Autodesk Investor Day 2025 | Oct 08, 2025

Welcome everyone and thank you for joining us today. We're delighted to have you with us. My name is Simon May Smith and I am the VP of investor relations. We have a great lineup of presenters for you today. We're going to start with Andrew, then have detailed presentations from many of our leaders and then we'll finish with Janesh's financial update. We have two short breaks planned and there will be a Q&A session with the entire executive team at the end. Before we start, I have two process items to cover. First, please enter your questions any time during the webcast in the Q&A tab. We'll get to as many of them as we can in the time available. And second, let me share our safe harbor statement with you. I'll let you read through it, but in summary, we may make forward-looking statements during the course of this presentation. Please refer to our SEC filings for information on risks and other factors that may cause our actual results to differ materially from these statements. Now with that, let me hand it over to Andrew to kick it off.

We had close to 100 different contractors working with thousands of individual members at any given time. Autodesk Revit and Autodesk AutoCAD Civil 3D are our core design softwares. Being able to bring those two tools together to coordinate on either side is incredibly valuable for the design process and the construction process. The collaboration is instantaneous. We were able to use tandem to bring all of our project models and our facility models together. We're looking at dozens of systems at any given time. It's not just about here's the data on the screen. It becomes a real place that tells a story.

Thank you, Andrew, and good morning. I am Raji Arasu, Autodesk CTO leading our technology strategy and platform initiatives. Today, I'll share some context, progress, and plans on AI and our platform efforts. Our platform powers AI native cloud connected workflows across industries and life cycles. It is anchored by three industry clouds for Fusion and Flow on a list platform services called APS which provides shared capabilities like cloud trust data AI and ecosystem. The two objectives of a platform are enhancing customer outcomes to grow existing and new businesses and boosting employee productivity to free capacity and speed up innovation. As Andrew outlined, our customers face talent shortages and project backlogs that limit growth. And we can solve that with automation powered by AI. AI creates digital capacity, filling unfilled roles and enabling our customers to do more with less. Industries leading in AI adoption already see 3x higher revenue growth per worker. Some of our largest customers are realizing this today and many more are turning to Autodesk to help unlock capacity through AI. Now let's look at our approach to AI and how it delivers customer outcomes through automation. We see three levels of AI automation unfolding across our industries over time. Each step builds on the previous step and delivers great customer value. It starts with strong AI foundation which Autodesk has shaped by years of investment in research, industry specific AI foundation models and granular cloud connected data models. The first level is task automation. Task automation is the broadest area of impact and benefits to our customers. These automations cut down repetitive error-prone work and give teams more time for creativity and problem solving. Second level is workflow automation. This is where we begin to automate end-to-end workflows often spanning multiple disciplines, multiple industries or multiple products. Third level is systems automation. This is the most transformative level of automation where AI can start assistive but turn more autonomous with time and human confidence. Orchestrating workflows that span multiple phases or even automate complete phases within a project life cycle. We are delivering AI features that span all three levels of automation. And we will share that value creation in two ways. Access to certain AI features will be included with our product subscription driving retention and share shift to our products. However, AI features that deliver very high value automation or are compute intensive in nature will be available for limited use with our product subscription. When customers hit usage limits, we will provide options to buy more. We are advancing these automations through three categories of AI work. Core, agentic, and neural. You can already see all three categories of work at play across our products and industry clouds. Let me start with core AI. This is a foundation AI that is embedded directly into how we build software. Traditional coding is giving way to an AI first approach where models are the new engine of product innovation. Our development teams are blending the best external AI technologies with our own proprietary models to deliver AI features faster than ever. And customers are seeing immediate value through these AI features that are delivered in our core products. Here are three examples, one from each industry. The quotes and testimonials from these customers are proof points that they're meeting design intent and outcomes, cutting down development time significantly, and freeing up creative time for their teams. Next up is Agentic AI. A key part of our agentic AI strategy is the re-imagine Autodesk Assistant. A powerful Agentic AI partner for design and make shaping the future of work for our industries. Autodesk assistant is the intelligent entry point into Autodesk products that automates repetitive tasks, helps with timely decisions and provides guidance and insights in real time through conversational prompts, powered by user and industry-aware context. As it learns over time, it will become a high-performing team member that our customers cannot live without, helping them consistently meet complex outcomes and grow their business. We showed a lot of assistant demos at AU last month that assist, provide insights, and automate to unlock capacity for our customers. Let me give you one example that goes across our products. For admins, Autodesk Assistant helps manage team members secure access to Autodesk products while suggesting usage optimization for power users or occasional users. Now moving on to our third category, neural technologies drive all levels of automation but deliver the greatest value in systems automation. These neural technologies will play out in all parts of design and make life cycle. Delivering design to production or script to screen. But to start with the most impactful is applying these technologies to the design process to generate options that meet complex outcomes. It is about building the living learning neural functionality for tomorrow that augments 40-year-old parametric CAD engines of today so we can tackle more complex designs with current human capacity. Hence our focus is neural CAD and the foundation models within that category where we can generate 2D 3D geometry in new ways that deliver multimodality precision and editability for our industries. We announced neural CAD last month at AU. These are domain-specific generative AI foundation models that offer novel ways to explore solutions and generate geometry to transform design and make. Let us deep dive into two neural CAD applications that we announced. Neural CAD for geometry infusion. It can create flexible and intelligent designs as editable CAD geometry, giving our customers control to edit as if they modeled the geometry themselves. The second foundation model, neural CAD in Forma, turns concept models into viable and editable building plans in minutes, automating code, budget, and environmental checks that today take architects and engineers months and often lead to costly rework. These capabilities are accessible both directly integrated into our industry clouds as well as through Autodesk Assistant. While these two are new neural AI features, we started this journey last year where we