good evening. Andrew, what would you have to see over the next number of months in the Americas transition that began yesterday to commence the transition in EMEA as early as, say, mid Q3. And if you don't launch in Q3 and it makes no sense to launch in Q4. Should we assume that you would then do EMEA in, let's say, early fiscal '26 and then Asia perhaps three to six months after that?

Question: Jay Vleeschhouwer - Griffin Securities, Inc. - Analyst : Okay. As a follow-up, you used an intriguing comment in your script when you referred to quote velocity and efficiency of R&D, what does that mean how would we see that would manifest, for example, first in AEC or otherwise manufacturing? Given the scale of your R & D, which still the biggest in your peer group, how do you think that plays out over time, but what did you mean by that?

Question: Jay Vleeschhouwer - Griffin Securities, Inc. - Analyst : Thank you Andrew.

Question: Adam Charles Borg - Stifel, Nicolaus & Company - Analyst : Awesome. Thanks so much for taking the question. Maybe just on the macro, Andrew, you talked about I guess a relatively stable backdrop.

Question: Adam Charles Borg - Stifel, Nicolaus & Company - Analyst : And I know fiscal '24 was a softer year for net new seats. I'm just curious if you could talk about how you think about you see growth in '25 relative to 2024?

Question: Adam Charles Borg - Stifel, Nicolaus & Company - Analyst : Incredibly helpful. Maybe just a quick follow-up on project on Bernini in super interesting as a long-term opportunity. How should we think about kind of a timing of this across the three industry clouds and kind of what you do, what does the dream the dream look like in terms of the impact that could have for order growth as they look to take advantage of this capability? Thanks so much.

Question: Adam Charles Borg - Stifel, Nicolaus & Company - Analyst : Thanks again.

Question: Matt Hedberg - RBC Capital Markets - Analyst : Great. Thanks for taking my questions on Andrew, maybe just following up on that last one, when we think about these foundations, the Gen AI foundational models Bernini I know it's still early, but what is sort of the philosophy on pricing? And do you suspect there eventually to be a consumption element to maybe offset some additional compute costs?

Question: Matt Hedberg - RBC Capital Markets - Analyst : Got to thank you for that. That super helpful. And then maybe just on the early renewals you saw in Q1, I assume that was mostly up in anticipation of the transition -- the direct transition. Was that largely US function that you also?

Question: Matt Hedberg - RBC Capital Markets - Analyst : Got it. Thanks a lot guys.

Question: Ken Wong - Oppenheimer & Co. - Analyst : Thank you. For taking my question. Just a quick question back on the investigation. My reading of your commentary was that obviously you guys completed the audit and the SEC kind of may or may not investigate. I guess I just wanted to get clarification from you guys whether or not there is any progress on that front?

Question: Ken Wong - Oppenheimer & Co. - Analyst : Okay, perfect. And then second, just on the I couldn't help, but notice you guys commented on just record construction fee growth. Any color on kind of where you're seeing that obviously, the kind of construction KPIs macro-wise seems a little mixed, but you guys have shown considerable strength there.

Question: Ken Wong - Oppenheimer & Co. - Analyst : Great. Thanks for the context.

Question: Tyler Radke - Citigroup Inc. - Analyst : Thanks for taking the question. Andrew, could you talk about the EBA performance in the quarter? I think to the license and other line outperformed expectations by quite a bit. Was that related to some EBA strength that you saw? And then I'm just given that we had seen some of the EBA contracts come in with multi-year billing. Is that something that you're expecting to see as EBA deals come up for renewal later this year and into next?

Question: Tyler Radke - Citigroup Inc. - Analyst : Yeah. The question was specifically around the invoicing duration and the billing duration. I understand they're contractually multi-years nature, but do you still plan to invoice them, multi-year in advance. But first part of the question is really just around was there outsized EBA strength or any true ups to call out? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 9:00PM, ADSK.OQ - Q1 2025 Autodesk Inc Earnings Call

Question: Tyler Radke - Citigroup Inc. - Analyst : Okay. Helpful clarification. And the second question, Andrew I realize maybe more of a CFO question. So apologies if it's a little down the lead, but just as we're looking at the billings number in Q1, certainly can appreciate there's headwind the domestic number, just given the multi-year strength that you saw a year ago. But investors are doing the calculation around short-term billings, looking at the change in short-term deferred revenue, which it directly doesn't have any impact going from the multi-year at that metric, short-term billings growth, a lot weaker than many of the other indicators of revenue and bookings. Is there anything to call out in terms of maybe why that short-term deferred revenue performance was not as strong any.

