Financial Data and Key Metrics Changes - Total revenue in Q1 grew 15% as reported and 16% in constant currency, with a contribution from the new transaction model of $78 million [12][18] - Billings increased 29% as reported and 30% in constant currency, reflecting the shift to annual billings for most multiyear contracts [12][18] - First quarter free cash flow was $556 million, with GAAP operating margins decreasing by seven percentage points due to restructuring charges [14][15] Business Line Data and Key Metrics Changes - Strength was observed in AECO, upfront revenue from enterprise business agreements (EBAs), and the Autodesk store as friction from the new transaction model eased [11] - The contribution from the new transaction model to billings was $105 million in Q1, with billings growing 22% at constant currency excluding this impact [12][18] - Non-GAAP operating margins increased by three percentage points, reflecting operating leverage from ongoing cost discipline [15] Market Data and Key Metrics Changes - The U.S. dollar has depreciated against major currencies, impacting billings, revenue, and free cash flow guidance ranges [17] - Asia Pacific showed some softness, particularly in Japan, which was the last to adopt the new transaction model, and China and Korea were more exposed to macroeconomic turmoil [115][116] Company Strategy and Development Direction - The company is focusing growth investments on strategic priorities in cloud, platform, and AI, optimizing sales and marketing to drive higher margins [8][19] - The new transaction model aims to integrate more closely with customers, driving additional business while increasing automation [9] - The company is committed to delivering connected solutions and enhancing operational efficiency to capture growth opportunities in the market [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted that customer conversations reflect uncertainty due to geopolitical and macroeconomic factors, but construction backlog ticked up, and monthly active users increased [39][40] - The company is prepared for potential macroeconomic impacts, having factored in greater uncertainty into their guidance while maintaining a positive outlook based on Q1 performance [17][92] Other Important Information - The company is refreshing its board to guide the next decade of growth, with new appointments aimed at enhancing strategic direction [8] - The company is focused on reducing stock-based compensation as a percentage of revenue to below 10% [15] Q&A Session Summary Question: How are customer conversations evolving given the uncertainty? - Management acknowledged that trade policy uncertainty is impacting customers, but noted that construction backlog and active user growth remain positive [39][40] Question: Can you discuss margin momentum and the sales and marketing optimization plan? - Management indicated strong Q1 performance driven by revenue outperformance and ongoing expense discipline, with the sales and marketing optimization plan on track [41][43] Question: What are the benefits and risks of channel consolidation? - Management is encouraging consolidation towards fewer, more solution-focused partners, which has led to increased activity and price realization [51][55] Question: How is the new transaction model progressing? - Management reported no significant disruptions compared to the previous year, with channel productivity expected to increase as partners adapt [60][61] Question: What are the opportunities for AI functionality? - Management emphasized the focus on delivering specific AI enhancements that drive productivity, with plans to roll out more sophisticated tools [78][80] Question: How is the company addressing labor constraints in the industry? - Management noted persistent labor constraints and emphasized the need for digital efficiency, which is driving robust adoption of their solutions [94]