launched auto constraint, an AI feature powered by neural CAD that generates sketch constraints during product design infusion. As you see from this code from JDD, auto constraint is delivering and with increased usage, we at Autodesk get to iterate and improve model performance. Our AI work is supported by three key enablers. Data, ecosystem, and trust. You have heard us talk about these enablers in the overall platform context before. These enablers are serving us well by creating leverage and speed and I will speak about how we are evolving them rapidly to incorporate AI. Starting with data, our customers need access to granular and interoperable data to make AI work. And the work we have been doing in this space over many years is enabling us to push the boundaries in AI for design and make. First, AI cannot use data that is locked inside files. Our work to date in making design data for AEC and manufacturing more granular through industry data models has accelerated customer benefits and the buildout of our foundational models. We will continue to expand the data in these models for all three industries with entire project and product life cycle data to help customers derive powerful insights and predictions. For AI to get workflow automation right, data needs to flow across tools in a secure and reliable way. This is where our data exchange connectors help with selective, secure, and controlled data sharing across Autodesk and non-Autodesk systems. Usage of these connectors has grown 5x in the last year alone, and we announced three more connectors last month. We are also solving interoperability through seamless native geometry mapping and design tools that help customer pain points of time lost in rework and unlocks new possibilities for AI. And our customers are already benefiting from our data solutions. Two examples, PC and WSP are able to expand their capacity and deliver stronger business outcomes through granular and interoperable data. Our next enabler for AI is a platform ecosystem. Customers have been extending their workflows and building custom solutions using Autodesk API for years. And as they see value, our ecosystem use continues to grow and so has our API usage. Let me share some customer testimonials on how they're leveraging our APIs for automation. In these examples, both BAM and Ramall turned disconnected data across systems into connected workflows and empowered real-time insights, thereby dramatically expanding their capacity and unlocking better business outcomes. Our ecosystem partners have been building a variety of different solutions using our APIs. We have recently seen a rise in AI agents and MCP servers on APIs and I'm confident this growth will only accelerate as the agentic technologies mature. In fact, AI agents are expected to become the primary users of most enterprise systems over time. We are preparing for this paradigm shift through a flexible business model that monetizes the use of our APIs for a future that includes human typical use versus machine and agent-driven use that is aimed at automation. Therefore, we're introducing a new usage based pricing model for APIs at the end of this year. Customers with product subscription can continue to access select APIs with generous monthly limits. However, when their usage goes past these limits, additional charges will apply and they will have options to buy extra usage. We will start rolling out this change for a small set of our APIs later this year and more will follow over time. Our third enabler is trust. Our trust efforts have always been focused on security, privacy, and reliability. We have been expanding these efforts to now include trusted AI. Our goal is to deliver trusted enterprise-grade AI. Transparency and trust have never mattered more and we have been backing it up with real action like transparency cards, customer trust councils and the adoption of global frameworks and certifications. And now Autodesk is one of the first few companies globally to achieve ISO 4201, the world's first international standard for AI management. This isn't just a compliance certificate. It demands rigorous risk controls, clear accountability, and continuous monitoring. This reinforces our commitment to trust while building confidence with our customers and the clients that Autodesk is setting a high bar under responsible AI governance and data stewardship and we continue to make progress in supporting customer requests to keep data in various regions around the world. Earlier this year, we announced five additional regions as primary storage location for our customers project data in key offerings within Autodesk Construction Cloud which is also now part of Forma and we will continue to expand into more regions and products in the future. We talked about how we are working to drive better customer outcomes through our platform strategy. A second major goal of our platform is to improve our internal productivity as a company resulting in increased speed and innovation for our customers. Internal productivity is delivered through shared capabilities and making the best AI tools available to our employees. Let's talk about shared capabilities first. This is about building once and reusing everywhere across our three industry clouds in the broader Autodesk portfolio. We continue to see productivity benefits from shared capabilities. Let me highlight just a few. The common AI/ML platform capability which we call AI/ML portal ensures that Autodesk AI features are built in a well-governed scalable and cost-effective way from the start. It provides common pipelines for data acquisition, training and inferencing out of the box. Teams can get started to build AI features nine times faster using this portal. Our platform based regionalization approach has sped up cloud regional delivery, helping us expand up to five regions and creating the capability to stand up any of these quickly in the future. And our latest model viewer capability shared across multiple products is now able to load models that are four times larger in size since last year. Now let's talk about how we're using AI tools internally to boost employee productivity. Our philosophy on AI productivity is simple. Give employees secure access to the best AI tools. Govern data acquisition and model training with enterprise-wide standards and let grassroots innovation drive productivity gains. Most of our development teams use AI coding tools, saving one to three hours every day, helping us channel this capacity towards building more AI and data capabilities for our customers. On the customer success side, our Autodesk assistant has made it easier for customers to self-serve their support needs with human escalations reducing to under 15% in the last two quarters. And in marketing, average time to first touch for leads is down by about 60% over past 12 months, enabling faster customer engagement. These are just a few examples. Many other functions and disciplines within the company are applying AI tools towards eliminating repetitive tasks or reimagining workflows to accelerate outcomes. So what sets us apart? First, we are building AI native products and solutions using an AI first approach. This is now at the core of what we build and how we build for our customers. Second, we are tackling our customers biggest capacity challenges with AI and data and we're already seeing strong signals that it is working. And third, we have a vibrant ecosystem of partners and third-party developers with double-digit API adoption today. This community will help us accelerate to a future workforce that consists of humans and agents unlocking capacity for our customers. Many are daunted by the technological advancements happening and the possible disruption. However, we see immense opportunities and are laser focused on realizing this for our customers and Autodesk. We're moving faster than ever before, but are doing so intentionally and responsibly. Thank you. Now, handing over to Jeff Kinder.

