1 2 A retrospective A AUTODESK Long history of leading market on major technology shifts Future: AI-enabled Future: AI loud-native Design and Make Design, Make, assisted design features SaaS products and Operate Shift away from deign Creating unique IP Build out new Leveraging commodity Expand our paradigm to the applications that are cloud through foundation only to design and make AI tools and custom operation of buildings, native and integrate with by expanding into models that drive AI foundation models ...

Core Viewpoint - Autodesk, Inc. (NASDAQ: ADSK) has been given a buy rating due to solid execution, successful transition to a transaction model, and significant momentum in AI adoption [1] Group 1: Investment Approach - The investment strategy focuses on identifying businesses with potential for scaling and unlocking substantial terminal value [1] - Emphasis is placed on understanding core business economics, including competitive moat, unit economics, reinvestment opportunities, and management quality [1] - The goal is to translate these factors into long-term free cash flow generation and shareholder value creation [1] Group 2: Professional Background - The analyst has 10 years of experience in investment banking and is currently managing personal funds sourced from friends and family [1] - The motivation for writing is to share investment insights and receive feedback from fellow investors [1] - The analysis aims to help readers focus on the drivers of long-term equity value [1]

Core Insights - Autodesk, Inc. (NASDAQ: ADSK) has been given a buy rating due to solid execution, successful transition to a transaction model, and significant momentum in AI adoption [1] Group 1: Investment Approach - The investment strategy focuses on identifying businesses with potential for long-term scaling and unlocking substantial terminal value [1] - Emphasis is placed on understanding core business economics, including competitive moat, unit economics, reinvestment opportunities, and management quality [1] - The analysis aims to translate these factors into long-term free cash flow generation and shareholder value creation [1] Group 2: Market Focus - The investment approach is directed towards sectors that exhibit strong secular tailwinds [1] - The analyst is a self-educated investor with a decade of experience, currently managing personal funds sourced from friends and family [1] Group 3: Purpose of Analysis - The intention behind writing is to share investment insights and receive feedback from fellow investors [1] - The goal is to help readers concentrate on the elements that genuinely drive long-term equity value [1] - The analysis is designed to be both analytical and accessible, aiming to provide value to readers seeking high-quality, long-term investment opportunities [1]

Core Insights - The wealthiest 1% of Americans own nearly half of the stocks in the U.S, with baby boomers holding 53.5% of all stocks, while Gen Xers and millennials hold 21.9% and 8.5%, respectively [1] - Gen Z investors are often associated with speculative investments rather than blue-chip stocks, which may lead to short-term gains but are challenging to sustain long-term [2] Company Summaries Navitas Semiconductor - Navitas produces gallium nitride (GaN) and silicon carbide (SiC) chips, which are used in various applications including laptop chargers and EV chargers [4] - The company expects revenue growth from AI workloads processed using its chips, particularly after a deal with Nvidia, although significant revenue from this deal is not expected until 2027 [5] - Analysts predict a 42% revenue drop in 2025, but a CAGR of 40% from 2025 to 2027 as the company narrows net losses and benefits from increased adoption of its chips [6] SoundHound AI - SoundHound AI develops AI-powered audio and voice recognition tools, with significant growth coming from its Houndify platform [7] - The company serves diverse industries and has expanded through acquisitions, enhancing its ecosystem [8] - Analysts forecast a CAGR of 47% for revenue from 2024 to 2027, with adjusted EBITDA turning positive by the final year [9] Datadog - Datadog's platform helps IT professionals unify real-time data from various computing platforms, simplifying problem detection [10] - The company serves over 30,000 customers globally, positioning itself well in the expanding data observability market, which is expected to grow at a CAGR of 10.7% from 2024 to 2030 [11] - Analysts expect Datadog's revenue and adjusted EBITDA to grow at CAGRs of 22% and 19%, respectively, from 2024 to 2027 [12]

Economic Overview - Stagflation is characterized by weak or negative growth, high unemployment, and high inflation, with current conditions suggesting a lowercase stagflation rather than the severe type seen in the 1970s [1][2][11] - Economic growth is measured by GDP, while GNI and CPI are also important indicators to watch [3][4][5] - Current inflation metrics show PCE in the high twos and GDP growth remains strong, indicating that the economy is not in a severe stagflation scenario [7][8] Market Trends - Precious metals have seen significant price increases, with gold up over 40% and silver approaching 60% this year, driven by elevated inflation and interest rate cuts by the Federal Reserve [8][9] - The stock market is experiencing volatility, with September historically being a weak month for stocks, yet many strategists believe there is still potential for growth [12][14] Investment Opportunities - Small-cap stocks are highlighted as having a unique opportunity due to their low valuation relative to large caps, with expectations of significant outperformance in the coming years [17][20] - Energy sector stocks are also noted for their potential, particularly in the context of rising demand for natural gas and data centers, with Comstock Resources being a specific example of a stock to watch [27][28] AI and Technology Sector - The AI sector continues to attract investment, with companies like Nvidia leading the charge, and there is a growing interest in software companies that are integrating AI into their offerings [61][63] - Autodesk and DataDog are identified as strong investment picks due to their unique market positions and growth potential in AI applications [72][75] International Market Dynamics - International stocks have outperformed U.S. stocks this year, with a notable shift in capital flows, although concerns about economic conditions in regions like Germany and the UK remain [88][92] - The difference in performance between international and U.S. stocks has narrowed, suggesting a potential normalization in market dynamics [92]