Financial Data and Key Metrics Changes - Total revenue in Q1 grew 15% as reported and 16% in constant currency, with a contribution from the new transaction model to revenue of $78 million [12][13] - Billings increased 29% as reported and 30% in constant currency, reflecting the shift to annual billings for most multiyear contracts [12][13] - First quarter free cash flow was $556 million, with GAAP operating margins decreasing by seven percentage points due to restructuring charges [15][14] Business Line Data and Key Metrics Changes - Strength was observed in AECO, upfront revenue from enterprise business agreements (EBAs), and the Autodesk store as friction from the new transaction model eased [10] - The contribution from the new transaction model to billings was $105 million in Q1, with billings growing 22% at constant currency excluding the impact of the new transaction model [12][13] Market Data and Key Metrics Changes - The U.S. dollar has depreciated against major currencies, impacting billings, revenue, and free cash flow guidance ranges [17] - Asia Pacific showed some softness, particularly in Japan, which was the last to adopt the new transaction model, and China and Korea were more exposed to macroeconomic turmoil [114] Company Strategy and Development Direction - The company is focusing growth investments on strategic priorities in cloud, platform, and AI, optimizing sales and marketing to drive higher margins [7] - The new transaction model aims to integrate more closely with customers, driving additional business while increasing automation and reducing duplicative workflows [8] Management's Comments on Operating Environment and Future Outlook - Management noted that customer conversations reflect uncertainty due to trade policy and macroeconomic factors, but construction backlog increased and monthly active users grew [40] - The company remains optimistic about its underlying business momentum despite macroeconomic uncertainties, with guidance reflecting caution [17][89] Other Important Information - The company is refreshing its board to guide the next decade of growth, with new appointments aimed at enhancing strategic direction [7] - The company is committed to reducing stock-based compensation as a percentage of revenue to below 10% [15] Q&A Session Summary Question: How are customer conversations evolving given the uncertainty? - Management acknowledged that trade policy uncertainty is impacting customers, but noted that construction backlog increased and business inflow remains strong [40] Question: Can you discuss margin momentum and the sales and marketing optimization plan? - Management indicated that Q1 margin strength was driven by revenue outperformance and ongoing expense discipline, with the sales and marketing optimization plan on track [42][43] Question: What are the benefits and risks of channel consolidation? - Management is encouraging consolidation towards fewer, more solution-focused partners, which has led to increased activity and price realization in the store [52][55] Question: How is the new transaction model progressing? - Management reported that disruptions seen last year are not present now, and channel productivity is expected to increase as partners adapt to the new model [61][62] Question: What is the outlook for net revenue retention (NRR)? - Management confirmed that the NRR is above the 100-110% range due to the new transaction model, and it is expected to remain in that range for the year [63] Question: How is the company addressing labor constraints in the industry? - Management noted that labor constraints persist, but the demand for digital efficiency is driving robust adoption of their solutions [91] Question: What are the plans for AI functionality and future use cases? - Management emphasized the focus on delivering AI enhancements that drive productivity, with plans to roll out more sophisticated tools [78][80] Question: What is the current status of the restructuring and its impact? - Management indicated that while there was some disruption from the restructuring, overall business momentum has improved, and risks are being managed effectively [85][86]

Financial Performance - Q1 FY26 - Billings reached $1434 million, a 29% year-over-year increase[5] - Revenue totaled $1633 million, up 15% compared to the previous year[5] - Non-GAAP operating margin was 37%, a 3 percentage point increase year-over-year[5] - Free cash flow amounted to $556 million, a 14% increase from the prior year[5] Revenue Breakdown - Q1 FY26 - Design revenue was $1361 million, showing a 14% year-over-year increase[9] - Make revenue reached $179 million, a 23% increase compared to the previous year[9] - Americas revenue was $725 million, up 17% year-over-year[9] - EMEA revenue totaled $627 million, a 17% increase from the prior year[9] Outlook - FY26 - The company projects billings between $7160 million and $7310 million[11] - Revenue is expected to be in the range of $6925 million to $6995 million[11] - Non-GAAP operating margin is forecasted to be between 365% and 37%[11]