Thanks, Raji, and good morning everyone. My name is Jeff Kinder and I lead design and manufacturing at Autodesk. I'm excited to talk with you about the tremendous opportunity we see in the manufacturing industry and how we've positioned ourselves to continue driving growth and increasing our share. We have three key areas of focus to cover. First, I'll talk about where we win today. Specifically, the continued growth of our design and manufacturing portfolio, as well as the disruption we're driving in the industry with Fusion, our AI native cloud for manufacturing. Next, you'll hear about how we're leading the industry in unlocking new growth levers with AI. And finally, we'll look at future growth coming from our expansion into adjacent manufacturing segments. Before we dive in, let's start by looking at the total addressable market for design and manufacturing as well as some of the key trends impacting our customers. Manufacturing is generally considered the largest contributor to global GDP outside the services industry at approximately 17%. Adoption of technology in manufacturing is relatively mature. Thus, the design and manufacturing software industry is vast, a $58 billion opportunity in terms of end-user expenditures across design, make, and operate. Breaking that down a little further, of the total addressable market, design accounts for $30 billion, make is $8 billion, and operate is $20 billion. These updated numbers from our last investor day in 2023 reflect opportunities we see in application life cycle management and model-based systems engineering on the design side, as well as supply chain management and process execution systems on the operate side. Our belief is our expertise coupled with recent acquisitions and importantly the adoption of AI will open up these areas. Many of the trends impacting our industry are not new and they're interrelated. Macroeconomic uncertainty continues to be top of mind for manufacturers and the tax on manufacturing businesses from trade wars, geopolitical tension, and recurring supply chain disruptions is leading manufacturers to prioritize resiliency and agility in operations. A strong domestic manufacturing sector is a priority all over the world. However, skilled labor and raw material shortages create some limits in how well and how quickly manufacturers can adapt to this volatility. AI is going to help with these limits. And so, it's no surprise that activity related to AI is picking up and adoption is rapidly increasing among manufacturers. I showed this slide at our previous investor day. Most of our large competitors focus on the enterprise with highly customized on-premise solutions. Our focus has been on the mid-market manufacturers which have historically been underserved. The mid-market is behind on digital transformation efforts. They may have old outdated machinery or software tools. Skilled labor is difficult to attract and margins are narrow. We see significant growth ahead in the mid-market displacing SolidWorks. Our thesis continues to be if we build scalable modern cloud-based solutions that are priced effectively, those solutions will steadily move up market and disrupt the enterprise. And as you'll hear shortly, we are proving this path to be true. Fusion is increasingly serving larger and larger customers who are looking for solutions that are cost-effective, easy to implement, and scale. It's important to remember that mid-market manufacturers are the backbone of the global manufacturing industry. In fact, the World Economic Forum has found that small and medium-sized enterprises represent 90% of the world's manufacturing firms globally, and that percentage is even higher in the United States. Moreover, the mid-market accounts for approximately 40% of software expenditures. The mid-market opportunity is big and will continue to fuel our growth in the near term as we serve larger and larger manufacturing customers. We serve these customers by adhering to a clear vision, end-to-end design and manufacturing processes coming together in the cloud with connected data and connected teams powered by AI. Now, let's look more closely at the continued growth in our portfolio. A quick reminder about how we see the software evolution in design and manufacturing. Point solutions such as Inventor, Vault, and Alias have served our customers well for decades, and they will continue to serve our customers. Our competitors have similar point solutions. However, to unlock the next breakthrough productivity gains, manufacturers need to move to an industry cloud. In our case, Fusion, which brings disparate processes together into one end-to-end solution. The convergence of design and make in the cloud is a discontinuous disruption in our industry. Executed well, it delivers intelligent AI powered automation and breakthrough productivity gains for manufacturers. We believe the foundation to that disruption is derived from three successive layers of advantage with Fusion. First, a convergence of product development workflow capabilities in the cloud. Second, centralized and granular data accessed via a unified data model. And finally, AI automations capable of transforming our industry. We've long been investing in AI, machine learning, and generative design. It's what pushed our early move to the cloud, ensuring we had strong foundational blocks for AI in place far ahead of our competitors. This is where we see the future. As we lead the way through this evolution to Fusion, we maintain growth across our product portfolio by serving customers of our desktop products well. We want to ensure a smooth path to the future for those desktop customers when they are ready. Our desktop customers continue to realize value today while positioning themselves for an increasingly productive future. As we have developed Fusion, we were deliberate in how we segmented target markets for our products. Fusion largely targeted new or emerging segments, and not surprisingly, Fusion's growth has outpaced our desktop products. This segmentation has worked, but as Fusion matures, this is starting to change. Customers outside the initial target segments are adopting Fusion. Sometimes they adopt Fusion to complement other products like Inventor. Sometimes it's to move to the cloud. This is a trend we expect to continue. One customer seeing benefit from both our desktop and cloud products is Moto Luch based in Austria. Moto Luch is a leading manufacturer of innovative high-quality lighting solutions. Moto Luch's mechanical engineers utilize Inventor for the detailed design of their LED luminous lights and then seamlessly transfer the models to Fusion to run precise thermal and cooling simulations. With Fusion's easy to use simulation tools, engineers without specialized backgrounds can quickly detect issues, interpret clear feedback, and adjust designs early on. This seamless Inventor Fusion integration enables fast, reliable iterations that avoid delays, save costs, and accelerate development. Now, let's focus on Fusion specifically, where growth is happening now. Fusion has rapidly matured over the past few years, and today, Fusion is actively entering its next phase of growth. We're beginning to see adoption by larger and larger companies to serve new and higher value segments of the professional market. I can highlight three forces propelling this growth. The first is new capabilities such as cloud-based configurations, integrated PDM and PLM, improved assembly performance, and a cloud-based bill of materials. We have dramatically expanded our cloud data management capabilities, setting a new standard in the industry. Our cloud PLM capabilities enable real-time collaboration, automated change processes, and streamlined workflows, all integrated with a unified design and make platform for smarter, faster product development. The second force is our business model, specifically Fusion's disruptive price point and flexible offering. We are delivering unprecedented value to manufacturing customers. In Fusion, we have unified design, simulation, electronics, manufacturing, data management, and factory operations into one fluid environment. Whereas our competitors come with much higher price tags for multiple point solutions that are difficult to integrate. Our base subscription meets the end-to-end design and make needs of most small to midsized companies, and extensions are available for more sophisticated needs. This latter approach and the inherent flexibility of extensions allow customers to choose what works for their needs so they can align value with usage. This model is beneficial to both our customers as well as to Autodesk. As evidence this approach is working and delivering more value to customers, we have seen growth in the average billings per Fusion transaction. This increase is a result of three conscious efforts: increased attachment of extensions, added capabilities which support a higher price point, and less discounting. The third force that continues to propel Fusion's growth is our large, passionate community. Even as we grow in larger accounts, we continue to nurture the Fusion base. They are part of what fueled Fusion's early success and momentum with product-led growth. This community has never been more important than it is today in the world of AI, where AI search pulls from real-time signals on social media platforms to detect what topics, products, and opinions are trending. The Fusion community is active and engaged across multiple social media platforms, including Instagram, Facebook, YouTube, and Reddit. Not only do users help each other and evangelize for Fusion, but they also give us direct feedback on what the product needs to do better. And I should mention our largest single community: students. We have had over 7.5 million education users of Fusion to date. We are training the next generation of design and make professionals with the software tools of the future. Swiss Drones is a great example of a customer that's putting the full depth and breadth of Fusion's capabilities to work. Swiss Drones uses Fusion for all aspects of product development from early concept to final release. Fusion connects engineering, manufacturing, and integration teams in one shared environment where changes appear instantly across the globe. The ability to adapt quickly in a fast-paced but heavily regulated industry is what will define leaders in the unmanned aerial vehicle sector. And Autodesk tools are a key part of how Swiss Drones will achieve this. Let's shift now to how we're driving growth in the near term through AI. The manufacturing sector is on the cusp of a paradigm shift powered by AI. There have been two major paradigm shifts in the design and manufacturing software market over the last 40 years. Each of these shifts led to significant value creation and share shift. Multi-billion dollar companies emerged. The first was the shift to parametrics in the late 1980s, enabling faster iteration and more accurate engineering. The next was the adoption of 3D models on Windows-based platforms in the late 1990s, where user-friendly design and simulation tools became widely available and accessible to new users. We believe AI will be the next big paradigm shift and the winner will be whoever thinks boldly, moves fast and executes well, willing to challenge existing processes in order to unlock value and productivity for customers. We have an advantage here given our early move to the cloud and its foundational role in developing AI capabilities. We're leaning heavily into AI to lead the paradigm shift and we have been investing for a long time. You've seen our capability framework already from Raji and Andrew. Foundations were critical. Then we started with boring AI but very valuable task automation. The transformation really begins with workflows and systems automation. Many of these capabilities will be included with the subscription and drive share shift to Fusion. Some of these capabilities may be capacity controlled and charged on a pay-per-use basis, but all are happening in parallel and they will continue to deliver value well into the future. We have a range of task automations already in market and many more that will be delivered agentically through the Autodesk Assistant. We chose these based on known customer pain points in the design and make process and we know we focused on the right tasks based on the adoption and feedback we've received from customers. These capabilities are being readily adopted by our customers who are hungry for improved productivity. And as I said at the outset, manufacturing customers are already embracing AI. What gets really exciting and will be even more transformative is when multiple tasks come together leading to entirely re-imagined workflows. Three-letter acronyms start to converge.