Core Insights - Aurigo Software has announced a fully integrated solution that combines its capital planning product with Autodesk Construction Cloud, enhancing project execution from planning to operations [1][4] - The integration allows project teams to manage various aspects such as Projects, Budgets, Commitments, Change Orders, and Expenses, facilitating performance updates [2] - Aurigo manages over $450 billion in capital programs across 40,000 projects, positioning itself as a leading planning solution for major capital owners in North America [6][10] Company Overview - Aurigo Software specializes in capital planning software, providing cloud-based solutions for infrastructure and private owners to enhance planning, building, and maintenance processes [10] - The company has introduced Aurigo Primus, an AI-powered capital planning system designed specifically for facility owners, which includes features like predictive analytics and generative modeling [6][7] - Aurigo's solutions are utilized by over 300 customers across various sectors, including transportation, water and utilities, healthcare, and government [10] Industry Context - Recent data from the U.S. Census Bureau indicates a rise in construction across multiple sectors, necessitating modern tools for planning and finance teams to manage complex capital programs [3] - The integration of Aurigo's capital planning with Autodesk's construction management solutions aims to improve accountability and transparency throughout the project lifecycle [8][9]

Core Insights - Autodesk, Inc. has launched a multi-year partnership with the Kraft Group, becoming the Official Design and Make Platform for the New England Patriots [1] - This collaboration is the first of its kind with an NFL team, integrating Autodesk's innovative tools into the Patriots and Kraft Group's ecosystem [1]

Core Insights - Eaton has announced a collaboration with Autodesk to develop AI-powered digital energy twin and software tools aimed at enhancing building lifecycle management and optimizing electrical system performance [1][2][3] Company Collaboration - The partnership combines Eaton's energy management solutions with Autodesk Tandem to create intelligent, data-driven ecosystems for building owners, facilitating the transition to a more resilient and sustainable energy landscape [2][3] - The collaboration aims to transform how electrical systems are designed, built, and operated, moving from reactive to predictive strategies for building operators [3] Technology and Innovation - Eaton's Brightlayer Digital Energy Twin, powered by Autodesk Tandem, provides tools for designers and building operators to simulate, monitor, and optimize energy use and building performance [3][5] - The introduction of a new building information modeling (BIM) application for Autodesk Revit allows design professionals to dynamically generate BIM files for electrical systems, simplifying pre-construction planning [5] Market Position and Financials - Eaton is positioned as a leader in intelligent power management, with projected revenues of nearly $25 billion in 2024, serving customers in over 160 countries [8]

Core Insights - The event features Janesh Moorjani, the CFO of Autodesk, who is welcomed by Kasthuri Rangan, the Head of Software Coverage, indicating a significant discussion regarding Autodesk's financial performance and strategic direction [2][4]. Group 1 - Janesh Moorjani has been introduced as the new CFO of Autodesk, marking a notable transition in the company's leadership [2][4]. - The discussion is set to cover Autodesk's recent developments and financial strategies, highlighting the importance of this meeting for stakeholders [3][4]. - Kasthuri Rangan expresses excitement about hosting Janesh Moorjani after his appointment, indicating a long-standing professional relationship and familiarity with Autodesk's operations [4][5].

Summary of Autodesk 2025 Conference Call Company Overview - **Company**: Autodesk (NasdaqGS:ADSK) - **Date**: September 08, 2025 - **Key Speaker**: Jamesh Mojani, CFO Core Industry Insights - **Industry**: Software and Design Technology - **Focus Areas**: AI integration, cloud services, construction management, and operational efficiency Key Points and Arguments Financial Strategy and Growth - Autodesk aims to capture market opportunities by leveraging AI and cloud technologies while maintaining operational efficiency to expand profitability [14][15] - The company has been recognized as an industry leader with a consistent growth trajectory over the past years [13] - The CFO emphasized the importance of expanding margins and profitability while continuing to grow [14] Business Model Transition - Autodesk is nearing the end of a significant business model transformation initiated in 2016, transitioning from a transactional model to a subscription-based model [22] - The optimization phase of the go-to-market strategy has been initiated, focusing on restructuring and reinvesting in key areas [23][25] - The company has experienced operational friction during this transition but has addressed these issues effectively [22] Construction Segment Performance - The construction segment has shown strong performance, driven by new customer acquisitions and expansion in various construction areas [31] - Autodesk's diversified business model allows it to offset weaknesses in certain construction sectors with strengths in others [32] AI and Data Utilization - Autodesk is investing heavily in AI, with a focus on automating workflows and enhancing productivity through machine-led processes [39][41] - The company has developed a proprietary AI stack that is 70% more efficient than competitors' offerings [54] - Autodesk's access to extensive 3D data is a significant competitive advantage, allowing for better AI model training and application [56][73] Customer Value and Monetization - AI capabilities are expected to unlock new opportunities for customers, enabling them to save costs and improve productivity [46] - Autodesk plans to monetize AI features through consumption-based models, reflecting the value delivered to customers [50][70] - The company is focused on ensuring customer data security while leveraging their data for AI training [75][76] Future Outlook - Autodesk has set a long-term margin target of 41%, with current guidance at approximately 37% [67] - The company is optimistic about achieving this target through operational leverage and effective execution of its go-to-market strategy [68] Additional Important Insights - The transition to a transaction model is ongoing, with expected benefits to materialize over time [27][30] - The construction industry's need for data wrangling and cloud solutions is increasing, driven by remote work and supply chain challenges [33][34] - Autodesk's approach to AI is seen as a continuum, moving from feature automation to system automation, which will significantly enhance customer value [39][41] This summary encapsulates the key points discussed during the Autodesk conference call, highlighting the company's strategic focus, industry positioning, and future growth potential.