Autodesk (ADSK) Q2 2026 Earnings Call August 28, 2025 05:00 PM ET Company ParticipantsSimon Mays-Smith - VP - IRAndrew Anagnost - President, CEO & DirectorJanesh Moorjani - EVP & CFOSaket Kalia - Managing DirectorAdam Borg - MD - Enterprise SoftwareJay Vleeschhouwer - Managing DirectorElizabeth Porter - Executive Director - Equity ResearchJoshua Tilton - DirectorSiti Panigrahi - Managing DirectorKoji Ikeda - Director - Enterprise Software Equity ResearchConference Call ParticipantsJason Celino - MD & Equity ...

Financial Data and Key Metrics Changes - Autodesk reported a total revenue growth of 17% year-over-year, with an 18% increase in constant currency [9] - Billings increased by 36% as reported and 34% in constant currency, reflecting a shift to annual billings for most multiyear contracts [10] - Free cash flow for the second quarter was $451 million, benefiting from earlier timing of billings [11] - The company raised its full-year billings guidance range to $7.355 billion to $7.445 billion and revenue guidance to $7.025 billion to $7.075 billion [13][16] Business Line Data and Key Metrics Changes - The AECO sector showed strength due to sustained investment in data centers, infrastructure, and industrial buildings, offsetting softness in commercial [8] - The contribution from the new transaction model to revenue was approximately $105 million, while billings from the new model were about $129 million [9][10] - The company noted consistent MACE revenue growth when excluding the impact of acquisitions [10] Market Data and Key Metrics Changes - Autodesk's performance in the U.S. and international markets remained strong, with notable growth in the Middle East and India due to infrastructure investments [65] - The company experienced strong momentum in the construction business, with no signs of deceleration [42] Company Strategy and Development Direction - Autodesk is focused on cloud, platform, and AI strategies, optimizing sales and marketing to drive higher operating margins [6] - The company aims to enhance its position in the construction sector through comprehensive end-to-end platforms and industry clouds [21] - Autodesk is investing in AI and generative design to improve productivity and streamline workflows across its product offerings [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum despite geopolitical and macroeconomic uncertainties [6] - The outlook for the second half of the year remains cautious, with expectations of continued strong performance in the construction and AECO sectors [12][76] - Management emphasized the importance of execution and control over factors that drive revenue and operating margins [13][68] Other Important Information - The company has initiated a sales and marketing efficiency plan to enhance operational leverage and margin expansion [14] - Autodesk's share buyback targets for fiscal 2026 have been raised to between $1.2 billion and $1.3 billion, a 40% to 50% increase compared to fiscal 2025 [16] Q&A Session Summary Question: What is Autodesk's appetite for transformative M&A? - Autodesk's capital allocation strategy prioritizes organic investments, with M&A considered for targeted acquisitions that accelerate existing roadmaps [34] Question: Can you elaborate on the operating margin goal for fiscal 2029? - The margin expansion will largely come from sales and marketing efficiency, with inherent operating leverage contributing to the goal [37] Question: What is driving the ongoing momentum in the construction business? - The construction business is performing well across various segments, with strong international growth and a comprehensive end-to-end platform [42] Question: How is the EBA renewal opportunity shaping up for the back half of the year? - Autodesk has a large pool of renewals and feels well set up for the back half of the year, with strong execution in the first half continuing [48] Question: What are the dynamics behind the increased billings guidance? - The increase in billings guidance reflects strong performance in AECO and construction, with net revenue retention rates remaining robust [52] Question: How is Autodesk addressing customer adoption of new technologies? - Autodesk is seeing increased API usage and customer adoption of granular data, indicating a positive trend in technology acceptance [56] Question: What is the outlook for the second half of the year given the cautious guidance? - The cautious guidance reflects a prudent approach, but management expects to outperform the low end of the range if current momentum continues [104]