I'm Diana Kala, executive vice president of media and entertainment at Autodesk. I'll provide context on the industry and challenges, then explain how we are uniquely positioned with our products and AI, and how Autodesk Flow will expand our market. The M&E software industry is driven by increasing consumer spend, but studios have lost over $30 billion creating streaming content since 2020, and AAA game costs have risen tenfold. AI will play a vital role in reducing costs, and Autodesk is well positioned. We have been investing ahead in cloud and AI. AI will not kill software; it will supercharge it. We are driving disruption with both SaaS and AI. Our TAM for M&E software including AI is $8.5 billion, with potential downstream creator economy opportunities. Consumers crave bigger experiences, driving complexity and cost. AI will reduce this. We are leaders in 3D content creation with Maya, 3ds Max, and Flow production tracking. We are adding value to our M&E Collection with new offerings like Gollum and Flow Studio. Gollum allows artists to quickly animate crowds, saving days to weeks. Flow Studio is our AI solution for creating animated content, combining specialized AI models for high-quality results with orchestration and editability. It unlocks the creator economy. We also embed AI into our core tools: Motion Maker automates human/animal animation, ML Deformer simulates skin and muscle movement, and Face Animator matches lips and face to audio. These reduce labor and broaden our customer base. Our third opportunity is transforming the production pipeline with Autodesk Flow, a connected cloud platform that links pre-production, production, and post-production. For example, Flow production tracking helps manage schedules, integrated workflows connect desktop products to the cloud, and Flow Capture bridges on-set and post-production with seamless data sharing and enterprise-grade security. Major studios trust us. This positions Autodesk as the central hub across the production life cycle. We will win because we set the industry standard for professional productions, we are creating AI disruption rather than waiting for it, and we are architecting the future with Flow as an end-to-end platform. Thank you. I'll turn things over to Amy Bunzel.