Financial Performance - First quarter revenue increased by 15% year-over-year to $1.6 billion, with a 16% growth on a constant currency basis[1] - Billings for Q1 FY26 reached $1.434 billion, reflecting a 29% year-over-year increase[3] - GAAP EPS for Q1 FY26 was $0.70, down $0.46 compared to the previous year, while non-GAAP EPS was $2.29, up $0.42[3] - Total net revenue by product type showed Design revenue at $1.361 billion (14% increase), Make revenue at $179 million (23% increase), and Other revenue at $93 million (22% increase)[4] - Total net revenue for the three months ended April 30, 2025, was $1,633 million, a decrease from $1,633 million in the same period last year[39] - Subscription revenue reached $1,532 million, while maintenance revenue was $8 million, contributing to a total subscription and maintenance revenue of $1,540 million[39] - Net income for the period was $152 million, with diluted net income per share at $0.70[39] Revenue Guidance - Q2 FY26 revenue guidance is projected between $1.720 billion and $1.730 billion, with GAAP EPS guidance of $1.37 to $1.46[12] - Full-year FY26 revenue guidance is set between $6.925 billion and $6.995 billion, with billings expected between $7.160 billion and $7.310 billion[12] Cash Flow and Capital Allocation - The company plans to allocate more capital to share repurchases as free cash flow grows, which was $556 million in Q1 FY26, a 14% increase[3] - Cash and cash equivalents increased to $1,816 million from $1,599 million at the beginning of the period[41] - Operating cash flow for the three months ended April 30, 2025, was $564 million, compared to $494 million in the same period last year[41] - Net cash provided by operating activities amounted to $564 million, resulting in free cash flow of $556 million[45] - The company repurchased $354 million of common stock during the period[41] Operating Metrics - Remaining performance obligations (RPO) totaled $7.157 billion, a 21% increase year-over-year, with current RPO at $4.552 billion (16% increase)[8] - Total operating expenses amounted to $1,240 million, with research and development expenses at $394 million[39] - GAAP operating margin for the three months ended April 30, 2025, was 14%, while the non-GAAP operating margin was 37%[45] - The GAAP operating margin for FY26 is expected to be between 21% and 22%, with a non-GAAP operating margin forecasted at 36.5% to 37%[48] Stock and Intangible Assets - Autodesk's goodwill increased to $4,275 million from $4,242 million at the end of January 2025[40] - Deferred revenue stood at $3,620 million, a decrease from $3,787 million at the end of January 2025[40] - Total assets decreased to $10,585 million from $10,833 million at the end of January 2025[40] Future Projections - For Q2 FY26, GAAP EPS is projected to be between $1.37 and $1.46, with non-GAAP EPS expected to be between $2.44 and $2.48[48] - The FY26 GAAP EPS is forecasted to be between $4.63 and $5.14, while non-GAAP EPS is anticipated to be between $9.50 and $9.73[49] - Stock-based compensation expense for Q2 FY26 is estimated to be between $0.87 and $0.89[48] - Amortization of purchased intangibles and developed technologies for FY26 is projected at $0.65[49] - Restructuring and other exit costs for FY26 are expected to be between $0.53 and $0.60[49] - Income tax adjustments for FY26 are anticipated to range from $(0.24) to $(0.33)[49] Strategic Focus - The focus remains on strategic priorities in cloud, platform, and AI to drive long-term shareholder value amidst macroeconomic uncertainties[2]

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Core Insights - Autodesk is providing funding, technology, and support to accelerate rebuilding efforts in wildfire-affected areas of Los Angeles, following the devastating fires in January 2025 [1][5] Group 1: Partnership and Community Support - Autodesk is partnering with The Foothill Catalog Foundation (TFCF) to create a catalog of modular, pre-approved home designs for fire survivors, which is expected to reduce architectural and permitting costs by up to 95% [7] - The plans developed by TFCF will significantly shorten permitting timelines from potentially a year to just a few weeks [7] Group 2: Technological Innovations - Autodesk is funding an AI-powered software tool to expedite the approval of building permits, enhancing recovery efforts from the LA fires in collaboration with Governor Gavin Newsom and other organizations [7] - TFCF is developing a standardized Revit template to ensure that each design meets pre-approval and sustainability requirements from the outset [4] Group 3: Design and Resilience Focus - The designs created will adhere to stringent climate resilience standards, including resistance to extreme heat, wildfires, and power outages, while maintaining the unique architectural character of the region [3] - Autodesk's Design and Make platform is utilized by AEC industry teams globally to reduce waste and lower environmental impacts, emphasizing long-term resilience and sustainability [5][6]

Core Viewpoint - Autodesk is set to report its first-quarter fiscal 2026 results on May 22, following a strong fourth-quarter performance where revenues grew 12% to $1.64 billion and non-GAAP operating margin reached 37.1% [1][2]. Financial Performance - The company expects first-quarter fiscal 2026 revenues to be between $1.60 billion and $1.61 billion, with non-GAAP EPS projected in the range of $2.14 to $2.17, indicating modest sequential growth [2]. - The Zacks Consensus Estimate for revenues is $1.61 billion, reflecting a year-over-year growth of 13.39% [2]. - The Zacks Consensus Estimate for EPS is $2.14, unchanged over the past 60 days, indicating a year-over-year increase of 14.44% [3]. Recent Developments - Autodesk's fourth-quarter results exceeded expectations, with an earnings surprise of 7.51%, and the company has beaten the Zacks Consensus Estimate in each of the last four quarters, averaging a surprise of 5.73% [3]. - The company is undergoing a restructuring that involves approximately 9% of its workforce (about 1,350 employees), which may cause short-term disruptions despite potential long-term benefits [2]. Market Factors - Several factors may influence the upcoming fiscal first-quarter results, including the optimization of Autodesk's go-to-market approach, macroeconomic uncertainty affecting customer spending, and a transition in the company's Chief Revenue Officer [5]. - Autodesk is experiencing strong momentum in its Construction business, adding nearly 400 new logos last quarter, and reallocating resources to focus on cloud, platform, and AI initiatives [6]. Margin Outlook - The underlying non-GAAP operating margin is expected to reach 39-40% for fiscal 2026, although this should be weighed against moderating top-line growth [7]. - Management plans to provide more details about future margin expansion during an analyst day scheduled for the third quarter [7]. Investment Considerations - Given the mixed signals, it may be prudent for investors to maintain current positions while awaiting clarity on how effectively Autodesk navigates its organizational changes and executes its optimization strategy [8]. - According to the Zacks model, Autodesk currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating that the odds of an earnings beat are not favorable at this time [9].

