Financial Data and Key Metrics Changes - Total revenue in Q4 grew 12% year-over-year, with broad-based growth across products and regions [18][19] - GAAP and non-GAAP operating margins for Q4 were 22% and 37%, reflecting year-over-year increases of 90 basis points and 160 basis points, respectively [21] - Free cash flow for fiscal 2025 was $1.57 billion, exceeding guidance [22] Business Line Data and Key Metrics Changes - By product in constant currency: AutoCAD and AutoCAD LT revenue grew 9%; AECO revenue grew 15%; manufacturing revenue grew 10%; and M&E revenue grew 10% [18] - Direct revenue increased 35% in constant currency, representing 47% of total revenue, up 8 percentage points from last year [19] - Contribution from the new transaction model to revenue was $46 million in Q4 and $71 million for the year [19] Market Data and Key Metrics Changes - Revenue grew 11% in the Americas, 13% in EMEA, and 11% in APAC in constant currency [19] - RPO (Remaining Performance Obligations) of $6.9 billion and current RPO of $4.5 billion grew 14% and 12%, respectively [20] Company Strategy and Development Direction - Autodesk is focusing on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI [11][36] - The company is initiating an optimization phase of its sales and marketing plan to enhance customer satisfaction and productivity [8][10] - Future focus includes tighter channel partner integration and broad deployment of self-service capabilities [10][34] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty continues to impact customer willingness to invest, but they are optimistic about new product subscriptions and emerging businesses driving growth [58][60] - The company expects constant currency billings growth of 17% to 19% and revenue growth of 8% to 9% for fiscal 2026, excluding the impact of the new transaction model [28][29] - Management emphasized the importance of executing their go-to-market optimization plan to drive higher margins over time [65][100] Other Important Information - The company plans to buy back between $1.1 billion and $1.2 billion of shares in fiscal 2026, a 30% to 40% increase compared to fiscal 2025 [31] - Autodesk is committed to further margin expansion beyond fiscal 2026, aiming for GAAP margins among the best in the industry [100] Q&A Session Summary Question: What drives new business growth higher over time? - Management indicated that enhancing channel productivity and investing in emerging high-growth businesses will drive new business growth [58][60] Question: Can you provide more color on margin potential and restructuring? - Management expressed confidence in margin expansion due to strong fiscal discipline and the ongoing optimization of the go-to-market strategy [62][65] Question: How is macro uncertainty affecting customer sentiment? - Management noted that customers desire certainty and that uncertainty is fueling customer angst, but they believe Autodesk's diversified business can absorb policy changes [72][73] Question: What are the critical product or technology executables for the future? - Management highlighted investments in industry clouds and AI capabilities as key areas for future growth [81][82] Question: How does the revenue guide reflect potential disruption from restructuring? - Management acknowledged that the guidance considers potential risks associated with restructuring and the CRO transition [88] Question: What is the timeline for seeing benefits from sales and marketing adjustments? - Management indicated that significant benefits are expected in fiscal 2026, with ongoing investments to build capabilities for future optimization [106] Question: How does Autodesk view M&A in light of recent changes? - Management reaffirmed their commitment to being an acquisitive company, looking for opportunities that align with their strategy [108]

Market Performance - Market indexes are struggling despite positive Q4 earnings, with the Dow down -193 points (-0.45%), S&P 500 down -94 points (-1.59%), Nasdaq down -530 points (-2.78%), and Russell 2000 down -34 points (-1.59%) [2] - Over the last five trading days, all major indexes have declined, with the Nasdaq experiencing the largest drop at -6.8% [2] Housing Market - January Pending Home Sales decreased by -4.6%, significantly worse than the expected -1.0%, although it shows slight improvement from December's -5.5% [3] - High mortgage rates continue to hinder the housing market, alongside cold winter weather [3] Q4 Earnings Highlights - AutoDesk (ADSK) reported Q4 earnings of $2.29 per share, exceeding expectations of $2.13 and last year's $2.09, with revenues of $1.64 billion surpassing the $1.63 billion consensus [4] - SoundHound (SOUN) reduced its loss per share to -$0.05 from an estimated -$0.11, with revenues of $34.54 million reflecting +101% year-over-year growth [5] - Rocket Mortgage (RKT) beat earnings estimates by a penny at 4 cents per share, with revenues of $1.2 billion exceeding the $1.16 billion forecast [6] - Duolingo (DUOL) reported a +51% year-over-year increase in Daily Active Users (DAU) to 40.5 million, with revenues surpassing expectations, although shares fell -4% in late trading [7]