Thank you, Diana. I'm here to share how Autodesk is driving growth by enabling AECO customers to accelerate digital transformation. The AECO industry benefits tremendously from digital transformation. Construction spending is projected to reach $15.7 trillion in 2025, and companies will spend $51 billion on technology by calendar 2028. Only Autodesk can support both design and make professionals at every step. Our TAM breakdown shows design is largest but make and operate are growing faster. Construction monthly active users are growing 101% over three years, nearly four times faster than design. Our customers face increasing demand, regulatory requirements, and resource constraints. AI tools and data explosion create a compelling case for digital transformation. Autodesk has a history of leading industry shifts: from drafting to AutoCAD, then to BIM, and now to connected data and AI. Our Forma industry cloud, combined with the Autodesk Construction Cloud, becomes the first end-to-end AI-native design and make platform for AECO. We are driving growth in our core BIM portfolio by embedding AI in Revit and AutoCAD, enabling natural language prompts and automated calculations. Our data management unlocks value by moving from file-based to granular data, with Autodesk Docs and Forma data management at the center. In construction, we are innovating with preconstruction solutions, field capabilities, and the integration of Autodesk Build and Pype. We win with customers like Chandos. In transportation, we are bringing BIM to roads and highways, with a $7.4 billion opportunity by FY2029. We have wins with state DOTs globally. In water, we serve a $3.4 billion software opportunity, leveraging integrations with Civil 3D, Tandem, Forma, and partnerships like Esri. Water utilities like Oklahoma City choose us for common environment modeling and digital twin foundation. Finally, our Forma industry cloud is driving the next paradigm shift in BIM, with Forma building design, collaboration capabilities, and connected clients like Revit. This creates new business opportunities and on-ramps for desktop users. Thank you.

Professionals will start on this journey with us. We're also developing new business models like API and AI monetization and consumption pricing to bring value to both Autodesk and our customers. To close, I want to share how we will remain leaders in the AECO industry. Autodesk has built decades of trust with our customers. The depth and breadth of our portfolio is unmatched, and we have the only industry cloud that connects the full breadth of design and make for AECO. Our investments in AI and automation will secure our place in the future. It's not just about our customers. We also have a tremendous ecosystem of strategic partners, third-party developers, and channel partners that expand our reach and relevance across the building, transportation, and water industries. We are not resting on our laurels. We are building the future with Forma, the first ever end-to-end AI native industry cloud for AECO. By bringing together our current and future strengths, we are positioned to grow and transform the AECO industry. And now I'd like to hand it over to Steve.