Financial Performance - Q2 FY26 - Billings reached $1,678 million, a 36% year-over-year increase[5] - Revenue totaled $1,763 million, up 17% year-over-year[5] - GAAP operating margin was 25%, a 2 percentage point increase[5] - Non-GAAP operating margin was 39%, a 1 percentage point increase[5] - Free cash flow was $451 million, a 122% increase[5] Revenue Breakdown - Q2 FY26 - Design revenue was $1,472 million, up 17% year-over-year (18% in constant currency)[7] - Make revenue was $194 million, up 20% year-over-year (20% in constant currency)[7] - Americas revenue was $786 million, up 19% year-over-year (19% in constant currency)[7] - AECO revenue was $878 million, up 23% year-over-year (24% in constant currency)[7] FY26 Outlook - Billings are projected to be between $7,355 million and $7,445 million[9] - Revenue is projected to be between $7,025 million and $7,075 million[9] - Free cash flow is projected to be between $2,200 million and $2,275 million[9]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Autodesk reported strong Q2 FY26 results, featuring **17% revenue growth** and management's positive outlook on AI innovation and raised full-year guidance [Q2 FY26 Financial Highlights](index=1&type=section&id=Q2%20FY26%20Financial%20Highlights) Autodesk reported strong second-quarter fiscal 2026 results, with revenue growing 17% year-over-year to $1.76 billion, demonstrating robust performance - Second quarter revenue grew **17 percent**, and **18 percent** on a constant currency basis, to **$1.76 billion**[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted Autodesk's AI leadership, strong AECO performance, and raised full-year guidance reflecting business strength and foreign exchange tailwinds - Autodesk is at the forefront of innovation in **generative AI**, building **industry-specific foundation models** and products capable of understanding 2D and 3D geometry, design data, and physical behavior[2](index=2&type=chunk) - Q2 saw **strength in AECO**, benefiting from sustained investment in data centers, infrastructure, and industrial buildings, offsetting softness in commercial. The Autodesk Store, billings linearity, and up-front revenue were **stronger than expected**[2](index=2&type=chunk) - **Full-year guidance was raised** to reflect the underlying strength of the business in the first half of the year and additional foreign exchange tailwinds[2](index=2&type=chunk) [Q2 FY26 Financial Performance](index=1&type=section&id=Q2%20FY26%20Financial%20Performance) Autodesk demonstrated robust financial performance in Q2 FY26, with significant growth across key metrics including revenue, billings, and free cash flow [Overall Financial Metrics](index=1&type=section&id=Overall%20Financial%20Metrics) Autodesk delivered strong Q2 FY26 financial results, with significant year-over-year growth in billings (36%), revenue (17%), GAAP operating margin (2 ppt increase), and free cash flow (122%) | (In millions, except percentages and per share amounts) | | Q2 FY26 | YoY Change | |---|---|---|---| | Billings | $ | 1,678 | 36 % | | Revenue | $ | 1,763 | 17 % | | GAAP Operating Margin | | 25 % | 2 ppt | | Non-GAAP Operating Margin | | 39 % | 1 ppt | | GAAP EPS | $ | 1.46 | $ 0.16 | | Non-GAAP EPS | $ | 2.62 | $ 0.47 | | Cash flow from operating activities | $ | 460 | 117 % | | Free cash flow | $ | 451 | 122 % | [Net Revenue by Product Type](index=1&type=section&id=Net%20Revenue%20by%20Product%20Type) In Q2 FY26, Design revenue grew 17% (18% constant currency) to $1,472 million, while Make revenue increased 20% (20% constant currency) to $194 million, demonstrating strong performance across core product categories | (In millions, except percentages) | | Q2 FY26 | YoY Change | YoY Change in Constant Currency | |---|---|---|---|---| | Design | $ | 1,472 | 17 % | 18 % | | Make | | 194 | 20 % | 20 % | | Other | | 97 | 13 % | 11 % | | Total Net Revenue | $ | 1,763 | 17 % | 18 % | [Net Revenue by Geographic Area](index=1&type=section&id=Net%20Revenue%20by%20Geographic%20Area) All geographic regions contributed to revenue growth in Q2 FY26, with Americas leading at 19% (19% constant currency) to $786 million, followed by EMEA at 18% (19% constant currency) to $675 million, and APAC at 11% (14% constant currency) to $302 million | (In millions, except percentages) | | Q2 FY26 | YoY Change | YoY Change in Constant Currency | |---|---|---|---|---| | Americas | $ | 786 | 19 % | 19 % | | EMEA | | 675 | 18 % | 19 % | | APAC | | 302 | 11 % | 14 % | | Total Net Revenue | $ | 1,763 | 17 % | 18 % | [Net Revenue by Product Family](index=2&type=section&id=Net%20Revenue%20by%20Product%20Family) AECO was the strongest performing product family in Q2 FY26, growing 23% (24% constant currency) to $878 million, while AutoCAD and AutoCAD LT and MFG both grew 13% (14% constant currency) | (In millions, except percentages) | | Q2 FY26 | YoY Change | YoY Change in Constant Currency | |---|---|---|---|---| | AECO | $ | 878 | 23 % | 24 % | | AutoCAD and AutoCAD LT | | 440 | 13 % | 14 % | | MFG | | 334 | 13 % | 14 % | | M&E | | 80 | 4 % | 4 % | | Other | | 31 | 3 % | 4 % | | Total Net Revenue | $ | 1,763 | 17 % | 18 % | [Remaining Performance Obligations (RPO)](index=2&type=section&id=Remaining%20Performance%20Obligations%20(RPO)) Total Remaining Performance Obligations (RPO) increased 24% year-over-year to $7,297 million in Q2 FY26, with unbilled deferred revenue showing significant growth of 59% to $3,453 million | (In millions, except percentages) | Q2 FY26 | | YoY Change | |---|---|---|---| | Deferred Revenue | $ | 3,844 | 4 % | | Unbilled deferred revenue | | 3,453 | 59 % | | Remaining performance obligations ("RPO") | | 7,297 | 24 % | | Current RPO | | 4,677 | 20 % | [Business Outlook (Guidance)](index=3&type=section&id=Business%20Outlook%20(Guidance)) Autodesk provided Q3 and full-year FY26 guidance, projecting continued revenue growth and increased non-GAAP EPS, reflecting strong business momentum [Q3 FY26 Guidance](index=3&type=section&id=Q3%20FY26%20Guidance) For Q3 FY26, Autodesk projects revenue between $1,800 million and $1,810 million, with non-GAAP EPS expected to be in the range of $2.48 to $2.51 | Q3 FY26 Guidance Metrics | Q3 FY26 (ending October 31, 2025) | |---|---| | Revenue (in millions) | $1,800 - $1,810 | | EPS GAAP | $1.34 - $1.42 | | EPS non-GAAP (1) | $2.48 - $2.51 | [Full Year FY26 Guidance](index=3&type=section&id=Full%20Year%20FY26%20Guidance) Autodesk raised its full-year FY26 guidance, now expecting billings between $7,355 million and $7,445 million, revenue between $7,025 million and $7,075 million, and non-GAAP EPS between $9.80 and $9.98. Free cash flow is projected to be $2,200 million to $2,275 million | FY26 Guidance Metrics | FY26 (ending January 31, 2026) | |---|---| | Billings (in millions) (1) | $7,355 - $7,445 | | Revenue (in millions) (1) | $7,025 - $7,075 | | GAAP operating margin | 21% - 22% | | Non-GAAP operating margin (2) | ~37% | | EPS GAAP | $4.68 - $5.09 | | EPS non-GAAP (2) | $9.80 - $9.98 | | Free cash flow (in millions) (3) | $2,200 - $2,275 | [Corporate Updates](index=3&type=section&id=Corporate%20Updates) Autodesk announced the closure of government investigations into its free cash flow and non-GAAP operating margin practices [Government Investigations Closed](index=3&type=section&id=Government%20Investigations%20Closed) The U.S. Securities and Exchange Commission (SEC) and the United States Attorney's Office for the Northern District of California (USAO) have both closed their respective investigations into Autodesk's free cash flow and non-GAAP operating margin practices - The SEC notified Autodesk on August 19, 2025, and the USAO on August 21, 2025, that they were **closing their matters** regarding the internal investigation into the Company's free cash flow and non-GAAP operating margin practices[13](index=13&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) Supplemental investor materials and conference call details are available, providing further insights into Autodesk's financial performance and operations [Earnings Conference Call and Webcast](index=4&type=section&id=Earnings%20Conference%20Call%20and%20Webcast) Autodesk hosted its second-quarter conference call on August 28, 2025, with a live broadcast and replay available on its investor relations website - The live broadcast of the Q2 conference call was accessible at autodesk.com/investor, with a replay available for at least 12 months[14](index=14&type=chunk) [Investor Presentation and Contacts](index=4&type=section&id=Investor%20Presentation%20and%20Contacts) Supplemental investor materials, including an investor presentation and Excel financials, are available on Autodesk's investor relations website, along with contact information for investor relations and press - An investor presentation, Excel financials, and other supplemental materials are available at autodesk.com/investor[15](index=15&type=chunk) [Key Performance Metrics & Glossary](index=5&type=section&id=Key%20Performance%20Metrics%20%26%20Glossary) The report details key performance metrics and a comprehensive glossary to clarify financial and operational terms used in Autodesk's business [Key Performance Metrics](index=5&type=section&id=Key%20Performance%20Metrics) Autodesk utilizes key performance metrics such as billings, recurring revenue, and net revenue retention rate to monitor the strength and long-term health of its recurring business, emphasizing that these metrics are independent of GAAP revenue and deferred revenue - **Key performance metrics like billings, recurring revenue, and net revenue retention rate** are used to monitor the strength and long-term health of the recurring business, and should be viewed **independently of revenue and deferred revenue**[16](index=16&type=chunk) [Glossary of Terms](index=5&type=section&id=Glossary%20of%20Terms) The report provides a comprehensive glossary defining key financial and operational terms specific to Autodesk's business, such as Billings, Cloud Service Offerings, Constant Currency Growth Rates, Design Business, Enterprise Business Agreements (EBAs), Flex, Free Cash Flow, Industry Collections, Maintenance Plan, Make Business, Net Revenue Retention Rate (NR3), Other Revenue, Product Family, Product Subscription, Recurring Revenue, Remaining Performance Obligations (RPO), Solution Provider, Spend, Subscription Plan, Subscription Revenue, and Unbilled Deferred Revenue - Definitions are provided for key terms such as **Billings**, **Net Revenue Retention Rate (NR3)**, and **Remaining Performance Obligations (RPO)**, among others, to clarify financial and operational terminology[17](index=17&type=chunk)[24](index=24&type=chunk)[29](index=29&type=chunk) [Safe Harbor Statement](index=7&type=section&id=Safe%20Harbor%20Statement) This section outlines the inherent risks and uncertainties associated with forward-looking statements, including global economic conditions, geopolitical tensions, product development, competition, and regulatory changes, which could cause actual results to differ materially from projections - The press release contains **forward-looking statements subject to significant risks and uncertainties**, including global economic and political conditions, product development, competition, and regulatory changes, which could cause **actual results to differ materially**[33](index=33&type=chunk) [About Autodesk](index=8&type=section&id=About%20Autodesk) Autodesk empowers designers, engineers, builders, and creators globally with its Design and Make Platform, which leverages data and AI to accelerate insights, automate processes, and deliver better outcomes for businesses and the planet - Autodesk's **Design and Make Platform** helps designers, engineers, builders, and creators design and make anything, **unlocking the power of data to accelerate insights and automate processes**[35](index=35&type=chunk) [Financial Statements (GAAP)](index=9&type=section&id=Financial%20Statements%20(GAAP)) The unaudited condensed consolidated financial statements provide a detailed overview of Autodesk's Q2 FY26 operations, balance sheet, and cash flows [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited condensed consolidated statements of operations for the three and six months ended July 31, 2025, show total net revenue of $1,763 million for Q2 FY26, with net income of $313 million and diluted EPS of $1.46 | (In millions, except per share data) | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2025 | |---|---|---| | Total net revenue | $1,763 | $3,396 | | Gross profit | $1,604 | $3,077 | | Income from operations | $444 | $677 | | Net income | $313 | $465 | | Diluted net income per share | $1.46 | $2.15 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets as of July 31, 2025, show total assets of $10,856 million and total stockholders' equity of $2,715 million, reflecting a stable financial position | (In millions) | July 31, 2025 | January 31, 2025 | |---|---|---| | Total assets | $10,856 | $10,833 | | Total current liabilities | $4,566 | $5,151 | | Long-term notes payable, net | $2,481 | $1,987 | | Total stockholders' equity | $2,715 | $2,621 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended July 31, 2025, net cash provided by operating activities was $1,024 million, a significant increase from $706 million in the prior year, while net cash used in financing activities was $634 million | (In millions) | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | |---|---|---| | Net