Core Insights - Autodesk reported better-than-expected earnings for fiscal Q4 2025, driven by a successful transition to a subscription model and strong global performance [1][2] Financial Performance - Non-GAAP EPS for fiscal Q4 2025 was $2.29, exceeding Wall Street's consensus by $0.15, while revenue reached $1.639 billion, closely aligning with the expected $1.631 billion [2][3] - Year-over-year revenue growth was 11.6%, up from $1.469 billion in fiscal Q4 2024, with subscription sales contributing significantly [3][6] - Free cash flow surged to $678 million, a 58.8% increase from the previous year [3][8] - Operating margin improved to 37%, compared to 36% in the prior year [3][8] Business Model and Strategy - Autodesk has transitioned from selling perpetual software licenses to a software as a service (SaaS) model, emphasizing cloud integration [4] - The subscription model allows for more predictable revenue and enhances competitiveness in the market [4] - The company invested $393 million in R&D during the fiscal quarter, focusing on AI and generative design [5] Market Performance - Subscription revenue grew 13.7% to $1.522 billion, making up 97% of total revenue [6] - Revenue growth was notable in the Americas (11%) and Europe/Middle East/Africa (14%), with the AECO segment increasing by 15% [7] Future Outlook - For fiscal 2026, Autodesk anticipates revenue between $6.895 billion and $6.965 billion, with non-GAAP EPS projected to range from $9.34 to $9.67, indicating confidence in growth [9] - Ongoing investments in R&D, particularly in AI and cloud technologies, are seen as crucial for future success [9]

Core Insights - Autodesk reported revenue of $1.64 billion for the quarter ended January 2025, reflecting an 11.6% increase year-over-year, with EPS at $2.29 compared to $2.09 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.63 billion, resulting in a surprise of +0.50%, while the EPS also surpassed expectations by +7.51% [1] Financial Performance Metrics - Billings reached $2.11 billion, surpassing the five-analyst average estimate of $2.06 billion [4] - Net Revenue from Maintenance was $10 million, below the average estimate of $11.26 million, marking a year-over-year decline of -28.6% [4] - Net Revenue from Other sources was $107 million, compared to the average estimate of $121.05 million, representing a -7.8% change year-over-year [4] - Subscription Revenue was $1.52 billion, exceeding the six-analyst average estimate of $1.50 billion, with a year-over-year increase of +13.7% [4] - Total Subscription and Maintenance Revenue was $1.53 billion, slightly above the six-analyst average estimate of $1.51 billion, reflecting a +13.2% year-over-year change [4] Product Family Performance - Net Revenue from Media and Entertainment (M&E) was $84 million, slightly below the estimated $87.70 million, but showing a +9.1% change year-over-year [4] - Net Revenue from Other product families was $29 million, in line with the estimate of $29.04 million, with a +7.4% year-over-year change [4] - Net Revenue from Architecture, Engineering and Construction (AEC) was $799 million, exceeding the average estimate of $795.40 million, representing a +14.8% year-over-year increase [4] - Net Revenue from Manufacturing (MFG) was $318 million, slightly above the estimated $317.61 million, with an +8.9% change year-over-year [4] - Net Revenue from AutoCAD and AutoCAD LT was $409 million, surpassing the two-analyst average estimate of $400.40 million, reflecting an +8.5% year-over-year change [4] Stock Performance - Autodesk shares have returned -6.1% over the past month, compared to the Zacks S&P 500 composite's -2.2% change, indicating potential underperformance in the near term with a Zacks Rank 4 (Sell) [3]

Autodesk (ADSK) came out with quarterly earnings of $2.29 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $2.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.51%. A quarter ago, it was expected that this design software company would post earnings of $2.11 per share when it actually produced earnings of $2.17, delivering a surprise of 2.84%.Over the last four quarters, the c ...

This presentation contains forward-looking statements that involve risks and uncertainties, including quotations from management, statements in the paragraphs under "Business Outlook" above, statements regarding reallocating internal resources, our new transaction model and sales and marketing optimization, statements about our short-term and long-term goals, statements regarding our strategies, market and product positions, performance and results, statements regarding our share repurchase programs, and al ...

Design software maker Autodesk said Thursday that it will lay off 1,350 employees, which works out to 9% of its workforce.The job cuts follow a series of large headcount reductions across the tech industry. In January, Meta said it would let go of 5% of its workers, and earlier this month Workday, which sells human resources and finance software, announced an 8.5% decrease. In November, chipmaker AMD said it would let go of 4% of its staff members. Google this week also announced cuts to its human relations ...