Thanks Amy. Hi everyone. I'm Steve Blum, Autodesk COO, and it's my pleasure to step you through an overview of our go-to-market evolution. We've been on a multi-year journey evolving the Autodesk go-to-market to create smarter, more automated customer experiences that best position us to drive efficient, sustainable growth. Our focus today will be broken into three sections: the journey transforming our go-to-market system, the evolution of our go-to-market model focused on delivering a world-class customer experience, and the efficiencies and growth levers to drive sustainable long-term growth. We have a proven track record of successful business transformations, moving from perpetual licenses to subscription and cloud, modernizing license compliance, introducing consumption models, and evolving our partner framework. We replaced our legacy tech stack with a modern SaaS-based stack, starting with financial systems, then customer-facing systems, the Autodesk store, Flex consumption, multi-year orders, and the new transaction model. The new transaction model enables direct relationships with customers, giving us high-fidelity data to drive higher renewal rates and expansion opportunities. Customers benefit from self-service, automation, and price predictability. Now, let's move to the evolution of our go-to-market model. Factors shaping it include customer demand for integrated solutions, industry shifts toward value-oriented pricing, and AI reshaping workflows. We offer subscription, consumption, and Flex models, and will enhance consumption capabilities for API access and AI monetization. We plan to roll out a design and make marketplace. We continue to evolve the customer experience with self-service, AI insights, and segment-specific experiences. To share an example, let's look at Mott McDonald, a global engineering consultancy. We changed their engagement by focusing on an extended value chain, industry focus on water infrastructure, and consultancy services. This resulted in a 60% increase in total deal value, 180% increase in cloud monthly active users, and 130,000 hours per year in time savings. Now, I thought you'd like to hear directly from them. So here's Mott McDonald's global CTO, Corey Dipple, discussing our trusted relationship.

Corey, tell us a little bit about yourself and about Mott McDonald. ... Surprise business agreements for everybody. ... As you look over the horizon and you think about the future, what excites you the most? ... Mhm. ... Decades, centuries to come. Love that.

Mott McDonald is a pretty good size engineering and advisory consulting firm primarily involved in civil infrastructure and major project delivery. We have different sectors: buildings, energy, water, transportation. In 2007, we did our very first EBA with Autodesk. Yeah, and I think that was one of the very first ones. That really kicked off this partnership. The relationship we have with Autodesk has grown from client-vendor to a true partner relationship. Some of the jobs we have are so big and complex that I don't know how we would attack them without Autodesk's thinking, leadership, and insight. The built environment has flourished, but often at the expense of the natural environment. The tools, technology, and leadership we have working together allow us to face complex global challenges. I'm excited about the opportunity to work on truly mega projects that can be transformative for both environmental and human benefits for centuries to come.

I am really proud of the work we've done with Mott McDonald and look forward to continuing this long-term strategic relationship. We are also evolving our go-to-market model through our global partner ecosystem, focusing on moving solution providers from transactions to strategic value creation. We provide them with high-fidelity data from the new transaction model, enabling a complete view of the customer. Solution providers now focus on value-added consulting and IP development. We are reshaping our channel framework to incent new customer acquisition and expansion. We have approximately 1,260 solution providers and distributors in 190 countries, with three times the number of people through partners compared to Autodesk employees. Partner consolidation has been beneficial and will continue. Now, let's move to the third section: driving sustainable growth through efficiencies and growth levers. We will remove friction from the new transaction model, automate capabilities for self-service renewals, leverage AI for repeatable tasks, and simplify processes. The changes earlier this year are producing benefits. Growth levers include driving more traffic and conversions in Autodesk stores, higher renewal rates via automation and better data, expansion opportunities for solution providers, high-growth businesses in construction, infrastructure, and Fusion, and new monetization opportunities like modernized subscription success offerings, API monetization, and a design and make marketplace. To summarize, Autodesk is positioned for its next chapter of growth through the transformation of our go-to-market system, model evolution, and focus on efficiencies and growth levers. Thank you for listening. It is now time for our next break. We will see you back here shortly.

Thank you Steve. Hi everyone. I'm Janesh Murjani, the CEO of Autodesk. It's great to talk with all of you today and share how we're driving sustainable and efficient growth at scale. I'll cover how Autodesk has transformed over the last decade to become a larger, more cash-generative, resilient, and less volatile business, and how we're driving sustainable growth and efficiency at scale through our financial principles, revenue growth, margin, and capital allocation. We set out a high-level roadmap at our September 2021 investor day. Since then, we've rebuilt our internal tech stack from legacy on-premise to modern SaaS, transformed our product portfolio by shifting from product-only to product-platform, connecting adjacent workflows, and building platform services. These serve as a foundation for AI. For investors, these changes have increased the value of our business: we are larger and generate more cash, more resilient with predictable recurring revenue and annual billings, and we've developed new ways to deliver value to customers, enabling growth and efficiency. Our financial principles guide us: drive consistent organic revenue growth, balance operating leverage with disciplined investment, drive predictable cash flow growth, and deploy cash to highest return opportunities. Our financial framework focuses on revenue growth, profitability, cash flow, and capital allocation. Revenue growth is driven by secular demand for digitization and automation. AI will expand our TAM and we will monetize it through subscriptions and consumption models. Our business mix includes AECO, AutoCAD, manufacturing, and media. We have core products with long-standing growth drivers and newer products like Fusion and Construction growing faster. We expect significant operating profit and margin growth, targeting 41% non-GAAP operating margin in fiscal 2029. Cash flow will be tightly correlated to net income. We will prioritize organic R&D investment, targeted acquisitions, and share buybacks. We are managing stock-based compensation to below 10% of revenue. To summarize, we intend to deliver consistent revenue growth, 41% operating margin in fiscal 2029, and a lower share count over time. We are working to simplify our story as business model transitions fade. And with that, Andrew, I'll hand it back to you.