cash provided by operating activities | $1,024 | $706 | | Net cash provided by (used in) investing activities | $8 | $(864) | | Net cash used in financing activities | $(634) | $(221) | | Net increase (decrease) in cash and cash equivalents | $404 | $(379) | | Cash and cash equivalents at end of period | $2,003 | $1,513 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, offering enhanced transparency into Autodesk's core business performance and future guidance [Explanation of Non-GAAP Measures](index=12&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Autodesk provides non-GAAP measures to offer greater transparency into key metrics used by management for financial and operational decision-making, helping investors understand core business performance, while also providing GAAP measures for comprehensive evaluation - Non-GAAP measures are used to supplement GAAP financial statements, providing **meaningful supplemental information** regarding earning potential and performance by excluding certain expenses not indicative of **core business operating results**[41](index=41&type=chunk) - These measures allow for **greater transparency** with respect to **key metrics used by management** and are used by institutional investors and analysts to analyze business health[41](index=41&type=chunk) - Non-GAAP measures have **limitations as they are not prepared in accordance with GAAP** and exclude items that may **materially impact reported financial results**[42](index=42&type=chunk) [Q2 FY26 GAAP to Non-GAAP Reconciliation](index=12&type=section&id=Q2%20FY26%20GAAP%20to%20Non-GAAP%20Reconciliation) The reconciliation for Q2 FY26 shows a non-GAAP operating margin of 39% (vs. GAAP 25%) and non-GAAP diluted EPS of $2.62 (vs. GAAP $1.46), primarily adjusted for stock-based compensation and amortization of intangibles. Free cash flow was $451 million | | Three Months Ended July 31, 2025 | |---|---| | GAAP operating margin | 25 % | | Non-GAAP operating margin | 39 % | | GAAP diluted net income per share | $1.46 | | Non-GAAP diluted net income per share | $2.62 | | Net cash provided by operating activities | $460 | | Free cash flow | $451 | [Q3 FY26 & FY26 Guidance GAAP to Non-GAAP Reconciliation](index=13&type=section&id=Q3%20FY26%20%26%20FY26%20Guidance%20GAAP%20to%20Non-GAAP%20Reconciliation) The reconciliation for guidance shows projected non-GAAP EPS for Q3 FY26 at $2.48 - $2.51 (vs. GAAP $1.34 - $1.42) and for full-year FY26 at $9.80 - $9.98 (vs. GAAP $4.68 - $5.09), with non-GAAP operating margin for FY26 at ~37% (vs. GAAP 21%-22%) | GAAP to non-GAAP diluted EPS reconciliation | Q3 FY26 (ending October 31, 2025) | |---|---| | GAAP EPS | $1.34 - $1.42 | | Non-GAAP EPS | $2.48 - $2.51 | | GAAP to non-GAAP operating margin reconciliation | FY26 (ending January 31, 2026) | |---|---| | GAAP operating margin | 21%- 22% | | Non-GAAP operating margin (1) | 37% | | GAAP to non-GAAP diluted EPS reconciliation | FY26 (ending January 31, 2026) | |---|---| | GAAP EPS | $4.68 - $5.09 | | Non-GAAP EPS | $9.80 - $9.98 |

Core Insights - AutoDesk (ADSK) is set to release its second-quarter 2025 results on August 28, with revenue expectations of $1.73 billion, reflecting a year-over-year growth of 14.65% [1] - The consensus estimate for earnings per share is $2.44, unchanged over the past 30 days, compared to $2.15 in the same quarter last year [1] - AutoDesk has consistently beaten earnings estimates in the past four quarters, with an average surprise of 6.22% [1] Financial Performance - AutoDesk entered the second quarter of fiscal 2026 with strong momentum, reporting a 15% revenue growth to $1.63 billion in the first quarter [3] - The Architecture, Engineering, Construction and Operations segment is expected to be the primary growth driver, supported by the adoption of Autodesk Construction Cloud and enterprise business agreements [4] - The Manufacturing portfolio is anticipated to benefit from demand for Fusion and the Product Design and Manufacturing Collection, with AI-driven design automation providing additional support [5] Geographic Insights - The Americas and EMEA regions are expected to lead in expansion, showing sustained double-digit growth, while Asia-Pacific may lag due to Japan's transition and trade dynamics with China and Korea [6] Challenges - Potential headwinds include heightened policy and geopolitical uncertainty that could delay project spending, as well as currency fluctuations [7] - Restructuring and sales optimization actions from the previous quarter may cause short-term disruptions [7] Earnings Prediction - Current analysis does not predict a definitive earnings beat for AutoDesk, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [8]