Core Insights - Autodesk is set to announce its earnings on May 22, 2025, with historical data indicating a balanced trend in stock performance post-earnings announcements, showing a 50% chance of positive returns and a 50% chance of negative returns [1][7] - Consensus forecasts predict Autodesk will report revenues of $1.61 billion and earnings per share of $2.15 for the upcoming quarter, reflecting an increase from the previous year's revenues of $1.42 billion and earnings per share of $1.87 [2] Financial Performance - Autodesk currently has a market capitalization of $64 billion, with $6.1 billion in revenue, an operating profit of $1.4 billion, and a net income of $1.1 billion over the past twelve months [3] Earnings Reaction History - Over the past five years, Autodesk has recorded 20 earnings data points, with 10 positive and 10 negative one-day returns, indicating a 50% occurrence of positive returns, which increases to 58% when considering the last three years [7] - The median of positive one-day returns is 1.7%, while the median of negative returns is -6.3% [7] Trading Strategies - Traders may consider pre-earnings positioning based on historical probabilities of positive and negative reactions, as well as post-earnings positioning to analyze immediate market responses and adjust trades accordingly [6] - A strategy involving correlation analysis between short-term and medium-term returns post-earnings can be employed to identify trading opportunities [5][6]

Core Viewpoint - Autodesk (ADSK) is expected to report quarterly earnings of $2.14 per share, reflecting a 14.4% increase year over year, with revenues projected at $1.61 billion, a 13.4% increase compared to the previous year [1]. Group 1: Earnings and Revenue Projections - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating stability in analysts' projections [1]. - Analysts predict 'Net Revenue- Maintenance' to reach $10.02 million, showing a decline of 8.9% year over year [4]. - 'Net Revenue- Other' is expected to be $82.74 million, indicating an increase of 8.9% from the year-ago quarter [4]. - 'Net Revenue- Subscription' is projected at $1.51 billion, reflecting a year-over-year increase of 13.8% [4]. Group 2: Total Revenue and Product Family Insights - 'Net Revenue- Total subscription and maintenance revenue' is estimated to reach $1.52 billion, indicating a 13.6% increase year over year [5]. - 'Net revenue by product family- M&E (Media and Entertainment)' is forecasted at $87.01 million, showing a significant increase of 22.6% from the prior-year quarter [5]. - 'Net revenue by product family- Other' is expected to be $33.91 million, reflecting a 21.1% increase from the previous year [6]. - 'Net revenue by product family- AEC (Architecture, Engineering and Construction)' is projected at $781.97 million, indicating a 16% increase year over year [6]. Group 3: Additional Product Family Metrics - 'Net revenue by product family- MFG (Manufacturing)' is expected to reach $293.71 million, reflecting a 9.6% increase year over year [7]. - 'Net revenue by product family- AutoCAD and AutoCAD LT' is projected at $404.87 million, indicating a 7.7% increase from the prior year [7]. Group 4: Billings and Market Performance - Analysts predict 'Billings' to reach $1.44 billion, compared to $1.11 billion reported in the same quarter last year [8]. - Autodesk shares have increased by 14.9% in the past month, outperforming the Zacks S&P 500 composite's 13.1% increase [8].

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to the author's position and affiliations [1][2]. Group 1 - No stock, option, or similar derivative positions are held by the author in any mentioned companies, nor are there plans to initiate such positions in the near future [1]. - The article expresses the author's personal opinions and is not influenced by compensation from any company [1]. - The views presented may not reflect those of Seeking Alpha as a whole, indicating a potential variance in perspectives among different analysts [2].