Welcome to the Q&A session everyone. I hope those presentations were useful. I have all of the presenters here with me on stage. Looking forward to hearing your questions. As a reminder, please put them into the question box on the Zoom. We'll get to as many as we can. Just while we collect some, I'm going to throw one to Andrew. Andrew, can you just...

Share the three key things you want investors to take away from today?

Fantastic. So let's move on to some of your questions. Jay Flehower, Griffin Securities at AU. The company spoke of disrupting ourselves, rebuilding the IP stack and no one gets left behind. Those are individually difficult to do. How do you foresee managing these collectively as internal and external executables? And Jay, that's a hard question to pronounce.

Fantastic. So let's move on to Adam Borg Stifel. Same for Steve. Can you provide actual customer examples of how the new transaction model is leading to better renewal rates and/or additional cross sells with the more granular understanding of customers with a direct relationship?

Brilliant. So let's move on to Taylor McInness at UBS. In infrastructure, what's driving the interest in chasing this opportunity today versus the past? Is it more under penetrated versus other areas, more resilient versus commercial today, etc. And what are you doing differently either on the product side or go to market side?

Thank you Andrew. So a couple things are driving the interest. Obviously it's a huge market and what is working in our favor is that the projects are getting more and more complex. So that's requiring people to digitize further. And for Autodesk, we're able to bring building information modeling directly into infrastructure. And we're also now able to connect design and make with the Autodesk construction cloud. So we have quite a few things working for us as people are needing to do more digitization and rethink their existing legacy tool set as they move forward.

Brilliant. So let's move on to Naso Nang from Baronberg. How should we think about inventor's future with Autodesk product within Autodesk's product portfolio? Will it merge with or get absorbed into fusion as the focus shifts more towards fusion? How do you plan to ensure there is no limited customer churn within the inventor customer base?

Thank you Andrew. Thanks for the question. You can think about inventor as a connected client to fusion with a long future in our product portfolio. It's similar to how we think about Revit and Forma. I mean both inventor and fusion are growing nicely. And what we actually see more is complementary usage of both inventor and fusion as shown in the Molto Luch example during my presentation. Now this is a result of targeting specific markets for inventor and for fusion but what we've heard is inventor users like some of the features they see in fusion so that drives that complementary behavior. Over in the future we think fusion and our industry clouds is where you're going to find breakthrough productivity gains where customers are going to find breakthrough productivity gains. But we're committed to making that path very smooth by having connected clients that work really well with our industry clouds.

Brilliant. So, let's move on to Elizabeth Porter at Morgan Stanley. You've completed the roll out of the new transaction model as mentioned and you're in the optimization phase earlier this year. Can you provide specific metrics on the sales and marketing efficiency gains achieved so far and how we should think about the timeline in reaching the FY29 margin target?

Happy to take that. Thank you, Elizabeth. So as everyone knows we initiated the optimization phase of the whole go to market plan earlier this year and through that we made a number of changes along the way. We had the reduction in force that we did in February and that has helped drive some of the near-term efficiencies that gave us room to reinvest in some of the capabilities that we are building out and will hold us in good stead for the next set of optimizations that we need to drive. If I think about the progress that we've made so far. You'll see it in a number of different ways. We for example we talk about the strength in the store and that reflects partly the strength of the direct selling motion. But ultimately you'll see that reflected in the sales and marketing as a percentage of revenue. So as I think about our path to achieving our fiscal 29 margin target that we've laid out, continued sales and marketing optimization is part of that journey and you saw me describe a number of different levers in that regard. There's also the continued operating leverage that we will have in the business. And the one thing that I'll just remind folks of is that in fiscal 27 we will have an incremental headwind associated with the new transaction model as that fully scales and that's been considered in the overall margin target that we set for 29 as well. Our path to achieving that number will therefore be nonlinear. And Elizabeth, if you're modeling it, if you look at sales and marketing as a percent of revenue excluding new transaction model costs and then revenue excluding new transaction model costs, you'll see apples for apples that ratio beginning to tick in the right direction over quarters.

So Clark Jeff at Piper Sandler, what are the financial benefits from bringing more of the company's AEC functionality into Forma? Do you plan to onboard customers who may have been Revit only AutoCAD only customers in the past to more i.e. Autodesk's construction cloud? Would you consider developing AI features for Forma, formerly Autodesk Construction Cloud?