Core Insights - Autodesk is set to release its earnings on August 28, 2025, with a historical positive bias in stock performance post-earnings, achieving a positive one-day return in 53% of instances over the past five years [2][7] - Analysts project adjusted earnings of $2.45 per share on revenue of $1.72 billion, an increase from $2.15 per share and $1.5 billion in revenue in the same quarter last year [3] - Autodesk has a market value of $61 billion, generating $6.3 billion in revenue, with an operating profit of $1.4 billion and net income of $1.0 billion over the past twelve months [4] Historical Performance - Over the last five years, Autodesk tracked 19 earnings events, resulting in 10 positive and 9 negative one-day returns, with a median positive return of 1.4% and a median negative return of -6.9% [7] - The likelihood of positive returns improves slightly to 55% when focusing on the last three years [7] Trading Strategies - Event-driven traders can analyze historical odds of positive versus negative moves to establish positions ahead of the earnings announcement [6] - Post-earnings, traders should study the relationship between immediate earnings reactions and medium-term stock performance to inform trading decisions [6][8]

Core Viewpoint - Analysts expect Autodesk (ADSK) to report quarterly earnings of $2.44 per share, reflecting a year-over-year increase of 13.5%, with revenues projected at $1.73 billion, up 14.7% from the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' forecasts [1] - Analysts predict 'Net Revenue- Maintenance' to reach $9.26 million, a decrease of 15.8% from the prior-year quarter [4] - 'Net Revenue- Other' is expected to be $89.56 million, showing an increase of 4.1% year-over-year [4] - 'Net Revenue- Subscription' is projected at $1.63 billion, reflecting a year-over-year increase of 15.6% [4] Group 2: Total Revenue and Product Family Estimates - Total subscription and maintenance revenue is estimated to be $1.64 billion, indicating a 15.3% increase from the prior-year quarter [5] - 'Net Revenue by Product Family- M&E (Media and Entertainment)' is expected to reach $97.34 million, a rise of 26.4% from the previous year [5] - 'Net Revenue by Product Family- Other' is forecasted at $39.76 million, showing a year-over-year increase of 32.5% [6] - 'Net Revenue by Product Family- AECO (Architecture, Engineering, Construction and Operations)' is projected to be $821.80 million, reflecting a 15.3% increase [6] - 'Net Revenue by Product Family- MFG (Manufacturing)' is expected to be $341.65 million, indicating a 15.4% increase [7] - 'Net Revenue by Product Family- AutoCAD and AutoCAD LT' is estimated at $416.04 million, reflecting a 7% increase from the prior-year quarter [7] Group 3: Billings and Market Performance - Analysts predict 'Billings' to be $1.57 billion, compared to $1.24 billion reported in the same quarter of the previous year [8] - Autodesk shares have decreased by 4.3% in the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7% [8] - Autodesk holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the overall market performance in the near term [8]

Core Insights - Autodesk has launched a new pricing model for Autodesk Flow Studio, introducing a free tier and reducing the Lite plan price by 50% from $20 to $10, aiming to make AI-powered VFX and animation tools more accessible to a wider audience [1][9] - The introduction of the free tier and flexible pricing reflects Autodesk's commitment to a creator-first future, enabling more artists and content creators to utilize advanced AI tools without significant financial barriers [7][9] - The new tiered model includes Free, Standard, Lite, Pro, and Enterprise options, catering to users from beginners to professional studios, with core tools available in the Free tier and advanced features reserved for paid tiers [8][9] Product Features - Autodesk Flow Studio automates complex VFX tasks such as motion capture and character animation, allowing creators to focus on storytelling rather than technical setups [5][6] - Users can export AI-generated assets to other software like Maya, Blender, or Unreal Engine, enhancing workflow efficiency and creative possibilities [6] - The Pro tier is included in Autodesk's Media & Entertainment Collection at no additional cost, providing existing customers a low-risk opportunity to explore AI-powered workflows [9] Market Positioning - The launch of Autodesk Flow Studio as a freemium product is part of Autodesk's strategy to integrate advanced AI capabilities into its ecosystem, ensuring a consistent and scalable user experience [9] - The initiative aims to democratize high-quality content creation, allowing more creators to experiment and bring their ideas to life without the need for extensive resources [6][9] - Autodesk's approach emphasizes the importance of maintaining creative processes while adopting new technologies, aligning with the evolving landscape of AI in media and entertainment [9]