Question: Tyler Radke - Citigroup Inc. - Analyst : Okay.

Question: Tyler Radke - Citigroup Inc. - Analyst : Thank you very much.

Question: Joshua Tilton - Wolfe Research, LLC - Analyst : Hey, guys, can you hear me?

Question: Joshua Tilton - Wolfe Research, LLC - Analyst : I apologize for any of the background noise, but I kind of want to go back to the investigations are no definite not the smartest guy on the call tonight. But if I read through some of the bullet points that you guys put out there for investors. It sounded like there were some choices made around collections and that maybe those choices have to change going forward. And I do really appreciate that you guys reiterated your confidence in that FY22 cash number, but I guess was there any change around collections from or practices related to collections that you'd previously undertook? You can no longer hedged going forward that maybe changes your confidence interval around hitting that cash number in FY26?

Question: Joshua Tilton - Wolfe Research, LLC - Analyst : That's helpful. And then maybe just a quick follow-up actually just in a second here, but you kind of referred to the macroenvironment as one-off factors in the business. But as you also mentioned, right? We've kind of been in the states for many quarters now. So I guess, how do you think about the trajectory of the business over the next few years in the context of what might just be a new norm from a macro perspective and not necessarily saying it's getting better, I guess when you guys think about beyond the next few quarters, right? Like is the going rate assumption for Autodesk. This is one-off and things do get better or are you guys playing ball in terms of this game that we've been playing for the last few quarters and just assuming the macro is delayed, is the big this is more of a new norm? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 9:00PM, ADSK.OQ - Q1 2025 Autodesk Inc Earnings Call

Question: Joshua Tilton - Wolfe Research, LLC - Analyst : Thanks, guys. Appreciate it.

Question: Nay Soe Naing - Joh. Berenberg, Gossler & Co. KG - Analyst : Hi Andrew, hi Simon. Thanks for taking my questions. My first question is around your platform cloud offerings have been investing these offerings in both. And we will continue to invest into them as well. If you could speak a little bit more to what sort of R&D commitments that we should expect as a result of that. So taking R&D as a percentage of revenue here, should we expect that intensity R&D intensity to remain at FY24 levels in the near future or. As should we should we expect that to tick up as a result of the investments in your cloud offerings. Cloud platform offering specifically? And then linked to that, when do you expect these offerings these new offerings to become to start to contribute meaningfully in your top line growth? Please thank you.

Question: Nay Soe Naing - Joh. Berenberg, Gossler & Co. KG - Analyst : That referring to the three cloud offerings, three industry cloud platform. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 9:00PM, ADSK.OQ - Q1 2025 Autodesk Inc Earnings Call

Question: Nay Soe Naing - Joh. Berenberg, Gossler & Co. KG - Analyst : Yes.

Question: Nay Soe Naing - Joh. Berenberg, Gossler & Co. KG - Analyst : That's really helpful. Thank you very much. And on R&D, I just wanted to make sure that I understood you correctly here to the R&D as a percentage of revenue as an intensity that should remain at current level because R&D is really important for the business. But and should we expect that to tick up given that you're obviously investing in the platform services and also you're complementing your ACE offering overall as well?

Question: Nay Soe Naing - Joh. Berenberg, Gossler & Co. KG - Analyst : Okay, understood. Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 9:00PM, ADSK.OQ - Q1 2025 Autodesk Inc Earnings Call

Question: Elizabeth Porter - Morgan Stanley & Co LLC. - Analyst : This is Elizabeth Porter always the quarter on for Keith Weiss. I wanted to ask on just the cadence of M&A. And we've seen some recent activity with Wonder Dynamics and PIX adding to payoffs. So how should we think about this as a lever in driving faster innovation in the portfolio? And then related, I think the prior guidance assumed about a half point tailwind from acquisitions. Is it fair to still think about that number, just given some of the more recent announcements? Thank you.

Question: Elizabeth Porter - Morgan Stanley & Co LLC. - Analyst : Great. And then just another one on the transaction model. I believe you referenced just the potential for some uncertainty around rolling out the model and leaving room for that in the full year guide. I just want to better understand what those friction points would be, whether they're partners or customers what they look like? And then just double-click on the guardrails or processes you have in place to mitigate that risk?

Question: Elizabeth Porter - Morgan Stanley & Co LLC. - Analyst : Right. Thank you.