Financial Performance - Total revenue for Q4 FY25 increased 12% to $1.64 billion, with recurring revenue representing 97% of total revenue[4] - Total net revenue for the three months ended January 31, 2025, was $1,639 million, a 11.6% increase from $1,469 million in the same period of 2024[44] - Subscription revenue reached $1,522 million for the three months ended January 31, 2025, up 13.6% from $1,339 million in the prior year[44] - Net income for the fiscal year ended January 31, 2025, was $1,112 million, representing a 22.7% increase compared to $906 million in 2024[44] - Autodesk's net income for the fiscal year ended January 31, 2025, was $1,112 million, an increase of 23% compared to $906 million in 2024[46] - The company reported net cash provided by operating activities of $1,607 million for the fiscal year 2025, up from $1,313 million in 2024, representing a 22% increase[46] - Free cash flow for the fiscal year 2025 was $1,567 million, compared to $1,282 million in 2024, marking a 22% increase[50] Revenue Growth - Total billings rose 23% to $2.11 billion, indicating strong demand for Autodesk's offerings[6] - Design revenue reached $1.36 billion, a 12% increase, while Make revenue grew 28% to $176 million[6] - Total subscriptions increased by approximately 516,000 to 7.79 million, reflecting robust customer acquisition[10] - Remaining performance obligations (RPO) indicate a strong future revenue stream, with the current amount expected to be recognized in the next twelve months[33] Operating Margins - GAAP operating margin improved to 22%, up from 21% in the previous year, while non-GAAP operating margin increased to 37% from 36%[4] - Non-GAAP operating margin for the fiscal year 2025 was 36%, compared to 36% in 2024, indicating stable operational efficiency[49] - The company anticipates a GAAP operating margin of 21% to 22% for FY26, with a non-GAAP operating margin forecasted at 36% to 37%[52] Cash Flow and Assets - Cash flow from operating activities for Q4 FY25 was $692 million, an increase of $255 million compared to the previous year[6] - The company’s cash and cash equivalents decreased to $1,599 million as of January 31, 2025, down from $1,892 million a year earlier[45] - Total assets increased to $10,833 million as of January 31, 2025, compared to $9,912 million in the previous year, indicating growth in the company's financial position[45] Workforce and Restructuring - The company announced a restructuring plan resulting in a 9% workforce reduction, affecting approximately 1,350 employees, with anticipated pre-tax charges of $135 million to $150 million[4] - The company incurred $683 million in stock-based compensation expense for the fiscal year 2025, slightly down from $703 million in 2024[46] Future Projections - For FY26, Autodesk projects total billings between $7,060 million and $7,210 million, and revenue between $6,895 million and $6,965 million[17] - The first quarter FY26 revenue guidance is set between $1,600 million and $1,610 million, with GAAP EPS expected to be between $0.76 and $0.90[16] - For Q1 FY26, Autodesk expects GAAP EPS to be in the range of $0.76 to $0.90, with non-GAAP EPS projected between $2.14 and $2.17[52]

Core Points - Autodesk, Inc. announced that Mary T. McDowell will not seek re-election at the 2025 Annual Meeting of Stockholders, having served on the Board since March 2010 [1] - The Board Chair, Stacy Smith, expressed gratitude for McDowell's contributions, highlighting her leadership in driving significant growth, profitability, and shareholder value over the past 15 years [2] - Autodesk is undergoing changes in its Board composition, with Lorrie Norrington also not standing for re-election, while John Cahill and Ram Krishnan are joining the Board, enhancing its expertise [2][3] - The company is committed to maintaining a strong Board with independent and engaged directors, ensuring effective oversight of its strategic execution [3] Company Overview - Autodesk provides technology solutions for designers, engineers, builders, and creators, enabling them to design and make a wide range of products and structures [4] - The company's Design and Make Platform leverages data to enhance insights and automate processes, empowering customers to achieve better outcomes for their businesses and the environment [4]

Financial Results - Autodesk is set to release its fourth-quarter financial results on February 27, 2025, with expected earnings of $2.14 per share, an increase from $2.09 per share in the same period last year [1] - The company projects quarterly revenue of $1.63 billion, up from $1.47 billion a year earlier [1] Full-Year Projections - For the full year, Autodesk anticipates revenue between $6.12 billion and $6.13 billion, with earnings expected to be between $8.29 and $8.35 per share [2] Stock Performance and Analyst Ratings - Autodesk shares closed at $285.67, reflecting a gain of 0.7% [2] - Analysts have varying ratings for Autodesk, with Rosenblatt maintaining a Buy rating and a price target of $325 [3] - Baird raised its price target from $330 to $345 while maintaining an Outperform rating [3] - Stifel increased its price target from $340 to $360, also maintaining a Buy rating [3] - Citigroup raised its price target from $358 to $361 while keeping a Buy rating [3] - HSBC downgraded the stock from Buy to Hold with a price target of $290 [3]