Thank you. So a couple things here about our strategy with Forma. As Andrew mentioned earlier and I spoke about, we are making sure that our Revit installed base can come with us to the future. So all Revit customers whether they're in the collection or standalone are getting the Forma site design and the Forma building design. So this really will enable them to be on this journey to the future with us. And then we've delivered, we're delivering these Forma connected client capabilities so that there's seamless workflows between the two. Now on the AutoCAD side, Forma represents a significant opportunity for us to help the people who have never really adopted BIM experience BIM in a new way. So the AutoCAD installed base, many of the architects out there that are not yet using BIM, represent a net new opportunity for us here with Forma. And then a couple of things about the construction cloud. So we absolutely have lots of AI inside the construction cloud and our ability to put both design and make data in Autodesk Docs now Autodesk Forma data management will allow us to create insights and deliver AI capabilities that span the entire project life cycle which is a huge unique advantage for us here at Autodesk.

Fantastic. So let's move on to Michael Turin at Wells Fargo. You mentioned API monetization a few times during the presentations we did. Sounded like we'll start to roll out at the year end. Are customers ready for that? And how do you communicate the value proposition there clearly to help ensure the transition as seamless as possible?

As you know, at AU we actually announced the fact that we're going to start rolling out this stuff and customers are ready for that. One of the key things that they have, you have seen in my presentation, we talked about the growth that you have seen in APIs and our customers are seeing value and when they see value they want to be able to have the predictability to understand what parts of it are included in their subs and what parts of it is a non-typical use that we can actually monetize. And I think we're in such a great place because we have rolled out consumption based model for a long time and this is a fantastic time for us to actually start using it for a capacity based consumption model and they like the predictability of us announcing it, getting ready for that. They see value. There'll be more growth that you see in APIs with all the MCP and agentic workflows and this is a great time for us to sort of really create those rate cards that they can use.

Fantastic. Thank you Rajie. So, Adam Borg at Steve Leone, would be great to walk through an example of what the APIs are to understand it a bit better and the value customers derive from calling them. How does revenue recognition work for consumption-based API and how does a shift to consumption-based pricing impact the model?

So I'll touch on that. And you'll have seen in some of the prepared content that consumption now makes up about 17% of our revenue and the vast majority of that has actually been ratable revenue recognition with a small amount which is largely for Flex being primarily usage based. Over time as machine usage expands, I think there will be more usage based revenue recognition that comes into the model, but that will play out over a relatively long period of time and just given the size of the business that we have in the aggregate, it's not going to be a meaningful driver in the near term, but that is something that we will keep a close eye on and we'll continue to monitor over time.

Okay, so let's go back to Michael Turin at Wells Fargo. How can we think about the impact to gross margins as you grow your cloud products? Is there a certain time frame you're thinking of and is this factored into the long-term fiscal 29 gross margin target?

I'm sure there'll be more than one that I'll have to take. But as I think about Michael to answer the second part of the question first and to give you the punchline, it is factored into the fiscal 29 overall operating margin target that we laid out. In terms of how we think about it though, ultimately as cloud workloads increase in mix, they are gross profit dollars accretive. So we do look forward to that and the faster they scale, that would actually be representative of our strategy working with respect to AI and cloud. So actually from my perspective that's a great thing for us. Ultimately the pace and adoption will vary based on how quickly we roll out products, how quickly that technology is adopted. It'll depend on a number of external factors as well. I do think it plays out over a long period of time like I just mentioned. But overall we feel pretty positive about the direction and the trajectory for us.

So let's go to Sacket Kalia at Barclays. Janesh, you talked about consistent organic growth and you've talked about reaching 41% in margins in fiscal 29 in a range of different growth scenarios. Can you put a finer point on those growth scenarios and what a sustainable growth rate looks like?

Yeah, so I'll take that Andrew. Sak, I'm happy to describe that. I think it's the way I would describe the overall assumptions underlying the long-term margin target that we laid out, which I described on the earnings call as well. So, if I just step back and look at the business overall, first off, we've been growing at a very consistent rate over the last couple of years, and fiscal 26 is no different. We've got sustainable and consistent, resilient revenue growth in the business. We've also spelt out a number of growth drivers for you in terms of what the future might look like and all the different initiatives that we've got underway and the opportunity set that lies ahead of us, as you can see, is very rich. So, we feel very good about our future as well. That said, as I mentioned just a minute ago, the path to AI adoption and the pace of adoption of some of these technologies is something that we'll be monitoring carefully over time. The other factors also to keep in mind are just what might happen in the broader macro environment over that period of time. As well as the go to market optimization that we've got underway and we want to make sure that we execute well through that. So I think those are some of the factors that we considered and that's why as we on balance considered all of these, some puts some takes, we focused on the 41% margin target instead which we think is achievable under a range of growth scenarios.

Great. So let's go to Matt Hedber at RBC. Can you help us understand how the global buildout of the new power facilities and AI data centers can help drive growth in infrastructure and construction and how we should think about the monetization timeline?