Core Insights - Five9 (FIVN) and Autodesk (ADSK) are both considered for investors looking for undervalued stocks in the Internet - Software sector [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] Valuation Metrics - FIVN has a forward P/E ratio of 9.01, significantly lower than ADSK's forward P/E of 31.39, suggesting FIVN may be undervalued [5] - The PEG ratio for FIVN is 0.64, while ADSK's PEG ratio is 1.99, indicating FIVN's expected earnings growth is more favorable relative to its price [5] - FIVN's P/B ratio stands at 2.7, compared to ADSK's P/B of 24.74, further supporting the notion that FIVN is undervalued [6] Value Grades - Based on various valuation metrics, FIVN holds a Value grade of B, while ADSK has a Value grade of F, highlighting FIVN as the superior value option [6][7]

Summary of Zhongwang Software Conference Call Company Overview - **Company**: Zhongwang Software - **Industry**: CAD Software Development Key Points and Arguments 1. **Intellectual Property Defense**: Zhongwang Software asserts that its CAD products do not infringe on third-party codes and has applied for dozens of core technology patents. The company has maintained a strict source code management system for over ten years and is confident in resolving misunderstandings with Autodesk through communication or legal means [2][3][4]. 2. **Litigation Response Team**: A specialized task force has been established, comprising executives, R&D, legal, and international lawyers, to actively respond to the lawsuit. The company is open to a code comparison in a fair environment to clarify facts and seek mutually beneficial solutions [2][3][5]. 3. **Sales Continuity**: During the litigation, Zhongwang's CAD products can continue to be sold, and partnerships with distributors and ecosystem partners remain unaffected. The company believes that honest communication and legal means are effective methods for resolving disputes [2][6][9]. 4. **Market Impact**: While sales are not restricted, the lawsuit may affect customer confidence. The company has initiated marketing activities to communicate with customers and mitigate negative impacts. Domestic market recognition is high, and overseas distributors are generally accepting of the situation [2][10]. 5. **Differentiation Strategy**: Zhongwang Software emphasizes a market-oriented and international strategy, adhering to international legal rules. The company has increased R&D investment and is committed to a differentiation strategy to minimize the likelihood of similar disputes in the future [4][11]. 6. **Long-term Outlook**: The company believes that through open communication and legal means, the dispute can be resolved effectively. They are confident that the absence of large-scale code plagiarism will lead to a smoother resolution [6][10]. 7. **Potential Future Litigation**: Although Autodesk has only filed a lawsuit regarding the 2D CAD product, Zhongwang does not rule out the possibility of future litigation concerning 3D CAD products. The company has taken measures to strengthen intellectual property protection [4][11]. 8. **Sales and Financial Stability**: Zhongwang Software is aware of the potential for competitors to use litigation to undermine sales and financial health. However, they maintain that their products are distinct from Autodesk's and have no intention of infringing on third-party intellectual property [12][13]. Additional Important Content - **Customer Communication**: The company is actively engaging with customers to alleviate concerns stemming from the lawsuit, emphasizing the importance of maintaining trust and transparency [9][10]. - **Legal Preparedness**: Zhongwang Software is prepared for a potentially lengthy legal process, drawing on past experiences with similar lawsuits, and is committed to protecting its rights and interests [10][12].